MIME-Version: 1.0 X-Document-Type: Workbook Content-Type: multipart/related; boundary="----=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051" This document is a Single File Web Page, also known as a Web Archive file. If you are seeing this message, your browser or editor doesn't support Web Archive files. Please download a browser that supports Web Archive, such as Microsoft Internet Explorer. ------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Workbook.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"

This page should be opened with Microsoft Excel XP or newer.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet01.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Document and Entity Information
3 Months Ended
Sep. 30, 2012
Nov. 14, 2012
Document and Entity Information
Entity Registrant Name JINZANGHUANG TIBET PHARMACEUTICALS, INC.
Document Type 10-Q
Document Period End Date Sep 30, 2012
Amendment Flag false
Entity Central Index Key 0000910832
Current Fiscal Year End Date --06-30
Entity Common Stock, Shares Outstanding 50,665,063
Entity Filer Category Smaller Reporting Company
Entity Current Reporting Status Yes
Entity Voluntary Filers No
Entity Well-known Seasoned Issuer No
Document Fiscal Year Focus 2013
Document Fiscal Period Focus Q1
------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet02.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
CONSOLIDATED BALANCE SHEETS (USD $)
Sep. 30, 2012
Jun. 30, 2012
Cash $ 11,305,105 $ 8,584,928
Accounts receivable 1,220,943 899,957
Prepaid expenses and other current assets 39,943 3,997
Deferred tax assets 10,974 10,974
TOTAL CURRENT ASSETS 12,576,965 9,499,856
Property and equipment, net of accumulated depreciation 397,631 403,477
Intangible assets, net of accumulated amortization 187,132 188,612
TOTAL ASSETS 13,161,728 10,091,945
Due to related party 36,843 36,630
Accrued expenses and other current liabilities 761,647 595,669
TOTAL CURRENT LIABILITIES AND TOTAL LIABILITIES 798,490 632,299
Common stock, $0.001 par value, 300,000,000 shares authorized, 50,665,063 and 40,665,063 shares issued and outstanding at September 30, 2012 and June 30, 2012, respectively 50,665 40,665
Additional paid-in capital 2,254,427 1,264,427
Retained earnings 9,326,972 7,493,615
Accumulated other comprehensive income 164,949 189,704
TOTAL STOCKHOLDERS' EQUITY OF THE COMPANY 11,797,013 8,988,411
Non-controlling interests 566,225 471,235
TOTAL STOCKHOLDERS' EQUITY 12,363,238 9,459,646
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,161,728 $ 10,091,945
------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet03.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
CONSOLIDATED BALANCE SHEETS PARENTHETICAL (USD $)
Sep. 30, 2012
Jun. 30, 2012
Common stock par value $ 0.001 $ 0.001
Common stock shares authorized 300,000,000 300,000,000
Common stock shares issued 50,665,063 40,665,063
Common stock shares outstanding 50,665,063 40,665,063
------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet04.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $)
3 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Total Revenue $ 3,334,334 $ 2,564,583
Services cost of revenue 513,708 233,832
Business and sales related tax cost of revenue 186,960 129,312
Total Costs of Revenue 700,668 363,144
GROSS PROFIT 2,633,666 2,201,439
General and administrative expenses 70,659 114,639
OPERATING INCOME 2,563,007 2,086,800
OTHER INCOME 8,597 1,054
INCOME BEFORE INCOME TAX 2,571,604 2,087,854
INCOME TAX 641,954 475,566
NET INCOME 1,929,650 1,612,288
LESS: NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS 96,293 82,676
NET INCOME ATTRIBUTABLE TO THE COMPANY 1,833,357 1,529,612
Foreign currency translation gain, net of tax (26,058) 71,619
COMPREHENSIVE INCOME 1,807,299 1,601,231
LESS: OTHER COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (1,303) 4,693
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY $ 1,808,602 $ 1,596,538
Basic and diluted earnings per common share $ 0.04 $ 0.04
Weighted average number of shares outstanding 47,295,498 40,665,063
------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet05.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
CONSOLIDATED STATEMENTS OF CASH FLOW (USD $)
3 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Net income attributable to the Company $ 1,833,357 $ 1,529,612
LESS: NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS 96,293 82,676
Depreciation and amortization 5,828 5,740
Change in accounts receivable (323,271) (339,584)
Change in prepaid expense (35,956)
Change in accrued expenses and other current liabilities 167,696 94,167
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,743,947 1,372,611
Shares Issued 1,000,000
Proceeds from related party, loan 29,460
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,000,000 29,460
EFFECT OF EXCHANGE RATE ON CASH (23,770) 53,558
INCREASE IN CASH 2,720,177 1,455,629
CASH - BEGINNING OF PERIOD 8,584,928 2,176,655
CASH - END OF PERIOD 11,305,105 3,632,284
Cash paid for income tax $ 492,662 $ 440,282
------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet06.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
1 Business Description and Significant Accounting Policies
3 Months Ended
Sep. 30, 2012
Notes
1 Business Description and Significant Accounting Policies

1              BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES

 

Business description

 

Jinzanghuang Tibet Pharmaceuticals, Inc. (“the Company”) is engaged in providing consulting services to facilitate the distribution of Tibetan pharmaceutical and nutraceutical products in the People’s Republic of China (“PRC”).  The Company’s operations are carried out through Beijing Taibodekang Consulting Co., Ltd. (“BTC”) and Leling Jinzanghuang Biotech Co., Ltd. (Leling JZH).

