Companhia Mineira de Açúcar e Álcool Participações

Transcription

1 Companhia Mineira de Açúcar e Álcool Participações Financial statements March 31, 2016 and 2015 KPDS

2 Contents Independent auditors' report on the financial statements 3 Balance sheets 6 Statements of income 7 Statements of comprehensive income 8 Statements of changes in shareholders' equity 9 Statements of cash flows - Indirect method 10 Statements of added value 11 Notes to the financial statements 12 2

3 KPMG Auditores Independentes Passeio das Castanheiras, Salas 407 a 411 Condomínio Tríade - Torre Nova York - Parque Faber Castell São Carlos/SP - Brazil Caixa Postal CEP São Carlos/SP - Brazil Telephone 55 (16) , Fax 55 (16) Independent auditors' report on the financial statements To the Board Members and Shareholders of Companhia Mineira de Açúcar e Álcool Participações Uberaba - Minas Gerais We have examined the individual and consolidated financial statements of Companhia Mineira de Açúcar e Álcool Participações ("Company"), identified as Parent Company and, respectively, comprising the balance sheet as of March 31, 2016 and the related statements of income, comprehensive income, changes in shareholders' equity and cash flows, for the year then ended, as well as the summary of the significant accounting practices and other explanatory notes. Management s responsibility for the financial statements The Company's management is responsible for the preparation and adequate presentation of the individual financial statements in accordance with the accounting practices adopted in Brazil and of the consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board - IASB, and in accordance with the accounting practices adopted in Brazil as well as for the internal controls that it deemed necessary to enable the preparation of these financial statements free of significant distortions, regardless of whether the latter were caused by fraud or error. Responsibility of the independent auditors Our responsibility is to express an opinion on these financial statements based on our audit, undertaken in accordance with Brazilian and international auditing standards. These standards require compliance with ethical requirements by the auditors and that the audit be planned and executed with the objective of obtaining reasonable assurance that the financial statements are free from significant distortions. KPMG Auditores Independentes, uma sociedade simples brasileira e firma-membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG International Cooperative ( KPMG International ), uma entidade suíça. KPMG Auditores Independentes, a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. 3

4 An audit involves the carrying out of procedures selected to obtain evidence related to the amounts and disclosures presented in the financial statements. The procedures selected depend on the auditor's judgment, including an assessment of the risks of significant distortion in the financial statements, regardless of whether the latter are caused by fraud or error. In this risk assessment, according to auditing standards, the auditor considers relevant internal controls for the preparation and adequate presentation of the financial statements of the Company, to plan the audit procedures that are appropriate in the circumstances, but not for purposes of expressing an opinion on the efficacy of these internal controls of the Company. An audit also includes the evaluation of the adequacy of adopted accounting practices and reasonability of accounting estimates made by Management, as well as an assessment of the presentation of financial statements taken as a whole. We believe that the audit evidence obtained is sufficient and appropriate to support our opinion. Opinion on the individual financial statements In our opinion, the individual and consolidated aforementioned financial statements present fairly, in all material respects, the financial position of Companhia Mineira de Açúcar e Álcool Participações as of March 31, 2016, the performance of its operations and its cash flows, for the year then ended, in accordance with the accounting practices adopted in Brazil. Opinion on the consolidated financial statements In our opinion, the consolidated aforementioned financial statements present fairly, in all material respects, the consolidated financial position of Companhia Mineira de Açúcar e Álcool Participações as of March 31, 2016, the consolidated performance of its operations and its cash flows, for the year then ended, in conformity with International Financial Reporting Standards - IFRS issued by the International Accounting Standards Board (IASB) and in accordance with the accounting practices adopted in Brazil. Emphasis Without modifying our opinion, we draw attention to note 1 to the consolidated financial statements, which demonstrates that the Company's consolidated total current liabilities exceeded total consolidated current assets by R$ 328,493 thousand as of March 31, This condition, together with other matters, as described in note 1, indicate that a significant uncertainty exists and may raise significant doubts on the Company's operating capacity as a going concern. Our opinion is not qualified in relation to this matter. KPMG Auditores Independentes, uma sociedade simples brasileira e firma-membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG International Cooperative ( KPMG International ), uma entidade suíça. KPMG Auditores Independentes, a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. 4

5 Other issues Statements of added value We have also examined the individual and consolidated statements of value added (DVA) for the year ended March 31, 2016, prepared under responsibility of Company's management, whose presentation is required by Brazilian Corporate Law for publicly-held companies and as supplementary information under IFRS that do not require the presentation of a statement of value added. These statements were submitted to the same audit procedures previously described and, in our opinion, these supplementary statements are adequately presented, in all material respects, in relation to the basic financial statements taken as a whole. São Carlos, June 27, 2016 KPMG Auditores Independentes CRC SP /O-6 F-MG Original report in Portuguese signed by André Luiz Monaretti Accountant CRC 1SP160909/O-3 KPMG Auditores Independentes, uma sociedade simples brasileira e firma-membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG International Cooperative ( KPMG International ), uma entidade suíça. KPMG Auditores Independentes, a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. 5

6 Balance sheets at March 31, 2016 and 2015 (In thousands of Reais) Parent company Parent company Assets Note Liabilities Note Cash and cash equivalents 9 63, , Loans and financing , , Pledged financial investments 10 36, Debentures 19 40,486 93, Trade accounts receivable and other receivables 11 14,311 7, Derivative financial instruments 25 40,046 31, Inventories 12 26,763 19, Suppliers and other accounts payable 20 61,096 59, Recoverable taxes and contributions 13 19,471 16, Provision and labor charges 12,638 19, Derivative financial instruments 25 11, Tax liabilities 6,996 5,183 3,475 1,449 Advances to suppliers and other assets 14 58,900 34, Advances from clients 21 58,532 46, Other current liabilities 3,933 7, Total current assets 230, , Total current liabilities 559, ,007 3,622 1,629 Long-term assets Advances to suppliers and other assets 14 6,923 7, Loans and financing , ,546 2,751 2,856 Trade accounts receivable and other receivables Debentures 19 51, Judicial deposits 1, Derivative financial instruments 25 10, Recoverable taxes and contributions 13 42,511 29, Other non-current liabilities 1, Derivative financial instruments 25 5, Provision for loss in investments ,338 8,600 Deferred income and social contribution taxes 26 7,118 28, Provisions for contingencies Total non-current assets 63,570 66, Total non-current liabilities 280, ,364 12,089 11,456 Investments ,003 83,727 Shareholders' equity 23 Biological assets , , Capital 303, , , ,364 Property, plant and equipment , , Capital reserve 4,164 4,164 4,164 4,164 Intangible assets 5,935 5,763 1,325 1,322 Equity valuation adjustment (23,129) (59,000) (23,129) (59,000) Accumulated losses (162,968) (75,781) (162,968) (75,781) Total non-current assets 730, , ,056 85,628 Total shareholders' equity 121,431 72, ,431 72,747 Total liabilities 839, ,371 15,711 13,085 Total assets 961, , ,142 85,832 Total liabilities and shareholders' equity 961, , ,142 85,832 See the accompanying notes to the financial statements. 6

