Canaf Investments : Consolidated Financial Statements

Consolidated Financial Statements

For the nine months ended July 31st 2021

(Expressed in U.S. dollars)

(Unaudited - Prepared by Management)

• Consolidated Statements of Financial Position
• Consolidated Statements of Comprehensive Income
• Consolidated Statements of Changes in Equity
• Consolidated Statements of Cash Flows
• Notes to the Consolidated Financial Statements

CANAF INVESTMENTS INC.

Notes to the Consolidated Financial Statements

As at July 31, 2021 and October 31, 2020

(Expressed in U.S. Dollars)

NOTICE OF NO AUDITOR REVIEW OF QUARTELY FINANCIAL STATEMENTS

Under National Instrument 51-102, Part 4, subsection, 4.3 (3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited interim financial statements of Canaf Investments Inc. ("the Company") have been prepared by and are the responsibility of the Company's management. The unaudited interim financial statements are prepared in accordance with International Financial Reporting Standards and reflect management's best estimate and judgements based on information currently available.

The Company's independent auditor has not performed a review of these interim financial statements in accordance with the standards established by the Canadian Institute of Chartered Professional Accountants for a review on interim financial statements by an entity's auditor.

CANAF INVESTMENTS INC.

Consolidated Statements of Financial Position

As at July 31, 2021 and October 31, 2020

(Expressed in U.S. Dollars)

		Jul 31	October 31
	Note	2021	2020
		US$	US$
ASSETS
CURRENT
Cash		3,316,563	2,047,774
Trade Receivables	16	1,691,072	1,296,617
Inventories	7	295,248	417,400
Prepaid Expense and Deposits		20,125	21,857
		5,323,008	3,783,648
NON-CURRENT
Property, Plant and Equipment	8	763,313	740,404
Interest Bearing Borrowings	5	1,216,580	1,055,996
Intangible	2(f)	1	1
		1,979,895	1,796,401
		7,302,906	5,580,049
LIABILITIES
CURRENT
Trade and Other Payables	9	1,357,150	1,146,251
Sales Tax Payable		61,478	67,845
Income Taxes Payable	6	244,411	12,937
		1,663,039	1,227,034
SHAREHOLDERS' EQUITY
Share Capital	11	8,079,463	8,079,463
Additional Paid in Capital	5	1,342,549	1,342,549
Accumulated Other Comprehensive Loss -
Foreign Currency Translation Reserve		(1,690,719)	(2,149,469)
Deficit		(2,402,387)	(3,049,200)
Equity Attributable to Canaf Investments Inc. Shareholders		5,328,906	4,223,343
Non-Controlling Interest	5	310,961	129,672
		5,639,867	4,353,015
		7,302,906	5,580,049

Nature of Operations (Note 1)

Economic Dependence (Note 15)

Commitment (Note 16)

Segment Information (Note 17)

The accompanying notes are an integral part of the consolidated financial statements.

Approved on Behalf of the Board:
"Christopher Way"		"Rebecca Williams"
Christopher Way, Director		Rebecca Williams, Director

CANAF INVESTMENTS INC.

Consolidated Statements of Comprehensive Income

As at July 31, 2021 and October 31, 2020

(Expressed in U.S. Dollars)

			9 Months Ended
		Jul 31	Jul 31
	Note	2021	2020
		US$	US$
SALES		10,834,358	9,399,313
COST OF SALES	14	(9,486,399)	(8,354,685)
GROSS PROFIT		1,347,959	1,044,627
EXPENSES
General and Administrative	15	(381,822)	(351,595)
Interest on Bank Loan	10	-	-
Foreign Exchange Gain		6,762	(3,544)
		(375,060)	(355,139)
INCOME BEFORE OTHER ITEM		972,899	689,488
Interest Income		106,821	115,445
Other Income		32,267	14,242
INCOME BEFORE INCOME TAXES		1,111,987	819,175
Current Income Tax (Expense)		(298,103)	(282,716)
NET INCOME FOR THE PERIOD		813,883	536,459
Attributable to the Parent		646,812	389,294
Attributable to the Non Controlling Interest		167,071	147,165

Foreign Currency Translation (Loss) Gain

NET COMPREHENSIVE INCOME FOR THE YEAR

Attributable to the Parent

Attributable to the Non Controlling Interest

BASIC AND DILUTED EARNINGS PER SHARE

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED

813,883 536,459

472,969 (445,775)

1,286,85290,684

1,105,562 (49,788)

181,289 140,473

0.0170.011

47,426,195 47,426,195

The accompanying notes are an integral part of the consolidated financial statements

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CANAF INVESTMENTS INC.

Consolidated Statements of Change in Equity

As at July 31, 2021 and October 31, 2020

(Expressed in U.S. Dollars)

Balance, October 31, 2019

Dividends Paid

Net Income for the Period

Foreign Currency

Translation Gain

Balance, October 31, 2020

Balance, October 31, 2020

Dividends Paid

Net Income for the Period

Foreign Currency

Translation Gain

Balance, July 31, 2021

Note	Number of	Share Capital	Foreign Currency	Additional	Deficit	Non-Controlling	Total
	Common		Translation	Paid in Capital		Interest	Shareholders'
	Shares		Reserve				Equity
		US$	US$	US$	US$	US$	US$
	47,426,195	8,079,463	(1,877,640)	1,342,549	(3,729,688)	23,602	3,838,286
						(107,923)	(107,923)
	-	-	-		680,488	216,925	897,413
	-	-	(271,828)		-	(2,933)	(274,761)
	47,426,195	8,079,463	(2,149,469)	1,342,549	(3,049,200)	129,672	4,353,015
	47,426,195	8,079,463	(2,149,469)	1,342,549	(3,049,200)	129,672	4,353,015
						-	-
	-	-	-		646,812	167,071	813,883
	-	-	458,750		-	14,218	472,969
	47,426,195	8,079,463	(1,690,719)	1,342,549	(2,402,388)	310,961	5,639,867

The accompanying notes are an integral part of the consolidated financial statements.

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