our results of operations are also affected by the regulations and industry policies related to the microcredit industry in the prc . due to changes in the applicable microcredit lending regulations in jiangsu province , starting august 2012 we elected to charge no more than three times the pboc benchmark rate . prior to august 2012 , we were allowed to charge up to four times the pboc benchmark rate . the decrease in the pboc benchmark rate and the new restriction on the allowable points above pboc benchmark rate have slowed our growth in net interest income . our results of operations are also affected by the provision for loan losses which is a noncash item and represents an assessment of the risk of future loan losses . increases in the allowance for loan losses are achieved through provision for loan losses that are charged against net interest income . although we have generally benefited from china 's economic growth and the policies to encourage lending to farmers and smes , we are also affected by the complexity , uncertainties and changes in the prc regulations governing the micro lending industry . due to prc legal restrictions on foreign equity ownership of and investment in the micro lending sector in china , we rely on contractual arrangements with wujiang luxiang , and its shareholders to conduct most of our current business in china . 45 results of operations year ended december 31 , 2013 as compared to the year ended december 31 , 2012 china commercial credit , inc consolidated statements of income and comprehensive income replace_table_token_4_th 46 the company 's net income for the year ended december 31 , 2013 was $ 7,704,970 , representing a decrease of $ 607,499 or 7 % , from $ 8,312,469 for the year ended december 31 , 2012. the decrease in net income for the year ended december 31 , 2013 was the net effect of the changes in the following components : · an increase in net interest income of $ 310,428 ; · an increase in the provision for loan losses of $ 399,034 ; · an increase in net commission and fees on guarantee services of $ 42,957 ; · an increase in total non-interest expense of $ 733,448 ; and · an decrease in enterprise income tax of $ 326,694 the following paragraphs discuss changes in the components of net income in greater details during the year ended december 31 , 2013 , as compared to the year ended december 31 , 2012. net interest income net interest income is equal to interest income we generated less interest expenses we incurred . the company 's net interest income increased by $ 310,428 , or 3 % to $ 11,301,406 during the year ended december 31 , 2013 , compared to net interest income of $ 10,990,978 for the year ended december 31 , 2012. despite of the decrease of the effective weighted average loan interest rate from 15.22 % for the loan portfolio as of december 31 , 2012 to 14.50 % for the loan portfolio as of december 31 , 2013 , the interest income increased during the year ended december 31 , 2013. this was primarily attributable to the expansion of the company 's loan portfolio by $ 4.4 million from $ 85.8 million as of december 31 , 2012 to $ 90.2 million as of december 31 , 2013. during the year ended december 31 , 2013 , we added 526 new loans and the average loan size was approximately $ 429,000 , as compared to the year ended december 31 , 2012 , when we added 581 new loans with an average loan size of $ 365,000. during the year ended december 31 , 2013 , we continued our effort to reduce related party transactions and accordingly the interest income from the loans to related party was reduced to zero from $ 13,119 during the year ended december 31 , 2012. due to the long-term nature of our restricted deposits with third party banks , we utilized these deposits as term deposits during the year ended december 31 , 2013 which in turn generated interest income on deposits with banks of $ 220,820 as compared to $ 272,782 during the year ended december 31 , 2012. the decrease was mainly due to the close of a restricted deposit account with a bank through which we provided guarantee services to our customers in april 2013. interest expense represents interest incurred on short-term bank loans . the interest incurred on short term bank loans decreased by $ 154,864 , or 12 % . this was mainly caused by decrease of total bank borrowing balance by $ 4.25 million from $ 20.61 million as of december 31 , 2012 to $ 16.36 million as of december 31 , 2013. in both years ended december 31 , 2013 and 2012 , there was no interest expense related to the loans from related parties as a result of our effort to reduce related party transactions . 47 provision for loan losses the company 's provision for loan losses were $ 484,069 and $ 85,035 for the year ended december 31 , 2013 and 2012 , respectively . provision for loan losses increased as our loan receivable balance increased and hence higher risk was assessed . in accordance with the aging schedule , during the year ended december 31 , 2013 , certain loans in category of “ special mention ” were moved down to the “ doubtful ” and “ loss ” categories subject to the higher provision ratio of 50 % and 100 % , respectively . we have initiated several legal proceedings against customers with long over-due outstanding repayment obligations . story_separator_special_tag 2014-02 , intangibles - goodwill and other ( topic 350 ) : accounting for goodwill . this asu permits a private company to subsequently amortize goodwill on a straight-line basis over a period of ten years , or less if the company demonstrates that another useful life is more appropriate . it also permits a private company to apply a simplified impairment model to goodwill . this asu , if elected , should be applied prospectively to goodwill existing as of the beginning of the period of adoption and to new goodwill recognized in annual periods beginning after december 15 , 2014 , and in interim periods within annual periods beginning after december 15 , 2015. early application is permitted , including application to any period for which the entity 's annual or interim financial statements have not been made available for issuance . the adoption of this standard is not expected to have any impact on the company 's financial position . the fasb has issued asu no . 