XML 44 R29.htm IDEA: XBRL DOCUMENT
v3.6.0.2

China BAK Battery, Inc. (Parent Company) | 12 Months Ended
--- | ---
Sep. 30, 2016
China BAK Battery, Inc. (Parent Company) [Text Block] |
23. | China BAK Battery, Inc. (Parent Company)
Under PRC regulations, subsidiaries in PRC (“the PRC subsidiaries”) may pay dividends only out of their accumulated profits, if any, determined in accordance with PRC GAAP. In addition, the PRC subsidiaries are required to set aside at least 10% of their after tax net profits each year, if any, to fund the statutory general reserve until the balance of the reserves reaches 50% of their registered capital. The statutory general reserves are not distributable in the form of cash dividends to the Company and can be used to make up cumulative prior year losses, if any, and may be converted into share capital by the issue of new shares to shareholders in proportion to their existing shareholdings, or by increasing the par value of the shares currently held by them, provided that the reserve balance after such issue is not less than 25% of the registered capital. As of September 30, 2015 and 2016, additional transfers of $15,250,000 and $15,019,489 were required for Dalian BAK Power and Dalian BAK Trading before the statutory general reserve reached 50% of the registered capital of the PRC subsidiaries, respectively. As of September 30, 2015 and 2016, there was nil and $1,230,511 appropriation from retained earnings and set aside for statutory general reserves by the PRC subsidiaries. BAK Dalian did not have after tax net profits since its incorporation and therefore no appropriation was made to fund its statutory general reserve as of September 30, 2015 and 2016. Dalian BAK Power had after tax profits of $15,769,742 and after tax loss of $10,790,255 in fiscal 2015 and 2016, respectively. Schedule I of Article 504 of Regulation SX requires the condensed financial information of the registrant (Parent Company) to be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of this test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party (i.e., lender, regulatory agency, foreign government, etc.). SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF REGISTRANT CHINA BAK BATTERY, INC. PARENT COMPANY STATEMENTS OF OPERATIONS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2016
|  | 2015 |  |  | 2016 |
REVENUE, net | $ | - |  | $ | - |
OPERATING EXPENSES: |  |  |  |  |  |
Salaries and consulting expenses |  | (795,167 | ) |  | (1,565,530 | )
General and administrative |  | (848,679 | ) |  | (439,009 | )
Total operating expenses |  | (1,643,846 | ) |  | (2,004,539 | )
LOSS FROM OPERATIONS |  | (1,643,846 | ) |  | (2,004,539 | )
OTHER INCOME: |  | - |  |  | 182,708 |
LOSS ATTRIBUTABLE TO PARENT COMPANY |  | (1,643,846 | ) |  | (1,821,831 | )
EQUITY IN EARNINGS (LOSS) OF SUBSIDIARIES |  | 17,517,772 |  |  | (10,830,363 | )
NET INCOME (LOSS) AVAILABLE TO SHAREHOLDERS | $ | 15,873,926 |  | $ | (12,652,194 | )
CHINA BAK BATTERY, INC. PARENT COMPANY BALANCE SHEETS AS OF SEPTEMBER 30, 2015 AND 2016
|  | 2015 |  |  | 2016 |
ASSETS |  |  |  |  |  |
CURRENT ASSETS: |  |  |  |  |  |
Other receivables | $ | - |  | $ | - |
Total current assets |  | - |  |  | - |
Interests in subsidiaries |  | 23,279,070 |  |  | 16,684,482 |
Total assets | $ | 23,279,070 |  | $ | 16,684,482 |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |
CURRENT LIABILITIES: |  |  |  |  |  |
Accrued expenses and other payables | $ | 1,610,183 |  | $ | 1,594,486 |
Total current liabilities |  | 1,610,183 |  |  | 1,594,486 |
SHAREHOLDERS' EQUITY |  | 21,668,887 |  |  | 15,089,996 |
Total liabilities and shareholders' equity | $ | 23,279,070 |  | $ | 16,684,482 |
CHINA BAK BATTERY, INC. PARENT COMPANY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2016
|  | 2015 |  |  | 2016 |
CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |  |  |
Net income (loss) available to shareholders | $ | 15,873,926 |  | $ | (12,652,194 | )
Adjustments to reconcile net income to net cash used in operating activities: |  |  |  |  |  |
Equity in (earnings) loss of subsidiaries |  | (17,517,772 | ) |  | 10,830,363 |
Provision for doubtful debts |  | 7,000 |  |  | - |
Share based compensation |  | 750,167 |  |  | 1,462,197 |
Change in operating assets and liabilities |  |  |  |  |  |
Accrued expenses and other payable |  | (27,501 | ) |  | (15,697 | )
Net cash used in operating activities |  | (914,180 | ) |  | (375,331 | )
CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |  |  |
Decrease (increase) in interest in subsidiaries |  | 914,180 |  |  | (5,141,269 | )
Net cash provided by (used in) investing activities |  | 914,180 |  |  | (5,141,269 | )
CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |  |  |
Proceeds from issuance of common stock |  | - |  |  | 5,516,600 |
Net cash provided by financing activities |  | - |  |  | 5,516,600 |
CHANGE IN CASH |  | - |  |  | - |
CASH, beginning of year |  | - |  |  | - |
CASH, end of year | $ | - |  | $ | - |
The condensed parent company financial statements have been prepared using the equity method to account for its subsidiaries. Refer to the consolidated financial statements and notes presented above for additional information and disclosures with respect to these financial statements.

X
- Definition Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 505 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6486098&loc=d3e24746-158529 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03.23(c)) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 505 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6486098&loc=d3e24790-158529 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 505 -Section 55 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6588579&loc=d3e24938-158530 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6486098&loc=d3e24708-158529 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 505 -Section 55 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6588579&loc=d3e24959-158530 + Details
Name: | us-gaap_StatutoryAccountingPracticesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration