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Receivables from Former Subsidiaries

12 Months Ended

Sep. 30, 2015

Receivables from Former Subsidiaries [Text Block]

7.	Receivables from Former Subsidiaries

Receivable from former subsidiaries as of September 30, 2014 and 2015 consisted of the following:

		2014			2015
Shenzhen BAK	$	1,856,356		$	62,963
BAK Tianjin		7,261,089			623,551
		9,117,445			686,514
Allowance for doubtful debts		(1,856,356	)		-
Carrying amount	$	7,261,089		$	686,514

Upon disposal of the Disposal Group in June 2014, the Disposal Group owed the Company a sum of $17.8 million (Note 1), which was settled in full during the year September 30, 2015. Management of the Company evaluated the collectability of the remaining amount and determined that $1.8 million should be impaired and offset against the gain on disposal of subsidiaries from discontinued operations for the year ended September 30, 2014. During the year ended September 30, 2015, the Company determined that $1.8 million was recoverable. The recovery was treated as an adjustment to the gain on disposal of subsidiaries from discontinued operations for the year ended September 30, 2015.

The balances at September 30, 2015 arise from trade transactions in year (Note 20).

There amounts are interest-free, unsecured and repayable on demand.

Subsequent to September 30, 2015, the Company made further advance of approximately RMB40 million ($6.3 million) to Tianjin BAK. These advances, which were made with the approval by the Board of Directors, were interest-free, unsecured and fully repaid in January 2016.