 

On January 12, 2009 the Company  acquired all of the outstanding capital stock of Tibet Medicine, Inc. (“TMI”), a Delaware corporation, in exchange for 36,401,462 shares of its common stock issued to the shareholders of TMI, representing 89.6% of the issued and outstanding shares of the Company. TMI was organized under the laws of Delaware on September 4, 2008 and is the 100% owner of the registered capital of BTC. BTC is a Wholly Foreign Owned Entity that was organized under the laws of the People’s Republic of China on December 5, 2008. For accounting purposes, the above transaction was accounted for as a reverse merger. TMI became the surviving entity for accounting purposes, whereas the Company is recognized as the surviving entity for legal purposes.

 

On January 4, 2009, BTC entered into four ten-year agreements (the “Entrusted Management Agreements”) with Leling JZH, which was incorporated under the laws of PRC as a limited liability company on November 20, 2008, and with the registered equity holders of Leling JZH.  Three of the agreements were amended as of July 24, 2009.  The purpose of these agreements is to transfer to BTC full responsibility for the management of Leling JZH, as well as 95% of the financial benefits that arise from the business of Leling JZH. As a result, BTC now has control over the business of Leling JZH and is considered a variable interest entity.  For that reason, the results of operations of Leling JZH have been included with the Company’s condensed consolidated financial statements.

 

 Basis of presentation

 

The unaudited consolidated financial statements presented herein include the accounts of Jinzanghuang Tibet Pharmaceuticals, Inc., its wholly owned subsidiary (BTC) and variable interest entity (Leling JZH).  All inter-company transactions and balances among the Company and its subsidiaries are eliminated upon consolidation.  In the opinion of management, all adjustments and normal recurring accruals considered necessary for a fair statement of the results for the period have been included.

 

The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and are presented in U.S. Dollars.

 

Uses of estimates in the preparation of financial statements

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during each reporting period.  Actual results could differ from those estimates.

 

Variable Interest Entity

 

Effective January 1, 2009, the Consolidation Topic ASC 810-10-45-16 revised the accounting treatment for non-controlling minority interests of partially-owned subsidiaries.  Non-controlling minority interests represent the allocation of earnings to the VIE owners who are not at risk for the majority of losses of the VIE, which have been accounted for by using the consolidation method of accounting.

 

The accounts of Leling JZH have been consolidated with the accounts of the Company because Leling JZH is a variable interest entity with respect to Beijing Taibodekang, which is a wholly-owned subsidiary of the Company.  Beijing Taibodekang has a contractual obligation to provide management services to Leling JZH, and the management of the operations of Leling JZH is carried out by Company personnel in fulfillment of that obligation.  Beijing Taibodekang also has a contractual obligation to reimburse Leling JZH for any losses incurred as a result of the operations of Leling JZG, and the Company’s principal shareholders caused funds to be contributed to Leling JZG during the years ended June 30, 2010 and 2009 in satisfaction of that obligation.  The carrying amount and classification of Leling JZH’s assets and liabilities included in the Condensed Consolidated Balance Sheets are as follows:

 

 

 

September30, 2012

 

 

June 30, 2012

 

Total current assets

 

$

13,077,095

 

 

$

9,418,343

 

Total assets

 

 

12,492,331

 

 

 

10,010,432

 

Total current liabilities

 

 

1,756,402

 

 

 

589,677

 

Total liabilities

 

 

1,756,402

 

 

 

589,677

 

 

The amounts shown in the above table as of September 30, 2012 include $1,000,000 of intercompany payables  that have been eliminated in consolidating Leling JZH with the Company.

 

The Consulting Agreement between Leling Jinzanghuang and Beijing Taibodekang requires that, in payment for the consulting services provided by Beijing Taibodekang, Leling Jinzanghuang will pay fees to Beijing Taibodekang equal to:

 

 

·

10,000 RMB per month, plus

 

·

95% of the annual gross profit of Leling Jinzanghuang.

 

The Consulting Agreement also provides, however, that Beijing Taibodekang will reimburse Leling Jinzanghuang for the amount of any net loss incurred by Leling Jinzanghuang during the period when it is managed by Beijing Taibodekang.

