## ###### Page 2 of 2 Statement of Finantial Position

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1 Statement of Finantial Position CONSORCIO TRANSMANTARO S.A. Statements of Finantial Position as of March 31, 213 and December 31, 212 (In Thousand of Dollars) Account Note March 31, December 31, Assets Current Assets Cash and cash equivalents 8 13,24 7,362 Other financial assets Trade accounts receivable 28,69 23,759 Trade accounts receivable (net) 9 1,881 6,15 Other trade accounts receivable (net) 15,65 15,182 Accounts receivable from related parties 23 1,221 1,221 Prepaid expenses 983 1,251 Supplies and spare parts 1,357 1,358 Biological assets Assets for income taxes Non-finantial assets Total Current Assets and Different Asset Groups to be Classified as Held for Sale or Distribute to 43,71 32,479 Owners Non-current assets or groups of assets Classified as Held for Sale 297 Non-current assets or groups of assets Classified as Held for Distribution to Owners Non-current assets or groups of assets Provision for Classified as held for sale or as held for 297 distribution to owners Total Current Assets hel for sale 43,71 32,776 Non - current assets Other financial assets Investments in subsidiaries, joint ventures and associates Trade accounts receivable 1 12, ,71 Trade accounts receivable (net) 5,67 5,747 Other trade accounts receivable 114, ,963 Accounts receivable from related parties 23 Prepaid expenses Biological assets Investment Propereties Machinery and equipment (net) 2,927 2,942 Intangible assets different than capital gains , ,133 Deferred tax assets Capital gain Non-finantial assets Total non - current assets 742,234 74,785 Total Assets 785,35 773,561 Liabilities and net equity Current Liabilities Other financial liabilities 14 16,293 16,293 Trade accounts payable 1,467 15,613 Trade accounts payable (net) 2, Other trade accounts payable (net) 13 1,621 1,567 Accounts payable to related parties 23 6,8 13,77 Deferred income Provision for employee benefits Other provisions 13 1,153 1,153 Liabilities for income taxes Other non - financial liabilities Total Current Liabilities different than Liabilities included in assets for Groups Disposition Classified 27,913 33,59 as Held for Sale Liabilities included in Group Assets for Disposition Classified as Held for Sale Total Current Liabilities 27,913 33,59 Non - current liabilities Other finantial liabilities ,814 38,11 Trade accounts payable 124, 12, Trade accounts payable (net) Other trade accounts payable (net) Accounts payable to related parties 124, 12, Deferred income Provision for employee benefits Other provisions 13 4,663 3,945 Liabilities for income taxes 15 38,132 37,78 Other non - financial liabilities Total Non - Current Liabilities 483,69 469,124 Total Liabilities 511,522 52,183 Net Equity Capital stock ,49 194,49 Issuance premiums Investment shares Treasury shares Other capital reserves 11,375 9,826 Retained earnings 67,999 67,143 Other equity reserves Total net equity 273, ,378 Total liabilities and net equity 785,35 773,561 ## ###### Page 2 of 2

2 Statement of comprehensive income CONSORCIO TRANSMANTARO S.A. Statements of Finantial Position as of March 31, 213 and March 31, 212 (In Thousand of Dollars) Account Note From January 1 to From January 1 to March 31, Accumulated from January 1 Accumulated from January 1 March 31, to March 31, 213 to March 31, 212 Revenues from ordinary activities Cost of Sales Gain (loss) gross profit Sales and distribution expenses Administrative expenses Gain (loss) on financial assets downward measured at amortized cost Other operating revenues Other operating expenses Other gains (losses) Gain (loss) from operating activities Financial income Financial expenses Foreign exchange gain Other gain (loss) of subsidiaries, joint ventures and associates Gains (losses) arising from the difference between the Book Value Fair Value Previous and Reclassified Financial Assets Measured at Fair Value f ,627 (17,258) 11,369 (598) 1,771 1,385 (7,371) (1,326) 14,539 (5,44) 9,99 (422) 8,677 1,359 (3,56) ,627 (17,258) 11,369 (598) 1,771 1,385 (7,371) (1,326) 14,539 (5,44) 9,99 (422) 8,677 1,359 (3,56) 887 Difference between the carrying amount of the assets distributed and the carrying amount of the dividend payable Profit before income tax Income tax Gain (loss) from continuing operations Gain (loss) from continuing operations net of income tax Net Income Gain (loss) per common share Gain (loss) basic per common share Basic per common share from continuing operations Basic per common share from discontinuing operations Gain (loss) basic per ordinary common share Basic per common share investments in continuing operations Basic per common share investments of in discontinuing operations Gain (loss) per common share investments Gain (loss) per common share diluted Diluted per common share from continuing operations Diluted per common share from discontinuing operations Gain (loss) per common share dilutes Diluted per common share continuing operations investment Diluted per common share discontinuing operations investment Gain (loss) per common share diluted investment 15 3,459 (1,54) 2,45 2,45 7,417 (2,213) 5,24 5,24 3,459 (1,54) 2,45 2,45 7,417 (2,213) 5,24 5, /6/213 3:48:8 p.m. Page 1 of 1

