Note 16 - Concentrations and Credit Risk

9 Months Ended

Jan. 31, 2014

Notes

Note 16 - Concentrations and Credit Risk

NOTE 16 - CONCENTRATIONS AND CREDIT RISK

(i)    Customer Concentrations

For the nine months ended January 31, 2014 and 2013, customers accounting for 10% or more of the Company’s revenue were as follows:

	Net Revenues
	For the nine months ended January 31, 2014		For the nine months ended January 31, 2013
	Chinese Medicine	Stevioside	Chinese Medicine	Stevioside
Qufu Shengwang Import and Export Trade Co., Ltd (1)	0	41.2%	0	46.0%
Guangdong Tengjun Veterinary Medicine Co., Ltd	0	0	11.6%	0
Total	0%	41.2%	11.6%	46.0%

(1) Qufu Shengwang Import and Export Trade Co., Ltd is a related party, a Chinese entity managed by our Chairman, Mr. Laiwang Zhang.

(ii)    Vendor Concentrations

For the nine months ended January 31, 2014 and 2013, suppliers accounting for 10% or more of the Company’s purchase were as follows:

	Net Purchases
	For the nine months ended January 31, 2014		For the nine months ended January 31, 2013
	Chinese Medicine	Stevioside	Chinese Medicine	Stevioside
Shandong Heze Zhongshun Pharmaceutical Co., Ltd	16.7%	0	38.1%	0
Qufu Longheng Materials Co., Ltd	18.7%	0	34.9%	0
Jiuquan Jiale Biotech Co., Ltd	0	0	0	20.0%
Gansu Fanzhi Biology Technology Co.,Ltd	17.2%	0	0	0
Qingdao Runhao Stevia Technology Co., Ltd	0	0	0	13.0%
Total	52.6%	0%	73.0%	33.0%

(iii)    Credit Risk

Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and trade accounts receivable. We place our cash with high credit quality financial institutions in the United States and the PRC. At January 31, 2014, we had $825,525 on deposit in the PRC, where there is no equivalent of federal deposit insurance as in the United States. As a result, cash held in PRC financial institutions is not insured. We have not experienced any losses in such accounts through January 31, 2014.

Almost all of our sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, we believe that the concentration of credit risk with respect to trade accounts receivable is limited due to generally short payment terms. We also perform ongoing credit evaluations of our customers to help further reduce potential credit risk.