7 Statements of income Years ended March 31, 2016 and 2015 (In thousands of Reais) Parent company Note Net operating income , , Variation of the biological asset's fair value 16 21,310 1, Cost of sales and services 29 (378,413) (351,002) - - Gross income 65, , Operating expenses Sales expenses 29 (34,075) (35,909) - - Administrative expenses 29 (11,168) (14,937) (1,530) (1,054) Other operating income (1,992) 1, (47,235) (49,397) (1,526) (1,054) Income (loss) before net financial income (loss), equity in net income of subsidiaries and taxes 17,842 77,254 (1,526) (1,054) Financial expenses 30 (212,295) (84,586) (333) (273) Financial income ,810 13, Net financial expenses 30 (102,485) (71,469) (328) (264) Profit sharing of investees under the equity method, net of taxes (85,333) 7,355 Income (loss) before taxes (84,643) 5,785 (87,187) 6,037 Current income and social contribution taxes 26 (57) (121) - - Deferred income and social contribution taxes 26 (2,487) (2,544) Income (loss) for the year attributable to controlling shareholders (87,187) 6,037 (87,187) 6,037 Earnings per share Earnings per share - basic and diluted (in R$) 31 (0.12) 0.02 (0.12) 0.02 See the accompanying notes to the financial statements. 7

8 Statements of comprehensive income Years ended March 31, 2016 and 2015 (In thousands of Reais) Parent company (Loss) income for the year (87,187) 6,037 (87,187) 6,037 Effects in net gains/(losses) from cash flow hedge 35,871 (53,209) 35,871 (53,209) Total comprehensive income (51,316) (47,172) (51,316) (47,172) See the accompanying notes to the financial statements. 8

9 Statements of changes in shareholders' equity Years ended March 31, 2016 and 2015 (In thousands of Reais) Note Capital Capital reserves Equity valuation adjustment Accumulated losses Total shareholders' equity Balance at April 1, ,364 4,164 (5,791) (81,818) 119,919 Other comprehensive income Net losses from cash flow hedge - - (53,209) - (53,209) Net income for the year ,037 6,037 Balance at March 31, ,364 4,164 (59,000) (75,781) 72,747 Capital increase through paid-up capital pursuant to minutes of meeting held on November 27, , ,000 Other comprehensive income Net gains from cash flow hedge ,871-35,871 Loss for the year (87,187) (87,187) Balance at March 31, ,364 4,164 (23,129) (162,968) 121,431 See the accompanying notes to the financial statements. 9

10 Statements of cash flows - Indirect method Years ended March 31, 2016 and 2015 (In thousands of Reais) Note Parent company Cash flow from operating activities Income (loss) for the year (87,187) 6,037 (87,187) 6,037 Adjustments to reconcile income (loss): Change in fair value of biological assets (21,310) (1,223) - - Depreciation and amortization 38,815 37,809-1 Decrease in biological assets for the crop of sugarcane 39,246 37, Off-season amortization 36,503 36, Amortization of cultural treatments of ratoon cane 34,868 22, Equity in income of subsidiaries ,333 (7,355) Residual value of written-off fixed assets 7,749 9, Interest on loans and financing 72,660 64, Unrealized exchange variation on loans and investments 16,487 (5,092) - - Unrealized losses on derivative financial instruments 43,861 19, Reversal of allowance for doubtful accounts Formation/reversal of provision for contingencies and other liabilities (1,882) (390) - - Deferred income and social contribution taxes 2,487 (373) , ,830 (1,854) (1,317) (Increase) decrease in trade accounts receivable and other receivables (6,678) 23,881 (150) - (Increase) decrease in inventories (6,920) (9,061) (Increase) in taxes and contributions recoverable (16,040) (331) (1) (1) (Increase) in advance to suppliers and other assets (24,251) (3,725) - - Increase (decrease) in suppliers and other accounts payable 1,596 (33,586) (Decrease) Increase in provisions and labor charges (6,754) 3,286 (55) 62 Increase in tax liabilities 1, , Increase in advances from clients 11,771 46, (Decrease) increase in other liabilities (4,025) 5,505 (2) - Cash from (used in) operating activities 132, ,209 (12) (758) Payment of interest on loans and financing (71,365) (64,992) - - Cash from (used in) operating activities 61, ,217 (12) (758) Cash flow from investment activities Increase in pledged interest earning bank deposits (36,008) Capital increase in subsidiary - - (100,000) - Formation of biological assets (70,029) (69,786) - - Acquisition of fixed assets 35 b (58,912) (44,708) - (1,359) Acquisition of intangible assets (1,055) (3,007) (107) - Receipts deriving from the disposal of fixed assets - 9, Credit granting to related parties ,638 Cash flow (used in) from investment activities (166,004) (107,737) (100,107) 39,279 Cash flow from financing activities Loans and financing 317, , Payment of principal of loans and financing (390,752) (248,987) - - Capital increase 100, ,000 Funding from related parties (38,515) Cash flow from (used in) financing activities 26,605 (6,633) 100,000 (38,515) Net (decrease) increase in cash and cash equivalents (77,955) 80,847 (119) 6 Cash and cash equivalents at April 1 141,409 60, Effect of exchange variation on the cash and cash equivalents Cash and cash equivalents on March 31, b 63, , See the accompanying notes to the financial statements. 10

