HRT Released Information about Relationship with Independent Auditors
OREANDA-NEWS. HRT Participates em Petroleo S.A. (the "Company" or "HRT”) (BM&FBOVESPA: HRTP3, TSX-V: HRP) in compliance with CVM Instruction N° 381/03, hereby announces: 1) In 2012, the Company paid fees to Ernst & Young Terco the total amount of BRL 3,611,000, which includes the external audit services required (ITRs) in the amount of USD 591,000 representing 16.36% of total and USD 3,020,000 relating to other services described below.
2) Other specific jobs for assessment, monitoring, consulting and presentations for management, whose characteristics are summarized as follows:
Contract date |
Time |
Description |
Contract Amount |
% on the fees of external audit services (BRL 591.000,00) |
24th 2012 |
6 months |
Assistance of the implementation of corporate restructuring in foreign subsidiaries - HRT Canada. |
USD 300.000,00 BRL 600.000,00 |
101,52% |
6th 2012 |
4 months |
Assistance of planning of corporate restructuring in foreign subsidiaries - detailed plan of steps to Farm Out in assets in Namibia. |
USD 70.000,00 BRL 140.000,00 (aproximatelly) |
23,69% |
March 6th 2012 |
1 month |
Review of the status of the Company in the United States of America as the classification as "Passive foreign investment company" (PFIC) or "Controlled Foreign Corporate" (CFC). |
USD 30.000,00 BRL 60.000,00 (aproximatelly) |
10,15% |
April 19th 2012 |
2 months |
Assistance of of the implementation of the corporate restructuring in foreign subsidiaries, Namibia. |
USD 590.000,00 BRL 1.180.000,00 (aproximatelly) |
199,66% |
June 1st 2012 |
1 month |
Analysis of best practices for managing the group's subsidiaries HRT. |
USD 30.000,00 BRL 60.000,00 (aproximatelly) |
10,15% |
27th 2012 |
2 months |
Analysis of compliance to tax law of service contracts between subsidiaries with assets in Namibia. |
USD 250.000,00 BRL 500.000,00 (aproximatelly) |
84,60% |
October 19th 2012 |
1 month |
Assistance of evaluating the potential effects arising from international tax potential farm out assets abroad. |
USD 40.000,00 BRL 80.000,00 (aproximatelly) |
13,54% |
November 14th 2012 |
1 month |
Review of management's assessment of the potential effects of proposed contract to farm out assets abroad. |
USD 200.000,00 BRL 400.000,00 (aproximatelly) |
67,68% |
TOTAL |
BRL 3.020.000,00 |
511% |
The non-audited services provided by the auditors do not affect the restrictions of with CVM Instruction N° 381/03.
According to a declaration from the auditors, the reasons for concluding that the non-audited services provided do not affect the independence and objectivity, among others, includes:
• The fees were structured on the basis of hours incurred on each project. No contingent fees;
• There were no circumstances in which Ernst & Young Terco has acted on behalf of or under the supervision of the Administration;
• There were no circumstances in which Ernst & Young Terco has audited their own work;
• The services do not involve the preparation of accounting records or the preparation of financial statements and,
• The services do not involve the calculation of taxes to be collected or recorded by the Company.
In our relationship with the Independent Auditor, we evaluate the conflict of interests with nonaudit work based on the following: the auditor shall not (a) audit its own work, and (b) exercise managerial functions and (c) promote our interest.
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