for the year ended september 30 , 2012 , we completed and started delivery of 4 new residential buildings with total gfa of 64,141 square meters , compared to 17 new residential buildings with gfa of 160,320 square meters completed in fiscal 2011. currently , most of our real estate projects under construction are high-rise buildings with planned gfa over 709,038 square meters , which generally take about 2- 3 years for the construction , while our completed projects in the past were mostly multi-layer or sub-high-rise buildings and took 1-1.5 years for construction . it indicates that in certain future reporting periods , even if we have pre-sale contracts , we may not have any new construction work completed and delivered to buyers . this is a typical characteristic of our business and the uneven sales revenues from period to period are due in part to the rate at which units are completed and delivered to buyers under the current full accrual method of revenue recognition policy . despite the declining transaction volume and cooling real estate market , housing prices in tier 3 and tier 4 cities and counties have not shown a substantial correction . while short-term market correction is a process that the property sector is bound to undergo , the fundamental demand for residential housing will remain given the rising per capita income , accelerating urbanization and increasing demand for better living environment . for the year ended september 30 , 2012 , our average selling price ( “ asp ” ) for real estate projects ( excluding sales of parking spaces ) located in yang county was approximately $ 417 per square meter , a slight increase of 3 % from the asp of $ 401 per square meter in fiscal 2011. the asp of our hanzhong real estate projects ( excluding sales of parking spaces ) was approximately $ 754 per square meter , an increase of 30.7 % from the asp of $ 577 per square meter in fiscal 2011. this was mainly due to the fact that we sold more commercial properties in hanzhong during the first quarter of fiscal 2012. generally , the asp of commercial units is more than doubled from the asp of residential units . for the year ended september 30 , 2012 , the asp for commercial units located in hanzhong was $ 1,586 , comparing to the asp of $ 543 per square meter for residential units in hanzhong . the asp for our commercial units located in yong county was $ 865 per square meter , comparing to the asp of $ 369 per square meter for residential units in young county . with respect to capital funding requirements , while many property developers must now worry about their debt leverage and working capital needs for debt repayment , in contrast , the company does not have any external debt obligations outstanding at september 30 , 2012 and 2011. the company 's cash flows from pre-sales and sales and , if necessary , shareholder loans should provide financial support for the current development and operations . in order to fully implement our business plan , however , we may need to raise capital in future to sustain our expansion . therefore , we might seek to access the capital markets in both the u.s. and china to obtain the funds we require . at the present time , however , we do not have commitments of funds from any source . market outlook the government 's tightening policies should continue in the first half of 2013 , which may make real estate developers face more difficulties in obtaining land use rights and bank loans . these governmental policies will also negatively affect buyers ' confidence and consumption psychology . meanwhile , with affordable housing construction still underway , it takes time for abundant affordable housing to appear in the market . the company therefore expects the purchase restrictions and price ceiling policies to continue , which however , should have less impact on the company 's products comparing to the real estate market in tier 1 and tier 2 cities . per a china 35 cities housing price report published by e-house china r & d institute ( nyse : ej ) for 2011 , the average housing price to residence income ratio for tier 1 and tier 2 cities are in the range from 10.4 to 15.6 , while the ratio for tier 3 and tier 4 cities generally ranges from 4.2 to 8.0. our customers in tier 3 and tier 4 cities and counties have a constant growth in their disposable income . with lower housing price to family disposable income ratio and increasing urbanization level , there is a growing demand for high quality residential housing . the company expects to continuously focus on developing real estate properties in prime locations of tier 3 and tier 4 cities and counties . 