Reconciliation Statement Between Brazilian GAAP and US GAAP for Qualytextil SA as of April 30, 2008
Summary
This document details the reconciliation of Qualytextil SA's balance sheet from Brazilian GAAP to US GAAP as of April 30, 2008. It outlines the adjustments and reclassifications made to assets, liabilities, and shareholders' equity to comply with US accounting standards. The statement includes translated values in US dollars and provides explanatory notes for each adjustment. The primary parties involved are Qualytextil SA and its auditors. The document is informational and does not impose ongoing obligations or time limits.
EX-10.28 7 v180264_ex10-28.htm
Exhibit 10.28
| FX rate = | | ||||||||||||||||||||||||||||
| QUALYTEXTIL SA - reconciliation of Brazilian GAAP to US GAAP | 1.6872 | ||||||||||||||||||||||||||||
| Balance sheet as of April 30, 2008 | |||||||||||||||||||||||||||||
| Brazilian GAAP | | Reclass- | As | Translated | | Adjustments | US GAAP | ||||||||||||||||||||||
| per Audit | Notes | ifications | reclassified | to USD | Notes | in USD | in USD | ||||||||||||||||||||||
| report in BRL | | in BRL | |||||||||||||||||||||||||||
| ASSETS | 2008 | ||||||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 57,244 | - | 57,244 | $ | 33,928 | $ | - | $ | 33,928 | ||||||||||||||||||||
| Clients | 2,023,192 | - | 2,023,192 | 1,199,142 | - | 1,199,142 | |||||||||||||||||||||||
| Inventories | 3,653,348 | - | 3,653,348 | 2,165,332 | (a) | 1,143,590 | 3,308,922 | ||||||||||||||||||||||
| Taxes recoverable | 202,570 | - | 202,570 | 120,063 | - | 120,063 | |||||||||||||||||||||||
| Prepaid expenses | 130,013 | (f) | (130,013 | ) | - | - | - | - | |||||||||||||||||||||
| Other receivables | 232,612 | (f) | (80,865 | ) | 151,747 | 89,940 | - | 89,940 | |||||||||||||||||||||
| 6,298,979 | (210,878 | ) | 6,088,101 | 3,608,405 | 1,143,590 | 4,751,995 | |||||||||||||||||||||||
| Long term assets | |||||||||||||||||||||||||||||
| Taxes recoverable | 796,325 | - | 796,325 | 471,980 | - | 471,980 | |||||||||||||||||||||||
| Judicial deposits | 197,925 | - | 197,925 | 117,310 | - | 117,310 | |||||||||||||||||||||||
| Other receivables | 27,401 | - | 27,401 | 16,240 | - | 16,240 | |||||||||||||||||||||||
| 1,021,651 | - | 1,021,651 | 605,530 | - | 605,530 | ||||||||||||||||||||||||
| Permanent assets - net | |||||||||||||||||||||||||||||
| Intangible assets - trademarks | - | (f) | 313,094 | 313,094 | 185,570 | - | 185,570 | ||||||||||||||||||||||
| Fixed assets | 2,189,117 | (f) | (86,335 | ) | 2,102,782 | 1,246,315 | - | 1,246,315 | |||||||||||||||||||||
| 2,189,117 | 226,759 | 2,415,876 | 1,431,885 | - | 1,431,885 | ||||||||||||||||||||||||
| Total Assets | 9,509,747 | 15,881 | 9,525,628 | $ | 5,645,820 | $ | 1,143,590 | $ | 6,789,410 | ||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||
| Suppliers | 1,327,681 | 1,327,681 | $ | 786,914 | (a-1) | $ | 1,172,885 | $ | 1,959,799 | ||||||||||||||||||||
| Loans and financing | 1,040,087 | (g) | (1,040,087 | ) | 0 | 0 | |||||||||||||||||||||||
| Debentures bonds and loans | 4,177,976 | (g) | 1,040,087 | 5,218,063 | 3,092,735 | 3,092,735 | |||||||||||||||||||||||
| Taxes and contribution | 1,190,582 | 1,190,582 | 705,656 | (b) | 42,090 | 747,746 | |||||||||||||||||||||||
| Salaries and social charges | 328,644 | 328,644 | 194,787 | 194,787 | |||||||||||||||||||||||||
| Other debts | 304,929 | 304,929 | 180,730 | (c ) | 393,964 | 574,694 | |||||||||||||||||||||||
| 8,369,899 | - | 8,369,899 | 4,960,822 | 1,608,939 | 6,569,761 | ||||||||||||||||||||||||
| Long term liabilities | |||||||||||||||||||||||||||||
| Other debts | 138,663 | - | 138,663 | 82,185 | - | 82,185 | |||||||||||||||||||||||
| 138,663 | - | 138,663 | 82,185 | - | 82,185 | ||||||||||||||||||||||||
| Shareholders' equity | |||||||||||||||||||||||||||||
| Paid in Capital | 1,507,701 | 1,507,701 | 893,611 | 893,611 | |||||||||||||||||||||||||
| Capital reserves | 712,909 | 712,909 | 422,540 | (e) | (47,944 | ) | 374,596 | ||||||||||||||||||||||
| Accumulated losses | (1,219,426 | ) | 15,881 | (1,203,545 | ) | (713,338 | ) | (d) | (417,405 | ) | (1,130,743 | ) | |||||||||||||||||
| 1,001,184 | 15,881 | 1,017,065 | 602,813 | (465,349 | ) | 137,464 | |||||||||||||||||||||||
| Total Liabilities and Shareholders` Equity | 9,509,746 | 15,881 | 9,525,627 | $ | 5,645,820 | $ | 1,143,590 | $ | 6,789,410 | ||||||||||||||||||||
Exhibit 10.28
NOTES TO: QUALYTEXTIL SA - reconciliation of Brazilian GAAP to US GAAP
Balance sheet as of April 30, 2008
| (a) | Inventory reserve | (29,295) | |||
| Inventory in transit (a-1) | (a-1) | 1,172,885 | |||
| Total adjustment to inventory | (a) | 1,143,590 | |||
| (b) | Tax accrual based on US GAAP income | (b) | 42,090 | ||
| (c) | Legal fees not accrued under Brazilian GAAP | 53,343 | |||
| Misc. labor accrual | 9,888 | ||||
| Installment plan taxes not accrued - outsourcing sales contractor | 271,353 | ||||
| Installment plan taxes not accrued - outsourcing labor contractor | 43,923 | ||||
| Sales representative commission not accrued | 15,457 | ||||
| Total adjustment to other debts | (c) | 393,964 | |||
| (d) | Tax accrual based on US GAAP income | (42,090) | |||
| Various accruals per (c ) above | (393,964) | ||||
| Capital reserve reversal recognized as income | 47,944 | ||||
| Inventory reserve | (29,295) | ||||
| Net adjustment to accumulated losses | (d) | (417,405) | |||
| (e) | Capital reserve reversal recognized as income | (e) | (47,944) | ||
| (f) | To reclassify as intangible assets for trademarks and tradenames | ||||
| (g) | To combine debt onto one line item | ||||