3 Statement of cash flow CONSORCIO TRANSMANTARO S.A. Statement sof Finantial Position as of March 31, 213 (In Thousand of Dollars) Account Note From January 1 to March From January 1 to 31, 213 March 31, 212 Cash flows from operating activities Classes of cash receipts from operating activities Sale of Goods and Service 13,45 13,613 Royalties, fees, commissions, other revenues Contracts held for purposes of dealing or trading Leasing and subsequent sale of those assets Other cash receipts relating to operating activities 6,183 Classes of cash payments for operating activities Suppliers of Goods and Services (7,598) (11,133) Contracts held for purposes of dealing or trading Payments to employees (31) (25) Working or lease acquisition and other assets held for sale Other Cash Payments Related to Operating Activity (434) (622) Net cash and cash equivalents provided by (used in) operations 11,525 1,833 Interest received (not included in the Investment Activity) 1,38 25 Interest expense (not included in Financing Activity) (7,724) (4,63) Dividends received (not included in the Investment Activity) Dividends paid (not included in Financing Activity) Income taxes (paid) refunded (1,429) (753) Other collections (payments) of cash Cash Flows and Cash Equivalent From (Used in) Operating Activities 3,752 (3,345) Cash flow from investment activity Classes of cash receipts from investing activities Repayment of Loans and Advances Loans Granted to Third Parties Loss of control of subsidiaries or other businesses Loan repayments received from related parties Sale Heritage Financial Instruments or Other Entities Debt Contracts Derivatives (futures, forwards, options) Sale of Interests in Joint Ventures, Net of Cash expropriated Sale of Property, Plant and Equipment Sale of Intangible Assets Sale of Other Long-term Assets Government Grants Interest Received Dividends Received Classes cash from investing activities Advances and loans to third parties Get control of subsidiaries or other businesses Loans granted to related parties Purchase Heritage Financial Instruments or Other Entities Debt Contracts Derivatives (futures, forwards, options) Purchase of Subsidiaries, Net of Cash Acquired Purchase of Interests in Joint Ventures, Net of Cash Acquired Purchase of Property, Plant and Equipment (179) Purchase of Intangible Assets (8,928) (3,381) Purchase Other long-term assets Income taxes (paid) refunded Other collection (payments) cash related to investment activity (1,377) (3,589) Cash Flows and Cash Equivalent From (Used in) Investing Activities (1,21) (34,72) Cash flows from financing activities Classes of cash receipts from financing activities: Borrow 13, 71,5 Loans from related parties 4, 5, Changes in ownership interests in subsidiaries that do not result in loss of control Issue of Common Shares Issuance of Other Equity Instruments Government Grants Classes cash from financing activities: Loan Amortization and payment (4,88) (4,665) Finance Lease Liabilities Loans from related parties (43,) Changes in ownership interests in subsidiaries that do not result in loss of control Repurchase or Redemption of Common Shares of the Company (Treasury Shares) Acquisition of other investments in Equity Interest paid Dividends paid Income taxes (paid) refunded Other collections (payments) of cash related to financing activities Cash Flows and Cash Equivalent From (Used in) Financing Activities 12,12 37,835 Increase (Decrease) in Net Cash and Cash Equivalent before Changes in Foreign Exchange Rates 5, Effects of Changes in Foreign Exchange Rates on Cash and Cash Equivalents Increase (Decrease) in Net Cash and Cash Equivalent 5, Cash and Cash Equivalent at Beginning of Year 7,362 7,696 Cash and Cash Equivalent at the End of the Year 13,24 8, /6/213 3:5:55 p.m. Page 2 of 2