11 Statements of added value Years ended March 31, 2016 and 2015 (In thousands of Reais) Parent company Income Sale of merchandise, products and services 439, , Other income 3,432 4, Allowance for doubtful accounts - (3) , , Inputs acquired from third parties (including PIS and COFINS) Cost of products, goods, and services sold (167,793) (110,960) (96) (4) Materials, energy, outsourced services and others (56,221) (59,234) (1,285) (880) Others (30,320) (37,367) - (49) (254,334) (207,561) (1,381) (933) Gross added value 188, ,240 (1,381) (933) Depreciation and amortization (78,061) (74,849) - - Net added value generated by the Company 110, ,391 (1,381) (933) Added value received as transfer Equity in income of subsidiaries - - (85,333) 7,355 Financial income 109,810 13, Total added value payable 220, ,508 (86,709) 6,432 Personnel 72,897 86, Direct remuneration 51,671 54, Benefits 16,527 25, FGTS 4,699 5, Taxes, rates and contributions 23,891 26, Federal 20,471 23, State 1,411 1, Other taxes 2,009 1, Third-party capital remuneration 210, , Interest 144,845 69, Rents Others 65,655 47, Remuneration of own capital (87,187) 6,037 (87,187) 6,037 Income (loss) for the year (87,187) 6,037 (87,187) 6,037 Distributed added value 220, ,508 (86,709) 6,432 See the accompanying notes to the financial statements. 11

12 Notes to the financial statements (In thousands of reais) 1 Operations The Company, located at Rodovia BR 050 (KM 121) - Distrito Industrial I of Uberaba/MG, is a limited-liability company engaged in holding interest in other companies that produce, sell and export sugar, ethanol, power and other products derived from the processing of sugarcane. It obtained its registry of publicly-traded company on March 4, 2009, by means of CVM/SEP/RIC Circular Nº 001/2009, for trading of common shares on the non-organized over-the-counter market. The Company is the parent company of the following Companies: Triângulo Mineiro Açúcar e Álcool S/A. (Triângulo Mineiro); Vale do Tijuco Açúcar e Álcool S/A. (Vale do Tijuco); and Rio Tijuco Agropecuária S/A. (Rio Tijuco). The subsidiary Triângulo Mineiro Açúcar e Álcool S/A., with head offices in Uberlândia, and the subsidiaries Vale do Tijuco Açúcar e Álcool S/A. and Rio Tijuco Agropecuária S/A., both with head offices in Uberaba, are engaged in the production, sale and export of sugar, ethanol and other products derived from the processing of sugarcane; the provision of services to third parties and the industrialization by order of the latter; sale of electric power, and it may exploit and sale the planting of sugarcane in their own or third-party land; the sale of their own or thirdparty sugarcane; the intermediation of sale of sugarcane, and holding interest in other companies, as partner or shareholder. The subsidiary Triângulo Mineiro Açúcar e Álcool S/A. is at pre-operating phase with estimated grinding of 2.2 million tons per year for the first phase and 5.5 million for the final phase of expansion, according to the business plan. The operations of the subsidiary Vale do Tijuco Açúcar e Álcool S/A. began on April 12, The industrial plant of Vale do Tijuco Açúcar e Álcool S/A. has grinding capacity of around 4 million tons of sugarcane per year, producing sugar, anhydrous ethanol, hydrated ethanol and power, as well as the by-products fusel oil and sugarcane bagasse. The subsidiary Rio Tijuco Agropecuária S/A. is in the operating phase and its main activity is the cultivation and trading of sugarcane both in own lands and third party lands. The planting of sugarcane requires a period of up to 18 months for maturation and beginning of harvest, which usually occurs between April and November. The sale of the production occurs throughout the year and it does not suffer variations due to seasonality, but only variation of the usual market offer and demand (commodity price and foreign exchange). 12

13 As a means to extend the maturity profile of the Company's debt, which, at March 31, 2016, presented an excess of consolidated current liabilities over consolidated current assets of R$ 328,493, Management is already renegotiating the balances of borrowings and adequate funding with the main creditor banks whose loans are classified as current liabilities, with a view to adjusting the cash flows from operations. Among the main actions taken, the following stand out: On November 27, 2015, an amount of R$ 100,000 was transferred by the shareholders, as a planned capital increase. Search for a long-term credit line totaling R$ 200,000 from prime banks, to adjust working capital and reduce financial expenses as mentioned in Note 37, the Group has succeeded in part of its negotiations and raised new financing long-term in the amount of R $ 95,385. Projected cash flow with reduction of debt for next crops, being R$18,000 for 16/17 crop. Negotiation of waiver referring to financial indices that were not achieved and, consequently, the amount of R$106,911 was reclassified from non-current liabilities to current liabilities. The purpose of the strategic planning the Company has been implementing is to generate positive results in the coming years. These strategies were approved by the Company s shareholders. 2 Group entities The consolidated financial statements include the financial statements of the parent company Companhia Mineira de Açúcar e Álcool Participações and the following subsidiaries: Percentage of Interest Subsidiaries Country Triângulo Mineiro Açúcar e Álcool S/A. (Triângulo Mineiro) Brazil 99.99% 99.99% Vale do Tijuco Açúcar e Álcool S/A. (Vale do Tijuco) Brazil 99.99% 99.99% Rio Tijuco Agropecuária S/A. (Rio Tijuco) Brazil 100% 100% The individual and consolidated financial statements for the year ended March 31, 2016 comprise the Company and its subsidiaries (collectively referred to as the Group ). 3 Preparation basis Statement of compliance (in relation to IFRS standards and CPC standards) The consolidated financial statements were prepared in accordance with the International Financial Reporting System (IFRS) issued by the International Accounting Standards Board (IASB) and also in accordance with the accounting practices adopted in Brazil (BR GAAP) in conformity with the pronouncements issued by the Accounting Pronouncement Committee (CPC). The individual financial statements of the parent company were prepared according to the BR GAAP. 13

14 Review of Technical Pronouncement 07 (approved in December 2014) changed CPC 35, CPC 37 and CPC 18 and authorized the use of the equity method in separate IFRS financial statements, eliminating the difference between BR GAAP and IFRS. However, there is no difference between the shareholders' equity and consolidated result presented by the Group and the shareholders' equity and result of the Parent company in the individual financial statements. The issue of financial statements was authorized by the Management on June 27, Details on the Group s significant accounting policies are shown in Note 7. 4 Functional and presentation currency These financial statements are being presented in Brazilian reais, functional currency of the Group. All balances have been rounded to the nearest value, except otherwise indicated. 5 Use of estimates and judgments The preparation of these individual and consolidated financial statements, Management used judgments, estimates and assumptions that affect the application of Group s accounting principles and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and assumptions are reviewed in a continuous manner. Reviews of estimates are recognized on a prospective basis. a. Judgments Information about judgment referring to the adoption of accounting policies which impact significantly the amounts recognized in the financial statements are included in the following note: Note 7 (a) - consolidation, determination of whether the Group holds actual control on an investee. b. Uncertainties on assumptions and estimates Information on uncertainties as to assumptions and estimates that pose a high risk of resulting in a material adjustment in the year ending March 31, 2017 are included in the following notes: Note 11 - realization of accounts receivable and other receivables; Note 22 - Recognition and measurement of provision for contingencies: main assumptions on the probability and volume of outflows; and Note 26 - Recognition of deferred tax assets: availability of future taxable income against which tax losses may be used. Measurement of fair value A series of Group s accounting policies and disclosures requires the measurement of fair value, for financial and non-financial assets and liabilities. The Group established a control structure related to measurement of fair value. This includes a valuation team which has overall responsibility for overseeing all significant fair value measurements. 14

