INVENTORIES

12 Months Ended

Sep. 30, 2011

6.	INVENTORIES

Inventories consist of the following:

	September 30,
	2010			2011
	RMB			RMB

Work in progress and supplies		172,708			111,945
Finished goods		132,492			120,134
Provision		(22,026	)		(21,253	)

		283,174			210,826

As of September 30, 2010 and 2011, goods already delivered to customers but still recorded in finished goods, amounted to RMB10,080 and RMB10,200, respectively. As the Company does not recognize revenue until the selling prices of respective goods have been finalized with the customers, goods delivered to customers as mentioned above will only be transferred to cost of revenues when related revenue is recognized.

Provision for inventories is as below:

	Year ended September 30,
	2009			2010			2011
	RMB			RMB			RMB

Balance at beginning of year		30,818			28,859			22,026
Additions		7,395			14,971			12,978
Write-off		(9,354	)		(21,804	)		(13,751	)

		28,859			22,026			21,253

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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