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CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS
 3 Months Ended
Mar. 31, 2012
CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

NOTE 19 – CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

 

As of March 31, 2012, the Company has leased a real property adjacent to Factory No. 1, with the related production facility, channels and ducts, other production equipment and the buildings located on the property, under capital lease. The future minimum lease payments required under capital lease, together with the present value of such payments, are included in the table show below.

 

The Company has leased seven pieces of land under non-cancelable operating leases, which are fixed in rentals and expired through December 2021, December 2030, December 2031, December 2040, February 2059, August 2059 and June 2060, respectively. The Company accounts for the leases as operating leases.

 

The Company has no purchase commitment as of March 31, 2012.

 

The following table sets forth the Company’s contractual obligations as of March 31, 2012:

 

    Capital Lease Obligations     Operating Lease Obligations     Purchase Obligations  
Payable within:                        
the next 12 months   $ 298,199     $ 684,140     $ -  
the next 13 to 24 months     298,199       777,095       -  
the next 25 to 36 months     298,199       787,760       -  
the next 37 to 48 months     298,199       799,800       -  
the next 49 to 60 months     298,199       811,432       -  
thereafter     4,174,786       19,001,379       -  
Total   $ 5,665,781     $ 22,861,606     $ -  
Less: Amount representing interest     (2,382,096 )                
Present value of net minimum lease payments   $ 3,283,685                  

 

Rental expenses related to operating leases of the Company amounted to $194,316 and $104,007, which were charged to the income statements for the three-month ended March 31, 2012 and 2011, respectively.