OPERATING LEASES

9 Months Ended

Dec. 31, 2014

Leases, Operating [Abstract]

OPERATING LEASES

NOTE 3 – OPERATING LEASES

On October 1, 2011, the Company entered into an agreement with Shandong YCT for the lease of one automobile. The lease term is from October 1, 2011 to September 30, 2021. The total lease payment of RMB131,468 (approximately USD21,370) was paid in full at lease signing and amortized over the life of the lease.

On June 20, 2013, the Company entered into a Farmland Leasing Agreement with Shiqiao Village for the lease of 2,000Mu farmland for the development of the acer truncatum bunge planting bases. The lease term is from July 1, 2013 to June 30, 2043. The lease payment is about RMB1, 000(approximately USD 163) per Mu annually and payable for five years of rents in advance. The first lease payment was for the rents of the first five years in the amount of RMB10,000,000 (approximately USD1,625,461), which were made within 15 working days from the signing of the Lease (refer to Note 12 - FUTURE MINIMUM LEASE PAYMENTS).

On March 1, 2014, the Company entered into a Farmland Leasing Agreement with Zhongce No.4 Village for the lease of 200Mu farmland to the development of the acer truncatum bunge planting bases. The lease term is from March 1, 2014 to February 28, 2044. The lease payment is RMB1,000,000 (approximately USD 162,546) for each five-year period in advance. The first lease payment was for the rents of the first five years in the amount of RMB1,000,000 (approximately USD162,546), which were made within 10 working days from the signing of the Lease (refer to Note 12 - FUTURE MINIMUM LEASE PAYMENTS).

The Company accounts for the lease agreement as an operating lease in accordance to ASC 840-10-25-37, which requires, if land is the sole item of property leased and either the transfer-of-ownership criterion in paragraph 840-10-25-1(a) or the bargain-purchase-option criterion in paragraph 840-10-25-1(b) is met, the lessee shall account for the lease as a capital lease. Otherwise, the lessee shall account for the lease as an operating lease. Per ASC 840-2-25-1, rent shall be charged to expense by lessees over the lease term as it becomes payable.

The components of prepaid lease as of December 31, 2014 were as follows:

Prepaid leases	Short-term		Long-term
Shiqiao Village – 2000Mu		326,851		817,127
Zhongce No. 4 Village – 200Mu		32,685		103,503
Total prepaid land lease		359,536		920,630
Shandong YCT - Automobile		2,149		12,354
Total prepaid lease		361,684		932,984

The prepaid lease is amortized based on straight-line method. The lease expenses for the three months ended December 31, 2014 and 2013 were $90,771 and $81,563, respectively.

The lease expenses for the nine months ended December 31, 2014 and 2013 were $270,503 and $162,630, respectively.