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Previous: CRYOPAK INDUSTRIES INC, 20-F, EX-2., 2000-10-17 |
Next: CRYOPAK INDUSTRIES INC, 20-F, EX-2.4, 2000-10-17 |
NORTHLAND CUSTOM PACKAGING INC.
Financial Statements (Unaudited)
Six Months Ended February 29, 2000
and Review Engagement Report
<PAGE>
REVIEW ENGAGEMENT REPORT
To the Directors of
Cryopak Industries Inc.
We have reviewed the balance sheet of Northland Custom Packaging Inc. as at
February 29, 2000 and the statements of income and retained earnings and of cash
flows for the six months then ended. Our review was made in accordance with
generally accepted standards for review engagements and accordingly consisted
primarily of enquiry, analytical procedures and discussion related to
information supplied to us by the company.
A review does not constitute an audit and consequently we do not express an
audit opinion on these financial statements.
Based on our review, nothing has come to our attention that causes us to believe
that these financial statements are not, in all material respects, in accordance
with generally accepted accounting principles.
Vancouver, B.C.
May 25, 2000
<PAGE>
NORTHLAND CUSTOM PACKAGING INC.
Statement of Income and Retained Earnings
(Unaudited)
Six Months Ended February 29, 2000
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
February 29, August 31,
2000 1999
---- ----
<S> <C> <C>
Sales $ 380,548 $ 701,074
Cost of Sales
Purchases 51,780 49,745
Labour 267,048 246,249
318,828 295,994
Gross Profit 61,720 405,080
Expenses
Administration fees - 24,000
Advertising and promotion 1,273 3,243
Amortization 20,965 32,311
Bad debts 1,052 5,042
Bank charges and interest 266 1,760
Commissions 4,160 -
Employee benefits 1,330 -
Machinery rental 25,547 47,770
Management salaries - 212,000
Office and miscellaneous 651 477
Professional fees 10,221 7,065
Rent 10,920 32,100
Repairs and maintenance 3,584 23,403
Shop supplies 3,336 2,018
Travel and automotive 1,909 5,915
85,214 397,104
Net (Loss) Income for the Period (23,494) 7,976
Retained Earnings, Beginning of Period 160,404 167,428
Dividends Paid - (15,000)
Retained Earnings, End of Period $ 136,910 $ 160,404
</TABLE>
<PAGE>
NORTHLAND CUSTOM PACKAGING INC.
Balance Sheet
(Unaudited)
February 29, 2000
<TABLE>
<CAPTION>
February 29, August 31,
2000 1999
---- ----
<S> <C> <C>
ASSETS
Current
Cash $ 133,573 $ 80,310
Accounts receivable 217,094 154,425
Income taxes recoverable 31,972 31,972
Prepaid expenses 401 401
383,040 267,108
Capital Assets (Note 3) 175,046 194,634
$ 558,086 $ 461,742
LIABILITIES
Current
Accounts payable and accrued liabilities $ 121,407 $ 17,567
Bonus payable - 212,000
121,407 229,567
Due to Shareholder 72,923 8,429
Due to Northland Ice Gel Inc. (Note 4) 226,845 63,341
421,175 301,337
SHAREHOLDERS' EQUITY
Share Capital
Authorized
10,000 common shares without par value
Issued and outstanding
100 common shares 1 1
Retained Earnings 136,910 160,404
136,911 160,405
$ 558,086 $ 461,742
</TABLE>
<PAGE>
NORTHLAND CUSTOM PACKAGING INC.
Statement of Cash Flows
(Unaudited)
Six Months Ended February 29, 2000
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
February 29, August 31,
2000 1999
---- ----
<S> <C> <C>
Cash Flows From (Used In) Operating Activities
Income (loss) for the period $ (23,494) $ 7,976
Adjustment for amortization of capital assets 20,965 32,311
(2,529) 40,287
Changes in non-cash working capital
Increase in accounts receivable (62,669) (94,195)
Increase in accounts payable 103,840 5,878
Increase (decrease) in bonus payable (212,000) 212,000
Increase in prepaid expenses - (401)
Increase in income taxes recoverable - (59,091)
Increase in due to Northland Ice Gel Inc. 163,504 24,477
(7,325) 88,668
Cash flows from (used in) operating activities (9,854) 128,955
Cash Flows (Used In) Investing Activities
Purchase of equipment (1,377) (70,452)
Cash flows used in investing activities (1,377) (70,452)
Cash Flows From (Used In) Financing Activities
Loan from shareholder 64,494 7,136
Dividend paid - (15,000)
Cash flows from (used in) financing activities 64,494 (7,864)
Net Increase in Cash 53,263 50,639
Cash, Beginning of Period 80,310 29,671
Cash, End of Period $ 133,573 $ 80,310
</TABLE>
<PAGE>
NORTHLAND CUSTOM PACKAGING INC.
Notes to Financial Statements
(Unaudited)
February 29, 2000
1. OPERATIONS
The company was incorporated on February 3, 1993 under the laws of the
Province of British Columbia. The company's primary business is packaging.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Capital Assets
Capital assets are recorded at cost. Amortization has been provided over
the estimated useful ives of the assets using the following methods:
<TABLE>
<CAPTION>
<S> <C>
Machinery and equipment 20% declining balance
Leasehold improvements 5 year straight line
</TABLE>
Assets acquired during the year are amortized at one-half of the above
rates.
Cash Equivalents
The company considers all highly liquid investments with original
maturities of less than ninety days to be cash equivalents. Cash
equivalents are recorded at cost, including accrued interest, which
approximates market value.
Financial Instruments
The fair values of the financial instruments approximate their carrying
value except as otherwise disclosed in the financial statements.
Foreign Currency Translation
Monetary items denominated in foreign currencies are translated into
Canadian dollars using exchange rates in effect at the balance sheet date.
All other assets and liabilities are translated at rates prevailing when
the asset was acquired or liabilities incurred. Income and expense items
are translated at the exchange rates in effect on the date of the
transaction. Resulting exchange gains and losses are included in the
determination of loss for the period.
Revenue Recognition
Revenue is recognized when an invoice is prepared.
Income Taxes
The company uses the deferred tax allocation method in accounting for
income taxes.
<PAGE>
NORTHLAND CUSTOM PACKAGING INC.
Notes to Financial Statements
(Unaudited)
February 29, 2000
3. CAPITAL ASSETS
<TABLE>
<CAPTION>
2000 1999
Accumulated Net Book Net Book
Cost Amortization Value Value
---- ------------ ----- -----
<S> <C> <C> <C> <C>
Machinery and equipment $ 248,082 $ 93,810 $ 154,272 $ 169,959
Leasehold improvements 39,010 18,236 20,774 24,675
$ 287,092 $ 112,046 $ 175,046 $ 194,634
</TABLE>
4. RELATED PARTY TRANSACTIONS
The company paid the following amounts during the six months ended February
29, 2000 to Northland Ice Gel Inc., a company owned 100% by one of the
shareholders of the company:
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
February 29, August 31,
2000 1999
---- ----
<S> <C> <C>
Labour $ 267,048 $ 232,173
Purchases 8,750 8,231
Rent 5,370 30,000
Machinery rental 12,000 24,000
Administration - 24,000
$ 293,168 $ 318,404
</TABLE>
The amount due to Northland Ice Gel Inc. is without interest or fixed terms
of repayment.
5. COMPARATIVE FIGURES
The prior year's figures were prepared by another firm of chartered
accountants without audit or review.
Certain of the prior year's figures were reclassified for comparative
purposes.
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