29 we believe the fundamentals underpinning real estate demand remain strong . we intend to remain focused on our existing construction projects in hanzhong city and yang county , deepen our institutional sales network , enhance our cost and operational synergies and improve cash flows and strengthen our balance sheet . in this respect , in late of fiscal 2012 , we began the construction of two large residential projects in hanzhong city and addition high-rise residential buildings in yang county : · oriental pearl garden the project is located in the downtown of hanzhong city . it consists of 12 high-rise residential buildings with commercial shops on the first and second floors with an estimated gfa of 260,000 square meters . the company started construction in the third quarter of fiscal 2012 and expects to complete the whole construction in 2-3years . story_separator_special_tag as a result , income tax expenses for the year ended september 30 , 2012 were $ 283,077. income taxes decreased in fiscal 2012 by 74.5 % as compared to $ 1,108,284 for the year ended september 30 , 2011 as a result of our lower revenue in fiscal 2012. although the possibility exists for reinterpretation of the application of the tax regulations by higher tax authorities in the prc , potentially overturning the decision made by the local tax authority , the company has not experienced any reevaluation of the income taxes for prior years . management believes that the possibility of any reevaluation of income taxes is remote based on the fact that the company has obtained the written tax clearance from the local tax authority . thus , no additional taxes payable have been recorded for the difference between the taxes due based on taxable income calculated according to statutory taxable income method and the taxes due based on the fixed rate method . it is the company 's policy that if such reevaluation of income taxes becomes probable and the amount of additional taxes due can be reasonably estimated , additional taxes shall be recorded in the period in which the amount can be reasonably estimated and shall not be charged retroactively to an earlier period . 34 net income we realized $ 5,176,093 in net income for the year ended september 30 , 2012 , representing a 72.3 % or $ 13,543,845 decrease as compared to $ 18,719,938 for the year ended september 30 , 2011. other comprehensive income we operate primarily in the prc and the functional currency of our operating subsidiary is the chinese renminbi ( ” rmb ” ) . the rmb is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions . no representation is made that the rmb amounts could have been , or could be , converted into usd at the rates used in translation . translation adjustments resulting from this process amounted to $ 862,601 and $ 2,720,280 as of september 30 , 2012 and 2011 , respectively . the balance sheet amounts with the exception of equity at september 30 , 2012 were translated at 6.3190 rmb to 1.00 usd as compared to 6.3952 rmb to 1.00 usd at september 30 , 2011. the equity accounts were stated at their historical rate . the average translation rates applied to the income statements accounts for the periods ended september 30 , 2012 and 2011 were 6.3198 rmb to 1.00 usd and 6.5377 rmb to 1.00 usd , respectively . story_separator_special_tag value : 1 > 36 net cash used in operating activities during the twelve months ended september 30 , 2011 was $ 5,586,447 , consisting of net income of $ 18,719,938 , noncash adjustments of $ 137,059 and net changes in our operating assets and liabilities due to our expanded operating activities , including a decrease in restricted cash of $ 79,523 , an increase in advances to vendors and loans to outside parties of $ 1,403,056 which were made in order to maintain good relationships with the suppliers , an increase in real estate property completed of $ 7,284,509 , an increase in real estate property under development of $ 24,128,313 due to our expansion into multiple phases of the existing real estate projects during the year , increased security deposits for land use rights of $ 6,118,360 , increased accounts payable of $ 6,448,357 due to more progress achieved in multiple real estate projects , increased customer deposits in the amount of $ 7,372,965 which we were able to recognize as revenue when all conditions for revenue recognition were met , increased accrued expenses of $ 1,023,617 due to unpaid sales commissions and staff compensation , and decreased taxes payable of $ 71,217 due to an increase in our net income . the negative cash provided by operating activities is mainly attributable to our significant spending on real estate property under development and deposits for land use rights . net cash used in operating activities for the year ended september 30 , 2012 was $ 7,838,690 compared with a net cash used in operating activities of $ 5,586,447 for the year ended september 30 , 2011 , representing a net increase of $ 2,252,243 compared to fiscal 2011. investing activities net cash flows used in investing activities amounted to $ 0 and $ 490,755 for the years ended september 30 , 2012 and 2011 , respectively . the company purchased a new office floor in fiscal 2011. financing activities net cash flows provided by financing activities amounted to $ 0 for the year ended september 30 , 2012 , which represents $ 3,142,332 proceeds of a