EX-99.2 10 v081990_ex99-2.htm
EXHIBIT 99.2

Cartan Holdings, Inc.,
and Shiner Group
Pro Forma Combined Financial Statements
(unaudited)
 
 
 
 
 
Contents
 
   
Page
  
       
Pro Forma Combined Financial Statements:
      
       
Pro Forma Combined Balance Sheet as of March 31, 2007 (unaudited)
    
F-20
  
     
 
  
Pro Forma Combined Statements of Operations for the year ended March 31, 2007 (unaudited)
    
F-21
  
     
 
  
Notes to Pro Forma Combined Financial Statements (unaudited)
    
F-22
  
 
The accompanying notes are an integral part of these combined financial statements.
 
F-19
 
Cartan Holdings, Inc.
and Shiner Group
Pro forma Combined Balance Sheet
As of March 31, 2007
(unaudited)
 
   
Cartan
 
Shiner
 
Pro forma
  
 Pro forma
  
   
Holdings (1)
  
Group (2)
  
Adjustments
  
 Combined
  
   
(historical)
  
(historical)
           
                    
ASSETS
                   
                    
CURRENT ASSETS
                   
Cash and cash equivalents 
  
$
4,990
  
$
550,692
        
$$
555,682
 
Accounts receivable, net 
          
5,551,314
         
5,551,314
 
Advances to supplier 
          
1,595,743
         
1,595,743
 
Other receivables 
          
367,793
         
367,793
 
Note Receivable 
          
200,694
         
200,694
 
Inventory 
          
5,539,016
         
5,539,016
 
Prepaid expenses and other current assets 
    
173
   
8,452
         
8,625
 
                           
TOTAL CURRENT ASSETS
    
5,163
   
13,813,704
   
-
   
13,818,867
 
                           
PROPERTY AND EQUIPMENT, net
          
5,764,487
         
5,764,487
 
DEPOSIT
          
141,179
         
141,179
 
INTANGIBLE ASSETS
          
325,351
         
325,351
 
                           
                           
TOTAL ASSETS
  
$
5,163
  
$
20,044,721
  
$
-
  
$
20,049,884
 
                           
                           
LIABILITIES AND STOCKHOLDERS' EQUITY
                          
                           
CURRENT LIABILITIES
                          
Accounts payable 
  
$
2,152
  
$
4,363,994
        
$$
4,366,146
 
Other payables 
    
15,000
   
2,565,561
         
2,580,561
 
Unearned revenue 
          
675,352
         
675,352
 
Accrued payroll 
          
61,439
         
61,439
 
Short term loan 
          
776,880
         
776,880
 
Advances from related parties 
    
791
   
610,499
         
611,290
 
Dividend payable 
          
805,268
         
805,268
 
Tax and welfare payable 
          
320,776
         
320,776
 
                           
TOTAL CURRENT LIABILITIES
    
17,943
   
10,179,769
   
-
   
10,197,712
 
                           
                           
COMMITMENT AND CONTINGENCIES
    
-
   
-
   
-
   
-
 
                           
STOCKHOLDERS' EQUITY
                      
-
 
Common Stock 
    
9,400
   
1,245,212
 a  
(1,228,712
)
  
21,150
 
 
              b  
(4,750
)
      
Additional paid in capital 
    
18,000
   
109,344
 a  
1,228,712
   
1,320,626
 
 
              b  
4,750
       
 
              c  
(40,180
)
      
Donated capital
    
11,300
       c  
(11,300
)
  
-
 
Other comprehensive income 
          
527,166
         
527,166
 
Statutory reserve 
          
2,005,612
         
2,005,612
 
Retained earnings 
    
(51,480
)
  
5,977,618
 c  
51,480
   
5,977,618
 
                           
TOTAL STOCKHOLDERS' EQUITY
    
(12,780
)
  
9,864,952
   
-
   
9,852,172
 
                           
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  
$
5,163
  
$
20,044,721
  
$
-
  
$
20,049,884
 
 
(1) Source: audited financial statements of Cartan Holdings, Inc.
(2) Source: unaudited financial statements of Shiner Group included elsewhere in this Form 8K.

See accompanying notes to pro forma combined financial statements
 
F-20

Cartan Holdings, Inc.
and Shiner Group
Pro forma Combined Statement of Operations
For the Year Ended March 31, 2007
(unaudited)

   
Cartan
  
Shiner
  
 Pro forma
  
 Pro forma
  
   
Holdings (1)
  
Group (2)
 
 Adjustments
  
 Combined
  
   
(historical)
  
(historical)
            
                     
Net Revenue
  
$
-
  
$
33,951,965
  
$
-
 
$
33,951,965
 
                           
Cost of Revenue
    
-
   
27,328,787
   
-
   
27,328,787
 
 
                          
Gross Profit
    
-
   
6,623,178
   
-
   
6,623,178
 
 
                          
Operating expenses:
                          
Selling expenses
          
1,578,585
   
-
   
1,578,585
 
General and administrative expenses
    
41,731
   
1,194,911
   
-
   
1,236,642
 
 
                          
Total operating expenses
    
41,731
   
2,773,496
   
-
   
2,815,227
 
 
                          
Income from operations
    
(41,731
)
  
3,849,682
   
-
   
3,807,951
 
 
                          
Non-operating income (expense):
                          
Other income (expense)
          
278,545
             
Interest income
          
1,443
             
Interest expense
    
-
   
(330,530
)
  
-
   
(330,530
)
Exchange gain (loss)
    
-
   
(23,301
)
  
-
   
(23,301
)
 
                          
Total non-operating income (expense)
    
-
   
(73,843
)
  
-
   
(353,831
)
 
                          
Income before income tax
    
(41,731
)
  
3,775,839
   
-
   
3,454,120
 
 
                          
Income tax
    
-
   
214,504
   
-
   
214,504
 
 
                          
Net income
  
$
(41,731
)
$
3,561,335
  
$
-
 
$
3,239,616
 
 
                          
Earnings per share
  
$
(0.00
)
            
$
0.15
 
 
                          
Weighted average shares outstanding
    
9,400,000
               
21,150,000
 
 
(1) Source: audited financial statements of Cartan Holdings, Inc.
(2) Source: audited financial statements of Shiner Group for the year ended December 31, 2006 included elsewhere in this Form 8K.
 
See accompanying notes to pro forma combined financial statements
 
F-21
 
Cartan Holdings, Inc.,
and Shiner Group
Notes to Pro form Combined Financial Statements


NOTE 1 - BASIS OF PRESENTATION
 

The accompanying pro forma combined balance sheet presents the accounts of Cartan Holdings, Inc., (“Cartan”) and Shiner Group (“Shiner”) as if the acquisition of Shiner Group by Cartan occurred on March 31, 2007. The accompanying pro forma combined statements of operations present the accounts of Cartan for the year ended March 31, 2007, which includes the statement of operations of the Shiner Group for the year ended December 31, 2006 as if the acquisition occurred on April 1, 2006. For accounting purposes, the transaction is being accounted for as a recapitalization of Shiner Group.

The following adjustments would be required if the acquisition occurred as indicated above:

a.   
Recapitalization of Shiner Group to account for issuance of an aggregate of 16,500,000 shares of Cartan to the shareholders of Shiner Group;

b.   
Cancellation of 4,750,000 shares of Cartan common stock owed by Zubeda Mohamed-Lakhani; and

c.   
Eliminate pre-acquisition accumulated deficit and donated capital of Cartan.
 
The accompanying notes are an integral part of these combined financial statements.
 
F-22