Form 20-F
|
X
|
Form 40-F
|
Yes
|
No
|
X
|
Yes
|
No
|
X
|
Yes
|
No
|
X
|
Item
|
|
1.
|
Communication regarding 1st Quarter Fiscal Year 2011 earnings release
|
Report of independent registered public accounting firm
|
1
|
Condensed consolidated balance sheets
|
2
|
Condensed consolidated statements of operations
|
4
|
Condensed consolidated statements of shareholders’ equity and comprehensive income (loss)
|
5
|
Condensed consolidated statements of cash flows
|
6
|
Notes to the condensed consolidated financial statements
|
7
|
(Unaudited)
June 30,
2010
|
March 31,
2010
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
601,388 | 623,675 | ||||||
Restricted cash
|
28,462 | 25,251 | ||||||
Derivative financial instruments
|
80,215 | 129,456 | ||||||
Trade accounts receivable, less allowances: June 30, 2010 – $31,206; March 31, 2010 – $32,144
|
343,673 | 430,328 | ||||||
Inventories
|
795,814 | 587,720 | ||||||
Advances to suppliers
|
179,557 | 132,258 | ||||||
Taxes recoverable
|
197,266 | 184,090 | ||||||
Other current assets
|
66,555 | 49,155 | ||||||
2,292,930 | 2,161,933 | |||||||
Property, plant, and equipment, net
|
4,205,286 | 4,146,499 | ||||||
Goodwill
|
1,361,800 | 1,362,071 | ||||||
Intangible assets, net
|
582,247 | 602,263 | ||||||
Accounts receivable from Federal Government
|
186,663 | 187,385 | ||||||
Judicial deposits
|
93,739 | 94,083 | ||||||
Other non-current assets
|
467,491 | 440,672 | ||||||
6,897,226 | 6,832,973 | |||||||
Total assets
|
9,190,156 | 8,994,906 |
(Unaudited)
June 30,
2010
|
March 31,
2010
|
|||||||
Liabilities and shareholders’ equity
|
||||||||
Current liabilities:
|
||||||||
Trade accounts payable
|
397,924 | 320,044 | ||||||
Taxes payable
|
109,548 | 121,203 | ||||||
Salaries payable
|
122,058 | 79,497 | ||||||
Current portion of long-term debt
|
498,576 | 471,061 | ||||||
Derivative financial instruments
|
20,781 | 43,067 | ||||||
Dividends payable
|
24,414 | 24,696 | ||||||
Other current liabilities
|
173,522 | 111,971 | ||||||
1,346,823 | 1,171,539 | |||||||
Long-term liabilities:
|
||||||||
Long-term debt
|
2,917,580 | 2,845,667 | ||||||
Estimated liability for legal proceedings and labor claims
|
297,743 | 294,605 | ||||||
Taxes payable
|
380,702 | 381,805 | ||||||
Deferred income taxes
|
403,241 | 408,832 | ||||||
Other long-term liabilities
|
205,264 | 209,402 | ||||||
4,204,530 | 4,140,311 | |||||||
Shareholders’ equity:
|
||||||||
Common shares class A1, $.01 par value. 1,000,000,000 shares authorized; 174,355,341 shares issued and outstanding
|
1,743 | 1,743 | ||||||
Common shares class B1, $.01 par value. 96,332,044 shares authorized, issued and outstanding
|
963 | 963 | ||||||
Common shares class B2, $.01 par value. 92,554,316 shares authorized
|
- | - | ||||||
Additional paid-in capital
|
1,932,294 | 1,932,117 | ||||||
Accumulated other comprehensive loss
|
149,386 | 167,103 | ||||||
Retained earnings (accumulated losses)
|
230,330 | 242,264 | ||||||
Equity attributable to shareholders of Cosan Ltd
|
2,314,716 | 2,344,190 | ||||||
Equity attributable to noncontrolling interests
|
1,324,087 | 1,338,866 | ||||||
Total shareholders’ equity
|
3,638,803 | 3,683,056 | ||||||
Total liabilities and shareholders’ equity
|
9,190,156 | 8,994,906 |
June 30,
2010
|
June30,
2009
|
|||||||
Net sales
|
2,233,840 | 1,720,270 | ||||||
Cost of goods sold
|
(1,994,462 | ) | (1,561,430 | ) | ||||
Gross profit
|
239,378 | 158,840 | ||||||
Selling expenses
|
(122,709 | ) | (102,072 | ) | ||||
General and administrative expenses
|
(68,301 | ) | (7,903 | ) | ||||
Operating income
|
48,368 | 48,865 | ||||||
Other income (expenses):
|
||||||||
Financial income
|
38,792 | 153,262 | ||||||
Financial expenses
|
(101,065 | ) | 62,472 | |||||
Other
|
(133 | ) | (7,927 | ) | ||||
(Loss) income before income taxes and equity in income (loss) of affiliates
|
(14,038 | ) | 256,672 | |||||
Income taxes expense
|
(1,242 | ) | (76,543 | ) | ||||
(Loss) income before equity in income of affiliates
|
(15,280 | ) | 180,129 | |||||
Equity in income (loss) of affiliates
|
553 | (1,713 | ) | |||||
Net (loss) income
|
(14,727 | ) | 178,416 | |||||
Less net income (loss) attributable to noncontrolling interests
|
2,793 | (55,795 | ) | |||||
Net (loss) income attributable to Cosan Ltd
|
(11,934 | ) | 122,621 | |||||
Per-share amounts attributable to Cosan Ltd
|
||||||||
Earnings (loss) from continuing operations
|
||||||||
Basic and diluted
|
(0.04 | ) | 0.50 | |||||
Weighted number of shares outstanding
|
||||||||
Basic and diluted
|
270,687,385 | 246,868,311 |
Common stock
|
||||||||||||||||||||||||||||||||||||
Common
number of
class A
Shares
|
Common
number of
class B
shares
|
Common
amount of
class A
shares
|
Common
amount of
class B
shares
|
Additional
paid-in
capital
|
Retained
earnings
|
Accumulated
other
comprehensive
income
|
Noncontrolling
interests
|
Total
shareholders’
equity
|
||||||||||||||||||||||||||||
Balances at March 30, 2010
|
174,355,341 | 96,332,044 | 1,743 | 963 | 1,932,117 | 242,264 | 167,103 | 1,338,866 | 3,683,056 | |||||||||||||||||||||||||||
Share based compensation
|
- | - | - | - | 177 | - | - | 107 | 284 | |||||||||||||||||||||||||||
Net loss
|
- | - | - | - | - | (11,934 | ) | - | (2,793 | ) | (14,727 | ) | ||||||||||||||||||||||||
Pension plan
|
- | - | - | - | - | - | (321 | ) | (194 | ) | (515 | ) | ||||||||||||||||||||||||
Effective portion of gains/losses on derivative instrument that qualifies as a cash flow hedge
|
- | - | - | - | - | - | 6,927 | 4,198 | 11,125 | |||||||||||||||||||||||||||
Currency translation adjustment
|
(24,323 | ) | (16,097 | ) | (40,420 | ) | ||||||||||||||||||||||||||||||
Total comprehensive loss
|
(44,537 | ) | ||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Balances at June 30, 2010
|
174,355,341 | 96,332,044 | 1,743 | 963 | 1,932,294 | 230,330 | 149,386 | 1,324,087 | 3,638,803 |
June 30,
2010
|
June 30,
2009
|
|||||||
Cash flow from operating activities:
|
||||||||
Net (loss) income attributable to Cosan Limited
|
(11,934 | ) | 122,621 | |||||
Adjustments to reconcile net income to cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
145,303 | 99,330 | ||||||
Deferred income taxes
|
(5,288 | ) | 66,627 | |||||
Interest, monetary and exchange variation
|
72,343 | (136,329 | ) | |||||
Net loss (income) attributable to noncontrolling interests
|
1,091 | 55,795 | ||||||
Others
|
11,464 | 12,219 | ||||||
Decrease/increase in operating assets and liabilities
|
||||||||
Trade accounts receivable, net
|
85,072 | 56,541 | ||||||
Inventories
|
(157,992 | ) | 88,423 | |||||
Advances to suppliers
|
(42,561 | ) | (33,804 | ) | ||||
Recoverable taxes
|
(11,826 | ) | 5,326 | |||||
Trade accounts payable
|
81,518 | 24,065 | ||||||
Derivative financial instruments
|
67,709 | (16,246 | ) | |||||
Taxes payable
|
(16,119 | ) | (29,270 | ) | ||||
Other assets and liabilities, net
|
76,560 | 27,669 | ||||||
Net cash provided by operating activities
|
295,340 | 337,967 | ||||||
Cash flows from investing activities:
|
||||||||
Restricted cash
|
(28,462 | ) | (14,516 | ) | ||||
Cash received from sales of permanent assets
|
- | 60,325 | ||||||
Acquisition of investment
|
(2,080 | ) | (2,050 | ) | ||||
Acquisition of property, plant and equipment
|
(333,280 | ) | (226,994 | ) | ||||
Acquisitions, net of cash acquired
|
373 | 32,045 | ||||||
Net cash used in investing activities
|
(363,449 | ) | (151,190 | ) | ||||
Cash flows from financing activities:
|
||||||||
Related parties
|
- | (62,184 | ) | |||||
Additions of long-term debt
|
356,588 | 88,593 | ||||||
Payments of long-term debt
|
(311,767 | ) | (69,222 | ) | ||||
Net cash used in financing activities
|
44,821 | (42,813 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents
|
1,001 | 23,512 | ||||||
Net increase (decrease) in cash and cash equivalents
|
(22,287 | ) | 167,476 | |||||
Cash and cash equivalents at beginning of period
|
623,675 | 508,784 | ||||||
Cash and cash equivalents at end of period
|
601,388 | 676,260 | ||||||
Supplemental cash flow information
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
47,094 | 22,063 | ||||||
Income tax
|
3,391 | 18,287 |
1.
|
Operations
|
2.
|
Presentation of the consolidated financial statements
|
a.
|
Basis of reporting for interim financial statements
|
2.
|
Presentation of the consolidated financial statements (Continued)
|
|
b.
|
Use of estimates
|
|
c.
|
New Accounting Pronouncements
|
2.
|
Presentation of the consolidated financial statements (Continued)
|
|
d.
|
Derivative financial instruments
|
3.
|
Inventories
|
June 30, 2010
|
March 31, 2010
|
|||||||
Finished goods:
|
||||||||
Sugar
|
165,911 | 52,561 | ||||||
Ethanol
|
178,626 151,562 | 31,573 149,613 | ||||||
Lubricants and fuel (Gasoline, Diesel and Ethanol)
|
||||||||
496,099 | 233,747 | |||||||
Annual maintenance cost of growing crops
|
203,896 | 243,709 | ||||||
Others
|
95,819 | 110,264 | ||||||
795,814 | 587,720 |
4.
|
Taxes payable
|
June 30,
2010
|
March 31,
2010
|
|||||||
ICMS – State VAT
|
21,059 | 27,623 | ||||||
IPI
|
8,559 | 3,582 | ||||||
INSS
|
13,328 | 13,414 | ||||||
PIS
|
2,608 | 4,564 | ||||||
COFINS
|
12,136 | 18,010 | ||||||
Tax Recovery from Brazilian Law No 11.941/09 and MP 470/09
|
367,834 | 373,650 | ||||||
Income Tax and Social Contribution
|
52,564 | 50,471 | ||||||
Others
|
12,162 | 11,694 | ||||||
490,250 | 503,008 | |||||||
Current liabilities
|
(109,548 | ) | (121,203 | ) | ||||
Long-term liabilities
|
380,702 | 381,805 |
5.
|
Long-term debt
|
Index
|
Average
annual
interest rate
|
June 30,
2010
|
March 31,
2010
|
||||||||||
Resolution No. 2471 (PESA)
|
IGP-M
|
3.9 | % | 306,930 | 297,243 | ||||||||
Senior notes due 2014
|
US Dollar
|
9.5 | % | 362,838 | 354,433 | ||||||||
Senior notes due 2017
|
US Dollar
|
7.0 | % | 412,227 | 405,258 | ||||||||
Perpetual notes
|
US Dollar
|
8.3 | % | 455,668 | 455,820 | ||||||||
BNDES
|
TJLP
|
3.6 | % | 741,719 | 520,068 | ||||||||
Credit notes
|
DI
|
2.4 | % | 169,220 | 212,660 | ||||||||
Credit notes
|
US Dollar
|
6.2 | % | 101,076 | 102,656 | ||||||||
Export Pre-payments
|
US Dollar
|
6.2 | % | 495,805 | 547,230 | ||||||||
Others
|
Various
|
Various
|
370,673 | 421,360 | |||||||||
3,416,156 | 3,316,728 | ||||||||||||
Current liability
|
(498,576 | ) | (471,061 | ) | |||||||||
Long-term debt
|
2,917,580 | 2,845,667 |
2011
|
366,651 | |||
2012
|
361,359 | |||
2013
|
422,280 | |||
2014
|
206,532 | |||
2015
|
79,539 | |||
2016
|
479,036 | |||
2017
|
95,023 | |||
2018 and thereafter
|
907,159 | |||
2,917,580 |
5.
|
Long-term debt (Continued)
|
5.
|
Long-term debt (Continued)
|
6.
|
Related parties
|
Assets
|
||||||||
June 30,
2010
|
March 31,
2010
|
|||||||
Rezende Barbosa S.A. Administração e Participações
|
48,262 | 48,889 | ||||||
Vertical UK LLP
|
18,035 | 8,403 | ||||||
Others
|
5,585 | 2,377 | ||||||
71,882 | 59,669 | |||||||
Current (*)
|
(27,690 | ) | (13,958 | ) | ||||
Nuncurrent (*)
|
44,192 | 45,711 | ||||||
Liabilities
|
||||||||
June 30,
2010
|
March 31,
2010
|
|||||||
Rezende Barbosa S.A. Administração e Participações
|
60,948 | - | ||||||
Logispot Armazéns Gerais S.A.
|
4,161 | 6,313 | ||||||
Others
|
1,543 | 1,781 | ||||||
66,652 | 8,094 | |||||||
Current (*)
|
(66,652 | ) | (8,094 | ) | ||||
Nuncurrent
|
- | - | ||||||
(*) included in other current and non-current assets or liabilities
|
6.
|
Related parties (Continued)
|
June 30,
2010
|
June 30,
2009
|
|||||||
Transactions involving assets
|
||||||||
Cash received due to the sale of finished products, services performed, and assets held, net of payments
|
(29,720 | ) | (38,781 | ) | ||||
Sale of finished products and services
|
- | 146,986 | ||||||
Purchase of finished products and services
|
- | (146,986 | ) | |||||
Sale of finished products and services in a subsidiary
|
42,676 | 35,386 | ||||||
Receivable added through acquisition of Nova América
|
- | 71,061 | ||||||
Transactions involving liabilities
|
||||||||
Payment of financial resources, net of funding
|
(4,510 | ) | (1,809 | ) | ||||
Purchase of sugar cane
|
63,449 | - | ||||||
Financial income/expenses
|
- | (30,885 | ) |
7.
|
Estimated liability for legal proceedings and labor claims and commitments
|
June 30,
2010
|
March 31,
2010
|
|||||||
Tax contingencies
|
174,837 | 173,924 | ||||||
Civil and labor contingencies
|
122,906 | 120,681 | ||||||
297,743 | 294,605 |
June 30,
2010
|
March 31,
2010
|
|||||||
Compensation with Finsocial
|
97,329 | 97,114 | ||||||
ICMS credits
|
44,105 | 33,824 | ||||||
PIS and Cofins
|
14,099 | 11,910 | ||||||
IPI – Federal VAT
|
4,686 | 4,692 | ||||||
Other
|
14,618 | 26,384 | ||||||
174,837 | 173,924 |
7.
|
Estimated liability for legal proceedings and labor claims and commitments (Continued)
|
Balance at March 31, 2010
|
294,605 | |||
Provision
|
7,494 | |||
Settlements
|
(1,004 | ) | ||
Foreign currency translation
|
(3,352 | ) | ||
Balance at June 30, 2010
|
297,743 |
June 30,
2010
|
March 31,
2010
|
|||||||
Withholding Income Tax
|
103,579 | 102,652 | ||||||
ICMS – State VAT
|
187,457 | 180,988 | ||||||
IAA - Sugar and Ethanol Institute
|
1,418 | 1,428 | ||||||
IPI - Federal Value-added tax
|
239,167 | 246,190 | ||||||
INSS
|
2,364 | 2,280 | ||||||
PIS and COFINS
|
80,567 | 80,604 | ||||||
Civil and labor
|
278,883 | 275,403 | ||||||
Other
|
72,733 | 66,134 | ||||||
966,168 | 955,679 |
8.
|
Accounts receivable from Federal Government
|
9.
|
Income taxes
|
June 30,
2010
|
June 30,
2009
|
|||||||
Income taxes benefit (expense):
|
||||||||
Current
|
(6,530 | ) | (11,240 | ) | ||||
Deferred
|
5,288 | (65,303 | ) | |||||
(1,242 | ) | (76,543 | ) |
9.
|
Income taxes (Continued)
|
June 30,
2010
|
June 30,
2009
|
|||||||
Income (loss) before income taxes and equity in income (loss) of affiliates
|
(14,038 | ) | 256,678 | |||||
Income tax benefit (expense) at statutory rate — 34%
|
4,773 | (87,270 | ) | |||||
Increase (reduction) in income taxes resulting from:
|
||||||||
Nontaxable income of the Company
|
(1,400 | ) | (971 | ) | ||||
Equity in earnings of affiliates not subject to taxation
|
188 | (582 | ) | |||||
Tax loss on tax free entities
|
(1,856 | ) | - | |||||
Nondeductible goodwill amortization
|
- | 12,206 | ||||||
Nondeductible donations and contributions
|
(817 | ) | (236 | ) | ||||
Recognized granted options
|
(97 | ) | (570 | ) | ||||
Others
|
(2,033 | ) | 880 | |||||
Income tax (expense) benefit
|
(1,242 | ) | (76,543 | ) |
Balance at March 31, 2010
|
49,013 | |||
Accrued interest on unrecognized tax benefit
|
709 | |||
Settlements
|
- | |||
Effect of foreign currency translation
|
(558 | ) | ||
Balance at June 30, 2010 (*)
|
49,164 |
10.
|
Shareholders’ equity
|
|
a.
|
Capital
|
Shareholder
|
Class A shares
and/or BDRs
|
%
|
Class B shares
|
%
|
||||||||||||
Queluz Holding Limited
|
11,111,111 | 6.37 | 66,321,766 | 68.85 | ||||||||||||
Usina Costa Pinto S.A. Açúcar e Álcool
|
- | - | 30,010,278 | 31.15 | ||||||||||||
Aguassanta Participaçơes S.A.
|
5,000,000 | 2.87 | - | - | ||||||||||||
Gávea Funds
|
33,333,333 | 19.12 | - | - | ||||||||||||
Others
|
124,910,897 | 71.64 | - | - | ||||||||||||
Total
|
174,355,341 | 100.00 | 96,332,044 | 100.00 |
11.
|
Deferred gain on sale of investments in subsidiaries
|
|
Agrícola Ponte Alta S.A. is a subsidiary whose principal assets are land used for the growing of sugarcane for Cosan S.A. On December 15, 2008, the shareholders approved a partial spin-off of the assets of Ponte Alta and created four new subsidiaries. Agricultural land was then transferred from Ponte Alta to each of the entities. On December 30, 2008, two of the entities, Nova Agrícola Ponte Alta S.A. and Terras da Ponte Alta S.A. were sold to Radar, an affiliate company accounted for by the equity method. The selling price was fair value, $123,596, which resulted in a gain of $47,080. This gain has previously been deferred since there were no lease contracts executed for the land, which was being used by Cosan S.A. for a monthly fee. During the year ended March 31, 2009 the lease contracts were executed, and the gain is being amortized to profit and loss over the 19 year average term of the leases since then.
|
12.
|
Share-based compensation
|
Options
granted on
September
22, 2005
|
Options
granted on
September
11, 2007
|
Options
granted on
August 7,
2009
|
||||||||||
Grant price - in U.S. dollars
|
3.39 | 3.39 | 3.39 | |||||||||
Expected life (in years)
|
7.5 | 7.5 |
Immediate
|
|||||||||
Interest rate
|
14.52 | % | 9.34 | % | (1 | ) | ||||||
Expected Volatility
|
34.00 | % | 46.45 | % | (1 | ) | ||||||
Expected Dividend yield
|
1.25 | % | 1.47 | % | (1 | ) | ||||||
Weighted-average fair value at grant date - in U.S. dollars
|
6.86 | 5.67 | (1 | ) |
(1)
|
The options were fully vested at the date of issuance so the fair value was the quoted market price as of the grant date.
