-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OBeili62OOeNanhH0AaQB+8THjUWdKQVPnp6s26I8u7pQT0zIllW/38rqDCDrEmE VPY2T5VhGS3J9IyM/PqBYg== 0001019687-08-000439.txt : 20080205 0001019687-08-000439.hdr.sgml : 20080205 20080205123854 ACCESSION NUMBER: 0001019687-08-000439 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20071029 ITEM INFORMATION: Completion of Acquisition or Disposition of Assets ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080205 DATE AS OF CHANGE: 20080205 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Nascent Wine Company, Inc. CENTRAL INDEX KEY: 0001310213 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-BEER, WINE & DISTILLED ALCOHOLIC BEVERAGES [5180] IRS NUMBER: 820576512 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 333-120949 FILM NUMBER: 08575129 BUSINESS ADDRESS: STREET 1: 2355-A PASEO DE LAS AMERICAS CITY: SAN DIEGO STATE: CA ZIP: 92154 BUSINESS PHONE: (619) 661-0458 MAIL ADDRESS: STREET 1: 2355-A PASEO DE LAS AMERICAS CITY: SAN DIEGO STATE: CA ZIP: 92154 8-K/A 1 nascent_8ka-012808.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K/A CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of earliest event reported: OCTOBER 29, 2007 NASCENT WINE COMPANY, INC. (Exact name of Registrant as specified in charter) NEVADA 333-120949 82-0576512 (State of Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 2355-A PASEO DE LAS AMERICAS SAN DIEGO, CALIFORNIA 92154 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (619) 661-0458 (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS This Current Report on Form 8-KA amends the Current Report on Form 8-K filed by Nascent Wine Company, Inc. (the "Company") with the Securities and exchange commission dated October 29, 2007 (as the "Original 8-K") in connection with the entering into and closing of the Stock Purchase Agreement with Comercial Targa, S.A. de C.V. (the "Company"), Julia Olavarri de Arana ("Olavarri de Arana"), Luis I. Arana Olavarri and Juan Carlos Arana Olavarri (collectively, the "Sellers") to purchase all of the issued and outstanding capital stock of the Company (except one share which will be held by Rafael Morales Cuevas as nominee shareholder in accordance with applicable Mexican law) (the "Acquisition"). The Current Report of form 8-K did not include the financial statements and pro forma financial information of the business acquired. The Current Report on Form 8-KA is filed to provide the financial statements of the business acquired required by Item 9.01 (a) and pro forma financial information required by Item 9.01 (b) of Form 8-K. . ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. (a) Financial statements of business acquired. The following financial statements of Comercial Targa, S.A. de C.V and notes thereto, in Spanish and pesos are included as Exhibit 99.1 to this Form 8-K/A and are incorporated by reference to this Form 8-K/A: (i) Report of Jose Fabian Carrillo Villarreal , an independent public Mexican accountant, and Audited Balance Sheet, Statements of Operations, Statements of Stockholders' Equity, Statements of Cash Flows and Notes to the Financial Statements for the years ended December 31, 2006 and 2005; in Spanish and pesos and (ii) Translation of report, Balance Sheets, Statement of Operations, Statements of Stockholders' equity, Statement of Cash Flows, and Notes to the Financial Statements for the years ended. December 31, 2006 ad 2005 translated into English and converted to U. S. dollars (iii) Unaudited financial statements for the nine months ended September 30, 2007 (b) Pro forma financial information. The following pro forma financial information of Nascent Wine Company, Inc. and Subsidiaries/ Comercial Targa, S.A. de C.V., and notes thereto, are included as Exhibit 99.2 to this Form 8-K/A and are incorporated by reference to this Form 8-K/A: (i) Unaudited Pro Forma Balance Sheet as of September 30, 2007, Unaudited Pro Forma Statement of Operations for the nine months ended September 30, 2007 and Unaudited Notes to Pro Forma Financial Statements for the nine months ended September 30, 2007; and (ii) Unaudited Pro Forma Balance Sheet as of December 31, 2006, Unaudited Pro Forma Statements of Operations for the year ended December 31, 2006 and Unaudited Notes to Pro Forma Financial Statements for the year ended December 31, 2006. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Nascent Wine Company, Inc. ------------------------------------ (Registrant) Date: February 5, 2008 By: /s/ Sandro Piancone ------------------------------------ Name: Sandro Piancone Its: Chief Executive Officer 3 EX-99.1 2 nascent_8ka-ex9901.txt FINANCIAL STATEMENTS OF BUSINESS ACQUIRED EXHIBIT 99.1 (i) A LOS SENORES ACCIONISTAS DE: COMERCIAL TARGA, S.A. DE C.V. HE EXAMINADO LOS ESTADOS DE SITUACION FINANCIERA DE COMERCIAL TARGA S.A. DE C.V., AL 31 DE DICIEMBRE DE 2006 Y 2005 Y LOS ESTADOS DE RESULTADOS, DE VARIACIONES EN EL CAPITAL CONTABLE Y DE CAMBIOS EN LA SITUACION FINANCIERA, QUE LES SON RELATIVOS , POR EL ANO QUE TERMINO EN ESA FECHA, INCLUIDOS EN LOS ANEXOS DEL 1 AL 4.1 DEL SISTEMA DE PRESENTACION DEL DICTAMEN FISCAL 2006 ("SIPRED 2006"), ENVIADOS A LA ADMINISTRACION LOCAL DE AUDITORIA FISCAL DE TIJUANA VIA INTERNET. DICHOS ESTADOS FINANCIEROS SON RESPONSABILIDAD DE LA ADMINISTRACION DE LA COMPANIA. MI RESPONSABILIDAD CONSISTE EN EXPRESAR UNA OPINION SOBRE LOS MISMOS CON BASE EN MI AUDITORIA. MIS EXAMENES FUERON REALIZADOS DE ACUERDO CON LAS NORMAS DE AUDITORIA GENERALMENTE ACEPTADAS EN MEXICO, LAS CUALES REQUIEREN QUE LA AUDITORIA SEA PLANEADA Y REALIZADA DE TAL MANERA QUE PERMITA OBTENER UNA SEGURIDAD RAZONABLE DE QUE LOS ESTADOS FINANCIEROS NO CONTIENEN ERRORES IMPORTANTES, Y DE QUE ESTAN PREPARADOS DE ACUERDO CON LOS PRINCIPIOS DE CONTABILIDAD GENERALMENTE ACEPTADOS EN MEXICO. LA AUDITORIA CONSISTE EN EL EXAMEN, CON BASE EN PRUEBAS SELECTIVAS, DE LA EVIDENCIA QUE SOPORTA LAS CIFRAS Y REVELACIONES DE LOS ESTADOS FINANCIEROS; ASIMISMO, INCLUYE LA EVALUACION DE LAS NORMAS DE INFORMACION FINANCIERA, DE LAS ESTIMACIONES SIGNIFICATIVAS EFECTUADAS POR LA ADMINISTRACION Y DE LA PRESENTACION DE LOS ESTADOS FINANCIEROS TOMADOS EN SU CONJUNTO. CONSIDERO QUE MIS EXAMENES PROPORCIONAN UNA BASE RAZONABLE PARA SUSTENTAR MI OPINION. LOS ESTADOS FINANCIEROS ANTES MENCIONADOS HAN SIDO PREPARADOS PARA SER UTILIZADOS POR LA ADMINISTRACION LOCAL DE AUDITORIA FISCAL FEDERAL DE TIJUANA ("AGAFF"), POR LO QUE SE HAN PRESENTADO, CLASIFICADO Y CAPTURADO CONFORME AL FORMATO DEL SISTEMA DE PRESENTACION DEL DICTAMEN FISCAL PARA 2006 (SIPRED 2006), PROGRAMA PROPORCIONADO POR EL SERVICIO DE ADMINISTRACION TRIBUTARIA, QUE PARA TAL EFECTO HA DISENADO ESA ADMINISTRACION Y POR LO TANTO PODRIAN NO SER UTILES PARA OTROS PROPOSITOS COMO SE MENCIONA EN LA NOTA 1 A LOS ESTADOS FINANCIEROS AL 31 DE DICIEMBRE DE 2006, ESTOS NO RECONOCEN LOS EFECTOS DE LA INFLACION EN LA INFORMACION FINANCIERA QUE SON REQUERIDOS POR LAS NORMAS DE INFORMACION FINANCIERA, LOS CUALES SE CONSIDERAN IMPORTANTES EN ATENCION AL MONTO Y ANTIGUEDAD DE LOS ACTIVOS NO MONETARIOS, DE LA INVERSION DE LOS ACCIONISTAS Y DE LA POSICION MONETARIA PROMEDIO MANTENIDA DURANTE AMBOS EJERCICIOS. EN MI OPINION, EXCEPTO POR LA FALTA DE RECONOCIMIENTO DE LOS EFECTOS DE LA INFLACION EN LA INFORMACION FINANCIERA, SEGUN SE EXPLICA EN EL PARRAFO ANTERIOR, LOS ESTADOS FINANCIEROS ANTES MENCIONADOS PRESENTAN RAZONABLEMENTE, EN TODOS LOS ASPECTOS IMPORTANTES, LA SITUACION FINANCIERA DE COMERCIAL TARGA, S.A. DE C.V. AL 31 DE DICIEMBRE DE 2006 Y 2005, LOS RESULTADOS DE SUS OPERACIONES, LAS VARIACIONES EN EL CAPITAL CONTABLE Y LOS CAMBIOS EN LA SITUACION FINANCIERA POR LOS ANOS TERMINADOS EN ESAS FECHAS, DE CONFORMIDAD CON LAS NORMAS DE INFORMACION FINANCIERA. C.P.C JOSE FABIAN CARRILLO VILLARREAL REGISTRO EN LA ADMINISTRACION GENERAL DE AUDITORIA FISCAL FEDERAL NO 6386 TIJUANA, BAJA CALIFORNIA, 13 DE ABRIL DE 2007. COMERCIAL TARGA S.A. DE C.V. ESTADO DE POSICION FINANCIERA AL 31 DE DICIEMBRE DE 2006 Y DE 2005 CONCEPTO 2006 2005 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (CIFRAS EN PESOS) - -------------------------------------------------------------------------------- ACTIVO - -------------------------------------------------------------------------------- ACTIVO CIRCULANTE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- EFECTIVO EN CAJA Y BANCOS 1,722,319 2,972,617 - -------------------------------------------------------------------------------- CLIENTES 11,697,191 12,104,624 - -------------------------------------------------------------------------------- IMPUESTOS POR RECUPERAR 1,980,013 1,552,939 - -------------------------------------------------------------------------------- DEUDORES DIVERSOS 49,351 113,246 - -------------------------------------------------------------------------------- IMPAC POR RECUPERAR 2003,2004,2006 1,075,810 1,025,644 - -------------------------------------------------------------------------------- INVENTARIOS 10,146,169 7,452,891 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- TOTAL DEL ACTIVO CIRCULANTE 26,670,853 25,221,961 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- ACTIVO FIJO - -------------------------------------------------------------------------------- TERRENOS - -------------------------------------------------------------------------------- EDIFICIOS - -------------------------------------------------------------------------------- MAQUINARIA 4,487,484 4,484,831 - -------------------------------------------------------------------------------- EQUIPO DE TRANSPORTE 1,217,877 1,178,127 - -------------------------------------------------------------------------------- MOBILIARIO Y EQUIPO 50,331 50,332 - -------------------------------------------------------------------------------- EQUIPO DE COMPUTO 12,593 12,593 - -------------------------------------------------------------------------------- EQUIPO DE PROMOCION Y VENTAS 42,094 42,094 - -------------------------------------------------------------------------------- TOTAL DE INMUEBLES, MAQUINARIA Y EQUIPO 5,810,379 5,767,977 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- DEPRECIACIONES - -------------------------------------------------------------------------------- DEPRECIACION ACUMULADA DE MAQUINARIA 1,156,650 708,100 - -------------------------------------------------------------------------------- DEPRECIACION ACUMULADA DE EQUIPO DE TRANSPORTE 981,883 903,293 - -------------------------------------------------------------------------------- DEPRECIACION ACUMULADA DE MOBILIARIO Y EQUIPO 29,775 25,993 - -------------------------------------------------------------------------------- DEPRECIACION ACUMULADA DE EQUIPO DE COMPUTO 12,594 10,421 - -------------------------------------------------------------------------------- DEPRECIACION ACUMULADA DE PROMOCION Y VENTAS 31,571 27,362 - -------------------------------------------------------------------------------- TOTAL DE DEPRECIACION ACUMULADA 2,212,473 1,675,169 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- TOTAL DE INMUEBLES, MAQUINARIA Y EQUIPO NETO 3,597,906 4,092,808 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- ACTIVOS INTANGIBLES - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- GASTOS PREOPERATIVOS - -------------------------------------------------------------------------------- DEPOSITOS EN GARANTIA 179,317 179,317 - -------------------------------------------------------------------------------- IVA ACREDITABLE PENDIENTE POR COBRAR 64,693 - -------------------------------------------------------------------------------- MEJORAS AL LOCAL ARRENDADO 323,022 323,022 - -------------------------------------------------------------------------------- AMORTIZACIONES (56,602) (40,475) - -------------------------------------------------------------------------------- TOTAL DE ACTIVOS INTANGIBLES 510,430 461,864 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- TOTAL DEL ACTIVO 30,779,189 29,776,633 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PASIVO - -------------------------------------------------------------------------------- PASIVO A CORTO PLAZO - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- ACREEDORES DIVERSOS 248,270 311,582 - -------------------------------------------------------------------------------- PROVEEDORES 27,095,037 22,602,341 - -------------------------------------------------------------------------------- IMPUESTO SOBRE LA RENTA 107,615 102,888 - -------------------------------------------------------------------------------- OTROS IMPUESTOS Y CONTRIBUCIONES 137,811 92,148 - -------------------------------------------------------------------------------- PARTICIPACION DE UTILIDADES 0 366,114 - -------------------------------------------------------------------------------- IVA TRASLADADO PENDIENTE POR COBRAR 182,480 159,889 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- TOTAL DEL PASIVO A CORTO PLAZO 27,771,213 23,634,962 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CAPITAL CONTABLE - -------------------------------------------------------------------------------- CAPITAL SOCIAL PROVENIENTE DE APORTACIONES 6,137,426 6,740,643 - -------------------------------------------------------------------------------- RESERVA LEGAL 442,059 417,686 - -------------------------------------------------------------------------------- UTILIDAD NETA O (PERDIDA) DEL EJERCICIO (2,530,478) 487,458 - -------------------------------------------------------------------------------- PERDIDA RETENIDAS DE EJERCICIOS ANTERIORES (1,041,,031)(1,504,116) - -------------------------------------------------------------------------------- PERDIDAS ACUMULADAS DE EJERCICIOS ANTERIORES (3,571,509) (1,016,658) - -------------------------------------------------------------------------------- TOTAL DEL CAPITAL CONTABLE 3,007,976 6,141,671 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- TOTAL DEL PASIVO Y DEL CAPITAL CONTABLE 30,779,189 29,776,633 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- LAS NOTAS ADJUNTAS SON PARTE INTEGRANTE DE ESTE ESTADO FINANCIERO COMERCIAL TARGA S.A. DE C.V. ESTADO DE RESULTADOS POR LOS EJERCICIOS COMPRENDIDOS DEL 1 DE ENERO AL 31 DE DICIEMBRE DE 2006 Y DE 2005 (CIFRAS EN PESOS) 2006 2005 ------------------------------------- VENTAS 73,962,201 67,142,185 COSTO DE VENTAS 60,395,946 50,308,554 ------------------------------------- UTILIDAD DE OPERACION 13,566,255 16,833,631 GASTOS DE ADMINISTRACION 11,546,381 10,405,451 ------------------------------------- PERDIDAS ANTES DE OTROS INGRESOS Y GASTOS: 2,019,874 6,428,180 OTROS INGRESOS Y (GASTOS): GASTOS DE FINANCIAMIENTO (4,550,352) (4,394,832) PROVISIONES PARA IMPUESTOS -- (1,545,890) ------------------------------------- UTILIDAD (PERDIDA) NETA (2,530,478) 487,458 ===================================== LAS NOTAS ADJUNTAS SON PARTE INTEGRANTE DE ESTE ESTADO FINANCIERO
(PERDIDAS) ACUMULADAS DE CONCEPTO CAPITAL SOCIAL RESERVA EJERCICIOS NOMINAL LEGAL ANTERIORES TOTAL - ----------------------------------------------------------------------------------------------------------- SALDOS AL 31 DE DICIEMBRE DE 2004 2,938,684 417,686 (2,096,630) 1,259,740 - ----------------------------------------------------------------------------------------------------------- AUMENTO O DISMINUCION DEL CAPITAL SOCIAL 3,801,959 3,801,959 - ----------------------------------------------------------------------------------------------------------- ACREDITAMIENTO DE ISR PAGADO EN 2002 592,514 592,514 POR DIVIDENDOS DISTRIBUIDOS DE LA NO CUFIN Y QUE DE ACUERDO CON EL ART. 11 DE LISR VIGENTE EN ESE ANO, PUEDO UTILIZARLO CONTRA EL ISR EJERCICIO 2005. - ----------------------------------------------------------------------------------------------------------- UTILIDAD NETA DE 2005 487,458 487,458 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- SALDOS AL 31 DE DICIEMBRE DE 2005 6,740,643 417,686 (1,016,658) 6,141,671 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- TRASPASO 24,373 (24,373) 0 - ----------------------------------------------------------------------------------------------------------- UTILIDAD NETA O PERDIDA DE 2006 (2,530,478 (2,530,478) - ----------------------------------------------------------------------------------------------------------- CORRECCION AL AUMENTO DE CAPITAL (603,217) (603,217) - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- SALDOS AL 31 DE DICIEMBRE DE 2006 6,137,426 442,059 (3,571,509) 3,007,976 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- LAS NOTAS ADJUNTAS SON PARTE INTEGRANTE DE ESTE ESTADO FINANCIERO
- ---------------------------------------------------------------------------------------------------------------------------------- COMERCIAL TARGA S.A. DE C.V. ESTADO DE CAMBIOS EN LA SITUACION FINANCIERA POR LOS EJERCICIOS TERMINADOS AL 31 DE DICIEMBRE DE 2006 Y DE 2005 (CIFRAS EN PESOS) - ---------------------------------------------------------------------------------------------------------------------------------- CONCEPTO 2006 2005 - ---------------------------------------------------------------------------------------------------------------------------------- OPERACION - ---------------------------------------------------------------------------------------------------------------------------------- UTILIDAD (PERDIDA ANTES DE PARTIDAS EXTRAORDINARIAS (2,530,478) 487,458 - ---------------------------------------------------------------------------------------------------------------------------------- PARTIDAS APLICADAS A RESULTADOS QUE NO AFECTARON RECURSOS - ---------------------------------------------------------------------------------------------------------------------------------- DEPRECIACIONES Y AMORTIZACIONES 553,431 484,251 - ---------------------------------------------------------------------------------------------------------------------------------- AUMENTO O DISMINUCION EN: - ---------------------------------------------------------------------------------------------------------------------------------- CUENTAS POR COBRAR (5,912) 363,925 - ---------------------------------------------------------------------------------------------------------------------------------- INVENTARIOS (2,693,278) 3,458,577 - ---------------------------------------------------------------------------------------------------------------------------------- DEPOSITOS EN GARANTIA 0 (25,045) - ---------------------------------------------------------------------------------------------------------------------------------- IVA ACREDITABLE PENDIENTE POR COBRAR (64,693) 0 - ---------------------------------------------------------------------------------------------------------------------------------- PROVEEDORES Y OTROS PASIVOS 4,136,251 (9,812,008) - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- RECURSOS GENERADOS POR LA OPERACION (604,679) (5,042,842) - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- FINANCIAMIENTO - ---------------------------------------------------------------------------------------------------------------------------------- AUMENTO DE CAPITAL Y CORRECTION DE CAPITAL DEL ANO ANTERIOR (603,217) 3,801,959 - ---------------------------------------------------------------------------------------------------------------------------------- ACREDITAMIENTO DE ISR PAGADO EN 2002 POR DIVIDENDOS DISTRIBUIDOS DE LA NO CUFIN Y QUE DE 0 592,514 ACUERDO CON EL ART 11 DE LISR VIGENTE EN ESE ANO, PUEDO UTILIZARLO CONTRA EL ISR EJERCICIO 2005. - ---------------------------------------------------------------------------------------------------------------------------------- RECURSOS GENERADOS POR FINANCIAMIENTO (603,217) 4,394,473 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- INVERSION - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- ADQUISICION DE ACTIVO FIJO (42,402) (372,802) - ---------------------------------------------------------------------------------------------------------------------------------- RECURSOS UTILIZADOS POR INVERSION (42,402) (372,803) - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- AUMENTO A EFECTIVO E INVERSIONES TEMPORALES (1,250,298) (1,021,172) - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- AL PRINCIPIO DEL PERIODO 2,972,617 3,993,789 - ---------------------------------------------------------------------------------------------------------------------------------- AL FINAL DEL PERIODO 1,722,319 2,972,617 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- LAS NOTAS ADJUNTAS SON PARTE INTEGRANTE DE ESTE ESTADO FINANCIERO - ----------------------------------------------------------------------------------------------------------------------------------
