XML 81 R12.htm IDEA: XBRL DOCUMENT

Property, Plant and Equipment, net

3 Months Ended

Dec. 31, 2012

Property, Plant and Equipment, net [Text Block]

6 Property, Plant and Equipment, net

Property, plant and equipment as of September 30, 2012 and December 31, 2012 consisted of the following:

		September 30,			December 31,
		2012			2012
Buildings	$	129,998,425		$	131,373,702
Machinery and equipment		171,393,610			173,443,639
Office equipment		2,624,137			2,652,676
Motor vehicles		1,486,337			1,486,007
		305,502,509			308,956,024
Accumulated depreciation		(102,766,292	)		(108,354,523	)
Construction in progress		52,442,114			71,062,739
Prepayment for acquisition of property, plant and equipment		1,717,991			2,718,771
Net book value		256,896,322			274,383,011

Impairment charge		(18,138,427	)		(18,296,777	)

Carrying amount	$	238,757,895		$	256,086,234

(i) Depreciation expense for the three months ended December 31, 2011 and 2012 is included in the condensed interim consolidated statements of operations and comprehensive loss as follows:

		Three months ended December 31,
		2011			2012
Cost of revenues	$	3,708,478		$	3,941,806
Research and development expenses		140,347			136,717
Sales and marketing expenses		43,765			32,582
General and administrative expenses		822,382			806,665
	$	4,714,972		$	4,917,770

(ii) Construction in Progress

Construction in progress mainly comprises capital expenditures for construction of the Company’s new corporate campus, including offices, factories and a Research and Development Test Centre.

For the three months ended December 31, 2011 and 2012, the Company capitalized interest of $124,854 and $709,860 respectively to the cost of construction in progress.

(iii) Pledged Property, Plant and Equipment and Lease Prepayments

As of September 30, 2012 and December 31, 2012, machinery and equipment with net book value of $47,255,604 and $45,722,332 (Note 7), and buildings construction in progress and lease prepayments with a net book value of $112,060,281 and $112,217,714, respectively, were pledged as collateral under certain loan arrangements (Notes 7 and 8).

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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