Note 7 - Related Party Transactions

12 Months Ended

Apr. 30, 2015

Notes

Note 7 - Related Party Transactions

NOTE 7 - RELATED PARTY TRANSACTIONS

Accounts receivable – related party and revenue – related party

For fiscal years 2015 and 2014, we recorded revenue – related party of $6,081,939 and $3,705,504, respectively, related to sales of products to Qufu Shengwang Import and Export Corporation, a Chinese entity owned by our Chairman, Mr. Laiwang Zhang. On April 30, 2015 and 2014, we had $3,761,758 and $953,400 in accounts receivable – related party, respectively, from Qufu Shengwang Import and Export Corporation.

Due to (from) related parties

From time to time, we received advances from related parties and advance funds to related parties for working capital purposes. In fiscal years 2015 and 2014, we respectively paid interest of $289,693 and $34,550, which in connection with the advances of $821,693 (RMB5,000,000) and $1,314,708 (RMB 8,000,000) from Shangdong Shengwang Pharmaceutical., Co., Ltd. (“Pharmaceutical Corporation”), a Chinese entity owned by our Chairman, Mr. Laiwang Zhang. These advances bear interest at the rate of 9.225% per annum and we have repaid these two advances with all accrued interests on May 8, 2015 and June 11, 2015, respectively. On May 22, 2015 and June 17, 2015, we received additional advances of $789,461 (RMB 4,800,000) and $1,311,949 (RMB 8,000,000) from the Pharmaceutical Corporation, at a lowered interest rate of 6.375% per annum. The other advances bear no interest and are payable on demand, including the working capital we borrowed from Mr. Laiwang Zhang. On April 30, 2015, the balance we owed Qufu Shengwang Import and Export Co., Ltd. of $346,622, Pharmaceutical Corporation of $496,816 and Mr. Laiwang Zhang of  $115,037 for working capital purposes. On April 30, 2014, the balance we owed Qufu Shengwang Import and Export Co., Ltd of $248,873 and $106,308 to the Pharmaceutical Corporation. For fiscal years 2015 and 2014, due to (from) related party activities consisted of the following: 

	Shandong Shengwang Pharmaceutical Co., Ltd.	Qufu Shengwang Import and Export Co., Ltd.	Mr. Laiwang Zhang	Total
Balance due to related parties, April 30, 2013	$        110,018	$        64,386	$                   0	$        174,404
Working capital advances from related parties	1,784,431	670,441	0	2,454,872
Repayments	(1,719,826)	(628,519)	0	(2,348,345)
Effect of foreign currency exchange	74,250	0	0	74,250
Balance due to related parties, April 30, 2014	$        248,873	$      106,308	$                   0	$        355,181
Working capital advances from related parties	444,079	346,622	115,037	905,738
Repayments	(197,206)	(114,128)	0	(311,334)
Effect of foreign currency exchange	1,070	7,820	0	8,890
Balance due to related parties, April 30, 2015	$        496,816	$      346,622	$       115,037	$        958,475