Note 11 - Concentrations and Credit Risk

9 Months Ended

Jan. 31, 2018

Notes

Note 11 - Concentrations and Credit Risk

NOTE 11 - CONCENTRATIONS AND CREDIT RISK

(i)    Customer Concentrations

For the three months ended January 31, 2018and 2017, customers accounting for 10% or more of the Company's revenue were as follows:

	Net Sales
	For the three months ended January 31, 2018		For the three months ended January 31, 2017
	Chinese Medicine	Stevioside	Chinese Medicine	Stevioside
A (1)	-	25.2%	-	33.2%
B	-	16.5%	-	*
Total	-	41.7%	-	33.2%

 For the nine months ended January 31, 2018 and 2017, customers accounting for 10% or more of the Company's revenue were as follows: 

	Net Sales
	For the nine months ended January 31, 2018		For the nine months ended January 31, 2017
	Chinese Medicine	Stevioside	Chinese Medicine	Stevioside
A (1)	-	12.3%	-	34.4%
B	-	10.6%	-	14.1%
Total	-	22.9%	-	48.5%

(1)  Qufu Shengwang Import and Export Co., Ltd is a related party, an entity owned by Mr. Laiwang Zhang.

 *   This represents less than 10% of the Company's revenue for the three and nine months ended January 31, 2018 and 2017.

(ii)    Vendor Concentrations

For the three months ended January 31, 2018 and 2017, suppliers accounting for 10% or more of the Company's purchase were as follows:

	Net Purchases
	For the three months ended January 31, 2018		For the three months ended January 31, 2017
	Chinese Medicine	Stevioside	Chinese Medicine	Stevioside
A	-	*	-	18.7
B	-	11.3%	-	*
C	-	*	-	15.9
D	-	*	-	13.6
Total	-	11.3%	-	48.2

For the nine months ended January 31, 2018 and 2017, suppliers accounting for 10% or more of the Company's purchase were as follows:

	Net Purchases
	For the nine months ended January 31, 2018		For the nine months ended January 31, 2017
	Chinese Medicine	Stevioside	Chinese Medicine	Stevioside
A	-	12.7%	-	13.0%
B	-	14.7%	-	*
C	-	*	-	21.3%
D	-	*	-	12.0%
Total	-	27.4%	-	46.3%

*   This represents less than 10% of the Company's purchase for the three and nine months ended January 31, 2018 and 2017.

(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, 2018, we had $150,344 of cash balance held in PRC banks, 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, 2018.

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.