XML 24 R12.htm IDEA: XBRL DOCUMENT

Balances with Former Subsidiaries

6 Months Ended

Mar. 31, 2016

Balances with Former Subsidiaries [Text Block]

6.	Balances with Former Subsidiaries

	Receivables from former subsidiaries as of September 30, 2015 and March 31, 2016 consisted of the following:

		September 30, 2015		March 31, 2016
Shenzhen BAK	$	62,963	$	-
BAK Tianjin		623,551		-
		686,514		-

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

Upon disposal of the Disposal Group in June 2014, the Disposal Group owed the Company a sum of $17.8 million. 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 (property leasing and management of its Research and Development Centre in Shenzhen) for the year ended September 30, 2014. During the three and six months ended March 31, 2015, the Company determined that $1.5 million was recoverable. The recovery was treated as an adjustment to the gain on disposal of subsidiaries from discontinued operations for the three and six months ended March 31, 2015.

In October 2015, the Company made an advance of approximately RMB40 million ($6.2 million) to BAK Tianjin, with the approval by the board of directors, to source battery cells for its customers. As of December 31, 2015, the Company received approximately RMB20 million (approximately $3.1 million) of cells and was refunded the remaining RMB20 million (approximately $3.1 million) in cash from BAK Tianjin in January 2016.

Payables to former subsidiaries as of September 30, 2015 and March 31, 2016 consisted of the following:

		September 30, 2015		March 31, 2016
Shenzhen BAK	$	-	$	108,634
BAK Tianjin		-		703,736
		-		812,370

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