COMERCIAL TARGA S.A. DE C.V. NOTAS A LOS ESTADOS FINANCIEROS POR LOS EJERCICIOS TERMINADOS AL 31 DE DICIEMBRE DE 2006 Y DE 2005 (CIFRAS EN PESOS) 1.- NUEVAS NORMAS DE INFORMACION FINANCIERA - A PARTIR DEL 1 DE JUNIO DE 2004, LA FUNCION Y RESPONSABILIDAD DE LA EMISION DE LAS NORMAS DE INFORMACION FINANCIERA ("NIF"), CORRESPONDE AL CONSEJO MEXICANO PARA LA INVESTIGACION Y DESARROLLO DE NORMAS DE INFORMACION FINANCIERA A. C. ("CINIF"). EL CINIF DECIDIO RENOMBRAR LOS PRINCIPIOS DE CONTABILIDAD GENERALMENTE ACEPTADOS QUE ANTERIORMENTE EMITIA EL INSTITUTO MEXICANO DE CONTADORES PUBLICOS, A. C. ("IMCP"), COMO NIF. LOS ESTADOS FINANCIEROS ADJUNTOS CUMPLEN CON LAS NORMAS DE INFORMACION FINANCIERA, SU PREPARACION REQUIERE QUE LA ADMINISTRACION DE LA COMPANIA EFECTUE CIERTAS ESTIMACIONES Y UTILICE DETERMINADOS SUPUESTOS PARA VALUAR ALGUNAS DE LAS PARTIDAS DE LOS ESTADOS FINANCIEROS Y PARA EFECTUAR LAS REVELACIONES QUE SE REQUIEREN EN LOS MISMOS. LOS ESTADOS FINANCIEROS ADJUNTOS ESTAN PREPARADOS CON BASE EN COSTOS HISTORICOS Y NO RECONOCEN LOS EFECTOS DE LA INFLACION. POR LO TANTO, NO PRETENDEN ESTAR DE ACUERDO CON LAS NIF. EN CONSECUENCIA, LAS UTILIDADES ACUMULADAS Y LA UTILIDAD NETA DE LOS EJERCICIOS 2006 Y 2005, NO RECONOCEN EL RESULTADO POR POSICION MONETARIA Y LAS DEMAS CIFRAS DE LOS ESTADOS FINANCIEROS NO ESTAN PRESENTADAS EN PESOS DE PODER ADQUISITIVO DEL 31 DE DICIEMBRE DE 2006. 2.- OPERACIONES DE LA COMPANIA Y RESUMEN DE LAS PRINCIPALES POLITICAS CONTABLES. COMERCIAL TARGA, S.A. D E C.V. SE DEDICA A LA COMPRA VENTA, DISTRIBUCION, IMPORTACION DE PRODUCTOS ALIMENTICIOS Y DERIVADOS, COMERCIALIZACION DE MERCANCIAS GENERALES EN EL RAMO ALIMENTICIO. A CONTINUACION SE PRESENTAN LAS POLITICAS DE CONTABILIDAD QUE UTILIZA LA COMPANIA EN SUS RENGLONES MAS IMPORTANTES: A) TRANSACCIONES EN MONEDA EXTRANJERA LOS ACTIVOS Y PASIVOS EN DICHA MONEDA, SE EXPRESAN EN MONEDA NACIONAL A LOS TIPOS DE CAMBIO VIGENTES A LA FECHA DEL ESTADO DE SITUACION FINANCIERA, LAS DIFERENCIAS MOTIVADAS POR FLUCTUACIONES EN LOS TIPOS DE CAMBIO ENTRE LAS FECHAS DE CONCERTACION DE TRANSACCIONES Y SU LIQUIDACION O VALUACION AL CIERRE DEL EJERCICIO SE APLICAN A RESULTADOS. B) MOBILIARIO Y EQUIPO VALUADOS AL COSTO DE ADQUISICION. C) DEPRECIACION CALCULADA POR EL METODO DE LINEA RECTA, APLICADA SOBRE SALDOS FINALES A LAS TASAS MAXIMAS AUTORIZADAS POR LA LEY DEL IMPUESTO SOBRE LA RENTA. D) RESERVA PARA CUENTAS INCOBRABLES EL ESTADO DE SITUACION FINANCIERA NO INCLUYE UNA RESERVA PARA CUENTAS INCOBRABLES EN VISTA DE QUE LA COMPANIA TIENE ESTABLECIDA LA POLITICA DE CARGAR LAS CUENTAS QUE CANCELA A LOS RESULTADOS DEL ANO EN QUE SE EFECTUA LA CANCELACION. E) EFECTO INFLACIONARIO LAS CIFRAS QUE MUESTRAN LOS ESTADOS FINANCIEROS, ESTAN REGISTRADAS SOBRE LA BASE DE COSTO HISTORICO, Y NO REFLEJAN EL EFECTO DE LOS CAMBIOS EN EL NIVEL DE PRECIO ORIGINADO POR LA INFLACION. F) COSTO INTEGRAL DE FINANCIAMIENTO EL COSTO INTEGRAL DE FINANCIAMIENTO REPRESENTA LA SUMA ALGEBRAICA DE LOS INTERESES GANADOS Y LAS FLUCTUACIONES CAMBIARIAS GENERADAS. 3.- EFECTIVO E INVERSIONES TEMPORALES. AL 31 DE DICIEMBRE DE 2006 Y 2005 EL SALDO EFECTIVO SE INTEGRA COMO SIGUE: EFECTIVO 2006 2005 CAJA 500.00 500.00 BANCOS M.N. 661,018.00 452,685.00 BANCOS DLLS 1,060,801.00 2,519,432.00 TOTAL EFECTIVO $ 1,722,319.00 2,972,617.00 4.- IMPUESTO POR RECUPERAR AL 31 DE DICIEMBRE DE 2006 Y 2005, LOS IMPUESTOS A FAVOR DE LA COMPANIA SE INTEGRAN COMO SIGUE: IMPUESTO 2006 2005 I.V.A. ACREDITABLE A FAVOR $ 763,230.00 $1,439,971.00 I.V.A. PENDIENTE DE ACREDITAR 0.00 56,622.00 CREDITO AL SALARIO 37,294.00 14,279.00 IMPUESTO SOBRE LA RENTA 1,161,341.00 0.00 ISR A FAVOR DEL EJERCICIO 2004 Y 2005 0.00 42,067.00 IVA PENDIENTE DE ACREDITAR 18,148.00 0.00 TOTAL $1,980,013.00 $1,552,939.00 4 A.- IMPUESTO AL ACTIVO POR RECUPERAR IMPUESTO 2006 2005 IMPUESTO AL ACTIVO POR RECUPERAR 2003 $ 523,846.00 $ 523,846.00 IMPUESTO AL ACTIVO POR RECUPERAR 2004 501,798.00 501,798.00 IMPUESTO AL ACTIVO POR RECUPERAR 2006 50,166.00 $1,075,810.00 $1,025,644.00 5.- INMUEBLES, MAQUINARIA Y EQUIPO LA DEPRECIACION ACUMULADA AL 31 DE DICIEMBRE DE 2006 Y 2005 SE ANALIZA COMO SIGUE: DEPRECIACION ACUMULADA 2006 2005 TIJUANA MAQUINARIA Y EQUIPO 1,156,650.00 708,100.00 MOBILIARIO Y EQUIPO DE OFICINA 29,775.00 25,993.00 EQUIPO DE COMPUTO 8,982.00 7,802.00 EQUIPO DE TRANSPORTE 977,322.00 900,556.00 EQUIPO DE PROMOCION Y VENTAS 31,571.00 27,362.00 SUB-TOTAL DEPRECIACION $2,204,300.00 $1,669,813.00 AMORTIZACION GASTOS DE INSTALACION $ 49,550.00 $ 35,487.00 DEPRECIACION ACUMULADA MEXICALI EQUIPO DE COMPUTO 3,612.00 2,619.00 EQUIPO DE TRANSPORTE 4,561.00 2,737.00 SUB-TOTAL DEPRECIACION $ 8,173.00 $ 5,356.00 AMORTIZACION GASTOS DE INSTALACION $ 7,052.00 $ 4,988.00 TOTAL DEPRECIACION $2,212,473.00 $1,675,169.00 TOTAL AMORTIZACION $ 56,602.00 $ 40,475.00 6- ACREEDORES DIVERSOS NACIONALES EL SALDO DE ACREEDORES DIVERSOS AL 31 DE DICIEMBRE DE 2006 Y 2005 SE ANALIZA COMO SIGUE: 2006 2005 LEOPOLDO VIDAL $ 0.00 $ 1,148.00 DANIEL IBARRA 1,438.00 1,509.00 COMERCIALIZADORA OCOTILLO 4,723.00 4,723.00 TAKE & BAKE, DE MEXICO S.A. DE C.V 185,455.00 185,455.00 HECTOR TORRES CARRASCO 1,352.00 0.00 JOSE DE JESUS SANCHEZ 5,192.00 51,355.00 JOSE GPE. BERMEJO RODRIGUEZ 1,152.00 0.00 VARIOS 48,958.00 67,392.00 TOTAL $248,270.00 $311,582.00 7.- PROVEEDORES NACIONALES EL SALDO DE PROVEEDORES NACIONALES AL 31 DE DICIEMBRE DEL 2006 Y 2005 SE ANALIZA COMO SIGUE: 2006 2005 MOLE SANTAMONICA $ 0.00 $ 67,665.00 PRODUCTOS CHATAS SA DE CV 0.00 2,385.00 REFUGIO MAGALLON OCHOA 28,798.00 18,189.00 SEALED AIR S DE RL DE CV 58,941.00 0.00 CELULOSA Y CORRUGADOS 27,295.00 0.00 A&J CHEESE DE MEXICO 0.00 27,175.00 AMCOR DE MEXICO SA DE CV 0.00 41,953.00 CKOCKET BAJA SA DE CV 52,012.00 63,944.00 HOOGWEGT US INC 1,635,218.00 1,610,469.00 VARIOS 24,860.00 0.00 TOTAL $1,827,124.00 $1,831,780.00 LAS CIFRAS DEL 2005 FUERON MODIFICADAS PARA ADECUAR SU PRESENTACION AL CRITERIO UTILIZADO PARA 2006 8.- PROVEEDORES AL EXTRANJERO EL SALDO DE PROVEEDORES AL EXTRANJERO AL 31 DE DICIEMBRE DEL 2006 Y 2005 SE ANALIZA COMO SIGUE: TIJUANA 2006 2005 BONSUISSE $ 777,094.00 $ 1,447,853.00 DK INTERNATIONAL 905,543.00 891,837.00 LAUGURU INC 23,445,556.00 17,017,244.00 ULMAC Y ES COOP 130,071.00 128,103.00 VARIOS 9,649.00 9,503.00 TOTAL $25,267,913.00 19,494,540.00 MEXICALI LAUGURU INC 0.00 1,276,021.00 SUB-TOTAL $ 0.00 $ 1,276,021.00 TOTAL $25,267,913.00 $20,770,561.00 LAS CIFRAS DEL 2005 FUERON MODIFICADAS PARA ADECUAR SU PRESENTACION AL CRITERIO UTILIZADO PARA 2006. LA DEUDA DE LAUGURU INC DE MEXICALI SE RECLASIFICO A LAUGURU INC DE TIJUANA 9.- PASIVO CONTINGENTE. DE ACUERDO A LA LEY FEDERAL DEL TRABAJO, LA COMPANIA TIENE LOS SIGUIENTES PASIVOS: A) POR INDEMNIZACIONES A EMPLEADOS QUE SEAN DESPEDIDOS BAJO CIERTAS CIRCUNSTANCIAS, AL 31 DE DICIEMBRE DEL 2006 NO EXISTIA RESERVA POR ESTE CONCEPTO. B) POR PRIMAS DE ANTIGUEDAD A TRABAJADORES QUE DEJEN DE PRESTAR SUS SERVICIOS, TIENEN DERECHO A COBRAR UNA PRIMA DE ANTIGUEDAD QUE SE COMPUTARA EN LOS TERMINOS FIJADOS POR LA LEY. 10.- CAPITAL SOCIAL AL 31 DE DICIEMBRE DEL 2006, EL CAPITAL SOCIAL ESTABA INTEGRAMENTE SUSCRITO Y PAGADO, REPRESENTADO POR 2,938,684.00 ACCIONES NOMINATIVAS CON VALOR DE $ 1.00 CADA UNA, ANALIZADAS COMO SIGUE: ACCIONISTAS ACCIONES IMPORTE SERIE A SALVADOR ARANA AVALOS(1) 4,740 $ 4,740.00 LUIS I. ARANA OLAVARRI 80 80.00 JUAN CARLOS ARANA OLAVARRI 1,200 1,200.00 JULIA OLAVARRI DE ARANA 1,980 1,980.00 SUB-TOTAL 8,000 $ 8000.00 SERIE B SALVADOR ARANA AVALOS 2,506,944 $2,506,944.00 LUIS I. ARANA OLAVARRI 151,920 151,920.00 JUAN CARLOS ARANA OLAVARRI 158,800 158,800.00 JULIA OLAVARRI DE ARANA 113,020 113,020.00 SUB-TOTAL 2,930,684 $2,930,684.00 TOTAL 2,938,684 $2,938,684.00 (1)A LA MUERTE DEL SR. SALVADOR ARANA AVALOS, OCURRIDA EL DIA 8 DE ABRIL DE 1996 SE ABRE UN JUICIO SUCESIVO TESTAMENTARIO POR LOS BIENES DE SU PROPIEDAD INCLUYENDO LAS ACCIONES DE COMERCIAL TARGA, S.A. DE C.V. CON FECHA 15 DE MAYO DE 1997, LOS SOCIOS ACORDARON EN UNA ASAMBLEA EXTRAODINARIA QUE LAS ACCIONES DEL SENOR SALVADOR ARANA AVALOS FUERAN TRASPASADAS A LA SENORA JULIA OLAVARRI DE ARANA, SE ESCRIBIO EN EL LIBRO DE ACTAS DE LA COMPANIA LO SUCEDIDO EN LA FECHA ANTES MENCIONADA. LO ACORDADO POR LOS SOCIOS SEGUN SE MENCIONA EN EL PARRAFO ANTERIOR NO PROCEDIO, YA QUE NO HAY UN DOCUMENTO DONDE CONSTE QUE EL SENOR SALVADOR ARANA AVALOS HAYA DESIGNADO COMO BENEFICIARIA A LA SENORA JULIARA ARANA DE OLAVARRI DE SUS ACCIONES EN EL CASO DE SU FALLECIMIENTO, POR LO TANTO EL SENOR SALVADOR ARANA AVALOS SEGUIRA APARECIENDO COMO SOCIO ACCIONISTA HASTA QUE NO SE CONCLUYA EL JUICIO TESTAMENTARIO MENCIONADO EN EL PUNTO(1) DE ESTA NOTA. EN EL MES DE DICIEMBRE DE 2005 LA SOCIA JULIA OLAVARRI DE ARANA, HIZO UNA APORTACION AL CAPITAL FIJO POR LA CANTIDAD DE $3,198,742.00 PESOS, EQUIVALENTE A 3,198,742 ACCIONES CON UN VALOR NOMINAL DE UN PESO CADA UNA. ACTA DE ASAMBLEA EXTRAORDINARIA CON FECHA DEL 07 DE JULIO DE 2006 AUN NO PROTOCOLIZADA. ES DE SUMA IMPORTANCIA MENCIONAR QUE POR ERROR EN LOS ESTADOS FIANANCIEROS CORRESPONDIENTES AL 31 DE DICIEMBRE DE 2005, SE HABIA RECONOCIDO UN AUMENTO DE CAPITAL DE $ 3,801,959.00 PESOS EQUIVALENTE A 3,801,959 ACCIONES CON UN VALOR NOMINAL DE UN PESO CADA UNA, SEGUN ACTA DE ASAMBLEA EXTRAORDINARIA PROTOCOLIZADA EL 04 DE MAYO DE 2006 CON NUMERO 1993, CELEBRADA EN LA CIUDAD DE TIJUANA, ESTADO BAJA CALIFORNIA, POR EL CORREDOR PUBLICO NUMERO 08, LIC. JOSE GUADALUPE GUTIERREZ RAMIREZ. EL ERROR CONSISTIO QUE EN EL MISMO PERIODO EN QUE LA SOCIA ANTES MENCONADA REALIZO LA APORTACION DE CAPITAL, LA COMPANIA RECIBIO EN SUS BANCOS UN DEPOSITO POR PARTE DEL SERVICIO DE ADMINISTRACION TRIBUTARIA A RAZON DE LA SOLICITUD DE DEVOLUCION DEL IMPUESTO AL VALOR AGREGADO DE LOS ANOS NOVIMBRE 2005 POR $59,487.00 PESOS, DICIEMBRE 2005 POR $118,504.00 PESOS, SEPTIEMBRE 2005 POR $33,339.00 PESOS, OCTUBRE 2005 POR $191,692.00 PESOS, AGOSTO 2004 POR $66,802.00 PESOS Y JULIO 2004 POR $114,118.00 PESOS MAS LA ACTUALIZACION POR 19,275.00 PESOS; A LO QUE SUMA LA CANTIDAD DE $603,217.00 PESOS, POR ERROR CONTABLE ESTE DINERO SE LE DIO INGRESO A LA CUENTA DE CAPITAL CONSIDERANDOLO COMO PARTE DE LA APORTACION DE LA SENORA JULIA OLAVARIA DE ARANA, PERO EN REALIDAD ESE DINERO CORRESPONDIA A LA SOLCITUD DE LA DEVOLUCION DEL IMPUESTO AL VALOR AGREGADO. EL ERROR SE DETECTO EL 07 DE JULIO DE 2006, MISMO DIA QUE SE PROCEDIO A LA ASAMBLEA DE ACCIONISTAS PARA HACER LA CORRECCION AL ACTA CELEBRADA EL MES DE DICIEMBRE DE 2005 DONDE POR ERROR SE RECONOCIO UN AUMENTO DE CAPITAL DE $3,801,959.00, DEBIENDO SER $3,198,742.00 PESOS QUEDANDO EL CAPITAL COMO SIGUE: ACCIONISTAS ACCIONES IMPORTE SERIE A SALVADOR ARANA AVALOS(1) 4,740 $ 4,740.00 LUIS I. ARANA OLAVARRI 80 80.00 JUAN CARLOS ARANA OLAVARRI 1,200 1,200.00 JULIA OLAVARRI DE ARANA 3,200,722 3,200,722.00 SUB-TOTAL 3,206,742 $3,206,742.00 SERIE B SALVADOR ARANA AVALOS 2,506,944 $2,506,944.00 LUIS I. ARANA OLAVARRI 151,920 151,920.00 JUAN CARLOS ARANA OLAVARRI 158,800 158,800.00 JULIA OLAVARRI DE ARANA 113,020 113,020.00 SUB-TOTAL 2,930,684 $2,930,684.00 TOTAL 6,137,426 $6,137,426.00 LAS CIFRAS DEL 2005 FUERON MODIFICADAS PARA ADECUAR SU PRESENTACION AL CRITERIO UTILIZADO PARA 2006. 11.- COSTO INTEGRAL DE FINANCIAMIENTO. EN ESTE RENGLON SE INCLUYEN LOS SIGUIENTES CONCEPTOS: GASTOS FINANCIEROS 2006 2005 INTERESES BANCARIOS 0.00 0.00 COMISIONES BANCARIAS 48,030.00 25,225.00 SUB-TOTAL 48,030.00 25,225.00 PRODUCTO FINANCIEROS INTERESES SOBRE INVERSIONES 9,305.00 3,375.00 SUB-TOTAL -38,725.00 -21,850.00 RESULTADOS CAMBIARIO UTILIDAD CAMBIARIA 4,159,373.00 5,011,660.00 PERDIDA CAMBIARIA 4,502,322.00 4,369,607.00 SUB-TOTAL -342,949.00 642,053.00 COSTO INTEGRAL DE FINANCIAMIENTO -381,674.00 620,203.00 12.- POSICION EN MONEDA EXTRANJERA LA POSICION EN MONEDA EXTRANJERA AL 31 DE DICIEMBRE DEL 2006, SE INTEGRA COMO SIGUE: CUENTA DOLARES PESOS NORTEAMERICANOS ACTIVOS BANCOS $ 97,540.36 $ 1,060,800.19 CLIENTES 779,760.37 8,480,283.90 SUB-TOTAL 877,300.73 9,541,084.09 MENOS : PASIVOS PROVEEDORES $ 2,487,440.52 $27,052,159.38 TOTAL EN DOLARES Y PESOS -1,610,139.79 -17,511,075.29 LA VALUACION DE LA MONEDA EXTRANJERA FUE AL TIPO DE CAMBIO VIGENTE DEL DOLAR LIBRE AL 31 DE DICIEMBRE DE 2006, EL CUAL FUE DE 10.8755 13.