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Bankers Petroleum LTD - Form Annual Financial Statements (Aug-18-1999) PDF
Bankers Petroleum LTD - Form Annual Financial Statements (Aug-18-1999) PDF
We have audited the consolidated balance sheets of Goldpark China Limited as at March 31, 1999
and 1998 and the consolidated statements of operations and deficit and cash flows for the years then
ended. These financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those
standards require that we plan and perform an audit to obtain reasonable assurance whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.
In our opinion, these consolidated financial statements present fairly, in all material respects, the
financial position of the Company as at March 31, 1999 and 1998 and the results of its operations
and its cash flows for the years then ended in accordance with generally accepted accounting
principles.
Chartered Accountants
Toronto, Canada
May 21, 1999, except as to
notes 4 and 8 which are as of
June 11, 1999
GOLDPARK CHINA LIMITED
Consolidated Balance Sheets
1999 1998
Assets
Current assets:
Cash and cash equivalents $ 1,763,664 $ 1,864,845
Accounts receivable 7,751 12,669
Prepaid expenses 4,364 4,364
1,775,779 1,881,878
$ 1,783,722 $ 1,901,934
Shareholders' equity:
Capital stock (note 4) 15,832,537 15,832,537
Contributed surplus 195,698 195,698
Deficit (14,517,513) (14,269,301)
1,510,722 1,758,934
$ 1,783,722 $ 1,901,934
1
GOLDPARK CHINA LIMITED
Consolidated Statements of Operations and Deficit
1999 1998
2
GOLDPARK CHINA LIMITED
Consolidated Statements of Cash Flows
1999 1998
Operations:
Loss for the year $ (248,212) $ (260,543)
Amortization 12,114 23,770
Changes in non-cash working capital items 134,917 54,889
3
GOLDPARK CHINA LIMITED
Notes to Consolidated Financial Statements
These consolidated financial statements include the accounts of the Company and its
wholly owned inactive subsidiaries. All significant intercompany accounts and transactions
have been eliminated.
Cash and cash equivalents include cash deposited in demand deposits at banks and highly
liquid investments with original maturities of 90 days or less.
(c) Amortization:
Capital assets, except automobiles, are depreciated on a straight-line basis over five
years. Automobiles are depreciated on a straight-line basis over four years.
Certain comparative figures have been reclassified to conform with the financial statement
presentation adopted for the current year.
2. Lease commitments:
The Company leases its premises under a lease expiring June 30, 1999. Future minimum
lease payments are $16,000.
4
GOLDPARK CHINA LIMITED
Notes to Consolidated Financial Statements (continued)
3. Capital assets:
1999 1998
Accumulated Net book Net book
Cost amortization value value
4. Capital stock:
1999 1998
Authorized:
Unlimited Class A convertible preference shares
without nominal or par value, convertible to
common shares on a one-for-one basis
Unlimited common shares without nominal
or par value
Issued and fully paid:
18,028,750 common shares $ 15,832,537 $ 15,832,537
In each of the years presented, the common shares issued have been adjusted to reflect the
one-for-two share consolidation approved by the shareholders at the shareholder meeting on
June 11, 1999.
5. Financial instruments:
The fair values of cash and cash equivalents, accounts receivable, accounts payable and
accrued liabilities approximate their carrying values due to the short-term nature of these
items.
5
GOLDPARK CHINA LIMITED
Notes to Consolidated Financial Statements (continued)
6. Income taxes:
The Company has accumulated tax losses available to offset taxable income in future years in
the amount of $2,310,000. These tax losses expire as follows:
2000 $ 527,000
2001 432,000
2002 484,000
2003 57,000
2004 346,000
2005 230,000
2006 234,000
$ 2,310,000
The Year 2000 Issue arises because many computerized systems use two digits rather than
four to identify a year. Date-sensitive systems may recognize the year 2000 as 1900 or some
other date, resulting in errors when information using year 2000 dates is processed. In
addition, similar problems may arise in some systems which use certain dates in 1999 to
represent something other than a date. The effects of the Year 2000 Issue may be
experienced before, on, or after January 1, 2000, and, if not addressed, the impact on
operations and financial reporting may range from minor errors to significant systems failure
which could affect an entity's ability to conduct normal business operations. It is not possible
to be certain that all aspects of the Year 2000 Issue affecting the Company, including those
related to the efforts of customers, suppliers, or other third parties, will be fully resolved.
8. Subsequent event:
On June 11, 1999, the shareholders of the Company approved, at the shareholder meeting,
the issuance of 207,330,625 common shares to acquire Grand Technologies. Grand
Technologies indirectly holds interests in two producing gold mines in China as well as an
exploration/development property in China. Since the shareholders of Grand Technologies will
control a majority of the shares of the combined entities subsequent to the acquisition, the
acquisition will be accounted for as a reverse takeover. In this reverse takeover transaction,
the net assets of the Company are considered to have been acquired by Grand Technologies.
The acquisition will be accounted for using the purchase method of accounting.