15 The Group periodically reviews unobservable data considered significant and valuation adjustments. If third-party information, such as broker quotes or pricing services, is used to measure fair values, the management assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the CPC requirements, including the level in the fair value hierarchy in which such valuations should be classified. When measuring fair value of an asset or liability, the Group uses observable data as much as possible. Fair values are classified at different levels according to hierarchy based on information (inputs) used in valuation techniques, as follows: Level 1: Prices quoted (not adjusted) in active markets for identical assets and liabilities. Level 2: Inputs, except for quoted prices, included in Level 1 which are observable for assets or liabilities, directly (prices) or indirectly (derived from prices). Level 3: Inputs, for assets or liabilities, which are not based on observable market data (nonobservable inputs). The Group recognizes transfers between fair value hierarchic levels at the end of the financial statements period in which changes occurred. Additional information on the assumptions adopted in the measurement of fair values is included in the following notes: Note 16 - Biological assets; and Note 25 - Financial instruments. 6 Measuring basis The financial statements were prepared based on the historical cost, except for the following material items recognized in the balance sheets: Derivative financial instruments measured at fair value; Non-derivative financial instruments designated at fair value through profit or loss are measured at fair value; and Biological assets measured at fair value less selling costs. 7 Significant accounting policies The Group applied the accounting policies described below consistently to all the years presented in these financial statements. 15

16 a. Basis of consolidation (i) Subsidiaries The Group controls an entity when it is exposed to, or has a rights over the variable returns arising from its involvement with the entity and has the ability to affect those returns exerting its power over the entity. The financial statements of the subsidiaries are included in the consolidated financial statements as from the date they start to be controlled by the Group until the date such control ceases. The individual financial information of the parent company, financial information of subsidiaries are recognized under the equity method. (ii) Transactions eliminated in the consolidation Intragroup balances and transactions, and any unrealized income or expenses derived from intragroup transactions, are eliminated. Unrealized gains originating from transactions with investee recorded using the equity method, are eliminated against the investment in the proportion of the Group's interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only up to the point where there is no evidence of loss due to impairment. b. Operating income (i) Sale of products Operating income is recognized when (i) the most significant risks and rewards inherent to the ownership of the assets have been transferred to the purchaser, (ii) it is probable that the financial economic benefits will flow to the Group, (iii) the costs related and potential return of goods can be reliably estimated, (iv) there is no continued involvement with the goods sold, and (v) the amount of operating income can be reliably measured. Income is measured net of returns, trade discounts and bonus. The moment for the transfer of risks and benefits varies depending on the individual conditions of each sales agreement. For sugar and ethanol sales in the domestic market, transfer is normally carried out when the product is delivered in the client's premises of when it is picked up by the client in the Group's premises. For sales in the foreign market, the transfer occurs upon loading of goods in the transportation company of the seller harbor. (ii) Sale of electricity Income from the sale of power generation is recorded based on the guaranteed energy and tariffs specified in the terms of supply agreements or the prevailing market price, as applicable. As mentioned in Note 28, the Group has futures contract for trading of electric power in the total volume of 61,320 Mwh per year/crop. c. Financial income and expenses The Group s financial income and expenses: income/losses from derivative financial instruments; net gains/losses in exchange variation of financial assets and liabilities; interest expenses on loans and financing; and 16

17 other financial income and expenses. Financial income and expenses are recognized in income (loss) using the effective interest rate method. d. Foreign currency Foreign currency transactions Transactions in foreign currency are translated into the functional currency of the Group at the exchange rates on the dates of the transactions. Monetary assets and liabilities denominated and calculated in foreign currencies on the balance sheet date are reconverted into the functional currency at the foreign exchange rate on that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated into the functional currency at the foreign exchange rate on the date the fair value was determined. Non-monetary items that are measured based on the historical cost in foreign currency are translated using the rate of the transaction date. Exchange differences arising from the translated are recognized in income (loss). However, foreign exchange differences resulting from reconversion of effective cash flow hedge are recognized in other comprehensive income. e. Employee benefits (i) (ii) (iii) Short-term employee benefits Obligations for short-term employee benefits are recognized as personnel expenses as the related service is rendered. The liability is recognized at the amount expected to be paid, if the Group has a legal or constructive obligation to pay this amount as a result of prior service rendered by the employee, and the obligation can be reliably estimated. Defined contribution plan Obligations for contributions to defined contribution pension plans are recognized as employee benefit expenses in profit or loss when the related services are rendered by the employees. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is possible. The Group does not have other post-employment benefits. Defined benefit plan The Group's net obligation in respect of defined benefit plans is calculated individually for each plan by estimating the amount of the future benefit that employees will earn in return for their service in the current and prior periods. This amount is discounted at present value and is presented net of any of the plan s assets fair values. The calculation of defined benefit plan obligation is made each year by a qualified actuary adopting the projected unit credit method. When the calculation results in a potential for the Group, the asset to be recognized is limited to present value of the economic benefits available as future plan refunds or reduction in the future payments. To calculate economic benefits present value, any minimum applicable cost requirements are taken into consideration. 17

