Edgar Filing: Cosan Ltd.

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of June, 2012

Commission File Number: 1-33659

COSAN LIMITED

(Translation of registrant’s name into English)

Av. Juscelino Kubitschek, 1726 – 6th floor

São Paulo, SP 04543-000 Brazil

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F

Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes

COSAN LIMITED

Item
1.	Financial Letter for the 4th Quarter and Fiscal Year 2012
2.	Cosan Limited – Consolidated Financial Statements March 31, 2012 and 2011
3.	Cosan S.A. Indústria e Comércio – Consolidated Financial Statements March 31, 2012 and 2011

Item 1

Important transformations and

solid results marked FY12

São Paulo, May 30, 2012 – COSAN LIMITED (NYSE: CZZ; BM&FBovespa: CZLQ11) and COSAN S.A. INDÚSTRIA E COMÉRCIO (BM&FBovespa: CSAN3) announce today their results for the fourth quarter and fiscal year 2012 (4Q12 and FY12), ended March 31, 2012. The results for 4Q12 and FY12 are consolidated in accordance with the accounting practices adopted in Brazil (IFRS).

Marcelo Martins CFO & IRO Guilherme Machado IR Manager Phillipe Casale IR Analyst ri@cosan.com.br www.cosan.com.br/ir	4Q12 and FY12 Highlights


	●	Consolidated revenue grows 33.4% to R$ 24.1 billion.

	●	Raízen Combustíveis reaches EBITDA margin record of R$70.5/cbm in 4Q12 (excluding non-recurring effects)

	●	Raízen Energia records EBITDA margin above 30% for the year

	●	Growth of 27.7% in Rumo’s net revenue for FY12

	●	Cosan Lubrificantes e Especialidades continues internationalization process and acquires operation in the United Kingdom

				Summary of Financial Information – Cosan Consolidated
	4Q12		4Q11	Amounts in R$ MM	FY12	FY11
	5,793.9		4,609.3	Net Operating Revenue	24,096.9	18,063.5
	642.1		1,137.1	Gross Profit	2,631.9	2,913.4
Definitions: 4Q12 – quarter ended March 31, 2012 4Q11 – quarter ended March 31, 2011 FY12 – fiscal year beginning on April 1, 2011 and closing on March 31, 2012 FY11 – fiscal year beginning on April 1, 2010 and closing on March 31, 2011	11.1%		24.7%	Gross Margin (%)	10.9%	16.1%
	148.4		725.8	Operating Profit	4,195.9	1,312.6
	367.4		1,029.5	EBITDA	5,338.7	2,672.3
	6.3%		22.3%	EBITDA Margin (%)	22.2%	14.8%
	467.8		1,029.5	Adjusted EBITDA¹	2,142.1	2,672.3
	8.1%		22.3%	Adjusted EBITDA Margin (%)	8.9%	14.8%
	148.8		486.8	Net Income before Minority Shareholders	2,644.8	776.6
	149.6		480.9	Net Income	2,605.8	771.6
	2.6%		10.4%	Net Margin (%)	10.8%	4.3%

	613.3		1,290.7	CAPEX2	2,136.5	3,037.2
	3,081.7		5,262.7	Net Debt	3,081.7	5,262.7
	9,616.4		6,784.3	Equity and Non-controlling Interests	9,616.4	6,784.3

	Note 1: Net of the effects of Raízen’s formation Note 2: Net of acquisition of interest in other companies and of cash received from disinvestment

Message from the CEO

The fiscal year of 2011/2012 was transformational for Cosan in several aspects.

We achieved significant results and underwent major changes in our business profile which have made us more resilient to market adversities.

In June of 2011 we completed the formation of Raízen, our partnership with Shell. After 10 months of operations, Raízen has presented some impressive growth in its results.

In July of 2011 we transformed Cosan Alimentos into an independent company, shortly after we acquired that business from Raízen. Cosan Lubrificantes & Especialidades turned to international markets with the acquisition of operations in Bolivia, Uruguay and Paraguay in October of 2011 and, in March of 2012, it signed an agreement to acquire the UK based company Comma Oil and Chemicals Limited, a subsidiary of ExxonMobil.

Our strategy is to be a leading Brazilian group on the Energy and Infrastructure businesses. Towards this end, in February of 2012, we announced our intention to buy a stake in the controlling block of America Latina Logística – ALL and in May of 2012, we signed the final agreement for the acquisition of BG Group’s interest in Comgás. As part of our strategy of focusing on these core businesses, we entered into a partnership with Camil, where Cosan Alimentos will be merged with a company that seeks to become a leader in the Brazilian food industry. This partnership will create a powerhouse in the sugar, rice and canned fish businesses. We believe that we can contribute to Camil’s governance but the company’s management will remain under Camil’s current controlling group, which has an unquestionable track record in the food retail business.

Cosan believes three important factors could contribute to create value in all of its operations: (1) optimizing its operating efficiencies; (2) capturing opportunities to grow organically its businesses; and (3) maximizing investments by using its holdings in the companies in which it participates.

Through these recent strategic movements we reaffirm our commitment with value creation, as well as responsible growth. Our main focus is to balance return on invested capital with growth in dividend yields, which will grow for the third consecutive year.

With these new investment opportunities we will vigorously pursue a higher level of value creation for our investors.

Marcos Marinho Lutz

CEO

A. Business Units

As we did in previous quarters, we dedicate a specific section to each business unit with key production data and analysis of its results, from Net Revenue to EBITDA.

Our business units are as follows:

Below we present the results by business unit for the fourth quarter and crop year 2011/2012 for all Cosan Group’s business units, as mentioned above. All information reflects 100% of our business units’ financial performance, regardless of Cosan’s interest in them. Specifically for FY12, which represents April of 2011 to March of 2012, Raízen Combustíveis and Cosan Alimentos results are presented on a pro forma basis so as to allow for comparability.

Results by Business Unit Amounts in R$ MM	Raízen Energia			Raízen Combustíveis			4Q12 Cosan Alimentos			Rumo			Other Business
Net Operating Revenue		1,193.2			9,982.0			199.2			74.3			270.9
Cost of Goods and Services		(757.1	)		(9,316.7	)		(182.6	)		(77.4	)		(193.0	)
Gross Profit		436.1			665.3			16.6			(3.1	)		77.9
Gross Margin (%)		36.6	%		6.7	%		8.3	%		-4.2	%		28.8	%
Selling Expenses		(77.6	)		(390.8	)		(25.3	)		-			(38.3	)
General and Administrative Expenses		(136.6	)		(111.2	)		(3.5	)		(11.7	)		(43.0	)
Other Operating Revenues (Expenses)		8.7			89.0			6.0			9.0			5.7
Effects of Raízen's Formation		-			-			-			-			(100.3	)
Depreciation and Amortization		258.0			98.6			0.5			26.5			13.8
EBITDA		488.7			350.9			(5.7	)		20.6			(84.2	)
EBITDA Margin (%)		41.0	%		3.5	%		-2.9	%		27.8	%		-31.1	%
EBITDA Margin (R$/cbm)		-			67.6			-			-			-
Adjusted EBITDA		488.7			350.9			(5.7	)		20.6			16.1
Adjusted EBITDA Margin (%)		41.0	%		3.5	%		-2.9	%		27.8	%		5.9	%

Results by Business Unit Amounts in R$ MM	Raízen Energia			Raízen Combustíveis (Pro forma)			FY12 Cosan Alimentos (Pro Forma)			Rumo			Other Business
Net Operating Revenue		7,247.7			39,691.8			941.6			572.0			1,065.5
Cost of Goods and Services		(5,578.3	)		(37,455.7	)		(752.5	)		(394.1	)		(732.9	)
Gross Profit		1,669.4			2,236.1			189.1			177.9			332.6
Gross Margin (%)		23.0	%		5.6	%		20.1	%		31.1	%		31.2	%
Selling Expenses		(511.4	)		(1,216.7	)		(110.6	)		-			(187.5	)
General and Administrative Expenses		(454.0	)		(405.7	)		(17.7	)		(41.6	)		(132.8	)
Other Operating Revenues (Expenses)		(18.2	)		283.3			6.8			19.5			(11.9	)
Effects of Raízen's Formation		-			-			-			-			3,196.6
Depreciation and Amortization		1,550.0			377.1			1.7			57.3			48.4
EBITDA		2,235.7			1,304.9			69.3			213.2			3,245.3
EBITDA Margin (%)		30.8	%		3.3	%		7.4	%		37.3	%		304.6	%
EBITDA Margin (R$/cbm)		-			62.4			-			-			-
Adjusted EBITDA		2,235.7			1,304.9			69.3			213.2			48.7
Adjusted EBITDA Margin (%)		30.8	%		3.3	%		7.4	%		37.3	%		4.6	%

B.1 Raízen Energia

The following are the results for Raízen Energia, whose core business is the production and sales of a variety of products derived from sugarcane, including raw sugar (Very High Polarization - VHP), anhydrous and hydrous ethanol, as well as activities related to energy cogeneration from sugarcane bagasse.

Production Figures

In 4Q12, Raízen Energia operated 24 sugar, ethanol and energy cogeneration mills, with a sugarcane crushing capacity of 65 million tonnes of sugarcane per crop year.

		Operational Figures
4Q12	4Q11		FY12			FY11
-	77	Crushed Sugarcane		52,958			54,238
-	-	Own (‘000 tonnes)		26,528			27,400
-	77	Suppliers (‘000 tonnes)		26,430			26,838
-	136.1	Sugarcane TSR (kg/tonne)		136.5			138.5
-	-	Mechanization (%)		85.9	%		79.5	%
		Production
-	3	Sugar		3,969			3,923
-	2	Raw Sugar (‘000 tonnes)		2,426			2,517
-	1	White Sugar (‘000 tonnes)		1,543			1,406
-	3	Ethanol		1,921			2,202
-	-	Anhydrous Ethanol (‘000 cbm)		688			686
-	3	Hydrous Ethanol (‘000 cbm)		1,233			1,516

The final balance of the 2011/2012 crop in Brazil’s Central-South region shows a crop disruption of 11.4% compared to 2010/2011, according to data from UNICA. Also, only 10 production units were still operating in the first fifteen days of January.

The 24 mills of Raízen Energia had already stopped operating by the end of November, and did not record crushing activities in 4Q12. In FY12, crushing totaled 53 million tonnes, a decrease of 2.4% compared to FY11, due to adverse weather conditions that severely affected the Central-South region in the period.

The level of harvesting mechanization for Raízen’s sugarcane reached 85.9% in FY12, reflecting the investments made to improve agricultural efficiency. Drought affected the sugarcane in the beginning and at the end of the harvest season in FY12, resulting in a sugarcane TSR level of 136.5 kg/ton, a decrease of 1.4% compared to FY11 (138.5 kg/ton).

For the second year in a row, Raízen Energia has renewed its sugarcane fields (own sugarcane) at a rate of more than 20%, lowering the average age of the sugarcane to 3.4 years. Raízen Energia reached a market share of 10.7% in the Central-South region, considering effective crushing at the end of the harvest. Raízen Energia’s production mix in FY12 was more concentrated in sugar, which account for approximately 56% of the sugarcane crushed in the period.

Net Revenue

4Q12	4Q11	Net Revenue Breakdown Amounts in R$ MM	FY12		FY11
1,193.2	1,674.0	Net Operating Revenue		7,247.7		6,389.2
665.6	985.1	Sugar Sales		3,912.8		3,853.4
258.8	372.0	Domestic Market		1,217.4		1,387.3
406.9	613.2	Foreign Market		2,695.4		2,466.2
501.5	666.7	Ethanol Sales		2,871.5		2,203.7
364.0	641.0	Domestic Market		2,245.1		1,958.9
137.5	25.8	Foreign Market		626.5		244.8
1.3	2.3	Energy Cogeneration		235.1		186.0
24.8	19.8	Other Products and Services		228.2		146.0

Raízen Energia recorded net revenue of R$1.2 billion in 4Q12, a decrease of 28.7% over the R$1.7 billion in 4Q11. This reduction is mainly explained by lower volumes of sugar and ethanol sold in 4Q12 (down 25.2% and 23.4% respectively) as compared to 4Q11.

Year-on-year, however, net revenue rose 13.4% from R$6.4 billion in FY11 to R$7.2 billion in FY12 as the result of increased revenue from all products and services due to well-designed strategies to anticipate market changes.

Sugar Sales

Revenue from sugar sales rose 1.5% in FY12 over FY11, totaling R$3,912.8 million, representing 54% of Raízen Energia’s total net revenue.

Quarter-on-quarter, net revenue from sugar sales dropped 32.4% as compared to the R$985.1 million in 4Q11 to R$665.6 million in 4Q12.

This R$319.5 million decrease in 4Q12 was due to the following factors:

●	A decrease of 25.2% in the total volume of sugar sold due to advanced sales to the foreign market in FY12, resulting in a total reduction of R$224.8 million, mostly concentrated in 4Q12.

●	A decrease in the average sugar sales price, which was down 9.6% from R$1,048.1/tonne in 4Q11 to R$947.3/tonne in 4Q12, causing a R$94.7 million drop in total revenue.

The sugar sales mix continued to be concentrated in exports in 4Q12 due to prices on foreign markets more attractive than on the local market, and exports represented 68.8% of total revenue from sugar sales in FY12.

Sugar Inventories

Sugar Inventories
	4Q12	4Q11
´000 tonne	156.6	97.7
R$'MM	107.0	77.6
R$/tonne	682.9	794.3

Ethanol Sales

Raízen Energia’s net revenue from ethanol sales totaled R$2.9 billion in FY12, up 30.3% over FY11 (R$2.2 billion), mostly driven by the 32.2% average price increase to R$1,296.1/cbm in FY12, as compared to R$980.6/cbm in FY11.

Quarter-on-quarter, net revenue dropped 24.8% from R$666.7 million in 4Q11 to R$501.5 million in 4Q12.

This R$165.2 million decrease is basically due to the following factors:

●	A 1.9% reduction in the average ethanol sales price from R$1,262.7/cbm in 4Q11 to R$1,239.2/cbm in 4Q12, representing a decrease of R$12.4 million in net revenue from ethanol sales.

●	A 23.4% drop in the volume of ethanol sold in 4Q12 versus 4Q11, causing net revenue to fall R$152.9 million.

This decrease in ethanol prices in 4Q12 was due to the greater supply of the product in the Brazilian market vis-à-vis the demand expected for the quarter, driven by higher imports than the necessary to supply the domestic market with anhydrous ethanol to be blended in gasoline (since October of 2011 this mix has been 20%).

Ethanol Inventories

Ethanol Inventories
	4Q12	4Q11
´000 cbm	79.1	49.6
R$'MM	87.9	42.8
R$/cbm	1,111.3	862.9

Energy Cogeneration

In FY12, net revenue from energy sales were R$235.1 million, representing an increase of 26.4% over FY11’s R$186 million. Volume sold reached 1,491.3 thousand MWh at an average price of R$157.7/MWh.

The price of energy sold grew from FY11 to FY12 and the volume of energy sold rose 18.9% in the period, chiefly due to the operational start-up of the cogeneration plants at the Jataí, Barra, Univalem and Ipaussu units that added 258 MW to Raízen Energia’s total capacity. Of Raízen Energia’s 24 mills, 11 sell energy from cogeneration.

Other Products and Services

Raízen Energia recorded revenue from other products and services of R$228.2 million in FY12, an increase of 56.3% over FY11, when revenue amounted to R$146.0 million. These revenues derive basically from the sale of steam, molasses, and raw materials to service providers in the agricultural industry.

Cost of Goods Sold

4Q12		4Q11		COGS per Product Amounts in R$ MM	FY12			FY11
(757.1	)	(769.9	)	Cost of Goods Sold (COGS)		(5,578.3	)		(4,400.5	)
(430.9	)	(657.1	)	Sugar		(2,802.1	)		(2,609.1	)
(405.3	)	(523.7	)	Ethanol		(2,454.0	)		(2,016.1	)
(0.1	)	(1.4	)	Energy Cogeneration		(86.1	)		(102.3	)
79.3		412.3		Other		(236.0	)		327.1
				Average Unitary Costs³
(458.9	)	(593.8	)	Cash cost of sugar (R$/tonne)		(523.8	)		(496.2	)
(714.7	)	(717.9	)	Cash cost of ethanol (R$/’000 liters)		(783.9	)		(645.0	)

Note 3: Average unit costs represent the cash cost, which is net of plantation and cultivation area depreciation and amortization, agricultural depreciation (machinery and equipment), industrial depreciation, and harvest off-season maintenance.

Raízen Energia's cost of goods sold is reported together with the average unit costs, net of the effects of depreciation and amortization (cash cost).

Cost of goods sold fell 1.7% from R$769.9 million in 4Q11 to R$757.1 million in 4Q12 due to the lower volumes of sugar and ethanol produced, which were down 24.4% in the period (sugar equivalent).

Cost of goods sold amounted to R$5.6 billion in FY12, an increase of 26.8% over FY11. This increase was mainly due to the rise in the average price of goods sold in the period, especially sugar and ethanol—up 5.6% and 21.5%, respectively.

The key factors that contributed to the rise in the cost of goods sold by Raízen Energia were:

●	A 24.8% increase in the TSR/kg cost, up from R$0.4022 in FY11 to R$0.5018 in FY12, directly impacting the cost of sugarcane from suppliers and the cost of land leases.

●	An increase in the cost of proprietary sugarcane due to the rise in leasing costs—up from R$10.4 per tonne of sugarcane in FY11 to R$17 per tonne in FY12.

●	A decrease in the TSR level to 136.5 kg/tonne in FY12, compared to 138.5 kg/ton in FY11.

The improved productivity of the sugarcane fields—represented by a higher TCH level (tonne of cane per hectare), which was 76 in FY12, up from 73.8 in FY11—partially offset the effects mentioned above.

Gross Profit

				Gross Profit and Gross Margin per Product
4Q12		4Q11		Amounts in R$ MM	FY12			FY11
436.1		904.1		Gross Profit		1,669.4			1,988.7
234.7		328.0		Sugar		1,110.7			1,244.3
35.3	%	33.3	%	Sugar Gross Margin (%)		28.4	%		32.3	%
51.6	%	43.3	%	Sugar (Cash) Gross Margin (%)		46.6	%		44.7	%
96.1		143.1		Ethanol		417.5			187.7
19.2	%	21.5	%	Ethanol Gross Margin (%)		14.5	%		8.5	%
42.3	%	43.1	%	Ethanol (Cash) Gross Margin (%)		39.5	%		34.2	%
1.2		0.9		Energy Cogeneration		149.0			83.6
104.1		432.1		Other		(7.8	)		473.1

In FY12, Raízen Energia recorded Gross Profit of R$1.7 billion, a decrease of 16.1% from the R$2 billion reported in FY11. Gross Profit decreased by 51.8% in the quarter.

As explained above, this reduction in Gross Profit in FY12 is due to a steeper rise in the cost of goods sold, which was up 26.8% while net income rose by only 13.4% in the period.

Gross cash margins for both sugar and ethanol were up in FY12 as compared to FY11, net of depreciation and amortization.

Selling, General & Administrative Expenses

				Selling, General and
4Q12		4Q11		Amounts in R$ MM	FY12			FY11
(77.6	)	(134.2	)	Selling Expenses		(511.4	)		(568.3	)
(136.6	)	(107.0	)	General and Administrative Expenses		(454.0	)		(393.0	)

Raízen Energia’s selling expenses amounted to R$77.6 million in 4Q12, down 42.2% year-on-year. Selling expenses dropped 10% in FY12 in the year, due to savings with freight and commissions following the transfer of the sugar trading activities in the domestic retail market from to Cosan Alimentos.

General and administrative expenses were R$136.6 million in 4Q12, up 27.7% over 4Q11, and R$454 million in FY12, up 15.6% over FY11. This increase reflects the current corporate structure of Raízen Energia and expenses with services provided by the CSC.

EBITDA

				EBITDA
4Q12		4Q11		Amounts in R$ MM	FY12			FY11
488.7		910.6		EBITDA		2,235.7			2,131.9
41.0	%	54.4	%	EBITDA Margin (%)		30.8	%		33.4	%

Raízen Energia recorded EBITDA of R$488.7 million in 4Q12 with EBITDA margin at 41%. EBITDA totaled R$2.2 billion in FY12, up 4.9% over FY11. EBITDA margin reached 30.8% in FY12, down 2.6 p.p. as compared to FY11.

Hedge

Volume positions and fixed sugar prices agreed with traders or through derivative financial instruments as of March 31, 2012, and foreign exchange derivatives contracted by Raízen Energia to hedge future cash flows, are as follows:

Summary of Hedge Operations at March 31th , 2012
	2011 / 2012
Sugar
NY #11
Volume (‘000 tonnes)	1,163.7
Average Price (¢US$/lb)	24.5
London #5
Volume (‘000 tonnes)	1.3
Average Price (US$/lb)	653.0

Exchange rate
US$
Volume (US$ million)	585.25
Average Price (R$/US$)	1.90

Volume to be sold / Hedged (‘000 tonnes)	2,864.6
% Sale Protected Sugar / Fixed	40.7	%

Impacts of Hedge Accounting

Raízen Energia has been using cash flow hedge accounting for certain derivative financial instruments to hedge against the price risk for sugar and against the foreign exchange risk for revenues from sugar exports.

The table below shows the expected transfer of gain/loss balances from shareholders’ equity as at March 31, 2012 to the net operating income of Raízen Energia4 in future years, broken down by coverage period for the following hedging instruments:

			Expiration Period - (R$MM)
Derivative	Market	Risk		2011/12		2012/13		Total
Futures	OTC/NYBOT	NY#11		40.5		0.6			41.1
NDF	OTC/CETIP	USD		1.7		-			1.7
(=) Hedge Accounting impact				42.2		0.6			42.8
(-) Deferred Income Tax				(14.4	)	(0.2	)		(14.5	)
(=) Asset Valuation Adjustment				27.9		0.4			28.2

Note 4: The table above shows 100% of the hedge accounting gains/losses reclassified to shareholders’ equity. As Cosan proportionately consolidates Raízen Energia, these effects will impact only 50% of the consolidated results.

Investments

		CAPEX
4Q12	4Q11	Amounts in R$ MM	FY12		FY11
848.4	954.6	Total CAPEX		2,577.9		2,414.4
664.8	687.2	Operating CAPEX		1,835.7		1,711.4
222.7	177.5	Biological assets		942.7		745.0
321.0	336.0	Inter-harvest Maintenance Costs		605.5		514.2
70.2	97.6	SSMA and Sustaining		149.2		237.5
50.9	76.2	Mechanization		138.3		214.7
183.5	267.4	Expasion CAPEX		742.2		702.9
109.0	88.9	Cogeneration Projects		462.5		287.6
0.2	6.9	Greenfield		0.4		66.9
-	4.6	Expasion		99.4		87.2
74.3	166.9	Others		179.8		261.2

Raízen Energia recorded Capex of R$848.4 million in 4Q12, a decrease of 11.1% year-on-year (R$954.6 million in 4Q11). Capex totaled R$2.6 billion in FY12, up 6.8% from the R$2.4 billion reported in FY11.

