XML 62 R30.htm IDEA: XBRL DOCUMENT v2.4.0.6
Condensed Financial Information of the Parent Company
 12 Months Ended
Dec. 31, 2012
Condensed Financial Information Of Parent Company [Abstract]  
Condensed Financial Information of the Parent Company
(24) Condensed Financial Information of the Parent Company
 
The condensed financial statements of Orient Paper Inc. (“ONP”, the “parent company”) have been prepared in accordance with accounting principles generally accepted in the United States of America. Under the PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer certain of their net assets to the parent company in the form of dividend payments, loans or advances. The amounts restricted include paid-in capital, capital surplus and statutory reserves, as determined pursuant to PRC generally accepted accounting principles, totaling $50,953,325 and $50,502,923 as of December 31, 2012 and 2011, respectively.
  
The following represents condensed unconsolidated financial information of the parent company only:
 
CONDENSED BALANCE SHEETS
 
   
December 31,
    
December 31,
  
   
2012
    
2011
  
ASSETS
          
                 
Current Assets
                
Cash and cash equivalents
  
$
-
    
$
145,386
  
Prepayments and other current assets
    
62,797
      
79,482
  
Due from inter-companies
    
-
      
4,000,000
  
                 
Total current assets
    
62,797
      
4,224,868
  
                 
Investment in subsidiaries
    
143,597,251
      
126,637,592
  
                 
Total Assets
  
$
143,660,048
    
$
130,862,460
  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
          
Current Liabilities
                
Bank overdraft
  
$
96
    
$
-
  
Inter-company payable
    
736,378
      
3,008,524
  
Loan from shareholder
    
-
      
200,000
  
Accrued expenses
    
58,000
      
58,000
  
Insurance premium payable
    
56,773
      
-
  
Accrued payroll and benefit
    
40,000
      
70,493
  
                 
Total current liabilities
    
891,247
      
3,337,017
  
                 
Total liabilities
    
891,247
      
3,337,017
  
                 
Total stockholders' equity
    
142,768,801
      
127,525,443
  
                 
Total Liabilities and Stockholders' Equity
  
$
143,660,048
    
$
130,862,460
  
 
CONDENSED STATEMENTS OF INCOME
 
   
Year Ended
  
   
December 31,
  
   
2012
    
2011
    
2010
  
                   
Operating expenses
                        
Selling, General and Administrative Expenses
  
$
1,397,943
    
$
1,841,171
    
$
2,304,222
  
Loss from Operations
    
(1,397,943
)
    
(1,841,171
)
    
(2,304,222
)
Equity in earnings of unconsolidated subsidiaries
    
16,074,789
      
23,489,518
      
17,848,627
  
Other Income (Expense):
    
(4,183
)
    
317
      
7,131
  
Income before Income Taxes
    
14,672,663
      
21,648,664
      
15,551,536
  
Provision for Income Taxes
    
-
      
-
      
-
  
Net Income
  
$
14,672,663
    
$
21,648,664
    
$
15,551,536
  
  
CONDENSED STATEMENTS OF CASH FLOWS
 
   
Year Ended
  
   
December 31,
  
   
2012
    
2011
    
2010
  
Net Cash (Used in)/ Provided by Operating Activities
  
$
(145,482
)
  
$
75,537
    
$
(1,491,808
)
                         
Net Cash Used in Investing Activities
    
-
      
-
      
(25,000,000
)
                         
Net Cash Provided by Financing Activities
    
-
      
-
      
26,561,657
  
                         
Net (Decrease)/ Increase in Cash and Cash Equivalents
    
(145,482
)
    
75,537
      
69,849
  
                         
Cash and Cash Equivalents - Beginning of Period
    
145,386
      
69,849
      
-
  
                         
Cash and Cash Equivalents - End of Period
  
$
(96
)
  
$
145,386
    
$
69,849
  
 
BASIS OF PRESENTATION
 
The condensed financial information has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company has used equity method to account for its investments in the subsidiaries.