18 f. Income and social contribution taxes The income and social contribution taxes, both current and deferred, are calculated based on the rates of 15% plus a surcharge of 10% on taxable income in excess of R$ 240 (annual basis) for income tax and 9% on taxable income for social contribution on net income, and consider the offset of income tax loss carryforward and negative basis of social contribution, limited to 30% of the taxable income in the year. Income and social contribution tax expense comprises both current and deferred income and social contribution taxes. Current taxes and deferred taxes are recognized in income unless they are related to items directly recognized in Shareholders' equity or in other comprehensive income. (i) Current income tax and social contribution expense Current tax expense is the tax payable or receivable on the taxable income or loss for the year and any adjustments to taxes payable in relation to prior years. It is measured based on rates enacted at the balance sheet date. Current tax assets and liabilities are offset only if certain criteria are met. (ii) Deferred income and social contribution tax expenses Deferred tax and liabilities are recognized in relation to the temporary differences between the book values of assets and liabilities for financial statement purpose and used for taxation purposes. A deferred tax asset is recognized for unused tax losses and deductible temporary differences, to the extent that it is probable that future taxable income will be available against those that will be utilized. Deferred tax assets are reviewed at each balance sheet date and reduced when their realization is no longer probable. Deferred tax assets and liabilities are measured at tax rates expected to be applied to temporary differences when they are reversed, based on rates enacted or decreed up to the date of balance sheet date. The measurement of deferred tax assets and liabilities reflects the tax consequences in a manner in which the Group expects to recover or settle its assets and liabilities. The deferred tax assets and liabilities are offset only if certain criteria are met. g. Biological assets Biological assets are measured at fair value, less sales expenses, and any changes are recognized in income (loss). Sale costs include all costs that are necessary to sell the assets, including transport expenses. Sugarcane is transferred to the cost of production at their fair value, minus estimated selling expenses determined on the cutoff date. h. Inventories Inventories are measured at the lower of cost and net realizable value. Inventory costs are valued at the average cost of purchase or production and include expenses incurred in the acquisition of inventories, production and conversion costs and other costs incurred in bringing them to their current locations and conditions. 18

19 The net realizable value is the estimated price at which inventories can be realized in the normal course of business, less the estimated completion costs and selling expenses. The sugarcane consumed in the production process is measured at its fair value, net of sales expenses determined on the cutoff date. i. Property, plant and equipment (i) Recognition and measurement Property, plant and equipment items are stated at historical acquisition or construction cost, net of accumulated depreciation and impairment losses. When significant parts of a property, plant and equipment item have different useful lives, are accounted for as separate items (major components) of property, plant and equipment. Any gains and losses on disposal a property, plant and equipment item are recognized in income (loss). (ii) (iii) Subsequent costs Subsequent costs are capitalized in accordance with the probability that associated future economic benefits may be earned by the Group. Maintenance expenses and recurring repairs are recognized in the income when incurred. Maintenance costs The maintenance cost of a component of property, plant and equipment is recognized in the book value of the item when it is probable that the future economic benefits embodied in the component will flow and its cost can be reliably measured. The book value of the component that has been replaced by another is written off. Costs of normal maintenance on property, plant and equipment are charged to the income statement as incurred. The subsidiary Vale do Tijuco Açúcar e Álcool S/A. performs annual maintenance at its manufacturing unit, approximately in the period from December to March. The main maintenance costs include costs of labor, materials, outsourced services and overhead allocated during the off-season period. Said costs are accounted for as a component of the cost of the equipment and depreciated during the following harvest. Any other type of expenditure, which does not increase the useful life or maintain the grinding capacity, is recognized as an expense. (iv) Depreciation Depreciation is calculated to amortize the cost of items of fixed assets, net of their estimated residual values, using the straight-line method based on estimated useful lives of such items. The depreciation is recognized in income (loss) and in production cost. Land is not depreciated. The estimated useful lives such as weighted average rates, for the current and comparative years are as follows: 19

20 Years Rates Industrial equipment % Constructions and buildings % Agricultural machinery and tractors % Paving 10 10% Vehicles 5 20% Agricultural equipment % Machinery, equipment and tools % Furniture and fixtures % Computers and peripherals % Others % Depreciation methods, useful lives and residual values are reviewed at each balance sheet date and adjusted if appropriate. j. Intangible assets (i) (ii) (iii) Other intangible assets Other intangible assets acquired by the group with finite useful lives are carried at cost, less accumulated amortization and any accumulated impairment losses. Subsequent expenses Subsequent expenses are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures are recognized in profit or loss as incurred. Amortization Amortization is calculated under the straight-line method based on the estimated useful life of items to amortize the cost of intangible asset items, net of their estimated residual values. Amortization is recognized in profit or loss. The average estimated useful lives for the current and comparative is 5 years. Amortization methods, useful lives and residual values are reviewed at each balance sheet date and adjusted if appropriate. k. Financial instruments The Group classifies non-derivative financial assets in the following categories: financial instruments measured at fair value through profit or loss and loans and receivables. The Group classifies non-derivative financial liabilities in the category of other financial liabilities. (i) Non-derivative financial assets and liabilities - recognition and derecognition The Group initially recognizes the loans, receivables and debt instruments on the date that they were originated. All other financial assets and liabilities are initially recognized on the date of the negotiation when the Group becomes a party to the instrument's contractual provisions. 20

21 The Group fails to recognize a financial asset when the contractual rights to the cash flow of the asset expire, or when the Group transfers the rights to the reception of contractual cash flows over a financial asset in a transaction in which essentially all the risks and benefits of ownership of the financial asset are transferred. Any interest in such transferred financial assets that is created or retained by the Group is recognized as a separate asset or liability. The Group derecognizes a financial liability when its contractual obligations are discharged or canceled or expire. Financial assets and liabilities are offset and the net amount reported in the balance sheet only when there is a legally enforceable right of the Group to set off and there is intention to settle on a net basis, or to realize the asset and settle the liability simultaneously. (ii) Non-derivative financial assets - Measurement Financial assets measured at fair value through profit or loss A financial asset is classified as measured at fair value through profit or loss if it is held for trading or is designated as such upon initial recognition. The transaction costs are recognized in income (loss) as incurred. They are measured at fair value and changes in the fair value, including gains with interest and dividends, are recognized in the income for the year. Loans and receivables Such assets are initially recognized at fair value plus any transaction costs directly assignable. After their initial recognition, loans and receivables are measured at amortized cost using the effective interest rate method. Cash and cash equivalents In statements of cash flow, cash and cash equivalents are immediately receivable and an integral part of the Group s cash management. (iii) Non-derivative financial liabilities - Measurement A financial liability is classified as measured at fair value through profit or loss if it is held for trading or is designated as such upon initial recognition. The transaction costs are recognized in income (loss) as incurred. Financial liabilities recorded at fair value through profit or loss are measured at fair value and changes in the fair value of such liabilities, including gains with interest and dividends, are recognized in the income for the year. Other non-derivative financial liabilities are initially measured at fair value less any transaction costs directly assignable. After their initial recognition, these financial liabilities are measured at amortized cost using the effective interest rate method. (iv) Capital - Parent company Common shares Additional costs directly attributable to the issue of shares are recognized as reduction in the shareholders equity. Effects of taxes related to costs of these transactions are accounted for in accordance with CPC 32/ IAS 12 - Income taxes. 21