Investments in biological assets totaled R$942.7 million in FY12 and are in line with Raízen Energia’s strategy of renewing at least 20% of its sugarcane fields for the 2011/2012 crop year and of expanding planted areas.

In 4Q12 we accelerated our HSE (health, safety and the environment) investment plan, totaling R$59.3 million, and advanced off-season maintenance investments by R$194 million. On the cogeneration front, we continued to invest in Barra, Univalem and Ipaussu units, totaling R$109 million.

We also recorded R$180 million in “other investments” in FY12, including the capitalization of loan interest for machinery and equipment, and property, plant and equipment under construction at the Ethanol Exports Terminal of Santos (TEAS) and other investments.

A.2 Raízen Combustíveis

Below you will find the results of Raízen Combustíveis, the business unit that distributes and trades fuels through a network of franchised Shell and Esso gas stations, in addition to supplying fuels to industrial clients and distributing aviation fuel.

Like in previous quarters, Raízen Combustíveis’ results are reported on pro forma and accounting basis to allow for comparability.

The major differences between both bases are as follows:

●

Accounting

4Q12 – three months (January, February and March, 2012) of operations of Raízen Combustíveis

FY12 – ten months (June, 2011 to March, 2012) of operations of Raízen Combustíveis, and two months (April and May, 2011) of operations of the fuels business managed by Cosan (CCL minus the Lubricants business)

4Q11 – three months (January, February and March, 2011) of operations of the fuels business managed by Cosan (CCL minus the Lubricants business)

FY11 – twelve months (April, 2010 to March, 2011) of operations of the fuels business managed by Cosan (CCL minus the Lubricants business)

●

Pro Forma

FY12 – ten months (June, 2011 to March, 2012) of operations of Raízen Combustíveis, and two months (April and May, 2011) of the combined carve-out of fuel assets, both of CCL and of Shell.

4Q11 – three months (January, February and March, 2011) of the combined carve-out of fuel assets, both of CCL and of Shell.

FY11 – twelve months (April, 2012 to March, 2011) of the combined carve-out of fuel assets, both of CCL and of Shell.

The analysis that follows compares the results of 4Q12 (accounting) with 4Q11 (pro forma), and represents the whole of Raízen Combustíveis’s operations. In order to allow comparability, FY12 and FY11 will also be shown on a pro forma basis.

Net Revenue

Book 4Q12		Pro forma 4Q11		Pro forma FY12		Pro forma FY11		Net Revenue Breakdown Amounts in R$ MM	Book 4Q12		Book 4Q11		Book FY12		Book FY11
	9,982.0		8,885.0		39,691.8		35,526.4	Net Operating Revenue		9,982.0		2,701.2		35,096.1		10,966.2
	9,982.0		8,865.6		39,669.9		35,468.5	Fuel Sales		9,982.0		2,681.8		35,079.1		10,908.3
	544.6		702.6		2,337.7		2,908.7	Ethanol		544.6		203.1		2,117.9		814.6
	4,179.3		3,619.3		16,623.1		13,241.1	Gasoline		4,179.3		1,265.9		14,674.4		4,656.9
	3,875.5		3,516.8		15,730.2		15,383.4	Diesel		3,875.5		1,185.6		14,051.4		5,325.3
	1,176.3		863.6		4,312.5		3,127.8	Jet Fuel		1,176.3		-		3,632.0		-
	206.2		163.4		666.4		807.4	Others		206.2		27.2		603.3		111.5
	-		19.3		21.9		57.9	Other services		-		19.3		16.9		57.9

Raízen Combustíveis recorded net revenue of R$10 billion in 4Q12, an increase of 12.3% over 4Q11. Compared to 3Q12, net revenue dropped 1% due to seasonal factors in the first months of the year (school vacation), and the lower number of selling days in the quarter.

In FY12 the volume of fuels sold reached 20.9 billion liters, generating revenue in the amount of R$39.7 billion, an increase of 11.7% from the R$35.5 billion reported in FY11.

Most of the growth in Raízen Combustíveis’s revenue is due to (1) the expansion in the service stations network, which totaled 4,545 sites in 2012, (2) increase in the sales volume following the conversion of nearly 47% of the 1,700 “Esso” stations into the “Shell” brand, (3) increase of 8.7% in the country’s fleet in FY12, (4) a sales mix more focused on gasoline, which has higher margins, and (5) increase of 19.1% and 5.5%, respectively, in the volume of gasoline and aviation kerosene in FY12.

In most of Brazil’s states and during almost the whole of the last fiscal year, the average parity between hydrous ethanol and gasoline prices, weighted by the fleet, was above 70%, making owners of flex fuel cars choose gasoline. This caused a reduction in the volume of ethanol sold and an increase in the volume of gasoline sold.

Inventories

Fuels Inventories	Book		Pro forma
	4Q12		4Q11
000' cbm		410.8		648.2
R$'MM		730.5		754.6
R$/cbm		1,778.0		1,164.1

Inventories fell 36.6% in 4Q12 compared to 4Q11 due to operational synergies between the Esso and Shell networks, causing the necessary inventory to be smaller for the current structure of Raízen Combustíveis. In selling days, inventories were at 8 days, as compared to 9 days in 4Q11.

Cost of Goods Sold

Book			Pro forma			Pro forma			Pro forma			COGS	Book			Book			Book			Book
4Q12			4Q11			FY12			FY11			Amounts in R$ MM	4Q12			4Q11			FY12			FY11
	(9,316.7	)		(8,419.3	)		(37,455.7	)		(33,659.8	)	Fuel Sales		(9,316.7	)		(2,580.8	)		(33,144.5	)		(10,499.3	)
												Average Unit Cost (R$/cbm)
	(1,793.7	)		(1,698.2	)		(1,790.9	)		(1,614.5	)	Fuel Sales		(1,793.7	)		(1,814.8	)		(1,789.0	)		(1,741.6	)

Because gasoline and diesel—which have a higher unit cost than ethanol—prevailed in the sales mix, the cost of goods sold increased by 10.7% to R$9.3 billion in 4Q12. Compared to 3Q12, the cost of goods sold dropped 2.2% due to the lower volume sold in the period.

In FY12, the cost of goods sold reached R$37.5 billion and the average unit price was R$1,791/cbm, 10.9% higher than in FY11.

Gross Profit

Book			Pro forma			Pro forma			Pro forma			Gross Profit	Book			Book			Book			Book
4Q12			4Q11			FY12			FY11			Amounts in R$ MM	4Q12			4Q11			FY12			FY11
	665.3			465.7			2,236.1			1,866.6		Gross Profit		665.3			120.3			1,951.6			466.9
	6.7	%		5.3	%		5.6	%		5.3	%	Gross Margin (%)		6.7	%		4.5	%		5.6	%		4.3	%
	128.1			93.9			106.9			89.5		Gross margin (R$/cbm)		128.1			84.6			105.3			77.4

Raízen Combustíveis recorded Gross Profit of R$665.3 million, up 42.9% over 4Q11. This improvement represented an increase of 1.4 p.p. in the gross margin, to 6.7% in 4Q12. Gross Profit amounted to R$2.2 billion in FY12, and the gross margin was 5.6% in the period.

Measured in R$ per cbm, the gross margin was R$128.1/cbm in 4Q12, an increase of 36.4% compared to the margin of R$93.9/cbm recorded in 4Q11. In FY12, the gross margin totaled R$106.9/cbm. The increase, both in the year and the quarter, reflect the synergies and also is due to the allocation of transfer freights in selling expenses line, previously recorded under costs.

Selling, General & Administrative Expenses

Book			Pro forma			Pro forma			Pro forma			Selling, General and Administrative	Book			Book			Book			Book
4Q12			4Q11			FY12			FY11			Amounts in R$ MM	4Q12			4Q11			FY12			FY11
	(397.9	)		(240.2	)		(1,216.7	)		(1,037.5	)	Selling Expenses		(397.9	)		(73.1	)		(1,095.6	)		(280.9	)
	(111.2	)		(135.3	)		(405.7	)		(394.7	)	General and Administrative Expense		(111.2	)		(26.8	)		(349.8	)		(91.5	)

Raízen Combustíveis recorded selling expenses of R$ 397.9 million in 4Q12, an increase of 65.7% over 4Q11. As reported in previous quarters, the key driver of this increase was the change in the classification of transfer freights, that since 2Q12 have been reported in selling expenses and before were included in cost of goods sold.. Additionally, the portion of the depreciation referring to the revaluation of assets contributed to the formation of Raízen Combustíveis has increased selling expenses by nearly R$52 million without impacting the company’s cash and EBITDA. For the year, selling expenses amounted to R$1.2 billion.

General and administrative expenses totaled R$111.2 million in 4Q12, a decrease of 17.8% compared to 4Q11, reflecting the current structure of Raízen Combustíveis. General and administrative expenses amounted to R$405.7 million in FY12.

During the quarter we recorded other operating revenues in the amount of R$89 million referring to merchandising fees, royalties from convenience stores, revenue from leases, fees from the sale of Shell lubricants at Raízen Combustíveis’ gas stations, and revenue from the sale of assets, among other revenues. After several quarters we consider that variations among the fiscal year quarters, is inherent to the nature of the business and no adjustments should be required.

Revenues from royalties received for the licensing of convenience stores are accounted for under “other operating revenues” and totaled R$29.1 million in FY12. These revenues were previously reported under net revenue in the “other services” line. At the close of fiscal year 2012, 647 convenience stores were in operation.

EBITDA

Book			Pro forma			Pro forma			Pro forma			EBITDA	Book			Book			Book			Book
4Q12			4Q11			FY12			FY11			Amounts in R$ MM	4Q12			4Q11			FY12			FY11
	350.9			189.6			1,304.9			724.7		EBITDA		350.9			71.8			1,149.7			248.0
	3.5	%		2.1	%		3.3	%		2.0	%	EBITDA Margin (%)		3.5	%		2.7	%		3.3	%		2.3	%
	67.6			38.2			62.4			34.8		EBITDA Margin (R$/cbm)		67.6			50.5			62.1			41.1

Raízen Combustíveis’s EBITDA was R$350.9 million in 4Q12, with a margin of R$67.6/cbm, equivalent to 3.5% of net revenue. Adjusted for the non-recurring effects of additional annual bonus amount of R$15.0 million, the margin would have been at R$70.5/cbm.

Compared to 4Q11, EBITDA rose 85.1%, not only due to a better mix of products sold and volume growth but mostly because of the synergies captured in this first year of Raízen’s operations. Raízen Combustíveis’s EBITDA amounted to R$1.3 billion in FY12, up from R$724.7 million in FY11.

EBITDA margin reached R$62.4/cbm in FY12, much higher than the guidance disclosed to the market when Raízen was formed of R$43/cbm for the first year of operations.

Investments

Book

Pro forma

CAPEX

Book

4Q12

4Q11

FY12

FY11

Amounts in R$ MM

4Q12

4Q11

FY12

FY11

196.2

117.6

499.3

365.6

CAPEX

196.2

102.0

491.7

191.6

Raízen Combustíveis’s CAPEX was R$196.2 million in 4Q12 and R$499.3 million in FY12. In 4Q12 and FY12, the company invested in new contracts and contract renewal with dealers, rebranding of “Esso” stations under the “Shell” brand, maintenance of the network of dealer stations, and in health, safety and the environment (HSE).

B.3 Rumo Logística

Below you will find the results of Rumo, Cosan’s logistics business responsible for providing integrated logistics services—including transportation, storage and port elevation of sugar and other agricultural commodities—both for Raízen and third parties.

Net Revenue

				Net Revenue Breakdown
4Q12		4Q11		Amounts in R$ MM	FY12		FY11
	74.3		84.4	Net Operating Revenue		572.0		448.0
	53.6		56.3	Transportation		413.4		305.8
	17.5		15.3	Loading		141.0		118.1
	3.2		12.8	Others		17.6		24.1

Rumo’s net revenue totaled R$74.3 million in 4Q12, a decrease of 12% compared to the R$84.4 million recorded in 4Q11. This decrease is due to the disruption in 2011/2012 crop in Brazil’s Central-South region.

In FY12, however, net revenue rose 27.7% compared to FY11, reaching R$572 million. This result is mainly due to (1) the increase of 52.2% in the volume of sugar transported in FY12 compared to FY11, and (2) higher prices because of longer routes in the mix operated in FY12.

Net revenue from sugar transportation—including volumes originated by Rumo and ALL —amounted to R$413.4 million in FY12, an increase of 35.2% over the amount recorded in FY11 and accounting for 72.3% of Rumo’s overall net revenue. Of the total volume transported in FY12, 60% was originated from Raízen Energia.

Rumo’s elevation volume was 7,759 thousand tonnes in FY12, an increase of 3.7% compared to FY11. The effects of the sugarcane crop failure, which resulted in lower sugar than expected export volumes, were partially minimized by the elevation of other products such as soybeans and soybean meal in the off-season period (November of 2011 to March of 2012).

The average consolidated revenue per tonne elevated in FY12 was up 23.0% over FY11 to R$74.0/tonne.

According to UNICA, based on data from the Brazilian Foreign Trade Office (SECEX), the Port of Santos was responsible for 68.5% of the total volume of sugar exported by Brazil. Therefore, Rumo transported nearly 46% of the total volume of sugar exported from the Port of Santos, and 31% of the total sugar exported by the country in 2011/2012 crop season.

Note 5: Total net revenue divided by elevation volume

Cost of Services Provided

	4Q12				4Q11		Costs of Services Amounts in R$ MM		FY12				FY11
	(77.4	)			(58.2	)	Cost of Services Provided			(394.1	)			(316.4	)

Rumo’s cost of services provided includes railway and highway freight, port elevation, transshipment and storage costs in upstate São Paulo and at the Port of Santos.

Rumo’s cost of services provided amounted to R$77.4 million in 4Q12, an increase of 33% over 4Q11. In FY12, the cost of services provided reached R$394.1 million, up 24.6%. As a percentage of the net revenue, cost of services provided was 68.9% in FY12 (70.6% in FY11). This reduction of 1.7 p.p. was due to the higher volume of sugar transported in FY12, increasing cost dilution.

Gross Profit

						Gross (Loss) Profit and Margin
4Q12			4Q11			Amounts in R$ MM	FY12			FY11
	(3.1	)		26.2		Gross (Loss) Profit		177.9			131.6
	-4.2	%		31.0	%	Gross Margin (%)		31.1	%		29.4	%

Rumo recorded gross loss of R$3.1 million in 4Q12 due to amortization on intangible assets in railways amounting R$13.8 million recorded in 4Q12, with no impacts on EBITDA. Gross Profit totaled R$177.9 million in FY12, an increase of 35.2% over FY11. The gross margin increased by 1.7 p.p. to 31.1% in FY12, which shows operational improvement and a higher dilution of the operation’s fixed costs.

General and Administrative Expenses

						General and Administrative Expenses		Expenses
4Q12			4Q11			Amounts in R$ MM	FY12				FY11
	(11.7	)		(8.3	)	General and Administrative Expenses			(41.6	)		(29.1	)

General and administrative expenses totaled R$11.7 million in 4Q12, an increase of 41% compared to 4Q11. Compared to FY11, general and administrative expenses rose 43% to R$41.6 million in FY12. This increase in expenses is basically due to the reformulation of Rumo’s managerial staff in FY12 as well as expenses related to the Shared Services Center which in FY11 were not considered.

EBITDA

						EBITDA and Margin
4Q12			4Q11			Amounts in R$ MM	FY12			FY11
	20.6			28.3		EBITDA		213.2			146.2
	27.8	%		33.5	%	EBITDA Margin (%)		37.3	%		32.6	%

Rumo’s EBITDA was R$213.2 million for FY12 with margin at 37.3%, an increase of 45.8% and 4.7 p.p., respectively, compared to FY11. This increase is in line with Rumo’s investment plan, announced in 2010.

Investments

CAPEX

4Q12

4Q11

Amounts in R$ MM

FY12

FY11

45.6

53.3

CAPEX

269.0

427.9

Rumo’s investments totaled R$269 million in FY12, a decrease of 37.1% compared to FY11. The lower amount invested in this crop year is due to delays in obtaining licenses from government authorities for the expansion and duplication of permanent ways. Some of these licenses were issued at the end of FY12, allowing Rumo to resume investments in FY13.

Of Rumo’s total investments, nearly R$500 million should be invested in FY13 (R$450 million) and FY14 (R$50 million). In line with Rumo’s investment plan, the acquisition of locomotives and freight cars has already been completed and other investments, like in permanent ways, construction and remodeling of dry terminals, as well as the remodeling of the port terminal in Santos, are underway.

B.4 Cosan Alimentos

Below we report the results of Cosan Alimentos, a company established in July of 2011 and in charge of purchasing, packing and distributing sugar in the Brazilian retail market.

For comparability purposes, Cosan Alimentos’s results are reported both on accounting and pro forma bases, as follows:

●

Accounting

4Q12 – three months (January, February and March, 2012) of operations of Cosan Alimentos;

●

Pro Forma

4Q11 – three months (January, February and March,2011) of operations of Cosan Alimentos, ascertained on a managerial basis in line with the principles currently in effect;

FY11 – twelve months (April, 2010 to March, 2011) of operations of Cosan Alimentos, ascertained on a managerial basis in line with the principles currently in effect;

FY12 – twelve months (April, 2011 to March, 2012) of operations of Cosan Alimentos, ascertained on a managerial basis in line with the principles currently in effect;

Net Revenue

Book		Pro forma		Net Revenue Breakdown	Pro forma		Pro forma
4Q12		4Q11		Amounts in R$ MM	FY12		FY11
	199.2		228.6	Net Operating Revenue		941.6		877.8
	177.5		204.1	Refined sugar sales		843.6		786.2
	11.9		15.8	Cristal sugar sales		50.6		55.4
	9.8		8.6	Special sugar sales		47.4		36.2

Cosan Alimentos’s recorded net revenue of R$941.6 million in FY12, an increase of 7.3% compared to net revenue of R$877.8 million recorded in FY11. Refined sugar sales represented 89.5% of the total net revenue, and sales of special sugars, which include products like União Light, Organic, Premium, sachets and others, amounted to R$47.4 million in FY12, an increase of 30.9% in the year.

Even though Cosan Alimentos’s net revenue increased from FY11 to FY12, it dropped 12.9% to R$29.4 million in 4Q12 as compared to 4Q11. This reduction is mainly due to refined sugar inventories in the market, which started the off-season period (December of 2011) at high levels, and were sold with discounts during the 4Q12, pushing prices down.

Sugar Inventories

Sugar Inventories			4Q12
´000 ton			20.0
R$'MM			23.8
R$/ton			1,189.2

Cost of Goods Sold

Book			Pro forma			COGS	Pro forma			Pro forma
4Q12			4Q11			Amounts in R$ MM	FY12			FY11
	(182.6	)		(183.9	)	Cost of Goods Sold (COGS)		(752.5	)		(670.9	)
	(161.2	)		(163.0	)	Refined sugar		(669.9	)		(595.9	)
	(12.1	)		(15.2	)	Cristal sugar		(46.7	)		(52.3	)
	(9.3	)		(5.7	)	Special sugar		(36.0	)		(22.7	)

In FY12 the cost of goods sold by Cosan Alimentos reached R$752.5 million, up 12.2% in the year. This increase is explained by the 26.1% rise in raw sugar prices (ESALQ VHP) on the foreign market—which is the calculation basis for Cosan Alimentos’s main raw material—up from R$700.9/tonne in FY11 to R$884.1/tonne in FY12.

As explained in previous quarters, most of Cosan Alimentos’s volumes are guaranteed through long-term contracts with the main supplier, Raízen Energia. The goal of this strategy is to ensure the supply of raw material throughout the crop year, thus avoiding spot purchases, with more volatile prices.

Gross Profit

Book			Pro forma			Gross Profit and Margin	Pro forma			Pro forma
4Q12			4Q11			Amounts in R$ MM	FY12			FY11
	16.6			44.7		Gross Profit		189.1			206.9
	8.3	%		19.6	%	Gross Margin (%)		20.1	%		23.6	%

Gross Profit dropped 8.6% to R$189.1 million in FY12, down from R$206.9 million in FY11. This decrease reflects the combination of the lower sales volume in FY12, together with the increase in raw material costs of Cosan Alimentos, which had the biggest impact on the 4Q12 results.

Selling, General & Administrative Expenses

Book			Pro forma			Selling, General and Administrative	Pro forma			Pro forma
4Q12			4Q11			Amounts in R$ MM	FY12			FY11
	(25.3	)		(29.4	)	Selling Expenses		(110.6	)		(115.1	)
	(3.5	)		(3.4	)	General and Administrative Expenses		(17.7	)		(15.0	)

Selling expenses reached R$110.6 million in FY12, a decrease of 3.9% compared to FY11, primarily due to the lower volume of sugar sold as most of these expenses are variable, like freight and commissions.

General and administrative expenses totaled R$17.7 million in FY12, an increase of 18% compared to FY11, due to the creation of a corporate structure to support Cosan Alimentos, generating expenses that had not been accounted for to date, including those related to the Shared Services Center.

EBITDA

Book			Pro forma			EBITDA and Margin	Pro forma			Pro forma
4Q12			4Q11			Amounts in R$ MM	FY12			FY11
	(5.7	)		12.4		EBITDA		69.3			75.6
	-2.9	%		5.4	%	EBITDA Margin (%)		7.4	%		8.6	%

Cosan Alimentos recorded EBITDA of R$69.3 million in FY12, an decrease of 8.3% compared to FY11. The EBITDA margin was 7.4% in FY12. In 4Q12, EBITDA was negative R$5.7 million.

A.5 Other Businesses

Below we report the results for our Other Businesses, which consist of manufacturing, distribution and marketing activities for lubricants under Mobil brand and Base Oils, investments in rural properties and other investments, plus the corporate structure of Cosan Group business units, excluding for Raízen.

Net Revenue

				Net Revenue Breakdown
4Q12		4Q11		Amounts in R$ MM	FY12		FY11
	270.9		210.7	Net Operating Revenue		1,065.5		829.1
	241.6		210.7	Lubricant Sales		1,018.8		827.6
	29.3		-	Other Products and Services		46.7		1.5

The lubricants and specialties business recorded net revenue of R$241.6 million in 4Q12, an increase of 14.7% compared to the R$210.7 million in 4Q11.

This increase is due to a larger volume of Premium lubricants sold and to the beginning of base oil distribution operation. Base oil which is one of the raw material for manufacturing lubricants was added to Cosan Lubrificantes e Especialidades’s portfolio in 1Q12. Also, the company started distributing lubricants in three more countries in January of 2012—Bolivia, Uruguay and Paraguay

The sales volume increased 39.5% in FY12 to 216.7 million leaders. In spite of the increase in the volume sold and product revenues, the addition of base oil to the mix contributed to the reduction in the average unit price, which was R$ 4,724/thousand liters in 4Q12, up from R$5,181/thousand liters in 4Q11.