 

Revenue recognition

 

The Company recognizes revenue from provision of services to sauna stores based on units of the sauna store’s product usage, which is the contractual method of determining the right to revenue. The revenue is recognized at 35% or 40% of sauna stores’ revenue from sale of Shandong JZH products. The percentage is depending on the location of the sauna store.  Payments are made to the Company directly from the sauna stores a month after the end of the month in which the sales occurred.

 

Cash

 

The Company maintains cash with financial institutions in the People’s Republic of China (“PRC”) which are not insured or otherwise protected.  Should any of these institutions holding the Company’s cash become insolvent, or if the Company is unable to withdraw funds for any reason, the Company could lose the cash on deposit with that institution.

 

Accounts Receivable

 

Accounts receivable represent receivables from customers. Reserves for bad debts are based on a combination of current sales, historical charge-offs and specific accounts identified as high risk. Uncollectible accounts receivable are charged against the allowance for doubtful accounts when all reasonable efforts to collect the amounts due have been exhausted. Such allowances, if any, would be recorded in the period the impairment is identified. There is no bad debt expense recorded during the three months ended September 30, 2012 or the year ended June 30, 2012. The balance of allowance for bad debts was $0 and $0 ended September 30, 2012 and June 30, 2012, respectively. The accounts receivable balance as of September 30, 2012 is in compliance with the Company’s credit terms.

 

Property and equipment

 

Property and equipment are recorded at cost. Depreciation is provided in amounts sufficient to amortize the cost of the related assets over their useful lives using the straight line method.

 

Long-Lived Assets and Other Acquired Intangible Assets

 

The Company reviews property and equipment and certain identifiable intangibles for impairment. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by comparison of their carrying amounts to future undiscounted cash flows the assets are expected to generate. If property and equipment and certain identifiable intangibles are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the assets exceeds its fair market value. The Company did not record any impairments during the three months ended September 30, 2012

 

Income tax

 

The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires the Company to use the assets and liability method of accounting for income taxes. Under the assets and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between financial statement carrying amounts and the tax bases of existing assets and liabilities and operating loss and tax credit carry forward. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized.

 

ASC 740-10, Accounting for Uncertainty in Income Taxes, defines uncertainty in income taxes, and the evaluation of a tax position is a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met.

 

Enterprise income tax

 

Under the Provisional Regulations of PRC Concerning Income Tax on Enterprises promulgated by the PRC, income tax is payable by enterprises at a rate of 25% of their taxable income.

 

Business Taxes and Sales-related Taxes

 

Pursuant to the tax law and regulations of PRC, Leling JZH is obligated to pay 5% of revenue for business taxes, and 7% and 4% (5% effective in May, 2011) of the annual business taxes paid as tax on maintaining and building cities and education additional fee, both of which belong to sales-related taxes. Sales-related taxes are recorded when revenue is recognized. For the three months ended September 30, 2012 and 2011, business taxes and sales-related taxes were $186,960 and $129,312, respectively.

.

Stock-based compensation

 

The Company records stock-based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expense related to the fair value of its share-based compensation. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method.

 

Currency translation

 

Since the Company operates primarily in the PRC, the Company’s functional currency is the Chinese Yuan (“RMB”).  The Company’s financial statements have been translated into the reporting currency, the United States Dollar (“USD”). Assets and liabilities of the Company are translated at the prevailing exchange rate at each reporting period end date. Contributed capital accounts are translated using the historical rate of exchange when capital is injected. Income and expense accounts are translated at the average rate of exchange during the reporting period. Translation adjustments resulting from translation of these condensed consolidated financial statements are reflected as accumulated other comprehensive income in stockholders’ equity.

 

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation.

 

Statement of Cash Flows

 

In accordance with FASB ASC Topic 230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the Company’s condensed consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the condensed consolidated balance sheet.

 

Fair value of financial instruments

 

The Company adopted the provisions of Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

 

Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

 

Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other then quoted prices that are observable, and inputs derived from or corroborated by observable market data.

 

Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.

 

The carrying amounts reported in the consolidated balance sheets for cash, due to related party, and accrued expenses, approximate their fair market value based on the short-term maturity of these instruments. The Company did not identify any other assets or liabilities that are required to be presented in the consolidated balance sheets at fair value in accordance with ASC 820.

 

Earnings per share

 

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period.  Diluted earnings per share is computed similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.  There are no such additional common shares available for dilution purposes as of September 30, 2012 and June 30, 2012.

 

 

New Accounting Pronouncements

 

In December 2011, the FASB issued ASU No.2011-12, deferral of the effective date for Amendments to the presentation of reclassifications of items out of accumulated other comprehensive income in ASU 2011-05. ASU2 2011-12 defers the requirement that companies present reclassification adjustments for each component of accumulated other comprehensive income (“AOCI”) in both net income and other comprehensive income (“OCI”) on the face of financial statements. All other requirements in ASU No. 2011-05 are not affected by ASU 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this standard has not had a material impact on the Company’s consolidated financial position and results of operations.