22 Dividends The Company s bylaws determines a percentage higher than 25% to payment of compulsory minimum dividends. (v) Derivative financial instruments, including hedge accounting The Group holds derivative financial instruments to hedge its exposure to foreign currency and interest rate changes. Upon initial designation of the derivative as a hedging instrument, the Group formally documents the relationship between the hedge instruments and the hedgeable items, including the risk management goals and the strategy in the execution of the hedge transaction and the hedgeable risk, together with the methods that will be used to assess the effectiveness of the hedge relationship. The Group evaluates the hedge relationship, initially and then continuously, to conclude if hedge instruments are expected to be "highly effective" in the offset of variations in fair value or cash flows of items subject to hedge during the period for which hedge is assigned whether the actual results of each hedge are within the range of 80%-125%. For a cash flows hedge of a planned transaction, the transaction should have its occurrence as highly probable and should present exposure to variations in the cash flows that at the end could affect the reported income (loss). Derivatives are initially measured at their fair value; any attributable transaction costs are recognized in profit or loss when incurred. After the initial recognition, derivatives are measured at fair value and changes are recorded in profit or loss. Cash flow hedge When a derivative is designated as a hedge instrument to hedge cash flow variability, the effective portion of variation in the derivative's fair value is recognized in other comprehensive income and disclosed in equity valuation adjustments caption in shareholders' equity. Any non-effective portion of the variations in the fair value of the derivative is recognized immediately in net income. Accumulated value held under equity valuation adjustments is reclassified to income for the same period in which hedged item affects income. In case (i) occurrence of foreseen transaction is no longer expected, (ii) hedge does not meet hedge accounting criteria, (iii) hedge instrument expires or is sold, ended or exercised, or has its assignment revoked, hedge accounting is prospectively discontinued. If there is no other expectations regarding occurrence of foreseen transaction, comprehensive income balance is reclassified to income. l. Impairment (i) Non-derivative financial assets Financial assets not classified as financial assets at fair value through profit or loss, including investments accounted for under the equity method, are evaluated at each balance sheet date to determine if there are objective impairment evidence. 22

23 Objective evidences of financial assets impairment include: debtor s default or delays; restructuring of an amount owed to the Group at conditions that would not be accepted under normal conditions; indications that the debtor or issuer will face bankruptcy/court-ordered reorganization; negative changes in payment situation of debtors or issuers; the disappearance of an active market for an instrument due to financial distress; or observable data indicating that expected cash flow measurement of a group of financial assets decreased. Financial assets measured at amortized cost The Group considers as evidence of impairment of assets measured by amortized cost both individually and on an aggregate basis. All individually significant assets are assessed for impairment. Those non-impaired on an individual basis are collectively assessed for any impairment loss not yet identified. Assets that are not individually significant are assessed on an aggregate basis in relation to impairment by grouping the assets with similar risk characteristics. When assessing impairment on an aggregate basis the Group makes use of historical trends of the recovery term and the amounts of losses incurred, adjusted to reflect the management's judgment if the current economic and credit conditions are such that the actual losses will probably be higher or lower than those suggested by historical trends. An impairment is calculated as the difference between the asset's book value and the present value of estimated future cash flows discounted at the financial asset's original effective interest rate of the asset. The losses are recognized in income and reflected in an account for allowance for losses. When the Group considers that it is not possible to reasonably expect recovery, amounts are written-off. When subsequent event indicates loss reduction, provision is reversed through profit or loss. Investees recorded under the equity method of accounting An impairment loss referring to an investee value at the equity method is measured by comparing the investment s recoverable value to its book value. An impairment loss is recognized in the statement of income and is reversed if there has been a favorable change in the estimates used to determine the recoverable value. (ii) Non-financial assets The book values of the non-financial assets of the Group, except for biological assets, inventories and deferred tax assets are reviewed at each balance sheet date for indication of impairment. If such indication exists, the asset's recoverable amount is estimated. In case of goodwill, recoverable value is tested on an annual basis. For impairment tests, assets are grouped at the lowest possible group of assets that generates cash inflows for their continued use, these entries that are largely independent of the cash inflows from other assets or CGU (cash generating units). Recoverable value or CGU of an asset is the higher of value in use and fair value less selling costs. Value in use is based on estimated future cash flows discounted to present value using a discount rate before taxes that reflects current market evaluations of times value of money and the specific risks of the assets or CGU. 23

24 Impairment losses are recognized in income (loss) and reversed only with the condition that the book value of the asset does not exceed the book value that would have been calculated, net of depreciation or amortization, if the value loss had not been recognized. An impairment loss is recognized when the book value of an asset or its CGU exceeds its recoverable value. Group s management did not identify any evidence that would justify the need of provision for recoverability on March 31, m. Provisions Provisions are determined by discounting the estimated future cash flows at a pre-tax rate which reflects the current market evaluations as to the value of the cash over time and the specific risks of the related liability. Effects from de-recognition of elapsing of time discount are recognized in income as financial expenses. n. Statement of added value The Group prepared individual and consolidated statements of added value in accordance with the rules of technical pronouncement CPC 09 - Statement of Added Value, which are presented as an integral part of the financial statements under BRGAAP applicable to publicly-held companies, whereas under IFRS they represent additional financial information. o. Earnings per share - Basic and diluted The basic earnings per share are calculated by dividing the result for the year attributable to the Group's shareholders by the weighted average of outstanding common shares in the respective year. The Group has no instruments that could potentially dilute earnings per share. p. Segment information An operating segment is a component of the Group which engages in business activities from which it may earn income and incur expenses, including income and expenses relating to transactions with other components of the Group. 8 New standards and interpretations not yet effective Several new standards, amendments to standards and interpretations will be effective for the years started after January 1, 2016, and have not been adopted to the preparation of these financial statements. Those that may be relevant to the Group are listed below. The Group does not plan to adopt this standard in advance. 24