- PERDIDAS FISCALES POR AMORTIZAR DE ACUERDO A LA LEY DEL IMPUESTO SOBRE LA RENTA VIGENTE, LAS PERDIDAS FISCALES PODRAN SER AMORTIZADAS CONTRA LAS UTILIDADES FISCALES QUE SE OBTENGAN EN LOS 10 ANOS SIGUIENTES A AQUEL EN QUE SE APLIQUE LA PERDIDA. AL 31 DE DICIEMBRE 2006 NO HAY LA PERDIDA FISCAL PENDIENTE DE AMORTIZAR 14.- REGIMEN DE IMPUESTO SOBRE LA RENTA Y SOBRE ACTIVOS: LA COMPANIA ESTA SUJETA AL IMPUESTO SOBRE LA RENTA ( ISR ) Y AL IMPUESTO SOBRE ACTIVOS (IMPAC). EL ISR SE CALCULA CONSIDERANDO COMO GRAVABLES O DEDUCIBLES CIERTOS EFECTOS DE LA INFLACION COMO LA DEPRECIACION CALCULADA SOBRE VALORES EN PRECIOS CONSTANTES, LO QUE PERMITE DEDUCIR COSTOS ACTUALES, Y SE ACUMULA O DEDUCE EL EFECTO DE LA INFLACION SOBRE CIERTOS ACTIVOS Y PASIVOS MONETARIOS, A TRAVES DEL AJUSTE ANUAL POR NFLACION, EL CUAL ES SIMILAR AL RESULTADO POR POSICION MONETARIA. POR OTRA PARTE, EL IMPAC SE CAUSA A RAZON DEL 1.8% SOBRE UN PROMEDIO NETO DE LA MAYORIA DE LOS ACTIVOS ( A VALORES ACTUALIZADOS ) Y DE CIERTOS PASIVOS Y SE PAGA UNICAMENTE POR EL MONTO QUE EXCEDA AL ISR DEL ANO. CUALQUIER PAGO QUE SE EFECTUE ES RECUPERABLE CONTRA EL MONTO EN QUE EL ISR EXCEDA AL IMPUESTO AL ACTIVO EN LOS DIEZ EJERCICIOS SUBSECUENTES. LA COMPANIA A PAGADO IMPAC POR LOS SIGUIENTES EJERCICIOS, MISMO QUE TENDRA DERECHO A RECUPERAR DE ACUERDO AL ART. 9 DE LA LEY DEL IMPAC: EJERCICIO 2003 523,846.00 EJERCICIO 2004 501,798.00 POR E EJERCICIO DE 2006 EL ISR CAUSADO ES DE $0.00 Y DEL IMPUESTO AL ACTIVO ES DE $50,166.00 PESOS. 15.- PTU LA PARTICIPACION DE LOS TRABAJADORES EN LAS UTILIDADES SE CALCULA SOBRE LAS DISPOSICIONES EN VIGOR DE ACUERDO AL ARTICULO 14 DE LA LEY DEL IMPUESTO SOBRE LA RENTA. 16.- CONCILIACION DEL RESULTADO CONTABLE Y FISCAL LAS PRINCIPALES PARTIDAS QUE AFECTARON LA DETERMINACION DEL RESULTADO FISCAL FUERON EL AJUSTE ANUAL POR INFLACION, LA DEPRECIACION FISCAL CALCULADA A PRECIOS CONSTANTES Y EL INVENTARIO ACUMULABLE EN TERMINOS DE LA FRACCION IV, DEL ARTICULO TERCERO DE LAS DISPOSICIONES TRANSITORIAS 2006 DE LA LEY DEL IMPUESTO SOBRE LA RENTA 17.- INVENTARIOS: LOS INVENTARIOS SE REGISTRAN AL COSTO DE ADQUISICION, BAJO EL METODO DE PRIMERAS ENTRADAS PRIMERAS SALIDAS(PEPS) 18.- COSTO DE VENTAS: EL COSTO DE VENTAS SE DETERMINA CONFORME AL SISTEMA DE COSTEO ABSORBENTE SOBRE LAS BASE DE COSTOS HISTORICOS. ULTIMAS ENTRADAS PRIMERAS SALIDAS (UEPS) 19.- PARTES RELACIONADAS LAS OPERACIONES REALIZADAS EN LOS ANOS TERMINADOS AL 31 DE DICIEMBRE DE 2006 Y 2005 CON PARTES RELACIONADAS NACIONALES SON LAS SIGUIENTES: CONCEPTO 2006 2005 EGRESOS HONORARIOS POR SERVICIOS ADMINISTRATIVOS $1,690,909.00 $1,690,909.00 (INCLUIDOS EN LOS GASTOS DE ADMINISTRACION) PAGADOS A PARTES RELACIONADAS "ASESORIAS Y SERVICIOS MULTIPLES, S.C. HONORARIOS POR ASESORIA OPERATIVA $ 916,453.00 $ 759,260.00 (INCLUIDOS EN LOS GASTOS DE ADMINISTRACION) PAGADOS A PARTES RELACIONADAS " TAKE & BAKE DE MEXICO SA DE CV" TOTAL EGRESOS $2,607,362.00 $2,450,169.00 20.-ISR ACREDITADO CONTRA EL IMPUESTO DEL EJERCICIO 2005 LA EMPRESA REPARTIO $ 1,692,818.00 PESOS DE DIVIDENDOS DE LA NO CUFIN EN EL EJERCICIO DE 2002, POR LO QUE SE PAGO DE ISR $592,514.00 PESOS EN ESTE MISMO EJERCICIO, DEBIENDO ACREDITAR DICHO IMPUESTO EN LA DECLARACION ANUAL DEL IMPUESTO CITADO EN EL EJERCICIO DE 2002, PERO COMO RESULTO PERDIDA FISCAL, ESTE DERECHO SE TRALADA A LOS EJERCICIOS DE 2003,2004 Y 2005 DE CONFORMIDAD AL ARTICULO 11 FRACCION I DE LA LEY DE IMPUESTO SOBRE LA RENTA VIGENTE EN 2002; DEBIDO A QUE EN EL EJERICIO 2003 EL RESULTADO FISCAL FUE CERO Y EN EL EJERCICIO 2004 SE DETERMINO PERDIDA FISCAL, ESTE DERECHO SE TRASLADA AL PERIODO DEL EJERCICIO DE 2005 DE CONFORMIDAD CON EL ARTICULO ANTES CITADO. POR LO TANTO COMERCIAL TARGA SA DE CV, HACE USO DE ESTE DERECHO ACREDITANDO ASI, CONTRA EL IMPUESTO DE ISR DEL EJERCICIO 2005 LA CANTIDAD DE $592,514.00 PESOS. DE CONFORMIDAD CON EL ART. 11, FRACCION II DE LA LEY DEL IMPUESTO SOBRE LA RENTA ,EL IMPUESTO ACREDITADO EN TERMINOS DEL PARRAFO ANTERIOR, SE DIVIDE ENTRE EL FACTOR APLICABLE SEGUN LAS DISPOSICIONES TRANSITORIAS DE 2002, FRACCION LXXXII, 0.5385, ESTO ES PARA DETERMINAR EL MONTO QUE SE DEBE DISMINUIR DE LA UTILIDAD FISCAL NETA CALCULADA DE ACUERDO AL ART. 88 DE LA LEY DEL IMPUESTO SOBRE LA RENTA. LA CANTIDAD RESULTANTE DE LA OPERACION ANTES MENCIONADA ES DE $1,100,305.00, LA CUAL SERA DISMINUIDA A LA UTILIDAD FISCAL NETA DEL EJERCICIO 2005, EN TERMINOS DEL ARTICULO YA MENCIONADO. (ii) TRANSLATION OF (i) INTO ENGLISH AND UNITED STATES DOLLARS TO THE SHAREHOLDERS OF: COMERCIAL TARGA S.A. DE C.V. I HAVE EXAMINED THE BALANCE SHEET OF COMERCIAL TARGA S.A. DE C.V., AS DECEMBER 2006 AND 2005 AS WELL AS THE RESULTS OF OPERATION, THE CAPITAL VARIATIONS AND CHANGES IN THE FINANCIAL SITUATION, THAT ARE RELATIVE TO THE ENDING YEAR OF THAT DATE, INCLUDED IN POINTS 1 THROUGH 4.1 OF THE 2006 FISCAL PRESENTATION SYSTEM ("SIPRED 2006"), SENT TO THE LOCAL FEDERAL INTERNAL AUDITING ADMINISTRATION OF TIJUANA VIA INTERNET. THE FINANCIAL STATEMENTS ARE RESPONSIBILITY OF THE COMPANY'S ADMINISTRATORS. MY RESPONSIBILITY IS TO EXPRESS AN OPINION OVER THE SAME ISSUES WITH MY AUDITORIAL BACKGROUND. MY EXAMINATION WAS MADE FOLLOWING THE PRINCIPLES OF AUDITING, GENERALLY ACCEPTED IN MEXICO, WHICH REQUIRE A PLANNED AUDIT MADE IN ACCORDANCE WITH THOSE PRINCIPLES, THAT ALLOWS A RATIONABLE ASSURITY THAT THE FINANCIAL STATEMENTS DON'T CONTAIN IMPORTANT ERRORS, AND ARE PREPARED IN ACCORDANCE WITH GENERAL ACCEPTED ACCOUNTING PRINCIPLES ACCEPTED IN MEXICO. THE AUDIT CONSISTED OF AN EXAMINATION, WITH SELECTIVE TESTING BASED ON THE EVIDENCE THAT SUPPORTS THE AMOUNTS AND DISCLOSURES INCLUED IN THE FINANCIAL STATEMENTS; INCLUDING THE EVALUATION OF THE NORMS OF THE FINANCIAL STATEMENTS, THE SIGNIFICANT EVALUATIONS EFFECTED BY THE ADMINISTRATION AND PRESENTATION OF THE FINANCIAL STATEMENTS BROUGHT TOGETHER. I CONSIDER THAT MY EXAMINATION PROVIDES REASONABLE SUPPORT FOR MY OPINION. THE FINANCIAL STATEMENTS MENTIONED BEFORE WERE PREPARED TO BE UTILIZED BY THE LOCAL FEDERAL FISCAL AUDITING ADMINISTRATION OF TIJUANA ("AGAFF"), THEY HAVE BEEN PRESENTED, CLASSIFIED AND ISSUED IN THE REQUIREDFORM OF FISCAL DICTATION FOR 2006 (SIPRED 2006), PROPORTIONED BY THE ADMINISTRATIVE TRIBUNAL SERVICE THAT DESIGNED THE ADMINISTRATION AND CANNOT BE UTILIED FOR OTHER MATTERS. AS MENTIONED IN NOTE 1 OF THE FINANCIAL STATEMENTS, THE DECEMBER 31, 2006, DOES NOT RECOGNIZE THE INFLATION EFFECTS STATED IN THE FINANCIAL INFORMATION REQUIRED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES OF MEXICO. CONSIDERED IMPORTANT IN ATTENTION TO THE AMOUNT AND ANTIQUETY OF THE NON-MONETARY ACTIVES OF THE SHAREHOLDERS INVERSIONS AND THE MONETARY POSITION ATTAINED DURING BOTH YEARS. IN MY OPINION, EXCEPT FOR THE NON RECOGNITION OF THE INFLATION EFFECTS IN THE FINANCIAL INFORMATION, AS EXPLAINED IN THE LAST PARAGRAPH, THE FINANCIAL STATEMENTS MENTIONED PRESENT FAIRLY THE FINANCIAL SITUATION OF COMERCIAL TARGA, S.A DE C.V. AS DECEMBER 31, 2006 AND 2005, THE RESULTS OF OPERAIONS, THE CHANGE IN CAPITAL AND THE CHANGES IN THE FINANCIAL SITUATION FOR THE YEARS ENDING ON THOSE DATES, IN CONFORMITY WITH THE GENERALLY ACCEPTED ACCOUNTING PRINCPLES OF THE FINANCIAL REPORTING. C.P.C. JOSE FABIAN CARRILLO VILLAREAL REGISTERED IN THE GENERAL ADMINISTRATION OF THE FEDERAL FISCAL AUDITORY NO. 6386 TIJUANA, BAJA CALIFORNIA, APRIL 13, 2007 COMERCIAL TARGA S.A. DE C.V. BALANCE SHEETS December 31, DECEMBER 31, 2006 2005 ----------- ----------- ASSETS Current assets: Cash and cash $ 158,358 $ 272,795 equivalents Accounts receivable 1,075,495 1,110,832 Recoverable taxes 182,052 142,512 Other 4,538 10,392 receivables Other prepaid 98,915 94,123 Inventories 932,887 683,946 ----------- ----------- TOTAL CURRENT ASSETS 2,452,244 2,314,600 Property and equipment 534,234 529,323 Depreciation (203,425) (153,729) ----------- ----------- Property and equipment (net) 330,808 375,594 Other assets Guarantee deposits 16,487 16,456 Added value tax to collect 5,948 -- Leasehold improvements 29,700 29,643 Amortization of leasehold improvements (5,204) (3,714) ----------- ----------- Total other assets 46,931 42,385 ----------- ----------- TOTAL ASSETS $ 2,829,984 $ 2,732,578 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accrued $ 22,827 $ 28,594 expenses Accounts payable 2,491,246 2,074,199 Income tax payable 9,895 9,442 Other taxes payable 12,671 8,456 Deferred income -- 33,598 Added value tax payable 16,778 14,673 ----------- ----------- TOTAL CURRENT LIABILITIES 2,553,416 2,168,962 Stockholders' equity: Paid-in capital 563,227 618,584 Legal reserve 40,572 38,331 Accumulated other comprehensive 972 -- loss Retained earnings (deficit) (328,203) (93,298) ----------- ----------- TOTAL STOCKHOLDERS' EQUITY 276,568 563,616 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,829,984 $ 2,732,578 =========== =========== The accompanying notes are an integral part of these financial statements. COMERCIAL TARGA S.A. DE C.V. STATEMENTS OF OPERATIONS FOR THE YEAR FOR THE YEAR ENDED DECEMBER ENDED DECEMBER 31, 2006 31, 2005 ----------- ----------- SALES $ 6,800,434 $ 6,161,586 COST OF SALES 5,553,088 4,616,777 ----------- ----------- GROSS PROFIT 1,247,346 1,544,809 OPERATING EXPENSES General and administrative expenses 1,061,629 954,900 ----------- ----------- TOTAL OPERATING EXPENSES 1,061,629 954,900 INCOME FROM OPERATIONS 185,717 589,909 OTHER INCOME AND (EXPENSE) Interest income (418,381) (403,310) Provision for income taxes -- (141,865) ----------- ----------- NET LOSS $ (232,664) $ 44,734 =========== =========== The accompanying notes are an integral part of these financial statements. COMERCIAL TARGA S.A. DE C.V. STATEMENTS OF STOCKHOLDERS' EQUITY PAID IN LEGAL COMPREHENSIVE RETAINED TOTAL CAPITAL RESERVE INCOME (DEFICIT) STOCKHOLDERS' EQUITY ------------ ------------ ------------ ------------ ------------ BALANCE DECEMBER 31, 2004 $ 269,681 $ 38,331 $ -- $ (192,406) $ 115,605 ADDITIONAL PAID IN CAPITAL 348,903 -- -- -- 348,903 CREDIT FOR RETURN OF INCOME TAXES PAID IN PRIOR YEAR -- -- -- 54,375 54,375 NET INCOME -- -- -- 44,734 44,734 ------------ ------------ ------------ ------------ ------------ BALANCE DECEMBER 31, 2005 618,584 38,331 -- (93,298) 563,616 LEGAL RESERVE -- 2,241 -- (2,241) -- ADJUSTMENT OF CAPITAL (55,357) -- -- -- (55,357) NET LOSS -- -- -- (232,664) (232,664) LOSS ON TRANSLATION -- -- 972 -- 972 ------------ COMPREHENSIVE LOSS -- -- -- (231,692) ------------ ------------ ------------ ------------ ------------ BALANCE DECEMBER 31, 2006 $ 563,227 $ 40,572 $ 972 $ (328,203) 276,568 ============ ============ ============ ============ ============ The accompanying notes are an integral part of these financial statements.
