Demonstrações Contábeis Consolidadas Accounting Statements Together Em 31 de Dezembro de 2006 e December, 2006 and 2005 Parecer dos Auditores

Transcrição

1 Demonstrações Contábeis Consolidadas Accounting Statements Together Em 31 de Dezembro de 2006 e December, 2006 and 2005 Parecer dos Auditores Independentes 2006

2 Insol Intertrading do Brasil Ind. e Com. S.A. Accounting Statements Together Related to the periods ended December 31 st, 2006 and 2005 With report of independent public accountants

3 SUMMARY 1. ACCOUNTING STATEMENTS BALANCE SHEETS INCOME STATEMENT STATEMENT OF CHANGES IN SHAREHOLDER S EQUITY STATEMENT OF CHANGES IN FINANCIAL POSITION EXPLANATORY NOTES...7 NOTE 2.1. THE COMPANY AND IT S OPERATIONS...7 NOTE 2.2. PRESENTATION OF FINANCIAL STATEMENTS...7 NOTE 2.3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CASH AND CASH EQUIVALENTS ACCOUNTS RECEIVABLE INVENTORIES RECOVERABLE TAX INVESTMENTS PARENT COMPANY REAVALIAÇÃO DO ATIVO IMOBILIZADO REVALUATION TAXES PROPERTY, PLANT AND EQUIPMENT DEFERRED SUPPLIERS LOANS ADVANCES ACCRUED LOSS PARENT COMPANY SHARE CAPITAL INSURANCE COVER - CONSOLIDATED REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS GRAFICS...15 Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 2

4 1. ACCOUNTING STATEMENTS 1.1 BALANCE SHEETS AT DECEMBER 31 st, 2006 AND DECEMBER 31 st, 2005 Expressed in Brazilian Reais (R$) (Translation of the original in Portuguese) Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 3

5 1.2 INCOME STATEMENT AT DECEMBER 31 st, 2006 AND DECEMBER 31 st, 2005 Expressed in Brazilian Reais (R$) (Translation of the original in Portuguese) Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 4

6 1.3 STATEMENT OF CHANGES IN SHAREHOLDER S EQUITY AT DECEMBER 31 st, 2006 AND DECEMBER 31 st, 2005 Expressed in Brazilian Reais (R$) (Translation of the original in Portuguese) Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 5

7 1.4 STATEMENT OF CHANGES IN FINANCIAL POSITION AT DECEMBER 31 st, 2006 AND DECEMBER 31 st, 2005 Expressed in Brazilian Reais (R$) (Translation of the original in Portuguese) Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 6

8 2. EXPLANATORY NOTES AT DECEMBER 31 st, 2006 AND DECEMBER 31 st, 2005 Expressed in Brazilian Reais (R$) (Translation of the original in Portuguese) NOTE 2.1. THE COMPANY AND IT S OPERATIONS Insol Intertrading do Brasil Ind. e Com. S/A and it s subsidiaries have as core business the production, storage, processing and trading of oleaginous seeds and it s derivates, as well as manure and fertilizers of any nature. NOTE 2.2. PRESENTATION OF FINANCIAL STATEMENTS The Accounting Statements have been prepared in conformity with the accounting principles established by Brazilian Corporate Law and in accordance with de complementary regulations of the Securities Commission - CMV. This is a free translation to English from the original in Portuguese. a)cash and cash equivalents: Represent cash and highly liquid short-term financial investments with maturities when purchased of 90 days or less. b) Assets receivable or recoverable: Stated at cost or acquisition values and when applicable, monetarily updated. c) Inventories: Stated at average of purchase cost, not exceeding market value or replacement cost. Advances to Suppliers are stated at cost. d) Income taxes: Income taxes in Brazil comprise federal income tax and social contribution. There are no state or local income taxes in Brazil. They were determined as established by the present legislation. Deferred income and social contribution taxes where determined based on the tax loss and classified as Long-term Assets. e) Investments: Investments in subsidiary and associated companies are accounted by the equity method. f) Fixed Assets: Are recorded at cost of acquisition and depreciated on a straight-line basis according to the useful lives of the fixed assets. g) Related parties: The intercompany transactions are made in normal market conditions. h) Consolidation: The consolidated financial statements include the company s and it s subsidiaries accounts: Insol do Brazil Armazéns Gerais e Cerealista Ltda. (Brazilian company) and Sol Atividade Rural Agropecuária Ltda (Brazilian company). Intercompany balance and transactions were eliminated when the consolidation was made. i) Income determination: Income is determined on the accrual basis. Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 7