|
13.
|
Risk management and financial instruments
|
a)
|
Risk management
|
Notional
|
Fair Value
|
|||||||||||||||
June 30,
2010
|
March 31,
2010
|
June 30,
2010
|
March 31,
2010
|
|||||||||||||
Price risk
|
||||||||||||||||
Commodity derivatives
|
||||||||||||||||
Future contracts
|
609,197 | 661,110 | 26,497 | 63,101 | ||||||||||||
Options contracts
|
22,410 | 603,357 | (1,831 | ) | (6,586 | ) | ||||||||||
Swap contracts
|
- | 56,594 | - | 607 | ||||||||||||
24,666 | 57,121 | |||||||||||||||
Exchange rate risk
|
||||||||||||||||
Exchange rate derivative
|
||||||||||||||||
Future contracts
|
317,325 | 1,180,829 | 1,537 | 264 | ||||||||||||
Forward contracts
|
685,601 | 537,422 | 27,899 | 20,527 | ||||||||||||
Options contracts
|
518,736 | 377,036 | 6,162 | 8,827 | ||||||||||||
Swap contracts
|
178,753 | 180,810 | - | - | ||||||||||||
35,598 | 29,618 | |||||||||||||||
Interest rate risk
|
||||||||||||||||
Interest derivative
|
287,977 | 291,291 | (830 | ) | (350 | ) | ||||||||||
(830 | ) | (350 | ) | |||||||||||||
Total
|
59,434 | 86,389 | ||||||||||||||
Total Assets
|
80,215 | 129,456 | ||||||||||||||
Total Liabilities
|
(20,781 | ) | (43,067 | ) |
13.
|
Risk management and financial instruments (Continued)
|
b)
|
Price risk
|
Price risk: price derivatives outstanding on June 30, 2010
|
|||||||||||||||||
Derivative
|
Purchased /
sold
|
Market
|
Contract
|
Maturity
|
Notional
|
Fair value
|
|||||||||||
Derivative financial instruments designated in the cash flow hedge accounting
|
|||||||||||||||||
Swap
|
Sold
|
OTC
|
#11 |
Sep-10
|
90,728 | 16,598 | |||||||||||
Future
|
Sold
|
NYBOT
|
#11 |
Sep-10
|
82,819 | 7,059 | |||||||||||
Future
|
Sold
|
NYBOT
|
#11 |
Feb-11
|
68,355 | 2,231 | |||||||||||
Future
|
Sold
|
NYBOT
|
#11 |
Apr-11
|
23,093 | 2,300 | |||||||||||
Future
|
Sold
|
NYBOT
|
#11 |
Jun-11
|
86,411 | 2,145 | |||||||||||
Future
|
Sold
|
NYBOT
|
#11 |
Sep-11
|
52,284 | 22 | |||||||||||
30,355 | |||||||||||||||||
13.
|
Risk management and financial instruments (Continued)
|
b)
|
Price risk (Continued)
|
Price risk: price derivatives outstanding on June 30, 2010
|
|||||||||||||||||
Derivative
|
Purchased /
sold
|
Market
|
Contract
|
Maturity
|
Notional
|
Fair value
|
|||||||||||
Derivative financial instruments not designated in the cash flow hedge accounting
|
|||||||||||||||||
Future
|
Sold
|
LIFFE
|
White Sugar
|
Jul-10
|
14,385 | (1,558 | ) | ||||||||||
Future
|
Sold
|
LIFFE
|
White Sugar
|
Sep-10
|
10,862 | 655 | |||||||||||
Future
|
Sold
|
NYBOT
|
#11 |
Sep-10
|
89,377 | 10,212 | |||||||||||
9,309 | |||||||||||||||||
Future
|
Purchased
|
NYBOT
|
#11
|
Sep-10
|
(4,225 | ) | 74 | ||||||||||
Future
|
Purchased
|
NYBOT
|
#11 |
Feb-11
|
(80,496 | ) | (13,148 | ) | |||||||||
Future
|
Purchased
|
NYBOT
|
#11 |
Apr-11
|
(1,930 | ) | (79 | ) | |||||||||
Future
|
Purchased
|
NYBOT
|
#11 |
Jun-11
|
(1,871 | ) | (88 | ) | |||||||||
(13,241 | ) | ||||||||||||||||
Future
|
Purchased
|
NYMEX
|
HO
|
Jul-10
|
(2,361 | ) | 74 | ||||||||||
74 | |||||||||||||||||
Call
|
Purchased
|
OTC
|
#11 |
Sep-10
|
(2,328 | ) | 77 | ||||||||||
Call
|
Purchased
|
OTC
|
#11 |
Sep-10
|
(2,460 | ) | 77 | ||||||||||
154 | |||||||||||||||||
Call
|
Sold
|
NYBOT/OTC
|
#11 |
Sep-10
|
4,283 | (627 | ) | ||||||||||
Call
|
Sold
|
NYBOT/OTC
|
#11 |
Sep-10
|
3,734 | (440 | ) | ||||||||||
Call
|
Sold
|
NYBOT/OTC
|
#11 |
Feb-11
|
3,022 | (732 | ) | ||||||||||
Call
|
Sold
|
NYBOT
|
#11 |
Feb-11
|
451 | (138 | ) | ||||||||||
Call
|
Sold
|
NYBOT
|
#11 |
Feb-11
|
160 | (49 | ) | ||||||||||
(1,985 | ) | ||||||||||||||||
Put
|
Purchased
|
NYBOT/OTC
|
#11 |
Sep-10
|
3,759 | 2,823 | |||||||||||
Put
|
Purchased
|
NYBOT/OTC
|
#11 |
Sep-10
|
1,312 | 1,055 | |||||||||||
3,878 | |||||||||||||||||
Put
|
Sold
|
NYBOT/OTC
|
#11 |
Sep-10
|
(819 | ) | (2,823 | ) | |||||||||
Put
|
Sold
|
NYBOT/OTC
|
#11 |
Sep-10
|
(82 | ) | (1,055 | ) | |||||||||
(3,878 | ) | ||||||||||||||||
Total Commodities
|
24,666 |
13.
|
Risk management and financial instruments (Continued)
|
|
c)
|
Foreign exchange risk
|
Foreign exchange risk: Exchange rate derivatives outstanding on June 30, 2010
|
|||||||||||||||||
Derivative
|
Purchased/
sold
|
Market
|
Contract
|
Maturity
|
Notional |
Fair value
|
|||||||||||
Derivative financial instruments designated in the cash flow hedge accounting
|
|||||||||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Jul-10
|
53,733 | 3,469 | |||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Aug-10
|
79,788 | 3,791 | |||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Sep-10
|
5,640 | 527 | |||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Sep-10
|
25,636 | 2,114 | |||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Oct-10
|
81,851 | 5,843 | |||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Dec-10
|
53,081 | 1,275 | |||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Jan-11
|
49,659 | 2,504 | |||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
May-11
|
78,424 | 2,269 | |||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Jul-11
|
55,121 | 407 | |||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Aug-11
|
57,591 | 2,222 | |||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Oct-11
|
145,079 | 3,479 | |||||||||||
27,899
|
|||||||||||||||||
Derivative financial instruments not designated in the cash flow hedge accounting
|
|||||||||||||||||
Future
|
Sold
|
BMFBovespa
|
Commercial U.S.
dollar rate
|
Aug-10
|
152,879 | 573 | |||||||||||
Future
|
Sold
|
BMFBovespa
|
Commercial U.S.
dollar rate
|
Dec-10
|
71,708 | 441 | |||||||||||
Future
|
Sold
|
BMFBovespa
|
Commercial U.S.
dollar rate
|
Jul-11
|
189,260 | 1,177 | |||||||||||
Future
|
Sold
|
BMFBovespa
|
Commercial U.S.
dollar rate
|
Aug-11
|
43,586 | 270 | |||||||||||
Future
|
Sold
|
BMFBovespa
|
Euro
|
Jul-10
|
8,445 | (4 | ) | ||||||||||
2,457 | |||||||||||||||||
Future
|
Purchased
|
BMFBovespa
|
Commercial U.S.
dollar rate
|
Dec-10
|
(51,220 | ) | (315 | ) | |||||||||
Future
|
Purchased
|
BMFBovespa
|
Commercial U.S.
dollar rate
|
Jul-11
|
(97,334 | ) | (605 | ) | |||||||||
(921 | ) | ||||||||||||||||
Put Onshore
|
Purchased
|
BMFBovespa
|
Commercial U.S.
dollar rate
|
Oct-10
|
485,706 | 5,393 | |||||||||||
Put Offshore
|
Purchased
|
OTC
|
Commercial U.S.
dollar rate
|
Feb-11
|
23,748 | 424 | |||||||||||
Put Offshore
|
Purchased
|
OTC
|
Commercial U.S.
dollar rate
|
Feb-11
|
9,281 | 346 | |||||||||||
6,163
|
|||||||||||||||||
Total Exchange rate derivative
|
35,598
|
13.
|
Risk management and financial instruments (Continued)
|
June 30, 2010
|
March 31, 2010
|
|||||||
Amounts pending foreign exchange closing
|
24,906 | 71,732 | ||||||
Overnight
|
28,254 | 28,338 | ||||||
Trade notes receivable - foreign
|
70,702 | 83,467 | ||||||
Senior Notes due in 2014
|
(362,838 | ) | (354,433 | ) | ||||
Senior Notes due in 2017
|
(411,589 | ) | (404,589 | ) | ||||
Perpetual bonds
|
(455,303 | ) | (455,304 | ) | ||||
Foreign currency-denominated loans
|
(203,316 | ) | (269,066 | ) | ||||
Export pre-payments
|
(499,090 | ) | (550,552 | ) | ||||
Restricted cash
|
28,462 | 25,251 | ||||||
Exchange exposure
|
(1,779,812 | ) | (1,825,156 | ) |
d)
|
hedge accounting effects
|
13.
|
Risk management and financial instruments (Continued)
|
Expected period to affect P&L
|
|||||||||||||||||
Derivative
|
Market
|
Risk
|
2010/2011
|
2011/2012
|
Total
|
||||||||||||
Future
|
OTC / NYBOT
|
#11 | 3,695 | 3,302 | 6,997 | ||||||||||||
NDF
|
OTC/Cetip
|
USD
|
3,246 | 6,613 | 9,859 | ||||||||||||
(-) Deferred income taxes
|
(2,360 | ) | (3,371 | ) | (5,731 | ) | |||||||||||
Total
|
4,581 | 6,544 | 11,125 |
Cash flow hedges
|
||||
Balance at March 31, 2010
|
- | |||
Gain/(losses) of cash flow hedges for the period
|
||||
Commodities future and swap contracts
|
6,448 | |||
Currency forward contracts
|
9,860 | |||
Reclassification adjustments for losses included in the income statement (net sales)
|
548 | |||
Tax effect on gain/(losses) of cash flow hedges for the period – 34%
|
(5,731 | ) | ||
Balance at June 30, 2010
|
11,125 |
|
e)
|
Interest rate risk
|
Interest rate risk: outstanding interest rate swap derivatives on June 30, 2010
|
|||||||||||||||||||
Derivative
|
Purchased/
sold
|
Market
|
Contract
|
Number of
contracts
|
Average price
|
Notional
|
Fair
Value
|
||||||||||||
Swap
|
Purchased
|
OCT/Cetip
|
Fix/Libor 3 month
|
1 |
1,199% / Libor 3 month
|
300,000 | (830 | ) |
13.
|
Risk management and financial instruments (Continued)
|
|
f)
|
Credit risk
|
13.
|
Risk management and financial instruments (Continued)
|
|
g)
|
Debt acceleration risk
|
14.
|
Fair value measurements
|
14.
|
Fair value measurements (Continued)
|
Level 1
|
Level 2
|
Total
|
||||||||||
Assets
|
||||||||||||
Derivatives
|
33,427 | 46,788 | 80,215 | |||||||||
Liabilities
|
||||||||||||
Derivatives
|
(4,643 | ) | (16,138 | ) | (20,781 | ) |
15.
|
Segment information
|
a.
|
Segment information
|
15.
|
Segment information (Continued)
|
a.
|
Segment information (continued)
|
15.
|
Segment information (Continued)
|
a.
|
Segment information (continued)
|
June 30, 2010
|
||||||||||||||||||||
S&E
|
CCL
|
RUMO
|
Adjustment/
elimination
|
Consolidated
|
||||||||||||||||
Brazilian GAAP
|
US GAAP
|
|||||||||||||||||||
Balance Sheet:
|
||||||||||||||||||||
Property, plant & equiptment (PP&E)
|
2,818,027 | 191,603 | 229,915 | 965,741 | 4,205,286 | |||||||||||||||
Intangible assets
|
- | - | - | 582,247 | 582,247 | |||||||||||||||
Loans, net of cash equivalents
|
(2,549,978 | ) | (223,618 | ) | (82,155 | ) | 40,982 | (2,814,768 | ) | |||||||||||
Others assets and net of other liabilities
|
1,618,452 | 1,76,879 | 16,518 | (1,045,810 | ) | 1,666,039 | ||||||||||||||
Total net Assets
|
1,886,501 | 1,044,864 | 164,278 | 543,161 | 3,638,804 | |||||||||||||||
Income statements (3 months)
|
||||||||||||||||||||
Net Sales
|
701,798 | 1,495,664 | 33,671 | 2,707 | 2,233,840 | |||||||||||||||
Gross profit
|
149,381 | 114,830 | 18,368 | (43,201 | ) | 239,378 | ||||||||||||||
Selling, general and administrative expenses (SG&A)
|
(108,556 | ) | (74,463 | ) | (4,482 | ) | (3,509 | ) | (191,010 | ) | ||||||||||
Operating income
|
40,497 | 43,239 | 11,736 | (45,409 | ) | 50,063 | ||||||||||||||
Other income (expenses)
|
(2,782 | ) | (2,499 | ) | 4,208 | 939 | (133 | ) | ||||||||||||
Other selected data:
|
||||||||||||||||||||
Additions to PP&E (Capex)
|
253,790 | 8,243 | 68,794 | 335,480 | ||||||||||||||||
Depreciation and amortization
|
134,134 | 9,064 | 2,105 | 145,303 | ||||||||||||||||
March 31, 2010
|
||||||||||||||||||||
S&E
|
CCL
|
RUMO
|
Adjustment/
elimination
|
Consolidated
|
||||||||||||||||
Brazilian GAAP
|
US GAAP
|
|||||||||||||||||||
Balance Sheet:
|
||||||||||||||||||||
Property, plant & equiptment (PP&E)
|
1,330,26 | 128,712 | 29,414 | 771,035 | 2,259,427 | |||||||||||||||
Intangible assets
|
423,571 | 966 | - | 707,398 | 1,131,935 | |||||||||||||||
Loans, net of cash equivalents
|
(1,122,560 | ) | 39,663 | 4,811 | (445,889 | ) | (1,523,975 | ) | ||||||||||||
Others assets and net of other liabilities
|
2,943,642 | (78,223 | ) | (1,469 | ) | (2,590,572 | ) | 273,378 | ||||||||||||
Total net Assets
|
3,574,919 | 91,118 | 32,756 | (1,558,028 | ) | 2,140,765 | ||||||||||||||
June 30,2009
|
||||||||||||||||||||
S&E
|
CCL
|
RUMO
|
Adjustment/
elimination
|
Consolidated
|
||||||||||||||||
Brazilian GAAP
|
US GAAP
|
|||||||||||||||||||
Income Statements (3 months)
|
||||||||||||||||||||
Net Sales
|
562,937 | 1,137,572 | 18,928 | 833 | 1,720,270 | |||||||||||||||
Gross profit
|
80,918 | 90,152 | (6,213 | ) | (18,443 | ) | 158,840 | |||||||||||||
Selling, general and administrative expenses (SG&A)
|
(89,308 | ) | (53,371 | ) | (1,660 | ) | 34,364 | (109,975 | ) | |||||||||||
Operating income
|
(8,147 | ) | 36,780 | 4,554 | 16,725 | 49,912 | ||||||||||||||
Other income (expenses)
|
(48,725 | ) | 45,392 | (12,241 | ) | 7,647 | (7,927 | ) | ||||||||||||
Other selected data:
|
||||||||||||||||||||
Additions to PP&E (Capex)
|
220,583 | 6,049 | 363 | 226,994 | ||||||||||||||||
Depreciation and amortization
|
93,258 | 4,311 | 1,761 | 99,330 |
15.
|
Segment information (Continued)
|
|
b.
|
Detailed net sales per segment
|
June 30,
2010
|
June 30,
2009
|
|||||||
S&E (Brazilian GAAP)
|
||||||||
Sugar
|
462,631 | 314,145 | ||||||
Ethanol
|
188,786 | 220,461 | ||||||
Cogeneration
|
29,741 | 14,443 | ||||||
Other
|
20,640 | 14,088 | ||||||
701,798 | 562,937 | |||||||
CCL (Brazilian GAAP)
|
||||||||
Fuels
|
1,363,004 | 1,055,989 | ||||||
Lubricants
|
109,766 | 72,504 | ||||||
Other
|
22,894 | 9,079 | ||||||
1,495,664 | 1,137,572 | |||||||
Rumo (Brazilian GAAP)
|
||||||||
Port lifting
|
28,706 | 18,407 | ||||||
Transports
|
4,965 | 521 | ||||||
33,671 | 18,928 | |||||||
Adjustments / eliminations
|
2,707 | 833 | ||||||
Total (US GAAP)
|
2,233,840 | 1,720,270 |
c.
|
Net sales by region
|
June 30,
2010
|
June 30,
2009
|
|||||||
Sales by geographic area
|
||||||||
Brazil
|
69.27 | % | 54,35 | % | ||||
Europe
|
26.82 | % | 35,34 | % | ||||
Middle east and Asia
|
2.12 | % | 1,95 | % | ||||
North America
|
0.37 | % | 6,17 | % | ||||
Latin American (Except Brazil)
|
0.07 | % | 2,19 | % | ||||
Others
|
1.35 | % | - | |||||
Total
|
100.00 | % | 100.00 | % |
15.
|
Segment information (Continued)
|
d.
|
Concentration of clients
|
16.
|
Subsequent events
|
16.