For the year, the net revenue of Cosan Lubrificantes e Especialidades was R$1.0 billion, an increase of 23.1% compared to FY11 R$827.6 million. The volume sold was 30.2% higher in FY12, reaching 216.7 million liters.

Revenue from other products and services consists of land leased by Cosan to Raízen Energia, as well as revenues from the sale of base oils and amounted to R$56.7 million in FY12.

Selling, General & Administrative Expenses

						Selling, General and Administrative
4Q12			4Q11			Amounts in R$ MM	FY12			FY11
	(38.3	)		(60.7	)	Selling Expenses		(187.5	)		(175.2	)
	(43.0	)		(7.9	)	General and Administrative Expenses		(132.8	)		(27.3	)

Selling expenses dropped 36.9% in 4Q12 compared to 4Q11 due to a dilution of marketing and promotional actions throughout FY12 as opposed to FY11, when expenses were more concentrated in the last quarter.

Selling expenses increased 7.0% in FY12, primarily due to an increase in volumes, leading to an increase in freight expenses and the collection of used oils as current legislation requires that these wastes be collected and disposed of correctly.

General and administrative expenses totaled R$43 million in 4Q12, up from R$7.9 million in 4Q11. However, general and administrative expenses were down 15.5% quarter-on-quarter. It is important to mention this item includes expenses with Cosan’s corporate structure, which was previously allocated to sugar, ethanol and cogeneration segment, currently Raízen Energia.

EBITDA

						EBITDA and Margin
4Q12			4Q11			Amounts in R$ MM	FY12			FY11
	(84.2	)		17.2		EBITDA		3,245.3			146.5
	(100.3	)		-		Effects of Raízen Formation		3,196.6			-
	16.1			17.2		Adjusted EBITDA		48.7			146.5
	5.9	%		8.2	%	Adjusted EBITDA Margin (%)		4.6	%		17.7	%

Other Businesses recorded a negative EBITDA of R$ 84.2 million in 4Q12, lower in the period due to the allocation of general and administrative expenses from other business units that were accounted for under their respective units in previous periods. During fiscal year 2012, the result was also impacted by provision for legal contingencies from the businesses contributed to Raízen that, under the agreement, remain the responsibility of Cosan.

During the quarter, the company recognized a negative effect of R$100.3 million in the Other Businesses line due to Cosan’s and Shell’s finalization of the adjustments in the assets contributed to the formation of Raízen. With this, in FY12 the result of the formation of Raízen was R$3.2 million (non-cash effect), bringing Adjusted EBITDA of Other Businesses was R$48.7 million, with EBITDA margin at 4.6%.

B. Other Items in the Consolidated Result

Financial Result

				Financial Results
4Q12		4Q11		Amounts in R$ MM	FY12			FY11
(82.3	)	(109.5	)	Gross Debt Charges		(352.9	)		(523.1	)
30.0		31.9		Income from Financial Investments		131.2			117.3
(52.3	)	(77.6	)	(=) Subtotal: Gross Debt Interests		(221.7	)		(405.8	)
(14.2	)	(4.1	)	Other Charges and Monetary Variation		(125.5	)		(47.3	)
85.6		67.9		Exchange Rate Variation		(93.9	)		282.7
(18.4	)	48.4		Gains (Losses) with Derivatives		(4.4	)		54.8
(22.8	)	(47.8	)	Others		(28.6	)		(31.1	)
(22.1	)	(13.2	)	(=) Financial, Net		(474.1	)		(146.7	)

In 4Q12, we posted financial expenses of R$22.1 million, compared to expenses of R$13.2 million in the same period of the previous year.

Net financial result for FY12 was an expense of R$474.1 million, versus an expense of R$146.7 million in FY12, mainly due to a positive exchange variation in FY11 in the amount of R$282.7 million, as compared to a negative variation of R$93.9 million in FY12.

In FY12, charges on gross debt fell 32.5% as compared to the previous year, while the balance of consolidated debt fell approximately 30% from R$7.1 billion on March 31, 2011 to R$5.0 billion on March 31, 2012. This decrease was due to a change in the debt profile and the effects of the proportional consolidation of Raízen’s debt since 1Q12. In 4Q12, charges decreased about 25% quarter-on-quarter due to the same reasons mentioned above.

Gains from marketable securities totaled R$131.2 million in FY12, compared to R$117.3 million in FY11, mainly due to the 23.1% increase in the average balance of cash and cash equivalents, together with the impact of the 9.2% increase in the average rate of domestic interest – CDI in the period. In 4Q12, capital gains totaled R$ 30.0 million, compared to R$ 31.9 million in 4Q11, primarily the result of the 0.55% decline in the average cash and cash equivalents balance.

The Brazilian real depreciated nearly 12% against the U.S. dollar in FY12 from R$1.6287/US$ as of March 31, 2011 to R$1.8221/US$ as of March 31, 2012, whereas in FY11 the real appreciated nearly 9% against the dollar, from R$1.7810/US$ as of March 31, 2010 to R$1.6287/US$ as of March 31, 2011. In the quarter, the real depreciated 2.9% against the dollar. Therefore, the exchange variation had a material impact on assets and liabilities denominated in dollars, especially the dollar-denominated debt.

The derivatives line includes gains and losses with derivatives, except for those instruments used for hedge accounting purposes or the ineffective portion of such instruments and the fair value in the period of the Warrants of the affiliate Radar.

Income Tax and Social Contribution

				Income and Social Contribution Tax
4Q12		4Q11		Amounts in R$ MM	FY12			FY11
158.7		721.8		Income Before Income Tax		3,755.0			1,191.1
(10.0	)	(235.0	)	Total of Deferred and Current Income and Social Contribution Taxes		(1,110.2	)		(414.5	)
6.3	%	32.6	%	(-) Effective Rate (%)		29.6	%		34.8	%

27.0		(208.9	)	Deferred Income Taxes Expenses		(962.8	)		(329.1	)
(37.0	)	(26.0	)	Current Income Taxes Expenses		(147.5	)		(85.4	)
23.3	%	3.6	%	Effective Rate - Current (%)		3.9	%		7.2	%

Expenses with income tax and social contribution (“IT/SC”) represented 29.6% of our income before tax in FY12, as compared to an effective rate of 34.8% in FY11 and a nominal rate of 34%.

The expense with current income tax and social contribution represents the amount disbursed and to be disbursed, net of refunds, recovery and offsetting of taxes of the same type. In FY12, our current income tax rate was 3.9% over our pre-tax income, down from 7.2% in FY11. If we adjusted the income before IT/SC by the effects of Raízen’s formation in the amount of R$3.2 billion, which is mostly subject to effects of deferred IT/SC, our current effective rate would be 26.4%.

Compared to FY11, the main reason for the effective IT/SC rate being so low in FY12 at 7.2% is the effect of the exchange variation and gains/losses with derivatives, which are taxed using the cash basis and not the accrual basis. In FY11 we recorded income from exchange variation of R$282.7 million, and in FY12 we recorded an expense of R$93.9 million.

Net Income

In the fiscal year ended March 31, 2012, the Company recorded net income of R$2.6 billion, versus R$ 771.6 million in FY11. Excluding the effects of the formation of Raízen, adjusted net income would be R$ 421.9 million, a decrease of approximately 45.3% compared to FY11, mainly due to the negative impacts of the financial result. Adjusted for exchange variation since FY11 the net income adjusted would be approximately R$ 800,0 million.

C. Indebtedness

At the end of 4Q12, Cosan's consolidated gross debt reached R$4.7 billion, with no significant change over the closing balance of 3Q12, of R$4.8 billion. The components of Raízen’s debt, of which 50% is consolidated by Cosan, are presented below, together with the other components of Cosan Group’s debt.

Raízen

The combined gross debt of Raízen totaled R$5.6 billion at the end of 4Q12, a 4.7% decrease versus the balance recorded on December 31, 2011.

Throughout the quarter, we amortized principal and interest in the amount of R$639.2 million, and raised R$402.5 million through the following credit facilities:

(i)

R$319.7 million in foreign exchange contract advances;

(ii)

R$82.8 referring to BNDES funding and other facilities for energy cogeneration and sugarcane harvest mechanization projects, among others.

It is important to mention that Raízen has a receivable from its shareholder Shell, in the approximate amount of US$500 million, maturing in April of 2013, which resulted in an increase in liquidity and reduction of overall leverage. This receivable from Shell is also proportionately consolidated (50%) by Cosan, but it is not recorded as a cash. For this reason, and for a better understanding of Cosan's leverage capacity, we report the pro forma net debt, which takes into account the cash and cash equivalents and 50% of the Shell receivable for the purpose of calculating the net debt.

Cosan and Subsidiaries

Gross financial debt was R$1.9 billion in 4Q12, unchanged from 3Q12.

Also, subsidiary Rumo Logística raised approximately R$53.4 million through the Finame facility in the fourth quarter to invest in railway assets and port terminals.

Cash and cash equivalents reached R$1.6 billion at the end of 4Q12, up from R$1.2 billion in 3Q12, bringing the pro forma net indebtedness to R$2.6 billion, a 3.9% reduction when compared to the end of 3Q12, equivalent to 1.2 times the EBITDA in the last 12 months.

Debt by type
Amounts in R$ MM	4Q12		3Q12		% ST
Senior Notes 2014	645.3		679.9			1.2	%
Expenses with Debt Placement	(6.5	)	(7.4	)		42.9	%
BNDES	1,525.5		1,488.4			11.4	%
Working Capital	830.8		855.5			0.5	%
Prepaid Exports	1,014.9		749.4			18.3	%
Senior Notes 2017	737.2		772.1			1.1	%
Advances on Exchange Contracts	276.7		498.9			100.0	%
Credit Notes	105.8		351.4			100.0	%
Finame	203.7		220.8			33.4	%
Finem	222.3		219.0			19.8	%
Rural credit	40.9		40.3			100.0	%
PROINFA	27.2		28.6			14.2	%
Expenses with Placement of Debt	(12.2	)	(11.1	)		22.0	%
Total Raízen	5,611.7		5,885.6			0.0	%
Raízen Consolidated ( 50% RAIZEN after 01-05)	2,805.9		2,942.8			0.0	%

Finame	632.8		594.8			10.9	%
Expenses with Placement of Debt	(1.1	)	(1.1	)		22.4	%
Perpetual Bonds	930.1		958.0			1.2	%
Credit Notes	341.2		332.2			0.0	%
Expenses with Placement of Debt	(11.0	)	(12.0	)		19.0	%
Total Cosan	1,892.0		1,872.0

Total Consolidated	4,697.9		4,814.8
Availabitity	1,616.2		1,194.9
Net Debt	3,081.7		3,619.9
Capital Subscription to be Paid from Shell to Raízen (50%)	489.9		923.2
Adjusted Net Debt	2,591.9		2,696.7

D. Market Overview

According to data from UNICA, the Center-South (CS) region crushed 493.264 million tonnes of sugarcane in the 2011/2012 crop, a decrease of 11.4% over the same period in the previous crop year. The lower availability of sugarcane for this crop year is due to agricultural and climate factors, the latter including drought and two frosts. These facts and the lack of investments in sugarcane plantations due to the 2008 crisis resulted in a productivity of less than 70 t/ha in the Center-South.

Due to high prices in the international markets, the mix of sugar production increased from 44.71% to 48.43%, while mix of ethanol represented 51.57% in the 2011/2012 harvest. The production totaled 31.3 million tonnes of sugar, a decrease of 6.5% and 20.5 billion liters of ethanol, a reduction of 19.1% if compared to 2010/2011 harvest.

Sugar

Source: ESALQ, Bloomberg, Cosan

The 2011/2012 crop year is the third consecutive year of growth in sugar production, mainly driven by higher prices. Considering historical data, global production grew by 31% in the decade ending with the 2011/2012 crop, and is expected to reach 178.1 million tonnes. The sugar production supply was the main driver of this higher growth rate.

Differently than anticipated sugar prices in the Brazilian domestic market were not affected by seasonal factors in the 2011/12 crop. During the peak of the CS crop, the price of the 50-kg sack reached R$70, when a decrease in prices was expected, whereas in the off-season (December and January) the price was approximately R$57. This unusual behavior caused a reaction in the market, with most industrial consumers advancing their purchases out of fear of a price increase, leading to a lower spot demand in the off-season. As a result, many mills had to liquidate their product inventories in order to generate cash, and supply was higher than demand.

Exports in the CS were 2.5 million tonnes lower than in the previous crop, totaling 21.5. The main drivers of this reduction were the decrease in production and in the international demand from some countries, which maintained their excess inventories. Out of total exports, raw sugar exports reached 18.4 million tonnes, and white sugar (granulated and

refined) exports reached only 3.06 million tonnes. The main destinations of raw sugar exports were China, Egypt, the European Union and Algeria. As for the white sugar market, the main importers were Yemen, Ghana and Colombia.

In Western Europe, Germany and France had record crops. French productivity recorded an increase of more than 50%, contributing to a 20% increase in sugar production, totaling 4.8 million tonnes. Production in Germany was 32% higher than in the previous year at 4.6 million tonnes. The availability of these countries caused European Union exports to reach the limit established by the WTO of 1.370 million tonnes, and the out-of-quota sugar (only targeted at exports, industrial consumers and the fuel industry) to be reallocated to the quota system (solely targeted at the domestic market).

The Russian crop saw record production, reflecting the region's expansion and the increase in agricultural productivity, supported by extremely favorable weather conditions. Sugar production in the country increased by 85%, from 2.9 to 5.5 million tonnes (raw value). Consumption in the country reached 5 million tonnes, which limited imports to less than 600,000 tonnes, versus a historical 1.8 million.

India exceeded initial expectations, with an estimated production of 27.8 million tonnes of sugar (raw value); For the second consecutive year, the country was an active participant in the international market of white sugar exports. The government provided incentives to sugarcane suppliers by increasing the minimum sugarcane price and the salary of sugarcane field workers. This action prevented artisanal sugar producers from competing against traditional mills, which led to an increase in production in the Uttar Pradesh region, for instance, which grew from 200,000 tonnes to 6.5 million tonnes. Despite the increase in production, the government continued to control local inventories through compulsory monthly sales and export licenses.

The 2011/2012 crop in Thailand has been increasing for the second consecutive year. With an industrial yield higher than last year’s, a 9.5% increase in production is expected, to 11.3 million tonnes of sugar. Throughout the 2011/2012 crop, the CS region of Brazil faced strong competition from Thai sugar, which had a greater competitive advantage in logistics for some regions of East Asia and the Middle East.

China, with a domestic deficit of approximately 3 million tonnes, maintained its position as the world's largest raw sugar importer. In 4Q11, China imported more than 600,000 tonnes of raw sugar, mainly from the Central-South region of Brazil. Sugarcane and beet crops ended the period with production lower than expected. The advanced celebration of the Chinese New Year (in January, instead of February), which caused the weekly crushing to decrease earlier than usual, and the reduction in industrial yield, were the main reasons for a decrease in production from 12.5 to 12.2 million tonnes.

The raw sugar price reached an average of ¢US$24.53/lb in 4Q12, 6.8% lower than in 3Q12, when the highest price, of ¢US$31.34/lb, was recorded. In 4Q12, the price was 19.7% lower than the average price of ¢US$30.54/lb recorded in 4Q11.

Refined sugar in the foreign market recorded an average price of US$639.83/tonne in the period, 9.8% lower than in 3Q12, and 14.8% lower than in 4Q11, with an average premium of US$99.00/tonne for white sugar, versus US$114.0/tonne in 4Q11 and US$101.7/tonne in 3Q12.

Based on data provided by the Central Bank, the Brazilian real appreciated against the dollar in 4Q12, reaching an average of R$1.77/US$, 1.6% lower than the average for the previous quarter. In the analyzed period, the exchange rate reached R$1.87/US$, due to the maintenance of a debt crisis scenario in Europe (Portugal, Italy, Greece and Spain), and also due to the unstable economic scenario in the United States. The closing rate in the period was R$1.82/US$, versus R$1.63/US$ in March of 2011 and R$1.87/US$ in December of 2011.

In the domestic sugar market, the average price of granulated sugar in 4Q12, as per ESALQ, was R$58.15 per 50-kg sack, or ¢US$30.67/lb, representing a 4.1% quarter-on-quarter reduction but 0.4% year-on-year increase.

Ethanol

Source: ESALQ, Bloomberg, Cosan

The 2011/2012 ethanol crop was marked by significant concern by the Brazilian government in terms of ensuring the availability of ethanol during the off-season. Two measures stood out, one being the mandatory inventories of anhydrous ethanol at the mills and distributors, a measure that takes effect in the 2012/2013 crop. This mandatory volume took into account, among other aspects, the percentage of sales in the previous year. The other measure, which was immediate and implemented in October of 2011, was the reduction, from 25% to 20% of the mix of anhydrous ethanol in gasoline. This reduction measure enabled some mills to hydrate the anhydrous ethanol in order to sell it as hydrous, keeping more competitive prices for this product during the off-season.

With the ethanol/gasoline parity more focused on gasoline in most of the country, mills focused their production in anhydrous ethanol, increasing the share of this type of fuel by nearly 10 percentage points in the Center-South, when compared to the 2010/2011 crop.

According to UNICA, 7.4 billion liters of anhydrous ethanol and 13.1 billion liters of hydrous ethanol were produced, a volume 0.71% higher and 27.2% lower than the 2010/11 crop in the Center-South, respectively. Overall, ethanol production decreased by 6.5%.

The average price of hydrous ethanol, as per ESALQ, was R$1,169.0/m3 in 4Q12, 5.5% lower than in 4Q11, and 6.5% lower than in 3Q12. The average price of anhydrous ethanol was R$1,251.7/m3, showing a decrease of 8.0% from 4Q11, and 8.8% from 3Q11.

Based on data disclosed by the ANP (National Oil Agency), the average parity of the price of hydrous ethanol in relation to gas in Brazil was 73.1% in 4Q12.

In exports, the 2011/2012 crop had a strong flow of sugarcane ethanol exports and corn ethanol imports from the US. Exports were carried out based on the US's need to meet the mandatory demand of advanced fuels (established by the RFS), whereas the domestic market was supplied by a product that had a discount in relation to the product sold on the local market. In the CS region of Brazil, 1.6 billion liters of ethanol were exported, and approximately 950 million liters were imported.

Fuels

According to data from ANFAVEA, more than 2.8 million flex-fuel cars were sold in the period between April of 2011 and March of 2012. In March of 2012, the sale of flex vehicles accounted for 85.9% of total sales.

According to SINDICOM, the volume of Diesel sold in the quarter was 10.7 billion liters, 7.8% lower than in the previous year. On the other hand, ethanol sales fall 51.7% to 1.4 billion liters. In the same months, the sales volume of gasoline C reached 7.1 billion liters, an increase of 15.5%, showing that ethanol consumers continued to migrate to gasoline due to price dynamics.

E. Share Performance

The common shares issued by Cosan S.A. have been listed on BM&FBovespa since 2005, the year of its IPO on the “Novo Mercado” segment under the ticker symbol CSAN3, and are included in the portfolios of the Ibovespa, IBrX, IBrX-50, IBrA, MLCX, ICO2, INDX, ICON, IVBX-2, IGC, IGCT and ITAG indexes.

The shares issued by Cosan Limited, Cosan S.A.'s parent company, have been listed on NYSE since its IPO in 2007, under the ticker symbol CZZ. The company has also issued share deposit certificates (Brazilian Depositary Receipts - BDR) on the BM&FBovespa under the symbol CZLT11.

The tables and graphs below represent the performance of shares issued by the companies:

Quarter Summary	CSAN3		CZLT11		CZZ
Stock Type	Ordinary		BDR		Class A and B
Listed in	BM&FBovespa		BM&FBovespa		NYSE
Closing Price in 03/30/2012	R$	33.96	R$	27.30	USD 14.85
Higher Price	R$	34.70	R$	27.90	USD 15.11
Average Price	R$	30.11	R$	24.24	USD 13.63
Lower Price	R$	26.70	R$	20.00	USD 10.
Average Daily Traded Volume	R$ 35,4 mi		R$ 2,8 mi		USD 14,8 mi

F. Guidance

This section includes the guidance by variation range of some key parameters in the consolidated results of Cosan for the fiscal year of 2013, which began on April 1, 2012 and will end on March 31, 2013. In addition, other parts of this Financial Letter may contain forecasts. Such forecasts and guidance are simply estimates and indications, and do not provide any guarantee of prospective results.

This guidance takes into account the operations currently held by the Cosan group, which include Raízen Energia, Raízen Combustíveis, Rumo, and Other Businesses.

