we had a working capital deficiency , accumulated deficit from recurring net losses incurred for the current and prior years as at september 30 , 2011 and significant short-term debt obligations maturing in less than one year . these factors raise substantial doubts about our ability to continue as a going concern . accordingly , we have continued to develop a strategic plan to continue to generate a positive cash flow from operating activities for the fiscal years ending september 30 , 2012 and 2013. under this plan , we will continue to increase our presence in the oem market both domestically and internationally with more aggressive marketing strategies expand and secure our market base . we will also continue to implement reductions of both manufacturing costs and operating expenses to improve profit margins as well as reduce receivable turnover days through stronger credit controls . financial statement presentation net revenues . our net revenues represent the invoiced value of our products sold , net of value added taxes , or vat , sales returns , trade discounts and allowances . we are subject to vat , which is levied on most of our products at the rate of 17 % on the invoiced value of our products . provision for sales returns are recorded as a reduction of revenue in the same period that revenue is recognized . the provision for sales returns represents our best estimate of the amount of goods that will be returned from our customers based on historical sales returns data . cost of revenues . cost of revenues consists primarily of material costs , employee remuneration for staff engaged in production activity , share-based compensation , depreciation and related expenses that are directly attributable to the production of products . cost of revenues also includes write-downs of inventory to lower of cost or market . cost of revenues from the sales of battery packs includes the fees we pay to pack manufacturers for assembling our prismatic cells into battery packs . research and development expenses . research and development expenses primarily comprise of remuneration for r & d staff , share-based compensation , depreciation and maintenance expenses relating to r & d equipment , and r & d material costs . sales and marketing expenses . sales and marketing expenses consist primarily of remuneration for staff involved in selling and marketing efforts , including staff engaged in the packaging of goods for shipment , advertising cost , depreciation , share-based compensation and travel and entertainment expenses . we do not pay slotting fees to retail companies for displaying our products , engage in cooperative advertising programs , participate in buy-down programs or similar arrangements . no material estimates are required by management to determine our actual marketing or advertising costs for any period . 43 general and administrative expenses . general and administrative expenses consist primarily of employee remuneration , share-based compensation , professional fees , insurance , benefits , general office expenses , depreciation , liquidated damage charge and bad debt expenses . property , plant and equipment impairment charges . impairment charges consist primarily of impairment losses for long-lived assets . these losses reflect the amounts by which the carrying values of these assets exceed their estimated fair value as determined by their estimated future discounted cash flows . government grant income . government grant income for the year ended september 30 , 2011 mainly consisted of receipt of grants to fund certain lithium battery research projects and to subsidize the payment for land use rights of bak industrial park . no present or future obligation arises from the receipt of such amount . finance costs , net . finance costs consist primarily of interest income , interest on bank loans , net of capitalized interest , and bank charges . income taxes . under prc income tax laws and regulations , before january 1 , 2008 , a fie , such as each of our wholly-owned prc subsidiaries , was generally subject to an enterprise income tax rate of 33.0 % , which included a 30.0 % state income tax and a 3.0 % local income tax . however , from at least calendar year 2002 through calendar year 2007 , an enterprise recognized as a manufacturing enterprise located in special economic zone under prc tax laws was entitled to a preferential income tax rate of 15 % . moreover , a foreign-invested manufacturing enterprise , starting from its first profitable calendar year after offset of accumulated tax losses , was entitled to a two-year exemption from enterprise income tax followed by a three-year 50 % reduction in its enterprise income tax rate , also referred to herein as the tax holiday. an enterprise qualified for such treatment may receive a further tax rate reduction related to the size of qualified capital