COMERCIAL TARGA S.A. DE C.V. STATEMENTS OF CASH FLOWS FOR THE YEAR FOR THE YEAR ENDED DECEMBER ENDED DECEMBER 31, 2006 31, 2005 ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES Net gain (loss) $ (232,664) $ 44,734 Adjustment to reconcile net loss to net cash used for operating activities: Depreciation Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (544) 33,397 (Increase) decrease in inventories (247,633) 317,391 Decrease in guarantee deposits -- (2,298) Increase in value added tax (5,948) -- Increase (decrease) in accounts payable and other liabilities 380,306 (900,440) ------------- ------------- NET CASH USED FOR OPERATING (55,597) (462,778) ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets (3,899) (34,212) ------------- ------------- NET CASH USED FOR INVESTING (3,899) (34,212) ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Increase or decrease in paid in capital (55,597) 348,903 Return of income taxes paid in prior year -- 54,375 ------------- ------------- NET CASH FLOW FROM FINANCING ACTIVITIES (55,597) 403,277 EFFECT OF EXCHANGE RATE CHANGES ON CASH (521) -- ------------- ------------- NET DECREASE IN CASH (114,958) (93,712) Cash - Beginning 272,795 366,507 ------------- ------------- CASH - Ending $ 157,837 $ 272,795 ============= ============= The accompanying notes are an integral part of these financial statements.
COMERCIAL TARGA S.A. DE C.V. NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005 1. - NEW PRINCIPLES FOR FINANCIAL INFORMATION - FROM JUNE 1, 2004, THE FUNCTION AND RESPONSIBILITY FOR THE PRONOUNCEMENT OF ACCOUNTING PRINCIPLES FOR FINANCIAL INFORMATION ("NIF') IS THE RESPONCIBLITY OF THE MEXICAN BOARD OF INVESTIGATION AND DEVELOPMENT OF PRINCIPLES FOR FINANCIAL INFORMATION A.C. ("CINIF"). THE CINIF DECIDED TO RENAME THE PRINCIPLES OF ACCOUNTING GENERALLY ACCEPTED BEFORE AND EMITED BY THE MEXICAN INSTITUTE OF PUBLIC ACCOUNTANTS, A.C. ("IMCP"), TO NIF. THE FINANCIAL STATEMENTS ATTACHED FULFILL THE ACCOUNTING PRINCIPLES OF THE FINANCIAL INFORMATION (NIF). ITS PREPARATION REQUIRES THE ADMINISTRATION OF THE COMPANY TO PERFORM CERTAIN ESTIMATIONS AND UTILIZE THEM TO EVALUATE SOME PARTS OF THE FINACIAL STATEMENTS AND MAKE DISCLOSURESS REQUIRED. THE FINANCIAL STATEMENTS ATTACHED ARE PREPARED AT HISTORICAL COSTS AND DON'T RECOGNIZE THE INFLATION EFFECTS, THEREFORE, THEY ARE NOT IN ACCORDANCE WITH THE NIF. IN CONSECUENCE, THE ACCUMULATED GAINS AND THE NET INCOME (LOSS) FOR YEARS 2006 AND 2005 , DON'T RECOGNIZE THE RESULT OF INFLATIONARY EFFECT ON THE FINANCIAL STATEMENTS. 2. - OPERATIONS OF THE COMPANY AND SUMMARY OF THE PRINCIPAL ACCOUNTINAG POLICIES. COMERCIAL TARGA S.A. DE C.V. IMPORTS AND DISTRIBUTES CHEESE PRODUCTS. AT THIS TIME WE WILL PRESENT THE ACCOUNTING POLICIES THAT THE COMPANY USES IN ITS MORE IMPORTANT LINES. A) TRANSACTIONS IN FOREIGN CURRENCY ARE RECORDED AT THE RATE OF EXCHANGE ON THE DATE OF THE TRANSACTION B) FURNITURE AND EQUIPMENT ARE RECORED AT COST OF PURCHASE C) DEPRECIATION CALCULATED BY THE STRAIGHT LINE METHOD, APPLIED BY THE FINAL STATEMENTS ON THE MAXIMUM RATE AUTHORIZED BY THE TAX LAW OVER INCOME. D) RESERVES FOR UNCOLLECTABLE ACCOUNTS RECEIVABLE THE FIANANCIAL STATEMENTS DO NOT INCLUDE A RESERVE FOR UNCOLLECTABLE ACCOUNTS RECEIVABLE SINCE THE COMPANY HAS ESTABLISHED THE POLICY OF CHARGING THE ACCOUNTS OFF AS SOON AS IT IS DETERMINED THEY ARE UNCOLLECTABLE. E) INFLATION EFFECT THE AMOUNTS THAT SHOW THE FINANCIAL STATEMENTS, ARE REGISTERED OVER THE BASE HISTORICAL COST, AND DO NOT REFLECT THE CHANGE IN THE PRICE LEVEL ORIGINATED BY INFLATION. F) INTEREST AND FINANCIAL COST FINANCIAL COSTS REPRESENT THE INTEREST AND THE FLUCTUATIONS IN THE EXCHANGE RATES. 3. - EFECTIVE AND TEMPORAL INVESTMENT. THE CASH BALANCE THROUGH DECEMBER 31ST, 2006 AND 2005 IS INTEGRATED AS FOLLOWS: CASH 2006 2005 REGISTER $ 500.00 $ 500.00 BANKS (M.N.) $ 661,018.00 $ 452,685.00 BANKS (DLLS.) $ 1,060,801.00 $ 2,519,432.00 TOTAL CASH $ 1,722,319.00 $ 2,972,617.00 4. - TAX TO RECUPERATE FROM DECEMBER 31ST, 2006 AND 2005, THE TAX IN FAVOR OF THE COMPANY WILL BE INTEGRATED AS FOLLOWS: TAX 2006 2005 TAX ACREDITABLE IN FAVOR $ 763,230.00 $1,439,971.00 TAX $ 0.00 $ 56,622.00 SALARY CREDIT $ 37,294.00 $ 14,279.00 TAX OVER RENT $1,161,341.00 $ 0.00 ISR TO EXERCISE 2004 AND 2005 $ 0.00 $ 42,067.00 TAX TO BE ACREDITED $ 18,148.00 $ 0.00 TOTAL $1,980,013.00 $1,552,939.00 4 A. - ACTIVE TAX TO RECUPERATE TAX 2006 2005 ACTIVE TAX TO RECEUPERATE 2003 $ 523,846.00 $ 523,846.00 ACTIVE TAX TO RECEUPERATE 2004 $ 501,798.00 $ 501,798.00 ACTIVE TAX TO RECEUPERATE 2006 $ 50,166.00 TOTAL: $1,075,810.00 $1,025,644.00 5. - FURNITURE, MACHINERY AND EQUIPMENT THE ACUMULATED DEPRECIATION FROM DECEMBER 31ST, 2006 AND 2005 IS ANALIZED AS FOLLOWS: ACUMULATED DEPRECIATION 2006 2005 TIJUANA MACHINERY AND EQUIPMENT $1,156,650.00 $ 708,100.00 FURNITURE AND OFFICE EQUIPMET $ 29,775.00 $ 25,993.00 COMPUTER EQUIPMENT $ 8,982.00 $ 7,802.00 TRANSPORTATION EQUIPMENT $ 977,322.00 $ 900,556.00 PROMOTION AND SALES EQUIPMENT $ 31,571.00 $ 27,362.00 SUB-TOTAL DEPRECIATION $2,204,300.00 $1,669,813.00 AMORTIZATION COSTS OF INSTALATION $ 49,550.00 $ 35,487.00 ACUMULATED DEPRECIATION MEXICALI COMPUTER EQUIPMENT $ 3,612.00 $ 2,619.00 TRANSPORTATION EQUIPMENT $ 4,561.00 $ 2,737.00 SUB-TOTAL DEPRECIATION $ 8,173.00 $ 5,356.00 AMORTIZATION COSTS OF INSTALLATION $ 7,052.00 $ 4,988.00 TOTAL DEPRECIATION $2,212,473.00 $1,675,169.00 TOTAL AMORTIZATION $ 56,602.00 $ 40,475.00 6. - NATIONAL ACREDITORS THE ACREDITORS BALANCE OF DECEMBER 31ST, 2006 AND 2005 IS ANALYZED AS FOLLOWS: 2006 2005 LEOPOLDO VIDAL $ 0.00 $ 1,148.00 DANIEL IBARRA $ 1,438.00 $ 1,509.00 COMERCIALIZADORA OCOTILLO $ 4,723.00 $ 4,723.00 TAKE & BAKE MEXICO S.A.DE C.V $ 185,455.00 $ 185,455.00 HECTOR TORRES CARRASO $ 1,352.00 $ 0.00 JOSE DE JESUS SANCHEZ $ 5,192.00 $ 51,355.00 JOSE GPE. BERMEJO RODRIGUEZ $ 1,152.00 $ 0.00 SEVERAL $ 48,958.00 $ 67,392.00 TOTAL $ 248,270.00 $ 311,582.00 7.- NATIONAL VENDORS THE VENDOR BALANCES FROM DECEMBER 31ST, 2006 AND 2005 IS ANALYZED AS FOLLOWS: 2006 2005 MOLE SANTAMONICA $ 0.00 $ 67,665.00 PRODUCTOS CHATAS S.A.DE C.V $ 0.00 $ 2,385.00 REFUGIO MAGALLON OCHOA $ 28,798.00 $ 18,189.00 SEALED AIR S DE RL DE CV $ 58,941.00 $ 0.00 CELULOSA Y CORRUGADOS $ 27,295.00 $ 0.00 A&J CHEESE DE MEXICO $ 0.00 $ 27,175.00 AMCOR DE MEXICO S.A. DE C.V $ 0.00 $ 41,953.00 CKOCKET BAJA S.A. DE C.V $ 52,012.00 $ 63,944.00 HOOGWEGT US INC $1,635,218.00 $1,610,469.00 SEVERAL $ 24,860.00 $ 0.00 TOTAL $1,827,124.00 $1,831,780.00 THE NUMBERS IN 2005 WERE MODIFIED TO ACCOMMODATE THE PRESENTATION CRITERIA USED IN 2006. 8. - FOREIGN VENDORS THE FOREIGN VENDOR BALANCES FROM DECEMBER 31ST, 2006 AND 2005 IS ANALYZED AS FOLLOWS: TIJUANA 2006 2005 BONSUISSE $ 777,094.00 $ 1,447,853.00 DK INTERNATIONAL $ 905,543.00 $ 891,837.00 LAUGURU INC $23,445,556.00 $17,017,244.00 ULMAC Y ES COOP $ 130,071.00 $ 128,103.00 SEVERAL $ 9,649.00 $ 9,503.00 TOTAL $25,267,913.00 $19,494,540.00 MEXICALI LAUGURU $ 0.00 $ 1,276,021.00 SUB-TOTAL $ 0.00 $ 1,276,021.00 TOTAL $25,267,913.00 $20,770,561.00 THE NUMBERS IN 2005 WERE MODIFIED TO ACCOMMODATE THE PRESENTATION CRITERIA USED IN 2006. THE DEBT OF LAUGURU INC MEXICALI WAS RECLASIFIED TO LAGURU INC TIJUANA. 9. - PASSIVE CONTINGENT ACCORDING TO THE WORKING FEDERAL LAW, THE COMPANY HAS THE FOLLOWING LIABILITIES: A) FROM DECEMBER 31ST, 2006 THERE WON'T BE ANY RESERVES FOR INDEMNIZATIONS OF DISMISSED WORKERS UNDER CERTAIN CIRCUMSTANCES. B) ANTIQUETY PRIME WORKERS THAT STOP PRESENTING THEIR SERVICES WILL HAVE THE RIGHT TO COLLECT AN ANTIQUETY PRIME THAT WILL BE COMPUTED IN FIXED TERMS DETERMINED BY THE LAW. 10. - SOCIAL CAPITAL FROM DECEMBER 31ST, 2006, THE SOCIAL CAPITAL WAS SIGNED AND PAID COMPLETELY. IT WAS REPRESENTED FOR 2,938,684.00 SHARES, VALUED AT $1.00 EACH AND ANALYZED AS FOLLOWS: SHAREHOLDERS SHARES IMPORTATION SERIES A SALVADOR ARANA AVALOS(1) 4,740 $ 4,740.00 LUIS I. ARANA OLAVARRI 80 $ 80.00 JUAN CARLOS ARANA OLAVARRI 11,200 $ 1,200.00 JULIA OLAVARRI DE ARANA 1,980 $ 1,980.00 SUB-TOTAL 8,000 $ 8,000.00 SERIES B SALVADOR ARANA AVALOS 2,506,944 $2,506,944.00 LUIS I. ARANA OLAVARRI 151,920 $ 151,920.00 JUAN CARLOS ARANA OLAVARRI 158,800 $ 158,800.00 JULIA OLAVARRI DE ARANA 113,020 $ 113,020.00 SUB-TOTAL 2,930,684 $2,930,684.00 TOTAL 2,938,684 $2,938,684.00 (1) AT THE DEATH OF SALVADOR ARANA AVALOS, OCURRED APRIL 8TH, 1996, A SUCCESIVE TESTAMENT TRIAL WAS OPENED FOR PROPERTY GOODS AND SHARES FOR COMERCIAL TARGA S.A. DE C.V. ON MAY 15, 1997 THE PARTNERS AGREED ON ARRANGING AN ASSEMBLY TO TRASSPASS THE SHARES FROM SALVADOR ARANA OVALOS TO JULIA OLAVARRI DE ARANA. IT WAS ALL RECORDED IN THE COMPANY MINUTES. HOWEVER, THE AGREEMENT MADE BY THE PARTNERS, AS MENTIONED IN THE PARAGAPH ABOVE, DID NOT PROCEED. THERE IS NOT A DOCUMENT THAT DESIGNATES JULIA ARANA DE OLAVARRI AS A TOTAL BENIFECIARY OF THE SHARES OWNED BY SALVADOR ARANA OVALOS IN CASE OF DEATH. THEREFORE, SALVADOR ARANA OVALOS WILL APPEAR AS A SHAREHOLDER AND PARTNER UNTIL THE TRIAL IS SETTLED. ON THE MONTH OF DECEMBER 2005 THE PARTNER JULIA OLAVARRI DE ARANA MADE A CONTRIBUTION TO THE FIXED CAPITAL OF $3,198,742.00 PESOS, EQUIVALENT TO 3,198,742 SHARES WITH A NOMINAL VALUE OF ONE PESO EACH SHARE. MINUTES DATED JULY 7TH, 2006 WITH OUT FOLLOWING STANDARD PROTOCOL. IT IS VERY IMPORTANT TO MENTION THE BALANCE FINANCIAL ERRORS ON DECEMBER 31, 2006 AND CONSEQUENTLY THE CAPITAL AUMENTATION OF $3,801,959.00 EQUAL TO 3,801,959 SHARES AT ONE PESO EACH ONE. THIS ERR OR WAS RECORDED IN THE MINUTES BOOK ON MAY 4TH, 2007 AS NUMBER 1993; IN TIJUANA BAJA CALIFORNIA WITH THE PUBLIC ACCOUNTANT NUMBER 08 LIC. JOSE GUADALUPE GUTIERREZ RAMIREZ. THE ERROR TOOK PLACE AT THE SAME TIME AS THE PARTNER MENTIONED ABOVE, MADE THE FIXED CAPITAL CONTRIBUTION. THE COMPANY RECEIVED IN THEIR BANK A DEPOSIT MADE BY THE ADMINISTRATIVE SERVICE FOR THE TAX REINBURSEMENT APLICATION TO THE AGREGATED VALUE OF NOVEMBER 2005 FOR $59,487.00 PESOS, DECEMBER 2005 FOR $118,504.00 PESOS, SEPTEMBER 2005 FOR $33,339.00 PESOS, OCTOBER 2005 FOR $191,692.00 PESOS, AUGUST 2004 FOR $ 66,802.00 PESOS AND JULY 2004 FOR 114,118.00 PESOS, ALSO ADDING THE UPDATE FOR $19,275.00 PESOS; ALL THIS ADDING UP TO $603,217.00 PESOS. THIS SUM WAS THEN RECORDED AS AN ERROR TO THE CONTRIBUTION MADE BY JULIA OLAVARRI DE ARANA, NOT REALIZING THAT IT CAME FROM THE TAX REINBURSEMENT TO THE AGREGATED VALUE. THIS ERROR WAS DETECTED ON JULY 7TH, 2006, LATER PROCEEDED BY AN ASEMBLY WHERE THEY CORRECTED THE MINUTES OF DECEMBER AND RECOGNIZED THE CAPITAL AUMENTATION OF $3,801,959.00, WHEN IT SHOULD HAVE BEEN OF $3,198,742.00 PESOS THE CAPITAL WAS SETTLED AS FOLLOWS: SHAREHOLDERS SHARES IMPORTATION SERIES A SALVADOR ARANA AVALOS (1) 4,740 $ 4,740.000 LUIS I. ARANA OLAVARRI 80 $ 80.00 JUAN CARLOS ARANA OLAVARRI 1,200 $ 1,200.00 JULIAOLAVARRI DE ARANA 3,200,722 $ 3,200,722.00 SUB-TOTAL 3,206,742 $ 3,206,742.00 SERIES B SALVADOR ARANA AVALOS 2,506,944 $ 2,506,944.00 LUIS I. ARANA OLAVARRI 151,920 $ 151,920.00 JUAN CARLOS ARANA OLAVARRI 158,800 $ 158,800.00 JULIA OLAVARRI DE ARANA 113,020 $ 113,020.00 SUB-TOTAL 2,930,684 $ 2,930,684.00 TOTAL 6,137,426 $ 6,137,426.00 THE NUMBERS IN 2005 WERE MODIFIED TO ACCOMMODATE THE PRESENTATION CRITERIA USED IN 2006. 