Short-Term Bank Loans

3 Months Ended

Mar. 31, 2013

NOTE 7 – SHORT-TERM BANK LOANS

Short-term bank loan represents an amount due to a bank that is due within one year. This loan can be renewed with the bank upon maturity. At March 31, 2013 and December 31, 2012, short-term bank loans consisted of the following:

	March 31, 2013		December 31, 2012
Loan from Agricultural and Commercial Bank, due on August 26, 2013 with annual interest rate of 6.90% at March 31, 2013 and December 31, 2012, secured by certain assets of the Company.	$	477,585	$	474,977
Loan from Bank of Communications, due on May 8, 2013 with annual interest rate of 6.72% at March 31, 2013 and December 31, 2012, repaid on due date (see note 15).		318,390		316,651
Loan from Bank of Communications, due on May 12, 2013 with annual interest rate of 6.72% at March 31, 2013 and December 31, 2012, repaid on due date (see note 15).		477,585		474,977
Loan from Bank of China, due on January 16, 2013 with annual interest rate of 7.35% at December 31, 2012, secured by certain assets of the Company, repaid on due date.		-		949,953
Loan from Bank of China, due on January 3, 2014 with annual interest rate of 6.30% at March 31, 2013, secured by certain assets of the Company.		955,171		-
Loan from Jiangsu Huishan Mintai Village Town Bank, due on September 30, 2013 with annual interest rate of 7.80% at March 31, 2013, secured by certain assets of the Company.		795,976		-

Total short-term bank loans	$	3,024,707	$	2,216,558

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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