4 Consorcio Transmantaro S.A. Notes to the financial statements As of March 31, 213 and December 31, Identification and business activity (a) Identification- Consorcio Transmantaro S.A. (hereafter the Company ) was incorporated in January of The Company is a subsidiary of Interconexión Eléctrica S.A. E.S.P. (company with legal address in Colombia). The Company's legal address is Av. Juan de Arona 722, 6th floor, San Isidro, Lima, Peru. (b) Business activity- The Company s principal business activity is the electric power transmission produced by generating companies. The Company also provides operational and maintenance services to private entities that run transmission lines and sub-stations. The Company s electric power transmission operations are developed in accordance with the Electrical Concession Law and are regulated and supervised by the Supervising Organism of Investment in Energy and Mining (OSINERGMIN for its Spanish acronym). (c) Approval of financial statements- The financial statements at December 31, 212 have been approved by the Board and by the General Meeting of Shareholders on the terms established by law. 2. Concession contract of electrical transmission systems Mantaro-Socabaya concession In January 1998, the Peruvian government (through the Special Committee authorized by Supreme Resolution No PCM of December 3, 1996) awarded the Company a good-pro for granting the electric transmission system concession Mantaro-Socabaya electrical. As a result of award, the Company obtained the right to design, build and commercially exploit the above-mentioned electrical transmission system, together with the responsibility for its maintenance and repair. The concession period is thirty three years starting in February By virtue of the aforementioned award, the Company signed with the Peruvian State the Build, Own, Operate and Transfer contract (named BOOT contract) which establishes the rights and obligations of both parties, as well as the rules and procedures that are in force for the design, supply of goods and services, construction and commercial exploitation of the Mantaro-Socabaya electrical transmission line, as well as the transfer of all the corresponding assets to the Peruvian State at the termination of the concession. The Mantaro-Socabaya transmission line became commercially operative on October 8, 2. From that date, it has rendered a public service of electric power transmission and it is part of the national grid (known by its Peruvian acronym as SINAC). In reward of the service, the Company receives an income corresponding to the established tariff regime in the concession contract. The contract is regulated by the Energy and Mining Superintendence Organism (OSINERGMIN). In reward for its electric power transmission service, the Company receives a fee corresponding to the total transmission cost, which corresponds to the annuity of the carried out investment, including operating and maintenance overheads as well as other outgoings. The remuneration amounts to 179,179,, whilst investments for a total of 157,456,634 have been realized, see note 11(b). During the concession s lifetime, the remuneration is adjusted annually in accordance with the US Finished Goods Less Food and Energy index. The Peruvian State, via the Ministry of Energy and Mines, guarantees that the Energy and Mining Superintendence Organism (OSINERGMIN) will put in place the necessary tariff mechanisms to insure that the remuneration received by the Company in return for their transmission services will be entirely recovered from their customers. Extension N 1 In June of 29, the Company and the Ministry of Energy and Mines signed an addendum to the concession contract detailing an extension to the Mantaro-Socabaya electric transmission line s capacity amounting to 55 MVAR. The service became operational in July 211 and required an investment of 72,654,697, see note 11(b). 1 Chilca- La Planicie- Zapallal concession The Company entered into a concession contract with the Peruvian State on September 8, 28. The contract has been made under

5 BOOT modality, expires after 3 years from the date the service became operational. The service became operational in June of 211 and required an investment of 14,21,636, see note 11(b). Ica-Independencia concession On October 21, 29, the Company entered into a concession contract with the Peruvian State in order to carried out a construction project designated Independencia Ica Transmission Line 22Kw Structural Upgrade (Southern Area Transmission System). The service became operational in June of 211 and required an investment of 1,37,281. See note 11(b). Zapallal-Trujillo concession The Company entered into a concession contract with the Peruvian State on February 18, 21. The contract has been made under BOOT modality, expires after 3 years from the date the service becomes operational, which will occur within 3 months dating from the subscription of the contract. In order to fund the construction of the project, the Company set up a guarantee trust agreement for the Zapallal-Trujillo Project, see note 3. The service became operational in December 212 and required an investment of 27,915,542. See note 11 (b) Talara-Piura concession The Company entered into a concession contract with the Peruvian State on August 26, 21. The contract expires after 3 years from the date the service becomes operational. The project must enter service within 24 months dating from the subscription of the contract. At March 31, 213, the Company had invested a total of 19, 675,961 in this project. See note 11(e). Pomacocha-Carhuamayo concession The Company entered into a concession contract with the Peruvian State on September 27, 21. The contract expires after 3 years from the date the service becomes operational. The project will operate 24 months after the date of subscription of the contract. At March 31, 213, the Company had invested a total of 22, 347,191 in this project. See note 11(e). Trujillo-Chiclayo concession The Company entered into a concession contract with the Peruvian State on May 26, 211. The contract expires after 3 years from the date the service becomes operational. The project will operate 3 months after the date of subscription of the contract. At March 31, 213, the Company had invested a total of 62, 364,674 in this project (58,39,687 as of December 31, 212). See note 11(e). Machupicchu-Cotaruse concession The Company entered into a concession contract with the Peruvian State on December 22, 21. The contract expires after 3 years from the date the service becomes operational. The project must enter service within 24 months dating from the subscription of the contract. During 212, the project was at a stand by as a result of SERNANP s (Peruvian acronym for the National Service of Natural Areas Protected by the State) opinion of negative compatibility with the environment. In January 4, 213, the project became operative with the issuance of Addendum No 1. The new day for the project to become operational was set on January 4, 215. At March 31, 213, the Company had invested a total of 8,157,11 in this project (7,644,918 as of December 31, 212). See note 11 (e). Private Contract - Compañía Eléctrica El Platanal S.A In September 28, Red de Energía del Perú S.A. transferred to the Company the contract that had previously entered into with Compañía Eléctrica El Platanal S.A. (hereafter CELEPSA). As a result, the Company was obliged to construct the El Platanal Chilca transmission line as well as provide an electric energy transmission service to this client. The contract is in force for a period of 2 years. The total investment in the transmission line, which became operational in August 29, amounted to 16,66,85. Private Contract Minera Miski Mayo S.A. In March 29 the Company subscribed a contract with the Miski Mayo mining company. Under the terms of the contract, the Company would construct a transmission line and a Kv sub-station. In addition, an electric energy transmission service would be provided. This contract is in force for a period of 3 years. An amount of 16,88,47 was invested in the transmission line which entered into service in March 21. Private Contracts - Duke Energy S.A. and Kallpa Generación S.A. In July 29 the Company signed two contracts one with Duke Energy S.A. and the other with Kallpa Generación S.A. Under the terms of the contracts, the Company was obligated to construct the 22 Kv cell at the Chilca Nueva sub-station and the Kallpa III 22 Kv cell at the Chilca sub-station, respectively. The Company was also contracted to supply an electrical transmission service. The total 2

