SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES ACT OF 1934
Date of Report (Date of Earliest Event Reported) October 30, 1996
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TREASURY INTERNATIONAL, INC.
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(exact name of Registrant as specified in its charter)
DELAWARE 0-28514 98-0160284
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(State or other jurisdiction Commission (I.R.S. Employer
of incorporation or organization) File No. identification number)
7040 Tranmere Drive, Mississauga, Ontario L5S-1L9
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(Address of principal executive offices)
Registrant's telephone number, including area code: 905-673-1700
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N/A
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Former name or former address, if changed since last report
Page 1 of 11.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) FINANCIAL STATEMENTS OF BUSINESSES ACQUIRED.
At the time it filed its current report on Form 8-K relating to its
October 30, 1996 acquisition of Megatran Investments Ltd., Treasury
International, Inc. ("Registrant") found that it was impracticable to provide
the annual financial statements for the acquiree required to be provided
pursuant to General Instruction C.3 to Form 8-K and, pursuant to Item 7(a)(4)
of Form 8-K, agreed to file said financial statements within 60 days after
the related 8-K report must be filed. This amendment is being filed to
provide the required financial statements, as follows:
MEGATRAN INVESTMENTS LTD.
Accountant's Report
Consolidated balance sheet at
December 31, 1995
Consolidated statement of retained
earnings for the years ended
December 31, 1995 and 1994
Consolidated statement of income
for the years ended December 31,
1995 and 1994
Consolidated statement of changes
in financial position for the
years ended December 31, 1995
and 1994
Notes to consolidated financial
statements
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To the Shareholders of
Megatran Investments Ltd.
We have audited the consolidated balance sheet of Megatran Investments Ltd. as
at December 31, 1995 and the consolidated statements of income, retained
earnings and changes in financial position for the years ended December 31, 1995
and 1994. These consolidated financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform an audit to obtain reasonable
assurance whether the consolidated financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the consolidated financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall consolidated financial
statement presentation.
In our opinion, these consolidated financial statements present fairly, in all
material respects, the financial position of the company as at December 31, 1995
and the results of its operations and changes in its financial position for the
years ended December 31, 1995 and 1994 in accordance with generally accepted
accounting principles.
Concord, Ontario Rosenberg Smith & Partners
December 27, 1996 Chartered Accountants
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MEGATRAN INVESTMENTS LTD.
(Incorporated under the laws of Ontario)
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1995
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1995 1994
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CDN$ CDN$
ASSETS
CURRENT
Accounts receivable 1,190,451 879,534
Inventory 756,111 517,735
Prepaid and sundry 93,446 78,275
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2,040,008 1,475,544
CAPITAL (Note 2) 1,117,989 1,248,864
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3,157,997 2,724,408
LIABILITIES
CURRENT
Bank indebtedness (Note 3) 643,485 373,555
Accounts payable 1,043,658 942,646
Income taxes payable 8,676 22,348
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1,695,819 1,338,549
LONG-TERM
Loans payable (Note 4) 144,000 168,000
DEFERRED INCOME TAXES 82,500 89,500
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1,922,319 1,596,049
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SHAREHOLDER'S EQUITY
STATED CAPITAL (Note 5) 240 240
RETAINED EARNINGS 1,235,438 1,128,119
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1,235,678 1,128,359
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3,157,997 2,724,408
See accompanying notes.
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MEGATRAN INVESTMENTS LTD.
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
YEAR ENDED DECEMBER 31, 1995
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1995 1994
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CDN$ CDN$
RETAINED EARNINGS, beginning of year 1,128,119 1,010,179
Net income 107,319 117,940
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RETAINED EARNINGS, end of year 1,235,438 1,128,119
See accompanying notes.
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MEGATRAN INVESTMENTS LTD.
CONSOLIDATED STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, 1995
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TOTAL
Sub-
Regular Contract 1995 1994
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CDN$ CDN$ CDN$ CDN$
SALES 7,043,128 473,255 7,516,383 6,644,128
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COST OF GOODS SOLD
Inventory of finished goods,
beginning of year 265,800 - 265,800 170,506
Cost of goods manufactured
or sub-contracted 5,292,300 397,305 5,689,605 4,807,607
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5,558,100 397,305 5,955,405 4,978,113
Inventory of finished goods,
end of year 329,604 - 329,604 265,800
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5,228,496 397,305 5,625,801 4,712,313
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GROSS PROFIT 1,814,632 75,950 1,890,582 1,931,815
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OPERATING EXPENSES
General and administrative 292,294 272,270
Selling and delivery 290,768 418,667
Warehouse and factory 862,450 770,278
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1,445,512 1,461,215
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INCOME before undernoted items, amortization
and income taxes 445,070 470,600
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Financial 48,921 45,746
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Loss on disposal of equipment - 13,507
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48,921 59,253
INCOME before amortization and income taxes 396,149 411,347
Amortization 262,648 255,409
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INCOME before income taxes 133,501 155,938
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Income taxes (recovered), current 33,182 37,998
deferred (7,000) -
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26,182 37,998
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NET INCOME 107,319 117,940
See accompanying notes.
