NOTE 5 — OTHER RECEIVABLES

Other receivables consist of the following:

Other receivables are mainly composed of short-term capital loans, financial lease deposits, financial leases, bankers’ acceptances, temporary borrowings for employees, consulting fees and other items. The largest proportion is short-term capital borrowing with customers and suppliers in their daily operations, accounting for 94%, approximately $3.51 million. This is followed by deposit at 5%, approximately $0.18 million. Reserve fund accounted for about 1%, approximately $0.03 million.

For other receivables, approximately 28%, or $1.05 million of the date of issuance of the financial statements balance have been subsequently collected.