contributions received . in addition , from at least calendar year 2002 through calendar year 2007 , an enterprise qualified as an advanced technology enterprise under prc tax law also was entitled to a 50 % reduction of income taxes . on march 16 , 2007 , the national people 's congress of china passed the eit law , and on november 28 , 2007 , the state council of china passed its implementing rules , both of which took effect on january 1 , 2008. the eit law unifies the application scope , tax rate , tax deduction and preferential policy for both domestic enterprises and fies . according to the eit law , the applicable income tax rate for shenzhen bak , bak electronics and bak tianjin will be 25 % after their preferential tax holidays and the transition period have ended . story_separator_special_tag net revenues from sales of cylindrical cells decreased to $ 43.2 million in the year ended september 30 , 2010 , from $ 55.3 million in fiscal year 2009 , a decrease of $ 12.2 million , or 22.0 % , due to a decrease in our average selling prices of 18.6 % due to implementing a temporary pricing competition strategy to maintain and increase our market share in the oem market , and a decrease in sales volume of 4.2 % as result of fierce competition . we sold $ 689,000 in steel-case cells in the year ended september 30 , 2010 as compared to $ 5.0 million in the year ended september 30 , 2009. this change was attributable primarily to our long-term strategic reduction and suspension of steel-case cell production in january 2009 which was designed to increase our production capacity of aluminum-case cells for sale to the oem market and to take advantage of the greater sales prospects and lower costs of aluminum-case cells . we sold $ 10.1 million in lithium polymer cells for the year ended september 30 , 2010 , compared to $ 14.3 million in lithium polymer cells in fiscal year 2009 , a decrease of $ 4.1 million , or 28.9 % , resulting from a 27.0 % decrease in sales volume and a 2.6 % decrease in average selling price as result of fierce competition . we also sold approximately $ 1.8 million in high-power lithium battery cells for the year ended september 30 , 2010 , as compared to $ 180,000 in high-power lithium battery cells in fiscal year 2009 , due to our sale of sample products used in electric buses , electric vehicles , electric bicycles , power tools , ups , and other applications from our tianjin facility . 48 cost of revenues . cost of revenues increased to $ 192.1 million for the year ended september 30 , 2010 , as compared to $ 184.4 million for fiscal year 2009 , an increase of $ 7.8 million , or 4.2 % . the increase in cost of revenues correlates to an increase in sales volume over the year ended september 30 , 2010 , and a significant write down of obsolete inventory . gross profit . gross profit for the year ended september 30 , 2010 was $ 22.7 million , or 10.6 % of net revenues , as compared to gross profit of $ 26.8 million , or 12.7 % of net revenues , for fiscal year 2009. our decrease in gross profit as a percentage of net revenues primarily was due to the decrease in average selling price of prismatic battery cells and cylindrical battery cells resulting in lower gross margin during the year ended september 30 , 2010 , because we adopted a temporary competitive pricing strategy for cylindrical battery cells to increase their market share in the oem market and sold slow-moving inventories at discount to improve our operating cash flow . research and development expenses . research and development expenses increased to $ 7.4 million for the year ended september 30 , 2010 , as compared to $ 5.6 million for fiscal year 2009 , an increase of $ 1.7 million , or 31.1 % . salaries and welfare related to r & d staffs increased $ 1.4 million primarily due to increased basic salaries and benefits in response to guidance issued to shenzhen-based companies by relevant local government authorities during the three months ended june 30 , 2010 and effective july 1 , 2010. the cost of research materials also increased by $ 398,000 , due to increased research projects required to support the development of high-power lithium battery cells . sales and marketing expenses . sales and marketing expenses increased to $ 8.9 million for the year ended september 30 , 2010 as compared to $ 6.2 million for fiscal year 2009 , an increase of $ 2.7 million , or 43.4 % , primarily due to increased packing expenses of $ 148,000 and advertising expenses of $ 95,000 , resulting from more intensive sales effort during the year ended september 30 , 2010. salaries and welfare increased $ 1.3 million primarily due to increased basic salaries and benefits in response to guidance issued to shenzhen-based companies by relevant local government authorities during the three months ended june 30 , 2010 and effective july 1 , 2010. equity-based compensation