DEPOSITS FOR PROPERTIES

3 Months Ended

Jan. 31, 2012

Deposit [Abstract]

Deposit [Text Block]

12. DEPOSITS FOR PROPERTIES

Deposits for properties as of January 31, 2012 and October 31, 2011 were as follows:

	2012							2011
Name of Asset	Prepaid Amount		Rent expenses deducted			Net deposits		Prepaid Amount		Rent expenses deducted			Net deposits
Ah City Pharmaceutical Plant(Note 11)	$	23,857,617	$	(1,424,691	)	$	22,432,926	$	23,527,566	$	(1,209,375	)	$	22,318,191
Two Office Floor		4,271,344		(339,964	)		3,931,380		4,212,253		(268,209	)		3,944,044
Product Patents		9,177,230		-			9,177,230		11,559,878		-			11,559,878
Total	$	37,306,191	$	(1,764,655	)	$	35,541,536	$	39,299,697	$	(1,477,584	)	$	37,822,113

Forgiven rental expenses incurred and recognized to the condensed consolidated financial statements of operations and comprehensive income during the three months ended January 31, 2012 and 2011, respectively, were as follows.

	For the three months ended January 31,
	2012		2011
	US$		US$
Ah City Pharmaceutical Plant(Note 11)		197,419		188,202
Two Office Floor		67,516
Total		264,935		188,202

On April 10, 2010, the Company through its wholly own subsidiary, CBP China, entered into a Purchase Agreement with Hongxiangmingyuan of Heilongjiang Yongtai Company, to acquire two office floors for a total consideration of $6,101,920.  Pursuant to the Purchase Agreement, a payment of $4,271,344 was made in April 2010 and recorded as deposits on the condensed consolidated balance sheet.  Pursuant to the Purchase Agreement, final payment of $1,830,576 is due by December 20, 2012, at which time title for the assets will be transferred.  Accordingly the transaction is considered incomplete as of January 31, 2012. Based on the purchasing agreement between CBP China and Hongxiangmingyuan, the Company does not need to pay any rental fees before the title is transferred. Rental expenses related to this lease, incurred and expensed to consolidated statements of operations and comprehensive income, which were forgiven rental expenses and recognized to account for the rental exemption pursuant to the purchase agreement, and the deposits for the property were reduced accordingly.

In the fourth quarter of our fiscal year 2011, we entered into contracts to purchase Patent of Ingredients and preparation for Parkinson Drug, Patent of Ingredients and preparation for Xiangdousu, etc. and deposited $9,177,230 towards the purchase.