 

In July 2012, the FASB issued ASU 2012-02, “Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment.” This ASU simplifies how entities test indefinite-lived intangible assets for impairment, which improves consistency in impairment testing requirements among long-lived asset categories. These amended standards permit an assessment of qualitative factors to determine whether it is more likely than not that the fair value of indefinite-lived intangible assets is less than their carrying value. For assets in which this assessment concludes it is more likely than not that the fair value is more than its carrying value, these amended standards eliminate the requirement to perform quantitative impairment testing as outlined in the previously issued standards. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012.  Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet07.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
2 Related Party Transactions
3 Months Ended
Sep. 30, 2012
Notes
2 Related Party Transactions

2             RELATED PARTY TRANSACTIONS

 

As of September 30, 2012, the Company has an aggregate of $36,843 in “due to related party” for expenses paid by a related party on behalf of the Company.  This is unsecured, bears no interest and is due on demand.  

 

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet08.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
3 Property and Equipment, Net
3 Months Ended
Sep. 30, 2012
Notes
3 Property and Equipment, Net

3             PROPERTY AND EQUIPMENT, NET

 

Property and equipment, net, consists of the following:

 

September 30,2012

June 30,2012

Buildings

$

430,689

$

431,785

Office equipment

17,836

17,881

`

448,525

449,666

Less: accumulated depreciation

50,894

 

46,189

 

Property, plant and equipment, net

$

397,631

$

403,477

 

 

Depreciation expense charged to operations was $4,827 and $4,549 for the three months ended September 30, 2012 and 2011, respectively.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet09.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
4 Intangible Assets, Net
3 Months Ended
Sep. 30, 2012
Notes
4 Intangible Assets, Net

4              INTANGIBLE ASSETS, NET

 

Intangible assets, net, consists of the following:

 

 

 

September 30,2012

 

 

June 30,2012

 

 

 

 

 

 

 

 

Land use right

 

$

200,126

 

 

$

200,636

 

Software

 

 

2,996

 

 

 

3,004

 

  `

 

 

203,122

 

 

 

203,640

 

 

 

 

 

 

 

 

 

 

Less: accumulated amortization

 

 

15,990

 

 

 

15,028

 

 

 

 

 

 

 

 

 

 

Intangible assets, net

 

$

187,132

 

 

$

188,612

 

 

Amortization expense charged to operations was $1,002 and $1,359 for the three months ended September 30, 2012 and 2011, respectively.

 

The future minimum amortization expense charged to operations for the coming years is as follows:

 

Years ending June 30:

 

 

 

2013

 

 

3,002

 

2014

 

 

4,003

 

2015

 

 

4,003

 

2016

 

 

4,003

 

2017

 

 

4,003

 

Remaining operating lease payments

 

 

168,126

 

Total future minimum operating lease payments

 

$

187,140

 

 

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet10.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
5 Accrued Expenses and Other Current Liabilities
3 Months Ended
Sep. 30, 2012
Notes
5 Accrued Expenses and Other Current Liabilities

5             ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

 

Accrued expenses and other current liabilities consist of the following:

 

 

 

September 30, 2012

 

 

June 30, 2012

 

 

 

 

 

 

 

 

Accrued payroll

 

$

17,860

 

 

$

16,445

 

Taxes payable

 

 

 714,787

 

 

 

 550,028

 

Accrued expenses

 

 

26,964

 

 

 

24,905

 

Other payables

 

 

 2,306

 

 

 

 4,292

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities

 

$

761,647

 

 

$

595,669

 

 

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet11.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
6 Income Tax
3 Months Ended
Sep. 30, 2012
Notes
6 Income Tax

6              INCOME TAX

 

Taxes payable consisted of the following:

 

September 30,2012

June 30,2012

Income tax payable

$

640,766

$

493,394

Property and land taxes payable

7,518

7,538

Business taxes payable

62,230

45,946

City and supplement taxes

4,273

3,150

`

714,787

  550,028

 

 

The provision for income taxes is summarized as follows:

 

Three months ended

The year ended

September 30,2012

June 30,2012

Current provision

$

641,954

$

1,866,502

Deferred provision

-

80,203

Total

$

641,954

$

1,946,705

 

 

The following table reconciles the U.S. statutory rates to the Company’s effective tax rate:

 

 

Three months ended

The year ended

September 30,2012

June 30,2012

U.S. statutory rates

35%

35%

Foreign income not recognized in the U.S.

