INCOME TAX EXPENSES

3 Months Ended

Jan. 31, 2012

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 condensed consolidated balance sheet at January 31, 2012, 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 months ended January 31, 2012 and 2011:

	The three months ended January 31,
	2012			2011
US statutory rates		34.00	%		34.00	%
Foreign tax rate difference		(9.0	%)		(9.0	%)
Income tax holiday		(10.0	%)		(10.0	%)
Tax per financial statements		15.00	%		15.00	%

Taxation on profits earned in the PRC has been calculated on the estimated assessable profits for the year 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:

	For the three months ended January 31,
	2012		2011
	US$		US$
Tax savings		1,450,350		1,000,000
Benefit per share:
Basic		0.04		0.03
Diluted		0.04		0.03

Had the tax exemption not been in place for the three months ended January 31, 2012 and 2011, the Company estimates the following pro forma financial statement impact:

	For the three months ended January 31,
	2012			2011
	US$			US$
Net income before tax provision, as reported		12,307,232			10,948,295
Less Tax savings		(1,450,350	)		(1,000,000	)
Proforma Net income		10,856,882			9,948,295
Proforma Net income per share:
Basic		0.29			0.27
Diluted		0.29			0.26