IND DAIRYTECH LIMITED FILES AMENDED FINANCIAL INFORMATION

VANCOUVER, June 29, 2011 /CNW/ -- 
VANCOUVER, June 29, 2011 /CNW/ - IND DairyTech Limited ("IND" or "the
 Company") (TSXV:IND) announces it has filed restatements of previously
 issued financial results and MD&A for the financial years ended
 December 31, 2008 and 2009 and for the three and twelve months ended
 December 31, 2010 (the "Restatements").  The Company issued a press
 release on April 5, 2011 announcing the planned restatements of
 previously issued financial results.


Subsequent to the preparation and filing of the Company's 2009 annual
 financial statements, and the unaudited interim consolidated financial
 statements for the three and twelve months ended December 31, 2010, the
 Company discovered errors in the accounting for three lease agreements
 originally treated as capital leases, including interest on amounts due
 to the lessors. The Company also identified several additional embedded
 derivatives that were not previously reported.


The restatement related to leases is 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 and 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 interest expense
 which was accrued on amounts due to co-op farms in those years. In some
 cases, since the amounts were not received from co-op farms as
 contemplated in the relevant agreements, the Company should not have
 accrued interest on those balances.


Additional embedded derivatives were identified in the Series A
 preferred shares issued in 2009. The additional embedded derivatives
 identified do not result in additional accretion for the year ended
 December 31, 2009. However the amounts previously reported as preferred
 share liability and embedded derivatives of $9,868,318 and $4,700,000
 as at December 31, 2009, respectively, have been restated to $1,130,814
 and $13,437,504 respectively.


Restating the capital leases into operating leases and restating the
 interest expense on amounts due to co-op farms results 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 was reduced by $2,320,377
 and the loss for the year 2009 was increased by $2,666,616.


The change in valuation of the preferred shares liability and embedded
 derivatives has material impact on the unaudited interim consolidation
 financial statements for the periods in 2010 and the previously issued
 audited interim consolidated financial results and MD&A for the period
 ended December 31, 2010 are also restated. The amounts of the preferred
 shares liability and embedded derivatives as at December 31, 2010
 previously reported as $12,268,013 and $3,200,000 have been restated as
 $2,168,223 and $10,097,000.


For details please refer to the Company's Restatements filed on SEDAR.


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.


Neither the TSX Venture Exchange nor its Regulation Services Provider
 (as that term is defined in the policies of the TSX Venture Exchange)
 accepts responsibility for the adequacy or accuracy of this news
 release.


FORWARD LOOKING INFORMATION


Certain information set out in this News Release constitutes
 forward-looking information, which may include information relating to
 estimates of sales and revenue of IND. Forward-looking statements
 (often, but not always, identified by the use of words such as "plan",
 "intend", "expect", "may", "could", "anticipate" or "will" and similar
 expressions) may describe expectations, opinions or guidance that are
 not statements of fact and which may be based upon information provided
 by third parties. 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 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. 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.


 


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table border="0" valign="top" tr valign="top" td align="left" Jesse Zhubr/ Chief Executive Officerbr/ IND DairyTech Limitedbr/ 604-522-1619 /td td align="left" Selen Zhoubr/ Corporate Secretarybr/ IND DairyTech Limitedbr/ 604-522-1619 /td /tr /table p   /p 

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