|
Subsequent events (Continued)
|
Report of independent registered public accounting firm
|
1
|
Condensed consolidated balance sheets
|
2
|
Condensed consolidated statements of operations
|
4
|
Condensed consolidated statements of shareholders’ equity and comprehensive income (loss)
|
5
|
Condensed consolidated statements of cash flows
|
6
|
Notes to the condensed consolidated financial statements
|
7
|
(Unaudited)
June 30,
|
March 31,
|
|||||||
2010
|
2010
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
585,575 | 605,483 | ||||||
Restricted cash
|
28,462 | 25,251 | ||||||
Derivative financial instruments
|
80,215 | 129,456 | ||||||
Trade accounts receivable, less allowances: June 30, 2010 – $31,206; March 31, 2010 – $32,144
|
343,673 | 430,328 | ||||||
Inventories
|
795,814 | 587,720 | ||||||
Advances to suppliers
|
179,557 | 132,258 | ||||||
Recoverable taxes
|
197,266 | 184,090 | ||||||
Other current assets
|
65,626 | 48,303 | ||||||
2,276,188 | 2,142,889 | |||||||
|
||||||||
Property, plant, and equipment, net
|
4,059,075 | 3,997,815 | ||||||
Goodwill
|
1,289,354 | 1,289,625 | ||||||
Intangible assets, net
|
580,590 | 600,573 | ||||||
Accounts receivable from federal government
|
186,663 | 187,385 | ||||||
Judicial deposits
|
93,739 | 94,083 | ||||||
Other non-current assets
|
450,545 | 423,447 | ||||||
6,659,966 | 6,592,928 | |||||||
Total assets
|
8,936,154 | 8,735,817 |
(Unaudited)
June 30,
|
March 31,
|
|||||||
2010
|
2010
|
|||||||
Liabilities and shareholders’ equity
|
||||||||
Current liabilities:
|
||||||||
Trade accounts payable
|
397,588 | 319,707 | ||||||
Taxes payable
|
109,548 | 121,203 | ||||||
Salaries payable
|
122,058 | 79,497 | ||||||
Current portion of long-term debt
|
473,176 | 445,593 | ||||||
Derivative financial instruments
|
20,781 | 43,067 | ||||||
Dividends payable
|
64,707 | 65,451 | ||||||
Other current liabilities
|
173,522 | 111,971 | ||||||
1,361,380 | 1,186,489 | |||||||
Long-term liabilities:
|
||||||||
Long-term debt
|
2,915,024 | 2,842,953 | ||||||
Estimated liability for legal proceedings and labor claims
|
297,743 | 294,605 | ||||||
Taxes payable
|
380,702 | 381,805 | ||||||
Deferred income taxes
|
403,241 | 408,832 | ||||||
Other long-term liabilities
|
151,794 | 154,728 | ||||||
4,148,504 | 4,082,923 | |||||||
Shareholders’ equity
|
||||||||
Cosan shareholders’ equity:
|
||||||||
Common stock, no par value. Authorized 406,560,317 shares; issued and outstanding 406,560,317 as of June 30, 2010 and as of March 31, 2010
|
2,420,018 | 2,420,018 | ||||||
Treasury stock
|
(1,979 | ) | (1,979 | ) | ||||
Additional paid-in capital
|
390,884 | 390,600 | ||||||
Accumulated other comprehensive income
|
314,686 | 343,136 | ||||||
Retained earnings
|
268,688 | 281,238 | ||||||
Equity attributable to shareholders of Cosan
|
3,392,297 | 3,433,013 | ||||||
Equity attributable to noncontrolling interests
|
33,973 | 33,392 | ||||||
Total shareholders’ equity
|
3,426,270 | 3,466,405 | ||||||
Total liabilities and shareholders' equity
|
8,936,154 | 8,735,817 |
June 30,
|
June 30,
|
|||||||
2010
|
2009
|
|||||||
Net sales
|
2,233,840 | 1,720,270 | ||||||
Cost of goods sold
|
(1,993,162 | ) | (1,560,626 | ) | ||||
Gross profit
|
240,678 | 159,644 | ||||||
Selling expenses
|
(122,709 | ) | (102,072 | ) | ||||
General and administrative expenses
|
(67,906 | ) | (7,660 | ) | ||||
Operating income
|
50,063 | 49,912 | ||||||
Other income (expenses):
|
||||||||
Financial income
|
48,989 | 151,409 | ||||||
Financial expenses
|
(108,838 | ) | 66,133 | |||||
Other
|
(133 | ) | (7,921 | ) | ||||
(Loss) income before income taxes and equity in income (loss) of affiliates
|
(9,919 | ) | 259,533 | |||||
Income taxes expense
|
(1,242 | ) | (76,543 | ) | ||||
(Loss) income before equity in income (loss) of affiliates
|
(11,161 | ) | 182,990 | |||||
Equity income (loss) of affiliates
|
553 | (1,713 | ) | |||||
Net (loss) income
|
(10,608 | ) | 181,277 | |||||
Less net (loss) income attributable to noncontrolling interests
|
(1,942 | ) | 3,737 | |||||
Net (loss) income attributable to Cosan
|
(12,550 | ) | 185,014 | |||||
Per-share amounts attributable to Cosan
|
||||||||
Net (loss) income
|
||||||||
Basic
|
(0.03 | ) | 0.58 | |||||
Diluted
|
* | 0.57 | ||||||
Weighted number of shares outstanding
|
||||||||
Basic
|
406,560,317 | 313,845,887 | ||||||
Diluted **
|
* | 315,396,031 |
Accumulated
|
||||||||||||||||||||||||||||||||||||
Common stock
|
Treasury stock
|
Additional
|
other
|
Non
|
Total
|
|||||||||||||||||||||||||||||||
paid-in
|
Retained
|
comprehensive
|
controlling
|
shareholders’
|
||||||||||||||||||||||||||||||||
shares
|
amount
|
shares
|
amount
|
capital
|
earnings
|
income
|
Interest
|
equity
|
||||||||||||||||||||||||||||
Balances at March 31, 2010
|
406,560,317 | 2,420,018 | 343,139 | (1,979 | ) | 390,600 | 281,238 | 343,136 | 33,392 | 3,466,405 | ||||||||||||||||||||||||||
Share based compensation
|
- | - | - | - | 284 | - | - | - | 284 | |||||||||||||||||||||||||||
Net (loss) income
|
- | - | - | - | - | (12,550 | ) | - | 1,942 | (10,608 | ) | |||||||||||||||||||||||||
Effective portion of gains/losses on derivative instrument that qualifies as a cash flow hedge
|
- | - | - | - | - | - | 11,125 | - | 11,125 | |||||||||||||||||||||||||||
Pension Plan
|
- | - | - | - | - | - | (515 | ) | - | (515 | ) | |||||||||||||||||||||||||
Currency translation adjustment
|
- | - | - | - | - | - | (39,060 | ) | (1,361 | ) | (40,421 | ) | ||||||||||||||||||||||||
Total comprehensive loss
|
(40,134 | ) | ||||||||||||||||||||||||||||||||||
Balances at June 30, 2010
|
406,560,317 | 2,420,018 | 343,139 | (1,979 | ) | 390,884 | 268,688 | 314,686 | 33,973 | 3,426,270 |
June 30,
|
June 30,
|
|||||||
2010
|
2009
|
|||||||
Cash flow from operating activities
|
||||||||
Net (loss) income for the year attributable to Cosan
|
(12,550 | ) | 185,014 | |||||
Adjustments to reconcile net income to cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
144,484 | 100,134 | ||||||
Deferred income taxes
|
(5,288 | ) | 65,989 | |||||
Interest, monetary and exchange variation
|
72,054 | (136,300 | ) | |||||
Others
|
27,339 | (31,095 | ) | |||||
Decrease/increase in operating assets and liabilities
|
||||||||
Trade accounts receivable, net
|
85,072 | 56,541 | ||||||
Inventories
|
(157,992 | ) | 88,423 | |||||
Advances to suppliers
|
(42,561 | ) | (38,804 | ) | ||||
Recoverable taxes
|
(11,826 | ) | 5,326 | |||||
Trade accounts payable
|
81,518 | 24,065 | ||||||
Derivative financial instruments
|
67,709 | (16,246 | ) | |||||
Taxes payable
|
(16,119 | ) | (29,270 | ) | ||||
Other assets and liabilities, net
|
76,258 | 24,784 | ||||||
Net cash provided by operating activities
|
308,098 | 298,561 | ||||||
Cash flows from investing activities:
|
||||||||
Restricted cash
|
(28,462 | ) | (14,516 | ) | ||||
Cash received from sales of noncurrent assets
|
- | 60,325 | ||||||
Acquisition of investment
|
(2,080 | ) | (2,050 | ) | ||||
Acquisition of property, plant and equipment
|
(333,280 | ) | (226,994 | ) | ||||
Acquisitions, net of cash acquired
|
372 | 32,045 | ||||||
Net cash used in investing activities
|
(363,450 | ) | (151,190 | ) | ||||
Cash flows from financing activities:
|
||||||||
Related parties
|
- | (62,184 | ) | |||||
Additions of long-term debt
|
356,588 | 88,593 | ||||||
Payments of long-term debt
|
(311,767 | ) | (65,510 | ) | ||||
Net cash provided by (used in) financing activities
|
44,821 | (39,101 | ) | |||||
Effect of exchange rate changes on cash and
|
||||||||
cash equivalents
|
(9,379 | ) | 59,048 | |||||
Net increase (decrease) in cash and cash equivalents
|
(19,908 | ) | 167,318 | |||||
Cash and cash equivalents at beginning of period
|
605,483 | 310,710 | ||||||
Cash and cash equivalents at end of period
|
585,575 | 478,028 | ||||||
Supplemental cash flow information
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
47,094 | 22,063 | ||||||
Income taxes
|
3,391 | 18,287 |
1.
|
Operations
|
2.
|
Presentation of the consolidated financial statements
|
a.
|
Basis of reporting for interim financial statements
|
b.
|
Use of estimates
|
2.
|
Presentation of the consolidated financial statements (Continued)
|
c.
|
New Accounting Pronouncements
|
d.
|
Derivative financial instruments
|
3.
|
Inventories
|
June 30, 2010
|
March 31, 2010
|
|||||||
Finished goods:
|
||||||||
Sugar
|
165,911 | 52,561 | ||||||
Ethanol
|
178,626 151,562 | 31,573 149,613 | ||||||
Lubricants and fuel (Gasoline, Diesel and Ethanol)
|
||||||||
496,099 | 233,747 | |||||||
Annual maintenance cost of growing crops
|
203,896 | 243,709 | ||||||
Others
|
95,819 | 110,264 | ||||||
795,814 | 587,720 |
4.
|
Taxes payable
|
June 30,
2010
|
March 31,
2010
|
|||||||
ICMS – State VAT
|
21,059 | 27,623 | ||||||
IP
|
8,559 | 3,582 | ||||||
INSS
|
13,328 | 13,414 | ||||||
PIS
|
2,608 | 4,564 | ||||||
COFINS
|
12,136 | 18,010 | ||||||
Tax Recovery from Brazilian Law No 11.941/09 and MP 470/09
|
367,834 | 373,650 | ||||||
Income Tax and Social Contribution
|
52,564 | 50,471 | ||||||
Others
|
12,162 | 11,694 | ||||||
490,250 | 503,008 | |||||||
Current liabilities
|
(109,548 | ) | (121,203 | ) | ||||
Long-term liabilities
|
380,702 | 381,805 |
5.
|
Long-term debt
|
Index
|
Average
annual
interest rate
|
June 30,
2010
|
March 31,
2010
|
||||||||||
Resolution No. 2471 (PESA)
|
IGP-M
|
3.9% | 305,050 | 295,291 | |||||||||
Senior notes due 2014
|
US Dollar
|
9.5% | 362,838 | 354,433 | |||||||||
Senior notes due 2017
|
US Dollar
|
7.0% | 411,589 | 404,589 | |||||||||
Perpetual notes |
US Dollar
|
8.3% | 455,304 | 455,304 | |||||||||
BNDES |
TJLP
|
3.6% | 741,719 | 520,068 | |||||||||
Credit notes |
DI
|
2.4% | 169,220 | 212,660 | |||||||||
Credit notes |
US Dollar
|
6.2% | 101,076 | 102,656 | |||||||||
Export Pre-payments |
US Dollar
|
6.2% | 495,805 | 547,230 | |||||||||
Others |
Various
|
Various
|
345,599 | 396,315 | |||||||||
3,388,200 | 3,288,546 | ||||||||||||
Current portion | (473,176 | ) | (445,593 | ) | |||||||||
Long-term debt | 2,915,024 | 2,842,953 |
2011
|
366,293 | |||
2012
|
360,990 | |||
2013
|
421,913 | |||
2014
|
206,167 | |||
2015
|
79,188 | |||
2016
|
478,703 | |||
2017
|
94,782 | |||
2018 and thereafter
|
906,988 | |||
2,915,024 |
5.
|
Long-term debt (Continued)
|
5.
|
Long-term debt (Continued)
|
6.
|
Related parties
|
Assets
|
||||||||
June 30,
2010
|
March 31,
2010
|
|||||||
Rezende Barbosa S.A. Administração e Participações
|
48,262 | 48,889 | ||||||
Vertical UK LLP
|
18,035 | 8,403 | ||||||
Others
|
5,585 | 2,377 | ||||||
71,882 | 59,669 | |||||||
Current (*)
|
(27,690 | ) | (13,958 | ) | ||||
Nuncurrent (*)
|
44,192 | 45,711 | ||||||
Liabilities
|
||||||||
June 30,
2010
|
March 31,
2010
|
|||||||
Rezende Barbosa S.A. Administração e Participações
|
60,948 | - | ||||||
Logispot Armazéns Gerais S.A.
|
4,161 | 6,313 | ||||||
Others
|
1,543 | 1,781 | ||||||
66,652 | 8,094 | |||||||
Current (*)
|
(66,652 | ) | (8,094 | ) | ||||
Nuncurrent
|
- | - | ||||||
(*) included in other current and non-current assets or liabilities
|
||||||||
6.
|
Related parties (Continued)
|
June 30,
2010
|
June 30,
2009
|
|||||||
Transactions involving assets
|
||||||||
Cash received due to the sale of finished products, services performed, and assets held, net of payments
|
(29,720 | ) | (38,781 | ) | ||||
Sale of finished products and services
|
- | 146,986 | ||||||
Purchase of finished products and services
|
- | (146,986 | ) | |||||
Sale of finished products and services in a subsidiary
|
42,676 | 35,386 | ||||||
Receivables added through acquisition of Nova América
|
- | 71,061 | ||||||
Transactions involving liabilities
|
||||||||
Payment of financial resources, net of funding
|
(4,510 | ) | (1,809 | ) | ||||
Purchase of sugar cane
|
63,449 | - | ||||||
Financial income/expenses
|
- | (30,885 | ) | |||||
7.
|
Estimated liability for legal proceedings and labor claims and commitments
|
June 30,
2010
|
March 31,
2010
|
|||||||
Tax contingencies
|
174,837 | 173,924 | ||||||
Civil and labor contingencies
|
122,906 | 120,681 | ||||||
297,743 | 294,605 |
June 30,
2010
|
March 31,
2010
|
|||||||
Compensation with Finsocial
|
97,329 | 97,114 | ||||||
ICMS credits
|
44,105 | 33,824 | ||||||
PIS and Cofins
|
14,099 | 11,910 | ||||||
IPI – Federal VAT
|
4,686 | 4,692 | ||||||
Other
|
14,618 | 26,384 | ||||||
174,837 | 173,924 |
7.
|
Estimated liability for legal proceedings and labor claims and commitments (Continued)
|
Balance at March 31, 2010
|
294,605 | |||
Provision
|
7,494 | |||
Settlements
|
(1,004 | ) | ||
Foreign currency translation
|
(3,352 | ) | ||
Balance at June 30, 2010
|
297,743 |
June 30,
2010
|
March 31,
2010
|
|||||||
Withholding Income Tax
|
103,579 | 102,652 | ||||||
ICMS – State VAT
|
187,457 | 180,988 | ||||||
IAA - Sugar and Ethanol Institute
|
1,418 | 1,428 | ||||||
IPI - Federal Value-added tax
|
239,167 | 246,190 | ||||||
INSS
|
2,364 | 2,280 | ||||||
PIS and COFINS
|
80,567 | 80,604 | ||||||
Civil and labor
|
278,883 | 275,403 | ||||||
Other
|
72,733 | 66,134 | ||||||
966,168 | 955,679 |
8.
|
Accounts receivable from Federal Government
|
9.
|
Income taxes
|
June 30,
2010
|
June 30,
2009
|
|||||||
Income taxes benefit (expense):
|
||||||||
Current
|
(6,530 | ) | (11,240 | ) | ||||
Deferred
|
5,288 | (65,303 | ) | |||||
(1,242 | ) | (76,543 | ) |
9.
|
Income taxes (Continued)
|
June 30,
2010
|
June 30,
2009
|
|||||||
Income (loss) before income taxes and equity in income (loss) of affiliates
|
(9,919 | ) | 259,533 | |||||
Income tax benefit (expense) at statutory rate — 34%
|
3,373 | (88,241 | ) | |||||
Increase (reduction) in income taxes resulting from:
|
||||||||
Equity in earnings of affiliates not subject to taxation
|
188 | (582 | ) | |||||
Tax loss on tax free entities
|
(1,856 | ) | - | |||||
Nondeductible goodwill amortization
|
- | 12,206 | ||||||
Nondeductible donations and contributions
|
(817 | ) | (236 | ) | ||||
Recognized granted options
|
(97 | ) | (570 | ) | ||||
Others
|
(2,033 | ) | 880 | |||||
Income tax (expense) benefit
|
(1,242 | ) | (76,543 | ) |
Balance at March 31, 2010
|
49,013 | |||
Accrued interest on unrecognized tax benefit
|
709 | |||
Settlements
|
- | |||
Effect of foreign currency translation
|
(558 | ) | ||
Balance at June 30, 2010 (*)
|
49,164 |
10.
|
Shareholders’ equity
|
11.
|
Deferred gain on sale of investments in subsidiaries
|
12.
|
Share-based compensation
|
Options
granted on
September 22,
2005
|
Options
granted on
September
11, 2007
|
Options
granted on
August 7, 2009
|
||||||||||
Grant price - in U.S. dollars
|
3.39 | 3.39 | 3.39 | |||||||||
Expected life (in years)
|
7.5 | 7.5 |
Immediate
|
|||||||||
Interest rate
|
14.52 | % | 9.34 | % | (1 | ) | ||||||
Expected Volatility
|
34.00 | % | 46.45 | % | (1 | ) | ||||||
Expected Dividend yield
|
1.25 | % | 1.47 | % | (1 | ) | ||||||
Weighted-average fair value at grant date - in U.S. dollars
|
6.86 | 5.67 | (1 | ) |
(1)
|
The options were fully vested at the date of issuance so the fair value was the quoted market price as of the grant date.
|
13.
|
Risk management and financial instruments
|
a)
|
Risk management
|
Notional
|
Fair Value
|
|||||||||||||||
June 30,
2010
|
March 31,
2010
|
June 30,
2010
|
March 31,
2010
|
|||||||||||||
Price risk
|
||||||||||||||||
Commodity derivatives
|
||||||||||||||||
Future contracts
|
609,197 | 661,110 | 26,497 | 63,101 | ||||||||||||
Options contracts
|
22,410 | 603,357 | (1,831 | ) | (6,586 | ) | ||||||||||
Swap contracts
|
- | 56,594 | - | 607 | ||||||||||||
24,666 | 57,121 | |||||||||||||||
Exchange rate risk
|
||||||||||||||||
Exchange rate derivative
|
||||||||||||||||
Future contracts
|
317,325 | 1,180,829 | 1,537 | 264 | ||||||||||||
Forward contracts
|
685,601 | 537,422 | 27,899 | 20,527 | ||||||||||||
Options contracts
|
518,736 | 377,036 | 6,162 | 8,827 | ||||||||||||
Swap contracts
|
178,753 | 180,810 | - | - | ||||||||||||
35,598 | 29,618 | |||||||||||||||
Interest rate risk
|
||||||||||||||||
Interest derivative
|
287,977 | 291,291 | (830 | ) | (350 | ) | ||||||||||
(830 | ) | (350 | ) | |||||||||||||
TOTAL
|
59,434 | 86,389 | ||||||||||||||
Total Assets
|
80,215 | 129,456 | ||||||||||||||
Total Liabilities
|
(20,781 | ) | (43,067 | ) |
13.
|
Risk management and financial instruments (Continued)
|
b)
|
Price risk
|
Price risk: price derivatives outstanding on June 30, 2010
|
|||||||||||||||||
Derivative
|
Purchased /
sold
|
Market
|
Contract
|
Maturity
|
Notional
|
Fair
value
|
|||||||||||
Derivative financial instruments designated in the cash flow hedge accounting
|
|||||||||||||||||
Swap
|
Sold
|
OTC
|
#11 |
Sep-10
|
90,728 | 16,598 | |||||||||||
Future
|
Sold
|
NYBOT
|
#11 |
Sep-10
|
82,819 | 7,059 | |||||||||||
Future
|
Sold
|
NYBOT
|
#11 |
Feb-11
|
68,355 | 2,231 | |||||||||||
Future
|
Sold
|
NYBOT
|
#11 |
Apr-11
|
23,093 | 2,300 | |||||||||||
Future
|
Sold
|
NYBOT
|
#11 |
Jun-11
|
86,411 | 2,145 | |||||||||||
Future
|
Sold
|
NYBOT
|
#11 |
Sep-11
|
52,284 | 22 | |||||||||||
30,355 | |||||||||||||||||
Derivative financial instruments not designated in the cash flow hedge accounting
|
|||||||||||||||||
Future
|
Sold
|
LIFFE
|
White Sugar
|
Jul-10
|
14,385 | (1,558 | ) | ||||||||||
Future
|
Sold
|
LIFFE
|
White Sugar
|
Sep-10
|
10,862 | 655 | |||||||||||
Future
|
Sold
|
NYBOT
|
#11 |
Sep-10
|
89,377 | 10,212 | |||||||||||
9,309 | |||||||||||||||||
Future
|
Purchased
|
NYBOT
|
#11 |
Sep-10
|
(4,225 | ) | 74 | ||||||||||
Future
|
Purchased
|
NYBOT
|
#11 |
Feb-11
|
(80,496 | ) | (13,148 | ) | |||||||||
Future
|
Purchased
|
NYBOT
|
#11 |
Apr-11
|
(1,930 | ) | (79 | ) | |||||||||
Future
|
Purchased
|
NYBOT
|
#11 |
Jun-11
|
(1,871 | ) | (88 | ) | |||||||||
(13,241 | ) | ||||||||||||||||
Future
|
Purchased
|
NYMEX
|
HO
|
Jul-10
|
(2,361 | ) | 74 | ||||||||||
74 | |||||||||||||||||
Call
|
Purchased
|
OTC
|
#11 |
Sep-10
|
(2,328 | ) | 77 | ||||||||||
Call
|
Purchased
|
OTC
|
#11 |
Sep-10
|
(2,460 | ) | 77 | ||||||||||
154 | |||||||||||||||||
Call
|
Sold
|
NYBOT/OTC
|
#11 |
Sep-10
|
4,283 | (627 | ) | ||||||||||
Call
|
Sold
|
NYBOT/OTC
|
#11 |
Sep-10
|
3,734 | (440 | ) | ||||||||||
Call
|
Sold
|
NYBOT/OTC
|
#11 |
Feb-11
|
3,022 | (732 | ) | ||||||||||
Call
|
Sold
|
NYBOT
|
#11 |
Feb-11
|
451 | (138 | ) | ||||||||||
Call
|
Sold
|
NYBOT
|
#11 |
Feb-11
|
160 | (49 | ) | ||||||||||
(1,985 | ) | ||||||||||||||||
Put
|
Purchased
|
NYBOT/OTC
|
#11 |
Sep-10
|
3,759 | 2,823 | |||||||||||
Put
|
Purchased
|
NYBOT/OTC
|
#11 |
Sep-10
|
1,312 | 1,055 | |||||||||||
3,878 | |||||||||||||||||
Put
|
Sold
|
NYBOT/OTC
|
#11 |
Sep-10
|
(819 | ) | (2,823 | ) | |||||||||
Put
|
Sold
|
NYBOT/OTC
|
#11 |
Sep-10
|
(82 | ) | (1,055 | ) | |||||||||
(3,878 | ) | ||||||||||||||||
Total Commodities
|
24,666 |
13.
