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, 2015 and 2014 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,
	2015		2014
ASSETS
Current Assets:
Cash and cash equivalents	$	306,376	$	117,939
Other current assets		2,977		1,908
Total Current Assets		309,353		119,847

Long-term equity investment		377,245,446		335,598,200
Total long term assets		377,245,446		335,598,200
Total Assets	$	377,554,799	$	335,718,047

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	214,520	$	214,520
Amount due to related parties		888,743		588,343
Other payables and accrued expenses		3,502,062		2,875,392
Total Current Liabilities		4,605,325		3,678,255

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, 2015 and 2014, respectively		35,905		32,362
Additional paid in capital		123,360,384		114,605,214
Accumulated other comprehensive income		25,708,238		22,840,491
Retained earnings		223,844,947		194,561,725
Total Stockholders' Equity		372,949,474		332,039,792

Total Liabilities and Stockholders' Equity	$	377,554,799	$	335,718,047

Condensed Statements of Operations	Year ended June 30,
	2015		2014		2013
Revenue	$	-	$	-	$	-
General and administrative expenses		6,560,980		9,132,587		3,941,195
Interest income (expense)		200		20		142
Equity investment in subsidiaries		38,005,906		34,647,262		48,715,101
Net income	$	31,445,126	$	25,514,695	$	44,774,048

Condensed Statements of Cash Flows	Year Ended June 30,
	2015		2014		2013
Net cash provided by (used in) operating activities	$	188,437	$	55,640	$	(215,239)
Net cash provided by (used in) investing activities		-
Net cash provided by financing activities		-
Cash and cash equivalents, beginning balance		117,939		62,299		277,538
Cash and cash equivalents, ending balance	$	306,376	$	117,939	$	62,299

Notes to Condensed Parent Company Financial Information

As of June 30, 2015, 2014 and 2013, 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.