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Pledged deposits

3 Months Ended

Dec. 31, 2016

2.	Pledged deposits

Pledged deposits as of September 30, 2016 and December 31, 2016 consisted of the following:

		September 30,		December 31,
		2016		2016
Pledged deposits for:
Bills payable	$	3,305,305	$	3,064,155
Others*		1,263,722		1,213,989
	$	4,569,027	$	4,278,144

On July 7, 2016, Shenzhen Huijie Purification System Engineering Co., Ltd (“Shenzhen Huijie”), one of the Company’s contractors, filed a lawsuit against Dalian BAK Power in the Peoples’ Court of Zhuanghe City, Dalian for the failure to pay pursuant to the terms of the contract and entrusted part of the project of the contract to a third party without their prior consent. The plaintiff sought a total amount of $1,213,989 (RMB8,430,792), including construction costs of $0.9 million (RMB6.3 million), interest of $29,481 (RMB0.2 million) and compensation of $0.3 million (RMB1.9 million), which we already accrued for as of December 31, 2016. On September 7, 2016, upon the request of Shenzhen Huijie, the Court froze Dalian BAK Power’s bank deposits totaling $1,213,989 (RMB8,430,792) for a period of one year.