short-term loan from a controlling shareholder to finance the land use rights purchase and the company ` s full repayment of such loan during the year . net cash flows provided by financing activities amounted to $ 1,810,000 in the twelve months ended september 30 , 2011 , which was a loan from our major shareholder . off-balance sheet arrangements we do not have any off-balance sheet arrangements . inflation inflation has not had a material impact on our business and we do not expect inflation to have a material impact on our business in the near future . critical accounting policies and management estimates principles of consolidation the accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the united states of america ( `` u.s. gaap `` ) . the unaudited condensed consolidated financial statements include the financial statements of the company and its subsidiaries china hgs investment inc. , shaanxi hanguangsha management and consultation limited company and the variable interest entity shaanxi guangsha investment and development group co. , ltd. ( “ guangsha ” ) . all significant inter-company balances and transactions are eliminated in consolidation . 37 we have continued to

liquidity and capital resources current assets and liabilities our principal need for liquidity and capital resources is to maintain working capital sufficient to support our operations and to make capital expenditures to finance the growth of our business . to date , we have financed our operations primarily through cash flows from operations and borrowings from our principal shareholder . due to the credit tightening policies in china , banks were very slow to approve mortgage lending during the year ended september 30 , 2012. due to slowdown in sales , our total cash and restricted cash balance decreased to approximately $ 2.2 million as compared to $ 9.6 million at septermber 30 , 2011. such balances have been slowly starting to increase after the first quarter of fiscal 2012 from the low point of $ 1.3 million at december 31 , 2011. the people 's bank of china ( “ pboc ” ) posted a statement on its website on february 7 , 2012 , indicating that pboc would ensure that lending support to affordable housing projects and loan demand from first-home families is met . since most of our customers are first-time home buyers and our affordable housing units are in the pre-sales stage , we expect our cash flow will continue to improve in fiscal 2013. as of september 30 , 2012 , the company had approximately $ 7.7 million in working capital , a decrease of $ 18.6 million as compared to $ 26.3 million as of september 30 , 2011. the decrease in working capital was mainly related to a decrease of the current portion of real estate property under development of $ 8.1 million , a decrease of advance to venders of $ 3.4 million , a decrease of loans to outside parties of $ 2.6 million and an increase of other payable of 0.9 million , offsetting by a decrease in accounts payable of $ 3.6 million and an increase in current portion of real estate property development completed of $ 0.6 million .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources current assets and liabilities our principal need for liquidity and capital resources is to maintain working capital sufficient to support our operations and to make capital expenditures to finance the growth of our business . to date , we have financed our operations primarily through cash flows from operations and borrowings from our principal shareholder . due to the credit tightening policies in china , banks were very slow to approve mortgage lending during the year ended september 30 , 2012. due to slowdown in sales , our total cash and restricted cash balance decreased to approximately $ 2.2 million as compared to $ 9.6 million at septermber 30 , 2011. such balances have been slowly starting to increase after the first quarter of fiscal 2012 from the low point of $ 1.3 million at december 31 , 2011. the people 's bank of china ( “ pboc ” ) posted a statement on its website on february 7 , 2012 , indicating that pboc would ensure that lending support to affordable housing projects and loan demand from first-home families is met . since most of our customers are first-time home buyers and our affordable housing units are in the pre-sales stage , we expect our cash flow will continue to improve in fiscal 2013. as of september 30 , 2012 , the company had approximately $ 7.7 million in working capital , a decrease of $ 18.6 million as compared to $ 26.3 million as of september 30 , 2011. the decrease in working capital was mainly related to a decrease of the current portion of real estate property under development of $ 8.1 million , a decrease of advance to venders of $ 3.4 million , a decrease of loans to outside parties of $ 2.6 million and an increase of other payable of 0.9 million , offsetting by a decrease in accounts payable of $ 3.6 million and an increase in current portion of real estate property development completed of $ 0.6 million .