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MEGATRAN INVESTMENTS LTD.
CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION
YEAR ENDED DECEMBER 31, 1995
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1995 1994
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CDN$ CDN$
CASH PROVIDED BY (USED FOR):
OPERATING
Net income 107,319 117,940
Items not affecting cash
Amortization 262,648 255,409
Loss on disposal of equipment - 13,507
Deferred income taxes (7,000) -
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362,967 386,856
Change in non-cash working capital
balances related to operations (477,124) (122,837)
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(114,157) 264,019
FINANCING
Decrease in loans payable (24,000) (83,600)
INVESTING
Purchase of capital assets (131,773) (440,746)
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DECREASE IN CASH (269,930) (260,327)
BANK INDEBTEDNESS, beginning of year (373,555) (113,228)
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BANK INDEBTEDNESS, end of year (643,485) (373,555)
See accompanying notes.
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MEGATRAN INVESTMENTS LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1995
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1. ACCOUNTING POLICIES:
(a) Inventory:
Inventory is valued at the lower of cost and net realizable value.
Cost is determined on a first-in, first-out basis.
(b) Amortization:
Amortization is provided over the estimated useful lives of the
capital assets using the following annual rates and methods:
Machinery and equipment 20% declining balance
Office equipment 20% declining balance
Leasehold improvements Straight line over term of lease
Half rates are used in the year of acquisition.
(c) Capitalization of small tools:
It is the company's policy to capitalize small tools in excess of $200
each.
(d) Foreign currency transactions:
These transactions are translated as follows: current balance sheet
items at the exchange rate in effect at the balance sheet date; other
balance sheet items at the historical rates of exchange; revenue and
expenses at the monthly average rate of exchange during the year. The
resulting exchange gains and losses are included in income.
2. CAPITAL ASSETS:
1995 1994
Accumulated Net Book Net Book
Cost Amortization Value Value
--------- ------------ -------- ---------
CDN$ CDN$ CDN$ CDN$
Machinery and equipment 3,155,562 2,122,243 1,033,319 1,202,032
Office equipment 117,870 37,983 79,887 43,210
Leasehold improvements 5,783 1,000 4,783 3,622
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3,279,215 2,161,226 1,117,989 1,248,864
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MEGATRAN INVESTMENTS LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1995
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3. BANK INDEBTEDNESS:
The bank indebtedness is secured by a registered general assignment of book
debts, general security agreement, postponement of claims of the
shareholders, assignment of fire insurance and assignment of life insurance
of one of the shareholders.
4. LOANS PAYABLE:
The loans payable bear interest at 9% per annum. Included in accounts
payable is $8,640 of accrued interest on these loans.
5. STATED CAPITAL:
1995 1994
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CDN$ CDN$
ISSUED
Class "A" shares, non-cumulative,
non-voting, preference shares
Class "B" shares, non-cumulative,
non-voting, preference shares
240 Common shares 240 240
6. LEASE COMMITMENTS:
The minimum rentals payable under long-term operating leases, exclusive of
certain operating costs for which the company is responsible, are
approximately as follows:
CDN$
1996 212,954
1997 216,757
1998 216,757
1999 216,757
2000 and subsequent until expiry 216,757
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1,079,982
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MEGATRAN INVESTMENTS LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1995
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7. CONTINGENT LIABILITIES:
The company is contingently liable for letters of credit issued in the
normal course of business, in the amount of $15,500.
8. INCOME TAXES:
The company has unamortized capital cost available to be claimed
against future years income as follows:
CDN$
Class 43 315,599 (30% declining balance)
Class 39 343,740 (25% declining balance)
Class 13 4,985 (Straight line over 5 years)
Class 12 1,074 (100% declining balance)
Class 8 94,584 (20% declining balance)
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759,982
9. RELATED PARTY TRANSACTION:
The company pays rent to a corporation under common ownership.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Dated: January 10, 1997 TREASURY INTERNATIONAL, INC.
By: James Hal
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James Hal, President
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