		FY11	FY12	FY 2013
Cosan Consolidated	Net Revenue (R$MM)	18,063	24,097	26,000 ≤ ∆ ≤ 29,000
	EBITDA (R$MM)	2,671	2,142	2,200 ≤ ∆ ≤ 2,500
	CAPEX (R$MM)	2,500	2,137	2,100 ≤ ∆ ≤ 2,400

	Volume of crushed sugarcane (‘000 tons)	54,238	52,958	52,000 ≤ ∆ ≤ 55,000
Raízen Energia	Volume of sugar sold (‘000 tons)	4,291	3,969	3,900 ≤ ∆ ≤ 4,200
Raízen Energia	Volume of ethanol sold (millions of liters)	2,247	1,921	1,850 ≤ ∆ ≤ 2,050
	Volume of energy sold (‘000 MWh)	1,254	1,233	1,650 ≤ ∆ ≤ 1,850
	EBITDA (R$MM)	2,130	2,235	2,200 ≤ ∆ ≤ 2,500

Raízen	Volume of fuel sold (millions of liters)	-	20,914	21,000 ≤ ∆ ≤ 23,000
Combustíveis	EBITDA (R$MM)	-	1,305	1,300 ≤ ∆ ≤ 1,500

Rumo	Volume of loading (‘000 tons)	7,841	7,759	8,000 ≤ ∆ ≤ 10,000
Rumo	EBITDA (R$MM)	146	213	260 ≤ ∆ ≤ 300

Other Business	Volume of lubricants and base oil sold (millions of liters)	166	205	220 ≤ ∆ ≤ 260

Disclaimer

This document contains forward-looking statements and estimates. These forward-looking statements and estimates are solely forecasts and do not represent any guarantee of prospective results. All stakeholders should know that these statements and estimates are and will be, depending on the case, subject to risks, uncertainties and factors related to the operations and business environment of Cosan and its subsidiaries, and therefore the actual results of these companies may significantly differ from the estimated or implied prospective results contained in forward-looking statements and estimates

G. Cosan S.A.

Income Statement

Income Statement	Jun'10			Sept'10			Dec'10			Mar'11			Mar'10			Jun'11			Sept'11			Dec'11			Mar'12			Mar'12
(in R$ million)	1Q11			2Q11			3Q11			4Q11			FY11			1Q12			2Q12			3Q12			4Q12			FY12
Net Operating Revenue		3,999.6			4,716.1			4,738.4			4,609.3			18,063.5			5,188.0			6,804.3			6,310.7			5,793.9			24,096.9
Cost of Goods Sold and Services Rendered		(3,522.7	)		(3,995.2	)		(4,160.0	)		(3,472.2	)		(15,150.1	)		(4,600.0	)		(6,042.4	)		(5,670.9	)		(5,151.8	)		(21,465.0	)
Gross Profit		476.9			720.9			578.5			1,137.1			2,913.4			588.0			761.9			639.8			642.1			2,631.9
Margin		11.9	%		15.3	%		12.2	%		-23.3	%		16.1	%		11.3	%		11.2	%		10.1	%		-21.7	%		10.9	%
Operating Income (Expenses):		(339.0	)		(442.6	)		(407.9	)		(411.3	)		(1,600.8	)		2,925.9			(468.3	)		(399.8	)		(493.7	)		1,564.0
Selling		(216.1	)		(265.5	)		(271.9	)		(272.5	)		(1,026.0	)		(261.2	)		(295.3	)		(282.0	)		(297.9	)		(1,136.3	)
General and Administrative		(120.6	)		(137.9	)		(132.4	)		(150.0	)		(541.0	)		(150.0	)		(158.2	)		(147.5	)		(186.2	)		(641.9	)
Other Operating Income (Expenses), Net		(2.3	)		(39.1	)		(3.6	)		11.3			(33.8	)		22.0			3.2			29.6			90.7			145.6
Gain on tax recovery program		-			-			-			-			-			-			-			-			-			-
Effects of formation of JVs		-			-			-			-			-			3,315.1			(18.2	)					(100.3	)		3,196.6
Operating Income		137.9			278.3			170.5			725.8			1,312.6			3,513.9			293.6			240.0			148.4			4,195.9
Non-Operating Income (Expenses):		(124.7	)		88.8			(81.5	)		(4.0	)		(121.5	)		13.2			(394.9	)		(69.4	)		10.3			(440.9	)
Financial results, net		(130.5	)		86.4			(89.4	)		(13.2	)		(146.7	)		11.2			(393.6	)		(69.5	)		(22.3	)		(474.1	)
Equity income of associates		5.76			2.36			7.84			9.23			25.19			1.96			(1.30	)		0.01			32.60			33.27
Income (Loss) Before taxes		13.2			367.1			89.0			721.8			1,191.1			3,527.1			(101.3	)		170.5			158.7			3,755.0
Margin		0.3	%		7.8	%		1.9	%		-3.4	%		6.6	%		68.0	%		-1.5	%		2.7	%		-53.6	%		15.6	%
Income and Social Contribution Taxes		(11.0	)		(126.2	)		(42.3	)		(235.0	)		(414.5	)		(1,224.6	)		188.2			(63.8	)		(10.0	)		(1,110.2	)
Non-controlling interest		(1.75	)		10.70			(8.03	)		(5.92	)		(5.00	)		(3.11	)		(23.67	)		(12.97	)		0.80			(38.96	)
Net Income		0.4			251.5			38.7			480.9			771.6			2,299.3			63.2			93.8			149.6			2,605.8
Margin		0.0	%		5.3	%		0.8	%		-1.9	%		4.3	%		44.3	%		0.9	%		1.5	%		-35.9	%		10.8	%

Balance Sheet

Balance Sheet	Jun'10			Sept'10			Dec'10			Mar'10			Jun'11			Sept'11			Dec'11			Mar'12
(in R$ million)	1Q11			2Q11			3Q11			FY11			1Q12			2Q12			3Q12			FY12
Cash and Cash Equivalents		1,054.9			988.4			1,136.9			1,254.1			1,278.2			1,471.7			1,194.9			1,616.2
Restricted Cash		51.3			76.0			276.2			187.9			60.2			52.5			88.1			94.3
Accounts receivable		619.1			760.0			657.5			594.9			825.2			983.7			1,022.3			963.6
Derivatives		144.5			166.0			180.0			55.7			60.2			29.4			59.6			19.6
Inventories		1,066.3			1,626.8			1,642.7			670.3			1,002.0			1,361.8			1,354.4			748.2
Advances to Suppliers		323.5			293.9			268.6			229.3			172.2			141.9			110.2			-
Related Parties		50.5			21.8			20.8			14.7			680.3			599.7			655.8			678.4
Recoverable Taxes		355.4			396.4			401.1			375.0			411.7			416.0			325.0			325.1
Other financial assets		-			-			-			-			-			-			-			40.1
Other credits		46.7			51.3			81.8			80.4			98.9			108.1			115.9			229.8
Current Assets		3,712.2			4,380.5			4,665.5			3,462.3			4,588.9			5,164.9			4,926.3			4,715.1
Deferred Income tax and social contribution		680.0			744.3			823.5			715.3			1,026.4			959.7			1,108.2			543.0
Advances to Suppliers		52.5			65.1			85.5			46.0			27.5			39.6			49.7			21.9
Related Parties		79.6			77.8			76.0			92.0			1,215.4			1,176.6			1,195.8			753.2
Recoverable Taxes		38.8			36.6			36.0			55.1			124.5			123.6			122.2			111.9
Judicial Deposits		168.9			173.6			180.9			218.4			372.5			491.1			495.6			509.2
Other financial assets		367.3			378.2			392.3			420.4			290.3			418.6			415.5			790.4
Other non-current assets		459.6			464.5			498.4			443.8			1,103.6			966.5			966.2			493.2
Investments		267.4			287.5			294.7			304.1			333.9			358.1			368.6			419.0
Biological Assets		932.8			873.6			894.8			1,561.1			795.1			717.0			767.9			968.0
Property, Plant and Equipment		6,360.3			6,432.0			6,799.9			7,980.5			8,260.0			7,928.8			7,835.2			7,867.0
Intangible		3,379.2			3,370.0			3,355.7			3,445.7			4,125.3			4,531.1			4,593.8			4,932.3
Non-current Assets		12,786.4			12,903.4			13,437.6			15,282.4			17,674.4			17,710.7			17,918.7			17,409.0
Total Assets		16,498.6			17,283.8			18,103.2			18,744.7			22,263.4			22,875.6			22,845.0			22,124.1
Current portion of long-term debt		854.3			1,052.5			1,124.0			916.4			627.1			758.7			725.7			537.1
Derivatives		37.4			96.1			379.0			132.3			94.3			29.3			15.7			9.6
Trade Accounts Payable		716.3			832.1			754.4			558.8			621.6			757.5			765.4			606.0
Salaries Payable		219.9			225.5			175.6			183.6			183.3			191.5			158.2			183.7
Taxes payable		197.4			239.2			218.8			245.3			247.1			328.9			282.4			241.7
Dividends payable		116.6			7.0			7.0			190.3			195.7			21.2			15.9			16.8
Related Parties		120.1			66.0			74.6			41.2			186.8			163.2			228.5			175.0
Other Liabilities		189.4			198.4			180.3			189.6			273.1			306.4			215.0			308.0
Current Liabilities		2,451.3			2,716.7			2,913.8			2,457.4			2,428.9			2,556.7			2,406.9			2,077.9
Long-term debt		5,322.7			5,310.8			5,961.7			6,274.9			3,699.4			4,407.8			4,402.3			4,476.9
Taxes payable		597.3			605.8			618.2			639.1			1,123.0			1,180.0			1,184.8			1,202.6
Provision for judicial demands		625.0			642.9			650.1			666.3			940.8			975.8			1,026.7			1,051.7
Related Parties		-			-			-			4.4			371.2			546.3			468.5			389.7
Pension		-			2.1			12.2			24.4			25.9			27.4			28.9			37.3
Deferred Income taxes		1,123.6			1,215.6			1,250.9			1,511.0			3,546.4			3,159.1			3,116.5			2,443.4
Other non-current liabilities		374.5			377.7			378.7			382.9			814.4			752.1			777.1			828.1
Non-current Assets		8,043.0			8,155.0			8,871.7			9,502.9			10,521.0			11,048.4			11,004.8			10,429.8
Common stock		4,687.8			4,691.1			4,691.1			4,691.8			4,691.8			4,691.8			4,691.8			4,691.8
Treasury shares		(4.2	)		(4.2	)		(19.4	)		(19.4	)		(19.4	)		(66.3	)		(67.7	)		(67.7	)
Capital Reserve		511.3			564.8			439.3			537.5			637.8			609.9			661.3			690.5
Profits Reserve		374.2			290.8			290.8			1,249.0			1,249.0			1,232.2			1,232.2			3,837.1
Accumulated earnings		370.3			621.8			660.5			-			2,299.3			2,362.5			2,456.3			-
Equity attributable to owners of the Company		5,939.4			6,164.4			6,062.4			6,458.9			8,858.6			8,830.2			8,973.9			9,151.8
Equity attributable to non-controlling interests		64.9			247.8			255.3			325.5			454.9			440.3			459.4			464.6
Total equity		6,004.3			6,412.1			6,317.7			6,784.3			9,313.4			9,270.5			9,433.4			9,616.4
Total liabilities and equity		16,498.6			17,283.8			18,103.1			18,744.7			22,263.4			22,875.6			22,845.0			22,124.1

Statement of Cash Flow

Statement of Cash Flows	Jun'10			Sept'10			Dec'10			Mar'11			Mar'11			Jun'11			Sept'11			Dec'11			Mar'12			Mar'12
(in R$ million)	1Q11			2Q11			3Q11			4Q11			FY11			1Q12			2Q12			3Q12			4Q12			FY12
Net Income		0.4			251.5			38.7			480.9			771.6			2,299.3			63.2			93.8			149.6			2,605.8
Non-cash Adjustments:		-			-			-			-			-			-			-			-			-			-
Depreciation and Amortization		290.9			400.0			380.9			287.2			1,359.0			303.7			365.5			254.6			219.0			1,142.8
Biological Assets		42.2			28.7			(21.2	)		(431.5	)		(381.9	)		(20.9	)		38.8			20.0			(97.9	)		(60.1	)
Stock option		-			-			-			-			-			-			-			4.8			6.0			10.8
Equity income of associates		(5.76	)		(2.36	)		(7.84	)		(9.23	)		(25.19	)		(1.96	)		1.31			(0.01	)		(32.60	)		(33.27	)
Losses (Gains) in Fixed Assets Disposals		3.1			(11.8	)		2.1			(28.7	)		(35.3	)		17.0			(11.5	)		(27.6	)		(71.8	)		(93.9	)
Deferred Income and Social Contribution Taxes		(0.7	)		104.4			16.4			208.9			329.1			1,197.8			(277.7	)		69.7			(27.0	)		962.8
Judicial demands' provision		-			-			-			-			-			-			-			-			-			-
Non-controlling interest		1.74			(10.70	)		8.03			5.92			5.00			3.11			23.67			12.97			(0.80	)		38.96
Interest, monetary and exchange variations, net		167.0			(62.2	)		53.2			80.6			238.5			(33.7	)		562.3			126.6			(20.0	)		635.1
Effects of formation of JVs		-			-			-			-			-			(3,315.1	)		18.2			-			198.5			(3,098.5	)
Capital gains		-			(223.1	)		-			223.1			-			-			-			-			-			-
Other Non-cash Items		19.4			199.2			(1.6	)		(209.4	)		7.5			5.2			(5.2	)		-			(5.7	)		(5.7	)
Variation on Assets and Liabilities
Accounts receivable		153.3			(153.4	)		135.5			29.3			164.7			(123.3	)		(105.6	)		(38.6	)		(93.8	)		(361.1	)
Restricted Cash		-			-			-			(143.0	)		(143.0	)		113.5			7.7			(35.5	)		(6.2	)		79.5
Inventories		(304.03	)		(440.84	)		(19.42	)		848.86			84.58			(326.63	)		(311.82	)		(34.70	)		486.37			(186.78	)
Related Parties		-			-			-			(50.1	)		(50.1	)		(1,033.6	)		142.6			(87.8	)		227.2			(751.7	)
Advances to Suppliers		(76.7	)		16.9			4.9			71.6			16.8			(122.1	)		18.2			21.5			(20.9	)		(103.3	)
Accounts payable		146.86			115.83			(77.73	)		(217.32	)		(32.36	)		241.24			124.96			7.99			(153.98	)		220.21
Salaries payable		78.3			5.6			(49.9	)		2.2			36.2			110.9			5.1			(33.3	)		25.5			108.2
Provision for judicial demands from legal proceedings		10.7			18.9			(2.6	)		(0.1	)		26.9			33.1			(33.1	)		50.9			93.1			144.0
Derivatives		70.7			(214.6	)		(108.4	)		265.6			13.3			(79.8	)		(62.1	)		(4.4	)		34.0			(112.3	)
Taxes payable		(29.0	)		34.2			(23.2	)		18.0			-			908.8			15.5			(59.0	)		21.0			886.3
Recoverable taxes		-			-			-			-			-			-			-			-			(17.1	)		(17.1	)
Other assets and liabilities, net		39.0			(98.2	)		(101.6	)		112.5			(48.3	)		429.6			(6.8	)		(55.0	)		(416.9	)		(49.1	)
Cash Flow from Operating Activities		607.3			(41.9	)		226.3			1,545.4			2,337.1			606.1			573.3			286.9			495.2			1,961.5
Aquisitions, net of aquired cash and advances for future		-			-			-			(157.3	)		(157.3	)		-			-			-			(72.9	)		(72.9	)
Contributed cash to Raízen's formation		-			-			-			-			-			(173.1	)		-			-			-			(173.1	)
Additions on Investments, Net of Cash Received		(3.7	)		(12.7	)		-			16.5			-			-			(99.1	)		(0.9	)		57.6			(42.3	)
Additions on Property, Plant and Equipment		(513.9	)		(312.6	)		(533.0	)		(932.2	)		(2,291.6	)		(491.5	)		(243.3	)		(346.3	)		(503.4	)		(1,584.5	)
Biological Assets expenses		(194.6	)		(198.1	)		(174.8	)		(178.2	)		(745.6	)		(217.2	)		(117.9	)		(107.0	)		(109.9	)		(552.0	)
Cash Received on Sale of other Fixed Assets		0.7			17.2			2.2			28.7			48.8			-			42.3			53.8			86.0			182.1
Cash Flow from Investment Activities		(711.5	)		(506.2	)		(705.5	)		(1,222.5	)		(3,145.7	)		(881.8	)		(418.0	)		(400.3	)		(542.7	)		(2,242.8	)
Additions of Debt		642.4			495.9			1,101.2			480.0			2,719.5			1,281.1			483.8			156.2			245.7			2,166.7
Payments of Principal and Interest on Debt		(561.6	)		(224.7	)		(458.2	)		(723.3	)		(1,967.9	)		(1,121.3	)		(206.0	)		(318.2	)		(197.9	)		(1,843.4	)
Capital Increase		-			-			-			4.0			4.0			-			-			-			-			-
Capital Increase by noncontrolling interests		-			403.3			-			(3.3	)		400.0			139.9			-			-			421.0			560.9
Treasury Shares		-			-			(15.2	)		-			(15.2	)		-			(46.9	)		(1.4	)		-			(48.3	)
Dividends		-			(193.0	)		-			(0.1	)		(193.1	)		-			(192.7	)		-			-			(192.7	)
Related Parties		-			-			-			37.1			37.1			-			-			-			-			-
Cash Flows from Financing Activities		80.7			481.5			627.8			(205.7	)		984.3			299.8			38.2			(163.4	)		468.8			643.4
Total Cash Flow		(23.5	)		(66.5	)		148.5			117.2			175.7			24.1			193.5			(276.8	)		421.3			362.1
Cash & Equivalents, Beginning		1,078.4			1,054.9			988.4			(2,043.3	)		1,078.4			1,254.1			1,278.2			1,471.7			(2,749.8	)		1,254.1
Cash & Equivalents, Closing		1,054.9			988.4			1,136.9			(1,926.1	)		1,254.1			1,278.2			1,471.7			1,194.9			(2,328.6	)		1,616.2

I. Cosan Limited

Income Statement

Income Statement	Jun'10			Sept'10			Dec'10			Mar'11			Mar'10			Jun'11			Set'11			Dec'11			Mar'12			Mar'12
(in R$ million)	1Q11			2Q11			3Q11			4Q11			FY11			1Q12			2Q12			3Q12			4Q12			FY12
Net Operating Revenue		3,999.6			4,716.1			4,738.4			4,609.3			18,063.5			5,188.0			6,804.3			6,310.7			5,793.9			24,096.9
Cost of Goods Sold and Services Rendered		(3,522.7	)		(3,995.2	)		(4,160.0	)		(3,472.2	)		(15,150.1	)		(4,600.0	)		(6,042.4	)		(5,670.9	)		(5,151.8	)		(21,465.0	)
Gross Profit		476.9			720.9			578.5			1,137.1			2,913.4			588.0			761.9			639.8			642.1			2,631.9
Margin		11.9	%		15.3	%		12.2	%		-23.3	%		16.1	%		11.3	%		11.2	%		10.1	%		-21.7	%		10.9	%
Operating Income (Expenses):		(339.7	)		(443.9	)		(409.2	)		(412.4	)		(1,605.3	)		2,481.6			(469.7	)		(401.1	)		(494.9	)		1,116.0
Selling		(216.1	)		(265.5	)		(271.9	)		(272.5	)		(1,026.0	)		(261.2	)		(295.3	)		(270.4	)		(309.5	)		(1,136.3	)
General and Administrative		(121.3	)		(139.3	)		(133.7	)		(151.1	)		(545.5	)		(150.5	)		(159.5	)		(160.3	)		(175.8	)		(646.0	)
Other Operating Income (Expenses), Net		(2.3	)		(39.1	)		(3.6	)		11.3			(33.8	)		22.0			3.2			29.6			90.7			145.6
Effects of formation of JVs		-			-			-			-			-			2,871.2			(18.2	)		-			(100.3	)		2,752.7
Operating Income		137.2			277.0			169.3			724.7			1,308.1			3,069.5			292.2			238.8			147.3			3,747.8
Financial results, net		(134.8	)		85.6			(89.0	)		(12.9	)		(151.1	)		11.6			(394.5	)		(70.6	)		(24.9	)		(478.5	)
Equity income of associates		5.76			2.36			7.84			9.23			25.19			1.96			(1.30	)		0.01			32.60			33.27
Income (Loss) Before taxes		8.2			364.9			88.1			721.0			1,182.2			3,083.1			(103.6	)		168.1			155.0			3,302.5
Margin		0.2	%		7.7	%		1.9	%		-3.3	%		6.5	%		59.4	%		-1.5	%		2.7	%		-46.9	%		13.7	%
Income and Social Contribution Taxes		(11.0	)		(126.2	)		(42.3	)		(235.0	)		(414.5	)		(1,224.6	)		188.2			(63.8	)		(10.0	)		(1,110.2	)
Non-controlling interest		(1.89	)		(85.24	)		(22.66	)		(186.97	)		(296.75	)		(872.96	)		(47.42	)		(48.16	)		(42.45	)		(1,010.99	)
Net Income		(4.7	)		153.4			23.1			299.1			470.9			985.5			37.2			56.2			102.5			1,181.3
Margin		-0.1	%		3.3	%		0.5	%		-1.0	%		2.6	%		19.0	%		0.5	%		0.9	%		-15.5	%		4.9	%

Balance Sheet

Balance Sheet	Jun'10		Sept'10		Dec'10		Mar'10		Jun'11		Set'11		Dec'11			Mar'12
(in R$ million)	1Q11		2Q11		3Q11		FY11		1Q12		2Q12		3Q12			FY12
Cash and Cash Equivalents		1,083.4		1,009.0		1,155.6		1,271.8		1,295.3		1,482.9		1,283.4			1,654.1
Restricted Cash		51.3		76.0		276.2		187.9		60.2		52.5		88.1			94.3
Accounts receivable		619.1		760.0		657.5		594.9		825.2		983.7		1,022.3			963.6
Derivatives		144.5		166.0		180.0		55.7		60.2		29.4		59.6			19.6
Inventories		1,066.3		1,626.8		1,642.7		670.3		1,002.0		1,361.8		1,354.4			748.2
Advances to Suppliers		323.5		293.9		268.6		229.3		172.2		141.9		110.2			-
Related Parties		50.5		21.8		20.8		14.7		680.3		599.7		655.8			678.4
Recoverable Taxes		355.4		396.4		401.1		375.0		411.7		416.0		325.0			325.1
Other financial assets		-		-		-		-		-		-		-			40.1
Other credits		47.5		51.6		82.5		81.0		99.0		108.1		115.9			230.3
Current Assets		3,741.5		4,401.3		4,685.0		3,480.6		4,606.2		5,176.1		5,014.7			4,753.6
Deferred Income tax and social contribution		680.0		744.3		823.5		715.3		1,026.4		959.7		1,108.2			543.0
Advances to Suppliers		52.5		65.1		85.5		46.0		27.5		39.6		49.7			21.9
Related Parties		79.6		77.8		76.0		92.0		1,215.4		1,176.6		1,195.8			753.2
Recoverable Taxes		38.8		36.6		36.0		55.1		124.5		123.6		122.2			111.9
Judicial Deposits		168.9		173.6		180.9		218.4		372.5		491.1		495.6			509.2
Other financial assets		367.3		378.2		392.3		420.4		290.3		418.6		415.5			790.4
Other non-current assets		464.4		470.9		504.4		449.3		1,108.3		972.1		971.9			498.7
Investments		267.4		287.5		294.7		304.1		333.9		358.1		368.6			419.0
Biological Assets		932.8		873.6		894.8		1,561.1		795.1		717.0		767.9			968.0
Property, Plant and Equipment		6,360.3		6,432.0		6,799.9		7,980.5		8,260.0		7,928.8		7,835.2			7,867.0
Intangible		3,823.1		3,813.9		3,799.6		3,889.6		4,125.3		4,531.1		4,593.8			4,932.3
Non-current Assets		13,235.1		13,353.7		13,887.6		15,731.8		17,679.2		17,716.4		17,924.4			17,414.5
Total Assets		16,976.6		17,755.0		18,572.6		19,212.4		22,285.3		22,892.5		22,939.2			22,168.1
Current portion of long-term debt		899.4		1,094.9		1,165.7		957.1		666.1		805.1		773.6			540.2
Derivatives		37.4		96.1		379.0		132.3		94.3		29.3		15.7			9.6
Trade Accounts Payable		716.3		832.1		754.4		558.8		621.6		757.5		765.4			606.0
Salaries Payable		219.9		225.5		175.6		183.6		183.3		191.5		158.2			183.7
Taxes payable		197.4		239.2		218.8		245.3		247.1		328.9		282.4			241.7
Dividends payable		44.0		2.2		2.0		72.2		82.9		9.1		8.7			9.7
Related Parties		120.1		66.0		74.6		41.2		186.8		163.2		228.5			175.5
Other Liabilities		190.0		199.2		181.1		190.4		273.8		307.3		215.9			308.0
Current Liabilities		2,424.4		2,755.1		2,951.2		2,380.8		2,355.9		2,591.8		2,448.5			2,074.5
Long-term debt		5,322.7		5,310.8		5,961.7		6,274.9		3,699.4		4,407.8		4,589.9			4,659.2
Taxes payable		597.3		605.8		618.2		639.1		1,123.0		1,180.0		1,184.8			1,202.6
Provision for judicial demands		625.0		642.9		650.1		666.3		940.8		975.8		1,026.7			1,051.7
Related Parties		-		-		-		4.4		371.2		546.3		468.5			389.7
Pension		0.0		2.1		12.2		24.4		25.9		27.4		28.9			37.3
Deferred Income taxes		1,123.6		1,215.6		1,250.9		1,511.0		3,546.4		3,159.1		3,116.5			2,443.4
Other non-current liabilities		374.5		377.7		378.7		382.9		814.4		752.1		777.1			828.1
Non-current Assets		8,043.0		8,155.0		8,871.7		9,502.9		10,521.0		11,048.4		11,192.3			10,612.0
Common stock		5.3		5.3		5.3		5.3		5.3		5.3		5.3			5.3
Treasury shares		-		-		-		-		-		-		(109.4	)		-
Capital Reserve		3,667.1		3,695.7		3,608.5		3,668.2		3,725.5		3,718.8		3,750.3			3,634.7
Profits Reserve		-		-		-		-		1,872.5		1,773.6		(191.4	)		-
Accumulated earnings		531.0		565.1		588.2		887.3		-		-		1,824.9			1,937.3
Equity attributable to owners of the Company		4,203.4		4,266.2		4,202.0		4,560.9		5,603.3		5,497.7		5,471.1			5,577.3
Equity attributable to non-controlling interests		2,305.9		2,578.7		2,547.7		2,767.8		3,805.0		3,754.5		3,827.2			3,904.3
Total equity		6,509.3		6,844.9		6,749.7		7,328.7		9,408.4		9,252.2		9,298.3			9,481.6
Total liabilities and equity		16,976.6		17,755.0		18,572.6		19,212.4		22,285.3		22,892.5		22,939.2			22,168.1

