DEPOSITS FOR PROPERTIES

9 Months Ended

Jul. 31, 2012

Deposit [Abstract]

Deposit [Text Block]

NOTE 12 - DEPOSITS FOR PROPERTIES

Deposits for properties as of July 31, 2012 and October 31, 2011 were listed as following:

	July 31, 2012							October 31, 2011
Name of Asset	Prepaid Amount		Rent expenses deducted			Net deposits		Prepaid Amount		Rent expenses deducted			Net deposits
Ah City Pharmaceutical Plant	$	23,712,791	$	(1,811,457	)	$	21,901,334	$	23,527,566	$	(1,209,375	)	$	22,318,191
Office Floor		3,032,439		(236,530	)		2,795,909		4,212,253		(268,209	)		3,944,044
Product Patents		9,121,520		-			9,121,520		11,559,878		-			11,559,878
Total	$	35,866,750	$	(2,047,987	)	$	33,818,763	$	39,299,697	$	(1,477,584	)	$	37,822,113

Forgiven rental expenses incurred and recognized to the condensed consolidated financial statements of income and comprehensive income during the three and nine months ended July 31, 2012 and 2011, respectively, were listed as following:

	For the three months ended July 31,
	2012		2011
	US$		US$
Ah City Pharmaceutical Plant		197,503		195,661
Two Office Floor		33,805		-
Total		231,308		195,661

	For the nine months ended July 31,
	2012		2011
	US$		US$
Ah City Pharmaceutical Plant		591,949		572,065
Two Office Floor		168,703		-
Total		760,652		572,065

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 $6,064,878.  Pursuant to the Purchase Agreement, a payment of $4,245,415 was made in April 2010 and recorded as deposits on the condensed consolidated balance sheet.  Pursuant to the Purchase Agreement, a final payment of $1,819,463 was made in May 2012. The title of one office floor was transferred in May 2012, the Company reclassified $2,829,699 from deposits to property and equipment and started depreciation over the estimated useful life of the asset. The other office floor is still in the process of title transfer.

Based on the purchase agreement between CBP China and Hongxiangmingyuan, the Company does not pay any rental fees before the title is transferred. Rental expenses related to this lease incurred and expensed before transfer of title 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 $11,559,878 towards the purchase. The Company decided not to purchase two other patents and received $2,509,607 amount of deposit.