25 IFRS 9 Financial Instruments IFRS 9, published in July 2014, replaces guidelines of IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 includes revised guidance on the classification and measurement of financial instruments, including a new expected credit loss model for calculating impairment on financial assets, and the hedge accounting requirements. The regulation maintains the IAS 39 guidelines about acknowledging and disacknowledging financial instruments. The Group is evaluating the effects IFRS 9 will have on its financial statements and disclosures. IFRS 9 is effective for periods beginning on or after January 1, 2018, with early adoption allowed. IFRS 15 Income from Contracts with Clients The IFRS 15 requires an entity to recognize the amount of income reflecting the consideration that it expects to receive in exchange for control of these goods or services. The new standard will replace most of the detailed guidance on income recognition that currently exists in IFRS and when the new standard is adopted. The new standard is applicable beginning on or after January 1, 2018, with early adoption permitted by the IFRS. The standard may be adopted retrospectively, adopting a cumulative effects approach. The Group is evaluating the effects IFRS 15 will have on its financial statements and disclosures. The Group has not yet chosen the transition method to the new standard or determined the effects of the new standard in today's financial reports. Agriculture: Production Plants (amendments to CPC 27 / IAS 16 and CPC 29 / IAS 41) These changes require that production plants defined as live plants must be accounted for as property, plant and equipment and included in the ambit of CPC 27 / IAS 16 Property, plant and equipment and no longer in the scope of CPC 29/ IAS 41 Agriculture. These changes are to be enforced in years starting on or after January 1, 2016, and early adoption is permitted. IFRS 16 Leases IFRS 16, published in January 2016, includes guidelines on single model, without lease classification test and all leases recognized in the balance sheet. Lessee recognizes a right of use asset (right-of-use, ROU) and a lease liability and treatment equal to financed purchase of an asset. IFRS 16 is effective for periods beginning on or after January 1, 2019, with early adoption allowed, only if IFRS 15 is also adopted. The Company is evaluating the effects IFRS 16 will have on Group s financial statements. In addition, the following new rules or changes are not expected to have a significant impact on the Group s financial statements. IFRS 14 - Regulatory Deferral Accounts; Acceptable Methods of Depreciation and Amortization (changes in CPC 27 / IAS 16 and CPC 04 (R1)/ IAS 38); 25

26 Annual improvements of IFRS s - several standards; and Disclosure Initiative (Amendment of CPC 26 (R1)/ IAS 1). The Accounting Pronouncements Committee has not yet issued any accounting pronouncement or amendments in current pronouncements corresponding to all new IFRSs. Therefore, early adoption of IFRS is not allowed for entities that disclose their financial statements in accordance with accounting practices adopted in Brazil. 9 Cash and cash equivalents Parent company Cash and banks 9,071 21, Interest earnings bank deposits 54, , Total 63, , The cash balance arises from receipts of business transactions and are resources available to meet the immediate cash needs of the Company and its subsidiaries. All funds are deposited in prime bank institutions. Interest earning bank deposits are cash equivalents since they are promptly convertible into a known sum of cash and subject to an insignificant risk of change of value. These interest earning bank deposits refer to Bank Deposit Certificates (CDB) in several financial statements, remunerated at rates that vary from 95% to 100% of the CDI - Interbank Deposit Certificate. Interest earning bank deposits have no monthly maturity and may be redeemed at any time. Information on the Group's exposure to market, credit and fair value measurements risks related to cash and cash equivalents are included in Note Interest earnings bank deposits Refers to financial investments linked to delivery of 40,000 thousand metric tons of VHP sugar up to July 2016 with remuneration fees of % of Interbank Deposit Certificate (CDI). Information on the Group's exposure to market, credit and fair value measurements risks related to cash and cash equivalents are included in Note

27 11 Trade accounts receivable and other receivables Parent company From the sale of ethanol From the sale of energy 10,900 4, From the sale of sugar From the sale of sugarcane 39 1, Others 3,042 1, Trade accounts receivable 14,311 7, Related party credits (Note 33) Other receivables Total 14,311 7, Current assets 14,311 7, Non-current assets The Group as of March 31, 2016 did not have any operation that generated a significant effect in adjustment to present value. Information on the Group s exposure to credit, market risk, fair value measurement and impairment losses in the accounts receivable and other receivables are disclosed in Note Inventories Finished product Anhydrous ethanol 11,653 5,624 VHP Sugar 3, Hydrous ethanol Storeroom Warehouse, sundry (a) 9,876 7,794 Our inventory held by third parties 1,520 2,882 Advance to sundry suppliers - 2,222 Others - 1,046 Total 26,763 19,843 (a) The most representative amounts of supplies refer to inputs and agricultural pesticides to be used in the planting areas in plantation - own or third parties. 27

28 13 Recoverable taxes and contributions Parent company COFINS recoverable 32,716 21, ICMS recoverable - Acquisition of fixed assets 8,315 9, ICMS recoverable - purchase of inputs 5,031 4, PIS recoverable 10,150 7, Income tax on interest earning bank deposits 4,930 1, Other taxes recoverable 840 1, Total 61,982 45, Current assets 19,471 16, Non-current assets 42,511 29, PIS and COFINS The balance comprises credits arising from the non-cumulative collection of PIS and COFINS (taxes on income) on purchases of parts used to perform maintenance on the manufacturing facilities and agricultural fleet, maintenance services provided at the manufacturing and agricultural facilities, freight and storage related to sales transactions and electric power, as well as other credits arising from purchases of machinery and equipment, buildings and constructions to be used in production. These credits may be compensated with other federal taxes and no limitation periods. ICMS The balance is mainly comprised of credits calculated on acquisition of fixed asset items, realized at the rate of 1/48, and may be offset against taxes of the same nature. IRRF Refers to withholding income tax on financial investments and income tax and social contribution prepayments through an offset against federal taxes and contributions due. 14 Advances to suppliers and other assets Advance to suppliers of sugar-cane - third parties 59,665 35,446 Advance to sugarcane suppliers - related parties (note 33) 2,279 1,896 Others 3,879 4,889 Total 65,823 42,231 Current assets 58,900 34,323 Non-current assets 6,923 7,908 28

29 The balance of advance to suppliers refers to the agreement for supply of sugarcane, signed between the subsidiary Vale do Tijuco Açúcar e Álcool S/A. and its suppliers. Balance classified in non-current assets refers to advance supply sugarcane contracts that will be realized upon receipt of sugarcane beginning as of 2016/17 crop, priced based on Total Recoverable Sugar (TRS) index disclosed by Consecana (Council of Sugarcane, Sugar and Ethanol Producers in the São Paulo State) at the end of the crop. 15 Investments Breakdown of balances Parent company Investment assessed under the equity method Rio Tijuco Agropecuária S/A. 11,778 11,211 Triângulo Mineiro Açúcar e Álcool S/A. (9,338) (8,600) Vale do Tijuco Açúcar e Álcool S/A. 123,225 72, ,665 75,127 Classified as: Investments 135,003 83,727 Provision for loss on investment (9,338) (8,600) The Company recorded income of R$ 85,333 for the year ended March 31, 2016 and a gain of R$ 7,355 on March 31, 2015 from equity in subsidiaries. The Company accounts its investments in subsidiaries under the equity method. The Company and its subsidiaries do not have their shares traded on the Stock Exchange. Changes in investments in subsidiaries Parent company Opening balance of investments 75, ,982 Equity in income of subsidiaries (85,333) 7,355 Capital increase through paid-up capital (Vale do Tijuco S.A.) held on November 27, ,000 - Equity valuation adjustment (Vale do Tijuco S.A.) 35,871 (53,209) Total 125,665 75,127 29