|
Risk management and financial instruments (Continued)
|
c)
|
Foreign exchange risk
|
Foreign exchange risk: Exchange rate derivatives outstanding on June 30, 2010
|
||||||||||||||||
Derivative
|
Purchased/ sold
|
Market
|
Contract
|
Maturity
|
Notional
|
Fair value
|
||||||||||
Derivative financial instruments designated in the cash flow hedge accounting
|
||||||||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Jul-10
|
53,733 | 3,469 | ||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Aug-10
|
79,788 | 3,791 | ||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Sep-10
|
5,640 | 527 | ||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Sep-10
|
25,636 | 2,114 | ||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Oct-10
|
81,851 | 5,843 | ||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Dec-10
|
53,081 | 1,275 | ||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Jan-11
|
49,659 | 2,504 | ||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
May-11
|
78,424 | 2,269 | ||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Jul-11
|
55,121 | 407 | ||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Aug-11
|
57,591 | 2,222 | ||||||||||
Forward
|
Sold
|
OTC/Cetip
|
NDF
|
Oct-11
|
145,079 | 3,479 | ||||||||||
27,899 | ||||||||||||||||
Derivative financial instruments not designated in the cash flow hedge accounting | ||||||||||||||||
Future
|
Sold
|
BMFBovespa
|
Commercial U.S.
dollar rate
|
Aug-10
|
152,879 | 573 | ||||||||||
Future
|
Sold
|
BMFBovespa
|
Commercial U.S.
dollar rate
|
Dec-10
|
71,708 | 441 | ||||||||||
Future
|
Sold
|
BMFBovespa
|
Commercial U.S.
dollar rate
|
Jul-11
|
189,260 | 1,177 | ||||||||||
Future
|
Sold
|
BMFBovespa
|
Commercial U.S.
dollar rate
|
Aug-11
|
43,586 | 270 | ||||||||||
Future
|
Sold
|
BMFBovespa
|
Euro
|
Jul-10
|
8,445 | (4 | ) | |||||||||
2,457 | ||||||||||||||||
Future
|
Purchased
|
BMFBovespa
|
Commercial U.S.
dollar rate
|
Dec-10
|
(51,220 | ) | (315 | ) | ||||||||
Future
|
Purchased
|
BMFBovespa
|
Commercial U.S.
dollar rate
|
Jul-11
|
(97,334 | ) | (605 | ) | ||||||||
(921 | ) | |||||||||||||||
Put Onshore
|
Purchased
|
BMFBovespa
|
Commercial U.S.
dollar rate
|
Oct-10
|
485,706 | 5,393 | ||||||||||
Put Offshore
|
Purchased
|
OTC
|
Commercial U.S.
dollar rate
|
Feb-11
|
23,748 | 424 | ||||||||||
Put Offshore
|
Purchased
|
OTC
|
Commercial U.S.
dollar rate
|
Feb-11
|
9,281 | 346 | ||||||||||
6,163 | ||||||||||||||||
Total Exchange rate derivative
|
35,598 |
13.
|
Risk management and financial instruments (Continued)
|
June 30,
2010
|
March 31,
2010
|
|||||||
Amounts pending foreign exchange closing
|
24,906 | 71,732 | ||||||
Overnight
|
28,254 | 28,338 | ||||||
Trade notes receivable - foreign
|
70,702 | 83,467 | ||||||
Senior Notes due in 2014
|
(362,838 | ) | (354,433 | ) | ||||
Senior Notes due in 2017
|
(411,589 | ) | (404,589 | ) | ||||
Perpetual bonds
|
(455,303 | ) | (455,304 | ) | ||||
Foreign currency-denominated loans
|
(203,316 | ) | (269,066 | ) | ||||
Export pre payments
|
(499,090 | ) | (550,552 | ) | ||||
Restricted cash
|
28,462 | 25,251 | ||||||
Exchange exposure
|
(1,779,812 | ) | (1,825,156 | ) |
d)
|
hedge accounting effects
|
13.
|
Risk management and financial instruments (Continued)
|
Expected period to affect P&L
|
|||||||||||||||||
Derivative
|
Market
|
Risk
|
2010/2011
|
2011/2012
|
Total
|
||||||||||||
Future
|
OTC / NYBOT
|
#11 | 3,695 | 3,302 | 6,997 | ||||||||||||
NDF
|
OTC/Cetip
|
USD
|
3,246 | 6,613 | 9,859 | ||||||||||||
(-) Deferred income taxes
|
(2,360 | ) | (3,371 | ) | (5,731 | ) | |||||||||||
Total
|
4,581 | 6,544 | 11,125 |
Cash flow hedges
|
||||
Balance at March 31, 2010
|
- | |||
Gain/(losses) of cash flow hedges for the period
|
||||
Commodities future and swap contracts
|
6,448 | |||
Currency forward contracts
|
9,860 | |||
Reclassification adjustments for losses included in the income statement (net sales)
|
548 | |||
Tax effect on gain/(losses) of cash flow hedges for the period – 34%
|
(5,731 | ) | ||
Balance at June 30, 2010
|
11,125 |
e)
|
Interest rate risk
|
Interest rate risk: outstanding interest rate swap derivatives on June 30, 2010
|
|||||||||||||||||||
Derivative
|
Purchased/
sold
|
Market
|
Contract
|
Number of
contracts
|
Average price
|
Notional
|
Fair
Value
|
||||||||||||
Swap
|
Purchased
|
OCT/Cetip
|
Fix/Libor 3 month
|
1 |
1,199% / Libor 3 month
|
300,000 | (830 | ) |
13.
|
Risk management and financial instruments (Continued)
|
f)
|
Credit risk
|
13.
|
Risk management and financial instruments (Continued)
|
g)
|
Debt acceleration risk
|
14.
|
Fair value measurements
|
14.
|
Fair value measurements (Continued)
|
Level 1
|
Level 2
|
Total
|
||||||||||
Assets
|
||||||||||||
Derivatives
|
33,427 | 46,788 | 80,215 | |||||||||
Liabilities
|
(4,643 | ) | (16,138 | ) | (20,781 | ) | ||||||
Derivatives
|
15.
|
Segment information
|
a.
|
Segment information
|
15.
|
Segment information (Continued)
|
a.
|
Segment information (continued)
|
15.
|
Segment information (Continued)
|
a.
|
Segment information (continued)
|
June 30, 2010
|
||||||||||||||||||||
S&E
|
CCL
|
RUMO
|
Adjustment/
elimination
|
Consolidated
|
||||||||||||||||
Brazilian GAAP
|
US GAAP
|
|||||||||||||||||||
Balance Sheet:
|
||||||||||||||||||||
Property, plant & equipment (PP&E)
|
2,818,027 | 191,603 | 229,915 | 819,530 | 4,059,075 | |||||||||||||||
Intangible assets
|
- | - | - | 580,590 | 580,590 | |||||||||||||||
Loans, net of cash and cash equivalents
|
(2,540,785 | ) | (223,618 | ) | (82,155 | ) | 43,933 | (2,802,625 | ) | |||||||||||
Others assets (liabilities)
|
1,458,506 | 1,076,879 | 16,518 | (962,672 | ) | 1,589,232 | ||||||||||||||
Total net assets
|
1,735,748 | 1,044,864 | 164,278 | 481,381 | 3,426,271 | |||||||||||||||
Income statements (3 months)
|
||||||||||||||||||||
Net Sales
|
701,798 | 1,495,664 | 33,671 | 2,707 | 2,233,840 | |||||||||||||||
Gross profit
|
149,381 | 114,830 | 18,368 | (41,901 | ) | 240,678 | ||||||||||||||
Selling general and administrative expenses
|
(108,162 | ) | (74,463 | ) | (4,482 | ) | (3,508 | ) | (190,616 | ) | ||||||||||
Operating income
|
40,497 | 43,239 | 11,736 | (45,409 | ) | 50,063 | ||||||||||||||
Other income (expense)
|
(2,782 | ) | (2,499 | ) | 4,208 | 939 | (133 | ) | ||||||||||||
Other selected data:
|
||||||||||||||||||||
Addiitions to PP&E (Capex)
|
258,443 | 8,243 | 68,794 | - | 335,480 | |||||||||||||||
Depreciation and amortization
|
133,316 | 9,064 | 2,105 | - | 144,484 |
March 31, 2010
|
||||||||||||||||||||
S&E
|
CCL
|
RUMO
|
Adjustment/
elimination
|
Consolidated
|
||||||||||||||||
Brazilian GAAP
|
US GAAP
|
|||||||||||||||||||
Balance Sheet:
|
||||||||||||||||||||
Property, plant & equipment (PP&E)
|
1,330,266 | 128,712 | 29,414 | 613,395 | 2,101,787 | |||||||||||||||
Intangible assets
|
423,571 | 966 | - | (183,186 | ) | 241,351 | ||||||||||||||
Loans, net of cash equivalents
|
(1,122,560 | ) | 39,663 | 4,811 | (488,458 | ) | (1,566,544 | ) | ||||||||||||
Others assets (liabilities)
|
2,943,642 | (78,223 | ) | (1,469 | ) | (1,917,548 | ) | 946,402 | ||||||||||||
Total net assets
|
3,574,919 | 91,118 | 32,756 | (1,975,797 | )) | 1,722,996 |
June 30, 2009
|
||||||||||||||||||||
S&E
|
CCL
|
RUMO
|
Adjustment/
elimination
|
Consolidated
|
||||||||||||||||
Brazilian GAAP
|
US GAAP
|
|||||||||||||||||||
Income Statements (3 months)
|
||||||||||||||||||||
Net sales
|
562,937 | 1,137,572 | 18,928 | 833 | 1,720,270 | |||||||||||||||
Gross profit
|
80,918 | 40,368 | 6,213 | (17,639 | ) | 159,644 | ||||||||||||||
Selling, general and administrative expenses (SG&A)
|
(89,065 | ) | (53,371 | ) | (1,660 | ) | 34,364 | (109,732 | ) | |||||||||||
Operating income
|
(8,147 | ) | 36,780 | 4,554 | 16,725 | 49,912 | ||||||||||||||
Other income (expense)
|
1,797 | 45,392 | (12,240 | ) | (42,870 | ) | (7,921 | ) | ||||||||||||
Other selected data:
|
||||||||||||||||||||
Additions to PP&E (Capex)
|
220,583 | 6,049 | 362 | - | 226,994 | |||||||||||||||
Depreciation and amortization
|
94,062 | 4,311 | 1,761 | - | 100,134 |
15.
|
Segment information (Continued)
|
b.
|
Detailed net sales per segment
|
June 30,
2010
|
June 30,
2009
|
|||||||
S&E (Brazilian GAAP)
|
||||||||
Sugar
|
462,631 | 314,145 | ||||||
Ethanol
|
188,786 | 220,461 | ||||||
Cogeneration
|
29,741 | 14,443 | ||||||
Other
|
20,640 | 14,088 | ||||||
701,798 | 562,937 | |||||||
CCL (Brazilian GAAP)
|
||||||||
Fuels
|
1,363,004 | 1,055,989 | ||||||
Lubricants
|
109,766 | 72,504 | ||||||
Other
|
22,894 | 9,079 | ||||||
1,495,664 | 1,137,572 | |||||||
Rumo (Brazilian GAAP)
|
||||||||
Port lifting
|
28,706 | 18,407 | ||||||
Transports
|
4,965 | 521 | ||||||
33,671 | 18,928 | |||||||
Adjustments / eliminations
|
2,707 | 833 | ||||||
Total (US GAAP)
|
2,233,840 | 1,720,270 |
c.
|
Net sales by region
|
June 30,
2010
|
June 30,
2009
|
|||||||
Sales by geographic area
|
||||||||
Brazil
|
69.27 | % | 54,35 | % | ||||
Europe
|
26.82 | % | 35,34 | % | ||||
Middle east and Asia
|
2.12 | % | 1,95 | % | ||||
North America
|
0.37 | % | 6,17 | % | ||||
Latin American (Except Brazil)
|
0.07 | % | 2,19 | % | ||||
Others
|
1.35 | % | - | |||||
Total
|
100.00 | % | 100.00 | % |
15.
|
Segment information (Continued)
|
d.
|
Concentration of clients
|
16.
|
Subsequent events
|
16.
|
Subsequent events (Continued)
|
Special review report of independent auditors
|
1
|
Unaudited quarterly financial information
|
|
Unaudited balance sheets
|
3
|
Unaudited statements of operations
|
5
|
Unaudited statement of changes in shareholders’ equity
|
6
|
Unaudited statements of cash flows
|
7
|
Notes to the unaudited quarterly financial information
|
9
|
Condomínio São Luiz
Av. Pres. Juscelino Kubitschek, 1830
Torre I - 8º Andar - Itaim Bibi
04543-900 - São Paulo, SP, Brasil
|
|
Tel: (5511) 2573-3000
Fax: (5511) 2573-5780
www.ey.com.br
|
1.
|
We have performed a special review of the accompanying Quarterly Financial Information of Cosan S.A. Indústria e Comércio (parent company and consolidated) for the quarter ended June 30, 2010, including the balance sheets, statements of operations and cash flows, report on the Company’s performance and explanatory notes, prepared under the management’s responsibility.
|
2.
|
Our review was conducted in accordance with the specific procedures determined by the Brazilian Institute of Independent Auditors (IBRACON) and the Federal Board of Accountancy (CFC), which comprised principally: (a) inquiries of and discussions with the management responsible for the Company’s accounting, financial and operational areas about the criteria adopted for the preparation of the Quarterly Financial Information; and (b) review of information and subsequent events which have, or could have, significant effects on the Company’s operations and financial position.
|
3.
|
Based on our special review, we are not aware of any material modification that should be made to the Quarterly Financial Information referred to above for it to comply with specific standards established by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of the Quarterly Financial Information.
|
4.
|
As mentioned in Note 2, during the 2009, CVM approved several Pronouncements, Interpretations and Technical Orientations issued by the Committee of Accounting Pronouncements (“CPC”) effective 2010, which have changed accounting practices adopted in Brazil. As permitted by CVM Deliberation 603/09, management of the Company opted to present is Quarterly Financial Information using the same accounting standards adopted in Brazil until December 31, 2009, therefore, it did not apply the new pronouncements effective in 2010. As required by the CVM Deliberation, the Company disclosed this fact in Note 2 of the Quarterly Financial Information as well as the description of the main changes the can have an impact in its financial statements at the end of the year and the reasons that avoid the presentation of the estimated effects in shareholders’ equity and income, as required by the Deliberation.
