Statutory Reserve

12 Months Ended

Dec. 31, 2015

Statutory Reserve [Abstract]

STATUTORY RESERVE

NOTE 12– STATUTORY RESERVE

The Company is required to make appropriations to statutory reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (the “PRC GAAP”). Appropriation to the statutory reserve should be at least 10% of the after tax net income determined in accordance with the PRC GAAP until the reserve is equal to 50% of the entities’ registered capital or members’ equity. As of December 31, 2013, the Company appropriated the required maximum 50% of its registered capital to statutory reserve for Heavy Industries; accordingly, no additional statutory reserve is required for the years ended December 31, 2015 and 2014. As of December 31, 2015, the Company appropriated the required maximum 50% of its registered capital to statutory reserve for Dyeing, and the Company had not appropriated the required maximum 50% of its registered capital to statutory reserve for Fulland Wind Energy. During the years ended December 31, 2015 and 2014, the Company did not make any appropriations to statutory reserve for Fulland Wind Energy as it incurred recurring net losses.

For the years ended December 31, 2015 and 2014, statutory reserve activities were as follows: 

	Dyeing		Heavy Industries		Fulland Wind Energy		Total
Balance - December 31, 2013	$	373,048	$	1,168,796	$	1,202,876	$	2,744,720
Addition to statutory reserve		549,479		-		-		549,479
Balance - December 31, 2014		922,527		1,168,796		1,202,876		3,294,199
Addition to statutory reserve		261,269		-		-		261,269
Balance - December 31, 2015	$	1,183,796	$	1,168,796	$	1,202,876	$	3,555,468