Short-term Bank Loans

6 Months Ended

Mar. 31, 2013

Short-term Bank Loans [Text Block]

7. Short-term Bank Loans

As of September 30, 2012 and March 31, 2013, the Company had several short-term bank loans and current maturities of long term loans with aggregate outstanding balances of $156,154,525 and $162,786,110, respectively. The loans were primarily obtained for general working capital, carried at interest rates ranging from 4.4% to 6.9% 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 a guarantor. These facilities were also secured by the Company’s assets with the following carrying values:

		September 30,		March 31,
		2012		2013
For short- term bank loans
Inventories	$	23,863,691	$	24,163,958
Machinery and equipment, net		47,255,604		44,076,028
Land use rights, buildings and construction in progress of BAK Industrial Park		107,140,980		105,336,168
Land use rights #1 of Tianjin Industrial Park Zone		23,970,502		23,907,306
		202,230,777		197,483,460
For long- term bank loans (Note 8)
Land use right and construction in progress of Research and Development Test Centre		34,796,887		40,723,035
For other long- term loans
Land use rights #2 of Tianjin Industrial Park Zone		9,566,555		9,577,458
	$	246,594,219	$	247,783,953