6 value of each construction contract amounts to 1,39, and 1,392,21, respectively. Both contracts are in force for 2 years and became operational in May 21. Private Contract - Fenix Power Perú S.A. In August 21 the Company entered into a contract for transmission services with Fenix Power Perú S.A. Under the terms of the contract, the Company was committed to construct a transmission line, a 22 Kv sub-station, and to provide an electrical energy transmission service. The total construction cost amounts to 15, 248,519. The contract is in force for a period of 3 years. The transmission service will begin in April Trusts Guarantee Trust of the Zapallal- Trujillo Project Background Under the terms of the Concession Agreement of Guaranteed Transmission System Reinforcement of the Center Mid North Transmission System of 5 Kv (Electric Transmission Line Zapallal - Trujilllo) the Peruvian State, represented by the Ministry of Energy and Mines, in its role as the licensor granted the Company (the concessionaire) the rights to design, finance, construct, operate and maintain the electric line and to exploit the assets pertaining to the concession, in accordance with the terms set out in the respective contract. In accordance with the conditions stipulated in the Concession Contract, the Company as concessionaire, with a view to complying with the terms therein, is empowered to self-finance or to seek financing through third parties as would best serve its interests. The Company may also set up guarantees underwritten with the concession s assets, the Guaranteed Transmission System concession, transmission flows, or any other asset or right corresponding to the concessionaire, all with the purpose of securing such financing. The Deputy Minister of Energy and Mines, in representation of the licensor, issued the official communication N /MEM- VME dated 29 April, 21. Therein he confirmed the licensor s agreement permitting the Company to transfer or cede its rights or obligations, cede its contractual position, substitute by novation all or any of its obligations pertaining to the concession Contract without prejudice to the concessionaire s obligation to fulfill the terms of the Concession Contract and applicable legislation. Trust Management Contract (a) Description of applied operations On February 1, 211, pursuant to the Trust Management Contract (hereafter the Contract ) subscribed by the Company (hereafter the Settler ) and La Fiduciaria S.A. (hereafter the Fiduciary ), the Trust Fund was established. The Trust Fund is established with a view to subscribe to a syndicated loan contract and with the purpose of administrating the loans or funds that accumulate in the collecting bank, and also to execute and manage the rights and obligations pertaining to the concession contract. These actions shall be implemented in accordance with the terms established in the Trust Management Contract. The Trust Fund became operative on February 17, 211, upon subscription of the syndicated loan contract entered into between the lenders and the Trust Fund. The contract specified a medium-term loan of up to 16,, with repayment scheduled at 1 calendar years from the date of subscription. By 31 March 213, a total of 151,452,483 has been disbursed. Principal and interest payments are effected through incrementing and consecutive quarterly installments, plus a balloon payment to be credited as the final installment; the amount to be repaid and settlement dates are set out in the respective payment schedule, see note 14(d). At March 31, 213 has been made capital payments of U.S. $ 1,657,8. Interest payments by 31 March 213 and 31 December 212 were 2,97,65 y 7,928,351 respectively. (b) Securitized assets - The collateral pertaining to the Trust Fund includes: (a) the rights and obligations that relate to the Zapallal-Trujillo concession contract, (b) disbursements pertaining to the loan contract, (c) goods relating to the concession, (d) collection rights, which together include current and future collection rights, specific or determinable contributions, extraordinary contributions, insurance policies and considerations for transmission services rendered, and finally: (e) cash flows which in conjunction include the total sum of money derived from collection rights. 3 Administrative and Guarantee Trust Contract (a) Description of operations - On February 17, 211, and pursuant to the Administrative and Guarantee Trust Contract (hereafter the Contract ), subscribed

