DEPOSITS FOR PROPERTIES

6 Months Ended

Apr. 30, 2012

Deposit [Abstract]

Deposit [Text Block]

12.           DEPOSITS FOR PROPERTIES

Deposits for properties as of April 30, 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)	$	23,683,587	$	(1,611,903	)	$	22,071,684	$	23,527,566	$	(1,209,375	)	$	22,318,191
Two Office Floors		4,240,186		(404,981	)		3,835,205		4,212,253		(268,209	)		3,944,044
Product Patents		9,110,287		-			9,110,287		11,559,878		-			11,559,878
Total	$	37,034,060	$	(2,016,884	)	$	35,017,176	$	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 and six months ended April 30, 2012 and 2011, respectively, were as follows:

	For the three months ended April 30,
	2012		2011
	US$		US$
Ah City Pharmaceutical Plant(Note 11)		197,223		190,549
Two Office Floors		67,449
Total		264,672		190,549

	For the six months ended April 30,
	2012		2011
	US$		US$
Ah City Pharmaceutical Plant(Note 11)		394,446		379,029
Two Office Floors		134,898
Total		529,344		379,029

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 $6,057,409.  Pursuant to the Purchase Agreement, a payment of $4,240,186 was made in April 2010 and recorded as deposits on the condensed consolidated balance sheet.  Pursuant to the Purchase Agreement, final payment of $1,817,223 is due by December 20, 2012, at which time title for the assets will be transferred.  Accordingly the transaction is considered incomplete as of April 30, 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 $9,110,287 towards the purchase.