NOTE 18 – RESTRICTED NET ASSETS

The Company’s operations are primarily conducted through its PRC subsidiaries, which can only pay dividends out of their retained earnings determined in accordance with the accounting standards and regulations in the PRC and after it has met the PRC requirements for appropriation to statutory reserves. In addition, the Company’s businesses and assets are primarily denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. These currency exchange control procedures imposed by the PRC government authorities may restrict the ability of the Company’s PRC subsidiaries to transfer their net assets to the Parent Company through loans, advances or cash dividends.

The Company’s PRC subsidiaries net assets as of June 30, 2016 and 2015 exceeded 25% of the Company’s consolidated net assets. Accordingly, condensed Parent Company financial statements have been prepared in accordance with Rule 5-04 and Rule 12-04 of SEC Regulation S-X, and are as follows.

Parent Company Financial Statements

PARENT COMPANY FINANCIAL INFORMATION OF CHINA GREEN AGRICULTURE, INC.

Condensed Balance Sheets	As of June 30,
	2016			2015
ASSETS
Current Assets:
Cash and cash equivalents	$	167,495		$	306,376
Other current assets		70			2,977
Total Current Assets		167,565			309,353

Long-term equity investment		376,321,912			377,245,446
Total long term assets		376,321,912			377,245,446
Total Assets	$	376,489,477		$	377,554,799

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	214,520		$	214,520
Amount due to related parties		1,388,743			888,743
Other payables and accrued expenses		4,401,882			3,502,062
Total Current Liabilities		6,005,145			4,605,325

Stockholders' Equity
Common stock, $.001 par value, 115,197,165 shares authorized, 37,648,605 and 35,905,198, shares issued and outstanding as of June 30, 2016 and 2015, respectively		37,648			35,905
Additional paid in capital		127,593,932			123,360,384
Accumulated other comprehensive income		(5,696,388	)		25,708,238
Retained earnings		248,549,140			223,844,947
Total Stockholders' Equity		370,484,332			372,949,474
Total Liabilities and Stockholders' Equity	$	376,489,477		$	377,554,799

Condensed Statements of Operations	Year ended June 30,
	2016		2015
Revenue	$	-	$	-
General and administrative expenses		5,768,770		6,560,980
Interest income		30		200
Equity investment in subsidiaries		30,472,933		38,005,906
Net income	$	24,704,193	$	31,445,126

Condensed Statements of Cash Flows	Year Ended June 30,
	2016			2015
Net cash provided by (used in) operating activities	$	(138,881	)	$	188,437
Net cash provided by investing activities		-			-
Net cash provided by financing activities		-			-
Cash and cash equivalents, beginning balance		306,376			117,939
Cash and cash equivalents, ending balance	$	167,495		$	306,376

Notes to Condensed Parent Company Financial Information

As of June 30, 2016 and 2015, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except as separately disclosed in the Consolidated Financial Statements, if any. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.