XML 81 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
SHORT-TERM BORROWINGS
 12 Months Ended
Dec. 31, 2012
Short-Term Debt [Abstract]  
Short-term Debt [Text Block]
8. SHORT-TERM BORROWINGS

 

The Company has a line of credit for $1,604,800 (RMB10,000,000) with a commercial bank in China to finance its working capital. The credit line bears interest at a variable rate and is renewed annually. Average interest rates for the year ended December 31, 2012 and 2011 were 6.60% and 5.78%, respectively. Pursuant to the terms of the agreement, the line of credit is secured by BTL’s building (see note 5) and guaranteed by BDL and an officer of the Company.

 

On May 14, 2012, the bank renewed the Company's credit line that bears interest at a variable rate with payments due on March 14, 2013 and May 14, 2013 for RMB3,000,000 and RMB7,000,000, respectively.

 

On February 2, 2012, the Company entered into a new loan agreement with Nanjing Bank Company Limited (Beijing Branch) in the amount of $802,400 (RMB5,000,000) with floating interest rate which was approximately 8.2% per year, due on January 30, 2013 (See note 19). Pursuant to the terms of the agreement, the line of credit is guaranteed by an officer of the Company.

 

Interest expense on short-borrowings for the years ended December 31, 2012 and 2011 amounted to $149,488 and 82,136, respectively.