7 by the Company and La Fiduciaria S.A. (hereafter the Fiduciary ), Banco de Crédito del Perú S.A.A. and Bancolombia Puerto Rico International Inc., (hereafter the trustees ) and the Banco de Crédito del Perú S.A.A. (hereafter the Operative Agent ), the Trust Fund is constituted. The purpose of the Contract is to administrate and, if required, take control of the Trust s assets, insofar as these underwrite the faithful and opportune compliance with obligations guaranteed under the terms of the contract, and also constitute an instrument of payment. (b) Securitized assets - The collateral pertaining to the Trust Fund includes: (a) the concessions, which in conjunction include the concession Contract and the Final Transmission concession, (b) collection rights, which together include the right to bill and collect transmission services, collect insurance and to charge connection fees, (c) cash flows which, in conjunction, include transmission, insurance and connection-related cash flows, (d) goods pertaining to the concession, and (e) insurance policies which, in conjunction, include the global policy, the CAR/ER policy, the transport policy and any additional policy that the Company may see fit to contract in the future. Furthermore, the Trust Contract shall remain in force until all the warranted obligations have been fulfilled. However, under no circumstances shall the total term exceed the maximum term of thirty years. At March 31, 213, and according to the relevant articles of incorporation, the Trust Fund s legal domicile is Av. Juan de Arona N 722, floor 6, San Isidro, Lima, Perú. Detailed below is a summary of the principal assets and liabilities pertaining to the Company s financial statements and relating to the Trust Fund operation as of March 31, 213: Asset accounts relating to Trust Fund operations Cash and cash equivalent 631,143 5,49,16 Trade accounts receivable 5,113,381 - Other accounts receivable 1,556,463 2,429,192 Prepaid expenses 1,451,975 1,295,33 Other long-term accounts receivable 7,, 7,, Intangible assets, net 25,763,63 25,222,1 Total asset accounts 221,516, ,436,728 Liability accounts relating to Trust Fund operations Trade accounts payable 682,52 65,18 Accounts payable to related parties 862, ,367 Taxes payable 116,17 117,266 Current portion of long - term financial obligations 6,631,2 6,631,2 Long-term financial obligations 141,916, ,813,222 Other long-term accounts payable 44,514 - Total liabilities accounts 15,253,99 151,91,163 Net assets pertaining to Trust Fund operations 71,263,493 69,526,566 4

8 At March 31, 213 pre-operational outlays and administrative expenses totaled $ 1,736,927 and administrative expenses at December 31, 212 totaled U.S. $ 4, Revenues from power transmission services 6,964,517 Cost of power transmission services 2,35,876 Administrative expenses 44,877 Financial income 1,188 Financial expenses 2,85,58 Foreign exchange gain 72,518 Results pertaining to Trust Fund operations 1,736,927 Detailed below is a summary of the Company s principal cash flow components related to Property in Trust operations occurring at March 31, 213 and December 31, 212: Operating activities Transmission service charges 1,851, Payments to suppliers (4,271,613) (7,531,584) Net cash and cash equivalents used in operating activities (2,42,477) (7,531,584) Investing activities Intangible asset additions (541,53) (68,23,154) Net cash and cash equivalents used in investing activities (541,53) (68,23,154) Financing activities Fiduciaries contributions - - Assumed financial obligations (1,896,956) 77,895,493 Net cash and cash equivalents provided by financing activities (1,896,956) 77,895,493 Net increase in cash and cash equivalent (4,858,963) 2,34,755 Cash and cash equivalents at beginning of year 5,49,16 3,149,351 Cash and cash equivalents as of year end 631,143 5,49,16 Reconciliation net profit against cash flow and equivalent cash flow pertaining to operational activities Pre-operational and administrative expenses 1,736,927 (468,927) Net changes to the asset and liabilities accounts : Net decrease in operational assets Trade accounts receivable (5,113,381) Other accounts receivable 872,729 (8,6,32) Prepaid expenses (156,645) (483,91) Net increase in operational liabilities Accounts payable to related parties companies 119,81 1,221,195 Trade accounts payable 12,813 5,418,958 Net cash and cash equivalents used for operational activities (2,42,477) (2,317,897) 5

