IND DAIRYTECH LIMITED ANNOUNCES PLANNED RESTATEMENT OF FINANCIAL RESULTS
April 11 2011 - 4:01PM
PR Newswire (Canada)
VANCOUVER, April 11 /CNW/ -- VANCOUVER, April 11 /CNW/ - IND
DairyTech Limited ("IND" or "the Company") (TSXV: IND) announces
that it intends to restate and refile its consolidated annual
financial statements and MD&A for the years ended, December 31,
2008 and December 31, 2009. The restatements are 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 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 due to co-op farms received or
receivable in those years and has determined there needs to be
restatements of the interest expenses recorded in those years,
which will have a material impact on the results of operations for
the Company for those years. These potential restatements
were previously disclosed by the Company in its interim financial
statements and MD&A for the three and twelve months ended
December 31, 2010. The Company further advises that it is in the
process of determining whether a restatement is required relating
to the valuation of certain embedded derivative features in the
Company's Series A Preferred Share investment agreements with SAIF
III Partners L.P. ("SAIF"). Due to the complexity of this
derivative valuation, the Company cannot predict at this time what
the potential impact, if any, the valuation of the embedded
derivatives will have on previous financial results reported by the
Company. Restating the capital leases into operating leases and
restating the interests expenses will result 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 will be reduced
by $2,320,377 and the loss for the year 2009 will be increased by
$2,666,616. The impacts of the possible restatement of the
derivatives has not been determined at this moment. If the possible
restatements for the derivatives will have material impacts on the
December 31, 2009 consolidated financial statements and the 2010
interim consolidated financial statements, such impacts will be
incorporated in the restatements for those periods. The Company is
also working with its current auditors for the audit of the year
ended March 31, 2011. The restatements are expected to be completed
before the release of the audited March 31, 2011 consolidated
financial statements. 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. The TSX Venture Exchange has not reviewed and does
not accept responsibility for the adequacy or accuracy of this
release. FORWARD LOOKING INFORMATION Certain information set out in
this News Release constitutes forward-looking information.
Forward-looking statements (often, but not always, identified by
the use of words such as "expect", "may", "could", "anticipate" or
"will" and similar expressions) may describe expectations, opinions
or guidance that are not statements of fact. 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 based on certain assumptions and 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. Factors which could cause results or events to
differ from current expectations include, among other things: the
timing, impact and outcome of the planned restatement of our
previously announced or filed financial results; our ability to
meet our filing obligation going forwards; our ability to work with
our auditors to arrive at a satisfactory and timely outcome on the
restatement of our financial statements; cash flows and compliance
with our covenants set out in the investment agreements signed by
the Company and its subsidiaries. For additional information with
respect to certain of these and other factors, please see the most
recent financial statements and MD&A filed by us on SEDAR
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.
Except as required by applicable laws, the Company hereby disclaims
any intention or obligation to update or revise any forward-looking
statements. To view this news release in HTML formatting, please
use the following URL:
http://www.newswire.ca/en/releases/archive/April2011/11/c3149.html
p /p table valign="top" border="0" tr valign="top" td align="left"
nowrap="nowrap" Jesse Zhubr/ Chief Executive Officerbr/ IND
DairyTech Limitedbr/ 604-522-1619 /td td align="left"
nowrap="nowrap" /td td align="right" nowrap="nowrap"
/td td align="right" nowrap="nowrap" /td td align="right"
nowrap="nowrap" /td td align="right" nowrap="nowrap"
/td td align="right" nowrap="nowrap" /td td align="right"
nowrap="nowrap" /td td align="right" nowrap="nowrap"
/td td align="right" nowrap="nowrap" /td td align="right"
nowrap="nowrap" /td td align="left" nowrap="nowrap" Selen
Zhoubr/ Corporate Secretarybr/ IND DairyTech Limitedbr/
604-522-1619 /td /tr /table p /p
Copyright
Indy Diarytech Limited Com (TSXV:IND)
Historical Stock Chart
From Jul 2024 to Aug 2024
Indy Diarytech Limited Com (TSXV:IND)
Historical Stock Chart
From Aug 2023 to Aug 2024