Statement of Cash Flow

Statement of Cash Flows	Jun'10			Sept'10			Dec'10			Mar'11			Mar'10			Jun'11			Set'11			Dec'11			Mar'12			Mar'12
(in R$ million)	1Q11			2Q11			3Q11			4Q11			FY11			1Q12			2Q12			3Q12			4Q12			FY12
Net Income		(2.8	)		238.6			45.8			486.1			767.7			1,858.1			84.6			104.3			145.3			2,192.3
Non-cash Adjustments:		-			-			-			-			-			-			-			-			-			-
Depreciation and Amortization		290.9			400.0			380.9			287.2			1,359.0			303.7			365.5			254.7			218.8			1,142.8
Biological Assets		42.2			28.7			(21.2	)		(431.5	)		(381.9	)		(20.9	)		38.8			20.0			(97.9	)		(60.1	)
Equity income of associates		(5.8	)		(2.4	)		(7.8	)		(9.2	)		(25.2	)		(1.9	)		1.3			0.0			(32.6	)		(33.3	)
Stock option		-			-			-			-			-			-			-			4.80			6.00			10.80
Losses (Gains) in Fixed Assets Disposals		3.1			(11.8	)		2.1			(28.7	)		(35.3	)		17.0			(11.5	)		(27.6	)		(71.8	)		(93.9	)
Deferred Income and Social Contribution Taxes		(0.7	)		104.4			16.4			208.9			329.1			1,197.8			(277.7	)		69.7			(27.0	)		962.8
Interest, monetary and exchange variations, net		167.5			(64.9	)		52.5			83.4			238.5			(27.6	)		569.6			136.4			(31.9	)		646.5
Effects of formation of JVs		-			-			-			-			-			(2,871.2	)		18.2			-			2.2			(2,850.9	)
Capital gains		-			(220.9	)		-			220.9			-			-			-			-			-			-
Other Non-cash Items		19.4			197.0			(0.9	)		(207.9	)		7.5			3.5			13.4			(4.6	)		(18.0	)		(5.7	)
Variation on Assets and Liabilities Accounts receivable		153.3			(153.4	)		135.5			29.3			164.7			(123.3	)		(105.6	)		(38.6	)		(93.8	)		(361.1	)
Restricted Cash		-			-			-			(142.97	)		(142.97	)		113.48			7.70			(35.51	)		(6.22	)		79.45
Judicial Deposits		-			-			-			-			-			(108.1	)		108.1			-			-			-
Inventories		(304.0	)		(440.8	)		(19.4	)		848.9			84.6			(326.6	)		(311.8	)		(34.7	)		486.4			(186.8	)
Taxes recoverable		-			-			-			-			-			-			-			(17.13	)		-			(17.13	)
Related Parties		-			-			-			-			-			(1,033.6	)		142.6			(801.5	)		940.9			(751.7	)
Advances to Suppliers		(76.7	)		16.9			4.9			71.6			16.8			(122.1	)		18.2			21.5			(20.9	)		(103.3	)
Accounts payable		146.9			115.8			(77.7	)		(217.3	)		(32.4	)		241.2			125.0			8.0			(154.0	)		220.2
Salaries payable		78.3			5.6			(49.9	)		2.2			36.2			110.9			5.1			(33.3	)		25.5			108.2
Provision for judicial demands from legal proceedings		10.7			18.9			(3.3	)		0.6			26.9			33.1			(33.1	)		118.9			25.0			144.0
Derivatives		70.7			(214.6	)		(108.4	)		265.6			13.3			908.8			(1,050.0	)		(4.4	)		33.3			(112.3	)
Taxes payable		(29.0	)		34.2			(23.2	)		(32.1	)		(50.1	)		(79.2	)		1,003.4			(59.0	)		21.0			886.3
Other assets and liabilities, net		39.6			(91.9	)		(102.0	)		105.1			(49.2	)		532.4			(120.7	)		(101.3	)		(176.0	)		134.5
																				-			-			-			-
Cash Flow from Operating Activities		603.4			(40.4	)		224.3			1,540.1			2,327.2			605.5			591.0			(419.2	)		1,174.3			1,951.6
Aquisitions, net of aquired cash and advances for future		-			-			-			(157.3	)		(157.3	)		-			-			-			(72.9	)		(72.9	)
capital increases		-			-			-			(157.3	)		(157.3	)		-			-			-			(72.9	)		(72.9	)
capital increases
Contributed cash to Raízen's formation		-			-			-			-			-			(173.1	)		0.0			-			-			(173.1	)
Redemption of shares in subsidiary		-			-			-			-			-			-			-			-			(99.8	)		(99.8	)
Received Dividends		-			-			-			-			-			-			-			-			121.4			121.4
Additions on Investments, Net of Cash Received		(3.7	)		(12.7	)		-			16.5			-			-			(99.1	)		(0.9	)		57.6			(42.3	)
Additions on Property, Plant and Equipment		(513.9	)		(312.6	)		(533.0	)		(932.2	)		(2,291.6	)		(491.5	)		(243.3	)		(346.3	)		(503.4	)		(1,584.5	)
Sugarcane planting and growing costs		(194.6	)		(198.1	)		(174.8	)		(178.2	)		(745.6	)		(217.2	)		(117.9	)		(107.0	)		(109.9	)		(552.0	)
Cash Received on Sale of other Fixed Assets		0.7			17.2			2.2			28.7			48.8			-			42.3			53.8			86.0			182.1
Cash Flow from Investment Activities		(711.5	)		(506.2	)		(705.5	)		(1,222.5	)		(3,145.7	)		(881.8	)		(418.0	)		(400.3	)		(521.1	)		(2,221.1	)
Additions of Debt		642.4			495.9			1,101.2			480.0			2,719.5			1,281.1			483.8			335.9			245.7			2,346.4
Payments of Principal and Interest on Debt		(561.6	)		(224.7	)		(458.2	)		(727.0	)		(1,971.6	)		(1,121.3	)		(206.0	)		395.6			(957.7	)		(1,889.4	)
Capital Increase		-			-			-			4.0			4.0			-			-			-			-			-
Capital Increase by noncontrolling interests		-			403.3			-			(3.3	)		400.0			139.9			0.0			-			421.0			560.9
Treasury Shares		-			-			(15.2	)		-			(15.2	)		-			(54.4	)		(101.2	)		107.4			(48.3	)
Dividends		-			(192.4	)		-			(0.7	)		(193.1	)		-			(228.2	)		(4.8	)		(100.6	)		(333.7	)
Acquisition of shares of subsidiary		-			-			-			37.1			37.1			-			-			(4.6	)		4.6			-
Related parties		-			-			-			-			-			-			-			-			-			-
Exchange rate variation excluding Cash and Cash		0.0			(9.9	)		0.2			8.5			(1.2	)					19.3			(0.4	)		(3.1	)		15.8
Cash Flows from Financing Activities		80.8			472.2			627.9			(201.4	)		979.5			299.8			14.4			620.4			(282.7	)		651.9
																				-			-			0			-
Total Cash Flow		(27.4	)		(74.4	)		146.7			116.2			161.0			23.5			187.5			(199.2	)		370.529872			382.4
																				-			-			0			-
Cash & Equivalents, Beginning		1,110.8			1,083.4			1,009.0			(2,092.4	)		1,110.8			1,271.8			1,295.3			1,482.9			(2,778.1	)		1,271.8
Cash & Equivalents, Closing		1,083.4			1,009.0			1,155.6			(1,976.2	)		1,271.8			1,295.3			1,482.9			1,283.4			(2,407.4	)		1,654.1

Item 2

Consolidated Financial Statements

Cosan Limited

March 31, 2012 and 2011

Cosan Limited

Consolidated financial statements

March 31, 2012,2011 and 2010

Contents

Report of Independent Auditors	1
Consolidated statements of financial position	3
Consolidated income statements	5
Consolidated statements of changes in equity	6
Consolidated statements of comprehensive income	7
Consolidated statements of cash flows	8
Notes to the consolidated financial statements	10

Report of Independent Auditors

The Board of Directors and Shareholders of

Cosan Limited

Bermuda

We have audited the accompanying consolidated financial statements of Cosan Limited, which comprise the consolidated statement of financial position as at March 31, 2012, and the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the consolidated financial statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), and for the internal controls management determined as necessary to enable the preparation of consolidated financial statements free from material misstatement, regardless of whether due to fraud or error.

Independent auditors’ responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Cosan Limited as at March 31, 2012, and the consolidated results of its operations and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

São Paulo, Brazil, May 30, 2012

ERNST & YOUNG TERCO

Auditores Independentes S.S.

Luiz Carlos Nannini

Partner

Cosan Limited

Consolidated statements of financial position

March 31, 2012 and 2011

(In thousands of Reais)

	Note	2012		2011
Asset
Current
Cash and cash equivalents	3		1,654,146		1,271,780
Restricted cash	4		94,268		187,944
Accounts receivable	6		963,587		594,857
Derivatives	26		19,590		55,682
Inventories	7		748,150		670,331
Related parties	9		678,374		14,669
Recoverable taxes	8		325,096		374,991
Other financial assets	5		40,080		-
Other credits			230,289		310,348
			4,753,580		3,480,602



Non-current
Deferred Income tax and social contribution	17		543,024		116,985
Advances to suppliers			21,865		46,037
Related parties	9		753,153		91,954
Recoverable taxes	8		111,856		55,066
Judicial deposits	18		509,235		218,372
Other financial assets	5		790,402		420,417
Other non-current assets			498,734		449,284
Equity method investments	11		419,029		304,142
Biological assets	12		968,023		1,561,132
Property, plant and equipment	13		7,866,963		7,980,524
Intangible assets	14		4,932,255		3,889,575
			17,414,539		15,133,488
Total assets			22,168,119		18,614,090

	Note	2012		2011
Liabilities
Current
Current portion of long-term debt	15		540,237		957,134
Derivatives	26		9,611		132,289
Trade accounts payable			606,029		558,766
Salaries payable			183,660		183,560
Taxes payable	16		241,719		245,284
Dividends payable			9,725		72,229
Related parties	9		175,488		41,163
Other current liabilities			307,994		190,381
			2,074,463		2,380,806
Non-current
Long-term debt	15		4,659,152		6,274,895
Taxes payable	16		1,202,624		639,071
Provision for judicial demands	18		1,051,677		666,282
Related parties	9		389,718		4,444
Pension	27		37,312		24,380
Deferred Income taxes	17		2,443,430		912,617
Other non-current liabilities			828,120		382,898
			10,612,033		8,904,587

Equity	20
Common Stock			5,328		5,328
Capital reserve			3,635,308		3,668,218
Accumulated earnings			1,936,687		887,336
Equity attributable to owners of the Company			5,577,323		4,560,882
Equity attributable to non-controlling interests			3,904,300		2,767,815
Total equity			9,481,623		7,328,697
Total liabilities and equity			22,168,119		18,614,090

See accompanying notes to consolidated financial statements.

Cosan Limited

Consolidated income statements

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated )

	Note	2012			2011			2010
Net sales	22		24,096,881			18,063,480			15,336,055
Cost of goods sold	23		(21,465,009	)		(15,150,079	)		(13,271,331	)
Gross profit			2,631,872			2,913,401			2,064,724

Operational income /(expenses)
Selling	23		(1,136,285	)		(1,026,000	)		(862,726	)
General and administrative	23		(646,041	)		(545,450	)		(501,676	)
Other, net	25		145,550			(33,828	)		37,523
Gain on tax recovery program	16		-			-			270,333
Gain on the de-recognition of subsidiaries to form the JVs	21		2,752,730			-			-
			1,115,954			(1,605,278	)		(1,056,546	)
Income before financial results, equity income of associates and income taxes			3,747,826			1,308,123			1,008,178

Equity income of associates	11		33,268			25,187			4,178
Financial results, net	24		(478,549	)		(151,147	)		493,441
			(445,281	)		(125,960	)		497,619
Income before income tax			3,302,545			1,182,164			1,505,797

Income taxes
Current	17		(147,455	)		(85,437	)		(78,381	)
Deferred	17		(962,758	)		(329,071	)		(344,923	)
Net income for the year			2,192,332			767,656			1,082,493

Net income attributable to non-controlling interests			(1,010,990	)		(296,750	)		(376,399	)
Net income attributable to owners of the Company			1,181,342			470,906			706,094

Earnings per share attributable to owners of the Company – Basic and Diluted (In Reais)	20	$	R 4.40		$	R 1.74		$	R 2.61

See accompanying notes to consolidated financial statements

Cosan Limited

Consolidated statement of changes in equity

Years ended March 31, 2012, 2011 and 2010

(In Thousands of Reais)

			Capital reserve
	Common stock		Additional paid in capital			Other components of equity			Accumulated earnings (losses)			Total			Non-controlling interests			Total equity
April 1, 2009		5,328		3,723,728			(62,688	)		(170,370	)		3,495,998			1,171,929			4,667,927
Acquisition of Teaçu		-		100,143			-			-			100,143			207,368			307,511
Issuance of subsidiary shares to non-controlling interest		-		78,407			-			-			78,407			423,859			502,266
Acquisition of non-controlling interest subsidiary		-		(34,957	)		-			-			(34,957	)		(22,633	)		(57,590	)
Exercise of stock option		-		(4,450	)		(20	)		-			(4,470	)		10,472			6,002
Exercise of common stock warrants		-		(43,641	)		309			-			(43,332	)		138,416			95,084
Acquisition of TEAS		-		-			-			-			-			15,873			15,873
Cumulative translation adjustment - CTA		-		-			(133,575	)		-			(133,575	)		(1,111	)		(134,686	)
Pension		-		-			25,739			-			25,739			16,317			42,056
Share based compensation		-		5,451			-			-			5,451			3,520			8,971
\Net income		-		-			-			706,094			706,094			376,399			1,082,493
Dividends		-		-			-			-			-			(43,981	)		(43,981	)
March 31, 2010		5,328		3,824,681			(170,235	)		535,724			4,195,498			2,296,428			6,491,926

Exercise of stock option		-		(1,018	)		(44	)		-			(1,062	)		6,409			5,347
Treasury shares		-		(9,465	)		-			-			(9,465	)		(5,754	)		(15,219	)
Issuance of common stock by Rumo to non-controlling shareholders´		-		128,363			-			-			128,363			271,637			400,000
Acquisition of Logispot		-		-						-			-			64,277			64,277
Hedge accounting		-		-			(89,117	)		-			(89,117	)		(54,181	)		(143,298	)
Cumulative translation adjustment - CTA		-		-			(4,180	)		-			(4,180	)		131			(4,049	)
Pension		-		-			(12,087	)		-			(12,087	)		(7,349	)		(19,436	)
Adjustment from impact recorded directly in equity of subsidiary		-		(522	)		-			-			(522	)		(821	)		(1,343	)
Share based compensation		-		1,842			-			-			1,842			1,119			2,961
Net income		-		-			-			470,906			470,906			296,750			767,656
Dividends		-		-			-			(119,294	)		(119,294	)		(100,831	)		(220,125	)
March 31, 2011		5,328		3,943,881			(275,663	)		887,336			4,560,882			2,767,815			7,328,697
Hedge accounting		-		-			33,126						33,126			20,014			53,140
Hedge accounting – reversal of OCI upon deconsolidation of subsidiaries and formation of the JVs		-		-			64,961						64,961			39,311			104,272
Cumulative translation adjustment - CTA		-		-			15,790						15,790			4,934			20,724
Pension							(14,758	)					(14,758	)		(8,931	)		(23,689	)
Share based compensation		-		6,728			-						6,728			4,072			10,800
Capital contribution to Rumo by noncontrolling shareholders		-		-						(1,993	)		(1,993	)		77,864			75,871
Other		-		700						11,000			11,700			(2,612	)		9,088
Acquisition of treasury shares by subsidiaries		-		-			(30,065	)					(30,065	)		(18,193	)		(48,258	)
Non-controlling shareholder contribution to Raízen Combustíveis JV		-		-			-						-			9,036			9,036
Acquisition of treasury shares		-		(109,392	)		-						(109,392	)		-			(109,392	)
Net income		-		-			-			1,181,342			1,181,342			1,010,990			2,192,332
Dividends		-		-			-			(140,998	)		(140,998	)		-			(140,998	)
March 31, 2012		5,328		3,841,917			(206,609	)		1,936,687			5,577,323			3,904,300			9,481,623

Cosan Limited

Consolidated statement of comprehensive income

Years ended March 31, 2012, 2011 and 2010

(In Thousands of Reais)

	2012			2011			2010

Net Income		2,192,332			767,656			1,082,493

Other comprehensive income (loss)
Exchange differences on translation of foreign operations - CTA		20,724			(4,049	)		(134,685	)
Net movement on cash flow hedge		238,503			(217,117	)		-
Actuarial gains and losses defined benefit plans		(35,892	)		(29,447	)		63,721
Income tax effects		(68,888	)		83,830			(21,665	)
		154,447			(166,783	)		(92,629	)
Other comprehensive income for the year, net of tax
Total comprehensive Income for the year, net of tax		2,346,779			600,873			989,864

Attributed to:
Owners of the Company		1,280,461			365,521			598,258
Non-controlling interests		1,066,318			235,351			391,606

See accompanying notes to consolidated financial statements.

Cosan Limited

Consolidated statements of cash flows

Years ended March 31, 2012, 2011 and 2010

(In Thousands of Reais)

	2012			2011			2010
Operating activities
Net income		2,192,332			767,656			1,082,493
Non-cash adjustments to reconcile net income to net cash flows from operating activities
Depreciation and amortization		1,142,780			1.359.000			1.127.960
Biological assets		(60,093	)		(381.894	)		(44.871	)
Equity income of associates		(33,268	)		(25,187	)		(4,178	)
Gain on disposal of property, plant and equipment		(93,892	)		(35,295	)		(80,466	)
Goodwill write off aviation business		-			-			41,066
Share based compensation expenses		10,800			2,961			8,971
Deferred income taxes		962,758			329,071			344,923
Gain on tax recovery program		-			-			(270,333	)
Gain on the de-recognition of subsidiaries operations to form the JVs		(2,850,868	)		-			-
Interest, monetary and exchange variations, net		646,527			238,482			(185,280	)
Other, net		(5,711	)		4,584			(26,858	)
		1,911,365			2,259,378			1,993,427
Changes in Assets / Liabilities
Accounts receivable		(361,147	)		164,693			2,415
Restricted cash		79,452			(142,972	)		(33,215	)
Inventories		(186,775	)		84,951			380,253
Taxes recoverable		(17,126	)		(50,068	)		(36,572	)
Advances to suppliers		(103,294	)		16,779			66,542
Accounts payable		220,213			(32,361	)		(46,515	)
Provision for judicial demands from legal proceedings		143,960			26,859			25,829
Salaries payable		108,177			36,224			30,565
Derivatives		(112,281	)		13,347			(231,043	)
Taxes payable		886,283			75,639			311,360
Related parties		(751,679	)		(5,536	)		111,953
Other assets and liabilities, net		134,491			(119,692	)		(399,172	)

Net Cash Flow from Operating Activities		1,951,639			2,327,241			2,175,827

Cosan Limited

Consolidated statements of cash flows (Continued)

Years ended March 31, 2012, 2011 and 2010

(In Thousands of Reais)

	2012			2011			2010
Investing Activities
Acquisitions , net of cash acquired		(72,930	)		(157,345	)		(16,041	)
Cash contributed upon the formation of Raizen		(173,116	)		-			-
Redemption of shares in subsidiary		(99,784	)		-			-
Dividends received		121,433			-			-
Additions to investments		(42,328	)		-			-
Purchase of property, plant and equipment, software and intangible assets		(1,584,543	)		(2,291,647	)		(1,897,965	)
Sugar-cane planting and growing costs		(551,974	)		(745,572	)		(647,467	)
Proceeds from sale of aviation business		-			-			115,601
Proceeds from sale of property, plant and equipment		182,116			48,832			10,613
Net Cash Flow used Investing Activities		(2,221,126	)		(3,145,732	)		(2,435,259	)

Financing Activities
Proceeds from long-term debt		2,346,396			2,719,522			3,471,462
Repayment of long-term debt		(1,889,362	)		(1,971,579	)		(3,148,837	)
Capital increase		-			3,996			147,697
Cash proceeds from non-controlling interests		560,946			400,000			-
Treasury shares		(48,258	)		(15,219	)		-
Dividends paid		(333,659	)		(193,095	)		-
Related parties		-			37,072			(152,442	)
Net cash flows from financing activities		636,063			980,697			317,880

Impact of foreign currency exchange on cash and cash equivalent balances		15,790			(1,192	)		(125,618	)
Net increase in Cash and Cash Equivalents		382,366			161,014			(67,170	)

Cash and cash equivalents at the beginning of the year		1,271,780			1,110,766			1,177,936
Cash and cash equivalents at the end of the year		1,654,146			1,271,780			1,110,766

Supplemental disclosure of cash flow information
Financial interest expenses paid		305,527			450,051			388,854
Income taxes paid		179,655			38,844			62,337
Issuance of shares for acquisitions of Curupay		-			-			624,192
Issuance of subsidiary shares (Rumo) for acquisition of Teaçu		-			-			261,777

See accompanying notes to consolidated financial statements

Cosan Limited

Notes to the consolidated financial statement

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

1.	Operations

Cosan Limited (“Cosan” and “the Company”) was incorporated in Bermuda on April 30, 2007. Its shares are traded on the New York Stock Exchange (NYSE – CZZ) and in the São Paulo Stock Exchange (BM&F Bovespa – CZLT11). Mr. Rubens Ometto Silveira Mello is the ultimate controlling shareholder of the Company. Cosan Limited controls Cosan S.A. Indústria e Comércio and its subsidiaries (“Cosan S.A.”) with a 62.30 % interest.