9 Guarantee Trust - Trujillo Chiclayo Project Background Pursuant to the Guaranteed Transmission System Concession Contract designated of the Trujillo-Chiclayo at 5 kv Electric Transmission Line Project (Concession Contract), the Peruvian State, represented by the Ministry of Energy and Mines, in its role as of licensor grants the Company (the concessionaire) the rights to design, finance and supply goods and services required, build, operate and maintain the electric line and render services, in accordance with the terms set forth in the Concession Contract and applicable legislation. In accordance with the conditions stipulated in the Concession Contract, the Company as the concessionaire, in order to comply the terms therein, is empowered to self finance or to seek financing through third parties as would best serve its interests. The Company may also set up guarantees underwritten with the concession s assets, the Guaranteed Transmission System Concession, electricity transmission flows, or any other asset or right pertaining to the concessionaire, all with the purpose of securing such financing. The Deputy Minister of Energy and Mines, in representation of the licensor, issued the official communication N /MEM-VME dated August 31, 211. Therein he confirmed the licensor s agreement permitting the Company to transfer or cede its rights or obligations, cede its contractual position, substitute by novation all or any of its obligations pertaining to the concession Contract without prejudice to the concessionaire s obligation to fulfill the terms of the Concession Contract and applicable legislation. Trust Management Contract 6 (a) Description of operations - On December 7, 212, pursuant to the Trust Management Contract (hereafter the Contract ) subscribed by the Company (hereafter the Settler ) and La Fiduciaria S.A. (hereafter the Fiduciary ), the Trust Fund was established. The Trust Fund is established in order to subscribe to a syndicated loan contract and with the purpose of administrating the loans or funds that accumulate in the collecting bank, and also to administer the rights and obligations pertaining to the concession contract. These actions shall be implemented in accordance with the terms established in the Trust Management Contract. The Trust Fund became operative on December 7, 212, upon subscription of the syndicated loan contract entered into between the lenders and the Trust Fund. The contract specified a mid-term loan of up to 1,, with repayment scheduled at 8 calendar years from the date of subscription. As of 31 March 213, a total of 1,, has been disbursed. Principal and interest payments are made through incrementing and consecutive quarterly installments, plus a balloon payment to be credited as the final installment; the amount to be repaid and settlement dates are set out in the respective payment schedule, see note 14(e). As of March 31, 213, no capital repayments had been made. (b) Securitized assets - The collateral pertaining to the Trust Fund includes: (a) the rights and obligations that relate to the Trujillo-Chiclayo concession contract, (b) disbursements pertaining to the loan contract, (c) goods related to the concession, (d) collection rights, which together include current and future collection rights, specific or determinable due to contributions, extraordinary contributions, insurance policies and considerations for transmission services rendered, and finally: (e) cash flows which in conjunction include the total sum of money derived from collection rights. Administrative and Guarantee Trust Contract (a) Description of operations - On December 7, 212, and pursuant to the Administrative and Guarantee Trust Contract (hereafter the Contract ), subscribed by the Company and La Fiduciaria S.A. (hereafter the Settler ), La Fiduciaria S.A. (hereafter the Fiduciary ), Banco de Crédito del Perú S.A.A. (hereafter the trustee ) and Banco de Crédito del Perú S.A.A. (hereafter the Operative Agent ), the Trust Fund was constituted. The purpose of the Trust Fund is to administrate and, if required, take control of the Trust s assets, insofar as these underwrite the faithful and opportune compliance with obligations guaranteed under the terms of the contract, and also constitute an instrument of payment. (b) Securitized assets - The collateral pertaining to the Trust Fund includes: (a) the concessions, which in conjunction include the Concession Contract and the Final Transmission Concession, (b) collection rights, which together include the right to bill and collect transmission services, collect rights and to charge connection fees, (c) cash flows which, in conjunction, include transmission, insurance and connectionrelated cash flows, (d) goods pertaining to the concession, and (e) insurance policies which, in conjunction, include the global

10 insurance policy, the CAR/ER policy, the transport policy and any additional insurance policy that the Company may see fit to contract in the future. Furthermore, the Trust Contract shall remain in force until all the warranted obligations have been fulfilled. However, under no circumstances shall the total term exceed the maximum term of 3 years. Detailed below is a summary of the principal assets and liabilities pertaining to the Company s financial statements and relating to the Trust Fund operation as of March 31, 213: Asset accounts relating to Trust Fund operations Cash and cash equivalent 2,534, ,729 Other accounts receivable 2,544,77 2,141,946 Prepaid expenses 246, ,61 Intangible assets, net 6,451,91 56,477,923 65,777,55 59,322,199 Liability accounts relating to Trust Fund operations Trade accounts payable 182,735 12,745 Accounts payable to related parties 1,734,769 8,4,533 Interest payable 158,285 - Long Term financial obligations 21,732,184 8,834,51 Total liabilities accounts 23,87,973 17,337,788 Net assets pertaining to Trust Fund operations 41,969,577 41,984,411 At March 31, 213, disbursements pertaining to pre-operating outlays and administrative expenses totaled 14,834 and at December 31, 212 totaled 15,589. 7