|
Parent Company
|
Consolidated
|
||||||||||||||||
(Unaudited)
June 30, 2010
|
March 31, 2010
|
(Unaudited)
June 30, 2010
|
March 31, 2010
|
||||||||||||||
Assets
|
|||||||||||||||||
Current assets
|
|||||||||||||||||
Cash and cash equivalents
|
Note 4
|
85,071 | 285,925 | 1,054,914 | 1,078,366 | ||||||||||||
Restricted cash
|
51,274 | 44,972 | 51,274 | 44,972 | |||||||||||||
Trade accounts receivable
|
Note 5
|
106,806 | 224,961 | 619,127 | 766,415 | ||||||||||||
Derivative financial instruments
|
Note 20
|
148,767 | 238,024 | 144,507 | 230,561 | ||||||||||||
Inventories
|
Note 6
|
380,238 | 255,643 | 1,433,659 | 1,046,730 | ||||||||||||
Advances to suppliers
|
84,266 | 69,480 | 323,472 | 235,552 | |||||||||||||
Related parties
|
Note 7
|
530,338 | 429,223 | 49,883 | 24,859 | ||||||||||||
Deferred income and social contribution taxes
|
Note 12.b
|
12,695 | 12,680 | 94,581 | 76,310 | ||||||||||||
Recoverable taxes
|
117,968 | 115,321 | 355,375 | 327,864 | |||||||||||||
Dividends
|
83,330 | 15,132 | - | - | |||||||||||||
Other assets
|
10,945 | 7,165 | 68,329 | 61,166 | |||||||||||||
1,611,698 | 1,698,526 | 4,195,121 | 3,892,795 | ||||||||||||||
Noncurrent assets
|
|||||||||||||||||
Long-term receivables
|
|||||||||||||||||
Accounts receivable from federal government
|
Note 15
|
- | - | 336,273 | 333,733 | ||||||||||||
CTNs-Restricted Brazilian Treasury Bills
|
Note 13
|
33,040 | 31,234 | 217,550 | 205,657 | ||||||||||||
Deferred income and social contribution taxes
|
Note 12.b
|
139,612 | 150,226 | 521,474 | 560,114 | ||||||||||||
Advances to suppliers
|
13,301 | 4,635 | 52,494 | 63,741 | |||||||||||||
Related parties
|
Note 7
|
33,199 | 22,160 | 79,612 | 81,411 | ||||||||||||
Recoverable Taxes
|
3,488 | 2,666 | 38,812 | 45,018 | |||||||||||||
Other assets
|
1,981 | 1,712 | 177,873 | 166,823 | |||||||||||||
Permanent assets
|
|||||||||||||||||
Investments
|
Note 8
|
6,157,836 | 6,112,223 | 193,625 | 193,123 | ||||||||||||
Property, plant and equipment
|
Note 9
|
841,064 | 872,122 | 5,836,039 | 5,561,065 | ||||||||||||
Intangible assets
|
Note 10
|
399,400 | 399,648 | 2,921,239 | 2,901,308 | ||||||||||||
7,622,921 | 7,596,626 | 10,374,991 | 10,111,993 | ||||||||||||||
Total assets
|
9,234,619 | 9,295,152 | 14,570,112 | 14,004,788 |
Parent Company
|
Consolidated
|
||||||||||||||||
(Unaudited)
June 30, 2010
|
March 31, 2010
|
(Unaudited)
June 30, 2010
|
March 31, 2010
|
||||||||||||||
Liabilities
|
|||||||||||||||||
Current liabilities
|
|||||||||||||||||
Loans and financing
|
Note 13
|
465,333 | 500,142 | 860,304 | 800,902 | ||||||||||||
Derivative financial instruments
|
Note 20
|
37,437 | 76,703 | 37,437 | 76,703 | ||||||||||||
Trade accounts payable
|
156,544 | 116,363 | 716,254 | 569,399 | |||||||||||||
Salaries payable
|
77,574 | 48,759 | 219,887 | 141,584 | |||||||||||||
Taxes and social contributions payable
|
Note 11
|
30,886 | 42,633 | 197,350 | 215,862 | ||||||||||||
Dividends payable
|
Note 16.b
|
116,569 | 116,569 | 116,569 | 116,569 | ||||||||||||
Related parties
|
Note 7
|
147,092 | 92,818 | 120,073 | 14,416 | ||||||||||||
Other liabilities
|
58,945 | 68,047 | 189,395 | 182,434 | |||||||||||||
1,090,380 | 1,062,034 | 2,457,269 | 2,117,869 | ||||||||||||||
Noncurrent liabilities
|
|||||||||||||||||
Loans and financing
|
Note 13
|
1,630,756 | 1,740,779 | 5,322,684 | 5,136,529 | ||||||||||||
Taxes and social contributions payable
|
Note 11
|
87,803 | 87,645 | 597,862 | 593,505 | ||||||||||||
Provision for judicial demands
|
Note 14
|
74,463 | 71,556 | 456,083 | 444,421 | ||||||||||||
Related parties
|
Note 7
|
979,115 | 967,974 | - | - | ||||||||||||
Actuarial liability
|
Note 24
|
- | - | 59,774 | 61,788 | ||||||||||||
Deferred income and social contribution taxes
|
Note 12.b
|
197,862 | 220,697 | 341,294 | 346,599 | ||||||||||||
Other liabilities
|
35,318 | 34,711 | 146,497 | 146,496 | |||||||||||||
3,005,317 | 3,123,362 | 6,924,194 | 6,729,338 | ||||||||||||||
Minority shareholders’ interest
|
- | - | 49,727 | 47,825 | |||||||||||||
Shareholders’ equity
|
Note 16
|
||||||||||||||||
Capital
|
4,687,826 | 4,687,826 | 4,687,826 | 4,687,826 | |||||||||||||
Capital reserves
|
51,136 | 50,626 | 51,136 | 50,626 | |||||||||||||
Income reserves
|
374,248 | 374,248 | 374,248 | 374,248 | |||||||||||||
Other comprehensive income
|
16,993 | (2,944 | ) | 16,993 | (2,944 | ) | |||||||||||
Accumulated income
|
8,719 | - | 8,719 | - | |||||||||||||
5,138,922 | 5,109,756 | 5,138,922 | 5,109,756 | ||||||||||||||
Total liabilities and shareholders’ equity
|
9,234,619 | 9,295,152 | 14,570,112 | 14,004,788 |
Parent Company
|
Consolidated
|
||||||||||||||||
June 30,
2010
|
June 30,
2009
|
June 30,
2010
|
June 30,
2009
|
||||||||||||||
Gross operating sales
|
|||||||||||||||||
Sales of goods and services
|
592,071 | 665,996 | 4,369,376 | 3,843,505 | |||||||||||||
Taxes and sales deductions
|
(28,265 | ) | (36,728 | ) | (369,754 | ) | (277,402 | ) | |||||||||
Net operating sales
|
563,806 | 629,268 | 3,999,622 | 3,566,103 | |||||||||||||
Cost of goods sold and services rendered
|
(439,853 | ) | (542,670 | ) | (3,493,059 | ) | (3,198,418 | ) | |||||||||
Gross profit
|
123,953 | 86,598 | 506,563 | 367,685 | |||||||||||||
Operating income (expenses)
|
|||||||||||||||||
Selling expenses
|
(30,019 | ) | (47,468 | ) | (215,210 | ) | (209,570 | ) | |||||||||
General and administrative expenses
|
(51,826 | ) | (44,458 | ) | (120,205 | ) | (89,285 | ) | |||||||||
Financial, net
|
Note 18
|
(103,837 | ) | 343,309 | (139,340 | ) | 433,433 | ||||||||||
Income (loss) on equity investments
|
Note 8
|
52,555 | 108,992 | (351 | ) | (3,554 | ) | ||||||||||
Goodwill realized through sale
|
Note 8
|
- | - | - | (85,589 | ) | |||||||||||
Other operating income (expenses), net
|
Note 19
|
(4,617 | ) | 3,615 | (2,329 | ) | 72,484 | ||||||||||
(137,744 | ) | 363,990 | (477,435 | ) | 117,919 | ||||||||||||
Operating income (loss) before income and social contribution taxes
|
(13,791 | ) | 450,588 | 29,128 | 485,604 | ||||||||||||
Income and social contribution taxes
|
|||||||||||||||||
Current
|
Note 12.a
|
- | - | (11,706 | ) | (23,312 | ) | ||||||||||
Deferred
|
Note 12.a
|
22,510 | (113,319 | ) | (6,801 | ) | (134,587 | ) | |||||||||
22,510 | (113,319 | ) | (18,507 | ) | (157,899 | ) | |||||||||||
Net income before minority interest
|
8,719 | 337,269 | 10,621 | 327,705 | |||||||||||||
Minority interest
|
- | - | (1,902 | ) | 9,564 | ||||||||||||
Net income for the period
|
8,719 | 337,269 | 8,719 | 337,269 | |||||||||||||
Earnings per share – in Reais
|
0,02146 | 0,90605 |
Unconsolidated and Consolidated
|
||||||||||||||||||||||||
Capital
|
Capital
reserve
|
Income
reserve
|
Retained
earnings /
(accumulated
losses)
|
Other
comprehensive
|
Total
|
|||||||||||||||||||
Balance on March 31, 2010
|
4,687,826 | 50,626 | 374,248 | - | (2,944 | ) | 5,109,756 | |||||||||||||||||
Recorded granted options
|
- | 510 | - | - | - | 510 | ||||||||||||||||||
Other comprehensive income
|
- | - | - | - | 19,937 | 19,937 | ||||||||||||||||||
Net income in the period
|
- | - | - | 8,719 | - | 8,719 | ||||||||||||||||||
Balance on March 31, 2010
|
4,687,826 | 51,136 | 374,248 | 8,719 | 16,993 | 5,138,922 |
Parent Company
|
Consolidated
|
|||||||||||||||
June 30,
2010
|
June 30,
2009
|
June 30,
2010
|
June 30,
2009
|
|||||||||||||
Cash flows from operating activities
|
||||||||||||||||
Net income for the period
|
8,719 | 337,269 | 8,719 | 337,269 | ||||||||||||
Adjustments to reconcile net income for the period to cash provided by operating activities
|
||||||||||||||||
Depreciation and amortization
|
56,250 | 62,557 | 189,191 | 169,917 | ||||||||||||
Losses (income) on equity investments
|
(52,555 | ) | (108,992 | ) | 351 | 3,554 | ||||||||||
Loss (income) from disposal of permanent assets
|
(69 | ) | (259 | ) | 3,112 | (103,168 | ) | |||||||||
Goodwill amortization and realized through sale
|
- | - | - | 85,589 | ||||||||||||
Deferred income and social contribution taxes
|
(22,510 | ) | 113,319 | 6,801 | 134,587 | |||||||||||
Recording of provision for legal claims
|
3,488 | 592 | 10,656 | 2,890 | ||||||||||||
Minority interest
|
- | - | 1,902 | (9,564 | ) | |||||||||||
Recorded granted options
|
510 | 3,479 | 510 | 3,479 | ||||||||||||
Interest, monetary and exchange variation, net
|
85,574 | (243,609 | ) | 162,571 | (287,809 | ) | ||||||||||
Other
|
2,871 | (5,102 | ) | 18,914 | 1,728 | |||||||||||
82,278 | 159,254 | 402,727 | 338,472 | |||||||||||||
Changes in assets and liabilities
|
||||||||||||||||
Trade accounts receivables
|
116,695 | (23,041 | ) | 153,257 | 110,345 | |||||||||||
Inventories
|
(92,177 | ) | 37,336 | (284,622 | ) | 172,567 | ||||||||||
Recoverable taxes
|
19 | (8,392 | ) | (21,305 | ) | 10,394 | ||||||||||
Advances to suppliers
|
(23,452 | ) | (23,019 | ) | (76,673 | ) | (75,730 | ) | ||||||||
Suppliers
|
40,181 | 39,071 | 146,855 | 46,966 | ||||||||||||
Salaries payable
|
28,815 | 22,896 | 78,303 | 41,354 | ||||||||||||
Taxes payable
|
(13,662 | ) | 3,252 | (29,039 | ) | (57,123 | ) | |||||||||
Derivative financial instruments and restricted cash
|
73,906 | (62,534 | ) | 70,703 | (60,035 | ) | ||||||||||
Other assets and liabilities, net
|
(41,168 | ) | (4,240 | ) | 59,076 | 7,011 | ||||||||||
89,157 | (18,671 | ) | 96,555 | 195,749 | ||||||||||||
Net cash generated from operating activities
|
171,435 | 140,583 | 499,282 | 534,221 | ||||||||||||
Cash flows from investments activities
|
||||||||||||||||
Acquisition of new businesses, net of cash received and additions to investments
|
- | (3,900 | ) | (3,747 | ) | - | ||||||||||
Advance for future capital increase
|
- | - | - | - | ||||||||||||
Addition to property, plant and equipment, software and other intangible assets
|
(112,267 | ) | (55,138 | ) | (600,404 | ) | (420,618 | ) | ||||||||
Cash from the sale of aviation fuel business
|
- | - | - | - | ||||||||||||
Cash from the sale of other permanent assets
|
277 | 294 | 672 | 117,731 | ||||||||||||
Net cash used in investment activities
|
(111,990 | ) | (58,744 | ) | (603,479 | ) | (244,348 | ) | ||||||||
Cash flows from financing activities
|
||||||||||||||||
Loans and financing funded
|
110,109 | 2,684 | 642,394 | 172,899 | ||||||||||||
Amortization of principal and interest on loans and financing, advances from customers and Promissory Notes
|
(312,483 | ) | (61,417 | ) | (561,649 | ) | (127,849 | ) | ||||||||
Related parties
|
(57,925 | ) | (103,925 | ) | - | (121,359 | ) | |||||||||
Net cash generated (used) by financing activities
|
(260,299 | ) | (162,658 | ) | 80,745 | (76,309 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents
|
(200,854 | ) | (80,819 | ) | (23,452 | ) | 213,564 | |||||||||
Cash and cash equivalents at the beginning of the period
|
285,925 | 388,726 | 1,078,366 | 719,356 | ||||||||||||
Cash and cash equivalents at the end of the period
|
85,071 | 307,907 | 1,054,914 | 932,920 |
1.
|
Operations
|
2.
|
Basis of preparation and presentation of the quarterly financial statements
|
2.
|
Basis of preparation and presentation of the quarterly financial statements (Continued)
|
·
|
CPC 15 – Business combinations;
|
·
|
CPC 16 – Inventories;
|
·
|
CPC 20 – Loan costs;
|
·
|
CPC 22 – Segment reporting;
|
·
|
CPC 24 – Subsequent event;
|
·
|
CPC 26 – Presentation of financial statements;
|
·
|
CPC 27 – Property, plant and equipment;
|
·
|
CPC 29 – Biological assets and agricultural products;
|
·
|
CPC 37 – First time adoption of International Accounting Standards and CPC 43 Initial adoption of CPC standards 15 through 40;
|
·
|
CPC 38 – Financial instruments: recognition and measurement;
|
·
|
CPC 39 – Financial instruments: presentation;
|
·
|
CPC 40 – Financial instruments: disclosure
|
3.
|
Summary of Significant Accounting Policies
|
3.
|
Summary of Significant Accounting Policies (Continued)
|
3.
|
Summary of Significant Accounting Policies (Continued)
|
3.
|
Summary of Significant Accounting Policies (Continued)
|
Direct and indirect interest as of
|
||||||||
06/30/10
|
03/31/10
|
|||||||
Administração de Participações Aguassanta Ltda.
|
91.5 | % | 91.5 | % | ||||
Cosan S.A Açúcar e Álcool
|
99.6 | % | 99.6 | % | ||||
Águas da Ponte Alta S.A. (1)
|
99.6 | % | 99.6 | % | ||||
Vale da Ponte Alta S.A.
|
99.6 | % | 99.6 | % | ||||
Agrícola Ponte Alta S.A.
|
99.6 | % | 99.6 | % | ||||
Cosan Centroeste S.A. Açúcar e Álcool
|
99.6 | % | 99.6 | % | ||||
Barra Bioenergia S.A.
|
99.6 | % | 99.6 | % | ||||
DaBarra Alimentos S.A.
|
99.6 | % | 99.6 | % | ||||
Bonfim Nova Tamoio – BNT Agrícola Ltda.
|
99.6 | % | 99.6 | % | ||||
Benálcool Açúcar e Álcool S.A.
|
99.6 | % | 99.6 | % | ||||
Barrapar Participações Ltda.
|
99.6 | % | 99.6 | % | ||||
Aliança Indústria e Comercio de açúcar e Álcool S.A.
|
99.6 | % | 99.6 | % | ||||
Agrobio Investimentos e Participações S.A. (3)
|
99.6 | % | - | |||||
Bioinvestments Negócios e Partipações S.A. (3)
|
99.6 | % | - | |||||
Proud Participações S.A. (3)
|
99.9 | % | - | |||||
Cosan Distribuidora de Combustíveis Ltda.
|
99.9 | % | 99.9 | % | ||||
Cosan S.A. Bioenergia
|
100.0 | % | 100.0 | % | ||||
Cosan International Universal Corporation
|
100.0 | % | 100.0 | % | ||||
Cosan Finance Limited
|
100.0 | % | 100.0 | % | ||||
Grançucar S.A. Refinadora de Açúcar
|
100.0 | % | 100.0 | % | ||||
Cosan Combustíveis e Lubrificantes S.A.
|
100.0 | % | 100.0 | % | ||||
Copsapar Participações S.A.
|
90.0 | % | 90.0 | % | ||||
Novo Rumo Logística S.A.
|
92.9 | % | 92.9 | % | ||||
Rumo Logística S.A.
|
92.9 | % | 92.9 | % | ||||
Cosan Operadora Portuária S.A.
|
92.9 | % | 92.9 | % | ||||
Teaçú Armazéns Gerais S.A.
|
92.9 | % | 92.9 | % | ||||
Teas Terminal Exportador de Álcool de Santos S.A.
|
66.7 | % | 66.7 | % | ||||
Pasadena Empreendimentos e Participações S.A. (2)
|
- | - | ||||||
Cosan Alimentos S.A.
|
100.0 | % | 100.0 | % |
(1)
|
Year ended December 31 of each year.
|
(2)
|
Special purpose entity, controlled by the Company.
|
(3)
|
Companies established upon the payment of rural and urban properties of the plants (Note 8).
|
4.
|
Cash and cash equivalents
|
Parent company
|
Consolidated
|
|||||||||||||||
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
|||||||||||||
Cash
|
140 | 247 | 411 | 384 | ||||||||||||
Overnight investments
|
- | - | 50,900 | 50,470 | ||||||||||||
Bank checking accounts
|
2,262 | 1,767 | 72,940 | 22,740 | ||||||||||||
Amounts pending foreign exchange closing
|
44,172 | 125,882 | 44,868 | 127,755 | ||||||||||||
Financial investments
|
38,497 | 158,029 | 885,795 | 877,017 | ||||||||||||
85,071 | 285,925 | 1,054,914 | 1,078,366 |
5.
|
Trade accounts receivable
|
Parent company
|
Consolidated
|
|||||||||||||||
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
|||||||||||||
Domestic
|
28,947 | 97,930 | 547,975 | 675,008 | ||||||||||||
International
|
78,843 | 127,837 | 127,370 | 148,655 | ||||||||||||
(-) Allowance for doubtful accounts
|
(984 | ) | (806 | ) | (56,218 | ) | (57,248 | ) | ||||||||
106,806 | 224,961 | 619,127 | 766,415 |
6.
|
Inventories
|
Parent company
|
Consolidated
|
|||||||||||||||
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
|||||||||||||
Finished goods:
|
||||||||||||||||
Sugar
|
87,113 | 10,050 | 298,889 | 93,610 | ||||||||||||
Ethanol
|
98,233 | 17,194 | 321,795 | 56,232 | ||||||||||||
Fuels and lubricants
|
- | - | 271,148 | 266,461 | ||||||||||||
Harvest costs
|
134,654 | 171,331 | 367,319 | 434,046 | ||||||||||||
Supplies and other
|
71,204 | 63,851 | 220,000 | 221,641 | ||||||||||||
(-) Provision for inventory realization and obsolescence
|
(10,966 | ) | (6,783 | ) | (45,492 | ) | (25,260 | ) | ||||||||
380,238 | 255,643 | 1,433,659 | 1,046,730 |
7.
|
Related parties
|
Assets
|
||||||||||||||||
Parent company
|
Consolidated
|
|||||||||||||||
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
|||||||||||||
Cosan S.A. Açúcar e Álcool
|
448,868 | 276,121 | - | - | ||||||||||||
Cosan Alimentos S.A.
|
- | 122,679 | - | - | ||||||||||||
Pasadena Empreendimentos e Participações S.A.
|
33,199 | 22,160 | - | - | ||||||||||||
Rezende Barbosa S.A. Administração e Participações
|
- | - | 86,944 | 87,071 | ||||||||||||
Cosan Operadora Portuária S.A.
|
46,270 | 17,879 | - | - | ||||||||||||
Vertical UK LLP
|
30,737 | 10,306 | 32,490 | 14,965 | ||||||||||||
Other
|
4,463 | 2,238 | 10,061 | 4,234 | ||||||||||||
563,537 | 451,383 | 129,495 | 106,270 | |||||||||||||
Current
|
(530,338 | ) | (429,223 | ) | (49,883 | ) | (24,859 | ) | ||||||||
Noncurrent
|
33,199 | 22,160 | 79,612 | 81,411 |
Liabilities
|
||||||||||||||||
Parent company
|
Consolidated
|
|||||||||||||||
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
|||||||||||||
Cosan Finance Limited
|
688,022 | 668,395 | - | - | ||||||||||||
Rezende Barbosa S.A. Administração e Participações
|
- | - | 109,798 | - | ||||||||||||
CCL Finance Limited
|
329,072 | 317,844 | - | - | ||||||||||||
Cosan Combustíveis e Lubrificantes S.A.
|
63,115 | 38,537 | - | - | ||||||||||||
Logispot Armazéns Gerais S.A.
|
- | - | 7,496 | 11,244 | ||||||||||||
Other
|
45,998 | 36,016 | 2,779 | 3,172 | ||||||||||||
1,126,207 | 1,060,792 | 120,073 | 14,416 | |||||||||||||
Current
|
(147,092 | ) | (92,818 | ) | (120,073 | ) | (14,416 | ) | ||||||||
Noncurrent
|
979,115 | 967,974 | - | - |
Parent company
|
Consolidated
|
|||||||||||||||
04/01/10 to
06/30/10
|
04/01/09 to
06/30/09
|
04/01/10 to
06/30/10
|
04/01/09 to
06/30/09
|
|||||||||||||
Asset balance transactions
|
||||||||||||||||
Fund remittances, net of receipts, credit assignments and advances
|
205,837 | 275,819 | (53,277 | ) | (75,685 | ) | ||||||||||
Sales of finished products, inputs and services (1)
|
39,990 | 41,417 | - | - | ||||||||||||
Purchases of finished products, inputs and services (1)
|
(168,744 | ) | (174,610 | ) | - | - | ||||||||||
Sales of finished products, inputs and services to affiliate and related companies
|
30,919 | 30,991 | 76,502 | 69,059 | ||||||||||||
Merged assets
|
- | - | - | 138,682 | ||||||||||||
Financial revenues
|
4,152 | 1,777 | - | - | ||||||||||||
112,154 | 175,394 | (23,225 | ) | 132,056 | ||||||||||||
Liability balance transactions
|
||||||||||||||||
Fund raising (payments)
|
34,559 | 72,790 | 8,085 | (3,532 | ) | |||||||||||
Purchase of sugarcane raw materials from associated company
|
- | - | 113,742 | 23,618 | ||||||||||||
Financial expense (revenue)
|
30,856 | (120,989 | ) | - | (60,275 | ) | ||||||||||
65,415 | (48,199 | ) | 105,657 | (64,324 | ) |
(1)
|
It consists of operations carried out between Cosan’s direct and indirect subsidiaries included in the consolidation.
|
7.
|
Related parties (Continued)
|
7.
|
Related parties (Continued)
|
8.
|
Investments
|
Parent company
|
||||||||||||||||||||||||||||||||
Investees
|
Investor
|
|||||||||||||||||||||||||||||||
Shareholders’
equity
|
Net income
for the year
|
Equity interest %
|
Investments
|
Equity in the results
|
||||||||||||||||||||||||||||
06/30/10
|
04/01/10 to
06/30/10
|
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
04/01/10 to
06/30/10
|
04/01/09 to
06/30/09
|
|||||||||||||||||||||||||
Administração de Participações Aguassanta Ltda.
|
141,393 | (11 | ) | 91.5 | 91.5 | 129,372 | 129,382 | (10 | ) | 1,150 | ||||||||||||||||||||||
Cosan S.A. Açúcar e Álcool
|
2,886,987 | (112 | ) | 95.1 | 95.1 | 2,744,861 | 2,744,968 | (107 | ) | 24,493 | ||||||||||||||||||||||
Copsapar Participações S.A.
|
210,856 | 14,479 | 90.0 | 90.0 | 189,770 | 173,842 | 15,928 | (11,773 | ) | |||||||||||||||||||||||
Novo Rumo Logística S.A.