-35%

-35%

PRC statutory rates

25%

25%

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet12.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
7 Commitments and Contingencies
3 Months Ended
Sep. 30, 2012
Notes
7 Commitments and Contingencies

7              COMMITMENTS AND CONTINGENCIES

 

(a)        Operating lease commitment

 

The Company leases buildings under non-cancelable operating lease agreements. Based on the current rental lease agreements, the future minimum rental payments required for the coming years are as follows:

 

Years ending June 30:

 

 

 

2013

 

 

378

 

 

 

 

 

 

Remaining operating lease payments

 

 

-

 

Total future minimum operating lease payments

 

$

378

 

 

(b)        Vulnerability due to Operations in PRC

 

The Company’s operations may be adversely affected by significant political, economic and social uncertainties in the PRC.  Although the PRC government has been pursuing economic reform policies for more than twenty years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRCs political, economic and social conditions.  There is also no guarantee that the PRC government’s pursuit of economic reforms will be consistent or effective.

 

Substantially all of the Company’s business is transacted in RMB, which is not freely convertible.  The Peoples Bank of China or other banks are authorized to buy and sell foreign currencies at the exchange rates quoted by the Peoples Bank of China.  Approval of foreign currency payments by the Peoples Bank of China or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts.

 

Since the Company has its operations in the PRC, all of its revenues will be settled in RMB, not U.S. Dollars. Due to certain restrictions on currency exchanges that exist in the PRC, the Company’s ability to use revenue generated in RMB to pay any dividend payments to its shareholders outside of China may be limited.

 

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet13.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
1 Business Description and Significant Accounting Policies: Basis of Presentation (Policies)
3 Months Ended
Sep. 30, 2012
Policies
Basis of Presentation

 Basis of presentation

 

The unaudited consolidated financial statements presented herein include the accounts of Jinzanghuang Tibet Pharmaceuticals, Inc., its wholly owned subsidiary (BTC) and variable interest entity (Leling JZH).  All inter-company transactions and balances among the Company and its subsidiaries are eliminated upon consolidation.  In the opinion of management, all adjustments and normal recurring accruals considered necessary for a fair statement of the results for the period have been included.

 

The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and are presented in U.S. Dollars.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet14.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
1 Business Description and Significant Accounting Policies: Uses of Estimates in The Preparation of Financial Statements (Policies)
3 Months Ended
Sep. 30, 2012
Policies
Uses of Estimates in The Preparation of Financial Statements

Uses of estimates in the preparation of financial statements

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during each reporting period.  Actual results could differ from those estimates.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet15.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
1 Business Description and Significant Accounting Policies: Variable Interest Entity (Policies)
3 Months Ended
Sep. 30, 2012
Policies
Variable Interest Entity

Variable Interest Entity

 

Effective January 1, 2009, the Consolidation Topic ASC 810-10-45-16 revised the accounting treatment for non-controlling minority interests of partially-owned subsidiaries.  Non-controlling minority interests represent the allocation of earnings to the VIE owners who are not at risk for the majority of losses of the VIE, which have been accounted for by using the consolidation method of accounting.

 

The accounts of Leling JZH have been consolidated with the accounts of the Company because Leling JZH is a variable interest entity with respect to Beijing Taibodekang, which is a wholly-owned subsidiary of the Company.  Beijing Taibodekang has a contractual obligation to provide management services to Leling JZH, and the management of the operations of Leling JZH is carried out by Company personnel in fulfillment of that obligation.  Beijing Taibodekang also has a contractual obligation to reimburse Leling JZH for any losses incurred as a result of the operations of Leling JZG, and the Company’s principal shareholders caused funds to be contributed to Leling JZG during the years ended June 30, 2010 and 2009 in satisfaction of that obligation.  The carrying amount and classification of Leling JZH’s assets and liabilities included in the Condensed Consolidated Balance Sheets are as follows:

 

 

 

September30, 2012

 

 

June 30, 2012

 

Total current assets

 

$

13,077,095

 

 

$

9,418,343

 

Total assets

 

 

12,492,331

 

 

 

10,010,432

 

Total current liabilities

 

 

1,756,402

 

 

 

589,677

 

Total liabilities

 

 

1,756,402

 

 

 

589,677

 

 

The amounts shown in the above table as of September 30, 2012 include $1,000,000 of intercompany payables  that have been eliminated in consolidating Leling JZH with the Company.

 

The Consulting Agreement between Leling Jinzanghuang and Beijing Taibodekang requires that, in payment for the consulting services provided by Beijing Taibodekang, Leling Jinzanghuang will pay fees to Beijing Taibodekang equal to:

 

 

·

10,000 RMB per month, plus

 

·

95% of the annual gross profit of Leling Jinzanghuang.