11 Detailed below is a summary of the Company s principal cash flow components that relate to Trust Fund operations at March 31, 213: 213 Operating activities Payments to suppliers (6,752,81) Net cash and cash equivalents from operational activities (6,752,81) Investing activities Additions of intangible asset (3,973,897) Net cash and cash equivalents used in investment activities (3,973,987) Financing activities Trustee contributions - Assumed financial obligations 12,897,674 Net cash and cash equivalents provided by financing activities 12,897,674 Net increase in cash equivalents 2,17,886 Cash and cash equivalents at beginning of year 363,729 Cash and cash equivalents as of year - end 2,534,615 Reconciliation net profit against cash flow and equivalent cash flow pertaining to operational activities Pre operational and administrative expenses (14,834) Net changes to the asset and liabilities accounts: Other accounts receivable (42,823) Prepaid expenses 92,346 Net increase in operational liabilities Trade accounts payable (6,665,764) Accounts payable to related parties companies 79,99 Interest payable 158,285 Net cash and cash equivalents from operational activities 6,752,81 8

12 4. Summary of significant accounting policies 4.1. Basis of preparation Compliance statement - The financial statements of the company have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), in force at March 31, 213. Responsibility for the information - The information contained in these financial statements is the responsibility of the Company s Management, which expressly state that have fully implemented the principles and criteria contained in the International Financial Reporting Standards (IFRS) issued by the IASB. Measurement basis - The financial statements have been prepared on a historical cost basis, from the accounting records kept by the Company. The financial statements are presented in United States dollars, the functional and presentation currency of the Company Significant accounting judgments, estimates and assumptions The preparation of the Company s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods. (a) Significant judgments - In the process of applying the Company s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the financial statements: (i) Identification of the concession as an intangible asset (see note 11) - Based on its analysis of IFRIC 12 Service Concession Agreements, the Company decided to use the intangible asset model to register transmission lines concessions granted by the Peruvian state. According to Company's Management, although the remuneration for the Company s transmission service is determined annually by the Peruvian government during the term of the concession, the concession contracts do not establish obligations by the Peruvian government to take responsibility for the payment of the duties assigned to each service user as a result of the annual provision of transmission services, since the obligation is on the users of the service provided. That is, once the compensation is allocated to service users, there is no mechanism established in the Concession Agreement unconditionally guaranteeing that the collection of the rights generated by the transmission service is assumed by the Peruvian State for breach of service users. As a result of the above considerations, Company Management concludes that although the Peruvian State provides for the assignation of the service to each end-user it does not guarantee the payment of the corresponding service fee. Therefore, and in accordance with the IFRIC 12 Service Concession Arrangements, the Company considers its concessions as intangibles assets. (ii) Trust Management Obligations (see note 3) The Company has subscribed a trust management contract with a view to financing the construction the Zapallal-Trujillo and Trujillo Chiclayo transmission line. On the basis of an evaluation of the agreed terms, Company Management determined that the risks and benefits of the concession Contract had not been transferred in their entirety. Similarly, the Company had not ceded control of the concession Contract. Given the circumstances, the Company also recognizes and records liabilities that relate to subsequent assumed obligations. The transferred asset and the related liability are measured so they reflect those rights and obligations retained by the Company. See note 3. (b) Estimates and assumptions - The most significant estimates and assumptions in relation with the preparation of the financial statements are described below: (i) Impairment of non-financial assets (see note 11(g)) - The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset s recoverable amount. 9

13 At the reporting date, there are available projections of those variables which show favorable trends in a view of the Company s objectives. These projections support the recoverability of its long - lived assets. (ii) Provision for significant maintenance and replacement costs The provision for maintenance and replacements represents the present value of the costs of significant maintenance and replacement outlays expected during the remaining lifetime of the concession. This provision corresponds mainly to those expenses necessary in order to maintain the transmission line s infrastructure in the operative conditions demanded by the Peruvian State and set out in the corresponding concession contract. The provision is calculated by the Transmission Management staff and is based on an assessment of factors relating to the condition and age of the transmission lines and sub-stations. The evaluation includes both a qualitative analysis that incorporates climate factors, the number of technical faults and technical inspections and a quantitative analysis (samples, physical-chemical analysis, and laboratory). Budget estimates are reviewed annually and take into consideration any material changes to previous projections. However, it should be pointed out that significant upkeep and replacement outlays are dependent upon market prices, maintenance activity and the price of required equipment as affected by future economic conditions. Based on the capital expenses budget previously approved by the Board, the financial planning staff indexes cash outflows by inflation and updates budget flows by applying an annual risk-free rate that takes into consideration market conditions and the specific risk of the related liability. The principal criteria and assumptions used for calculating the provision for significant maintenance and replacement are set out in note 13 (b). (iii) Taxes (see note 17) - Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the nature of the long-term concession contract and the complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective counties in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective Company's domicile. As the Company assesses the probability for litigation and subsequent cash outflow with respect to taxes as remote, no contingent liability has been recognized. (iv) Recoverability of the deferred income taxes (see note 15) - Significant management judgment is required to determine the amount of deferred tax assets that can be recognized in the statement of financial position. The deferred income taxes require the Management assesses if is probable that taxable profit will be available in future periods in order to use the recorded deferred tax asset. The estimate future taxable profit is based on the projections of the operative cash flows and the applying of the corresponding tax laws in each jurisdiction. If the future cash flows and the taxable profit are significantly different from the estimates, such situation could have an impact in the Company s capacity to recover the net deferred tax asset recorded at the reporting date. In addition, future changes in tax laws could limit the Company s capacity to obtaining tax deductions in future periods. Any difference between the estimates and subsequent real outflows is recorded in the period in which occur. In Management opinion, the estimates included in the financial statements were effected take into consideration the best knowledge of the relevant facts and circumstances at the reporting date. However, the final results could be different from the estimates included in the financial statements Summary of significant accounting policies (a) Financial instruments: initial recognition and subsequent measurement (i) Financial assets - Initial recognition and measurement - 1

