IND DAIRYTECH LIMITED FILES AMENDED FINANCIAL INFORMATION
June 29 2011 - 7:00AM
PR Newswire (Canada)
VANCOUVER, June 29, 2011 /CNW/ -- VANCOUVER, June 29, 2011 /CNW/ -
IND DairyTech Limited ("IND" or "the Company") (TSXV:IND) announces
it has filed restatements of previously issued financial results
and MD&A for the financial years ended December 31, 2008 and
2009 and for the three and twelve months ended December 31, 2010
(the "Restatements"). The Company issued a press release on
April 5, 2011 announcing the planned restatements of previously
issued financial results. Subsequent to the preparation and filing
of the Company's 2009 annual financial statements, and the
unaudited interim consolidated financial statements for the three
and twelve months ended December 31, 2010, the Company discovered
errors in the accounting for three lease agreements originally
treated as capital leases, including interest on amounts due to the
lessors. The Company also identified several additional embedded
derivatives that were not previously reported. The restatement
related to leases is a result of a re-assessment of the accounting
for certain lease agreements with initial values of $5,817,884
(RMB42,999,980) as at December 31, 2007 and for the years ended
December 31, 2008 and 2009 that were initially treated as capital
leases that the Company has since determined to be operating
leases. The Company has also reviewed the related amounts of
interest expense which was accrued on amounts due to co-op farms in
those years. In some cases, since the amounts were not received
from co-op farms as contemplated in the relevant agreements, the
Company should not have accrued interest on those balances.
Additional embedded derivatives were identified in the Series A
preferred shares issued in 2009. The additional embedded
derivatives identified do not result in additional accretion for
the year ended December 31, 2009. However the amounts previously
reported as preferred share liability and embedded derivatives of
$9,868,318 and $4,700,000 as at December 31, 2009, respectively,
have been restated to $1,130,814 and $13,437,504 respectively.
Restating the capital leases into operating leases and restating
the interest expense on amounts due to co-op farms results in the
December 31, 2008 capital lease assets being reduced by $7,203,696,
capital lease obligations reduced by $7,718,539, and interest
payable reduced by $2,152,046. The loss for the year 2008 was
reduced by $2,320,377 and the loss for the year 2009 was increased
by $2,666,616. The change in valuation of the preferred shares
liability and embedded derivatives has material impact on the
unaudited interim consolidation financial statements for the
periods in 2010 and the previously issued audited interim
consolidated financial results and MD&A for the period ended
December 31, 2010 are also restated. The amounts of the preferred
shares liability and embedded derivatives as at December 31, 2010
previously reported as $12,268,013 and $3,200,000 have been
restated as $2,168,223 and $10,097,000. For details please refer to
the Company's Restatements filed on SEDAR. About IND DairyTech
Limited IND, through its operating subsidiaries, is an emerging raw
milk and Holsteins producer in China that is seeking to become a
leading provider of high quality raw milk and Holsteins to the
Chinese dairy industry. To meet China's increasing demand for dairy
products, the Company is using Canadian cattle genetics and North
American farming practices to establish and develop its dairy herd
in China. The Company plans to develop its herd in China through
the use of advanced breeding techniques employing Canadian Holstein
embryos that it intends to use to impregnate surrogate cows. These
embryos have been created through in vitro fertilization using
sexed semen to achieve an approximate 90% female birth rate. The
use of these advanced breeding techniques is expected to allow the
Company to rapidly expand its herd. The use of Canadian Holstein
embryos also provides a practical solution to China's ban on the
import of live Canadian cattle. Neither the TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this news release. FORWARD LOOKING
INFORMATION Certain information set out in this News Release
constitutes forward-looking information, which may include
information relating to estimates of sales and revenue of IND.
Forward-looking statements (often, but not always, identified by
the use of words such as "plan", "intend", "expect", "may",
"could", "anticipate" or "will" and similar expressions) may
describe expectations, opinions or guidance that are not statements
of fact and which may be based upon information provided by third
parties. Forward-looking statements are based upon the opinions,
expectations and estimates of management of the Company as at the
date the statements are made and are subject to a variety of known
and unknown risks and uncertainties and other factors that could
cause actual events or outcomes to differ materially from those
anticipated or implied by such forward-looking statements. In light
of the risks and uncertainties associated with
forward-looking statements, readers are cautioned not to place
undue reliance upon forward-looking information. Although the
Company believes that the expectations reflected in the
forward-looking statements set out in this press release or
incorporated herein by reference are reasonable, it can give no
assurance that such expectations will prove to have been correct.
The forward-looking statements of the Company contained in this
press release, or incorporated herein by reference, are expressly
qualified, in their entirety, by this cautionary statement.
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table border="0" valign="top" tr valign="top" td align="left" Jesse
Zhubr/ Chief Executive Officerbr/ IND DairyTech Limitedbr/
604-522-1619 /td td align="left" Selen Zhoubr/ Corporate
Secretarybr/ IND DairyTech Limitedbr/ 604-522-1619 /td /tr /table p
/p
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