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 Suspicious Activity Report : for the year ended september 30 , 2012 , we completed and started delivery of 4 new residential buildings with total gfa of 64,141 square meters , compared to 17 new residential buildings with gfa of 160,320 square meters completed in fiscal 2011. currently , most of our real estate projects under construction are high-rise buildings with planned gfa over 709,038 square meters , which generally take about 2- 3 years for the construction , while our completed projects in the past were mostly multi-layer or sub-high-rise buildings and took 1-1.5 years for construction . it indicates that in certain future reporting periods , even if we have pre-sale contracts , we may not have any new construction work completed and delivered to buyers . this is a typical characteristic of our business and the uneven sales revenues from period to period are due in part to the rate at which units are completed and delivered to buyers under the current full accrual method of revenue recognition policy . despite the declining transaction volume and cooling real estate market , housing prices in tier 3 and tier 4 cities and counties have not shown a substantial correction . while short-term market correction is a process that the property sector is bound to undergo , the fundamental demand for residential housing will remain given the rising per capita income , accelerating urbanization and increasing demand for better living environment . for the year ended september 30 , 2012 , our average selling price ( “ asp ” ) for real estate projects ( excluding sales of parking spaces ) located in yang county was approximately $ 417 per square meter , a slight increase of 3 % from the asp of $ 401 per square meter in fiscal 2011. the asp of our hanzhong real estate projects ( excluding sales of parking spaces ) was approximately $ 754 per square meter , an increase of 30.7 % from the asp of $ 577 per square meter in fiscal 2011. this was mainly due to the fact that we sold more commercial properties in hanzhong during the first quarter of fiscal 2012. generally , the asp of commercial units is more than doubled from the asp of residential units . for the year ended september 30 , 2012 , the asp for commercial units located in hanzhong was $ 1,586 , comparing to the asp of $ 543 per square meter for residential units in hanzhong . the asp for our commercial units located in yong county was $ 865 per square meter , comparing to the asp of $ 369 per square meter for residential units in young county . with respect to capital funding requirements , while many property developers must now worry about their debt leverage and working capital needs for debt repayment , in contrast , the company does not have any external debt obligations outstanding at september 30 , 2012 and 2011. the company 's cash flows from pre-sales and sales and , if necessary , shareholder loans should provide financial support for the current development and operations . in order to fully implement our business plan , however , we may need to raise capital in future to sustain our expansion . therefore , we might seek to access the capital markets in both the u.s. and china to obtain the funds we require . at the present time , however , we do not have commitments of funds from any source . market outlook the government 's tightening policies should continue in the first half of 2013 , which may make real estate developers face more difficulties in obtaining land use rights and bank loans . these governmental policies will also negatively affect buyers ' confidence and consumption psychology . meanwhile , with affordable housing construction still underway , it takes time for abundant affordable housing to appear in the market . the company therefore expects the purchase restrictions and price ceiling policies to continue , which however , should have less impact on the company 's products comparing to the real estate market in tier 1 and tier 2 cities . per a china 35 cities housing price report published by e-house china r & d institute ( nyse : ej ) for 2011 , the average housing price to residence income ratio for tier 1 and tier 2 cities are in the range from 10.4 to 15.6 , while the ratio for tier 3 and tier 4 cities generally ranges from 4.2 to 8.0. our customers in tier 3 and tier 4 cities and counties have a constant growth in their disposable income . with lower housing price to family disposable income ratio and increasing urbanization level , there is a growing demand for high quality residential housing . the company expects to continuously focus on developing real estate properties in prime locations of tier 3 and tier 4 cities and counties . 29 we believe the fundamentals underpinning real estate demand remain strong . we intend to remain focused on our existing construction projects in hanzhong city and yang county , deepen our institutional sales network , enhance our cost and operational synergies and improve cash flows and strengthen our balance sheet . in this respect , in late of fiscal 2012 , we began the construction of two large residential projects in hanzhong city and addition high-rise residential buildings in yang county : · oriental pearl garden the project is located in the downtown of hanzhong city . it consists of 12 high-rise residential buildings with commercial shops on the first and second floors with an estimated gfa of 260,000 square meters . the company started construction in the third quarter of fiscal 2012 and expects to complete the whole construction in 2-3years . story_separator_special_tag as a result , income tax expenses