Note 2 - Summary of Significant Accounting Policies: Intangible Assets (Policies)

12 Months Ended

Mar. 31, 2016

Policies

Intangible Assets

Intangible Assets

(i) Land Use Rights:

All land in the PRC is owned by the government and cannot be sold to any individual or company.  However, the government may grant a “land use right” for occupying, developing and using land. The Company records land use rights obtained as intangible assets at cost, which is amortized evenly over the grant period of 50 years.

(ii) Patents:

In March 2010, the Company purchased one patent use right from Shandong Yong Chun Tang Bioengineering Co., Ltd. (“Shandong YCT”).  The Company has exclusive right to use an aglycone type and purification method of biotransformation in the gingko product manufacturing process for a period of 20 years from the patent application date.  The patent was recorded at cost when purchased, and is being amortized over its remaining legal life, 16.5 years, which is shorter than its remaining useful life, on a straight-line basis.

In October 2011, two patents were transferred to the Company based on a purchase agreement signed with Jining Tianruitong Technology development Company, Limited on October 26, 2010; which are “Treatment to ischemic encephalopathy and its preparation method” (ZL200510045001.9) and “Chinese herbal medicine compound to treat renal insufficiency and its preparation” (ZL200710013301.8). The patents were recorded at cost when purchased, and are being amortized over its legal lives, 14 years and 15 years, respectively; on a straight-line basis. Both patents’ legal lives are considered shorter than their remaining useful lives. At March 31, 2016, the Company conducted its annual test for impairment on patents and recorded a full impairment of the patent “Chinese herbal medicine compound to treat renal insufficiency and its preparation” (ZL200710013301.8). (See the NOTE 7).