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Long-term Bank Loans

12 Months Ended

Sep. 30, 2012

12	Long-term Bank Loans

As of September 30, 2011 and 2012, the Company had long-term bank loans of US$38,470,278 and US$23,656,458 respectively. As of September 30, 2012, the loan was borrowed under a four-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 three-year to five-year long-term loans, which is currently 6.4% per annum. This long-term bank loan is repayable as follows: US$18,646,420 on February 9, 2016, US$486,574 on October 9, 2016, US$1,272,730 on October 27, 2016, US$954,548 on November 3, 2016, US$477,274 on November 9, 2016, US$477,274 on November 16, 2016, US$795,456 on November 28, 2016 and US$546,182 on December 8, 2016 respectively.

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) to be secured by the property ownership and 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 (see Note 9).

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 September 30, 2012 are as follows:

Fiscal years ending on September 30,
2013	$	-
2014 or after		23,656,458

	$	23,656,458