Long-term Bank Loans

3 Months Ended

Dec. 31, 2012

Long-term Bank Loans [Text Block]

8 Long-term Bank Loans

As of September 30, 2012 and December 31, 2012, the Company had long-term bank loans of $23,656,458 and $22,258,181, respectively. As of December 31, 2012, the entire loan amount was borrowed under a four-year long-term loan credit facility from China Development Bank, bearing interest at the benchmark rate of the People’s Bank of China (“PBOC”) for three-year to five-year long-term loans, which is currently 7.403% per annum.

The long-term bank loan with China Development Bank is: (i) guaranteed by Mr. Xiangqian Li; (ii) secured by certain shares of the Company owned by Mr. Xiangqian Li; and (iii) secured by the property ownership and land use rights certificate relating to the land on which the Company’s Research and Development Test Centre is to be constructed and the facilities to be constructed thereon. The net book value of the secured lease prepayments were $16,366,476, (Note 6) as of December 31, 2012.

Mr. Xiangqian Li did not receive any compensation for pledging his shares in the Company or acting as guarantor for the above long-term bank loans.

The aggregate maturities of long-term bank loans as of December 31, 2012 are as follows:

Payable within fiscal year ending September 30,
-2013	$	-
-2014		-
-2015		-
-2016		17,204,405
-2017		5,053,776
	$	22,258,181