2013-11 , income taxes ( topic 740 ) : presentation of an unrecognized tax benefit when a net operating loss carryforward , a similar tax loss , or a tax credit carryforward exists ( a consensus of the fasb emerging issues task force ) . the amendments in this asu state that an unrecognized tax benefit , or a portion of an unrecognized tax benefit , should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward , a similar tax loss , or a tax credit carryforward , except as follows . to the extent a net operating loss carryforward , a similar tax loss , or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use , and the entity does not intend to use , the deferred tax asset for such purpose , the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets . the amendments in this asu are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2013. for nonpublic entities , the amendments are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2014. early adoption is permitted . the amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date . retrospective application is permitted . the adoption of this standard is not expected to have any impact on the company 's financial position . 54 item 8. financial statements and supplementary data . our consolidated financial statements and notes thereto and the report of marcum bernstein & pinchuk llp , our independent registered public accounting firm , are set forth on pages f-1 through f-26 of this report . item 9. changes in and disagreements with accountants on accounting and financial disclosure . none . item 9a . controls and procedures . evaluation of disclosure controls and procedures based on an evaluation under the supervision and with the participation of the company 's management , the company 's principal executive officer and principal financial officer have concluded that the company 's disclosure controls and procedures as defined in rules 13a-15 ( e ) and 15d-15 ( e ) under the exchange act were [ effective/not effective ] as of december 31 , 2013 to provide reasonable assurance that information required to be disclosed by the company in reports that it files or submits under the exchange act is ( i ) recorded , processed , summarized and reported within the time periods specified in the securities and exchange commission ( “ sec ” ) rules and forms , and ( ii ) accumulated and communicated to the company 's management , including its principal executive officer and principal financial officer , as appropriate , to allow timely decisions regarding required disclosure . inherent limitations over internal controls the company 's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with u.s. generally accepted accounting principles ( “ gaap ” ) . the company 's internal control over financial reporting includes those policies and procedures that : ( i ) pertain to the maintenance of records that , in reasonable detail , accurately and fairly reflect the transactions and dispositions of the company 's assets ; ( ii ) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with gaap , and that the company 's receipts and expenditures are being made only in accordance with authorizations of the company 's management and directors ; and ( iii ) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition , use , or disposition of the company 's assets that could have a material effect on the financial statements . management , including the company 's principal executive officer and principal financial officer , does not expect that the company 's internal controls will prevent or detect all errors and all fraud . a control system , no matter how well designed and operated , can provide only reasonable , not absolute , assurance that the objectives of the control system are met . further , the design of a control system must reflect the fact that there are resource constraints , and the benefits of controls must be considered relative to their costs . because of the inherent limitations in all control systems , no evaluation of internal controls can provide absolute assurance that all control issues and instances of

net cash provided by operating activities during the year ended december 31 , 2013 , we had positive cash flow from operating activities of $ 6,605,544 , a decrease of $ 1,690,394 from the year ended december 31 , 2012 , during which we had cash flow from operating activities of $ 8,295,938. the net income for the year ended december 31 , 2013 decreased by $ 607,499 as compared to the year ended december 31 , 2012. the decrease in net cash provided by operating activities was the result of several factors , including : · an increase in cash flow due to an increase of non-cash items which was primarily due to the increase in the provision for loan losses of $ 399,034 . · a decrease in cash flow due to over provision for financial guarantee increased by $ 302,325 . · a decrease in cash flow due to the increase in changes in net tax receivable by $ 1,414,349. the change in net tax receivable as of december 31 , 2013 was $ 830,477 as compared to the change in net tax receivable as of december 31 , 2012 of $ 583,872. the company was required to prepay enterprise income taxes at a rate of 25 % on a quarterly basis when the applicable tax rate was 12.5 % for the loan business and 25 % for the guarantee business , respectively . within five months after fiscal year end , the company and the tax authority resolved the difference between the taxes paid and taxes due .


 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.