|
295,247 | 20,342 | 28.8 | 28.8 | 84,017 | 77,924 | 7,166 | (324 | ) | |||||||||||||||||||||||
TEAS - Terminal Exportador de Álcool de Santos S.A. (2)
|
47,925 | 195 | 66.7 | 66.7 | 31,950 | 39,121 | 130 | 114 | ||||||||||||||||||||||||
Cosan S.A. Bioenergia
|
132,859 | 1,225 | 100.0 | 100.0 | 132,859 | 131,634 | 1,225 | 1,963 | ||||||||||||||||||||||||
Radar Propriedades Agrícolas S.A.
|
823,662 | 5,066 | 18.9 | 18.9 | 155,828 | 154,836 | 992 | 1,282 | ||||||||||||||||||||||||
Cosan International Universal Corporation
|
614 | - | 100.0 | 100.0 | 614 | 607 | - | 118 | ||||||||||||||||||||||||
Cosan Finance Limited
|
22,577 | (863 | ) | 100.0 | 100.0 | 22,577 | 23,179 | (863 | ) | 1,167 | ||||||||||||||||||||||
Cosanpar Participações S.A. (1)
|
- | - | - | - | - | - | 72,212 | |||||||||||||||||||||||||
Cosan Combustíveis e Lubrificantes S.A.
|
1,869,395 | 35,161 | 100.0 | 100.0 | 1,869,369 | 1,901,333 | 35,161 | 21,893 | ||||||||||||||||||||||||
Cosan Alimentos S.A. (3)
|
257,140 | (5,423 | ) | 100.0 | 100.0 | 714,761 | 715,385 | (5,149 | ) | 1,651 | ||||||||||||||||||||||
Proud Participações S.A. (4)
|
58,957 | - | 93.4 | - | 55,038 | - | - | - | ||||||||||||||||||||||||
Other investments
|
- | - | - | - | 26,820 | 20,012 | (1,918 | ) | (4,954 | ) | ||||||||||||||||||||||
6,157,836 | 6,112,223 | 52,555 | 108,992 |
(1)
|
Merged by Cosan CL on June 23, 2009;
|
(2)
|
The investment balances, as of June 30 and March 31, 2010, include the goodwill generated from the acquisition of shares in the amount of R$7,301;
|
(3)
|
As of June 30, 2010, this includes the amounts of R$365,240 (R$360,716 as of March 31, 2010) and R$92,380 (R$102,952 as of March 31, 2010) related to the advances for future capital increase and goodwill from acquisition of Curupay, respectively;
|
(4)
|
Established upon payment of rural and urban real estate properties; and
|
(5)
|
Including equity in the losses on negative liabilities, in the amount of R$ 1,918.
|
8.
|
Investments (Continued)
|
Parent company
|
Consolidated
|
|||||||||||||||
04/01/10 to
06/30/10
|
04/01/09 to
06/30/09
|
04/01/10 to
06/30/10
|
04/01/09 to
06/30/09
|
|||||||||||||
Opening balances
|
6,112,223 | 4,788,932 | 193,123 | 278,209 | ||||||||||||
Equity pickup
|
54,473 | 108,992 | 992 | (3,554 | ) | |||||||||||
Investment additions and advance for future capital increase
|
4,524 | 4,000 | - | 4,000 | ||||||||||||
Payment of capital with property, plant and equipment and additions resulting from merger/spin-off
|
55,038 | 334,072 | - | 2,769 | ||||||||||||
Investment acquisition advancement write-off
|
- | - | - | (100,000 | ) | |||||||||||
Merger goodwill
|
- | (18,194 | ) | - | - | |||||||||||
Dividends
|
(68,198 | ) | - | - | - | |||||||||||
Other
|
(224 | ) | (1,660 | ) | (490 | ) | (133 | ) | ||||||||
Final balances
|
6,157,836 | 5,216,142 | 193,625 | 181,291 |
9.
|
Property, plant and equipment
|
Parent company
|
||||||||||||||||||||
06/30/10
|
03/31/10
|
|||||||||||||||||||
Average
annual
depreciation
rates (%)
|
Cost
|
Accumulated
depreciation/
amortization
|
Net
|
Net
|
||||||||||||||||
Land and rural properties
|
- | 5,045 | - | 5,045 | 59,591 | |||||||||||||||
Machinery, equipment and installations
|
10 | 537,804 | (308,859 | ) | 228,945 | 214,814 | ||||||||||||||
Aircraft
|
10 | 13,395 | (13,308 | ) | 87 | 460 | ||||||||||||||
Vehicles
|
20 | 86,696 | (43,208 | ) | 43,488 | 25,682 | ||||||||||||||
Furniture, fixtures and computer equipment
|
18 | 31,147 | (16,024 | ) | 15,123 | 14,624 | ||||||||||||||
Buildings and improvements
|
4 | 174,728 | (35,524 | ) | 139,204 | 139,987 | ||||||||||||||
Construction in progress
|
- | 113,365 | - | 113,365 | 101,344 | |||||||||||||||
Sugarcane planting costs
|
20 | 484,592 | (251,790 | ) | 232,802 | 233,210 | ||||||||||||||
Parts and components to be periodically replaced
|
100 | 103,850 | (41,261 | ) | 62,589 | 82,410 | ||||||||||||||
Other
|
- | 416 | - | 416 | - | |||||||||||||||
1,551,038 | (709,974 | ) | 841,064 | 872,122 |
Consolidated
|
||||||||||||||||||||
06/30/10
|
03/31/10
|
|||||||||||||||||||
Average
annual
depreciation
rates (%)
|
Cost
|
Accumulated
depreciation/
amortization
|
Net
|
Net
|
||||||||||||||||
Land and rural properties
|
- | 210,922 | - | 210,922 | 210,429 | |||||||||||||||
Machinery, equipment and installations
|
11 | 3,641,854 | (1,621,722 | ) | 2,020,132 | 1,896,446 | ||||||||||||||
Aircraft
|
10 | 30,903 | (13,795 | ) | 17,108 | 4,995 | ||||||||||||||
Vehicles
|
19 | 264,103 | (145,733 | ) | 118,370 | 89,004 | ||||||||||||||
Furniture, fixtures and computer equipment
|
18 | 138,330 | (93,611 | ) | 44,719 | 40,007 | ||||||||||||||
Buildings and improvements
|
4 | 1,049,733 | (307,919 | ) | 741,814 | 714,588 | ||||||||||||||
Wagons
|
3 | 87,829 | (288 | ) | 87,541 | - | ||||||||||||||
Construction in progress
|
- | 1,451,237 | - | 1,451,237 | 1,408,252 | |||||||||||||||
Sugarcane planting costs
|
20 | 1,523,794 | (754,568 | ) | 769,226 | 749,851 | ||||||||||||||
Parts and components to be periodically replaced
|
100 | 306,215 | (108,280 | ) | 197,935 | 245,178 | ||||||||||||||
Advances for purchase of property, plant and equipment
|
- | 175,010 | - | 175,010 | 200,634 | |||||||||||||||
Other
|
- | 2,025 | - | 2,025 | 1,681 | |||||||||||||||
8,881,955 | (3,045,915 | ) | 5,836,039 | 5,561,065 |
9.
|
Property, plant and equipment (Continued)
|
Parent company
|
Consolidated
|
|||||||||||||||
04/01/10 to
06/30/10
|
04/01/09 to
06/30/09
|
04/01/10 to
06/30/10
|
04/01/09 to
06/30/09
|
|||||||||||||
Opening balances
|
872,122 | 789,259 | 5,561,065 | 3,493,947 | ||||||||||||
Additions to the property plant and equipment
|
114,707 | 55,138 | 597,000 | 420,618 | ||||||||||||
Write-offs
|
(209 | ) | (3,923 | ) | (2,353 | ) | (14,563 | ) | ||||||||
Transfer to intangible assets
|
(15,889 | ) | ||||||||||||||
Depreciation and amortization
|
- | (303,784 | ) | |||||||||||||
Offset due to capital contribution in subsidiaries
|
(55,038 | ) | ||||||||||||||
Additions due to merger/acquisition
|
812,985 | |||||||||||||||
Closing balances
|
841,064 | 768,685 | 5,836,039 | 4,516,362 |
10.
|
Intangible
|
Parent company
|
||||||||||||||||
06/30/10
|
03/31/10
|
|||||||||||||||
Goodwill (amortized on a straight-line basis until March 31, 2009)
|
Cost
|
Accumulated
amortization
|
Net
|
Net
|
||||||||||||
Acquisition of JVM Participações S.A.
|
63,720 | (53,100 | ) | 10,620 | 10,620 | |||||||||||
Acquisition of Grupo Mundial
|
127,953 | (40,518 | ) | 87,435 | 87,435 | |||||||||||
Payment of capital, Mundial
|
21,142 | (6,342 | ) | 14,800 | 14,800 | |||||||||||
Acquisition of Corona (ABC 125 and ABC 126)
|
267,824 | (84,811 | ) | 183,013 | 183,013 | |||||||||||
Acquisition of Usina Açucareira Bom Retiro S.A.
|
115,165 | (33,590 | ) | 81,575 | 81,575 | |||||||||||
595,804 | (218,361 | ) | 377,443 | 377,443 | ||||||||||||
Other intangibles
|
||||||||||||||||
Software (amortization at the rate of 20% p. a.)
|
48,085 | (26,128 | ) | 21,957 | 22,205 | |||||||||||
643,889 | (244,489 | ) | 399,400 | 399,648 |
10.
|
Intangible (Continued)
|
Consolidated
|
||||||||||||||||
06/30/10
|
03/31/10
|
|||||||||||||||
Goodwill (amortized on a straight-line basis until March 31, 2009)
|
Cost
|
Accumulated
amortization
|
Net
|
Net
|
||||||||||||
Acquisition of JVM Participações S.A.
|
63,720 | (53,100 | ) | 10,620 | 10,620 | |||||||||||
Acquisition of Cosan Açúcar e Álcool
|
35,242 | (34,684 | ) | 558 | 558 | |||||||||||
Formation of FBA
|
22,992 | (18,585 | ) | 4,407 | 4,407 | |||||||||||
Acquisition of Univalem S.A. Açúcar e Álcool
|
24,118 | (19,100 | ) | 5,018 | 5,018 | |||||||||||
Acquisition of Grupo Destivale
|
69,918 | (27,424 | ) | 42,494 | 42,494 | |||||||||||
Acquisition of Grupo Mundial
|
127,953 | (40,518 | ) | 87,435 | 87,435 | |||||||||||
Payment of capital, Mundial
|
21,142 | (6,342 | ) | 14,800 | 14,800 | |||||||||||
Acquisition of Corona
|
818,831 | (255,815 | ) | 563,016 | 563,016 | |||||||||||
Acquisition of Usina Açucareira Bom Retiro S.A.
|
115,165 | (33,590 | ) | 81,575 | 81,575 | |||||||||||
Acquisition of Usina Santa Luíza
|
47,053 | (4,705 | ) | 42,348 | 42,348 | |||||||||||
Acquisition of Benálcool
|
167,300 | (18,053 | ) | 149,247 | 149,247 | |||||||||||
Acquisition of Aliança
|
1,860 | - | 1,860 | 1,860 | ||||||||||||
Acquisition of Cosan CL
|
1,522,458 | (134,396 | ) | 1,388,062 | 1,378,696 | |||||||||||
Acquisition of Teaçu
|
73,668 | - | 73,668 | 69,145 | ||||||||||||
Formation of Curupay (Cosan Alimentos) (1)
|
92,380 | - | 92,380 | 102,952 | ||||||||||||
Acquisition of Açúcar União
|
74,832 | (57,371 | ) | 17,461 | 17,461 | |||||||||||
Acquisition of Destilaria Paraguaçu
|
166,656 | - | 166,656 | 166,656 | ||||||||||||
Subscription of shares of Nova América
|
121,893 | - | 121,893 | 121,893 | ||||||||||||
Purchase of shares of TEAS
|
7,301 | - | 7,301 | 7,301 | ||||||||||||
3,574,482,054 | (703,683 | ) | 2,870,799 | 2,867,482 | ||||||||||||
Other intangibles
|
||||||||||||||||
Software (amortization at the rate of 20% p. a.)
|
98,123 | (60,599 | ) | 37,524 | 29,251 | |||||||||||
Other
|
13,703 | (787 | ) | 12,916 | 4,575 | |||||||||||
111,826 | (61,386 | ) | 50,440 | 33,826 | ||||||||||||
3,686,308 | (765,069 | ) | 2,921,239 | 2,901,308 |
(1)
|
Reversal of goodwill due to the partial return of provision for losses, in the amount of R$10,572.
|
Parent company
|
Consolidated
|
|||||||||||||||
04/01/10 to
06/30/10
|
04/01/09 to
06/30/09
|
04/01/10 to
06/30/10
|
04/01/09 to
06/30/09
|
|||||||||||||
Opening balances
|
399,648 | 403,918 | 2,901,308 | 2,418,753 | ||||||||||||
Accretion to goodwill, net of offsets
|
- | 18,194 | 3,317 | 85,162 | ||||||||||||
Increase in software and other intangibles
|
1,860 | - | 3,404 | - | ||||||||||||
Accretion from acquisitions/mergers
|
- | - | - | 306,010 | ||||||||||||
Goodwill derived from disposals
|
- | - | - | (85,589 | ) | |||||||||||
Transfers of property, plant and equipment
|
- | - | 15,889 | - | ||||||||||||
Amortization of software and other intangibles
|
(2,332 | ) | (2,234 | ) | (7,946 | ) | - | |||||||||
Others
|
224 | 3,888 | 5,267 | - | ||||||||||||
Closing balances
|
399,400 | 423,766 | 2,921,239,811 | 2,724,336 |
11.
|
Taxes and social contributions payable
|
Parent company
|
Consolidated
|
|||||||||||||||
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
|||||||||||||
ICMS
|
952 | 8,865 | 37,938 | 49,197 | ||||||||||||
IPI
|
349 | 886 | 15,419 | 6,379 | ||||||||||||
INSS
|
6,943 | 6,933 | 24,011 | 23,891 | ||||||||||||
PIS
|
71 | 1,120 | 4,678 | 8,129 | ||||||||||||
COFINS
|
324 | 5,153 | 21,772 | 32,076 | ||||||||||||
Installment payments – Refis IV
|
98,313 | 97,703 | 662,653 | 665,470 | ||||||||||||
Income and social contribution taxes payable
|
- | - | 6,005 | 2,597 | ||||||||||||
Other
|
11,737 | 9,618 | 22,736 | 21,628 | ||||||||||||
118,689 | 130,278 | 795,212 | 809,367 | |||||||||||||
Current liabilities
|
(30,886 | ) | (42,633 | ) | (197,350 | ) | (215,862 | ) | ||||||||
Noncurrent liabilities
|
87,803 | 87,645 | 597,862 | 593,505 |
Parent company
|
Consolidated
|
|||||||||||||||
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
|||||||||||||
13 to 24 months
|
12,070 | 11,732 | 64,113 | 60,349 | ||||||||||||
25 to 36 months
|
8,596 | 9,326 | 60,289 | 57,933 | ||||||||||||
37 to 48 months
|
6,411 | 6,525 | 54,702 | 54,991 | ||||||||||||
49 to 60 months
|
6,389 | 6,169 | 54,635 | 51,241 | ||||||||||||
61 to 72 months
|
6,063 | 6,043 | 53,842 | 51,026 | ||||||||||||
73 to 84 months
|
5,736 | 5,521 | 45,126 | 44,303 | ||||||||||||
85 to 96 months
|
5,736 | 5,521 | 41,604 | 38,911 | ||||||||||||
As from 97 months
|
36,802 | 36,808 | 223,551 | 234,751 | ||||||||||||
87,803 | 87,645 | 597,862 | 593,505 |
12.
|
Income and social contribution taxes
|
|
a)
|
Reconciliation of income and social contribution tax income (expenses):
|
Parent company
|
Consolidated
|
|||||||||||||||
04/01/010 to
06/30/10
|
04/01/09 to
06/30/09
|
04/01/010 to
06/30/10
|
04/01/09 to
06/30/09
|
|||||||||||||
Operating profit (loss) before income tax and social security contribution
|
(13,791 | ) | 450,588 | 29,128 | 485,604 | |||||||||||
Income tax and social security contribution at nominal rate (34%)
|
4,689 | (153,200 | ) | (9,904 | ) | (165,105 | ) | |||||||||
Adjustments made for determining the effective rate:
|
||||||||||||||||
Equity pickup
|
18,521 | 37,057 | (119 | ) | (1,208 | ) | ||||||||||
Amortization of non-deductible goodwill
|
4,992 | - | 11,653 | |||||||||||||
Non-deductible donations and contributions
|
(422 | ) | (388 | ) | (1,464 | ) | (489 | ) | ||||||||
Recognized granted options
|
(173 | ) | (1,183 | ) | (173 | ) | (1,183 | ) | ||||||||
Claims related to income tax
|
- | - | (2,248 | ) | - | |||||||||||
Others
|
(105 | ) | (597 | ) | (4,599 | ) | (1,567 | ) | ||||||||
Total of deferred and current taxes
|
22,510 | (113,319 | ) | (18,507 | ) | (157,899 | ) | |||||||||
Effective rate
|
- | 25.15 | % | 63.54 | % | 32.52 | % |
|
b)
|
Deferred income and social contribution tax assets:
|
Parent company
|
||||||||||||||||||||
06/30/10
|
03/31/10
|
|||||||||||||||||||
Base
|
IRPJ 25%
|
CSSL 9%
|
Total
|
Total
|
||||||||||||||||
Provisions for court judgments and other interim differences
|
148,029 | 37,007 | 13,323 | 50,330 | 50,183 | |||||||||||||||
Tax losses
|
299,906 | 74,976 | - | 74,976 | 82,878 | |||||||||||||||
Social security contribution negative basis
|
300,007 | - | 27,001 | 27,001 | 29,845 | |||||||||||||||
111,983 | 40,324 | 152,307 | 162,906 | |||||||||||||||||
Exchange variation
|
(421,828 | ) | (105,457 | ) | (37,964 | ) | (143,421 | ) | (152,320 | ) | ||||||||||
Tax implications of Law No. 11,638/07
|
(91,491 | ) | (22,873 | ) | (8,234 | ) | (31,107 | ) | (48,997 | ) | ||||||||||
Goodwill
|
(68,629 | ) | (17,157 | ) | (6,177 | ) | (23,334 | ) | (19,380 | ) | ||||||||||
(145,487 | ) | (52,375 | ) | (197,862 | ) | (220,697 | ) | |||||||||||||
Total deferred taxes
|
(33,504 | ) | (12,051 | ) | (45,555 | ) | (57,791 | ) | ||||||||||||
Current assets
|
12,695 | 12,680 | ||||||||||||||||||
Non-current assets
|
139,612 | 150,226 | ||||||||||||||||||
Non-current liabilities
|
(197,862 | ) | (220,697 | ) |
Consolidated
|
||||||||||||||||||||
06/30/10
|
03/31/10
|
|||||||||||||||||||
Base
|
IRPJ 25%
|
CSSL 9%
|
Total
|
Total
|
||||||||||||||||
Provisions for court judgments and other interim differences
|
986,238 | 246,560 | 88,761 | 335,321 | 339,689 | |||||||||||||||
Tax losses
|
822,432 | 205,608 | - | 205,608 | 217,360 | |||||||||||||||
Social security contribution negative basis
|
834,729 | - | 75,126 | 75,126 | 79,375 | |||||||||||||||
452,168 | 163,887 | 616,055 | 636,424 | |||||||||||||||||
Exchange variation
|
(511,825 | ) | (127,955 | ) | (46,064 | ) | (174,019 | ) | (183,449 | ) | ||||||||||
Tax implications of Law No. 11,638/07
|
(91,491 | ) | (22,874 | ) | (8,234 | ) | (31,108 | ) | (48,998 | ) | ||||||||||
Goodwill
|
(400,491 | ) | (100,123 | ) | (36,044 | ) | (136,167 | ) | (114,152 | ) | ||||||||||
(250,952 | ) | (90,342 | ) | (341,294 | ) | (346,599 | ) | |||||||||||||
Total deferred taxes
|
201,216 | 73,545 | 274,761 | 289,825 | ||||||||||||||||
Current assets
|
94,581 | 76,310 | ||||||||||||||||||
Non-current assets
|
521,474 | 560,114 | ||||||||||||||||||
Non-current liabilities
|
(341,294 | ) | (346,599 | ) |
12.