 

The Consulting Agreement also provides, however, that Beijing Taibodekang will reimburse Leling Jinzanghuang for the amount of any net loss incurred by Leling Jinzanghuang during the period when it is managed by Beijing Taibodekang.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet16.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
1 Business Description and Significant Accounting Policies: Revenue Recognition (Policies)
3 Months Ended
Sep. 30, 2012
Policies
Revenue Recognition

Revenue recognition

 

The Company recognizes revenue from provision of services to sauna stores based on units of the sauna store’s product usage, which is the contractual method of determining the right to revenue. The revenue is recognized at 35% or 40% of sauna stores’ revenue from sale of Shandong JZH products. The percentage is depending on the location of the sauna store.  Payments are made to the Company directly from the sauna stores a month after the end of the month in which the sales occurred.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet17.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
1 Business Description and Significant Accounting Policies: Cash (Policies)
3 Months Ended
Sep. 30, 2012
Policies
Cash

Cash

 

The Company maintains cash with financial institutions in the People’s Republic of China (“PRC”) which are not insured or otherwise protected.  Should any of these institutions holding the Company’s cash become insolvent, or if the Company is unable to withdraw funds for any reason, the Company could lose the cash on deposit with that institution.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet18.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
1 Business Description and Significant Accounting Policies: Accounts Receivable (Policies)
3 Months Ended
Sep. 30, 2012
Policies
Accounts Receivable

Accounts Receivable

 

Accounts receivable represent receivables from customers. Reserves for bad debts are based on a combination of current sales, historical charge-offs and specific accounts identified as high risk. Uncollectible accounts receivable are charged against the allowance for doubtful accounts when all reasonable efforts to collect the amounts due have been exhausted. Such allowances, if any, would be recorded in the period the impairment is identified. There is no bad debt expense recorded during the three months ended September 30, 2012 or the year ended June 30, 2012. The balance of allowance for bad debts was $0 and $0 ended September 30, 2012 and June 30, 2012, respectively. The accounts receivable balance as of September 30, 2012 is in compliance with the Company’s credit terms.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet19.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
1 Business Description and Significant Accounting Policies: Property and Equipment (Policies)
3 Months Ended
Sep. 30, 2012
Policies
Property and Equipment

Property and equipment

 

Property and equipment are recorded at cost. Depreciation is provided in amounts sufficient to amortize the cost of the related assets over their useful lives using the straight line method.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet20.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
1 Business Description and Significant Accounting Policies: Long-lived Assets and Other Acquired Intangible Assets (Policies)
3 Months Ended
Sep. 30, 2012
Policies
Long-lived Assets and Other Acquired Intangible Assets

Long-Lived Assets and Other Acquired Intangible Assets

 

The Company reviews property and equipment and certain identifiable intangibles for impairment. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by comparison of their carrying amounts to future undiscounted cash flows the assets are expected to generate. If property and equipment and certain identifiable intangibles are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the assets exceeds its fair market value. The Company did not record any impairments during the three months ended September 30, 2012

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet21.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
1 Business Description and Significant Accounting Policies: Income Tax (Policies)
3 Months Ended
Sep. 30, 2012
Policies
Income Tax

Income tax

 

The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires the Company to use the assets and liability method of accounting for income taxes. Under the assets and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between financial statement carrying amounts and the tax bases of existing assets and liabilities and operating loss and tax credit carry forward. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized.

 

ASC 740-10, Accounting for Uncertainty in Income Taxes, defines uncertainty in income taxes, and the evaluation of a tax position is a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met.

 

Enterprise income tax

 

Under the Provisional Regulations of PRC Concerning Income Tax on Enterprises promulgated by the PRC, income tax is payable by enterprises at a rate of 25% of their taxable income.

 

Business Taxes and Sales-related Taxes

 

Pursuant to the tax law and regulations of PRC, Leling JZH is obligated to pay 5% of revenue for business taxes, and 7% and 4% (5% effective in May, 2011) of the annual business taxes paid as tax on maintaining and building cities and education additional fee, both of which belong to sales-related taxes. Sales-related taxes are recorded when revenue is recognized. For the three months ended September 30, 2012 and 2011, business taxes and sales-related taxes were $186,960 and $129,312, respectively.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet22.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
1 Business Description and Significant Accounting Policies: Stock-based Compensation (Policies)
3 Months Ended
Sep. 30, 2012
Policies
Stock-based Compensation

Stock-based compensation

 

The Company records stock-based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expense related to the fair value of its share-based compensation. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet23.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
1 Business Description and Significant Accounting Policies: Currency Translation (Policies)
3 Months Ended
Sep. 30, 2012
Policies
Currency Translation

Currency translation

 

Since the Company operates primarily in the PRC, the Company’s functional currency is the Chinese Yuan (“RMB”).  The Company’s financial statements have been translated into the reporting currency, the United States Dollar (“USD”). Assets and liabilities of the Company are translated at the prevailing exchange rate at each reporting period end date. Contributed capital accounts are translated using the historical rate of exchange when capital is injected. Income and expense accounts are translated at the average rate of exchange during the reporting period. Translation adjustments resulting from translation of these condensed consolidated financial statements are reflected as accumulated other comprehensive income in stockholders’ equity.

