Prepayments and Other Receivables

12 Months Ended

Sep. 30, 2011

Prepayments and Other Receivables [Text Block]

6	Prepayments and Other Receivables
	Prepayments and other receivables as of September 30, 2010 and 2011 consist of the following:

		2010			2011
Prepayments for raw materials and others	$	2,198,770		$	1,271,520
Other receivables (Note 6 (a))		3,952,530			4,665,485
Less: Allowance for doubtful accounts		(638,079	)		(694,587	)
	$	5,513,221		$	5,242,418

An analysis of allowance for doubtful accounts for the years ended September 30, 2009, 2010 and 2011 is as follows:

		2009			2010		2011
Balance at beginning of year	$	9,534		$	6,840	$	638,079
(Recovery of) / Addition of bad debt expense		(2,679	)		619,909		25,275
Foreign exchange adjustment		(15	)		11,330		31,233
Balance at end of year	$	6,840		$	638,079	$	694,587

(a) Other receivables as of September 30, 2011 included advances to senior management amounting to approximately US$58,000 for travel and entertainment expenses in the ordinary course of business.