     ```net cash provided by operating activities during the year ended december 31 , 2013 , we had positive cash flow from operating activities of $ 6,605,544 , a decrease of $ 1,690,394 from the year ended december 31 , 2012 , during which we had cash flow from operating activities of $ 8,295,938. the net income for the year ended december 31 , 2013 decreased by $ 607,499 as compared to the year ended december 31 , 2012. the decrease in net cash provided by operating activities was the result of several factors , including : · an increase in cash flow due to an increase of non-cash items which was primarily due to the increase in the provision for loan losses of $ 399,034 . · a decrease in cash flow due to over provision for financial guarantee increased by $ 302,325 . · a decrease in cash flow due to the increase in changes in net tax receivable by $ 1,414,349. the change in net tax receivable as of december 31 , 2013 was $ 830,477 as compared to the change in net tax receivable as of december 31 , 2012 of $ 583,872. the company was required to prepay enterprise income taxes at a rate of 25 % on a quarterly basis when the applicable tax rate was 12.5 % for the loan business and 25 % for the guarantee business , respectively . within five months after fiscal year end , the company and the tax authority resolved the difference between the taxes paid and taxes due .
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 Suspicious Activity Report : our results of operations are also affected by the regulations and industry policies related to the microcredit industry in the prc . due to changes in the applicable microcredit lending regulations in jiangsu province , starting august 2012 we elected to charge no more than three times the pboc benchmark rate . prior to august 2012 , we were allowed to charge up to four times the pboc benchmark rate . the decrease in the pboc benchmark rate and the new restriction on the allowable points above pboc benchmark rate have slowed our growth in net interest income . our results of operations are also affected by the provision for loan losses which is a noncash item and represents an assessment of the risk of future loan losses . increases in the allowance for loan losses are achieved through provision for loan losses that are charged against net interest income . although we have generally benefited from china 's economic growth and the policies to encourage lending to farmers and smes , we are also affected by the complexity , uncertainties and changes in the prc regulations governing the micro lending industry . due to prc legal restrictions on foreign equity ownership of and investment in the micro lending sector in china , we rely on contractual arrangements with wujiang luxiang , and its shareholders to conduct most of our current business in china . 45 results of operations year ended december 31 , 2013 as compared to the year ended december 31 , 2012 china commercial credit , inc consolidated statements of income and comprehensive income replace_table_token_4_th 46 the company 's net income for the year ended december 31 , 2013 was $ 7,704,970 , representing a decrease of $ 607,499 or 7 % , from $ 8,312,469 for the year ended december 31 , 2012. the decrease in net income for the year ended december 31 , 2013 was the net effect of the changes in the following components : · an increase in net interest income of $ 310,428 ; · an increase in the provision for loan losses of $ 399,034 ; · an increase in net commission and fees on guarantee services of $ 42,957 ; · an increase in total non-interest expense of $ 733,448 ; and · an decrease in enterprise income tax of $ 326,694 the following paragraphs discuss changes in the components of net income in greater details during the year ended december 31 , 2013 , as compared to the year ended december 31 , 2012. net interest income net interest income is equal to interest income we generated less interest expenses we incurred . the company 's net interest income increased by $ 310,428 , or 3 % to $ 11,301,406 during the year ended december 31 , 2013 , compared to net interest income of $ 10,990,978 for the year ended december 31 , 2012. despite of the decrease of the effective weighted average loan interest rate from 15.22 % for the loan portfolio as of december 31 , 2012 to 14.50 % for the loan portfolio as of december 31 , 2013 , the interest income increased during the year ended december 31 , 2013. this was primarily attributable to the expansion of the company 's loan portfolio by $ 4.4 million from $ 85.8 million as of december 31 , 2012 to $ 90.2 million as of december 31 , 2013. during the year ended december 31 , 2013 , we added 526 new loans and the average loan size was approximately $ 429,000 , as compared to the year ended december 31 , 2012 , when we added 581 new loans with an average loan size of $ 365,000. during the year ended december 31 , 2013 , we continued our effort to reduce related party transactions and accordingly the interest income from the loans to related party was reduced to zero from $ 13,119 during the year ended december 31 , 2012. due to the long-term nature of our restricted deposits with third party banks , we utilized these deposits as term deposits during the year ended december 31 , 2013 which in turn generated interest income on deposits with banks of $ 220,820 as compared to $ 272,782 during the year ended december 31 , 2012. the decrease was mainly due to the close of a restricted deposit account with a bank through which we provided guarantee services to our customers in april 2013. interest expense represents interest incurred on short-term bank loans . the interest incurred on short term bank loans decreased by $ 154,864 , or 12 % . this was mainly caused by decrease of total bank borrowing balance by $ 4.25 million from $ 20.61 million as of december 31 , 2012 to $ 16.36 million as of december 31 , 2013. in both years ended december 31 , 2013 and 2012 , there was no interest expense related to the loans from related parties as a result of our effort to reduce related party transactions . 