Cosan S.A.’s, through its subsidiaries and jointly controlled entities, primary activities are in the following business segments: (i) Sugar & Ethanol: the production of sugar and ethanol, as well as the energy cogeneration produced from sugar cane bagasse, through its joint venture named Raízen Energia Participações S.A. (“Raízen Energia”); (ii) Fuel Distribution through its joint venture named Raízen Combustíveis S.A. (“Raízen Combustíveis”); (iii) Logistics services including transportation, port lifting and storage of sugar, through its subsidiary Novo Rumo Logística S.A. (Rumo); (iv) Production and distribution of lubricants licensed by Mobil trademark and, (v) since July 1, 2011, the activity of purchasing and selling of sugar in the retail segment, which is performed by Raízen Energia which was acquired by the Company, and assigned to a new segment named “Cosan Alimentos” (Note 10).

On June 1, 2011, the Company completed, jointly with Royal Dutch Shell ("Shell"), the formation of two entities under joint control ("joint ventures" or “JVs”): (i) Raizen Combustíveis, in the fuel distribution segment, and (ii) Raizen Energia, in the segment of production and trade of sugar, ethanol and energy cogeneration. Cosan S.A. and Shell share control of the two entities, with each company holding 50% of the economic and voting control. Cosan recorded its investments in the joint ventures through proportionate consolidation. Cosan contributed with its sugar, ethanol, cogeneration and fuel distribution business in the formation of the joint ventures. Shell contributed its fuel distribution business in Brazil and interests in two entities involved in activities related to research and development of second generation ethanol (Iogen and Codexis), the license to use the Shell brand in the amount of R$ 533 million and a cash contribution of approximately R$ 1.8 billion over a period of two years. The accounting effects arising from the formation of Raizen Combustíveis and Raizen Energia are presented in Note 21, which included the recording of the underlying net assets of the joint ventures’ net assets at their estimated fair value, and recording a large gain on the deconsolidation of the previous subsidiaries. Accordingly, the Company’s consolidated financial position and results of operations for periods subsequent to the joint venture formation are not necessarily comparable to pre-formation amounts.

The logistics of commodities and lubricants distribution business, together with the investment in Radar Propriedades Agrícolas S.A. ("Radar") were not contributed to the joint ventures.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies

2.1.

Basis of Preparation

The consolidated financial statements of Company have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

These consolidated financial statements were authorized for issue by the Audit Committee on May 30, 2012.

Basis of preparation

The consolidated financial statements have been prepared on a historical cost basis, except for derivative financial instruments and biological assets that have been measured at fair value.

Functional and presentation currency

The consolidated financial statements are presented in Brazilian reais. However, the functional currency of Cosan is the U.S. dollar. The Brazilian real is the currency of the primary economic environment in which Cosan S.A. and its subsidiaries, located in Brazil, operate and generate and expend cash and is the functional currency, except for the foreign subsidiaries in which U.S. dollar is the functional currency.

The financial statements of each subsidiary included in the consolidation and equity method investments are prepared based on the functional currency of each company. Cosan, certain subsidiaries and equity method investments with a functional currency other than Brazilian reais, had their assets and liabilities converted into Brazilian reais at the exchange rate as of year end and their revenues and expenses were converted by applying the average monthly rates.

The exchange rate of the Brazilian real (R$) to the U.S. dollar (US$) was R$1.8221=US$1.00 at March 31, 2012, R$1.6287=US$1.00 at March 31, 2011 and R$1.7810=US$1.00 at March 31, 2010.

Significant accounting judgments, estimates and assumptions

The preparation of the Company’s consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities at the end of the reporting period. Such estimates and assumptions are reviewed on a continuous basis and changes are recognized in the period in which the estimates are revised and in any future periods affected.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.1.

Basis of Preparation (Continued)

Significant accounting judgments, estimates and assumptions (Continued)

A significant change in the facts and circumstances on which judgments, estimates and assumptions are based, may cause a material impact on the results and financial condition of the Company. The significant judgments, estimates and assumptions are as follows:

Deferred income taxes and social contribution

Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. For further detail on deferred income taxes see Note 17.

Biological assets

Biological assets are measured at fair value at each reporting date and the effects of changes in fair value between the periods are allocated directly to cost of goods sold. For further detail on the assumptions used see Note 12.

Intangible assets and property, plant and equipment (“P, P&E”)

The calculation of depreciation and amortization of intangible assets and P,P&E includes the estimation of the useful lives. Also, the determination of the acquisition date fair value of intangible assets and P,P&E acquired in business combinations or rising from the formation of a JV is a significant estimate.

The Company annually performs a review of impairment indicators for intangible assets and P,P&E. Also, an impairment test is undertaken for goodwill. An impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The key assumptions used to determine the recoverable amount for the different cash generating units for which goodwill is allocated are further explained in Note 14.

Share based payments

Cosan S.A. measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The estimation of fair value for share-based payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the valuation model including the assumption of the expected life of the share option, volatility and dividend yield. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 28.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.1.

Basis of Preparation (Continued)

Pension benefits

The cost of defined benefit pension plans and other post employment medical benefits and the present value of the pension obligation is determined using actuarial valuations. An actuarial valuation involves making various assumptions which may differ from actual results in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. A defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. Further details about the assumptions used are included in Note 27.

Fair value measurement of contingent consideration

Contingent consideration, resulting from business combinations, is valued at fair value at the acquisition date.

Fair value of financial instruments

When the fair value of financial assets and liabilities recorded in the statement of financial position cannot be derived from active markets, their fair value is determined using valuation techniques including the discounted cash flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. For further details on financial instruments refer to Note 26.

(d)

Reclassifications and other adjustments

Certain amounts in the prior year consolidated financial statements have been adjusted (reclassified) so as to conform with current year presentations. These adjustments include:

Deferred tax asset and liability balances of R$598,348 related the same taxing jurisdiction have been offset in the March 31, 2011 consolidated balance sheet.

The starting point for the consolidated statement of cash flows is “net income” for all periods. In previous presentations, the Company had started its consolidated statement of cash flows with “net income attributable to owners of the Company” This change resulted in a reclassification from “non-controlling interests” and has no impact on cash flows from operating activities. Also, certain reclassifications have been made between depreciation and amortization and biological assets captions within operating activities to conform with current year presentation.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.2

Basis of consolidation

The consolidated financial statements include the accounts of Cosan, its subsidiaries and jointly controlled entities. The Subsidiaries and jointly controlled subsidiaries are listed below:

	2012			2011			2010
Direct interest subsidiary
Cosan S.A. Indústria e Comercio		62.30	%		62.20	%		62.30	%

Interest of Cosan S.A. Indústria e Comércio in its subsidiaries and jointly controlled entities:

Subsidiaries	2012			2011			2010
Administração de Participações Aguassanta Ltda.		91,50	%		91.50	%		91.50	%
Bioinvestments Negócios e Participações S.A.		100	%		91.50	%		99.90	%
Vale da Ponte Alta S.A.		100	%		91.50	%		99.90	%
Águas da Ponte Alta S.A.		100	%		91.50	%		99.90	%
Proud Participações S.A.		100	%		99.90	%		99.90	%
Cosan Distribuidora de Combustíveis Ltda.		-			99.90	%		99.90	%
Cosan Overseas Limited		100	%		100	%		-
Pasadena Empreendimentos e Participações S.A.		100	%		100	%		100	%
Cosan Cayman Finance Limited		100	%		100	%		-
Cosan Cayman II Limited		100	%		-			-
Cosan Lubrificantes e Especialidades S.A. (former Cosan Combustíveis e Lubrificantes S.A.)		100	%		100	%		100	%
CCL Cayman Finance Limited		100	%		100	%		-
Copsapar Participações S.A.		90	%		90	%		90	%
Novo Rumo Logística S.A.		92.90	%		92.90	%		92.90	%
Rumo Logística S.A.		-			69.70	%		90	%
Handson Participações S.A.		100	%		-			-
Docelar Alimentos e Bebidas S.A.		99.90	%		99.90	%		99.90	%
Cosan Operadora Portuária S.A.		69.70	%		69.70	%		90	%
Teaçú Armazéns Gerais S.A.		-			69.70	%		90	%
Logispot Armazéns Gerais S.A.		35.50	%		35.50	%		-
Stallion S.A.		100	%
Jointly-Controlled entities
Raízen S.A. (1)		50	%		-			-
Raízen Energia Participações S.A. (1) (2)		50	%		-			-
Raízen Combustíveis S.A. (1) (2)		50	%		-			-
IPUTI Empreendimentos e Participações S.A. (1)		50	%		-			-

(1)

Company jointly-controlled with Shell.

(2)

Represents voting and economic interest. Cosan S.A. holds 51% of the outstanding shares of Raízen Energia, and 49% of the outstanding shares of Raízen Combustíveis.

The subsidiaries are fully consolidated from the date of acquisition of control, and continue to be consolidated until the date that control ceases to exist. The jointly controlled entities are consolidated proportionally from the date of acquisition of joint control until the date that joint control ceases to exist.

The financial statement of subsidiaries and jointly controlled entities are prepared for the same disclosure period as that of the parent company, using consistent accounting policies. All balances held between the subsidiary companies and jointly controlled entities, income and expenses and unrealized gains and losses derived from intercompany transactions are eliminated.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.2

Basis of consolidation (Continued)

Any change in the ownership interest of a subsidiary that does not result in loss of control is accounted for as an equity transaction.

The Company holds an interest in jointly controlled, in which entrepreneurs maintain contractual arrangement establishes joint control. The Company recognizes its interest in jointly controlled using the proportional consolidation in its consolidated financial statement.

The financial statements of jointly controlled are prepared for the same period the company's disclosure.

Adjustments are made where necessary to align with the accounting policies adopted by the Company.

2.3

Summary of significant accounting practices

The accounting policies listed below have been consistently applied to all years presented in these consolidated financial statements and have been applied consistently by the subsidiaries and jointly-controlled entities.

Revenue recognition

Revenues from the sale of products or goods are recognized when the entity transfers to the buyer the significant risks and rewards incidental to ownership of the goods and merchandise, and when it is probable that the economic benefits associated with the transaction will flow to the Company. The sales prices are fixed based on purchase orders or contracts. Services or goods for which payment is made in advance are recorded as deferred revenue under the caption other liabilities and recorded as revenue upon delivery of goods or performance of services.

Foreign currency transactions

Transactions in foreign currencies are initially recorded at the functional currency rates, prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency spot rate of exchange at the reporting date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.3.

Summary of significant accounting practices (Continued)

Financial instruments – Recognition initial and subsequent measurement

(i)

Financial assets

Initial recognition and measurement

Financial assets are classified into the following categories: at fair value through profit or loss, held-to-maturity, available for sale and loans and receivables. The Company determines the classification of its financial assets upon initial recognition.

Financial assets are initially recognized at fair value, plus, in the case of investments not designated at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of financial assets.

Financial assets include cash and cash equivalents, restricted cash, accounts receivable, other receivables and derivative financial instruments.

Subsequent measurement

The subsequent measurement of financial assets depends on their classification, which can be as follows:

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading and assets designated upon initial recognition at fair value through profit and loss. They are classified as held for trading if they were acquired with the purpose of selling or repurchasing in the short term. Derivatives are also measured at fair value through profit or loss, except those designated as hedging instruments. Interest, monetary and exchange variations and changes arising from the valuation at fair value are recognized in the income statement when incurred in the line of revenue or expense.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate method (EIR), less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs. Amortization is included in finance income in the income statement. The losses arising from impairment are recognized in the income statement in finance costs.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.3.

Summary of significant accounting practices (Continued)

Financial instruments – Recognition initial and subsequent measurement (Continued)

(i) Financial assets (Continued)

Held-to-maturity

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. Interest, monetary, exchange rate, less impairment losses, if any, are recognized in income when incurred in the line of financial income/expense.

Available-for-sale financial assets

Financial assets available for sale are those non-derivative financial assets that are not classified as (a) loans and receivables, (b) investments held to maturity or (c) financial assets at fair value through profit and loss.

Derecognition

A financial asset is derecognized when:

The rights to receive cash flows from the asset have expired; and

The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the cash flows received 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.

Impairment of financial assets

The Company assesses at each reporting date whether there is any objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.3.

Summary of significant accounting practices (Continued)

Financial instruments – Recognition initial and subsequent measurement (Continued)

(ii) Financial liabilities

Initial recognition and measurement

Financial liabilities 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. The Company determines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognized initially at fair value and in the case of loans and borrowings, carried at amortized cost.

The Company’s financial liabilities include payables to suppliers and other payables, loans and borrowings and derivative financial instruments.

Subsequent measurement

The 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 at fair value through profit or loss and derivatives, except those designated as hedging instruments. Interest, monetary and exchange variations and changes arising from the valuation at fair value, where applicable, are recognized in the income statement when incurred.

Loans and borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate method. Gains and losses are recognized in the income statement when the liabilities are amortized or derecognized.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.3.

Summary of significant accounting practices (Continued)

Financial instruments – Recognition initial and subsequent measurement (Continued)

(iii) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

(iv) Fair value of financial instruments

The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices or dealer price quotations, without any deduction for transaction costs.

The fair value of financial instruments for which there is no active market is determined using valuation techniques. These techniques can include using recent market transactions (interest free) reference to the current fair value of other similar instruments, analysis of discounted cash flows or other valuation models.

An analysis of fair values of financial instruments and further details as to how they are measured are provided in Note 26.

(v) Derivative financial instruments and hedge accounting

Initial recognition and subsequent measurement

The Company uses derivative financial instruments such as forward currency contracts, interest rate swaps and forward commodity contracts to hedge its foreign currency risks, interest rate risks and commodity price risks, respectively. Derivatives designated in hedge transactions are initially recognized at fair value on the date on which the derivative is acquired, and subsequently also revalued to fair value. Derivatives are presented as financial assets when the instrument's fair value is positive and as liabilities when fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to the income statement, except for the effective portion of cash flow hedges, which is recognized in other comprehensive income.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.3.

Summary of significant accounting practices (Continued)

Financial instruments – Recognition initial and subsequent measurement (Continued)

(v) Derivative financial instruments and hedge accounting (Continued)

For the purpose of hedge accounting, hedges are classified as:

Fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment;

Cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognized firm commitment; and

Hedges of a net investment in a foreign operation.

At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which the Company wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated.

Hedges are expected to be highly effective in offsetting changes in fair value or cash flows, being continually assessed to determine whether they were actually highly effective over all the base periods for which they were intended.

Hedges which meet the strict criteria for hedge accounting are accounted for as follows:

Cash flow hedges

The effective portion of the gain or loss on the hedging instrument is recognized directly as other comprehensive income in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the income statement in other operating expenses.

Amounts recognized as other comprehensive income are transferred to the income statement when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognized or when a forecast sale occurs. Where the hedged item is the cost of a non-financial asset or non-financial liability, the amounts recognized as other comprehensive income are transferred to the initial carrying amount of the nonfinancial asset or liability.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.3.

Summary of significant accounting practices (Continued)

Financial instruments – Recognition initial and subsequent measurement (Continued)

(v) Derivative financial instruments and hedge accounting (Continued)

Cash flow hedges (Continued)

If the forecast transaction or firm commitment is no longer expected to occur, the cumulative gain or loss previously recognized in equity is transferred to the income statement. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, any cumulative gain or loss previously recognized in other comprehensive income remains in other comprehensive income until the forecast transaction or firm commitment affects profit or loss.

The Company uses forward currency contracts as hedges of its exposure to foreign currency risk in forecasted transactions and firm commitments, as well as forward commodity contracts for its exposure to volatility in the commodity prices. Refer to Note 26 for more details.

Fair value hedge and hedges of a net investment

The Company does not hold derivative financial instruments designated in these types of operations.

Cash and cash equivalents and restricted cash

Cash and cash equivalents include cash, bank deposits and other short-term investments of immediate liquidity, redeemable within 90 days from the date of issue, readily convertible into a known amount as cash and cash with insignificant risk of change in their value.

The restricted cash relates mainly to deposits of margin requirements made with brokers who trade commodity derivative instruments linked to Company’s derivatives instruments and financial transactions.

Accounts receivable

Accounts receivable are receivables from customers and are reduced to their probable realizable value by a provision.

Inventories

Inventories are recorded at average cost of acquisition or production, not to exceed the net realizable value. Provisions for slow-moving or obsolete inventories are recorded when deemed necessary by management.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.3.

Summary of significant accounting practices (Continued)

Equity method investments

Entities over which the Company exercises significant influence are accounted for by the equity method. Based on the equity method, investments are recorded on the balance sheet at cost, plus the changes following the acquisition of shares and the Company’s share of equity income or loss of the associate.

The income statement reflects the share of operating results of associates associate based on the equity method. When a change is recognized directly in equity of the associate, the Company recognizes its share of the variations, where applicable, statement of changes in equity.

The financial statements of associates are prepared for the same period of presentation of the Company even if the fiscal year is not coincidental. Where necessary, adjustments are made to conform to the accounting practices of the Company.

After applying the equity method, the Company determines whether it is necessary to recognize additional loss of recoverable value on the Company's investment in its associate. The Company determines, at each year end, if there is objective evidence that investment in associate loss suffered by the impairment. If so, the Company calculates the amount of loss on the impairment as the difference between the recoverable value of the associate and the book value and the amount recognized in the income statement.

When there is loss of significant influence over the associate, the Company evaluates and recognizes the investment at fair value at that moment.

The unrealized gains and losses resulting from transactions between the Company and associates are eliminated in accordance with the participation held in the associate.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.3.

Summary of significant accounting practices (Continued)

Interest in joint ventures

The Company has an interest in joint ventures, which are jointly controlled entities, whereby the venturers have a contractual arrangement that establishes joint control over the voting and economic activities of the entity. The agreement requires unanimous agreement for financial and operating decisions among the venturers. The Company recognizes its interest in the joint ventures using the proportionate consolidation method. The Company combines its proportionate share of each of the assets, liabilities, income and expenses of the joint ventures with similar items, line by line, in its consolidated financial statements. The financial statements of the joint ventures are prepared for the same reporting period as the Company.

Adjustments are made in the Company´s consolidated financial statements to eliminate the Company´s share of intercompany balances, transactions and unrealized gains and losses on such transactions between the Company and its joint ventures. Losses on transactions are recognized immediately if the loss provides evidence of a reduction in the net realisable value of current assets or an impairment loss. The joint venture is proportionately consolidated until the date on which the Company ceases to have joint control over the joint venture.

As discussed in Note 2.4, effective in the Company’s fiscal year ending March 31, 2014, the IFRS accounting for these proportionately consolidated entities will change and the Company will then be required to account for them retrospectively using the equity method of accounting.

Biological assets

Biological assets refer to the sugarcane plantations and are recognized at fair value at each balance sheet date and the effects of changes in fair values between the periods are allocated to cost of goods sold. The sugarcane plantation is measured at fair value in accordance with the discounted cash flow method. The harvest of the Company begins generally in April each year and ends in the months of November and December.

The Company’s own land on which the biological asset is produced is accounted for in accordance with IAS 16 - Property, Plant and Equipment.

Property, plant and equipment (“P, P&E”)

Items of P, P&E are measured at historical cost of acquisition or construction, less accumulated depreciation and impairment when applicable.

Cost includes expenditures that are directly attributable to the acquisition of an asset. The cost of assets constructed by the entity includes the cost of materials and direct labor, other costs to put the asset in location and condition necessary for them to be able to operate in the manner intended by management, and borrowing costs on qualifying assets. Borrowing costs relating to funds raised for work in progress are capitalized until these projects are completed.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.3.

Summary of significant accounting practices (Continued)

Property, plant and equipment (“P, P&E”) (Continued)

The Company carries out the planned major maintenance and inspection activities at its plants on an annual basis in order to inspect and replace components. This occurs between January and March. The principal costs include maintenance costs for labor, material third party services and overhead allocated during the inter harvest period.

The estimated cost of a component of a piece of equipment that must be replaced each year is recorded as a component of cost of the equipment and depreciated over the following season. Costs of normal periodic maintenance are recorded as expenses when incurred since the components will not improve the production capacity or introduce improvements to equipment.

Depreciation is calculated on a straight line method based on useful life of each asset, following the annual depreciation rates shown below:

Buildings and improvements	4%
Machinery and equipment	3% to 10%
Agricultural machinery	10%
Industrial equipment and facilities	10%
Furniture and fixtures	10%
Computer equipment	20%
Vehicles	10% to 20%
Locomotives	3.3%
Rail cars	2.9%
Boats	20%
Aircrafts	10%

Leases

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date.

Finance leases which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in finance costs in the income statement. A leased asset is depreciated over the useful life of the asset.

Operating lease payments are recognized as an operating expense in the income statement on a straight-line basis over the lease term.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.3.

Summary of significant accounting practices (Continued)

Intangibles

(i) Goodwill

Goodwill is maintained at its cost, less any impairment losses. Goodwill is tested annually for impairment. In order to perform impairment tests goodwill is compared to the recoverable amount of the related cash generating unit to which it was originally allocated.

(ii) Intangible assets with finite lives

Intangible assets with finite lives are amortized over their useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired.

Impairment

The Company assesses annually whether there are indications of impairment in its long lived assets. If these indicators are identified, the Company estimates the recoverable amount of the assets. The recoverable amount of an asset or a group of assets is the greater of: (a) the fair value less estimated costs to sell it, and (b) its value in use. Value in use is the discounted cash flow (before taxes) from the continued use of the assets until the end of its useful life.

Regardless of the existence of indicators of loss of value, goodwill and intangible assets with indefinite useful lives are tested for impairment at least once a year.

When the book value of an asset exceeds its recoverable amount, the impairment loss is recognized as an operating expense in the income statement.

