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v2.4.0.6
Inventories
12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
Inventories

5.     INVENTORIES

 

Inventories as of December 31, 2011 and December 31, 2010 consist of the following:

 

   December 31,
2011
   December 31,
2010
 
Raw materials  $1,276,462   $653,695 
Low value consumables   0    0 
Finished goods   0    0 
   $1,276,462   $653,695 

 

As of December 31, 2011 and December 31, 2010, 95% of the total inventory is accounted by DAR and 5% for other TCM herbs. And no provision for obsolete inventories was recorded by the Company. The large amount of raw material are due to more TCM business started, larger volume demand of DAR, and higher purchasing than previous year. The company has largely increased its inventory in current year to take advantage of the increasing market demand. Low value consumables are the materials for the process of finished goods. Due to the different outsourcing process adopted for the same period in 2011, the processing party is having all the materials and processing cost in its total fees. The finished goods, Bailing Capsules, had been changed to process by order due to the upgrade of the sales strategy.