11.- INTEREST AND FINANCIAL COSTS IN THIS FINANCIAL COSTS 2006 2005 BANK INTERESTS $ 0.00 $ 0.00 BANK COMISSION $ 48,030.00 $ 25,225.00 SUB-TOTAL $ 48,030.00 $ 25,225.00 FINANCIAL PRODUCTS INTERESTS OVER INVERSIONS $ 9,305.00 $ 3,375.00 SUB-TOTAL $ -38,725.00 $ -21,850.00 EXCHANGING REULTS EXCHANGING UTILITY $4,159,373.00 $5,011,660.00 EXCHANGING LOST $4,502,322.00 $4,369,607.00 SUB-TOTAL $ -342,949.00 $ 642,053.00 FINANCIAL INTEGRAL COSTS $ -381,674.00 $ 620,203.00 12. - FOREIGN CURRENCY POSITION THE POSITION OF THE FOGEIGN CURRENCEY OF DECEMBER 31ST, 2006 IS INTEGRATED AS FOLLOWS: ACCOUNTS AMERICAN DOLLARS PESOS ACTIVES BANKS $ 97,540.36 $ 1,060,800.19 CLIENTS $ 779,760.37 $ 8,480,283.00 SUB-TOTAL $ 877,300.73 $ 9,542,084.00 MINUS: PASIVES VENDORS $ 2,487,440.52 $ 27,052,159.38 TOTAL IN DOLLARS AND PESOS: $-1,610,139.79 $-17,511,075.29 THE FOREIGN CURRENCY VALUE WAS SUBJECT TO THE EXCHANGE RATE OF DECEMBER 31ST, 2006 AT 10.8755. 13. - FISCAL LOSS TO AMORTIZE ACCORDING TO THE TAX LAW OVER THE EFFECTIVE INCOME, THE FISCAL LOSSES CAN BE AMORTIZED AGAINST THE FISCAL GAINS THAT WILL BE OBTAINED IN THE FOLLOWING 10 YEARS TO THE LOST THAT ONE IS APPLIED. AS DECEMBER 31ST, 2006 THERE ARE NO FISCAL LOSSES TO AMORTIZE. 14. - TAX REGIMENT OVER INCOME AND ASSETS. THE COMPANY IS SYBJECT TO THE TAX OVER INCOME (ISR) AND ASSETS (IMPAC). THE ISR IS CALCULATED CONSIDERING CERTAIN GRAVABLE OR DEDUCIBLE EFFECTS ON INFLATION LIKE THE CALCULATED DEPRECIATION OVER CONSTANT PRICE VALUES, THAT ALLOWS THE DEDUCTION OF THE ACTUAL COSTS AND ACUMULATE OR DEDUCE THE INFLATION EFFECT OVER CERTAIN MONETARY ASSETSS AND LIABILITIES, THROUGH THE ANNUAL ADJUSTMENT OF INFLATION, WHICH IS SIMILAR TO THE RESULT OF THE MONETARY POSITION. ON THE OTHER HAND, THE IMPACT IS BASED ON THE 1.8% OVER A NET PERCENTAGE OF THE ACTIVE MAJORITY (UPDATED VALUES) AND CERTAIN LIABILITIES, PAID ONLY WITH THE AMOUNT THAT EXEEDS THE ISR OF THE YEAR; EVERY OTHER LIABILITY THAT TAKES PLACE WILL BE RECOVERABLE AGAINST THE AMOUNT THAT THE ISR EXCEEDS TO THE TAX OF ASSETSS IN THE SUBSEQUENT TEN YEARS. THE COMPANY HAS PAID IMPACT FOR THE FOLLOWING YEARS, WHICH IN TURN WILL HAVE THE RIGHT TO RECUPERATE AS STATED IN THE IMPACT LAW ARTICLE 9: YEAR 2003 $523,846.00 YEAR 2004 $501,798.00 FOR THE YEAR 2006 THE ISR IS $0.00 AND THE ASSET TAX IS FOR $50,166.00 PESOS. 15. - PTU THE WORKERES PARTICIPATION IN THE GAINS ARE CALCULATED OVER THE VARIOUS DISPOSITIONS OF THE TAX LAW OVER INCOME, ATICLE 14. 16. -RECONCILIATION OF THE BOOK AND TAX INCME THE PPRINCIPLE DIFFERENCE BETWEEM BOOK AND TAX INCOME IS THE ANNUAL ADJUSTMENT FOR INFLATION. THE FISCAL DEPRECIATION WAS CALCULATED IN CONSTANT PRICES AND ACUMULATED INVENTORY IN TERMS OF FRACTION IV OF ARTICLE THREE, THE 2006 TRANSITORY DISPOSITIONS OF THE TAX LAW OVER INCOME. 17. - INVENTORIES THE INVENTORIES ARE RECORDED AT THE COST OF THE ACQUISITION, UNDER THE METHOD OF FIRST IN- FIRST OUT (PEPS) 18. - SALES COST THE SALES COST IS DETERMINED IN ACCORDANCE TO THE ABSORBING COST SYSTEM OVER THE BASE OF HISTORICAL COSTS. LAST ENTRANCE, FIRST EXIT (UEPS). 19. - RELATED PARTIES DURING THE YEARS ENDED DECEMBER 31, 2006 AND 2005 THE COMPANY HAD THE FOLLOWING RELATED PARTIES TRANSACTIONS: CONCEPT 2006 2005 DEBITS WAGES FOR ADMINISTRATIVE SERVICES $ 1,690,909.00 $ 1,690,909.00 (INCLUDED IN ADMINISTRATIVE SPENDING) PAID TO RELATED PARTIES "ASESORIAS Y SERVICIOS MULTIPLES, S.C" TECHNICAL ASSISTANCE $ 916,453.00 $ 759,260.00 (INCLUDED IN ADMINISTRATIVE SPENDING) PAID TO RELATED PARTIES "TAKE & BAKE DE MEXICO S.A. DE C.V) TOTAL PAYMENTS $ 2,607,362.00 $ 2,450,169.00 20. - ISR ACREDITED AGAINST THE TAX YEAR 2005. THE COMPANY PAID DIVIDENDS OF $1,692,818.00 IN YEAR 2002, AND PAID $592,514.00 OF ISR IN THE SAME YEAR, HAVING TO CREDIT SUCH TAX IN THE ANNUAL TAX DECLARATION MADE IN THE YEAR 2002, BUT SINCE IT RESULTED IN A FISCAL LOSS, THE RIGHT WAS THEN MOVED TO YEARS 2003, 2004 AND 2005 UNDER ARTICLE 11 FRACTION I OF TAX LAW OVER INCOME ON 2002. SINCE THE 2003 YEAR WAS A FISCAL RESULT OF ZERO AND THE 2004 YEAR WAS A FISCAL LOSS, THE RIGHT WAS THEN MOVED TO THE YEAR 2005. THEREFORE COMERCIAL TARGA S.A. DE C.V. IS MAKING USE OF THIS YEAR, AGAINST THE ISR TAX OF THE 2005 YEAR IN THE AMOUNT OF $592,514.00 PESOS. AS TO ARTICLE 11, FRACTION II, TAX LAW OVER INCOME, THE ACREDITED TAX IN TERMS OF THE LAST PARAGRAPH, WILL BE DIVIDED UNDER THE APPLICABLE FACTORS OF THE TRANSITORY DISPOSITIONS OF 2002, FRACTION LXXXII, 0.5385, TO DETERMINE THE AMOUNT THAT SHOULD SUBTRACT OF THE NET FICAL UTILITY CALCULATED ACORDING TO ARTICLE 88 OF THE TAX LAW OVER INCOME. THE REST OF THE AMOUNT OF THE MENTIONED TAX ABOVE THE $1,100,305.00, WILL REDUCE THE NET FISCAL GAIN FOR THE YEAR 2005, IN TERMS OF THE ARTICLES ALREADY MENTIONED. (iii) COMERCIAL TARGA S.A. DE C.V. BALANCE SHEETS (UNAUDITED) SEPTEMBER 30, DECEMBER 31, 2007 2006 ----------- ----------- ASSETS Current assets: Cash and cash equivalents $ 121,898 $ 158,358 Accounts receivable 1,041,929 1,075,495 Recoverable taxes 350,148 182,052 Other receivables 8,395 4,538 Other prepaid 171 98,915 Inventories 1,416,557 932,887 ----------- ----------- TOTAL CURRENT ASSETS 2,939,099 2,452,244 Property and equipment 538,342 534,234 Depreciation (235,313) (203,425) ----------- ----------- Property and equipment (net) 303,029 330,808 Other assets Guarantee deposits 16,404 16,487 Added value tax to collect 5,138 5,948 Leasehold improvements 25,773 29,700 Amortization of leasehold improvements (5,498) (5,204) ----------- ----------- Total other assets 41,818 46,931 ----------- ----------- TOTAL ASSETS $ 3,283,946 $ 2,829,984 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accrued expenses $ 19,917 $ 22,827 Accounts payable 2,948,529 2,491,246 Income tax payable -- 9,895 Other taxes payable 4,486 12,671 Added value tax payable 17,221 16,778 ----------- ----------- TOTAL CURRENT LIABILITIES 2,553,416 Stockholders' equity: Paid-in capital 563,227 563,227 Legal reserve 40,572 40,572 Accumulated other comprehensive loss (4,303) 972 Retained earnings (deficit) (305,703 (328,203) ----------- ----------- TOTAL STOCKHOLDERS' EQUITY 293,793 276,568 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,283,946 $ 2,829,984 =========== =========== The accompanying notes are an integral part of these financial statements. COMERCIAL TARGA S.A. DE C.V. STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 ----------- REVENUES FROM SERVICES $ 5,529,215 COST OF SERVICES 4,383,156 ----------- GROSS PROFIT 1,146,059 OPERATING EXPENSES General and administrative expenses 936,684 ----------- TOTAL OPERATING EXPENSES 936,684 NET PROFIT FROM OPERATIONS 209,375 OTHER INCOME AND (EXPENSE) Interest income (186,875) Provision for income taxes -- ----------- NET PROFIT $ 22,500 =========== The accompanying notes are an integral part of these financial statements. COMERCIAL TARGA S.A. DE C.V. STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 ------------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 22,500 Adjustment to reconcile net loss to net cash used for operating activities: Depreciation 32,182 Changes in operating assets and liabilities: Increase in accounts receivable (39,643) Decrease in deposits (483,670) Increase in taxes 83 Increase in added value tax 810 Decrease in accounts payable and other liabilities 436,734 ------------ NET CASH USED FOR OPERATING ACTIVITIES (31,004) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets (181) ------------ NET CASH USED FOR INVESTING ACTIVITIES (181) EFFECT OF EXCHANGE RATE CHANGES ON CASH (5,575) ------------ NET DECREASE IN CASH (32,460) Cash - Beginning 158,358 ------------ CASH - Ending $ 121,898 ============ The accompanying notes are an integral part of these financial statements. COMERCIAL TARGA S.A. DE C.V. NOTES TO FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED) NOTE NO. 1 OPERATIONS THE COMPANY'S BUSINESS IS THE IMPORTATION AND DISTRIBUTION OF CHEESES. THE COMPANY HAS A WAREHOUSE AND FACILITIES IN TIJUNA. NOTE NO. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES THE CONTINUACION IS A SUMMARY OF SIGNIFICANT ACCOUNTING UTILIZED IN THE PREPARATION OF THE FINANCIAL STATEMENTS. A) PROPERTY AND EQUIPMENT. THE PROPERTY AND EQUIPMENT ARE RECORDED AT COST. THE MODIFICATIONS AND IMPROVEMENTS OF IMPORTANCE ARE CAPITALIZED WHILE THE REPLACEMENTS, REPAIRS AND MAINTENANCE THAT DO NOT PROLONG THE LIFE OF THE ASSETS ARE EXPENSED. B) DEPRECIATION DEPRECIATION IS CALCULATED USING THE STRAIGHT LINE METHOD USING THEE FOLLOWING ANNUAL RATES. FURNITURE AND FIXTURES 10% COMPUTERS 30% TRUCKS AND AUTOS 25% C) COMPENSATIONS AND PAYMENTS TO RETIREES WORKERS ARE ENTITLED BY LAW TO COMPENSATION WHEN THEY LEAVE THE COMPANY IN ACCORDANCE WITH HOW LONG THEY HAVE BEEN WITH THE COMPANY. THE COMPANY RECORDS THE EXPENSE IN THE PERIOD IN WHICH THEY PAY THE WORKERS. NOTES NO. 3. RESTRICTIONS ON RETAINED EARNINGS A) THERE IS NO TAX ON DIVIDENDS PAID OUT OF "FISCAL EARNINGS NET" IF IN COMPLIANCE WITH ARTICLE 88 OF THE TAX LAW.. IN THE EVENT THAT PAYMENT DOES NOT COME FROM THE BALANCE OF THAT ACCOUNT, THE RETAINED TAX OF 29% WILL BE WITHHELD. DIVIDENDS CANNOT EXCEED THE RETAINED EARNINGS. B) 5% OF NET INCOME EACH YEAR SHOULD BE PUT INTO A LEGAL RESERVE UNTIL THE LEGAL RESERVE EQUALS 20% OF CAPITAL. THIS RESERVE CANNOT BE PAID OUT EXCEPT AS STOCK DIVIDEND. NOTE NO. 6 CONTINGENT LIABILITIES ACCORDING TO THE FEDERAL LABOR LAW , THE COMPANY HAS A CONTINGENT LIABILITY FOR PAYMENTS TO INDEMINFY EMPLOYEES AND WORKERS WHO LEAVE UNDER CERTAIN CIRCUMSTANCES AS NOTED IN THE NOTE NO. 2 ABOVE. THE COMPANY DOES NOT RECORD ANY LIABILITY FOR SUCH PAYMENT TO BE MADE. EX-99.2 3 nascent_8ka-ex9902.txt PRO FORMA FINANCIAL INFORMATION EXHIBIT 99.2 (I) NASCENT WINE COMPANY, INC. AND SUBSIDIARIES\COMERCIAL TARGA, S.A. DE C.V. PRO FORMA BALANCE SHEET (UNAUDITED) SEPTEMBER 30, 2007 ------------ ASSETS Current assets: Cash $ 2,027,632 Accounts receivable 7,516,088 Inventory 6,532,812 Prepaid and deposits 1,415,361 Investments 458,698 ------------ TOTAL CURRENT ASSETS 17,950,591 Property and equipment, net 2,271,812 Other assets: Acquisition of distribution rights of Miller Beer (net) 6,894,373 License and trade marks 4,363,333 Goodwill 14,645,046 ------------ TOTAL ASSETS $ 46,125,155 ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 6,463,388 Accrued expenses 970,786 Accrued interest 377,290 Bank loans 575,663 Loans payable, less un-amortized debt interest (515,059) Other loans payable 411,345 Capital lease deferred 775,342 Acquisition loans-current portiion 6,200,000 Shareholder loans 831,003 Shareholder loans ------------ TOTAL CURRENT LIABILITIES 16,089,758 Long term debt 2,000,000 ------------ TOTAL LIABILITIES 18,089,758 Stockholders' equity: Preferred stock, $0.001 par value, 5,000,000 shares authorized 1,000,000 issued and outstanding at September 30, 2007 1,000 Paid in preferred stock 7,342,305 Common stock, $0.001 par value, 195,000,000 shares authorized 83,641,706 and 52,050,000 shares issued and outstanding as of September 30, 2007 and December 31,2006, respectively 83,642 Additional paid-in capital 29,416,691 Accumulated