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Short-term Loans
 6 Months Ended
Mar. 31, 2014
Short-term Loans [Text Block]

9. Short-term Loans

As of September 30, 2013 and March 31, 2014, the Company had several short-term bank loans with aggregate outstanding balances of $151,404,677 and $65,312,163, 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 9 to 12 months. The loans are guaranteed by Mr. Li, the Company's CEO, BAK International (TJ) Ltd and BAK International Ltd. These facilities were also secured by the Company's assets with the following carrying values:

    September 30, 2013     March 31, 2014  
Inventories $ 24,505,399   $ 16,086,740  
Accounts receivable, net   31,392,774     -  
Machinery and equipment, net   12,211,038     3,120,875  
Land use rights, buildings and construction in progress of BAK Industrial Park   87,763,440     85,198,358  
Land use rights and buildings of Research and Development Test Centre   43,143,525     -  
Land use rights #1 and buildings of Tianjin Industrial Park Zone   17,857,940     -  
  $ 216,874,116   $ 104,405,973  

During the three months ended March 31, 2013 and 2014, interest expenses of $2,519,625 and $1,845,480, respectively, were incurred on the Company's short-term bank borrowings.

During the six months ended March 31, 2013 and 2014, interest expenses of $5,716,558 and $4,591,849, respectively, were incurred on the Company's short-term bank borrowings.