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur.

Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.3.

Summary of significant accounting practices (Continued)

Pension and other employment benefits

i) Defined benefit pension plan

The Company, through its indirect subsidiary Cosan Lubrificantes Especialidades S.A. (“CLE”) is the sponsor of a defined benefit pension plan for part of its employees. The cost of providing benefits under the defined benefit plan is determined annually by independent actuaries using the projected unit credit method.

Actuarial gains and losses for the defined benefit plan are recognized in full in the period in which they occur in other comprehensive income. Such actuarial gains and losses are also immediately recognized in equity and are not reclassified to profit or loss in subsequent periods.

ii) Defined contribution pension plan

The Company, its subsidiaries and jointly-controlled entities sponsor a defined contribution plan, for all employees. The Company does not have a legal or constructive obligation to pay further contributions if the fund does not have sufficient assets to pay all benefits owed.

iii) Share-based payments

Employees (including senior executives) of Cosan S.A. receive regular compensation in the form of equity investments for services rendered (equity-settled transactions).

The cost of equity-settled transactions is recognized, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled. Cosan S.A. uses the binomial model to estimate the fair value of the options at the date of the grant.

Treasury shares

The Company´s equity instruments which are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain or loss is recognized in the income statement on the purchase, sale, issue or cancellation of the Company’s own equity instruments.

Represented by the shares acquired on the market and held in treasury in accordance with the Repurchase Plan previously approved.

Equity instruments which are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain or loss is recognized in the income statement in the purchase, sale, issue or cancel of equity instruments of the Company. Any difference between book value and the consideration is recognized in capital reserve.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.3.

Summary of significant accounting practices (Continued)

Taxes

(i) Income taxes

Income taxes are comprised of income tax and social contribution at a combined rate of 34%. Deferred income tax assets are recognized for all deductible temporary differences and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and unused tax losses can be utilized.

Deferred income tax assets and liabilities are presented as non-current assets or liabilities and measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates that have been enacted at the reporting date

(ii) Indirect taxes

Net revenues is recognized net of discounts and sales taxes (IPI, ICMS, PIS and COFINS).

Business combinations

Business combinations are accounted for using the acquisition method and the assets and liabilities assumed are measured at fair value for purposes of goodwill calculation. Goodwill represents the excess of the acquisition cost in comparison the fair value of the acquired assets and liabilities. If there is an excess of the acquirer's interest in the fair value of assets and liabilities acquired over the cost, the difference is recognized immediately in the income statement.

Asset retirement obligations

The retirement obligations of its jointly-controlled entities relate to the required obligation to remove underground fuel tanks upon retirement, the initial measurement of which is recognized as a liability discounted to present values and subsequently accreted through earnings. An asset retirement cost equal to the initial estimated liability is capitalized as part of the related asset’s carrying value and depreciated over the asset’s useful life.

Environmental matters

The Company, its subsidiaries and its jointly-controlled entities production facilities and their plantation activities are both subject to environmental regulations. The Company diminishes the risks associated with environmental matters, through operating procedures and controls and investments in pollution control equipment and systems.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.4

New IFRS and IFRIC Interpretations Committee (Financial Reporting Interpretations of IASB) applicable to the consolidated financial statements

New accounting pronouncements of the IASB and IFRIC interpretations have been published and or reviewed as presented below:

IFRS 9 Financial Instruments: Classification and Measurement

Classification and measurement - It reflects the first phase of the IASBs work on the replacement of IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 uses a simplified approach to determine whether a financial asset is measured at amortized cost or fair value, based on the manner in which an entity manages its financial instruments (business model) and the typical contractual cash flow of financial assets. The standard also requires the adoption of only one method for determining losses in recoverable value of assets. The standard is effective for annual periods beginning on or after January 1, 2013. Management is still evaluating the impact on its financial position or performance in relation to IFRS 9.

IFRS 10 Consolidated Financial Statements

IFRS 10 as issued establishes principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities. IFRS 10 replaces the consolidation requirements in SIC-12 Consolidation—Special Purpose Entities and IAS 27 Consolidated and Separate Financial Statements and is effective for annual periods beginning on or after January 1, 2013. Early application is permitted. Management is still evaluating the impact on its financial position or performance from the adoption of IFRS 10.

IFRS 11 Joint Arrangements

IFRS 11 will significantly change the accounting for the Company’s joint arrangements. The new standard eliminates inconsistencies in the reporting of joint arrangements in current practice, by requiring a single method (the equity method of accounting) to account for interests in jointly controlled entities. It eliminates the option to proportionate consolidate these jointly controlled entities. It is effective for annual periods beginning on or after January 1, 2013. Early adoption is permitted.

With the adoption of IFRS 11, currently expected for the year ended March 31, 2014, the Company's joint ventures (Raízen Energia and Raízen Combustíveis) currently presented via proportionate consolidation, will be presented using the equity method of accounting in accordance with IAS 28R – Investment in Associates and Joint Ventures. These two joint ventures currently comprise a substantial component of the Company's assets and operations. Thus, while the Company is currently estimating the impacts of the adoption of IFRS 11, it is anticipated that it will be significant.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

2.	Summary of significant accounting policies (Continued)

2.4

New IFRS and IFRIC Interpretations Committee (Financial Reporting Interpretations of IASB) applicable to the consolidated financial statements (Continued)

IFRS 11 Joint Arrangements (Continued)

The total assets of these joint ventures represented approximately 71% of consolidated totals at March 31, 2012. The revenues, operating income and cash flow from operating activities of these joint ventures accounted for approximately 80%, 67% and 93% of consolidated totals for the year ended March 31, 2012, respectively. A change from proportionate consolidation to equity method accounting would have no impact on the total equity or net income derived from these joint ventures, except that when using a proportional consolidation model net income would be lower in the year of joint venture formation as the transaction costs would be expensed as incurred. When applying the equity method of accounting those expenses would be considered a component of the equity method investment.

IFRS 12 Disclosure of Involvement with Other Entities

IFRS 12 is a new and comprehensive standard on disclosure requirements for all forms of interests in other entities, including subsidiaries, joint arrangements, associates and unconsolidated structured entities. IFRS 12 is effective for annual periods beginning on or after January 1, 2013. Earlier application is permitted. Management is still evaluating the impact on its financial position or performance from the adoption of IFRS 11.

IFRS 13 Fair Value Measurement

IFRS 13 establishes new requirements on how to measure fair value and the related disclosures for IFRS and US generally accepted accounting principles. The standard is effective for annual periods beginning on or after January 1, 2013. Earlier application is permitted. Management is still evaluating the impact on its financial position or performance from the adoption of IFRS 13.

IAS 28 Investments in Associates and Joint Ventures (revised in 2011)

As a consequence of the new IFRS 11 and IFRS 12, IAS 28 has been renamed IAS 28 Investments in Associates and Joint Ventures, and describes the application of the equity method to investments in joint ventures in addition to associates. The amendment becomes effective for annual periods beginning on or after January 1, 2013.

There are no other pronouncements issued and yet to be adopted that may have a significant impact in the Company´s operations and financial position

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

3.	Cash and Cash Equivalent

	2012		2011
Brazilian reais
Cash		654		289
Bank accounts		127,178		64,437
Highly liquid Investments		1,519,965		1,076,599
US dollars
Bank accounts		6,349		78,353
Highly liquid Investments		-		52,102
		1,654,146		1,271,780

On March 31, 2012, the Company had unused lines of credit with BNDES, in the amount of R$ 420,414 (R$1,064,930 in March 31,2011). The use of these lines of credit depends upon fulfillment of certain contractual conditions.

4.	Restricted Cash

	2012		2011
Restricted financial investments		48,292		61,072
Deposits in connection with derivative transactions		45,976		126,872
		94,268		187,944

Deposits in connection with derivative transactions relate to margin calls by counterparties in derivative transactions.

5.	Other financial assets

	2012		2011
Fair value of Radar option (1)		140,820		162,961
Brazilian Treasury certificates – CTN (2)		149,438		257,456
ExxonMobil financial asset - reimbursement (3)		540,224		-
		830,482		420,417
Current		40,080		-
Non current		790,402		420,417

(1)

Cosan S.A. holds warrants on Radar, exercisable at any time up to maturity (August 2018). Such warrants will allow Cosan S.A. to purchase additional shares at R$41.67 per share adjusted for inflation (IPCA), equivalent to 20% of the total shares issued by Radar as of the date of exercise. The exercise of warrants will not change the classification of this investment as an equity investment. The fair value of these warrants was calculated based on observable market data.

(2)

Represented by bonds issued by the Brazilian National Treasury under the Special Program for Agricultural Securitization - "PESA" with original maturity of 20 years in connection with the long-term debt denominated PESA (note 15). These bonds yield inflation (IGPM) plus 12% p.a.. The value of these securities at maturity is expected to be equal to the amount due to the PESA at that date. If the PESA debt is paid in advance, the Company may still keep this investment until maturity

(3)

On June 28, 2011, the subsidiary Cosan Lubrificantes e Especialides S.A., successor entity of Esso Brasileira de Petróleio Ltda. (“Essobrás”), joined the Brazilian Government’s tax recovery program upon request of ExxonMobil Brasil Holdings B.V. (“ExxonMobil”). ExxonMobil is the entity that is legally responsible for the tax contingencies existing on the acquisition date of Essobras by the Company. The liability amounts to R$540,224 and is being refunded to the Company by ExxonMobil upon payment. As a result, the Company recorded a tax payable obligation and a corresponding accounts receivable from ExxonMobil, of which R$40,080 is short term and the remaining balance is long term.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

6.	Accounts Receivable

The balances of accounts receivables as of March 31, 2012 and 2011 are composed as follows:

	2012			2011
Domestic		902,407			678,498
Foreign		164,681			7,556
Allowance for doubtful accounts		(103,501	)		(91,197	)
		963,587			594,857

The analysis of the maturity of the accounts receivable is as follows:

	2012		2011
Current		764,827		555,826
Over Due:
Up to 30 days		100,339		21,097
From 31 to 60 days		16,535		4,317
From 61 to 90 days		8,476		553
More than 180 days		73,410		13,064
		963,587		594,857

Changes in the allowance for doubtful accounts are as follows:

On April 1, 2009	(102,985	)
Provision	(14,011	)
Reversal	15,389
Write-offs	11,748
Addition from business combination	(7,862	)
March 31, 2010	(97,721	)
Provision	(16,573	)
Reversal	18,238
Write-offs	6,130
Addition from business combination	(1,271	)
March 31, 2011	(91,197	)
Provision	(28,003	)
Reversal	26,711
Write-offs	935
Net addition from de-consolidation of subsidiaries and formation of the JVs (a)	(11,135	)
Addition from business combination	(812	)
March 31, 2012	(103,501	)

(a)

The Company has reflected this roll-forward activity as a “net” adjustment. This net adjustment would actually represent the de-consolidation of 100% of the allowance for doubtful accounts of subsidiaries de-recognized, and the addition of 50% of the fair value of the allowance for doubtful accounts of the JV’s then proportionally consolidated.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

7.	Inventories

	2012			2011
Finished Goods:
Sugar		87,110			77,673
Ethanol		79,433			42,840
Fuel		276,867			231,891
Lubrificants		112,492			94,743
Raw material		52,586			51,598
Spare parts and others		144,204			191,153
Provision for inventory realization and obsolescence		(4,542	)		(19,567	)
		748,150			670,331

Change in the provision for inventory realization and obsolescence is as follows:

On April 1, 2009	(23,102	)
Addition	(14,528	)
Reversal	12,370
March 31, 2010	(25,260	)
Provision	(13,483	)
Reversal	19,176
March 31, 2011	(19,567	)
Provision	(1,697	)
Write off	5,173
Reversal	4,815
Net effect from de-consolidation of subsidiaries and formation of the JVs (a)	6,734
March 31, 2012	(4,542	)

(a)

The Company has reflected this roll-forward activity as a “net” adjustment. This net adjustment would actually represent the de-consolidation of 100% of the inventory provision of subsidiaries de-recognized, and the addition of 50% of the fair value of the inventory provision of the JV’s then proportionally consolidated.

8.	Recoverable Taxes

	2012		2011
Income tax		107,561		66,274
COFINS		63,727		121,474
PIS		18,614		27,338
ICMS - State VAT		194,818		151,161
IPI		43,039		47,741
Others		9,193		16,069
		436,952		430,057
Current		325,096		374,991
Non-Current		111,856		55,066

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

9.	Related Parties

Summarized balances and transactions with related parties:

	2012		2011
Current Asset
Shell (i)		626,783		-
Raízen Energia (ii)		20,731		-
Raízen Combustíveis (ii)		14,242		-
Grupo Rezende Barbosa (iii)		9,469		7,298
Vertical (iv)		540		6,430
Other		6,609		941
Total Current asset		678,374		14,669

Non Current Asset
Shell (i)		335,317		-
Raízen Energia (ii)		214,885		-
Raízen Combustíveis (ii)		87,811		-
Grupo Rezende Barbosa (iii)		105,751		91,954
Other		9,389		-
Total Non-current asset		753,153		91,954

Total asset		1,431,527		106,623
Current liabilities
Shell (i)		83,064		-
Raízen Energia (ii)		76,257		-
Raízen Combustíveis (ii)		321		-
Grupo Rezende Barbosa (iii)		12,577		37,664
Other		3,269		3,499
Total current liabilities		175,488		41,163

Non-current Liabilities
Shell (i)		379,626		-
Raízen Energia (ii)		6,387		-
Other		3,705		4,444
Total Non-current liabilities		389,718		4,444

Total liabilities		565,206		45,607

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

9.	Related Parties (Continued)

Summarized balances and transactions with related parties:

	Year ended at March 31,
	2012		2011		2010
Sales of products/services
Vertical (iv)		75,338		160,202		154,042
Aguassanta		-		39,131		101,902
Other		441		832		-
		75,779		200,165		255,944
Purchase of goods/services
Grupo Rezende Barbosa (iii)		263,859		352,195		155,615
Vertical (iv)		113,518		-		-
Other		7,032
		384,409		352,195		155,615
Land lease
Aguassanta (v)		17,577		26,459		(18,817	)
Radar (vi)		22,532		28,446		(18,158	)
		40,109		54,905		(36,975	)
Financial income / (expense)
Grupo Rezende Barbosa (iii)		2,502		233		18,045
Shell		148,733		-		-
Other		242		512		(84	)
		151,477		745		17,961

(i)

Shell

Shell Holdings B.V. and its subsidiaries ("Shell") are related parties of Raizen Energia and Raízen Combustíveis, therefore, the transactions between Shell and these entities were treated by the Company as related party transactions and all balances disclosed are 50% proportionally consolidated.

The short-term receivable is mainly comprised of (i) capital contribution receivable from Raízen Energia in the amount of R$ 489,856, (ii) and other receivables in the amount of R$ 136,927, represented by other reimbursements resulting from the formation of JVs.

The long-term receivables are represented mainly by (i) reimbursement of provisions existing at the legal entity contributed by Shell related to the contingencies in the amount of R$ 244,046, and (ii) a financial asset equivalent to the investment that Shell has in Iogen, valued at fair value, and that will be contributed to Raizen Energia in the amount of R$ 86,535.

The short term payable comprises mainly reimbursement tax credits of the legal entity contributed by Shell in the amount of R$ 77,631.

The long term payable refers to (i) reimbursement of judicial deposits in the legal entity contributed by Shell, which will be refunded when redeemed, in the amount of R$ 130,883, and (ii) reimbursement of tax credits of the legal entity contributed by Shell in the amount of R$ 248,743.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

9.	Related Parties (Continued)

Summarized balances and transactions with related parties: (Continued)

(ii) Raízen Energia and Raízen Combustível

The balances with Raízen Energia and Raízen Combustível are consolidated proportionally at 50% considering the elimination of the portion related to the Company.

The balances in current assets in the amount of R$ 20,731 and R$ 14,242 in Raízen Energia and Raízen Combustíveis, respectively, represent receivables of (i) transportation and sugar elevation services provided by Rumo, (ii) sale of land by CLE and (iii) leased land.

Non-current assets receivable from Raízen Energia and Raízen Combustíveis represent, basically, tax credits which will be reimbursed to the Company when effectively realized by the JVs.

The balance of R$ 76,257 recorded as current liabilities in Raízen Energia represents, mainly, payables related sugar purchased by the Cosan Alimentos segment and other reimbursable obligations due to the formation of JVs.

(iii) Rezende Barbosa

The Company has receivables from Rezende Barbosa which are guaranteed by shares issued by Cosan.

The jointly-controlled entity "Raízen Energia" has long-term agreement with Group Rezende Barbosa to supply sugar-cane. The prices paid are based on the ATR prices published by CONSECANA.

(iv) Vertical UK LLP

The Company sells and buys ethanol from Vertical UK LLP (“Vertical”) in the normal course of business. Vertical is a trading company headquartered in Switzerland for which the Company has indirectly a 50% non-controlling interests.

(v) Aguassanta

The jointly-controlled entity Raízen Energia has land leased from entities controlled by Group Aguassanta (“Aguassanta”),a group of entities under common control, being Mr. Rubens Ometto de Silveira de Mello the ultimate controlling shareholder. The lease costs are paid considering the ATR price published by CONSECANA and contracts having terms expiring between 2026 and 2027.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

9.	Related Parties (Continued)

Summarized balances and transactions with related parties: (Continued)

(vi) Radar

The jointly-controlled entity Raízen Energia has leased land from Radar Propriedades Agrícolas S.A. (“Radar”), an associate. These rental costs are paid considering the price published by the ATR CONSECANA and most contracts have terms that expire in 2027.

Officers and directors compensation

Fixed and variable compensation of key people, including directors and board members are recorded, as follows:

	2012		2011		2010
Regular compensation		24,994		7,894		6,589
Stock option expense		10,800		2,961		8,971
Bonuses and other variable compensation		33,075		23,791		6,325
Total compensation recorded as expense		68,869		34,646		21,885

At Cosan S.A.´s shareholder’ meeting held on July 29, 2011, a new stock compensation plan was approved, which until March 31, 2012 had granted 9,825,000 options (Note 28).

10.	Business combinations

Sugar Retail Business

The Company contributed its retail sugar business to Raizen Energia upon JV formation. On July 1, 2011, the Company re-acquired this business in exchange for R$145,860 in cash consideration, and R$22,568 in contingent consideration. The net assets of the retail sugar business approximate their carrying value prior to the formation of the JV.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

10.	Business combinations (Continued)

Logispot Armazéns Gerais S.A. (“Logispot”)

On March 14, 2011, Cosan, through its indirect subsidiary Rumo Logística S.A., purchased 874,226 common shares of Logispot, in exchange for a R$ 48,888 cash payment, which increased its participation in the common shares of Logispot from 14.28% to 51.00%.

The fair value at the acquisition date of the consideration transferred totaled R$ 68,880, which consisted of the following:

Cash			48,888
Fair value of 14.28% of Cosan in Logispot immediately before the Business combination			19,992
Total			68,880

The estimated fair value of assets acquired and liabilities assumed at the date of acquisition of Logispot were as follows:

Description
Trade accounts receivable	1,297
Others assets	677
Property, plant and equipment	114,184
Loans and financing	(13,391	)
Deferred income and social contribution taxes	(28,879	)
Others liabilities	(13,551	)
Non-controlling interest (1)	(30,120	)
Net assets acquired	30,217
Consideration transferred, net of cash acquired	67,745
Goodwill	37,528

(1)

Measured at their proportionate share of the value of net identifiable assets acquired

The purchase price allocation was completed by the Management, and based on the fair value of assets acquired and liabilities assumed and goodwill of the operation was allocated the segment Rumo.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

10.	Business combinations (Continued)

Logispot Armazéns Gerais S.A. (‘Logispot”) (Continued)

The Company obtained an independent evaluation of its property, plant and equipment, intangible assets and interests of noncontrolling shareholders. The allocation of the initial purchase price was adjusted primarily as a result of refinement in the Company's assumptions related to fixed assets and intangibles. As a result of these changes, the goodwill, as described above, was modified as follows:

Provisional goodwill	2,370
Adjustments on the fair value of the P,P&E	104,454
Deferred income taxes	(35,515	)
Interests of non-controlling shareholders	(33,781	)
Goodwill	37,528

Cosan Araraquara Açúcar e Álcool Ltda. (“Usina Zanin”)

On February 18, 2011, Cosan S.A. acquired 100% of the share capital of Usina Zanin, for R$90,000 cash. Usina Zanin is located in the city of Araraquara .

The estimated fair value of assets acquired and liabilities assumed at date of acquisition of Usina Zanin, was as follows:

Description
Inventories	3,813
Biological assets	83,890
Property, plant and equipment	223,893
Intangible assets	10
Loans and Long-term debt	(278,511	)
Provision for judicial demands	(23,008	)
Deferred income and social contribution taxes	29,921
Others liabilities	(49,081	)
Net assets acquired	(9,073	)
Consideration transferred, net of cash acquired	88,927
Goodwill	98,000

The purchase price allocation was completed by the Management, and based on the fair value of assets acquired and liabilities assumed. Zanin was later contributed to Raízen Energia in the formation of JV.

The Company obtained an independent evaluation of its property, plant and equipment, and intangible assets. The allocation of the initial purchase price was adjusted primarily as a result of refinement in the Company's assumptions related to fixed assets and intangibles. As a result of these changes, the goodwill, as described above, was modified as follows:

Provisional goodwill	69,402
Adjustments on the fair value of the P,P&E and biological assets	36,805
Other FV adjustments	6,524
Deferred income tax	(14,731	)
Goodwill	98,000

Usina Zanin was contributed to Raízen Energia in the formation of JV.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

10.	Business combinations (Continued)

TEAS Terminal Exportador de Álcool de Santos S.A. (“TEAS”)

On November 24, 2009, Cosan S.A. acquired, for R$ 20,260 cash, an additional 26.7% interest, represented by 10,527,295 common shares, of TEAS from Crystalsev Comércio e Representação Ltda and Plínio Nastari Consultoria e Participações Ltda.. As a result of this transaction, Cosan S.A. increased its direct share ownership in TEAS from 40.0% to 66.7% and obtained control of TEAS. TEAS has a port concession and operates a dedicated terminal for export of ethanol.

The acquisition date fair value of the consideration transferred totaled R$ 39,911, which consisted of the following:

Cash			20,260
Fair value of share of 40% of Cosan S.A. in TEAS immediately before the combination			19,651
Total			39,911

The following table summarizes the fair values of assets acquired and liabilities assumed at the acquisition date:

Description
Property, plant and equipment	21,162
Others assets and liabilities, net	405
Non-controlling interest	(6,258	)
Net assets acquired	15,309
Consideration transferred, net of cash acquired	22,610
Goodwill	7,301

The goodwill has been allocated in the Raizen Energia segment.