other comprehensive loss (81,102) Deficit accumulated (8,727,139) ------------ TOTAL STOCKHOLDERS' EQUITY 28,304,986 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 46,125,155 ============ The accompanying notes are an integral part of these financial statements. NASCENT WINE COMPANY, INC. AND SUBSIDIARIES\ COMERCIAL TARGA, S.A. DE C.V. PRO FORMA STATEMENT OF OPERATIONS (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 ------------- REVENUES 30,944,954 COST OF REVENUES 25,457,179 ------------- GROSS PROFIT 5,487,775 OPERATING EXPENSES General and administrative expenses 8,785,267 ------------- TOTAL OPERATING EXPENSES 8,785,267 LOSS FROM OPERATIONS (3,297,492) OTHER INCOME AND (EXPENSE) Interest income 12,883 Interest expense (1,637,696) Warrant expense (1,460,300) Provision for income taxes -- ------------- NET LOSS (6,282,605) ============= The accompanying notes are an integral part of these financial statements. NASCENT WINE COMPANY, INC. AND SUBSIDIARIES\ COMERCIAL TARGA, S.A. DE C.V. NOTES TO PRO FORMA FINANCIAL STATEMENTS SEPTEMBER 30, 2007 (UNAUDITED) NOTE A - COMPANY OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INTERIM FINANCIAL INFORMATION The consolidated financial statements of Nascent Wine Company, Inc. (the "Company"), and its wholly-owned subsidiaries, Best Beer S.A. de C. V., (Best Beer) International Foodservice Specialists, Inc. (IFS), Palermo Italian Foods, LLC (Palermo), Pasani, S.A de C.V. (Pasani), Eco Pac Distributing, LLC (Eco Pac) and Grupo Sur Promociones de Mexico, S.A de C.V (Grupo Sur) as of September 30, 2007 and related footnote information are unaudited. All adjustments (consisting only of normal recurring adjustments) have been made which, in the opinion of management, are necessary for a fair presentation. Results of operations for the nine months and three months ended September 30, 2007 and 2006 are not necessarily indicative of the results that may be expected for any future period. Certain information and footnote disclosures, normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been omitted. These financial statements should be read in conjunction with the audited financial statements and notes for the year ended December 31, 2006. COMPANY OVERVIEW The Company was incorporated under the laws of the State of Nevada, on December 31, 2002 (Date of inception). The Company had minimal operations until it acquired the rights to distribute Miller Beer in Baja California, Mexico from Piancone Group International, Inc. (PGII), issuing 17,500,000 shares of common stock at the par value $0.45 per share ($7,875,000) and paying off $800,000 debt of previous license holder. It started its distribution operations as of July 1, 2006. In addition to Beer it distributes food and beverage products. In accordance with SFAS #7, the Company was considered a development stage company until it started operations on July 1, 2006. The Company incorporated Best Beer S.A. de C. V. (Best Beer) in May 2006 in order to distribute in Baja California. The Company acquired the assets of Piancone Group International, Inc., which was merged into Nascent, and Palermo Italian Foods, LLC in the fourth quarter of 2006. In May 2007 the Company acquired Pasani, S.A.de C.V. and Eco Pac Distributing, LLC that distributes imported products throughout Mexico. In July 2007 the Company acquired Grupo Sur Promociones de Mexico, S.A. de C. V. (Grupo Sur). Grupo Sur has been in the Mexican market for 30 years and is one of the leading field marketing and below the line marketing organization in Mexico with 4,500 contract employees servicing 240,000 retail accounts including supermarkets and convenience stores. Grupo Sur's expertise includes merchandising, promotions, sampling , retail data collection and sales and marketing of retail products The Pro Forma Balance Sheet and Statement of operations include the activities of Comercial Targa S.A de C.V (Targa) that was acquired by the Company in October, 2007 PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Best Beer S.A. de C. V., (Best Beer) International Foodservice Specialists, Inc. (IFS), Palermo Italian Foods, LLC (Palermo), Pasani, S.A de C.V.(Pasani), Eco Pac Distributing, LLC (Eco Pac) and Grupo Sur Promociones de Mexico, S.A. de C. V. (Grupo Sur). The financial statements have been consolidated with the parent company and all inter-company transactions and balances have been eliminated in consolidation. FOREIGN CURRENCY TRANSLATION The Company translates the foreign currency financial statements of its foreign operations in accordance with Generally Accepted Accounting Principles by translating balance sheet accounts at the appropriate historical or current exchange rate on the balance sheet date and the income statement accounts using the prevailing exchange rates at the transaction date. Cash flow statements are are prepared in the foreign currency prior to translation. Translation gains and losses are recorded in stockholders' equity and realized gains and losses are reflected in operations. BASIS OF PREPARATION OF FINANCIAL STATEMENTS The accompanying financial statements are prepared in accordance with U.S. generally accepted accounting standards (GAAP). The financial statements have been prepared assuming that the Company will continue as a going concern. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets, and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates, however the Company is not currently aware of any changes in such estimates. INVENTORIES Inventories are accounted for on the first-in, first-out basis. Any products reaching their expiration dates are written off. REVENUE RECOGNITION The Company reports revenue using the accrual method, in which revenues are recorded as services are rendered or as products are delivered and billings are generated. ALLOWANCE FOR DOUBTFUL ACCOUNTS The Company has not had sufficient experience with bad debts to establish a policy. However, the Company has reviewed all accounts and determined that an allowance for uncollectible accounts required at September 30, 2007 is $246,696. PROPERTY AND EQUIPMENT Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful life of the assets, which is three to ten years. IMPAIRMENT OF LONG-LIVED ASSETES The Company acquired long-lived assets during the last six month of the year ended December 31, 2006 and first nine months of 2007. The company will review the carrying values of its long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable and\or annually. No impairment losses were recorded in 2007. TAXES ON INCOME The Company follows Statement of Financial Accounting Standard No. 109 "Accounting for Income Taxes" (SFAS No. 109) for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the differences between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expense or benefit is based on the change in the asset or liability each period. If available evidence suggests that is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax asset to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. STOCK - BASED COMPENSATION The Company accounts for stock-based compensation in accordance with Statement of Financial Accounting Standards No. 123r share based payment. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity based compensation issued to employees and non- employees. The Company did not grant any new employee options and no options were cancelled or exercised during the nine months ended September 30, 2007. EARNINGS PER SHARE Basic earnings per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. GOING CONCERN The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. The Company commenced operations distributing Miller beer and other products in Baja California, Mexico starting July 1, 2006. The Company has acquired three additional distribution companies and a merchandising, promotions, sampling, retail data collection company during the past year. NOTE B - NOTES PAYABLE The Company has obtained Bridge loan financing that reached $4,515,000 at the end of May 2007. The balance at September 30, 2007 is zero. As additional consideration to obtain the loans, the Company issued warrants to the lenders to purchase 10,774,000 shares of common stock at a price per share of $0.25 to $1.05. The difference between the price to purchase shares and the closing price of the stock on the date of grant of the warrants $1,305,000 is being written off over the life of the loans (one year). The un-amortized interest, $515,000 will be expensed by December 31, 2007. Interest amortized during the period was $785,426 NOTE C - STOCKHOLDERS' EQUITY The Company is authorized to issue 195,000,000 shares of common stock at $.001 par value, and 5,000,000 shares of preferred stock at $.001 par value. On April 12, 2006, the Company did a 20 for 1 split. The balance of shares issued after the split was 86,568,800. On April 27, 2006, 69,068,800 shares were cancelled. On April 27, 2006, the Company issued 17,500,000 shares of common stock to acquire the distribution rights for Miller beer in Baja California, Mexico at a per share value of $0.45 per share ($7,875,000) and paid off the debt of the previous license holder to Miller Beer ($800,000). The total cost of the license was $8,675,000. The Company is amortizing the acquisition over 10 year and will evaluate the value of the intangible asset on an annual basis. During the nine months ended September 30, 2007 the Company issued 127,500 shares of common stock for services rendered in the amount of $129,000 and 2,926,181 shares of common stock to redeem notes payable to shareholders in the amount of $1,171,872. The Company received subscriptions for an additional 21,304,000 shares of common stock in the amount of $8,522,468 less expenses of $1,235,151. At September 30, 2007 the Company had outstanding warrants (not including the York warrants-see below) to purchase 18,120,476 shares of common stock at a price of between $0.25 and $1.05 expiring in 2010. If all warrants were exercised the Company would receive $7,070,000. On July 3, 2007 the Company issued 1,000,000 shares of its Series A Convertible Preferred Stock, par value $0.001 per share at $8.00 per share ($8,000,000) to York Select Unit Trust, Your Credit Opportunities and York Select (York). The Series A Convertible Preferred Stock is convertible into 20,000,000 shares of the Company's common stock, par value $0.001, of the Company, based upon a conversion price of $0.40 per share and a liquidation amount of $8.00 per share. In addition the Company issued the following warrants to purchase: Series A-1 Warrants 500,000 shares of Series A $8.00 per share Immediately preferred stock exercisable and expire July 3, 2010 Series A-2 Warrants 375,000 shares of Series A $8.00 per share Immediately preferred stock exercisable and expire July 3, 2014 Series B Warrants Variable shares of Series B 33% of the average Immediately convertible preferred stock of the Per Share exercisable and depended on the per market Market Value of expire July 3, 2014 value of common shares common stock 30 days preceding date of exercise.
