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Note 8 - Security Deposit - Related Party
12 Months Ended
Mar. 31, 2018
Notes  
Note 8 - Security Deposit - Related Party

NOTE 8 – SECURITY DEPOSIT – RELATED PARTY

 

“Security deposit – related party” represents the deposit paid to Shandong Yongchuntang for using the direct-sales license issued to Shandong Yongchuntang.

 

The Company was permitted by Shandong Yongchuntang to sell Shandong Yongchuntang's products using the direct-sales license issued to Shandong Yongchuntang from July 1, 2015 to June 30, 2020. To ensure the appropriate use of the direct-sales license in the market, the Company provided a deposit of $1,590,305 (RMB10,000,000) to Shandong Yongchuntang as a marketing deposit based on an agreement between the Company and Shandong Yongchuntang, which was signed on January 4, 2017. If no violations of rules or regulations related to the direct-sales occur during the contract period, the security deposit will be fully returned to the Company at the end of the contract period. The amount of security deposit is non-interest bearing and is not secured.