IND DAIRYTECH LIMITED ANNOUNCES PLANNED RESTATEMENT OF FINANCIAL RESULTS

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.


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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 

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