CONDENSED PARENT COMPANY FINANCIAL STATEMENTS

12 Months Ended

Mar. 31, 2011

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

SCHEDULE I – CONDENSED PARENT COMPANY FINANCIAL STATEMENTS

BALANCE SHEETS

(Amounts expressed in US Dollars)

	March 31, 2011			March 31, 2010

ASSETS

Cash and cash equivalents	$	63,513		$	-
Investment in and advances to subsidiaries		200,636,597			197,064,930

Total assets	$	200,700,110		$	197,064,930

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accruals	$	2,764,303		$	622,826
Tax payables					163,234
Amount due to a director		1,591,332			-
Convertible note, net of discount of $2,853,094 as of March 31, 2010		-			22,146,906
Derivative liabilities		-			14,797,000
Interest payable		-			3,156,035
Total current liabilities		4,355,635			40,886,001

Commitments and contingencies

Stockholders’ equity:
Preferred stock		-			-
Common stock		4,237			4,237
Additional paid-in capital		83,242,926			82,769,074
Retained earnings		102,377,471			65,441,994
Treasury Stock		(2,741,634	)		(2,000	)
Accumulated other comprehensive income		13,461,475			7,965,624

Total stockholders’ equity		196,344,475		$	156,178,929

Total liabilities and stockholders’ equity	$	200,700,110		$	197,064,930

SCHEDULE I - CONDENSED PARENT COMPANY FINANCIAL STATEMENTS

STATEMENTS OF OPERATIONS

(Amounts expressed in US Dollars)

	Year ended March 31,
	2011			2010			2009

Changes in fair value of derivative liabilities	$	14,797,000		$	(12,137,000	)	$	3,092,000
Other expenses		-			(1,692,745	)		(747,365	)
General and administrative expenses		(7,159,455	)		-			-
Exchange loss, net		(32,185	)		-			-
Interest income		483			-			-
Interest expense		(4,885,468	)		-			-
Tax expenses		-			-			(163,234	)
Total other (expenses)/ income		2,720,375			(13,829,745	)		2,181,401
Equity in earnings of subsidiary		34,215,102			29,477,706			17,785,488
Net income		36,935,477			15,647,961			19,966,889
Other comprehensive income
Foreign currency translation adjustment		5,495,851			228,042			1,034,198
Comprehensive income	$	42,431,328		$	15,876,003		$	21,001,087

Earnings per share:
Basic	$	1.66		$	0.80		$	1.17
Diluted	$	1.02		$	0.80		$	1.17
Shares used in the computation of earnings per share:
Basic		22,241,076			19,605,589			17,080,000
Diluted		23,689,004			19,605,589			17,080,000

SCHEDULE I - CONDENSED PARENT COMPANY FINANCIAL STATEMENTS

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Amounts expressed in US Dollars)

	Common Stock
							Additional							Accumulated		Capital &
				Par value			Paid-in		Retained		Treasury			Comprehensive		Statutory
	Shares			$0.0001			Capital		Earnings		Stock			Income		Reserves		Total
Balance- April 1, 2008		41,461,004		$	4,146		$	7,863,031	$	29,827,144	$	(2,438	)	$	3,677,590	$	3,025,794	$	44,395,267
Net income										19,966,889									19,966,889
Other comprehensive income:
Foreign currency translation adjustments															1,034,198				1,034,198

Balance- March 31, 2009		41,461,004		$	4,146		$	7,863,031	$	49,794,033	$	(2,438	)	$	4,711,788	$	3,025,794	$	65,396,354
Issuance of share capital		5,290,000			529			74,906,043											74,906,572
Net income										15,647,961									15,647,961
Other comprehensive income:
Foreign currency translation adjustments															228,042				228,042
Cancellation of shares		(4,381,004	)		(438	)						438							-
Balance- March 31, 2010		42,370,000		$	4,237		$	82,769,074	$	65,441,994	$	(2,000	)	$	4,939,830	$	3,025,794	$	156,178,929
Acquisition of treasury stock												(2,739,634	)						(2,739,634	)
Fair value of vested options								473,852											473,852
Net income										36,935,477									36,935,477
Other comprehensive income:
Foreign currency translation adjustments															5,495,851				5,495,851

Balance- March 31, 2011		42,370,000		$	4,237		$	83,242,926	$	102,377,471	$	(2,741,634	)	$	10,435,681	$	3,025,794	$	196,344,475

SCHEDULE I - CONDENSED PARENT COMPANY FINANCIAL STATEMENTS

STATEMENTS OF CASH FLOW

(Amounts expressed in US Dollars)

	Year ended March 31,
	2011			2010			2009

CASH FLOW FROM OPERATING ACTIVITIES
Net income	$	36,935,477		$	15,647,961		$	19,966,889
Adjustments for:
Equity in undistributed net income of subsidiary		4,777,278			(27,674,157	)		(20,863,753	)
Changes in fair value of derivative liabilities		(12,755,000	)		12,137,000			-
Gain on extinguishment of derivative liabilities		(2,042,000	)		-			-
Fair value of vested options		473,852			-			-
Increase/(Decrease) in accruals		(1,177,792	)		(110,804	)		733,630
Increase/(Decrease) in tax payables		-			-			163,234
NET CASH PROVIDED BY OPERATING ACTIVITIES		26,211,815			-			-
CASH FLOWS FROM FINANCING ACTIVITIES
Fair value of vested options		(25,000,000	)		-			-
Proceeds from issuance of share capital		-			74,906,572			-
Advance to a subsidiary		-			(74,906,572	)		-
Increase/(Decrease) in accruals		(2,739,634	)		-			-
Increase/(Decrease) in tax payables		1,591,332			-			-
NET CASH USED IN FINANCING ACTIVITIES		(26,148,302	)		-			-
NET INCREASE IN CASH AND CASH EQUIVALENTS		63,513			-			-

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		-			-			-

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	63,513		$	-		$	-

Supplemental disclosure of non-cash information:
Cash transactions received or paid on behalf by a subsidiary Interest paid	$	5,434,983		$	1,005,182		$	808,219
Capitalisation of amortised convertible note discount and interest	$	-		$	5,891,053		$	4,785,349

These condensed parent company only financial statements should be read in connection with the consolidated financial statements and notes thereto.

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

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CHINA-BIOTICS, INC 10-K