Loans

12 Months Ended

Mar. 31, 2012

NOTE 5. LOANS

On September 1, 2009, Mr. Lin and Mr. Luo, two of the stockholders of QGBS, loaned QGBS $100,000 and $20,000, respectively, to support its operations and expansion. The terms of both loans totaling $120,000 are at an annual interest rate of 8% and due on demand. In September 2010, QGBS paid $50,000 of the $100,000 principal balance to Mr. Lin plus $8,000 interest. In April, September and December 2011, QGBS paid back $2,000, $2,000 and $1,000, respectively, to Mr. Lin totaling $5,000 of interest payments. In January 2012, QGBS paid $20,000 of the remaining $50,000 principal balance to Mr. Lin. In November 2011, QGBS paid $3,333 interest payment to Mr. Luo. In January 2012, Mr. Luo and Mr. Leung (another stockholder of QGBS), loaned $15,000 each to QGBS to support its operations. The terms of both loans totaling $30,000 are at an annual interest rate of 8% and due on demand.

On December 1, 2010, six directors loaned the Company the amount of $5,000 each, totaling $30,000. On December 27, 2010, another director loaned the Company the amount of $5,000. Each of the loans from the seven directors was at a simple annual interest rate of 7% and due one year from the date of the loan. The Company paid $350 interest to each of these seven directors in December 2011. Further, each of the above loans from the seven directors was renewed in December 2011 for one additional year from the original maturity date with the same terms.

On December 28, 2010, an unrelated individual loaned the Company the amount of $10,000 with a simple annual interest rate of 7%. The principal and interest will be due on December 27, 2011. The Company paid $700 interest to this individual in December 2011. Further, the individual agreed to extend the due date of the principal to December 27, 2012 with the same terms.

The Company recorded $8,837 and $8,242 of interest expenses on the above loans during the years ended March 31, 2012 and 2011, respectively, which include accrued interest as follows:

	2012		2011
Accrued interests
Stockholder loans in subsidiaries	$	2,233	$	4,867
Directors’ loans		788		792
Loan from unrelated parties		175		183
	$	3,196	$	5,842

Elite Energies, Inc. 10-K