included in sales and marketing expenses increased by $ 275,000 due to compensation charges applied to the grant of stock options to employees in our sales department . as a percentage of revenues , sales and marketing expenses have increased to 4.1 % for the year ended september 30 , 2010 , from 2.9 % for fiscal year 2009 , primarily due to the significant increase in revenues supported by marketing and sales . general and administrative expenses . general and administrative expenses increased to $ 27.1 million , or 12.6 % of revenues , for the year ended september 30 , 2010 as compared to $ 22.0 million , or 10.4 % of revenues , for fiscal year 2009 , an increase of $ 5.1 million , or 23.4 % . bad debt expenses increased by $ 2.7 million due to the provision charged following an assessment of account collectability in the fourth quarter of 2010. salaries and welfare increased $ 554,000 primarily due to increased basic salaries and benefits under guidance from the relevant local governments during the year ended september 30 , 2010. we also recognized an exchange loss of $ 1.3 million for the year ended september 30 , 2010 , compared with exchange loss of $ 49,000 for the year ended september 30 , 2009. as described under item 3. legal proceedings  make good settlements we have entered into settlement agreements pursuant to which we have issued shares to certain shareholders that purchased shares in a january 20 , 2005 private placement transaction

liquidity and capital resources we have historically financed our liquidity requirements from a variety of sources , including short-term bank loans , long-term bank loans and bills payable under bank credit agreements , sale of bills receivable and issuance of capital stock . as of september 30 , 2011 , we had cash and cash equivalents of $ 24.9 million . in addition , we had pledged deposits amounting to $ 5.7 million . typically , banks will require borrowers to maintain deposits of approximately 10 % to 100 % of the outstanding loan balances and bills payable . the individual bank loans have maturities ranging from three to twelve months which coincides with the periods the cash remains pledged to the banks . as of september 30 , 2011 , we had access to $ 242.4 million in short-term credit facilities and $ 31.3 million in long-term credit facilities . as of september 30 , 2011 , the principal outstanding amounts included short-term bank loans of $ 139.7 million under credit facilities , long-term bank loans of $ 23.5 million maturing within one year and long-term bank loans of $ 15.0 million maturing in over one year , and bills payable of $ 50.2 million under credit facilities , leaving $ 59.5 million of short-term funds available under our credit facilities for additional cash needs . in july 2008 , a $ 60.0 million shelf registration statement was declared effective by the sec , pursuant to which we raised $ 36.6 million in gross proceeds from sales of common stock and issued common stock warrants exercisable for up to $ 21.6 million in additional gross proceeds . none of these warrants were exercised before their expiration . this shelf registration statement has expired .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources we have historically financed our liquidity requirements from a variety of sources , including short-term bank loans , long-term bank loans and bills payable under bank credit agreements , sale of bills receivable and issuance of capital stock . as of september 30 , 2011 , we had cash and cash equivalents of $ 24.9 million . in addition , we had pledged deposits amounting to $ 5.7 million . typically , banks will require borrowers to maintain deposits of approximately 10 % to 100 % of the outstanding loan balances and bills payable . the individual bank loans have maturities ranging from three to twelve months which coincides with the periods the cash remains pledged to the banks . as of september 30 , 2011 , we had access to $ 242.4 million in short-term credit facilities and $ 31.3 million in long-term credit facilities . as of september 30 , 2011 , the principal outstanding amounts included short-term bank loans of $ 139.7 million under credit facilities , long-term bank loans of $ 23.5 million maturing within one year and long-term bank loans of $ 15.0 million maturing in over one year , and bills payable of $ 50.2 million under credit facilities , leaving $ 59.5 million of short-term funds available under our credit facilities for additional cash needs . in july 2008 , a $ 60.0 million shelf registration statement was declared effective by the sec , pursuant to which we raised $ 36.6 million in gross proceeds from sales of common stock and issued common stock warrants exercisable for up to $ 21.6 million in additional gross proceeds . none of these warrants were exercised before their expiration . this shelf registration statement has expired .
