INCOME TAX EXPENSES

9 Months Ended

Jul. 31, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

14.        INCOME TAX EXPENSES

The Company adopted FIN No. 48 on January 1, 2007. There were no unrecognized tax benefits as of the date of adoption and there is no unrecognized tax benefits included in the balance sheet at July 31, 2011, that would, if recognized, affect the effective tax rate.

The following table reconciles the U.S. statutory rates to the Company’s effective tax rate for the three and nine months ended July 31, 2011 and 2010:

	Three months ended						Nine months ended
	July 31,						July 31,
	2011			2010			2011			2010
US statutory rates		34.00	%		34.00	%		34.00	%		34.00	%
Foreign tax rate difference		(9.0	)%		(9.0	)%		(9.0	)%		(9.0	)%
Income tax holiday		(10.0	)%		(25.0	)%		(10.0	)%		(25.0	)%
Tax per financial statements		15.00	%		0.00	%		15.00	%		0.00	%

Taxation on profits earned in the PRC has been calculated on the estimated assessable profits for the three and nine months at the rates of taxation prevailing in the PRC in which the Company operates after taking into effect the benefits from any special tax credits or “tax holidays” allowed in the country of operations.  If the Company did not have any tax exemption, the effects of the tax per share were as follows: 
 

	Three months ended				Nine months ended
	July 31,				July 31,
	2011		2010		2011		2010
	US$		US$		US$		US$
Tax savings		303,004		364,077		2,102,619		3,059,262
Benefit per share:
Basic		0.01		0.01		0.06		0.08
Diluted		0.01		0.01		0.06		0.08

Had the tax exemption not been in place for the three and nine months ended July 31, 2011 and 2010, the Company estimates the following pro forma financial statement impact:

	Three months ended						Nine months ended
	July 31,						July 31,
	2011			2010			2011			2010
	US$			US$			US$			US$
Net income as reported		2,519,845			1,456,309			20,549,196			12,237,047
Less Tax savings		(303,004	)		(364,077	)		(2,102,619	)		(3,059,262	)
Proforma Net income		2,216,841			1,092,232			18,446,577			9,177,785
Proforma Net income per share:
Basic		0.06			0.03			0.50			0.25
Diluted		0.06			0.03			0.49			0.24