Short-term Bank Loans

3 Months Ended

Dec. 31, 2012

Short-term Bank Loans [Text Block]

7 Short-term Bank Loans

As of September 30, 2012 and December 31, 2012, the Company had several short-term bank loans with aggregate outstanding balances of $151,381,787 and $157,412,855, respectively. The loans were primarily obtained for general working capital, carried interest rates ranging from 6% to 7.216% per annum, and had maturity dates ranging from 6 to 12 months. The loans are guaranteed by Mr. Xiangqian Li, who did not receive any compensation for acting as guarantor. These facilities were also secured by the Company’s assets with the following carrying values:

		September 30,		December 31,
		2012		2012
Inventories (Note 4)	$	23,863,691	$	24,072,024
Machinery and equipment, net (Note 6)		47,255,604		45,722,332
Buildings and construction in progress (Note 6)		90,823,461		90,974,511
Lease prepayments, net (Note 6)		4,919,301		4,876,727
	$	166,862,057	$	165,645,594

As of December 31, 2012, the Company had pledged the buildings and land use rights certificate with a carrying amount of $107,340,987 in relation to the land on which Shenzhen BAK’s corporate campus had been constructed for short-term bank loans amounting to $64,192,063 borrowed from Shenzhen Eastern Branch, Agricultural Bank of China.