If total warrants exercised they would be convertible to up to 25,000,000 shares of common stock or less, dependent on the Per Share Market Value of the common stock when exercised. The Company paid a cash finder's fee of $560,000 and issued to the finder an aggregate of 1,600,000 common share warrants, each warrant exercisable to purchase one share of common stock at any time until July 3, 2010 at a purchase price of $0.40 per share. NOTE D- SEGMENT INFORMATION The Company has adopted FAS Statement No. 131, "Disclosures about Segments of a Business Enterprise and Related Information". United States Mexico ------------- ------------- Net loss for the nine months ended Sept. 30, 2007 $ 6,291,184 $ 91,421 Net loss for the nine months ended Sept. 30, 2006 $ 196,000 $ 8,000 Long lived assets (net) at Sept. 30, 2007 $ 961,255 $ 1,310,557 Long lived assets (net) at Sept. 30, 2006 $ 3,000 $ 37,000
NOTE E - RELATED PARTY TRANSACTIONS The Company has unsecured loans form stockholders totaling $628,000 at September 30, 2007. The loans have various due dates and contain interest rates ranging from 10% to 18%. During the nine months ended September 30, 2007 the Company issued 2,820,977 to retire $1,130,391 of shareholder debt. The maturities of notes payable at September 30, 2007 are as all within one year. On May 3, 2006, we acquired the exclusive rights from Piancone Group International, Inc. to market Miller Beer in Baja California, Mexico, in exchange for 17,500,000 shares of our common stock. At that time, neither Sandro Piancone nor Piancone Group was an affiliate. Concurrent with the acquisition of these rights, Sandro Piancone became our Chief Executive Officer and a director. In October 2006, we acquired substantially all of the assets of Piancone Group in exchange for the issuance of 15,000,000 shares of our common stock. Sandro Piancone, our Chief Executive Officer and a director, was the Chief Executive Officer, a director and the controlling stockholder of Piancone Group International, Inc. at the time its assets were acquired by us. We believe our purchase of Piancone Group's assets was fair and reasonable. NOTE F - ACQUISITION OF LICENSED TRADE MARKS On May 11, 2007 the company entered into a License Agreement with One Seven Props, Inc. whereby the Company was granted an exclusive license to use Licensed trade marks in the United States and Mexico. The Company paid $1,900,000 and a promise to pay $2,500,000 May 11, 2008.The Company will amortize the license total $4,400,000 over 20 years. (ii) NASCENT WINE COMPANY, INC. AND SUBSIDIARIES\ COMERCIAL TARGA, S.A. DE C.V. PRO FORMA BALANCE SHEET (UNAUDITED) DECMBER 31, 2006 ------------ ASSETS Current assets: Cash $ 634,734 Accounts receivable 2,402,648 Inventory 2,070,346 Prepaid and deposits 485,916 ------------ TOTAL CURRENT ASSETS 5,593,644 Property and equipment, net 948,995 Other assets: Acquisition of distribution rights of Miller Beer (net) 8,110,000 Goodwill 11,936,217 ------------ TOTAL ASSETS $ 26,588,856 ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 4,670,588 Accrued expenses 464,482 Accrued interest 276,991 Credit cards 62,784 Bank loans 324,849 Loans payable, less un-amortized debt interest 932,005 Other loans payable 309,434 Shareholder loans 2,440,148 ------------ TOTAL CURRENT LIABILITIES 9,481,281 Long term debt 186,672 ------------ TOTAL LIABILITIES 9,667,953 Stockholders' equity: Preferred stock, $0.001 par value, 5,000,000 shares authorized no shares issued and outstanding 0 Common stock, $0.001 par value, 195,000,000 shares authorized 52,050,000 and 4,328,400 shares issued and outstanding as of December 31, 2006 and December 31, 2005, respectively 52,050 Additional paid-in capital 16,877,705 Subscribed stock less cost to sell 2,334,727 Accumulated other comprehensive loss 957 Deficit accumulated (2,344,536) ------------ TOTAL STOCKHOLDERS' EQUITY 16,920,903 ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 26,588,856 ============ The accompanying notes are an integral part of these financial statements. NASCENT WINE COMPANY, INC. AND SUBSIDIARIES\ COMERCIAL TARGA, S.A. DE C.V. PRO FORMA STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE YEAR ENDED DECEMBER 31, 2006 ------------ REVENUES $ 11,480,302 COST OF REVENUES 9,531,685 ------------ GROSS PROFIT 1,948,617 OPERATING EXPENSES General and administrative expenses 3,517,190 ------------ TOTAL OPERATING EXPENSES 3,517,190 LOSS FROM OPERATIONS (1,568,573) OTHER INCOME AND (EXPENSE) Interest income 7,003 Interest expense (707,961) Provision for income taxes -- ------------ NET LOSS $ (2,269,531) ============ The accompanying notes are an integral part of these financial statements. NASCENT WINE COMPANY/ COMERCIAL TARGA, S.A. DE C.V. PRO-FORMA NOTES TO FINANCIAL STATEMENTS 1. BASIS OF PRESENTATION --------------------- The accompanying pro-forma financial statements have been prepared assuming the transaction between Nascent Wine Company, Inc. and Targa S.A de C.V. (Targa) completed their transaction as of the most recent year end which would have been December 31, 2006. All inter-company transactions have been eliminated in consolidation. These financial statements are filed with the appropriate 8-K filing describing the transaction. Readers of this financial statement should review it in conjunction with the various unaudited 10-QSB filings as well as the appropriate 10-KSB audited financial statements of Nascent Wine Company. Separate financial statements on Targa are also available on separate 8-K filings. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for 2006 have been omitted. Nascent Wine Company (the Parent) is a publicly traded OTC.BB company specializing in importing and distribution of food and beverage products in Mexico and the United States. It trades under the symbol NCTW. Targa is incorporated in Mexico and offers all types of importation and distribution of cheeses. In October of 2007 Targa was acquired by Nascent. 2. DESCRIPTION OF BUSINESS ----------------------- Targa is located in Tijuana, Mexico and imports and distributes cheeses and pizzas. This business is in line with the principal business of Nascent. Nascent operates a food wholesaling business in Mexico through with warehouses in the Cancun, Culiacan, Ciudad Juarez, Guadalajara, Mexico City, Tijuana, Mexicali, Ensenada, Cabo San Lucas, La Paz and Monterrey. The distribution centers offer super markets, restaurants, hotels, bakeries resorts, pizza shops, schools and other food service establishments the largest variety of products locally available. A customized order/shopping list for recurring customers makes it easier for orders to be taken by the experienced sales representatives. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ------------------------------------------ PRINCIPLES OF CONSOLIDATION - --------------------------- The accompanying consolidated pro forma financial statements include the accounts of the parent and its wholly owned subsidiaries. The financial statements have been consolidated with the parent company and all inter-company transactions and balances have been eliminated in consolidation. REVENUE RECOGNITION - ------------------- The Parent recognized revenue when the earnings process is complete. This generally occurs when the products are shipped to the customer in accordance with terms of the agreement, title and risk of loss have been transferred, collection is reasonable assured, and pricing is fixed or determinable. ALLOWANCE FOR DOUBTFUL ACCOUNTS - ------------------------------- The Parent has not had sufficient experience with bad debts to establish a policy. However, the Company considers certain accounts to be in doubt and has provided an allowance of $50,000 at December 31, 2006 INVENTORY - --------- Substantially all inventories consist of food products and related supply items for distribution to food service trade. Inventories are valued at cost, as determined by the first-in, first-out method; in the aggregate, such valuations are not in excess of market. PROPERTY AND EQUIPMENT - ---------------------- Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful life of the assets, which is three to seven years. IMPAIRMENT OF LONG-LIVED ASSETS - ------------------------------- The Parent reviews the carrying value of its long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. USE OF ESTIMATES - ---------------- The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. INCOME TAXES - ------------ Deferred income taxes are reported using the liability method. Deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. NET LOSS PER SHARE - ------------------ In February 1997, the Financial Accounting Standards Board (FASB) issued SFAS No. 128 "Earnings Per Share" which requires the Company to present basic and diluted earnings per share, for all periods presented. The computation of loss per common share (basic and diluted) is based on the weighted average number of shares actually outstanding during the period. The Company has no common stock equivalents, which would dilute earnings per share. FAIR VALUE OF FINANCIAL INSTRUMENTS - ----------------------------------- Financial instruments consist principally of cash and payables. The estimated fair value of these instruments approximate their carrying value. FOREIGN CURRENCY TRANSLATION - ---------------------------- The Company translates the foreign currency financial statements of its foreign operations by translating balance sheet accounts at the appropriate historical or current exchange rate on the balance sheet date and the income statement accounts using the prevailing exchange rates at the transaction date. Translation gains and losses are recorded in stockholders' equity and realized gains and losses are reflected in operations. RECENT ACCOUNTING PRONOUNCEMENTS - -------------------------------- The Company has reviewed recent accounting pronouncements that have been adopted and have concluded that they will not have any material impact on its financial statements. 4. INVESTMENT ---------- The Parent has recognized an investment on the purchase of its distribution rights for Miller Brewing Products in B.C. Mexico. The investment has been recorded at the market price of the stock or .45 cents per share of 17,500,000 shares. 5. GOING CONCERN ------------- The accompanying consolidated pro forma financial statements, which have been prepared in conformity with accounting principles generally accepted in the United States of America, contemplates the continuation of the parent as a going concern. However, the Parent and Subsidiaries have not attained profitability and their continuance is dependent on equity and debt contributions. No adjustments have been made to these financial statements to reflect the outcome of the above uncertainty. 6. CAPITAL STOCK ------------- COMMON STOCK - ------------ The Parent has adopted SFAS No. 123, Accounting For Stock-Based Compensation, accounting using the fair value method. 7. INCOME TAXES ------------ The provision for income taxes on Pasani have been made to these pro forma financials. Deferred tax assets have not been accounted for as the parent can not at this time expect that benefit to be realized. 8. OPERATING LEASES ---------------- OPERATING LEASES - ---------------- The Company leases all of its facilities in Mexico, San Diego, California and Miami, Florida. 9. RELATED PARTY TRANSACTIONS -------------------------- The Company has unsecured loans form stockholders totaling $2,581,648 at December 31, 2006. The loans have various due dates and contain interest rates ranging from 0% to 18%. The maturities of notes payable at December 31, 2006 are as follows: FOR THE YEAR ENDED DECEMBER 31, ---------------------------- 2007 $ 2,440,148 2008 $ 141,500 On May 3, 2006, we acquired the exclusive rights from Piancone Group International, Inc. to market Miller Beer in Baja California, Mexico, in exchange for 17,500,000 shares of our common stock. At that time, neither Sandro Piancone nor Piancone Group was an affiliate. Concurrent with the acquisition of these rights, Sandro Piancone became our Chief Executive Officer and a director. In June 2006, we acquired substantially all of the assets of Piancone Group in exchange for the issuance of 15,000,000 shares of our common stock. Sandro Piancone, our Chief Executive Officer and a director, was the Chief Executive Officer, a director and the controlling stockholder of Piancone Group International, Inc. at the time its assets were acquired by us. We believe our purchase of Piancone Group's assets was fair and reasonable. 11. SEGMENT INFORMATION ------------------- The Company has adopted FAS Statement No. 131, "Disclosures about Segments of a Business Enterprise and Related Information". UNITED STATES MEXICO ------------ ------------ Net loss for the year ended December 31, 2006 $ 1,753,930 $ 515,601 Long lived assets (net) at December 31, 2006 $ 261,283 $ 681,283 -----END PRIVACY-ENHANCED MESSAGE-----