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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.