PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Jul. 31, 2016

PROPERTY, PLANT AND EQUIPMENT [Text Block]

NOTE 5 - PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following:

		July 31,			July 31,
		2016			2015
Machinery equipment	$	4,951,227		$	5,275,080
Computer and office equipment		53,933			56,558
Vehicle		69,339			74,111
Property under capital lease		-			2,759,547
Total property, plant and equipment		5,074,499			8,165,296
Less: accumulated depreciation		(553,764	)		(485,973	)
Total	$	4,520,735		$	7,679,323

Total depreciation expenses for the years ended July 31, 2016 and 2015 were $266,773 and $414,623, respectively. Depreciation relating to Contract work in progress for the years ended July 31, 2016 and 2015 were $201,666 and $252,473, respectively, and depreciation relating to general and administrative expenses for the years ended July 31, 2016 and 2015 were $65,107 and $162,150, respectively.

On August 1, 2015, the Company terminated the finance leasing with Sanhe Dong Yi Glass Machine Company Limited. The factory and office were returned to the lessor. The assets were no longer recorded as fixed assets, which lead to the decrease of Property, plant and equipment. The Company recognized $128,379 gain due to this termination.