for the year ended september 30 , 2012 were $ 283,077. income taxes decreased in fiscal 2012 by 74.5 % as compared to $ 1,108,284 for the year ended september 30 , 2011 as a result of our lower revenue in fiscal 2012. although the possibility exists for reinterpretation of the application of the tax regulations by higher tax authorities in the prc , potentially overturning the decision made by the local tax authority , the company has not experienced any reevaluation of the income taxes for prior years . management believes that the possibility of any reevaluation of income taxes is remote based on the fact that the company has obtained the written tax clearance from the local tax authority . thus , no additional taxes payable have been recorded for the difference between the taxes due based on taxable income calculated according to statutory taxable income method and the taxes due based on the fixed rate method . it is the company 's policy that if such reevaluation of income taxes becomes probable and the amount of additional taxes due can be reasonably estimated , additional taxes shall be recorded in the period in which the amount can be reasonably estimated and shall not be charged retroactively to an earlier period . 34 net income we realized $ 5,176,093 in net income for the year ended september 30 , 2012 , representing a 72.3 % or $ 13,543,845 decrease as compared to $ 18,719,938 for the year ended september 30 , 2011. other comprehensive income we operate primarily in the prc and the functional currency of our operating subsidiary is the chinese renminbi ( ” rmb ” ) . the rmb is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions . no representation is made that the rmb amounts could have been , or could be , converted into usd at the rates used in translation . translation adjustments resulting from this process amounted to $ 862,601 and $ 2,720,280 as of september 30 , 2012 and 2011 , respectively . the balance sheet amounts with the exception of equity at september 30 , 2012 were translated at 6.3190 rmb to 1.00 usd as compared to 6.3952 rmb to 1.00 usd at september 30 , 2011. the equity accounts were stated at their historical rate . the average translation rates applied to the income statements accounts for the periods ended september 30 , 2012 and 2011 were 6.3198 rmb to 1.00 usd and 6.5377 rmb to 1.00 usd , respectively . story_separator_special_tag value : 1 > 36 net cash used in operating activities during the twelve months ended september 30 , 2011 was $ 5,586,447 , consisting of net income of $ 18,719,938 , noncash adjustments of $ 137,059 and net changes in our operating assets and liabilities due to our expanded operating activities , including a decrease in restricted cash of $ 79,523 , an increase in advances to vendors and loans to outside parties of $ 1,403,056 which were made in order to maintain good relationships with the suppliers , an increase in real estate property completed of $ 7,284,509 , an increase in real estate property under development of $ 24,128,313 due to our expansion into multiple phases of the existing real estate projects during the year , increased security deposits for land use rights of $ 6,118,360 , increased accounts payable of $ 6,448,357 due to more progress achieved in multiple real estate projects , increased customer deposits in the amount of $ 7,372,965 which we were able to recognize as revenue when all conditions for revenue recognition were met , increased accrued expenses of $ 1,023,617 due to unpaid sales commissions and staff compensation , and decreased taxes payable of $ 71,217 due to an increase in our net income . the negative cash provided by operating activities is mainly attributable to our significant spending on real estate property under development and deposits for land use rights . net cash used in operating activities for the year ended september 30 , 2012 was $ 7,838,690 compared with a net cash used in operating activities of $ 5,586,447 for the year ended september 30 , 2011 , representing a net increase of $ 2,252,243 compared to fiscal 2011. investing activities net cash flows used in investing activities amounted to $ 0 and $ 490,755 for the years ended september 30 , 2012 and 2011 , respectively . the company purchased a new office floor in fiscal 2011. financing activities net cash flows provided by financing activities amounted to $ 0 for the year ended september 30 , 2012 , which represents $ 3,142,332 proceeds of a short-term loan from a controlling shareholder to finance the land use rights purchase and the company ` s full repayment of such loan during the year . net cash flows provided by financing activities amounted to $ 1,810,000 in the twelve months ended september 30 , 2011 , which was a loan from our major shareholder . off-balance sheet arrangements we do not have any off-balance sheet arrangements . inflation inflation has not had a material impact on our business and we do not expect inflation to have a material impact on our business in the near future . critical accounting policies and management estimates principles of consolidation the accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the united states of america ( `` u.s. gaap `` ) . the unaudited condensed consolidated financial statements include the financial statements of the company and its subsidiaries china hgs investment inc. , shaanxi hanguangsha management and consultation limited company and the variable interest entity shaanxi guangsha investment and development group co. , ltd. ( “ guangsha ” ) . all significant inter-company balances and transactions are eliminated in consolidation . 37 we have continued to