30 Information from investees The chart below presents a summary of all financial information at subsidiaries: Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Shareholders' equity Income Expenses Income / loss Equity in net income of subsidiaries Interest % March 31, 2015 Triângulo Mineiro S/A % 44 2,513 2, ,183 11,157 (8,600) - (562) (562) (562) Vale do Tijuco S/A % 218, , , , , ,647 72, ,908 (508,645) 7,737 7,737 Rio Tijuco S/A % ,418 11, , (194) , , , , , ,129 75, ,282 (509,401) 7,355 7,355 Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Shareholders' equity Income Expenses Income / loss Equity in net income of subsidiaries Interest % March 31, 2016 Triângulo Mineiro S/A % 47 1,564 1, ,746 10,949 (9,338) 1 (736) (735) (735) Vale do Tijuco S/A % 230, , , , , , , ,625 (655,791) (85,166) (85,166) Rio Tijuco S/A % ,836 12, , (120) , , , , , , , ,314 (656,647) (85,333) (85,333) 30

31 16 Biological assets The Company s biological assets comprise cultivation and planting of own sugarcane and cultivation and planting through contracts with sugarcane partners, whose yield is to be used as raw material in its ethanol and sugar industrial processes. The sugarcane plantation is initiated with the plantation of seedlings on land owned by third-party landowners, and the first cutting occurs after a period of 12 to 18 months after planting, when the sugarcane is cut and the root ( ratoon ) continues in the soil. After each cut or year/crop, treated ratoon grows again and yields an average of five or six crops, depending on culture and genetic material. Biological assets movement is as follows: Balance at April 1, ,410 Increase due to additions of planting 69,786 Decrease due to harvesting (59,091) Fair value less estimated selling expenses 1,223 Balance at March 31, ,328 Increase due to additions of planting 70,029 Decrease due to harvesting (74,114) Fair value less estimated selling expenses 21,310 Balance at March 31, ,553 Biological assets will be realized in the following crops: 2016/ , / , / , / , onwards 3,683 Sugarcane plantations Planted areas refer only to sugarcane plantations, and do not consider planted land. The following assumptions were used in the determination of the fair value: 207, Estimated harvest area (hectares) 21,637 21,911 Estimated productivity (sugarcane tons/hectares) Total recoverable sugar (ATR) (kg) TRS value/kg (R$)

32 The discount rate used in the cash flow of each year, called as Weighted-Average Cost of Capital, corresponded to 5.25% per year (6.11% on March 31, 2015), which was revised and approved by the Company s Management. The Group is exposed to several risks related to its crops: Regulatory and environmental risks The Group is subject to laws and regulations and established environmental policies and procedures directed to compliance with environmental laws and other. The management carries out regular analyses to identify environmental risks and assure that systems under operation are appropriate to manage those risks. Supply and demand risks The Group is exposed to risks resulting from the prices fluctuation and sales volume of its plantations. Where possible, the Group manages this risk by aligning its extraction volume with market supply and demand. The management analyzes on a regular basis the trend of the industry to ensure that the price structure of the Group is in accordance with market and to ensure that estimated volumes of harvest are consistent with expected demand. Climatic risks and others The Group s plantations are exposed to risks of damages caused by climate changes, diseases, forest fires and other nature forces. The Group had extended processes in progress to monitor and reduce those risks, including health regulation inspections of the sugar cane areas and analysis of diseases and plagues of the industry. The Group also protects itself against natural disasters. 32

33 17 Property, plant and equipment Industrial equipment Constructions and buildings Agricultural machinery and tractors Paving Vehicles Agricultural equipment Machinery, equipment and tools Furniture and fixtures Computers and peripherals Construction in process (a) Off-season maintenance expenditures Others Total Land Cost Balance at April 1, ,501 69,930 33,601 6,739 9,231 17,051 3,573 3,465 1,227 1,242 31,968 31,465 5, ,245 Additions 4, ,019-1,185 1, ,250 44,217 1,322 83,820 Write-offs (267) (290) (562) - (686) (1,979) - (1) (50) - (15,354) (36,792) (977) (56,958) Transfers 23,298 3,851 (162) 1, (61) (28,497) Balance at March 31, ,146 73,604 39,896 7,862 9,740 16,526 3,573 3,895 1,332 1,612 11,367 38,890 5, ,107 Additions 879 1,574 3,287-1, ,010 38,561 6,353 68,444 Write-offs - (1,045) (1,538) - (445) (1,052) (304) (36,503) (5,484) (46,371) Transfers 7,059 4, (229) 15 - (12,301) - (345) - Balance at March 31, ,084 78,702 41,957 7,862 10,822 16,689 3,609 4,436 1,372 1,739 13,772 40,948 6, ,180 Depreciation Balance at April 1, 2014 (55,245) (6,026) (14,925) (2,695) (2,780) (3,997) - (1,911) (660) (824) - - (1,406) (90,469) Depreciation for the year (20,447) (2,068) (7,443) (740) (1,986) (2,809) - (612) (183) (172) - - (724) (37,184) Write-offs Transfers (38) (1) (68) - 38 (3) Balance at March 31, 2015 (75,730) (8,021) (21,955) (3,435) (4,458) (6,874) - (2,484) (824) (995) - - (2,122) (126,898) Depreciation for the year (21,822) (2,338) (6,642) (788) (1,883) (2,963) - (514) (124) (215) - - (643) (37,932) Write-offs - - 1, ,119 Transfers Balance at March 31, 2016 (97,552) (10,359) (27,146) (4,223) (6,122) (9,416) - (2,998) (948) (1,192) - - (2,755) (162,711) Net book value Balance at March 31, ,416 65,583 17,941 4,427 5,282 9,652 3,573 1, ,367 38,890 3, ,209 Balance at March 31, ,532 68,343 14,811 3,639 4,700 7,273 3,609 1, ,772 40,948 3, ,469 (a) Basically refers to works for the expansion of industrial plant and acquisition of equipment. 33