NOTE 16 – RESTRICTED NET ASSETS

The Company’s operations are primarily conducted through its PRC subsidiaries, which can only pay dividends out of their retained earnings determined in accordance with the accounting standards and regulations in the PRC and after it has met the PRC requirements for appropriation to statutory reserves. In addition, the Company’s businesses and assets are primarily denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. These currency exchange control procedures imposed by the PRC government authorities may restrict the ability of the Company’s PRC subsidiaries to transfer their net assets to the Parent Company through loans, advances or cash dividends.

The Company’s PRC subsidiaries net assets as of June 30, 2014 and 2013 exceeded 25% of the Company’s consolidated net assets. Accordingly, condensed Parent Company financial statements have been prepared in accordance with Rule 5-04 and Rule 12-04 of SEC Regulation S-X, and are as follows.

Parent Company Financial Statements

PARENT COMPANY FINANCIAL INFORMATION OF CHINA GREEN AGRICULTURE, INC.

Condensed Balance Sheets	As of June 30,
	2014		2013
ASSETS
Current Assets:
Cash and cash equivalents	$	117,939	$	62,299
Other current assets		1,908		1,908
Total Current Assets		119,847		64,207

Long-term equity investment		335,598,200		299,923,857
Total long term assets		335,598,200		299,923,857
Total Assets	$	335,718,047	$	299,988,064

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	214,520	$	394,520
Amount due to related parties		588,343		138,343
Other payables and accrued expenses		2,875,392		2,601,909
Total Current Liabilities		3,678,255		3,134,772

Stockholders' Equities
Common stock, $.001 par value, 115,197,165 shares authorized, 32,362,534 and 29,943,236, shares issued and outstanding as of June 30, 2014 and 2013, respectively		32,362		29,943
Additional paid in capital		114,605,214		105,962,909
Accumulated other comprehensive income		22,840,491		21,813,410
Retained earnings		194,561,725		169,047,030
Total Stockholders' Equity		332,039,792		296,853,292

Total Liabilities and Stockholders' Equity	$	335,718,047	$	299,988,064

Condensed Statements of Operations	Year ended June 30,
	2014		2013		2012
Revenue	$	-	$	-	$	-
General and administrative expenses		9,132,587		3,941,195		5,707,065
Interest income (expense)		20		142		347
Equity investment in subsidiaries		34,647,262		48,715,101		47,664,543
Net income	$	25,514,695	$	44,774,048	$	41,957,825

Condensed Statements of Cash Flows	Year Ended June 30,
	2014		2013		2012
Net cash provided by (used in) operating activities	$	55,640	$	(215,239)	$	(1,286,612)
Net cash provided by (used in) investing activities		0		0		0
Net cash provided by financing activities		0		0		600,001
Cash and cash equivalents, beginning balance		62,299		277,538		964,149
Cash and cash equivalents, ending balance	$	117,939	$	62,299	$	277,538

Notes to Condensed Parent Company Financial Information

As of June 30, 2014, 2013 and 2012, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except as separately disclosed in the Consolidated Financial Statements, if any. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.