|
Income and social contribution taxes (Continued)
|
|
b)
|
Deferred income and social contribution tax assets--Continuação
|
Assets
|
||||||||||||||||
Parent company
|
Consolidated
|
|||||||||||||||
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
|||||||||||||
2012
|
10,636 | 10,622 | 97,840 | 84,818 | ||||||||||||
2013
|
16,424 | 16,409 | 97,479 | 93,328 | ||||||||||||
2014
|
16,355 | 16,340 | 76,804 | 68,303 | ||||||||||||
2015 to 2017
|
81,098 | 84,688 | 188,452 | 194,445 | ||||||||||||
2018 to 2019
|
15,099 | 22,167 | 60,899 | 119,220 | ||||||||||||
139,612 | 150,226 | 521,474 | 560,114 |
Liabilities
|
||||||||||||||||
Parent company
|
Consolidated
|
|||||||||||||||
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
|||||||||||||
2012
|
17,453 | 20,132 | 23,573 | 23,245 | ||||||||||||
2013
|
17,453 | 20,132 | 23,573 | 23,245 | ||||||||||||
2014
|
17,453 | 20,132 | 23,573 | 23,245 | ||||||||||||
2015 to 2017
|
52,359 | 60,394 | 123,495 | 69,733 | ||||||||||||
2018 to 2019
|
93,144 | 99,907 | 147,080 | 207,131 | ||||||||||||
197,862 | 220,697 | 341,294 | 346,599 |
13.
|
Loans and financing
|
Financial charges (1)
|
Parent company
|
Consolidated
|
Guarantees (2)
|
|||||||||||||||||||
Description
|
Index
|
Annual average interest rate
|
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
Final maturity
|
06/30/10
|
03/31/10
|
|||||||||||||
Senior Notes Due 2014
|
Dollar (US)
|
Interest of 9.5%
|
-
|
-
|
653,653
|
631,246
|
August/2014
|
-
|
-
|
|||||||||||||
Senior Notes Due 2017
|
Dollar (US)
|
Interest of 7.0%
|
-
|
-
|
741,477
|
720,573
|
February/2017
|
-
|
-
|
|||||||||||||
BNDES (3)
|
URTJLP
|
Interest of 3.1%
|
-
|
-
|
1,336,207
|
1,057,775
|
October/2025
March/2018
April/2018
April/2015
November/2012
January/2013
October/2012
|
Credit rights from electric energy sale agreements
|
Credit rights from electric energy sale agreements
|
|||||||||||||
Bank credit certificate
|
CDI
|
Interest of 0.6%
|
-
|
-
|
60,146
|
61,444
|
December/2011
|
Conditional sale
|
-
|
|||||||||||||
ACC
|
Dollar (US)
|
Interest of 1.9%
|
184,184
|
296,375
|
184,184
|
296,375
|
March/2011
|
-
|
-
|
|||||||||||||
Bonuses in perpetuity
|
Dollar (US)
|
Interest of 8.3%
|
820,229
|
810,896
|
820,229
|
810,896
|
-
|
-
|
-
|
|||||||||||||
Resolution 2471
|
IGP-M
Fixed
|
Interest of 4.0%
Interest of 3.0%
|
102,920
121
|
99,493
121
|
625,082
121
|
603,504
121
|
December/2020
October/2025
|
Treasury certificates and mortgaged lands
|
Treasury certificates and mortgaged lands
|
|||||||||||||
Prepayments
|
Dollar (US)
+ Libor
|
Interest of 6.3%
|
453,166
|
537,390
|
899,110
|
980,533
|
September/2014
|
-
|
-
|
|||||||||||||
Credit note
|
123.4% CDI
Dollar (US)
|
-
Interest of 6.2%
|
304,849
182,089
|
311,916
182,831
|
304,849
182,089
|
378,748
182,830
|
October/2012
|
-
|
-
|
|||||||||||||
Finame
|
Fixed
URTJLP
Dollar (US)
|
Interest of 4.9%
Interest of 4.0%
Interest of 7.6%
|
45,069
19,044
-
|
225
20,162
-
|
253,531
89,374
77
|
106,255
94,775
84
|
January/2022
March/2018
November/2012
|
Statutory lien on purchased assets
|
Statutory lien on purchased assets
|
|||||||||||||
Other
|
Sundry
|
Sundry
|
-
|
-
|
73,194
|
56,286
|
Sundry
|
Mortgage, inventories and statutory lien on purchased assets
|
Mortgage, inventories and statutory lien on purchased assets
|
|||||||||||||
Expenses incurred with security placement
|
(15,582
|
) |
(18,488
|
) |
(40,335
|
) |
(44,014
|
) |
-
|
-
|
-
|
|||||||||||
2,096,089
|
2,240,921
|
6,182,988
|
5,937,431
|
|||||||||||||||||||
Current
|
(465,333
|
) |
(500,142
|
) |
(860,304
|
) |
(800,902
|
) | ||||||||||||||
Non-current
|
1,630,756
|
1,740,779
|
5,322,684
|
5,136,529
|
(1)
|
Financial charges as of June 30, 2010, except as indicated otherwise;
|
(2)
|
All loans and financings are secured by promissory notes and sureties posted by the Company, its subsidiaries and controlling shareholders, in addition to the collateral described above; and
|
(3)
|
These correspond to funds secured by direct and indirect subsidiaries, Cosan S.A. Bioenergia, Barra Bioenergia S.A. and Cosan Centroeste S.A. Açúcar e Álcool, for the purpose of financing cogeneration and greenfield projects.
|
13.
|
Loans and financing (Continued)
|
Parent company
|
Consolidated
|
|||||||||||||||
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
|||||||||||||
13 to 24 months
|
347,528 | 333,679 | 667,403 | 612,101 | ||||||||||||
25 to 36 months
|
358,718 | 510,570 | 657,849 | 748,966 | ||||||||||||
37 to 48 months
|
7,921 | 33 | 767,603 | 235,191 | ||||||||||||
49 to 60 months
|
5,005 | 26 | 379,000 | 849,737 | ||||||||||||
61 to 72 months
|
8 | 8 | 150,325 | 113,057 | ||||||||||||
73 to 84 months
|
8 | 8 | 870,053 | 825,623 | ||||||||||||
85 to 96 months
|
18,013 | 8 | 178,415 | 109,472 | ||||||||||||
As from 97 months
|
893,555 | 896,447 | 1,652,036 | 1,642,382 | ||||||||||||
1,630,756 | 1,740,779 | 5,322,684 | 5,136,529 |
13.
|
Loans and financing (Continued)
|
13.
|
Loans and financing (Continued)
|
14.
|
Provision for judicial demands
|
Parent company
|
Consolidated
|
|||||||||||||||
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
|||||||||||||
Tax issues
|
40,823 | 40,144 | 403,538 | 397,051 | ||||||||||||
Civil and labor
|
39,725 | 37,044 | 221,415 | 214,932 | ||||||||||||
80,548 | 77,188 | 624,953 | 611,983 | |||||||||||||
Court deposits
|
(6,085 | ) | (5,632 | ) | (168,870 | ) | (167,562 | ) | ||||||||
74,463 | 71,556 | 456,083 | 444,421 |
Parent company
|
Consolidated
|
|||||||||||||||
04/01/10 to
06/30/10
|
04/01/09 to
06/30/09
|
04/01/10 to
06/30/10
|
04/01/09 to
06/30/09
|
|||||||||||||
Opening balances
|
71,556 | 236,633 | 444,421 | 1,105,899 | ||||||||||||
Formation, net
|
3,488 | 592 | 10,656 | 2,890 | ||||||||||||
Inflation adjustment
|
(131 | ) | 3,686 | 2,972 | 12,699 | |||||||||||
Accretion from acquisitions, net of write-offs
|
- | - | - | 16,331 | ||||||||||||
Others
|
(450 | ) | (1,011 | ) | (1,966 | ) | (2,359 | ) | ||||||||
74,463 | 239,900 | 456,083 | 1,135,460 |
14.
|
Provision for judicial demands (Continued)
|
Parent company
|
Consolidated
|
|||||||||||||||
Description
|
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
||||||||||||
IPI (i)
|
6,345 | 6,290 | 8,442 | 8,357 | ||||||||||||
IPC – 89 (ii)
|
- | - | 87,772 | 86,503 | ||||||||||||
Finsocial offsetting (iii)
|
- | - | 175,339 | 172,960 | ||||||||||||
ICMS credits
|
16,937 | 16,553 | 66,979 | 60,240 | ||||||||||||
PIS and Cofins
|
4,352 | 4,297 | 21,467 | 21,212 | ||||||||||||
IRPJ and CSLL
|
797 | 789 | 797 | 789 | ||||||||||||
Others
|
12,392 | 12,215 | 42,742 | 46,990 | ||||||||||||
40,823 | 40,144 | 403,538 | 397,051 |
(i)
|
During the year ended March 31, 2010, the Company and its direct and indirect subsidiaries Cosan Alimentos, Cosan Açúcar e Álcool, Bonfim Nova Tamoio – BNT Agrícola Ltda., Benalcool Açúcar e Álcool S.A. and Administração de Participações Aguassanta Ltda. opted for the payment in installments of Refis IV, related to ongoing legal demands involving undue use of IPI credit premium and other federal taxes. In addition, the Company and its subsidiaries utilize accumulated tax losses to pay these demands and the fines and interest thereof. Subsequently, the claims related to the remaining credit premium - IPI were fully paid for in installments, as well as installments of other federal taxes, which were recorded under taxes and contributions payable.
|
(ii)
|
In 1993 subsidiary Cosan CL filed a suit to challenge the balance sheet restatement index (IPC) established by the federal government in 1989, which index did not reflect the actual inflation back then. The use of this index caused the Company to supposedly overstate and overpay the IRPJ and CSLL. Cosan CL obtained a favorable preliminary order that allowed it to recalculate the balance sheet restatement, now using indexes that accurately measured the inflation over the relevant period. In doing so the company rectified the amounts of IRPJ and CSLL payable. Identified overpayments for both taxes were offset in subsequent years until 1997, when the balance was zeroed. Despite the favorable court rulings, tax authorities issued a notice of infringement to the Company challenging all tax offsets performed in 1993 and some offsets in 1994 and 1997. Given the contingent nature of this tax offsetting, associated amounts were also recorded as a provision for court rulings and have been restated against the variation of the SELIC rate.
|
(iii)
|
From June through December 1994, subsidiary Conan CL offset COFINS and several other taxes with previously paid amounts of FINSOCIAL. This offsetting was backed in a preliminary order issued by a court of competent jurisdiction in a suit brought to challenge the constitutionality of FINSOCIAL.
|
14.
|
Provision for judicial demands (Continued)
|
Parent company
|
Consolidated
|
|||||||||||||||
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
|||||||||||||
Notice of infringement – Income tax withheld at source (i)
|
185,062 | 182,824 | 186,597 | 182,824 | ||||||||||||
ICMS – State VAT (ii)
|
42,579 | 33,550 | 337,704 | 322,340 | ||||||||||||
IPI – Federal VAT (iii)
|
10,681 | 10,617 | 265,310 | 263,597 | ||||||||||||
Offsets against IPI credits – IN 67/98 (iv)
|
- | - | 165,549 | 174,867 | ||||||||||||
PIS and COFINS
|
12,246 | 12,078 | 145,142 | 143,556 | ||||||||||||
Civil and labor (v)
|
77,983 | 74,695 | 502,407 | 490,493 | ||||||||||||
Others
|
42,571 | 33,636 | 137,842 | 124,389 | ||||||||||||
371,122 | 347,400 | 1,740,550 | 1,702,066 |
(i)
|
Notice of infringement – Income tax withheld at source
|
14.
|
Provision for judicial demands (Continued)
|
(ii)
|
ICMS - Tax on the Circulation of Goods and Transportation Services
|
|
This refers essentially to (a) a notice of infringement served on account of an alleged failure to pay ICMS and perform ancillary duties relative to agricultural partnership operations and processing activities outsourced to Central Paulista Açúcar e Álcool Ltda., from May through December 2006, and May through December 2007; (b) ICMS levied on granulated sugar exports which were deemed semi-processed commodities by the tax agent in charge of this assessment, and as such subject to be levied by the ICMS pursuant to the applicable regulation.
|
|
(iii) IPI - Excise Tax on Manufactured Goods
|
|
Normative Instruction SRF No. 67/98 validated a procedure whereby manufacturing plants sold several types of cane sugar, including demerara, higher refined, special refined, special extra refined and granulated refined sugars, without assessing and paying IPI from July 6, 1995 through November 16, 1997, as well as amorphous refined sugar sales from January 14, 1992 through November 16, 1997. This instruction was applied to the relevant proceedings initiated by the Federal Revenue Service, which are deemed as possible losses in the opinion of the Company's legal counsels.
|
|
(iv) Offsets against IPI credits – IN 67/98
|
|
Normative Instruction SRF No. 67/98 made it possible to obtain refund of IPI tax payments for sales of refined amorphous sugar from January 14, 1992 through November 16, 1997. In view of this rule, Cosan Açúcar and Álcool applied for offsetting amounts paid during the relevant periods against other tax liabilities of its own. However, the Federal Revenue Service denied its application for both reimbursement and offsetting of such amounts. Cosan Açúcar and Álcool challenged this ruling in an administrative proceeding.
|
|
Upon being notified to pay tax debts resulting from offset transactions in light of certain changes introduced by IN SRF No. 210/02, subsidiary Cosan Açúcar and Álcool filed a writ of mandamus and applied for a preliminary injunction seeking to stay enforceability of offset taxes, in an attempt to prevent the tax authorities from demanding the relevant tax debts in court. The preliminary injunction was granted by the competent court. The legal counsel in charge of this suit has deemed it a probable loss.
|
|
(v) Civil and labor
|
15.
|
Accounts receivable from federal government
|
|
On February 28, 2007, subsidiary Cosan Açúcar e Álcool recognized gain of R$318,358, corresponding to a lawsuit filed against federal government claiming indemnification for damages since prices of its products, at the time the sector was subject to government control, were imposed not observing the prevailing reality of the sector created by government control itself. A final decision in favor of the subsidiary was handed down. The gain was recorded in the statement of operations for the year, the contra entry being to noncurrent assets of the Company, in receivables from federal government.
|
16.
|
Shareholders’ equity
|
|
a)
|
Capital
|
|
b)
|
Dividends
|
16.
|
Shareholders’ equity (Continued)
|
|
c)
|
Treasury shares
|
17.
|
Management compensation
|
18.
|
Financial, net
|
Parent company
|
Consolidated
|
|||||||||||||||
04/01/10 to
06/30/10
|
04/01/09 to
06/30/09
|
04/01/10 to
06/30/10
|
04/01/09 to
06/30/09
|
|||||||||||||
Financial expenses
|
||||||||||||||||
Interest
|
(66,799 | ) | (93,114 | ) | (149,863 | ) | (133,144 | ) | ||||||||
Inflation adjustment expense
|
(2,821 | ) | 333 | (17,653 | ) | (4,964 | ) | |||||||||
Bank expenses
|
(46 | ) | (148 | ) | (648 | ) | (904 | ) | ||||||||
(69,666 | ) | (92,929 | ) | (168,164 | ) | (139,012 | ) | |||||||||
Financial revenues
|
||||||||||||||||
Interest
|
7,773 | 6,078 | 26,958 | 19,769 | ||||||||||||
Inflation adjustment income
|
895 | (88 | ) | 8,125 | 2,139 | |||||||||||
Income from money market investments
|
2,251 | 4,199 | 17,966 | 10,612 | ||||||||||||
Discounts earned
|
10 | 255 | 211 | 571 | ||||||||||||
10,929 | 10,444 | 53,260 | 33,091 | |||||||||||||
Exchange variation
|
||||||||||||||||
Exchange losses (1)
|
(23,826 | ) | 352,778 | (41,662 | ) | 355,794 | ||||||||||
Exchange gains (1)
|
1,862 | (24,807 | ) | 9,436 | 22,743 | |||||||||||
(21,964 | ) | 327,971 | (32,226 | ) | 378,537 | |||||||||||
Net impact of derivatives (2)
|
||||||||||||||||
Commodity derivatives
|
(9,323 | ) | (108,882 | ) | 13,377 | (125,515 | ) | |||||||||
Exchange and interest derivatives
|
(13,813 | ) | 206,705 | (5,587 | ) | 286,332 | ||||||||||
(23,136 | ) | 97,823 | 7,790 | 160,817 | ||||||||||||
(103,837 | ) | 343,309 | (139,340 | ) | 433,433 |
19.
|
Other operating revenues (expenses), net
|
Parent company
|
Consolidated
|
|||||||||||||||
04/01/10 to
06/30/10
|
04/01/09 to
06/30/09
|
04/01/10 to
06/30/10
|
04/01/09 to
06/30/09
|
|||||||||||||
Capital gains from disposal of equity interests, net of losses
|
- | - | - | 93,097 | ||||||||||||
Losses from business combinations
|
- | - | - | (28,138 | ) | |||||||||||
Constitution of provision for judicial demands
|
(3,488 | ) | (592 | ) | (10,656 | ) | (2,890 | ) | ||||||||
Gain with port transactions
|
28 | 1,676 | 4,404 | 5,648 | ||||||||||||
Other revenues (expenses), net
|
(1,157 | ) | 1,939 | 3,923 | 4,767 | |||||||||||
(4,617 | ) | 3,615 | (2,329 | ) | 72,484 |
20.
|
Financial instruments
|
20.
|
Financial instruments (Continued)
|
a)
|
Risk management (Continued)
|
Parent company y | Consolidated | |||||||||||||||||||||||||||||||
Reference value (R$ thousand)
|
Fair value (R$ thousand)
|
Reference value (R$ thousand)
|
Fair value (R$ thousand)
|
|||||||||||||||||||||||||||||
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
06/30/10
|
03/31/10
|
|||||||||||||||||||||||||
Price risk
|
||||||||||||||||||||||||||||||||
Good derivatives
|
||||||||||||||||||||||||||||||||
Futures contracts
|
1,097,468 | 1,177,437 | 47,734 | 112,382 | 1,097,468 | 1,177,437 | 47,734 | 112,382 | ||||||||||||||||||||||||
Options contracts
|
40,372 | 1,074,579 | (3,298 | ) | (11,730 | ) | 40,372 | 1,074,579 | (3,298 | ) | (11,730 | ) | ||||||||||||||||||||
Swap contracts
|
- | 100,794 | - | 1,081 | - | 100,794 | - | 1,081 | ||||||||||||||||||||||||
44,436 | 101,733 | 44,436 | 101,733 | |||||||||||||||||||||||||||||
Exchange rate risk
|
||||||||||||||||||||||||||||||||
Exchange rate derivatives
|
||||||||||||||||||||||||||||||||
Futures contracts
|
571,660 | 2,103,056 | 2,768 | 471 | 571,660 | 2,103,056 | 2,768 | 471 | ||||||||||||||||||||||||
Term contracts
|
1,235,111 | 957,149 | 50,259 | 36,559 | 1.235,111 | 957,149 | 50,259 | 36,559 | ||||||||||||||||||||||||
Options contracts
|
934,502 | 671,502 | 11,102 | 15,719 | 934,502 | 671,502 | 11,102 | 15,719 | ||||||||||||||||||||||||
Swap contracts
|
322,023 | 322,023 | 4,260 | 7,463 | 322,023 | 322,023 | - | - | ||||||||||||||||||||||||
68,389 | 60,212 | 64,129 | 52,749 | |||||||||||||||||||||||||||||
Interest rate risk
|
||||||||||||||||||||||||||||||||
Interest derivatives
|
518,790 | 518,790 | (1,495 | ) | (624 | ) | 518,790 | 518,790 | (1,495 | ) | (624 | ) | ||||||||||||||||||||
(1,495 | ) | (624 | ) | (1,495 | ) | (624 | ) | |||||||||||||||||||||||||
TOTAL
|
111,330 | 161,321 | 107,070 | 153,858 | ||||||||||||||||||||||||||||
Total assets
|
148,767 | 238,024 | 144,507 | 230.561 | ||||||||||||||||||||||||||||
Total liabilities
|
(37,437 | ) | (76,703 | ) | (37,437 | ) | (76.703 | ) |
20.
|
Financial instruments (Continued)
|
b)
|
Price risk
|
20.
