China-Biotics, Inc. Reports Fourth Quarter and Full Year Fiscal 2008 Financi...(4574 Capital and statutory reserves ...)

Capital and statutory reserves 3,025,794 3,025,794

Total stockholders' equity 44,395,267 23,910,007

Total liabilities and stockholders'

equity $ 93,791,526 $ 44,579,844

CHINA-BIOTICS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOW

(Audited, amounts expressed in US Dollars)

FOR THE YEARS ENDED MARCH 31, 2008 AND 2007

CASH FLOWS FROM OPERATING ACTIVITIES 2008 2007

Net income 17,542,244 $10,904,986

Adjustment for:

Gain on disposal of plant and

equipment -- (14,793)

Depreciation 999,148 493,472

Change in fair value of convertible

notes (3,366,000) --

(Increase)/Decrease in restricted

cash -- 748,742

(Increase)/Decrease in accounts

receivable 2,261,918 (2,881,034)

(Increase)/Decrease in inventories (154,189) 65,303

(Increase)/Decrease in prepayment (1,418,658) (352,923)

(Increase)/Decrease in other

receivables 2,732

Increase/(Decrease) in accounts

payable 1,036,521 (451,305)

Increase in income tax and surcharge

tax payable 5,008,143 4,186,868

Income tax paid (2,969,765) (2,373,846)

Increase/(Decrease) in other payables

and accruals, and value added tax

payable
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