INDEPENDENT AUDITORS’ REPORT

 

 

 

INDEPENDENT AUDITORS’ REPORT

 

To the Shareholders and Management of

Elekeiroz S.A.

Várzea Paulista - SP

 

 

1.             We have audited the accompanying individual and consolidated balance sheet of Elekeiroz S.A. (the “Company”) as of December 31, 2007, and the related statements of income, changes in shareholders’ equity, and changes in financial position for the year then ended, all expressed in Brazilian reais and prepared under the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements.

 

2.             Our audits were conducted in accordance with auditing standards applicable in Brazil and comprised: (a) planning of the work, taking into consideration the significance of the balances, volume of transactions, and the accounting and internal control systems of the Company, (b) checking, on a test basis, the evidence and records that support the amounts and accounting information disclosed, and (c) evaluating the significant accounting practices and estimates adopted by management, as well as the presentation of the financial statements taken as a whole.

 

3.             In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2007 and the results of its operations, the changes in shareholders’ equity, and the changes in its financial position for the year then ended in conformity with Brazilian accounting practices.

 

4.             Our exams were conducted with the purpose of issuing an opinion on the financial statements referred to in paragraph 1, taken as whole. The statements of cash flows and value-added, presented to provide supplemental information, are not required as an integral part of the financial statements. The statements of cash flows and value-added were subjected to the same auditing procedures described in paragraph 2 and, in our opinion, are fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

 

5.             The financial statements as of December 31, 2006 were audited by other independent auditors whose report thereon, dated January 19, 2007, was unqualified.

 

6.             The accompanying financial statements have been translated into English for the convenience of readers outside Brazil.

 

 

 

 

 

Săo Paulo, January 25, 2008

 

 

Orlando Octávio de Freitas Júnior

Engagement Partner

BDO Trevisan Auditores Independentes