Deferred Government Grants

12 Months Ended

Sep. 30, 2014

Deferred Government Grants [Text Block]

14. Deferred Government Grants

Deferred government grants as of September 30, 2013 and 2014 consist of the following:

		2013			2014
Advances from the Management Committee of Dalian Economic Zone (the “Management Committee”)	$	24,505,399		$	24,437,131
Government subsidies received for:-
– Automated high-power lithium battery project from the National Development and     Reform Commission and Ministry of Industry and Information Technology		8,145,594			-
– New energy innovation project from the Ministry of Finance		340,217			-
– Various lithium battery related projects from various government authorities		14,448,005			-
Others		32,252			-
	$	47,471,467		$	24,437,131
Less: Current portion		(24,525,004	)		(24,437,131	)
	$	22,946,463		$	-

The Management Committee provided a subsidy of RMB150 million to finance the removal of the Company’s production facilities to Dalian. As of September 30, 2014, removal expenditures of $1,018,016 were incurred and included in construction in progress. The Company expects that the removal will be completed in January 2015.

The Company recognizes the government subsidies as income or offsets them against the related expenditures when there are no present or future obligations for the subsidized projects.