EFTA Document EFTA01366820

Amendment #4 Page 391 of 868 ishe Controb Centres Edicas fdo Verde S A Cenoas &dices Serra do Salto S A Centres ECXECas Guirapa S A Tte Group preserted negative working cape at for Meta) 31, 2015 welch, based on the Company's analysis wit be solved by as own °pennon The negative working tante' is reduorg oat*, 2. Basis of presentation The unsuited condensed combned icemen financial deterrents for ere threemonth periods ended March 31. 2015 and 2014 have been prepared in accordance YAM International Accounting Standard 34 •Intenm Financial Reporting' ('lAS 34) and are presented on a condensed basis as permtted by IAS 34 Therefore, they do not in duae all disclosues that would itemise be required in a full set d Inancial stateneMs They srodd be ready in conjunction with the Group's comtmed framel statements as of and for the years ended December 31. 2014 and 2013 The Group has applied the same abecenting policies, presentabon arc methods of calcutstion as those followed in the preparation of the Group's corribmed financial statements as d and for Vie years ereled December 31. 2014 and 2013, which were prepared in accortbroe with 'dominions' Financial Reporting Standards CIFRS1 as issued by the International Mooting Standards Board The Grovels° follow the guidance in the Acootreirg Manual for the Branton Electricity industry and standards established by time Brazilian National Agency for Electric Energy (Agerria Nacional de &Nava &alma- ANEEL) Renova arc its &Noted entities. together with the cost allocations is included in note 14 to the condensed combined intetim financial statements The condensed combined interim financial statements with respect to the Group is reflected in the in:ndue' legal entities that comprise the Group, wrsch were all under the common control and management of Renate for all periods Resented These cordersed contorted Wenn frontlet statements have been prepared from the accountng records of Rerova and reflect the cash flows. town ies. expenses, assets, and babilitos of these individual legal edema All transacbons and balances between the individual legal ernes within the Group Nwe been eliminated in combination Because the separate legal enema that compose the Group were not and are rot held by a °Vie legal entity, Parents net uwestment is shown ri lieu of shareholders' equity in these condensed combined interim fine noel statements Parent's net investment represents the cumulmwe net investment by Renova in the Group through that date. The impact of transactors between the Group and Renova that were not htStOrtally settled in cash, including certain intercompany loans, are also included in Parent's net investment (see rote 14) Dying the periods presented, the Group functioned es pert of the larger group of companies controlled by Renova, and accordingly, Renova performed certain operating and corporate overhead functions for the Group These functions ectude, but are not anted to, executive oversight, legal trance, human resources, InkfrnatiOn technolegy, internal audit, financial reporting, tax planning arc investor relations The meta of such services have been allocated to the Group based on the most relevant &beat on Metod to the service wooded, pOrnanly based on reative percentage of revenue, installed capacity or headcount Management [Coves such allocations are reasonable, however, they may no be indicauve of the actual expense that woud rave been minted had the Group been operating as a separate entity apart from Rerdea The cost aeccated for these !moons is included in general and admnstratrre expenses in Ire cordoned income statements for the historical periods presented A complete discussion of the Group's reasons/Newel Renova and its debated eNees together with the cost allocabons, is included in note 14 to the condensed combined interim financial statements. F.71 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058348 CONFIDENTIAL SDNY_GM_00204532 EFTA01366820