Note 15 - Concentrations and Credit Risk

3 Months Ended

Jul. 31, 2014

Note 15 - Concentrations and Credit Risk:

Note 15 - Concentrations and Credit Risk

NOTE 15 - CONCENTRATIONS AND CREDIT RISK

(i)    Customer Concentrations

The top customer concentrations, which the sales income is over 10% of total sales for the three months ended July 31, 2014 and 2013 are as follows:

	Net Sales
	For the three months ended July 31, 2014		For the three months ended July 31, 2013
	Chinese Medicine	Stevioside	Chinese Medicine	Stevioside
Qufu Shengwang Import and Export Trade Co., Ltd		27.4%	0	53.3%
Qingdao Runde Biological Technology Co.Ltd	0	26.6%	0	0
Zhonghua (Qingdao) Industrial Co., Ltd.	0	15.4%	0	0
Guangdong Tengjun Veterinary Medicine Co., Ltd	10.8%	0	11.7%	0
Total	10.8%	69.4%	11.7%	53.3%

(ii)    Vendor Concentrations

The top vendor concentrations, which the purchase from those vendor is over 10% of total cost of goods sold, for the three months ended July 31, 2014 and 2013 are as follows:

	Net Purchases
	For the three months ended July 31, 2014		For the three months ended July 31, 2013
	Chinese Medicine	Stevioside	Chinese Medicine	Stevioside
Shandong Heze Zhongshun Pharmaceutical Co., Ltd	0	0	17.2%	0
Bozhou Weitao Pharmaceutical Co., Ltd	0	0	15.5%	0
Qufu Longheng Materials Co., Ltd	0	0	21.6%	0
Shandong Xiwang Sugar Industry Co., Ltd	14.3%	0	0	0
Gansu Fanzhi Biology Techonology Co.,Ltd	11.3%	0	23.1%	0
Qufu Electricity Corp.	13.6%	0	0	0
Jiangyin Suxin Dry Equipment Co., Ltd	13.6%	0	0	0
Gansu DunHuang Agriculture Products Co.,Ltd	0	0	0	15.1%
Jiuquan Deyizhi Ecological Argriculture Co.,Ltd	0	0	0	12.9%
Gansu Puhua Stevia Develop Co., Ltd	0	21.3%	0	0
Shandong Jinhuaxia Environment Engineering Co. Ltd.	0	0	0	26.2%
Mingguang Xingshi Stevia Corp.	0	31.8%	0	0
Ganzhou Julong High Tech Co., Ltd	0	18.3%	0	0
Total	52.8%	71.4%	77.4%	54.2%

(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 July 31, 2014, we had $1,287,005 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 July 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.