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Short-term Bank Loans

6 Months Ended

Mar. 31, 2016

Short-term Bank Loans [Text Block]

11.	Short-term Bank Loans

	As of September 30, 2015 and March 31, 2016, the Company had short term bank borrowings of $12,585,740 and $12,896,137, respectively.

	Under the banking facilities granted by Bank of Dandong on June 22, 2015 (Note 1), the Company borrowed a loan of $7,758,313 (RMB50 million) from Bank of Dandong for a period from June 25, 2015 to June 22, 2016, bearing fixed interest at 7.84% per annum. On August 18, 2015, the Company borrowed another loan of $4,654,988 (RMB30 million) with a fixed interest rate at 7.84% per annum for the period from August 18, 2015 to June 10, 2016. During the three months ended March 31, 2016, the Company borrowed bank loans of $482,836 bearing interest from 5.86% to 5.89% and expiring through July 2016 under the matured letter of credits.

	The banking facilities were guaranteed by Mr. Xiangqian Li, the Company’s former CEO and his wife, Ms. Xiaoqiu Yu, and Shenzhen BAK, a former subsidiary of the Company. The facilities were also secured by the Company’s assets with the following carrying amounts:

		September 30,			March 31,
		2015			2016
Pledged deposits (note 2)	$	1,519,601		$	2,014,963
Prepaid land use rights (note 9)		8,631,995			8,426,556
Buildings		13,120,083			12,319,168
Machinery and equipment		3,831,790			3,409,939
Construction in progress		6,228,371			6,143,035
	$	33,331,840		$	32,313,661

As of March 31, 2016, the Company had unutilized committed banking facilities of $0.8 million.

During the three months ended March 31, 2015 and 2016, interest of $93,780 and $242,338, respectively, was incurred on the Company's bank borrowings.

During the six months ended March 31, 2015 and 2016, interest of $191,041 and $490,430, respectively, was incurred on the Company's bank borrowings.