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EXCEL - IDEA: XBRL DOCUMENT - SGB International Holdings Inc.Financial_Report.xls
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EX-31.1 - CERTIFICATION OF THE CEO - SGB International Holdings Inc.exhibit31-1.htm
EX-32.1 - CERTIFICATION OF THE CEO - SGB International Holdings Inc.exhibit32-1.htm
EX-31.2 - CERTIFICATION OF THE CFO - SGB International Holdings Inc.exhibit31-2.htm
10-K - ANNUAL REPORT - SGB International Holdings Inc.form10k.htm
EX-32.2 - CERTIFICATION OF THE CFO - SGB International Holdings Inc.exhibit32-2.htm
v2.4.0.6
RESTATEMENT FOR YEAR ENDED DECEMBER 31, 2010
12 Months Ended
Dec. 31, 2011
RESTATEMENT FOR YEAR ENDED DECEMBER 31, 2010 [Text Block]
19

RESTATEMENT FOR YEAR ENDED DECEMBER 31, 2010

The Company has restated its financial statements as at and for the year ended December 31, 2010 as follows:

a)

Borrowing costs

   
 

Borrowing costs for qualifying assets of the Company were incorrectly expensed over the prior periods when it should have been capitalized and included in the mine development costs.

   
 

The impact of the amounts restated for the above noted errors was to increase the property, equipment and mine development costs by $1,175,186, decrease reserve by $1,038, increase accumulated other comprehensive income by $65,320, increase retained earnings by $1,110,904, increase cost of revenue by $50,952 and decrease interest expenses by $265,595.

b) Asset retirement obligation
 

Asset retirement obligation of the Company was incorrectly calculated and expensed over the prior periods when the related asset retirement obligation amounts should have been capitalized and included as part of mine development cost while the related obligation should have been discounted and recorded its net present value.

   
 

The impact of the amounts restated for the above noted errors was to increase the property, equipment and mine development costs by $374,269, decrease accounts payable and accrued liabilities by $300,783, increase asset retirement obligation by $309,357, decrease reserve by $362, increase accumulated other comprehensive income by $22,817, increase retained earnings by $343,240, increase cost of revenue by $69,103, decrease general and administrative expenses by $126,956 and increase interest expenses by $27,693.

   
c)

Employee welfare and benefit

   
 

Employee welfare and benefit payable of the Company was over accrued over the prior periods when the related employee welfare and benefit should have been accounted for it upon the related expenses are incurred.

   
 

The impact of the amounts restated for the above noted errors was to decrease accounts payable and accrued liabilities by $221,795, decrease reserve by $66, increase accumulated other comprehensive income by $4,159, increase retained earnings by $217,702 decrease general and administrative expenses by $160,643.

   
d)

Reclassification

   
 

Certain reclassification was made to reflect proper financial presentation which included reclassified $150,996 from receivables to prepaid expenses and deposits – non-current, reclassified $3,643,529 from term loan to amounts due to a related party and reclassified $98,722 from depreciation and amortization to cost of revenue.

The following tables summarized the restatements for the year ended December 31, 2010:

    Previously              
Balance sheet   reported     Adjustment     Restated  
             
Cash and cash equivalents   526,564     -     526,564  
Receivables   232,802     (150,996 )   81,806  
Prepaid expenses and deposits   2,065,542     -     2,065,542  
Current assets   2,824,908     (150,996 )   2,673,912  
Prepaid expenses and deposits – non-current   -     150,996     150,996  
Property, equipment and mine development   15,056,286     1,549,455     16,605,741  
costsIntangible assets, net   358,742     -     358,742  
                   
Total assets   18,239,936     1,549,455     19,789,391  
                   
Accounts payable and accrued liabilities   2,290,552     (522,578 )   1,767,974  
Asset retirement obligation - current   -     81,538     81,538  
Amounts due to a related party   -     3,643,529     3,643,529  
                   
Current liabilities   2,290,552     3,202,489     5,493,041  
Asset retirement obligation – long term   -     227,819     227,819  
Term loan   11,495,312     (3,643,529 )   7,851,783  
                   
Total liabilities   13,785,864     (213,221 )   13,572,643  
Paid-in capital   123,913     -     123,913  
Reserve   73,191     (1,466 )   71,725  
Retained earnings   4,200,339     1,671,847     5,872,186  
Accumulated other comprehensive income   56,629     92,295     148,924  
                   
Total stockholders’ equity   4,454,072     1,762,676     6,216,748  
                   
Total liabilities and stockholders’ equity   18,239,936     1,549,455     19,789,391  
Statement of income and comprehensive income   Previously     Adjustment        
    reported     Adjustment     Restated  
             
Revenue   13,617,770     -     13,617,770  
Cost of revenue   (6,702,426 )   (218,777 )   (6.921.203 )
Gross profit   6,915,344     (218,777 )   6,696,567  
Selling expenses   (570 )   -     (570 )
General and administrative expenses   (1,912,758 )   287,599     (1,625,159 )
Depreciation and amortization   (120,889 )   98,722     22,167  
Profit from operations   4,881,127     167,544     5,048,671  
Interest expenses   (1,434,697 )   237,901     (1,196,796 )
Other expenses   (343,427 )   -     (343,427 )
Other income   42,196     -     42,196  
Income before tax   3,145,199     405,445     3,550,644  
Income tax   (127,822 )   -     (127,822 )
Net income   3,017,377     405,445     3,422,822  
Currency translation adjustment   92,929     42,663     135,592  
Comprehensive income   3,110,306     448,108     3,558,414  

    Previously              
Statement of cash flows   reported     Adjustment     Restated  
             
Net cash provided by operating activities   2,453,982     265,594     2,719,576  
Net cash (used in) investing activities   (4,517,961 )   (265,594 )   (4,783,555 )
Net cash provided by financing activities   2,180,720     -     2,180,720  
Increase in cash and cash equivalents   116,741     -     116,741  
Effect of exchange rate changes on cash   14,090     -     14,090  
Cash and cash equivalents – Beginning of year   395,733     -     395,733  
Cash and cash equivalents – End of year   526,564     -     526,564