Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.8.0.1
SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Sep. 30, 2017
Accounting Policies [Abstract]  
Schedule of Variable Interest Entities [Table Text Block]
All inter-company transactions and balances have been eliminated upon consolidation.
 
Entity Name
 
Registered
Location
 
Background
 
Ownership as of the
September 30, 2017
ZK International
 
BVI
 
• Incorporated on May 13, 2015
• Registered capital of USD 50,000, not paid
• A holding company with no operation activities itself for the years then ended
 
31.0% by HUANG Jian Cong
13.8% by WANG Ming Jie
13.8% by WANG Guo Lin
6.9% by WANG Jian Di
3.4% by WANG Yang Ming 
 
 
 
 
 
 
 
ZK Pipe
 
Hong Kong
 
• Incorporated on May 28, 2015
• Registered capital of HKD 1,000,000, not paid
• Have not commenced operations
 
100% by ZK International
 
 
 
 
 
 
 
 
Wenzhou Weijia
 
Wenzhou
 
• Incorporated on June 17, 2015
• Registered capital of USD 20,000,000, not paid
• Have not commenced operations
 
100% by ZK Pipe
 
 
 
 
 
 
 
 
Zhejiang Zhengkang
 
Wenzhou
 
• Incorporated on December 4, 2001
• Registered capital of RMB100,000,000, RMB30,000,000 paid
• Principally operated in manufacturing and sales of steel strip, steel pipe and fittings
 
99% by Wenzhou Weijia
1% by HUANG Jian Cong
 
 
 
 
 
 
 
 
Wenzhou Zhengfeng
 
Wenzhou
 
• Incorporated on December 24, 1999
• Registered capital of RMB 2,880,000, fully paid
• Principally operated in trading of steel strip, mainly purchased from Zhejiang Zhengkang
 
100% by Zhejiang Zhengkang
Schedule of Differences between Reported Amount and Reporting Currency Denominated Amount [Table Text Block]
The relevant exchange rates are listed below:
 
 
 
For the Fiscal Years
Ended September 30
 
 
 
2017
 
2016
 
2015
 
 
 
 
 
 
 
 
 
 
 
 
Period Ended RMB: USD exchange rate
 
 
6.6545
 
 
6.6711
 
 
6.3668
 
Period Average RMB: USD exchange rate
 
 
6.8126
 
 
6.5333
 
 
6.1746
 
Advance to Suppliers and Advance from Customers [Table Text Block]
Changes of advances to suppliers for the years ended September 30, 2017 and 2016 are as follow:
 
Beginning balance
 
$
3,251,295
 
$
2,549,418
 
Less: products or services received
 
 
(31,770,719)
 
 
(20,841,688)
 
Add: payment to suppliers
 
 
38,149,942
 
 
21,543,565
 
Ending balance
 
$
9,630,518
 
$
3,251,295
 
 
Changes of advances from customers for the years ended September 30, 2017 and 2016 are as follow:
 
Beginning balance
 
$
1,618,216
 
$
333,476
 
Less: products or services delivered
 
 
(9,261,841)
 
 
(4,253,173)
 
Add: payment from customers
 
 
9,627,338
 
 
5,537,913
 
Ending balance
 
$
1,983,713
 
$
1,618,216
 
Property, Plant And Equipment Useful Life [Table Text Block]
Depreciation commences upon placing the asset in usage and is recognized on a straight-line basis over the estimated useful lives of the assets, as follows:
 
 
Useful lives
Buildings
40 years
Machinery
8-20 years
Furniture, fixtures, and equipment
3-10 years
Motor vehicles
5-10 years
Schedule Of Finite Lived Intangible Assets Useful Life [Table Text Block]
These land use rights are sometimes referred to informally as “ownership.” Land use rights are stated at cost less accumulated amortization. Intangible assets are amortized using the straight-line method with the following estimated useful lives:
 
 
Useful lives
Land use rights
46 years
Software
5 years