CORIMON, C.A.
(and Affiliates)
Consolidated Financial Statements
As of April 30, 2011
Expressed in thousand constant bolívares
As of April 30, 2011
and
Statutory Auditor Opinion
Statutory Auditors’ Report
July 08, 2011
To the Shareholders of Corimon, C.A.
As Statutory Auditors appointed by the General Shareholders’ Meeting held on July 23, 2009 and pursuant to the dispositions of the Interpersonal Rules and Regulations for exercising the role of Statutory Auditor, Articles 309 and 311 of the Venezuelan Commercial Code and other legal and statutory dispositions, we hereby inform that we have reviewed the consolidated balance sheet of Corimon, C.A. and its affiliates as of April 30, 2011 , consolidated profit and loss statements, equity accounts’ transactions and cash flow statements for the year ended on April 30, 2011 , expressed in constant Bolivares as of April 30, 2011 , which have been prepared by the Company’s Management.
Our review has been performed to the extent we deemed necessary according to the circumstances and based on the report by the Company’s independent auditors, Rodríguez Velázquez & Asociados, dated July 12, 2011 , which is an integral part of this report and which points out that the consolidated financial statements reasonably show, regarding all relevant aspects, the financial condition of Corimon, C.A. and its affiliates as of April 30, 2011 , the consolidated profit and loss statements and cash flow statements for the year ended on April 30, 2011 , expressed in thousands of constant Bolivares as of April 30, 2011 and that such review was performed according to the generally accepted auditing principles.
Under the terms of the Directory of the National Securities Commission (SNV) dated December 12, 2008, the companies performing securities’ public offers under the terms of the Law on Capital Markets must mandatorily prepare and submit their financial statements according to the International Accounting Standards (IAS) and International Financial Report Standards (IFRS) as of those fiscal years beginning on January 1, 2011 or beginning on the immediately following date as its sole accounting presentation.
The requirement of presenting financial statements together with their relevant notes remains in force pursuant to the standards for the preparation of financial statements of companies subject to the control of the National Securities Superintendence (SNV) for fiscal years ending on December 31, 2010 or on an immediately subsequent closing date.
The consolidated financial statements have been prepared pursuant to the Standards for the Preparation of Financial Statements of Companies subject to the Control of the National Securities Superintendence. Such financial statements, in the event of the Company and its affiliated companies, unless for the provisions of the paragraph below, have no relevant discrepancies with the generally accepted accounting principles in Venezuela (PCGA-VEN).
The Company adjusted its consolidated financial statements by implementing the Standards for the Preparation of Financial Statements of Companies subject to the Control of the National Securities Superintendence (SNV). A significant discrepancy exists between these standards and the Declaration of Accounting Principles N° 10 (DPC-10) “Standards for the Preparation of Financial Statements Adjusted for Inflation Purposes” (“Normas para la Elaboración de Estados Financieros Ajustados por Efectos de la Inflación”), issued by the Venezuelan Federation of Public Accountants’ Associations (Federación de Colegios de Contadores Públicos de Venezuela), regarding the processing of the effects caused by the implementation of the mixed method. According to the DPC-10, results under the mixed method and under the general price level method (GPL) must be equal since the difference between the depreciation estimated under both methods is directly recorded in the equity in the unrealized profit and loss account for the holding of nonmonetary assets (RETANM – Resultado por tenencia de activos no monetarios), while, pursuant to the provisions of the Standards for the Preparation of Financial Statements of Companies subject to the Control of the SNV, depreciation of current values of properties, plants and equipment is directly recorded in the profit and loss accounts. The net effect of such discrepancy over the consolidated financial statements for the year ended on April 30, 2011 was a reduction of Bs. 13,659,000 in the consolidated net profits.
To our opinion, based on our review and work performed by the independent auditors, Rodríguez Velázquez & Asociados, the attached financial statements and their respective notes, expressed in thousands of constant Bolivares, reasonably show the consolidated financial condition of Corimon, C.A. and its affiliates as of April 30, 2011 and consolidated profit and loss statements and cash flow statements for the year ended on such date, pursuant to the Regulations for Preparing Financial Statements applicable to companies subject to the control of the National Securities Commission; therefore, we submit them to the consideration of the Shareholders’ Meeting for their approval.
Sincerely,
Jorge Gómez C. Henry Peñaloza R.
Statutory Auditor Statutory Auditor
CPA Nº 10951 CPA Nº 20339