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 Suspicious Activity Report : we had a working capital deficiency , accumulated deficit from recurring net losses incurred for the current and prior years as at september 30 , 2011 and significant short-term debt obligations maturing in less than one year . these factors raise substantial doubts about our ability to continue as a going concern . accordingly , we have continued to develop a strategic plan to continue to generate a positive cash flow from operating activities for the fiscal years ending september 30 , 2012 and 2013. under this plan , we will continue to increase our presence in the oem market both domestically and internationally with more aggressive marketing strategies expand and secure our market base . we will also continue to implement reductions of both manufacturing costs and operating expenses to improve profit margins as well as reduce receivable turnover days through stronger credit controls . financial statement presentation net revenues . our net revenues represent the invoiced value of our products sold , net of value added taxes , or vat , sales returns , trade discounts and allowances . we are subject to vat , which is levied on most of our products at the rate of 17 % on the invoiced value of our products . provision for sales returns are recorded as a reduction of revenue in the same period that revenue is recognized . the provision for sales returns represents our best estimate of the amount of goods that will be returned from our customers based on historical sales returns data . cost of revenues . cost of revenues consists primarily of material costs , employee remuneration for staff engaged in production activity , share-based compensation , depreciation and related expenses that are directly attributable to the production of products . cost of revenues also includes write-downs of inventory to lower of cost or market . cost of revenues from the sales of battery packs includes the fees we pay to pack manufacturers for assembling our prismatic cells into battery packs . research and development expenses . research and development expenses primarily comprise of remuneration for r & d staff , share-based compensation , depreciation and maintenance expenses relating to r & d equipment , and r & d material costs . sales and marketing expenses . sales and marketing expenses consist primarily of remuneration for staff involved in selling and marketing efforts , including staff engaged in the packaging of goods for shipment , advertising cost , depreciation , share-based compensation and travel and entertainment expenses . we do not pay slotting fees to retail companies for displaying our products , engage in cooperative advertising programs , participate in buy-down programs or similar arrangements . no material estimates are required by management to determine our actual marketing or advertising costs for any period . 43 general and administrative expenses . general and administrative expenses consist primarily of employee remuneration , share-based compensation , professional fees , insurance , benefits , general office expenses , depreciation , liquidated damage charge and bad debt expenses . property , plant and equipment impairment charges . impairment charges consist primarily of impairment losses for long-lived assets . these losses reflect the amounts by which the carrying values of these assets exceed their estimated fair value as determined by their estimated future discounted cash flows . government grant income . government grant income for the year ended september 30 , 2011 mainly consisted of receipt of grants to fund certain lithium battery research projects and to subsidize the payment for land use rights of bak industrial park . no present or future obligation arises from the receipt of such amount . finance costs , net . finance costs consist primarily of interest income , interest on bank loans , net of capitalized interest , and bank charges . income taxes . under prc income tax laws and regulations , before january 1 , 2008 , a fie , such as each of our wholly-owned prc subsidiaries , was generally subject to an enterprise income tax rate of 33.0 % , which included a 30.0 % state income tax and a 3.0 % local income tax . however , from at least calendar year 2002 through calendar year 2007 , an enterprise recognized as a manufacturing enterprise located in special economic zone under prc tax laws was entitled to a preferential income tax rate of 15 % . moreover , a foreign-invested manufacturing enterprise , starting from its first profitable calendar year after offset of accumulated tax losses , was entitled to a two-year exemption from enterprise income tax followed by a three-year 50 % reduction in its enterprise income tax rate , also referred to herein as the tax holiday. an enterprise qualified for such treatment may receive a further tax rate reduction related to the size of qualified capital contributions received . in addition , from at least calendar year 2002 through calendar year 2007 , an enterprise qualified as an advanced technology enterprise under prc tax law also was entitled to a 50 % reduction of income taxes . on march 16 , 2007 , the national people 's congress of china passed the eit law , and on november 28 , 2007 , the state council of china passed its implementing rules , both of which took effect on january 1 , 2008. the eit law unifies the application scope , tax rate , tax deduction and preferential policy for both domestic enterprises and fies . according to the eit law , the applicable income tax rate for shenzhen bak , bak electronics and bak tianjin will