Short-term Bank Loans

12 Months Ended

Sep. 30, 2015

Short-term Bank Loans [Text Block]

11. Short-term Bank Loans

As of September 30, 2014 and 2015, the Company had short term bank borrowings of $4,887,426 and $12,585,740, respectively.

On August 13, 2014, the Company borrowed $4,887,426 (RMB30 million) from Bank of Dandong for a period from August 19, 2014 to August 18, 2015, bearing interest at 7.8% per annum. The loan was guaranteed by Mr. Xiangqian Li, the Company’s CEO and Shenzhen BAK, a former subsidiary of the Company.

Under the banking facilities granted by Bank of Dandong on June 22, 2015 (Note 1), the Company borrowed a loan of $7,866,088 (RMB50 million) from Bank of Dandong for a period from June 25, 2015 to June 22, 2016, bearing fixed interest at 7.84% per annum. On August 18, 2015, the Company repaid the loan of RMB30 million upon maturity and borrowed a new loan of $4,719,652 (RMB30 million) with a fixed interest rate at 7.84% per annum for the period from August 18, 2015 to June 10, 2016.

The banking facilities were guaranteed by Mr. Xiangqian Li, the Company’s CEO and his wife, Ms. Xiaoqiu Yu, and Shenzhen BAK, a former subsidiary of the Company. The facilities were also secured by the Company’s assets with the following carrying amount:

		2014		2015
Pledged deposits (note 3)	$	-	$	1,519,601
Prepaid land use rights (note 10)		-		8,631,995
Machinery and equipment		-		3,831,790
Buildings		-		13,120,083
Construction in progress		-		6,228,371
		-		33,331,840

As of September 30, 2015, the Company had unutilized committed banking facilities of $1.8 million.

During the years ended September 30, 2014 and 2015, interest of $5,737,093 and $527,104, respectively, was incurred on the Company's bank borrowings.