14 11 Financial assets within the scope of IAS 39 are classified as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, available-for-sale financial assets, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The Company determines the classification of its financial assets at initial recognition and when appropriate, the Company assesses this classification at the end of each year. All financial assets are recognized initially at fair value plus transaction costs, except in the case of financial assets recorded at fair value through profit or loss. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e., the date that the Corporation commits to purchase or sell the asset. The Company s financial assets include cash and cash equivalent, trade and other receivables and account receivables from related parties. Subsequent measurement - The subsequent measurement of financial assets depends on their classification as described below: Financial assets at fair value through profit - Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments as defined by IAS 39. Financial assets at fair value through profit and loss are carried in the statement of financial position at fair value with net changes in fair value recognized in finance costs in the statement of comprehensive income. The Company did not have financial assets at fair value through profit as of March 31, 213. Loans and receivables - The Company s financial assets include cash and cash equivalents, trade and other receivables, and account receivables from related parties, which are stated at the value of the transaction less impairment loss, if applicable. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not traded in an active market, for which the Company has no intention to sell immediately or in the near future and have no risk of recovery different than that of credit impairment. After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate method, less any impairment loss. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortization is included in finance income in the statement of comprehensive income. The losses arising from impairment are recognized in the statement of comprehensive income as finance costs. Held-to-maturity investments - Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held-to maturity when the Company has the positive intention and ability to hold them to maturity. After initial measurement, held-tomaturity investments are measured at amortized cost using the effective interest rate, less impairment loss. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortization is included in finance income in the statement of comprehensive income. The losses arising from impairment are recognized in the statement of comprehensive income in finance costs. The Company did not have any held-to-maturity investments during the years ended 31 March 213. Available-for-sale financial investments - Available-for-sale financial investments include equity investments and debt securities. Equity investments classified as

15 available-for-sale are those that are neither classified as held for trading nor designated at fair value through profit or loss. Debt securities in this category are those that are intended to be held for an indefinite period of time and that may be sold in response to needs for liquidity or in response to changes in the market conditions. After initial measurement, available-for-sale financial investments are subsequently measured at fair value with unrealized gains or losses recognized as other comprehensive income in the available-for-sale reserve until the investment is derecognized, at which time the cumulative gain or loss is recognized in other operating income, or the investment is determined to be impaired, when the cumulative loss is reclassified from the available-for-sale reserve to the income statement in finance costs. When, in rare circumstances, the company is unable to determine a fair value due to inactive markets, or relevant information for its determination, these financial assets are shown at cost. The Company did not have any available-for-sale financial investments during the years ended 31 March 213. Derecognition - A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized when: - The rights to receive cash flows from the asset have expired; The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Company has transferred its contractual rights to receive cash flows from an asset or has entered into a passthrough arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the asset is recognized to the extent of the Company s continuing involvement in the asset. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay. (ii) Financial liabilities - Initial recognition and measurement - Financial liabilities within the scope of IAS 39 are classified as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The Company determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognized initially at fair value plus, in the case of loans and borrowings, directly attributable transaction costs. The Company s financial liabilities include trade and other payables, loans and borrowings, financial guarantee contracts and accounts payable to related parties. The financial liabilities are recognized when the Company is involved in the contractual agreements of the instrument. Financial liabilities are classified as short-term obligations, unless the Company has the absolute right to defer the agreement of the obligations for more than twelve months after the date of the statement of financial position. Financing costs are recorded on an accrual basis including commissions related to the acquired financing. Subsequent measurement The subsequent measurement of financial liabilities depends on their classification as follows: Financial liabilities at fair value through profit or loss - Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. 12