Restatement of Financial Statements

12 Months Ended

Jun. 30, 2017

Restatement of Financial Statements [Abstract]

RESTATEMENT OF FINANCIAL STATEMENTS

NOTE 20 – RESTATEMENT OF FINANCIAL STATEMENTS

On April 13, 2018, the management of China Green Agriculture, Inc. (the “Company”) concluded, after consultation with our independent registered public accounting firm, the previous issued financial statements contained in the Company’s annual Report on Form 10K for the year ended June 30, 2017 should not be relied upon due primarily to the computation errors in the connection with the allocation of cash payment for VIE acquisitions. The company made two rounds of acquisitions in June 2016 and January 2017 respectively. For the acquisitions made in June 2016, the purchase consideration included RMB 37,000,000 in cash, which was originally recorded as $5.6 million acquisition payable in “Accrued Expenses and Other Payables” as of June 30, 2016. After paying it off this acquisition payable in fiscal year 2017, the Company recorded its payment of $5.4 million (using average exchange rate) in the “Cash Flows from Operating Activities” section in the Consolidated Statements of Cash Flows, which includes “Accrued Expenses and Other Payables”. As these cash outflows were related to the payment for business combinations, the payment should be included in the investing activities section of the statement of cash flow in the amended Form 10-K.

For the acquisitions made in January 2017, the purchase consideration included RMB 8,000,000 million in cash. The Company recorded a net payment in cash of $0.14 million in the “Cash Flows from Investing Activities” net of the effects from the RMB 7,100,000 cash acquired in the target companies’ working capital. The net payment $5.4 million for June 2016 acquisitions should be included in the investing activities section of the statement of cash flow in the amended Form 10-K.