be 25 % after their preferential tax holidays and the transition period have ended . story_separator_special_tag net revenues from sales of cylindrical cells decreased to $ 43.2 million in the year ended september 30 , 2010 , from $ 55.3 million in fiscal year 2009 , a decrease of $ 12.2 million , or 22.0 % , due to a decrease in our average selling prices of 18.6 % due to implementing a temporary pricing competition strategy to maintain and increase our market share in the oem market , and a decrease in sales volume of 4.2 % as result of fierce competition . we sold $ 689,000 in steel-case cells in the year ended september 30 , 2010 as compared to $ 5.0 million in the year ended september 30 , 2009. this change was attributable primarily to our long-term strategic reduction and suspension of steel-case cell production in january 2009 which was designed to increase our production capacity of aluminum-case cells for sale to the oem market and to take advantage of the greater sales prospects and lower costs of aluminum-case cells . we sold $ 10.1 million in lithium polymer cells for the year ended september 30 , 2010 , compared to $ 14.3 million in lithium polymer cells in fiscal year 2009 , a decrease of $ 4.1 million , or 28.9 % , resulting from a 27.0 % decrease in sales volume and a 2.6 % decrease in average selling price as result of fierce competition . we also sold approximately $ 1.8 million in high-power lithium battery cells for the year ended september 30 , 2010 , as compared to $ 180,000 in high-power lithium battery cells in fiscal year 2009 , due to our sale of sample products used in electric buses , electric vehicles , electric bicycles , power tools , ups , and other applications from our tianjin facility . 48 cost of revenues . cost of revenues increased to $ 192.1 million for the year ended september 30 , 2010 , as compared to $ 184.4 million for fiscal year 2009 , an increase of $ 7.8 million , or 4.2 % . the increase in cost of revenues correlates to an increase in sales volume over the year ended september 30 , 2010 , and a significant write down of obsolete inventory . gross profit . gross profit for the year ended september 30 , 2010 was $ 22.7 million , or 10.6 % of net revenues , as compared to gross profit of $ 26.8 million , or 12.7 % of net revenues , for fiscal year 2009. our decrease in gross profit as a percentage of net revenues primarily was due to the decrease in average selling price of prismatic battery cells and cylindrical battery cells resulting in lower gross margin during the year ended september 30 , 2010 , because we adopted a temporary competitive pricing strategy for cylindrical battery cells to increase their market share in the oem market and sold slow-moving inventories at discount to improve our operating cash flow . research and development expenses . research and development expenses increased to $ 7.4 million for the year ended september 30 , 2010 , as compared to $ 5.6 million for fiscal year 2009 , an increase of $ 1.7 million , or 31.1 % . salaries and welfare related to r & d staffs increased $ 1.4 million primarily due to increased basic salaries and benefits in response to guidance issued to shenzhen-based companies by relevant local government authorities during the three months ended june 30 , 2010 and effective july 1 , 2010. the cost of research materials also increased by $ 398,000 , due to increased research projects required to support the development of high-power lithium battery cells . sales and marketing expenses . sales and marketing expenses increased to $ 8.9 million for the year ended september 30 , 2010 as compared to $ 6.2 million for fiscal year 2009 , an increase of $ 2.7 million , or 43.4 % , primarily due to increased packing expenses of $ 148,000 and advertising expenses of $ 95,000 , resulting from more intensive sales effort during the year ended september 30 , 2010. salaries and welfare increased $ 1.3 million primarily due to increased basic salaries and benefits in response to guidance issued to shenzhen-based companies by relevant local government authorities during the three months ended june 30 , 2010 and effective july 1 , 2010. equity-based compensation included in sales and marketing expenses increased by $ 275,000 due to compensation charges applied to the grant of stock options to employees in our sales department . as a percentage of revenues , sales and marketing expenses have increased to 4.1 % for the year ended september 30 , 2010 , from 2.9 % for fiscal year 2009 , primarily due to the significant increase in revenues supported by marketing and sales . general and administrative expenses . general and administrative expenses increased to $ 27.1 million , or 12.6 % of revenues , for the year ended september 30 , 2010 as compared to $ 22.0 million , or 10.4 % of revenues , for fiscal year 2009 , an increase of $ 5.1 million , or 23.4 % . bad debt expenses increased by $ 2.7 million due to the provision charged following an assessment of account collectability in the fourth quarter of 2010. salaries and welfare increased $ 554,000 primarily due to increased basic salaries and benefits under guidance from the relevant local governments during the year ended september 30 , 2010. we also recognized an exchange loss of $ 1.3 million for the year ended september 30 , 2010 , compared with exchange loss of $ 49,000 for the year ended september 30 , 2009. as described under item 3. legal proceedings  make good settlements we have entered into settlement agreements pursuant to which we have issued shares to certain shareholders that purchased shares in a january 20 , 2005 private placement transaction

