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SHORT-TERM LOANS - Note 13
9 Months Ended
Sep. 30, 2011
Notes to Financial Statements 
SHORT-TERM LOANS - Note 13

NOTE 13 - SHORT-TERM LOANS

Short-term loans are due to various financial institutions which are normally due within one year. As of September 30, 2011 and December 31, 2010, the Company's short term loans consisted of the following:

    September 30,
2011		   December 31,
2010
        (Audited)
             
Bank of Communication Tianjin Branch ("BOCTB"), due from March 8, 2010 to January 7, 2011 with floating interest, guaranteed by TCBGCL - related party   $ -   $ 3,024,895
             
BOCTB, due from June 28, 2010 to June 27, 2011 with floating interest, guaranteed by TCBGCL - related party     -     3,024,895
             
BOCTB, due from June 10, 2010 to June 9, 2011 with floating interest, guaranteed by TCBGCL - related party     -     3,024,895
             
BOCTB, due from August 18, 2010 to August 17, 2011 with floating interest, mortgaged by fix assets     -     1,119,211
             
BOCTB, due from November 3 to August 2, 2011 with benchmark interest rate plus 10%, guaranteed by TCBGCL - related party     -     4,537,342
             
BOCTB, due from December 8, 2010 to June 8, 2011, interest adjusted to the preferred interest rate as of the due date, guaranteed by Leimone (Tianjin) Industrial Co., Ltd. - related party     -     1,659,530
             
Northern International Trust & Investment Co., Ltd, due from October 13, 2010 to October 12, 2011 with interest at 8.400%, guaranteed by Small & Medium Enterprises Guarantee Center     1,874,473     1,814,937
             
China Bohai Bank, due from June 4, 2010 to June 3, 2011 with floating interest, Guaranteed by Tianjin Zhonghuan Electronic Communication Group.     -     3,024,895
             
BOCTB, due from July 4, 2011 to July 3, 2012 with benchmark interest rate plus 5%, guaranteed by TCBGCL - related party     3,124,121     -
             
BOCTB, due from June 20, 2011 to June 16, 2012 with benchmark interest rate plus 5%, guaranteed by TCBGCL - related party     3,124,121     -
             
BOCTB, due from June 14, 2011 to June 13, 2012 with benchmark interest rate plus 5%, guaranteed by TCBGCL - related party     3,061,640     -
             
BOCTB, due from August 18, 2011 to August 17, 2012, with benchmark interest rate plus 5%, mortgaged by fixed assets     3,124,121     -
             
BOCTB, due from August 3, 2011 to August 1, 2012 with benchmark interest rate plus 5%, guaranteed by TCBGCL - related party     4,686,182     -
             
China Merchant Bank Tianjin branch, due from July 29, 2011 to January 28, 2012, interest at 7.93%, mortgaged by bank notes amounted to $781,030 (RMB5,000,000)     749,789     -
             
Tianjin Jiuzhi Small-sum Loan Co., Ltd., due from September 22 to October 21, 2011, interest at 3% of the principal for the period, guaranteed by Tianjin Leimone and Gu Lei (a)     4,686,182     -
             
Key Network Holdings Limited, due from May 31, 2010 to May 31, 2012 with interest at 6%.     715,064     715,064
             
Bank of Tianjin Laolian Branch, due from June 24, 2011 to June 22, 2012 with interest at 6.941%, guaranteed by Tianjin Zhonghuan Electronic Information Group Ltd.     1,983,817     -
             
Bank of Tianjin Laolian Branch, due from June 24, 2011 to June 22, 2012 with interest at 6.941%, guaranteed by Tianjin Zhonghuan Electronic Information Group Ltd.     624,824     -
             
Bank of Tianjin Laolian Branch, due from June 27, 2011 to June 22, 2012 with interest at 6.941%, guaranteed by Tianjin Zhonghuan Electronic Information Group Ltd.     156,206     -
             
Bank of Tianjin Laolian Branch, due from June 28, 2011 to June 22, 2012 with interest at 6.941%, guaranteed by Tianjin Zhonghuan Electronic Information Group Ltd.     359,274     -
             
HSBC Suzhou Branch, due from August 15, 2011 to January 12, 2011 with interest at SIBOR+4.0%, guaranteed by tangible assets of the Company (b)     1,000,000     -
             
Beijing Bank Zhongguancun Haidianyuan Sub-branch, due March 14, 2012 with interest at 6.67%, guaranteed by TCB Digital     234,309     -
             
Beijing Bank Zhongguancun Haidianyuan Sub-branch, due March 14, 2012 with interest at 6.67%, guaranteed by TCB Digital     312,412     -
             
Beijing Bank Zhongguancun Haidianyuan Sub-branch, due March 14, 2012 with interest at 6.67%, guaranteed by TCB Digital     531,101     -
             
Total short-term loans   $ 30,347,636   $ 21,945,664

 

(a) On October 21, TCB renewed the loan agreement with the lender, the borrowing period was extended to November 21, 2011 and the renewed interest rate is 3.5% of the principal for the period.
(b) Based on a corporate guarantee from the Company and a personal guarantee from Mr. Gu for financing up to 85% of invoice for approved buyer of Profit Harvest, this loan is subject to certain covenants which should be complied at all times. Those covenants includes but not limited to tangible net worth not less than $40 million and net gearing not greater than 1.2 times. As of September 30, 2011, the Company is in compliance of those covenants.