9 NOTE 2.3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Among the most significant accounting policies adopted, we emphasize: CASH AND CASH EQUIVALENTS Are demonstrated by resources available in banks and highly liquid short-term investments that were not originated by loans. The money market investments are stated at cost plus accrued interest. In 2005 it was also added into the Cash and Cash Equivalents Group of Accounts, the amount of R$ that refers to advances to suppliers and that is reclassified in the present accounting statements. Parent Company Consolidated Contas Caixa e Bancos Aplicações Financeiras Total ACCOUNTS RECEIVABLE Is represented by the receivable amounts from clients that were originated by the sales of company s products. The company does not calculate the bad debt provision. Parent Company Consolidated Clients Home Market Clients Export Total Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 8

10 2.3.3 INVENTORIES Stated at average of purchase cost, not exceeding replacement market value or replacement cost, net of applicable taxes. Advances to Suppliers are stated at cost. Parent Company Consolidated Soybean and Derivates Manure and Fertilizers Wheat and Derivates Advances to Suppliers Others Total RECOVERABLE TAX Are represented by the following groups of accounts: Parent Company Consolidated Contas Recoverable ICMS PIS/COFINS Others Total INVESTMENTS PARENT COMPANY % Sol Atividade Rural Agropecuária Ltda Insol do Brasil Armazéns Gerais Ltda Total Sol Atividade Rural Agropecuária Ltda. has as main goals farming, animals commercialization and agricultural production. Insol do Brasil Armazéns Gerais e Cerealista Ltda has as main goals the storage, conservation, just-in-time and faithful goods delivery, release of storage bills and warrants. Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 9

11 2.3.6 REAVALIAÇÃO DO ATIVO IMOBILIZADO At December, 31 st, 2006, it was registered on the company s fixed assets, the revaluation of property, plant and equipment related to the industrial plant located in the city of Ponta Grossa. The assets were evaluated by market in R$ Reavaliação Value Value Revalued Net, cost value Revalued Net, cost value Lands Buildings Installations Machinery and Equipment Office Furniture Vehicles Total REVALUATION TAXES The taxes on revaluation were accrued. They are related to income taxes and social contribution and were calculated according to the deliberation n. 183/95 of the CVM (Securities Commission) as demonstrated bellow: Value Income Taxes Social Contribution Total PROPERTY, PLANT AND EQUIPMENT Parent Company Consolidated Contas Lands Buildings Installations Machinery and Equipment Office Furniture Vehicles Improvements and others Total Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 10

12 2.3.9 DEFERRED In October 1 st, 2005, Insol Intertrading do Brasil Indústria e Comércio S/A incorporated the company MSB Assessoria Empresarial S/A that possessed investment premium and a related accrual for the preservation of future dividends distribution, both with the same value. This premium was generated by the company s stocks incorporation in October 1 st, This operation was approved by the general assembly of shareholders that happened in that date and the values are based by an economical evaluation report made by independent experts. The accrual for the preservation of future dividends distribution is in accordance with CMV s instructions number 319 and 349. The premium s value is being amortized in 5 years SUPPLIERS Are represented by the following groups of accounts: Parent Company Consolidated Soybean and Derivates Manure and Fertilizers Wheat and Derivates Corn in grain Others Total Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 11

13 LOANS Is represented by the following groups of accounts, net of related market investments: Parent Company Consolidated Trade Credit Agricultural Credit Finame Working Capital Leasing Total Vencíveis a Curto Prazo Exigível a Longo Prazo Loans ordered by contracts dates: Year Total Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 12

