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Short-term Bank Loans
 3 Months Ended
Dec. 31, 2013
Short-term Bank Loans [Text Block]

9. Short-term Bank Loans

As of September 30, 2013 and December 31, 2013, the Company had several short-term bank loans with aggregate outstanding balances of $151,404,677 and $153,054,397, respectively. The loans were primarily obtained for general working capital, carried at interest rates ranging from 5.88% to 15.00% per annum, and had maturity dates ranging from 1 to 6 months. The loans are guaranteed by Mr. Li, the Company's CEO, Ms. Xiaoqiu Yu, the wife of the CEO and the loans from Bank of China are pledged by 100% shares of Shenzhen BAK. These facilities were also secured by the Company's assets with the following carrying values:

 

   September 30,     December 31,  

 

   2013     2013  

Pledged deposits

 $   -   $ 10,571,522  

Inventories

   24,505,399     16,518,005  

Accounts receivables, net

   31,392,774     29,890,460  

Machinery and equipment, net

   12,211,038     10,615,877  

Land use rights, buildings and construction in progress of BAK Industrial Park

   87,763,440     87,816,457  

Land use rights and buildings of Research and Development Test Centre

   43,143,525     46,740,430  

Land use rights #1 and buildings of Tianjin Industrial Park Zone

   17,857,940     17,867,961  

 

 $ 216,874,116   $ 220,020,712  

During the three months ended December 31, 2012 and 2013, interest expenses of $3,196,933 and $2,746,369, respectively, was incurred on the Company's short-term bank borrowings.