|
Financial instruments (Continued)
|
b)
|
Price risk (Continued)
|
Risk price : good derivatives outstanding on June 30, 2010 | ||||||||||||||||
Derivatives
|
Purchased / sold
|
Market
|
Agreement
|
Maturity date |
Reference
value
|
Fair value
|
||||||||||
(R$ thousand)
|
(R$ thousand)
|
|||||||||||||||
Balance of derivative financial instruments allocated for hedge accounting purposes
|
||||||||||||||||
Swap
|
Sold
|
OTC
|
#11 |
Sep/10
|
163,446 | 29,901 | ||||||||||
Futures
|
Sold
|
NYBOT
|
#11 |
Sep/10
|
149,198 | 12,717 | ||||||||||
Futures
|
Sold
|
NYBOT
|
#11 |
Feb/11
|
123,141 | 4,019 | ||||||||||
Futures
|
Sold
|
NYBOT
|
#11 |
Apr/11
|
41,602 | 4,144 | ||||||||||
Futures
|
Sold
|
NYBOT
|
#11 |
Jun/11
|
155,670 | 3,864 | ||||||||||
Futures
|
Sold
|
NYBOT
|
#11 |
Sep/11
|
94,189 | 40 | ||||||||||
54,685 | ||||||||||||||||
Balance of derivative financial instruments not allocated for hedge accounting purposes
|
||||||||||||||||
Futures
|
Sold
|
LIFFE
|
White Sugar
|
Jul/10
|
25.915 | (2,807 | ) | |||||||||
Futures
|
Sold
|
LIFFE
|
White Sugar
|
Sep/10
|
19.568 | 1,180 | ||||||||||
Futures
|
Sold
|
NYBOT
|
#11 |
Sep/10
|
161.012 | 18,397 | ||||||||||
16,769 | ||||||||||||||||
Futures
|
Purchased
|
NYBOT
|
#11 |
Sep/10
|
(7.612 | ) | 133 | |||||||||
Futures
|
Purchased
|
NYBOT
|
#11 |
Feb/11
|
(145.014 | ) | (23,686 | ) | ||||||||
Futures
|
Purchased
|
NYBOT
|
#11 |
Apr/11
|
(3.477 | ) | (143 | ) | ||||||||
Futures
|
Purchased
|
NYBOT
|
#11 |
Jun/11
|
(3.371 | ) | (158 | ) | ||||||||
(23,854 | ) | |||||||||||||||
Futures
|
Purchased
|
NYMEX
|
HO
|
Jul/10
|
(4.254 | ) | 133 | |||||||||
133 | ||||||||||||||||
Call
|
Purchased
|
OTC
|
#11 |
Sep/10
|
(4.193 | ) | 139 | |||||||||
Call
|
Purchased
|
OTC
|
#11 |
Sep/10
|
(4.432 | ) | ||||||||||
139 | ||||||||||||||||
278 | ||||||||||||||||
Call
|
Sold
|
NYBOT/OTC
|
#11 |
Sep/10
|
7.716 | (1,129 | ) | |||||||||
Call
|
Sold
|
NYBOT/OTC
|
#11 |
Sep/10
|
6.726 | (792 | ) | |||||||||
Call
|
Sold
|
NYBOT/OTC
|
#11 |
Feb/11
|
5.444 | (1,318 | ) | |||||||||
Call
|
Sold
|
NYBOT
|
#11 |
Feb/11
|
812 | (248 | ) | |||||||||
Call
|
Sold
|
NYBOT
|
#11 |
Feb/11
|
289 | (89 | ) | |||||||||
(3,577 | ) | |||||||||||||||
Put
|
Purchased
|
NYBOT/OTC
|
#11 |
Set/10
|
6.771 | 5,086 | ||||||||||
Put
|
Purchased
|
NYBOT/OTC
|
#11 |
Set/10
|
2.364 | 1,900 | ||||||||||
6,986 | ||||||||||||||||
Put
|
Sold
|
NYBOT/OTC
|
#11 |
Set/10
|
(1.475 | ) | (5,086 | ) | ||||||||
Put
|
Sold
|
NYBOT/OTC
|
#11 |
Set/10
|
(148 | ) | (1,900 | ) | ||||||||
(6,986 | ) | |||||||||||||||
Total goods
|
44,435 |
20.
|
Financial instruments (Continued)
|
c)
|
Foreign exchange risk
|
20.
|
Financial instruments (Continued)
|
|
c)
|
Foreign exchange risk (Continued)
|
Foreign exchange rate risk : foreign exchange derivatives on June 30, 2010 | ||||||||||||||||
Derivatives
|
Purchased / Sold
|
Market
|
Contract
|
Term
|
Reference
value
|
Fair value
|
||||||||||
(R$ thousand)
|
(R$ thousand)
|
|||||||||||||||
Balance of derivative financial instruments allocated for hedge accounting purposes
|
||||||||||||||||
Term
|
Sold
|
OTC/Cetip
|
NDF
|
Jul/10
|
96,800 | 6,250 | ||||||||||
Term
|
Sold
|
OTC/Cetip
|
NDF
|
Aug/10
|
143,738 | 6,829 | ||||||||||
Term
|
Sold
|
OTC/Cetip
|
NDF
|
Sep/10
|
10,160 | 949 | ||||||||||
Term
|
Sold
|
OTC/Cetip
|
NDF
|
Sep/10
|
46,184 | 3,808 | ||||||||||
Term
|
Sold
|
OTC/Cetip
|
NDF
|
Oct/10
|
147,454 | 10,526 | ||||||||||
Term
|
Sold
|
OTC/Cetip
|
NDF
|
Dec/10
|
95,625 | 2,297 | ||||||||||
Term
|
Sold
|
OTC/Cetip
|
NDF
|
Jan/11
|
89,460 | 4,510 | ||||||||||
Term
|
Sold
|
OTC/Cetip
|
NDF
|
May/11
|
141,281 | 4,087 | ||||||||||
Term
|
Sold
|
OTC/Cetip
|
NDF
|
Jul/11
|
99,300 | 733 | ||||||||||
Term
|
Sold
|
OTC/Cetip
|
NDF
|
Aug/11
|
103,750 | 4,002 | ||||||||||
Term
|
Sold
|
OTC/Cetip
|
NDF
|
Oct/11
|
261,360 | 6,268 | ||||||||||
50,259 | ||||||||||||||||
Balance of derivative financial instruments not allocated for hedge accounting purposes
|
||||||||||||||||
Futures
|
Sold
|
BMFBovespa
|
Commercial dollar
|
Aug/10
|
275,412 | 1,032 | ||||||||||
Futures
|
Sold
|
BMFBovespa
|
Commercial dollar
|
Dec/10
|
129,182 | 795 | ||||||||||
Futures
|
Sold
|
BMFBovespa
|
Commercial dollar
|
Jul/11
|
340,953 | 2,121 | ||||||||||
Futures
|
Sold
|
BMFBovespa
|
Commercial dollar
|
Aug/11
|
78,520 | 486 | ||||||||||
Futures
|
Sold
|
BMFBovespa
|
Euro
|
Jul/10
|
15,213 | (7 | ) | |||||||||
4,427 | ||||||||||||||||
Futures
|
Purchased
|
BMFBovespa
|
Commercial dollar
|
Dec/10
|
(92,273 | ) | (568 | ) | ||||||||
Futures
|
Purchased
|
BMFBovespa
|
Commercial dollar
|
Jul/11
|
(175,347 | ) | (1,091 | ) | ||||||||
(1,659 | ) | |||||||||||||||
Put Onshore
|
Purchased
|
BMFBovespa
|
Commercial dollar
|
Oct/10
|
875,000 | 9,716 | ||||||||||
Put Offshore
|
Purchased
|
OTC
|
Commercial dollar
|
Feb/11
|
42,782 | 763 | ||||||||||
Put Offshore
|
Purchased
|
OTC
|
Commercial dollar
|
Feb/11
|
16,720 | 623 | ||||||||||
11,102 | ||||||||||||||||
Total export foreign exchange transactions
|
64,130 | |||||||||||||||
Swap
|
Purchased
|
OTC/Cetip
|
Dollar/DI
|
322.023 | 4,260 | |||||||||||
Swap
|
Sold
|
OTC/Cetip
|
Dollar/DI
|
(322.023 | ) | (4,260 | ) | |||||||||
Total foreign exchange transactions
|
64,130 |
20.
|
Financial instruments (Continued)
|
c)
|
Foreign exchange risk (Continued)
|
Consolidated
|
||||||||||||||||
06/30/10
|
03/31/10
|
|||||||||||||||
R$ |
US$ (in thousand)
|
R$ |
US$ (in thousand)
|
|||||||||||||
Amounts pending foreign exchange closing
|
44,868 | 24,906 | 127,755 | 71,732 | ||||||||||||
Overnight
|
50,900 | 28,254 | 50,470 | 28,338 | ||||||||||||
Trade notes receivable – foreign
|
127,370 | 70,702 | 148,655 | 83,467 | ||||||||||||
Senior Notes due in 2014
|
(653,653 | ) | (362,838 | ) | (631,246 | ) | (354,433 | ) | ||||||||
Senior Notes due in 2017
|
(741,477 | ) | (411,589 | ) | (720,573 | ) | (404,589 | ) | ||||||||
Perpetual bonds
|
(820,229 | ) | (455,303 | ) | (810,896 | ) | (455,304 | ) | ||||||||
Other foreign currency-denominated loans
|
(366,273 | ) | (203,316 | ) | (479,206 | ) | (269,066 | ) | ||||||||
Export pre payments
|
(899,110 | ) | (499,090 | ) | (980,533 | ) | (550,552 | ) | ||||||||
Restricted cash
|
51,274 | 28,462 | 44,972 | 25,251 | ||||||||||||
Foreign exchange exposure, net
|
(3,206,330 | ) | 1,779,812 | (3,250,602 | ) | (1,825,156 | ) |
|
d)
|
Hedge accounting effects
|
20.
|
Financial instruments (Continued)
|
d)
|
Hedge accounting effects (Continued)
|
Realizable year
|
|||||||||||||||||
Derivative
|
Market
|
Risk
|
2010/2011 | 2011/2012 |
Total
|
||||||||||||
Futures
|
OTC / NYBOT
|
#11 | 6.623 | 5.919 | 12.542 | ||||||||||||
NDF
|
OTC/Cetip
|
USD
|
5.819 | 11.855 | 17.674 | ||||||||||||
(-) Deferred tax
|
(4.230 | ) | (6.043 | ) | (10.273 | ) | |||||||||||
Total
|
8.212 | 11.731 | 19.943 |
Equity value adjustments
|
04/01/10 to
06/30/10
|
|||
Cash flow hedge
|
||||
Gains/(losses) for the period
|
||||
Futures contracts and commodities swap
|
11.560 | |||
Forward foreign exchange contracts (NDF)
|
17.675 | |||
Adjustments to reclassification of losses/(gains) included in the statement of
|
||||
income for the period (sales revenues)
|
982 | |||
Total effects in equity adjustments from cash flow
|
||||
hedge (before differed IR/CS)
|
30.216 | |||
Effects of differed IR/CS on the equity adjustments
|
(10.274 | ) | ||
19.943 |
20.
|
Financial instruments (Continued)
|
e)
|
Interest rate risk
|
Price risk : interest derivatives outstanding on June 30, 2010
|
||||||||||||||||||||||||||
Derivatives
|
Purchased / Sold
|
Market
|
Contract
|
Term
|
Number of
agreements
|
Strike
|
Average price
|
Fair value |
Notional
|
Notional
|
Fair value
|
|||||||||||||||
(thousand)
|
(R$ thousand)
|
(R$ thousand)
|
||||||||||||||||||||||||
Swap
|
Purchased
|
OTC/Cetip
|
Fix / Libor 3 Month
|
1 | - |
1.199% / Libor 3 Month
|
USD 300,000
|
518,790 | (1,495 | ) | ||||||||||||||||
518,790 | (1,495 | ) |
f)
|
Credit risk
|
20.
|
Financial instruments (Continued)
|
f)
|
Credit risk (Continued)
|
g)
|
Debt acceleration risk
|
h)
|
Market values
|
20.
|
Financial instruments (Continued)
|
i)
|
Sensitivity analysis
|
Effects on net income
|
|||||||||||||
Risk factor
|
Probable
scenario
|
Possible
scenario (25%)
|
Remote
scenario (50%)
|
||||||||||
Price risk
|
|||||||||||||
Goods derivatives
|
|||||||||||||
Futures contracts:
|
|||||||||||||
Sale commitments
|
Sugar price spike
|
71,454 | (215,516 | ) | (431,032 | ) | |||||||
Purchase commitments
|
Sugar price decline
|
(23,854 | ) | (44,440 | ) | (89,013 | ) | ||||||
Options:
|
|||||||||||||
Put
|
Sugar price spike
|
278 | (272 | ) | (278 | ) | |||||||
Call
|
Sugar price spike
|
(3,577 | ) | (15,103 | ) | (45,568 | ) | ||||||
Call - sold
|
Sugar price decline
|
6,986 | (4,957 | ) | (6,507 | ) | |||||||
Swap contracts
|
Sugar price decline
|
(6,986 | ) | (10,767 | ) | (25,414 | ) | ||||||
Exchange rate risk
|
|||||||||||||
Exchange rate derivatives
|
|||||||||||||
Futures contracts:
|
|||||||||||||
Sale commitments
|
R$/US$ exchange rate appreciation
|
4,427 | (208,440 | ) | (348,810 | ) | |||||||
Purchase commitments
|
R$/US$ exchange rate depreciation
|
(1,659 | ) | (66,635 | ) | (135,327 | ) | ||||||
Forward contract:
|
|||||||||||||
Sale commitments
|
R$/US$ exchange rate appreciation
|
50,259 | (295,116 | ) | (573,091 | ) | |||||||
Option:
|
|||||||||||||
Call - purchased
|
R$/US$ exchange rate appreciation
|
11,102 | (11,088 | ) | (11,102 | ) | |||||||
Interest rate risk
|
|||||||||||||
Interest derivatives
|
|||||||||||||
Swap contracts
|
Libor curve decline
|
(1,495 | ) | (1,522 | ) | (3,050 | ) |
21.
|
Insurance
|
22.
|
Stock option plan
|
22.
|
Stock option plan (Continued)
|
23.
|
Pension plan
|
23.
|
Pension plan (Continued)
|
24.
|
Information per segment (consolidated)
|
a)
|
Information per segment
|
24.
|
Information per segment (consolidated) (Continued)
|
a)
|
Information per segment (Continued)
|
June 30, 2010
|
||||||||||||||||||||
CAA
|
CCL
|
Rumo
|
Adjustments
and exclusions
|
Consolidated
|
||||||||||||||||
Balance sheet
|
||||||||||||||||||||
Property, plant and equipment
|
5,076,676 | 345,172 | 414,191 | - | 5,836,039 | |||||||||||||||
Intangible assets
|
1,441,150 | 1,406,421 | 73,668 | - | 2,921,239 | |||||||||||||||
Financial debt, net
|
(4,359,675 | ) | (402,847 | ) | (148,002 | ) | - | (4,910,524 | ) | |||||||||||
Other assets and liabilities, net
|
3,009,415 | 533,577 | (43,911 | ) | (2,157,185 | ) | 1,341,896 | |||||||||||||
Total assets (net of liabilities) allocated per segment (1)
|
5,167,566 | 1,882,323 | 295,946 | (2,157,185 | ) | 5,188,650 |
March 31, 2010
|
||||||||||||||||||||
CAA
|
CCL
|
Rumo
|
Adjustments
and exclusions
|
Consolidated
|
||||||||||||||||
Balance sheet
|
||||||||||||||||||||
Property, plant and equipment
|
4,910,863 | 356,170 | 294,032 | - | 5,561,065 | |||||||||||||||
Intangible assets
|
1,452,393 | 1,379,769 | 69,146 | - | 2,901,308 | |||||||||||||||
Financial debt, net
|
(4,113,669 | ) | (433,238 | ) | (106,501 | ) | - | (4,653,408 | ) | |||||||||||
Other assets and liabilities, net
|
2,872,831 | 544,460 | 14,405 | (2,083,080 | ) | 1,348,616 | ||||||||||||||
Total assets (net of liabilities) allocated per segment (1)
|
5,122,418 | 1,847,161 | 271,082 | (2,083,080 | ) | 5,157,581 |
(1)
|
Comprising shareholders’ equity and minority interest.
|
June 30, 2010
|
||||||||||||||||||||
CAA
|
CCL
|
Rumo
|
Adjustments
and exclusions
|
Consolidated
|
||||||||||||||||
Net income for the period (3 months)
|
||||||||||||||||||||
Net operational revenues
|
1,273,643 | 2,781,626 | 105,372 | (161,019 | ) | 3,999,622 | ||||||||||||||
Gross profit
|
263,533 | 205,849 | 32,928 | 4,253 | 506,563 | |||||||||||||||
Sales, general and administrative expenses
|
(193,144 | ) | (133,485 | ) | (8,035 | ) | (751 | ) | (335,415 | ) | ||||||||||
Operational results (2)
|
70,389 | 72,364 | 24,893 | 3,502 | 171,148 | |||||||||||||||
Other operational revenues (expenses), net
|
(2,278 | ) | (4,480 | ) | 7,544 | (3,115 | ) | (2,329 | ) | |||||||||||
Other selected information
|
||||||||||||||||||||
Additions to property, plant and equipment and intangible assets
|
461,622 | 14,850 | 123,932 | - | 600,404 | |||||||||||||||
Depreciation and amortization
|
169,169 | 16,249 | 3,773 | - | 189,191 |
24.
|
Information per segment (consolidated) (Continued)
|
a)
|
Information per segment (Continued)
|
June 30, 2009
|
||||||||||||||||||||
CAA
|
CCL
|
Rumo
|
Adjustments
and exclusions
|
Consolidated
|
||||||||||||||||
Net income for the period (3 months)
|
||||||||||||||||||||
Net operational revenues
|
1,205,209 | 2,444,717 | 39,255 | (123,078 | ) | 3,566,103 | ||||||||||||||
Gross profit
|
171,930 | 186,975 | 12,885 | (4,105 | ) | 367,685 | ||||||||||||||
Sales, general and administrative expenses
|
(188,825 | ) | (110,692 | ) | (3,443 | ) | 4,105 | (298,855 | ) | |||||||||||
Operational results (2)
|
(16,895 | ) | 76,283 | 9,442 | - | 68,830 | ||||||||||||||
Other operational revenues (expenses), net
|
65,978 | 702 | 5,804 | - | 72,484 | |||||||||||||||
Other selected information
|
||||||||||||||||||||
Additions to property, plant and equipment and intangible assets
|
408,382 | 11,529 | 707 | - | 420,618 | |||||||||||||||
Depreciation and amortization
|
157,235 | 8,941 | 3,741 | - | 169,917 |
(1)
|
Comprising gross profit less sales, general and administrative expenses.
|
b)
|
Sales revenues per segment
|
06/30/2010
|
06/30/2009
|
|||||||
CAA
|
||||||||
Sugar
|
829,331 | 651,046 | ||||||
Ethanol
|
356,853 | 479,464 | ||||||
Co-generation
|
55,372 | 29,405 | ||||||
Other
|
32,087 | 45,294 | ||||||
1,273,643 | 1,205,209 | |||||||
CCL
|
||||||||
Fuel
|
2,559,103 | 2,275,514 | ||||||
Lubricants
|
201,658 | 150,372 | ||||||
Other
|
20,865 | 18,831 | ||||||
2,781,626 | 2,444,717 | |||||||
Rumo
|
||||||||
Addition
|
35,016 | 38,175 | ||||||
Freight
|
70,356 | 1,080 | ||||||
105,372 | 39,255 | |||||||
Adjustments and exclusions
|
(161,019 | ) | (123,078 | ) | ||||
3,999,622 | 3,566,103 |
c)
|
Sales revenues per region
|
06/30/2010
|
06/30/2009
|
|||||||
Brazil
|
69.27 | % | 54.35 | % | ||||
Europe
|
26.82 | % | 35.34 | % | ||||
Middle East and Asia
|
2.12 | % | 1.95 | % | ||||
North America
|
0.37 | % | 6.17 | % | ||||
Latin America (others, except Brazil)
|
0.07 | % | 2.19 | % | ||||
Others
|
1.35 | % | - | |||||
Total
|
100.00 | % | 100.00 | % |
24.
|
Information per segment (consolidated) (Continued)
|
d)
|
Main clients
|
|
CAA
|
|
Sales from this segment are relatively diluted, with solely one client representing more than 10% of the total sales of this segment for the quarters ended June 30, 2010 and 2009: SUCDEN Group, with 26.6% and 33.0% of sales, respectively.
|
|
CCL
|
|
Sales from this segment are highly diluted, without specific clients or economic groups representing 10% or more of the sales in this segment.
|
|
RUMO
|
|
For the quarters ended June 30, 2010 and 2009, 42.7% and 34.9%, respectively, of the sales of this segment were directed to the CAA segment. Moreover, during the same periods, such segment had two clients with revenues greater than 10% of the total, being (i) SUCDEN Group, representing 17.0% (21.0% as of June 30, 2009) and (ii) ED & F MAN Brasil S.A., representing 22.6% (zero as of June 30, 2009).
|
25.
|
Subsequent events
|
25.
|
Subsequent events (Continued)
|
COSAN LIMITED
|
||||||
Date:
|
August 23, 2010
|
By:
|
/s/ Marcelo Eduardo Martins
|
|||
Name:
|
Marcelo Eduardo Martins
|
|||||
Title:
|
Chief Financial Officer and Investor Relations Officer
|