Note 16 - Concentrations and Credit Risk

12 Months Ended

Apr. 30, 2014

Notes

Note 16 - Concentrations and Credit Risk

NOTE 16 – CONCENTRATIONS AND CREDIT RISK

(i)    Customer Concentrations

For fiscal 2014 and 2013, customers accounting for 10% or more of the Company’s revenue were as follows:

	Net Sales For Fiscal Year,
	2014		2013
	Chinese Medicine	Stevioside	Chinese Medicine	Stevioside
Qufu Shengwang Import and Export Co., Ltd	0%	28.8%	0	30.3%
Total	0%	28.8%	0	30.3%

 (ii)    Vendor Concentrations

For fiscal 2014 and 2013, suppliers accounting for 10% or more of the Company’s purchase were as follows:

	Net Purchases For Fiscal Year,
	2014		2013
	Chinese Medicine	Stevioside	Chinese Medicine	Stevioside
Shandong Heze Zhongshun Pharmaceutical Co., Ltd	10.1%	0	16.6%	0
Qufu Longheng Materials Co., Ltd	14.2%	0	14.9%	0
Gansu Fanzhi Bio Tech Co., Ltd	11.4%	0	0	0
Ganzhou Julong High Tech Industry Co., Ltd	0	20.2%	0	0
Total	35.7%	20.2%	31.5%	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 April 30, 2014, we had $1,194,668 of deposits 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 April 30, 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.