XML 46 R28.htm IDEA: XBRL DOCUMENT v2.4.0.6
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Sep. 30, 2012
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]

21.         COMMITMENTS AND CONTINGENCIES

 

(a)       Capital commitments

 

As of September 30, 2011 and 2012, capital commitments for the purchase of long-term assets are as follows:

 

    September 30,  
    2011     2012  
    RMB     RMB  
             
Equipment     9       25,615  
Plant and building construction     15,353       8,773  
Technology use right     730       -  
Project of gene modification     5,000       2,000  
                 
      21,092       36,388  

 

(b)      Operating lease

 

The Company acquired certain land use rights for seed development and office premises under non-cancellable leases. Rental expenses under operating leases for the years ended September 30, 2010, 2011 and 2012 were RMB3,614, RMB5,310 and RMB3,773 respectively.

 

As of September 30, 2012, the Company was obligated under operating leases requiring minimum rental as follows:

 

    RMB  
Year ending September 30,      
       
2013     2,685  
2014     1,504  
2015     1,546  
2016     1,316  
2017     900  
Thereafter     8,409  
         
      16,360  

  

(c)        Contingent tax liabilities

 

The Company assesses the contingent tax liabilities that may arise from the Share Exchange Transaction (note 1) and considers such contingent tax liabilities are more-likely-than-not. As of September 30, 2011 and 2012, contingent tax liabilities of RMB39,059 including late payment penalty and interest was included in the income tax payable in the accompanying consolidated balance sheet. The contingent tax was charged to the equity because the assumption of such liabilities by the Company was part of the recapitalization in connection with the Share Exchange Transaction. The Company does not expect to incur tax liabilities at the higher end of the range which were estimated to be in the range RMB39,059 to RMB64,218, based on the information currently available.

 

In 2009, we reviewed the contingent tax position. On September 23, 2010, the Company filed a revised 2005 tax return to the United States Internal Revenue Service, or IRS, to modify and supplement the previously filed tax return regarding this tax liability. The IRS has not responded to the tax filing as of the date of the filing of this report. While the timeline for the IRS to question on the tax return is generally three years, this matter may take a prolonged period of time to resolve depending on the return time for IRS and the necessity, if any, of future appeals or re-evaluation. No material changes have occurred as of September 30, 2012.