XML 112 R14.htm IDEA: XBRL DOCUMENT

Property, Plant and Equipment, net

12 Months Ended

Sep. 30, 2012

Property, Plant and Equipment, net [Text Block]

8	Property, Plant and Equipment, net

	Property, plant and equipment as of September 30, 2011 and 2012 consist of the following:

			2011			2012
	Buildings	$	127,025,347		$	129,998,425
	Machinery and equipment		159,355,671			171,393,610
	Office equipment		2,519,208			2,624,137
	Motor vehicles		1,453,456			1,486,337
			290,353,682			305,502,509
	Accumulated depreciation		(80,673,667	)		(102,766,292	)
	Construction in progress		45,305,701			52,442,114
	Prepayment for acquisition of property, plant and equipment		1,466,207			1,717,991
	Assets held for abandonment		744,356			-
	Net book value		257,196,279			256,896,322

	Impairment charge		(13,958,165	)		(18,138,427	)

	Carried amount	$	243,238,114		$	238,757,895

	Property, plant and equipment with net book value of US$4,576 were sold during the year ended September 30, 2012 for US$20,682, resulting in a gain of $16,106.

	Property, plant and equipment with net book value of US$185,039 were sold during the year ended September 30, 2011 for US$656,483, resulting in a profit of $471,444.

(i)	Depreciation expense is included in the consolidated statements of operations and comprehensive loss as follows:

			2011			2012
	Cost of revenues	$	14,190,901		$	13,551,240
	Research and development expenses		487,914			604,223
	Sales and marketing expenses		392,390			172,189
	General and administrative expenses		2,737,675			3,316,192
		$	17,808,880		$	17,643,844

(ii)	Construction in Progress

	Construction in progress mainly comprises capital expenditures for construction of the Company’s new corporate campus, including offices, factories, staff dormitories and R&D centre.

	For the years ended September 30, 2011 and 2012, the Company capitalized interest of US$368,227 and US$1,767,649, respectively, to the cost of construction in progress.

(iii)	Pledged Property, Plant and Equipment

	As of September 30, 2011 and 2012, machinery and equipment with net book value of US$56,376,435 and US$47,255,604 of the Company were pledged as collateral under certain loan arrangements (see Notes 11 and 12).


(iv)	Assets held for abandonment

			2011			2012
	Net book value	$	744,356		$	-
	Less: impairment charge		(744,356	)		-
	Carried amount	$	-		$	-

There was no property, plant and equipment held for abandonment as of September 30, 2012.

(v)	Impairment charge

	During the course of the Company's strategic review of its operations in the years ended September 30, 2011 and 2012, the Company assessed the recoverability of the carrying value of certain property, plant and equipment which resulted in impairment losses of approximately US$6.5 million and US$3.9 million for the years ended September 30, 2011 and 2012 respectively.

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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