Statement of Profit and Loss for the three months ended April 30, 3008

EX-10.30 9 ex10-30.htm EXHIBIT 10.30 ex10-30.htm
 
 
Exhibit 10.30
 
                       
FX rate =
                
QUALYTEXTIL SA - Reconciliation of Brazilian GAAP to US GAAP
                 1.71288  
(h)
            
Statement of Profit and Loss for the three months ended April 30, 2008 (unaudited)
                        
   
Brazilian GAAP
 
  
Reclass-
    
As
    
Translated
      
Adjustments
    
US GAAP
  
   
per internal
  
Notes
  
ifications
    
reclassified
    
to USD
  
Notes
  
in USD
    
in USD
  
   
report in BRL
            
in BRL
                        
                                           
Gross Income
                                          
                                           
Gross sales
     4,796,174               4,796,174                        
Cancellation and taxes on sales
     (1,430,329 )             (1,430,329 )                      
Net sales
     3,365,845         0       3,365,845     $ 1,965,020       $ 0     $ 1,965,020  
                                                     
Cost of sales
     1,664,812                 1,664,812       971,159  
(f)
     (215,622 )     755,537  
                                                     
Gross profit
     1,701,033         0       1,701,033       993,861         215,622       1,209,483  
                                                     
Operating expenses (income):
                                                    
Expenses
     1,609,666                 1,609,666       935,733  
(e)
     (116,087 )     819,646  
Net financial
     165,257  
 (a )
     (327,154 )     (161,897 )     (94,149 )
 (c )
     94,149       0  
Depreciation
     34,591                 34,591       20,255                 20,255  
Other (income) expense
               (15,881 )     (15,881 )     (9,403 )               (9,403 )
                                                     
Operating result
     (108,481 )       343,035       234,554       141,425         237,560       378,985  
                                                     
Interest expense
        
 (a )
     (352,317 )     (352,317 )     (206,440 )               (206,440 )
Interest income
        
 (a )
     25,163       25,163       14,744                 14,744  
Non operating other income / expense
     (6,301 )               (6,301 )     (3,710 )
 (b)
     47,944       44,234  
                                                     
Profit (loss) for the period/year before income tax and social contribution
     (114,782 )       15,881       (98,901 )     (53,981 )       285,504       231,523  
                                                     
Provision for income tax and social contribution
     (27,642 )               (27,642 )     (17,453 )
(g)
     52,760       35,307  
                                                     
Profit (loss) for the period
     (87,140 )       15,881       (71,259 )   $ (36,528 )     $ 232,744     $ 196,216  
 
 
 
 
 
 
Exhibit 10.30
NOTES TO: QUALYTEXTIL SA - Reconciliation of Brazilian GAAP to US GAAP
Three months ended April 30, 2008
 
 (a) Reclassify interest expense and interest income out of "net financial"
        
 (b) Capital reserve reversal recognized as income
(b)
     47,944  
 (c)  Reclassify a government VAT tax incentive as a reduction of cost of goods sold
(c )
     94,149  
 (d) Not used
          
 (e) Net adjustment to administrative expenses
          
  Legal fees not accrued under Brazilian GAAP - difference in opening and ending accruals
       (1,348 )
  Management compensation not accrued under Brazilian GAAP - charge to earlier period
 
    (107,266 )
  Outsourcing sales contractor invoices recorded one month in arrears - difference in opening and ending accruals
 
    15,457  
  Outsourcing labor contractor invoices recorded one month in arrears - reverse beginning accrual
 
    (22,930 )
 (e) Net adjustment to administrative expenses
(e)
     (116,087 )
 (f)  Net adjustment to cost of goods sold
          
  inventory reserve not recorded under Brazilian GAAP - charged to earlier periods
       (73,367 )
  reclassify a government VAT tax incentive (ICMS) as a reduction of cost of goods sold
(c )
     (94,149 )
  Outsourcing labor contractor invoices recorded one month in arrears - reverse beginning  accrual
       (48,106 )
 (f)  Net adjustment to cost of goods sold
(f)
     (215,622 )
 (g)  Income tax accrual to adjust to US GAAP income
(g)
     52,760  
 (h)  The three month statement of profit and loss has been derived from the internally generated monthly financial statements. These financial statements have been translated using the rate applicable to each month. The exchange rate of $1.71288 represents a weighted average of the monthly rates used.