Long-term Bank Loans

6 Months Ended

Mar. 31, 2013

Long-term Bank Loans [Text Block]

8. Long-term Bank Loans

Long-term bank loans as of September 30, 2012 and March 31, 2013 as follow:

		September 30,			March 31,
		2012			2013
Long-term bank loan	$	23,656,458		$	22,343,160
Current portion included in short-term bank loans (Note 7)		(4,772,738	)		(6,443,714	)
	$	18,883,720		$	15,899,446

The entire loan amount was borrowed under a six-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 two-year to three-year long-term loans, which is currently 6.878% 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 a 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 carrying amount of the secured buildings and prepaid land use rights were $39,473,807 and $1,249,228, respectively, as of March 31, 2013 and were $33,563,180 and $1,233,707, respectively, as of September 30, 2012. (Note 7)

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 March 31, 2013 are as follows:

Payable within fiscal year ending September 30,
-2013	$	-
-2014		3,221,857
-2015		8,054,643
-2016		4,622,946
	$	15,899,446