47 provision for loan losses the company 's provision for loan losses were $ 484,069 and $ 85,035 for the year ended december 31 , 2013 and 2012 , respectively . provision for loan losses increased as our loan receivable balance increased and hence higher risk was assessed . in accordance with the aging schedule , during the year ended december 31 , 2013 , certain loans in category of “ special mention ” were moved down to the “ doubtful ” and “ loss ” categories subject to the higher provision ratio of 50 % and 100 % , respectively . we have initiated several legal proceedings against customers with long over-due outstanding repayment obligations . story_separator_special_tag 2014-02 , intangibles - goodwill and other ( topic 350 ) : accounting for goodwill . this asu permits a private company to subsequently amortize goodwill on a straight-line basis over a period of ten years , or less if the company demonstrates that another useful life is more appropriate . it also permits a private company to apply a simplified impairment model to goodwill . this asu , if elected , should be applied prospectively to goodwill existing as of the beginning of the period of adoption and to new goodwill recognized in annual periods beginning after december 15 , 2014 , and in interim periods within annual periods beginning after december 15 , 2015. early application is permitted , including application to any period for which the entity 's annual or interim financial statements have not been made available for issuance . the adoption of this standard is not expected to have any impact on the company 's financial position . the fasb has issued asu no . 2013-11 , income taxes ( topic 740 ) : presentation of an unrecognized tax benefit when a net operating loss carryforward , a similar tax loss , or a tax credit carryforward exists ( a consensus of the fasb emerging issues task force ) . the amendments in this asu state that an unrecognized tax benefit , or a portion of an unrecognized tax benefit , should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward , a similar tax loss , or a tax credit carryforward , except as follows . to the extent a net operating loss carryforward , a similar tax loss , or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use , and the entity does not intend to use , the deferred tax asset for such purpose , the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets . the amendments in this asu are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2013. for nonpublic entities , the amendments are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2014. early adoption is permitted . the amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date . retrospective application is permitted . the adoption of this standard is not expected to have any impact on the company 's financial position . 54 item 8. financial statements and supplementary data . our consolidated financial statements and notes thereto and the report of marcum bernstein & pinchuk llp , our independent registered public accounting firm , are set forth on pages f-1 through f-26 of this report . item 9. changes in and disagreements with accountants on accounting and financial disclosure . none . item 9a . controls and procedures . evaluation of disclosure controls and procedures based on an evaluation under the supervision and with the participation of the company 's management , the company 's principal executive officer and principal financial officer have concluded that the company 's disclosure controls and procedures as defined in rules 13a-15 ( e ) and 15d-15 ( e ) under the exchange act were [ effective/not effective ] as of december 31 , 2013 to provide reasonable assurance that information required to be disclosed by the company in reports that it files or submits under the exchange act is ( i ) recorded , processed , summarized and reported within the time periods specified in the securities and exchange commission ( “ sec ” ) rules and forms , and ( ii ) accumulated and communicated to the company 's management , including its principal executive officer and principal financial officer , as appropriate , to allow timely decisions regarding required disclosure . inherent limitations over internal controls the company 's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with u.s. generally accepted accounting principles ( “ gaap ” ) . the company 's internal control over financial reporting includes those policies and procedures that : ( i ) pertain to the maintenance of records that , in reasonable detail , accurately and fairly reflect the transactions and dispositions of the company 's assets ; ( ii ) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with gaap , and that the company 's receipts and expenditures are being made only in accordance with authorizations of the company 's management and directors ; and ( iii ) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition , use , or disposition of the company 's assets that could have a material effect on the financial statements . management , including the company 's principal executive officer and principal financial officer , does not expect that the company 's internal controls will prevent or detect all errors and all fraud . a control system , no matter how well designed and operated , can provide only reasonable , not absolute , assurance that the objectives of the control system are met . further , the design of a control system must reflect the fact that there are resource constraints , and the benefits of controls must be considered relative to their costs . because of the inherent limitations in all control systems , no evaluation of internal controls can provide absolute assurance that all control issues and instances of