14 ADVANCES Are represented by the following groups of accounts: Parent Company Consolidated Soybean and Derivates Corn Others Total ACCRUED LOSS PARENT COMPANY Represents losses related to a supplying contract, in discussion about its effective validation SHARE CAPITAL Insol Intertrading do Brasil Indústria e Comércio S/A is a wholly-owned subsidiary of Nova GS S/A, domicile in country. The capital is compound by (one million five hundred and three thousand) common and nominative shares, with a nominal value of R$ 1,00 (one real) per share INSURANCE COVER - CONSOLIDATED The Company holds insurance cover for fire and miscellaneous risks related to its permanents and assets at amounts considered sufficient to cover possible losses Ponta Grossa - PR, December 31 st, 2006 Luiz Sérgio da Silva Fábio Alex Pacheco Chief of Executive Office Contador CRC-PR /O-7 CPF CPF Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 13

15 3. REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 14

16 4. GRAFICS Volume de Vendas Por Unidade de Negócio (Em Toneladas) (Volume of Sales by Business Unit In Tons) Ton Ton Ton Farinha de Trigo (Wheat Flour) Fertilzante (Fertilizers) Trade Crushing Faturamento Bruto Por Unidade de Negócio (Em US$ Milhões) (Gross Sales by Business Unit In Millions of US$) US$ 61,16 US$ 55,51 US$ 3,49 US$ 0,60 US$ 13,38 US$ 8,39 US$ 3,37 US$ 16,78 US$ 14,61 US$ 78,11 US$ 2,06 US$ 8,79 US$ 17,29 US$ 21,97 Armazéns Gerais (General Warehouses) Farinha de Trigo (Wheat Flour) Fertilzante (Fertilizers) Trade US$ 27,51 US$ 28,54 US$ 28,00 Crushing Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 15

17 Faturamento Bruto Por Unidade de Negócio (Em R$ Milhões) (Gross Sales by Business Unit In Millions of R$) R$ 179,81 R$ 9,92 R$ 39,08 R$ 133,40 R$ 169,61 R$ 4,47 R$ 19,13 R$ 49,09 R$ 1,37 R$ 37,49 R$ 20,50 R$ 7,92 R$ 35,09 R$ 47,82 Armazéns Gerais (General Warehouses) Farinha de Trigo (Wheat Flour) Fertilzante (Fertilizers) Trade R$ 81,72 R$ 68,52 R$ 60,70 Crushing Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 16

18 Volume de Vendas Por Unidade de Negócio (Em %) (Volume of Vendas by Business Unit In %) 5,89% 12,70% 11,48% 20,46% 5,16% 25,76% Farinha de Trigo (Wheat Flour) 34,31% 43,11% 27,28% Fertilzante (Fertilizers) Trade 39,34% 39,03% 35,48% Crushing Faturamento Bruto Por Unidade de Negócio (Em US$ %) (Gross Sales by Business Unit In of US$ %) 5,70% 1,08% 2,64% 15,11% 11,26% 21,88% 27,43% 6,08% 26,32% 22,13% Armazéns Gerais (General Warehouses) Farinha de Trigo (Wheat Flour) 28,13% Fertilzante (Fertilizers) Trade 44,99% 51,41% 35,84% Crushing Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 17

19 Lucro Bruto (Em R$ Milhões) (Gross Profit In Millions of R$) R$ 18,19 R$ 22,79 R$ 27, Lucro Líquido (Em R$ Milhões) (Net Income In Millions of R$) R$ 5,57 R$ 2,79 R$ 3, Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 18

20 Patrimônio Líquido (Em R$ Milhões) (Shareholders' Equity In Millions of R$) R$ 31,80 R$ 5,11 R$ 8,59 R$ 14, Capital Social e Lucros (Capital and Reserves) Reserva de Reavaliação (Reserve Reevaluation) Reavaliação dos Ativos a Mercado Liquido de Efeitos fiscais. (Unidade Industrial de Ponta Grossa) Audited Accounting Statements 12/31/ Insol Intertrading do Brasil Indústria e Comércio S/A. 19