ACCOUNTS AND NOTES PAYABLE

9 Months Ended

Sep. 30, 2014

ACCOUNTS AND NOTES PAYABLE [Text Block]

9. ACCOUNTS AND NOTES PAYABLE

Accounts and notes payable consist of the following:

		September30,		December31,
		2014		2013
		(Unaudited)
Notes payable	$	15,112,500	$	9,658,300
Accounts payable		25,295,735		23,161,922
	$	40,408,235	$	32,820,222

The notes payable were issued by the Great Shengda to their suppliers for raw materials purchased. All the notes payable were bank accepted notes payable without interest and due within six months. They are pledged with restricted cash amounting to US$7,556,250 and US$4,829,150 as of September 30, 2014 and December 31, 2013, respectively. The notes payable from Agriculture Bank of China was guaranteed by SD Group (Note 11).