Bank Loans

3 Months Ended

Mar. 31, 2013

Bank Loans [Abstract]

Bank Loan Disclosure [Text Block]

Note 9. Bank Loans

Bank loans were comprised of the following as March 31, 2013 and December 31, 2012:

	March 31, 2013		December 31, 2012
Installment loan provided by BEA Bank having a maturity date in July 28, 2014 and carrying an interest rate of Hong Kong dollar Prime Rate at 5.25% as of March 31, 2013 and December 31, 2012 +0.25%, payable in monthly installments of $13,819 including interest through March 2013 without any balloon payment requirements	$	205,128	$	243,590
Installment loan provided by BEA Bank having a maturity date in April 18, 2015 and carrying an interest rate of Hong Kong dollar Prime Rate at 5.25% as of March 31, 2013 and December 31, 2012 +0.25%, payable in monthly installments of $47,828 including interest through March 2013 without any balloon payment requirements		1,068,376		1,196,581
Installment loan provided by DBS Bank having a maturity date in April 25, 2015 and carrying an interest rate of Hong Kong Prime dollar Rate at 5.25% as of March 31, 2013 and December 31, 2012 +0.5%, payable in monthly installments of $60,233 including interest through March 2013 without any balloon payment requirements		1,415,718		1,574,812
Installment loan provided by DBS Bank having a maturity date in June 2, 2023 and carrying an interest rate of one month HIBOR at 0.23% as of March 31, 2013 and 0.28% as of December 31, 2012 +2%, payable in monthly installments of $4,064 including interest through March 2013 without any balloon payment requirements		446,439		456,123
Installment loan provided by DBS Bank having a maturity date in September 15, 2023 and carrying an interest rate of Hong Kong dollar Prime Rate at 5.25% as of March 31, 2013 and December 31, 2012 -2.5%, payable in monthly installments of $5,240 including interest through March 2013 without any balloon payment requirements		572,792		584,573
Installment loan provided by DBS Bank having a maturity date in June 2, 2026 and carrying an interest rate of one month HIBOR at 0.23% as of March 31, 2013 and 0.28% as of December 31, 2012 +2%, payable in monthly installments of $5,033 including interest through March 2013 without any balloon payment requirements		692,370		703,598
Installment loan provided by DBS Bank having a maturity date in July 21, 2026 and carrying an interest rate of Hong Kong dollar Prime Rate at 5.25% as of March 31, 2013 and December 31, 2012 -2.4%, payable in monthly installments of $9,925 including interest through March 2013 without any balloon payment requirements		1,319,628		1,340,032
	$	5,720,451	$	6,099,309

An analysis on the repayment of bank loan as of March 31, 2013 and December 31, 2012 are as follow:

	March 31, 2013		December 31, 2012
Carrying amount that are repayable on demand or within twelve months from March 31, 2013 containing a repayable on demand clause:
Within twelve months	$	1,539,802	$	1,529,282
Carrying amount that are not repayable within twelve months from March 31, 2013 containing a repayable on demand clause but shown in current liabilities:
After 1 year, but within 2 years	$	1,810,458	$	2,142,751
After 2 years, but within 5 years		470,277		467,232
After 5 years		1,899,914		1,960,044
	$	4,180,649	$	4,570,027
	$	5,720,451	$	6,099,309

With respect to all of the above referenced debt and credit arrangements referred in Note 8 and Note 9, the Company pledged its assets to a bank group in Hong Kong comprised of DBS Bank and BEA Bank, as collateral for all current and future borrowings from the bank group by the Company. In addition to the above pledged collateral, the debt is also secured by:

1. Collateral for loans from DBS Bank:

(a) a fixed cash deposit of $840,897 (HKD6,559,000);

(b) a security interest on two residential properties located in Hong Kong owned by Atlantic, an indirect wholly owned subsidiary of USmart;

(c) a workshop located in Hong Kong owned by Atlantic, an indirect wholly owned subsidiary of USmart

(d) a security interest on a residential property located in Hong Kong owned by City, a related party;

(e) a workshop located in Hong Kong owned by Solution, a related party;

(f) a security interest on two residential properties located in Hong Kong owned by Aristo, a company wholly owned by Mr. Yang; and

(g) an unlimited personal guarantee by Mr. Yang

2. Collateral for loans from BEA Bank:

(a) a workshop located in Hong Kong owned by Systematic Information, a related party;

(b) a workshop located in Hong Kong owned by Solution, a related party; and

(c) an unlimited personal guarantee by Mr. Yang