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COMMITMENTS AND CONTINGENCIES
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3 Months Ended | ||||||||||||||||||||
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Jun. 30, 2011
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| Commitments Contingencies and Guarantees [Text Block] | 14. COMMITMENTS AND CONTINGENCIES The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in the North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company’s sales, purchases and expenses transactions are denominated in RMB and all of the Company’s assets and liabilities are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China, the central bank of China. Remittances in currencies other than RMB may require certain supporting documentation in order to affect the remittance. The Company entered into various agreements to purchase equipment and machinery in an effort to expand its production in 2010. As of June 30, 2011, the Company made a total payment of $3,931,596 on those equipment and machinery and a payment of $24,506,846 for the factories and land in Dongguan city. Additionally, the Company entered into several contracts and already made payment of $29,890,381 for ongoing construction projects. The Company still has the commitment to pay the remaining contract amount of $18 million in 2011. The Company entered into a lease agreement with Pantheon Realty, Inc. to lease its prior administrative office. Under the agreement, the Company is obligated to pay $4,000 monthly from June 1, 2009 to May 31, 2011. The Company entered into another lease agreement with 15 W 39th St. NY LLC to lease its administrative office in New York City from June 1, 2009 to May 31, 2012. Under the agreement, the Company is obligated to pay $8,000, $8,200 and $8,405 monthly for the first, second and third year, respectively. The following table sets forth the Company’s obligations for New York City leaseholds:
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