Shareholders:
We inform that this time we are not able to prepare and present the Sivensa’s consolidated financial statements adjusted for inflation at March 31 2015, in accordance with the International Financial Reporting Standards (“IFRS”), whose application is mandatory for the entities regulated by the National Superintendence of Securities and therefore, to perform and publish the analysis of the consolidated results of Sivensa corresponding to the quarter ended on said date, as the Central Bank of Venezuela (BCV) has not issued at the date of this letter, the National Consumer Price Index (“NCPI”) corresponding to the months of January, February and March 2015. In this regard we communicate that the application of said standards, specifically the International Accounting Standard No. 29 (IAS 29) which requires that the financial statements of certain entities are adjusted for inflation and to that end it calls for the use of a general price index reflecting the changes in the general buying power of the local currency. The NCPI is the general price index utilized in Venezuela for the restatement of the financial statements adjusted for inflation in Venezuela.
As we informed in our previous quarterly report issued on January 30, 2015, the Directory of the Federation of Colleges of Venezuelan Public Accountants, in its special session of December 25 2014, indicated that because there is a delay in the issuance of the NCPI, the Companies which require issuing financial information of general year-end closingprocess or intermediate periods, must estimate the impact of the inflation onthe financial situation and the result of their operations at the date being reported. Nevertheless, said communication also indicates that the process of reasonable estimate implies the utilization of judgments based on the most recent reliable information available; consequently each entity must evaluate within this context, the base to be used for the best estimate that it needs to determine, considering that the financial information presented must comply, among others, with the characteristic of reliability.
Considering our comments in the previous paragraphand that the last NCPI published by the BCV to the date of this letter is the one corresponding to the month of December 2014, our management considers prudent: i) Not to realize the estimate of the NCPI corresponding to the months of January, February and March 2015, since this would imply the estimate of all the inflation indices of the quarter to be reported and ii) to differ the issuance and publication of the 2 Sivensa’s consolidated financial statements, adjusted for inflation at March 31 2015 and the analysis of the Sivensa’s consolidated results belonging to the quarter ended on said date, until the BCV publishes the NCPI of the months of January, February and March 2015.
Caracas, April 30 2015
THE BOARD OF DIRECTORS