INCOME TAX EXPENSES

9 Months Ended

Jul. 31, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 14 - INCOME TAX EXPENSES

Pursuant to FASB ASC Topic 740, there is no unrecognized tax benefits included in the condensed consolidated balance sheet at July 31, 2012 and October 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, 2012 and 2011:

	The three and nine months ended
	July 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 July 31,				For the nine months ended July 31,
	2012		2011		2012		2011
	US$		US$		US$		US$
Tax savings		385,066		303,004		2,760,059		2,102,619
Benefit per share:
Basic		0.01		0.01		0.07		0.06
Diluted		0.01		0.01		0.07		0.06

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

	For the three months ended July 31,						For the nine months ended July 31,
	2012			2011			2012			2011
	US$			US$			US$			US$
Net income		3,255,538			2,519,845			23,412,891			20,549,196
Less Tax savings		(385,066	)		(303,004	)		(2,760,059	)		(2,102,619	)
Proforma Net income		2,870,472			2,216,841			20,652,832			18,446,577
Proforma Net income per share:
Basic		0.08			0.06			0.55			0.50
Diluted		0.08			0.06			0.55			0.49