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Accrued expenses and other payable and Obligations arising from loan guarantees
3 Months Ended
Dec. 31, 2012
Accrued expenses and other payable and Obligations arising from loan guarantees [Text Block]

10 Accrued expenses and other payable and Obligations arising from loan guarantees

(a) Accrued expenses and other payables

In 2012, the Company obtained interest-free loans from related parties which are under the common control of Mr. Xiangqian Li. These loans are payable upon demand. As of September 30, 2012 and December 31, 2012, outstanding loans amounted to approximately $1,224,000 and $2,181,000 respectively.

(b) Obligations arising from loan guarantees

As of December 31, 2012, the Company provided guarantees for the bank loans of unrelated parties (Note 16(iii)). On January 5, 2013, Agricultural Bank of China informed the Company that Shenzhen Langjin Technology Co., Ltd. had defaulted on the loan guaranteed by China BAK and two other companies, and demanded full payment from China BAK. The Company has made a partial payment of RMB16,000,000 ($2,567,683) on January 30, 2013 and is in the process of negotiating a one-month payment extension for the remaining amount of RMB30,000,000 ($4,814,404). The Company expects to pay the remaining amount in March 2013. A loss of RMB46,000,000 ($7,360,706) was recognized in the three months ended December 31, 2012. No default was noted on the other loans guaranteed by the Company.