 

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet24.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
1 Business Description and Significant Accounting Policies: Fair Value of Financial Instruments (Policies)
3 Months Ended
Sep. 30, 2012
Policies
Fair Value of Financial Instruments

Fair value of financial instruments

 

The Company adopted the provisions of Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

 

Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

 

Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other then quoted prices that are observable, and inputs derived from or corroborated by observable market data.

 

Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.

 

The carrying amounts reported in the consolidated balance sheets for cash, due to related party, and accrued expenses, approximate their fair market value based on the short-term maturity of these instruments. The Company did not identify any other assets or liabilities that are required to be presented in the consolidated balance sheets at fair value in accordance with ASC 820.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet25.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
1 Business Description and Significant Accounting Policies: Earnings Per Share (Policies)
3 Months Ended
Sep. 30, 2012
Policies
Earnings Per Share

Earnings per share

 

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period.  Diluted earnings per share is computed similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.  There are no such additional common shares available for dilution purposes as of September 30, 2012 and June 30, 2012.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet26.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
1 Business Description and Significant Accounting Policies: New Accounting Pronouncements (Policies)
3 Months Ended
Sep. 30, 2012
Policies
New Accounting Pronouncements

New Accounting Pronouncements

 

In December 2011, the FASB issued ASU No.2011-12, deferral of the effective date for Amendments to the presentation of reclassifications of items out of accumulated other comprehensive income in ASU 2011-05. ASU2 2011-12 defers the requirement that companies present reclassification adjustments for each component of accumulated other comprehensive income (“AOCI”) in both net income and other comprehensive income (“OCI”) on the face of financial statements. All other requirements in ASU No. 2011-05 are not affected by ASU 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this standard has not had a material impact on the Company’s consolidated financial position and results of operations.

 

In July 2012, the FASB issued ASU 2012-02, “Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment.” This ASU simplifies how entities test indefinite-lived intangible assets for impairment, which improves consistency in impairment testing requirements among long-lived asset categories. These amended standards permit an assessment of qualitative factors to determine whether it is more likely than not that the fair value of indefinite-lived intangible assets is less than their carrying value. For assets in which this assessment concludes it is more likely than not that the fair value is more than its carrying value, these amended standards eliminate the requirement to perform quantitative impairment testing as outlined in the previously issued standards. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012.  Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations.

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet27.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
3 Property and Equipment, Net: Schedule of Property Plant and Equipment (Tables)
3 Months Ended
Sep. 30, 2012
Tables/Schedules
Schedule of Property Plant and Equipment

 

September 30,2012

June 30,2012

Buildings

$

430,689

$

431,785

Office equipment

17,836

17,881

`

448,525

449,666

Less: accumulated depreciation

50,894

 

46,189

 

Property, plant and equipment, net

$

397,631

$

403,477

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet28.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
4 Intangible Assets, Net: Schedule of Intangible Assets and Goodwill (Tables)
3 Months Ended
Sep. 30, 2012
Tables/Schedules
Schedule of Intangible Assets and Goodwill

 

 

 

September 30,2012

 

 

June 30,2012

 

 

 

 

 

 

 

 

Land use right

 

$

200,126

 

 

$

200,636

 

Software

 

 

2,996

 

 

 

3,004

 

  `

 

 

203,122

 

 

 

203,640

 

 

 

 

 

 

 

 

 

 

Less: accumulated amortization

 

 

15,990

 

 

 

15,028

 

 

 

 

 

 

 

 

 

 

Intangible assets, net

 

$

187,132

 

 

$

188,612

 

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet29.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
4 Intangible Assets, Net: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Tables)
3 Months Ended
Sep. 30, 2012
Tables/Schedules
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

 

Years ending June 30:

 

 

 

2013

 

 

3,002

 

2014

 

 

4,003

 

2015

 

 

4,003

 

2016

 

 

4,003

 

2017

 

 

4,003

 

Remaining operating lease payments

 

 

168,126

 

Total future minimum operating lease payments

 

$

187,140

 

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet30.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
5 Accrued Expenses and Other Current Liabilities: Schedule of accrued expenses (Tables)
3 Months Ended
Sep. 30, 2012
Tables/Schedules
Schedule of accrued expenses

 

 

 

September 30, 2012

 

 

June 30, 2012

 

 

 

 

 

 

 

 

Accrued payroll

 

$

17,860

 

 

$

16,445

 

Taxes payable

 

 

 714,787

 

 

 

 550,028

 

Accrued expenses

 

 

26,964

 

 

 

24,905

 

Other payables

 

 

 2,306

 

 

 

 4,292

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities

 

$

761,647

 

 

$

595,669

 

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet31.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
6 Income Tax: Schedule of taxes payable (Tables)
3 Months Ended
Sep. 30, 2012
Tables/Schedules
Schedule of taxes payable

 

September 30,2012

June 30,2012

Income tax payable

$

640,766

$

493,394

Property and land taxes payable

7,518

7,538

Business taxes payable

62,230

45,946

City and supplement taxes

4,273

3,150

`

714,787

  550,028

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet32.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
6 Income Tax: Schedule of income tax provision (Tables)
3 Months Ended
Sep. 30, 2012
Tables/Schedules
Schedule of income tax provision

 

Three months ended

The year ended

September 30,2012

June 30,2012

Current provision

$

641,954

$

1,866,502

Deferred provision

-

80,203

Total

$

641,954

$

1,946,705

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet33.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
6 Income Tax: Schedule of reconciliation of effective tax rate (Tables)
3 Months Ended
Sep. 30, 2012
Tables/Schedules
Schedule of reconciliation of effective tax rate

 

Three months ended

The year ended

September 30,2012

June 30,2012

U.S. statutory rates

35%

35%

Foreign income not recognized in the U.S.

-35%

-35%

PRC statutory rates

25%

25%

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet34.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
7 Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Tables)
3 Months Ended
Sep. 30, 2012
Tables/Schedules
Schedule of Future Minimum Rental Payments for Operating Leases

 

Years ending June 30:

 

 

 

2013

 

 

378

 

 

 

 

 

 

Remaining operating lease payments

 

 

-

 

Total future minimum operating lease payments

 

$

378

 

------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet35.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
2 Related Party Transactions (Details) (USD $)
Sep. 30, 2012
Jun. 30, 2012
Due to related party $ 36,843 $ 36,630
------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet36.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
3 Property and Equipment, Net: Schedule of Property Plant and Equipment (Details) (USD $)
Sep. 30, 2012
Jun. 30, 2012
Buildings and Improvements, Gross $ 430,689 $ 431,785
Office Equipment 17,836 17,881
Property, Plant and Equipment, Gross 448,525 449,666
Property, Plant and Equipment, Other, Accumulated Depreciation 50,894 46,189
Property and equipment, net of accumulated depreciation $ 397,631 $ 403,477
------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet37.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
3 Property and Equipment, Net (Details) (USD $)
3 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Depreciation Expense $ 4,827 $ 4,549
------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet38.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
4 Intangible Assets, Net: Schedule of Intangible Assets and Goodwill (Details) (USD $)
Sep. 30, 2012
Jun. 30, 2012
Land Use Right $ 200,126 $ 200,636
Software 2,996 3,004
Finite-Lived Intangible Assets, Gross 203,122 203,640
Finite-Lived Intangible Assets, Accumulated Amortization 15,990 15,028
Intangible assets, net of accumulated amortization $ 187,132 $ 188,612
------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet39.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
4 Intangible Assets, Net: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) (USD $)
3 Months Ended
Sep. 30, 2012
Future Amortization Expense, Year One $ 3,002
Future Amortization Expense, Year Two 4,003
Future Amortization Expense, Year Three 4,003
Future Amortization Expense, Year Four 4,003
Future Amortization Expense, Year Five 4,003
Future Amortization Expense, after Year Five 168,126
Total future minimum operating lease payments $ 187,140
------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet40.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
5 Accrued Expenses and Other Current Liabilities: Schedule of accrued expenses (Details) (USD $)
Sep. 30, 2012
Jun. 30, 2012
Accrued Payroll $ 17,860 $ 16,445
Taxes Payable 714,787 550,028
Accrued expenses 26,964 24,905
Other Payables 2,306 4,292
Accrued expenses and other current liabilities $ 761,647 $ 595,669
------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet41.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
6 Income Tax: Schedule of taxes payable (Details) (USD $)
Sep. 30, 2012
Jun. 30, 2012
Income tax payable $ 640,766 $ 493,394
Property and land taxes payable 7,518 7,538
Business taxes payable 62,230 45,946
City and supplement taxes 4,273 3,150
Taxes Payable $ 714,787 $ 550,028
------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet42.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
6 Income Tax: Schedule of income tax provision (Details) (USD $)
3 Months Ended 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Jun. 30, 2012
Current income tax provision $ 1,866,502 $ 641,954
Deferred income tax provision 80,203
INCOME TAX $ 641,954 $ 475,566 $ 641,954
------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet43.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
6 Income Tax: Schedule of reconciliation of effective tax rate (Details)
3 Months Ended 12 Months Ended
Sep. 30, 2012
Jun. 30, 2012
U.S. Statutory rates 35.00% 35.00%
Foreign income not recognized in the U.S. (35.00%) (35.00%)
PRC statutory rates 25.00% 25.00%
------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/Sheet44.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
7 Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Details) (USD $)
Sep. 30, 2012
Operating Leases, Future Minimum Payments Due, Next Twelve Months $ 378
------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051 Content-Location: file:///C:/e43009a2_99ac_4ae1_bba4_7014dcf23051/Worksheets/filelist.xml Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" ------=_NextPart_e43009a2_99ac_4ae1_bba4_7014dcf23051--