Curupay S.A. Participações (“Curupay”)

On June 18, 2009, Cosan S.A. acquired 100% of the outstanding shares of Curupay S.A. Participações from Rezende Barbosa S.A. Administração e Participações (“Rezende Barbosa”), through the issuance of 44,300,389 common shares valued at R$14.09 per share (fair value at the acquisition date) with a value of R$ 624,192. The assets acquired include the non-controlling interest in Novo Rumo representing 28.82% of its outstanding shares which were issued in the Teaçu Armazéns Gerais S.A. (Teaçu”) acquisition, and 100% of the outstanding shares of two operating companies, Nova América S.A. Trading and Cosan Alimentos (collectively referred to as “Nova América”).

With the acquisition of the noncontrolling interest of Novo Rumo, Cosan S.A. increased its share ownership in Novo Rumo to 92.88%. This transaction was a change in ownership interest without a loss of control and accounted for as a transaction in equity.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

10.	Business combinations (Continued)

Curupay S.A. Participações (“Curupay”) (Continued)

The following table summarizes the assets acquired and liabilities assumed in relation to Nova America:

Description
Inventories	119,212
Related parties	67,741
Property, plant and equipment	885,786
Intangible assets	243,955
Noncontrolling interest in Novo Rumo	132,539
Others assets	340,776
Loans and Long-term debt	(1,174,631	)
Taxes payables	(56,028	)
Deferred income and social contribution taxes	(47,354	)
Others liabilities	(303,651	)
Net assets acquired	208,345
Consideration transferred, net of cash acquired	572,710
Goodwill	364,365

The goodwill of R$ 364,365 arising from the acquisition was assigned to the Raizen Energia segment.

The purchase price to acquire Curupay was allocated based on the fair value of assets acquired and liabilities assumed. Cosan S.A. obtained an independent valuation of property, plant and equipment, intangible assets, loans and long-term debt and internally determined the fair value of other assets and liabilities of the acquired business.

Teaçu Armazéns Gerais S.A. (“Teaçú”)

On April 9, 2009, Cosan S.A., through its 90% owned subsidiary, Copsapar Participacoes SA, which owns 100% of the Novo Rumo, acquired 100% of the shares of Teaçu of Rezende Barbosa for R$ 121,131 and issue of 90,736,131 shares of Novo Rumo, equivalent to 28.82% of their capital. Teaçu holds a port concession and operates a dedicated terminal for export of sugar and other agricultural products.

As a result of this transaction, Cosan S.A. reduced its indirect participation in Novo Rumo to 64.06%.

The acquisition date fair value of the consideration transferred totaled R$ 382,908, which is formed by:

Cash			121,131
Common stock at fair value			261,777
Total consideration transferred			382,908

In the absence of a market price, the fair value of shares included in the consideration transferred was calculated using an income approach, using the present value of estimated future cash flows.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

10.	Business combinations (Continued)

Teaçu Armazéns Gerais S.A. (“Teaçú”) (Continued)

The table below shows the fair values of assets acquired and liabilities assumed at the date of acquisition.

Description
Property, plant and equipment	101,711
Intangible assets	316,977
Inventories	2,768
Others assets	61,740
Loans and Long-term debt	(43,355	)
Suppliers	(1,111	)
Provision for judicial demands	(7,532	)
Deferred income and social contribution taxes	(104,551	)
Others liabilities	(7,136	)
Net assets acquired	319,511
Consideration transferred, net of cash acquired	382,432
Goodwill	62,921

The goodwill was assigned to Rumo operating segment.

The purchase price for the acquisition of Teaçu was allocated based on the fair value of assets acquired and liabilities assumed. Cosan S.A. obtained an independent valuation of property, plant and equipment, intangible assets, loans and Long-term debt and internally determined the fair value of other assets and liabilities of the acquiree.

Pro forma information

If the entities acquired during 2012 had been included in the income statement since the beginning of the year the change to historical revenue and income would not be significantly different from the historical results presented.

11.	Equity method investments

				Investments				Equity income in affiliate
	Interest			2012		2011		2012			2011

Radar Propriedades Agrícolas S.A.		18.92	%		283,259		260,756		22,514			28,658
Codexis Inc		15.50	%		49,866		-		(1,086	)		-
Logum Logística S.A. ("Logum")		20.00	%		25,731		18,300		(4,796	)		-
Other investments					60,173		25,086		16,636			(3,471	)
					419,029		304,142		33,268			25,187

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

11.	Equity method investments (Continued)

Changes on Investments:

Balances at April 1, 2009	323,077
Equity income (loss)	4,178
Additions to investments	48,805
Change from associate to subsidiary	(119,051	)
Others	3,805
Balances at March 31, 2010	260,814
Equity income (loss)	25,187
Additions to investments	37,979
Change from associate to subsidiary	(20,015	)
Others	177
March 31, 2011	304,142
Equity income (loss)	33,268
Addition to investments	42,328
Net addition from de-consolidation of subsidiaries and formation of the JVs (a)	38,114
Others	1,177
March 31, 2012	419,029

(a)

The Company has reflected this roll-forward activity as a “net” adjustment. This net adjustment would actually represent the de-consolidation of 100% of the equity method investments of subsidiaries de-recognized, and the addition of 50% of the fair value of the equity method investments then proportionally consolidated.

Information on associates

At March 31, 2012
	Assets		Liabilities		Equity		Net income (loss)
Radar Propriedades Agrícolas S.A.		1,685,618		188,392		1,497,226		162,544
Codexis		247,663		60,552		187,111		(2,138	)
Logum		741,782		484,471		257,311		(28,670	)

At March 31, 2011
	Assets		Liabilities		Equity		Net income (loss)
Radar Propriedades Agrícolas S.A.		1,804,609		426,355		1,378,254		151,421
Logum		101,982		8,343		93,639		(4,829	)

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

12.	Biological assets

Changes in biological assets (sugarcane plants) are described below:

Balances at April 1, 2009	754,231
Change in fair value	44,871
Increase due to planting and growing costs	647,467
Harvested cane transferred to inventory	(483,325	)
Balances at March 31, 2010	963,244
Change in fair value	381,894
Increase due to planting and growing costs	745,572
Harvested cane transferred to inventory	(616,693	)
Increase resulting from business combination	87,115
Balances at March 31, 2011	1,561,132
Changes in fair value	60,093
Increase due to planting and growing costs	551,974
Harvested cane transferred to inventory	(401,592	)
Proportional consolidation impact due to the formation of JVs (50%) (a)	(803,584	)
Balances at March 31, 2012	968,023

(a)

The Company has reflected this roll-forward activity as a “net” adjustment. This net adjustment would actually represent the de-consolidation of 100% of the biological assets of subsidiaries de-recognized, and the addition of 50% of the fair value of the biological assets of the JV’s then proportionally consolidated.

(*)

R$19,047 of this amount was allocated in sugar and ethanol inventory as of March 31, 2012.

Sugarcane plants

Areas cultivated represent only sugarcane, without considering the land where these crops are found. The following assumptions were used to determine fair value using the discounted cash flow:

	2012		2011
Crop area (hectares)		382,798		340,386
Expect productivity (tons of cane per hectare)		78,20		84,74
Total amount of recoverable sugar – ATR (kg)		137,27		138,54
Price kg ATR projected average (R$/kg)		0,4881		0,4228

Sugar production depends on the volume and sucrose content of sugarcane grown or supplied by farmers located near the plants. The yield of the crop and the sucrose content in sugarcane mainly depend on weather conditions such as rainfall rate and temperature, which may vary and fluctuate.

Historically, weather conditions have caused volatility in ethanol and sugar production, and consequently in operating results because it cause damage to the annual harvest. Future climate conditions may reduce the amount of sugar and sugarcane that the Company will obtain in a particular season or in the sucrose content of sugarcane. Additionally, the Company’s business is subject to seasonality according to the growth cycle of sugarcane in the south-central region of Brazil. The period of annual harvest of sugarcane in South-Central region of Brazil begins in April / May and ends in November / December. This creates variations in stock, usually high in November to cover sales between crop (i.e. from December to April) and a degree of seasonality in gross profit from sales of ethanol and sugar significantly lower in the last quarter of fiscal year. The seasonality and any reduction in the volume of sugar recovered could have a material adverse effect on our operating results and financial condition.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

13.	Property, plant and equipment

Cost:	March 31, 2011			Additions			Write-offs			Transfers			De-consolidation and JVs formation, net (a)			Business combination			March 31, 2012
Land and Rural Properties		1,263,240			-			(40,011	)		15,965			384,561			(53,266	)		1,570,489
Buildings and Improvements		1,122,256			4,764			(24,559	)		89,661			(153,107	)		30,899			1,069,914
Machinery, Equipment and Facilities		4,980,432			49,056			(30,209	)		330,325			(69,256	)		14,196			5,274,544
Airplanes		30,903			4,839			(4,691	)		-			-			-			31,051
Rail Car and Locomotives		341,647			-			-			50,000			-			-			391,647
Vessels and Vehicles		323,042			3,046			(6,758	)		10,312			(26,703	)		167			303,106
Furniture and Fixtures and Computer Equipment		137,206			520			(21,012	)		16,114			(8,869	)		1,308			125,267
Construction in progress		1,367,712			980,855			(6,022	)		(782,762	)		(888,102	)		3,319			675,000
Major maintenance and inspections of machinery and equipment and parts		1,043,342			362,511			(747,891	)		-			(394,513	)		-			263,449
Others		4,782			13,077			(17,715	)		796			156,568			-			157,508
Total		10,614,562			1,418,668			(898,868	)		(269,589	)		(999,421	)		(3,377	)		9,861,975

Depreciation:
Buildings and Improvements		(287,620	)		(43,716	)		11,539			-			59,344			(2,457	)		(262,910	)
Machinery, Equipment and Facilities		(1,472,512	)		(288,990	)		19,506			14,968			346,824			(8,508	)		(1,388,712	)
Airplanes		(15,195	)		(1,839	)		860			-			-			-			(16,174	)
Rail Car and Locomotives		(6,128	)		(12,269	)		-			-			-			-			(18,397	)
Vessels and Vehicles		(150,146	)		(24,667	)		4,750			-			47,416			(114	)		(122,761	)
Furniture and Fixtures and Computer Equipment		(87,460	)		(11,297	)		18,750			-			(559	)		(735	)		(81,301	)
Major maintenance and inspections of machinery and equipment and parts		(611,859	)		(303,082	)		747,891			-			167,050			-			-
Others		(3,118	)		(6,942	)		9,297			-			(103,994	)		-			(104,757	)
Total		(2,634,038	)		(692,802	)		812,593			14,968			516,081			(11,814	)		(1,995,012	)
		7,980,524			725,865			(86,275	)		(254,621	)		(483,340	)		(15,192	)		7,866,963

(a)

The Company has reflected this roll-forward activity as a “net” adjustment. This net adjustment would actually represent the de-consolidation of 100% of the property, plant and equipment of subsidiaries de-recognized, and the addition of 50% of the property, plant and equipment of the JV’s then proportionally consolidated.

Capitalization of borrowing costs

During the year ended March 31, 2012, borrowing costs capitalized amounted to R$ 71,661 (R$ 70,543 during the year ended March 31, 2011 and R$ 43,302 in 2010). The weighted average interest rate, used for capitalization of interest on the balance of construction in progress, was 8.60% per year at 2012 (9.13% per year during the year ended March 31, 2011and 6.47% in 2011).

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

14.	Intangible assets

Cost	March 31, 2011			Additions			Write-offs			Transfers			De-consolidation and JVs formation, net (a)			Business combination			March 31, 2012
Software license		98,063			849			(20	)		14,954			(6,992	)		116			106,970
Trademarks		429,671			-			(11,286	)		-			190,026			-			608,411
Goodwill		2,697,221			-			(637,534	)		-			836,601			35,966			2,932,254
Customer Base		583,420			23,437			-			8,857			269,666			-			885,380
Leases		155,505			-			(232	)		-			(75,354	)		-			79,919
Distribution rights		170,291			129,340			-			9,381			142,359			-			451,371
Railroad access rights		-			-			-			236,397			-			-			236,397
Others		43,263			12,249			(8,649	)		-			75,209			-			122,072
Total		4,177,434			165,875			(657,721	)		269,589			1,431,515			36,082			5,422,774

Amortization
Software license		(66,111	)		(8,508	)		20			-			(10,357	)		(100	)		(85,056	)
Trademarks		(98,710	)		(44,579	)		-			-			32,858			-			(110,431	)
Customer base		(41,038	)		(46,904	)		-			-			21,796			-			(66,146	)
Leases		(15,118	)		(3,792	)		232			-			6,026			-			(12,652	)
Distribution rights		(62,387	)		(36,627	)		-			-			(34,641	)		-			(133,655	)
improvement in public concessions											(14,968	)		-			-			(14,968	)
Others		(4,495	)		(13,945	)		(222	)		-			(48,949	)		-			(67,611	)
Total		(287,859	)		(154,355	)		30			(14,968	)		(33,267	)		(99	)		(490,519	)
		3,889,575			11,520			(657,691	)		254,620			1,398,247			35,983			4,932,255

(a)

The Company has reflected this roll-forward activity as a “net” adjustment. This net adjustment would actually represent the de-consolidation of 100% of intangible assets of subsidiaries de-recognized, and the addition of 50% of the fair value of the intangible assets of the JV’s then proportionally consolidated.

Intangible asset (except goodwill)	Annual Amortization rate %	2012	2011

Software	20.00%	21,915	31,952
Trademarks Fuel Distributors (a)	20.00%	260,313	68,696
Trademark Mobil (b)	10.00%	154,082	176,911
Trademark União (c)	2.00%	83,585	85,354
Customer base (d)	3.45%	535,405	247,907
Operation license and customer base (e)	3.70%	283,829	294,475
Favorable operating leases (f)	5.56%	67,267	140,387
Distribution rights (g)	Straight line over contract term	317,717	107,904
Railroad access rights (h)	Over the life of the agreement	221,429	-
Others		54,459	38,768
Total		2,000,001	1,192,354

(a)

Refers to the right to use the trademark of fuel distribution through its joint venture Raízen Combustíveis.

(b)

Refers to the right to use the trademark of Mobil lubricants.

(c)

Refers to the right to use the trademark sugar União arising from business combination.

(d)

Refers to the relationship between Raízen Combustívies and the gas station that maintain its flags and customer base acquired through business combination.

(e)

Refers to the customer base of Teacu acquired in its business combination

(f)

Refers to favorable lease contracts arising from the acquisition of Curupay

(g)

Intangible assets arising from exclusivity rights for fuel distribution.

(h)

Refers to railroad access rights in connection with cash contributed for improvements made on railroads operated by ALL (America Latina Logistica) based on a transportation agreement with Rumo entered into on December 24, 2009, expiring December 31, 2028.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

14.	Intangible assets (Continued)

Impairment testing of goodwill

For the purpose of impairment testing, goodwill is allocated to the operating segments of the Company, at which goodwill is monitored for purposes of internal administration, not above the Company's operating segments. Goodwill acquired through business combinations and those arising from the formation of the Joint Venture were allocated to four cash-generating units, which are also operating segments that provide information, as shown below:


Carrying amount of goodwill	2012		2011

Cash-generating unit Raízen Energia		1,405,407		1,877,833
Cash-generating unit Raízen Combustíveis		855,907		184,415
Cash-generating unit Rumo		98,970		63,814
Cash-generating unit Cosan - Other Business		571,970		571,159
Total Goodwill		2,932,254		2,697,221

As defined in the accounting policy described in note 2.3, the Company tests annually the recoverable amount of goodwill. Nonfinancial long term assets, not subject to amortization, are reviewed whenever there are indications that the carrying value is not recoverable.

The Company uses the value in use method to determine the recoverable amount of the asset. The value in use method is based on the projection of the expected cash flows of cash-generating units. In connection with the application of the value in use method, the key assumptions are sales prices of all commodities, operating costs, capital investment and discount rates.

Management determines its cash flows based on its annual budgets taking into account for each cash generating unit: (i) Raízen Energia: the expected long-term sales price of commodities, productivity of agricultural areas, the performance of total recoverable sugar (“ATR”), and related costs; (ii) Raízen Combustíveis: the expected growth in operations based on gross domestic product and other macroeconomic aspects; (iii) Rumo: expectations of the Brazilian sugar production destined designated mainly for export; (iv) Cosan other businesses, mainly in the expected growth in operations based on gross domestic product and other macroeconomic aspects, as well as expected sales price of commodities. All these cash flows are discounted at rates that reflect specific risks relating to assets relevant to each cash generating unit.

Management has not identified any impairments for its cash generating units. The determination of the recoverable amount depends on certain key assumptions as described above which are influenced by market conditions, technological and economic forces present at the time that the impairment test is undertaken and thus management cannot determine if impairment losses will occur in the future.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

15.	Loans and Long Term Debt

Description (1)	Index	Average annual interest rate (2)	2012	2011	Maturity date
Senior Notes Due 2014	Dollar (USD)	9.5%	322,654	576,814	Jul-14
Senior Notes Due 2017	Dollar (USD)	7.0%	368,601	658,954	Feb-17
BNDES	URTJLP	2.54%	683,586	1,308,034	Oct-25
	Pre fixed	4.5%	185,568	242,508	Jul-20
	UMBND	6.59%	18,365	38,947	Jul-19
	Dollar (USD)	6.94%	11	-	Nov-12
Bank Credit Notes	CDCA	0.55%+CDI	-	31,378	Dec-11
ACC	Dollar (USD)	1.73%	138,369	228,229	Aug-12
Perpetual Notes	Dollar (USD)	8.25%	930,094	1,236,209
Resolution 2471 (PESA)	IGP-M	3.95%	316,108	674,392	Apr-23
	Pre fixed	3.0%	53	114	Oct-25
Rural Credits	Pre fixed	6.75%	20,460	92,352	Oct-12
Working capital	Dollar (USD) + Libor	2.42%	410,002	-	Sep-16
	IGP-M	11%	88	-	Dec-12
	Pre fixed	13.78%	5,332	-	Mar-15
Pre Payments	Dollar (USD) + Libor	4.27%	507,454	736,472	Feb-16
Credit Notes	110% CDI	-	341,226	303,719	Feb-14
	Dollar (USD)	2.35%	52,891	314,105	Feb-13
	Pre-fixed	6.25%	-	10,142	Oct-12
Finame	Pre-fixed	4.83%	397,515	517,842	Jul-20
	URTJLP	2.21%	337,091	187,336	Mar-21
	UMBND	8.44%	16	-	Oct-12
Other	Diverses	Diverses	163,905	74,482	Diverse
			5,199,389	7,232,029
Current			540,237	957,134
Non-Current			4,659,152	6,274,895

(1)

All loans and long-term debt are guaranteed by promissory notes and endorsements of the Company and its jointly-controlled subsidiaries and controlling shareholders, besides other guarantees, such as: i) Credit rights originated from energy contracts (BNDES); ii) CTN and land mortgages; and iii) underlying assets being financed (Finame).

(2)	Financial charges on March 31, 2012;

Long-term debt has the following scheduled maturities:

	2012		2011
13 to 24 months		747,146		745,454
25 to 36 months		1,085,917		762,649
37 to 48 months		1,295,155		1,010,797
49 to 60 months		591,534		777,963
61 to 72 months		179,137		878,092
73 to 84 months		300,921		222,289
85 to 96 months		220,893		453,711
Thereafter		238,449		1,423,940
		4,659,152		6,274,895

PESA - Resolution 2471- Special Agricultural Financing Program (Programa Especial de Saneamento de Ativos), or PESA

From 1998 to 2000, the Company and current the jointly-controlled Raízen Energia renegotiated their debts related to financing for agricultural costs with several financial institutions, reducing it to annual interest rates below 10%, ensuring the repayment of debt’s principal with assignment and transfer of Treasury Certificates, redeemable at the debt clearing, using the incentives promoted by Central Bank resolution No. 2471 of February 26, 1998. That debt is self-cleared by CTN, as mentioned in explanatory note 5.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

15.	Loans and Long Term Debt (Continued)

Senior Notes Due 2014

On August 4, 2009, the indirect subsidiary CCL Finance Limited issued Senior Notes in the international market in accordance with “Regulation S” and “Rule 144A” in the amount of US$350 million, which are subject to interest of 9.5% per year, payable semiannually in February and August each year, beginning in February 2010.

Senior Notes Due 2017

On January 26, 2007, the wholly-owned indirect controlled Cosan Finance Limited issued Senior Notes in the international market in accordance with the “Regulation S” and “Rule 144A” in the amount of US$ 400 million, which are subject to interest at 7% per annum, payable semiannually in February and August of each year.

BNDES

Refers to the financing of cogeneration projects, greenfields (sugar and ethanol mills) and expansion of the logistics segment.

Perpetual Notes

On January 24 and February 10, 2006, Cosan S.A. issued perpetual notes which are listed on the Luxembourg Stock Exchange - EURO MTF. These notes bear interest at a rate of 8.25% per year, payable quarterly on May 15, August 15, November 15 and February 15 of each year, beginning May 15, 2006. Those notes were repaid in May 2011 in connection with the internal restructuring to form the JVs.

On November 5, 2010 and July 13, 2011 the subsidiary Cosan Overseas Limited issued $500,000 of perpetual notes in the foreign market, in accordance with “Regulation S”. These notes bear interest at a rate of 8.25% per year, payable quarterly

Advances on Foreign Exchange Contracts (“ACC”), Pre payments and Credit Notes

ACC contracts, pre payments and credit notes have been signed with several financial institutions and will be cleared through exports made from 2011 to 2014. These transactions are subject to interest rates ranging from 1.0% to 6.25% per annum payable semiannually and on maturity.

Bank Debt – working capital

On May 16, 2011, a bank debt of US$ 450 million was issued in favor of the jointly-controlled subsidiary Raízen Energia in order to replace (and repay) the perpetual notes issued in 2006. This bank debt matures in two years, its interest is payable quarterly and is subject to Libor + interest of 2.15% per annum.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

15.	Loans and Long Term Debt (Continued)

Finame

Finame borrowings are financing related to financing of machinery and equipment. These loans are subject to interest payable monthly and are secured by underlying financed assets.

Covenants

The Company, its subsidiaries and jointly-controlled entities are subject to certain restrictive financial covenants set forth in existing loans and financing agreements. At March 31, 2012, Cosan, its subsidiaries and jointly-controlled entities were in compliance with its debt covenants.

16.	Tax Payable

Cosan Limited is incorporated in Bermuda which has no income taxes. The following relates to Brazilian taxes of Cosan S.A., its subsidiaries and jointly-controlled entities.

	2012		2011
ICMS – State VAT		66,601		72,265
IPI		4,631		30,661
INSS		13,029		25,309
PIS		5,003		7,229
COFINS		21,294		33,721
Recovery program - Refis IV		1,287,941		670,645
Income Tax		11,973		20,928
Others		33,871		23,597
		1,444,343		884,355
Current		241,719		245,284
Non – current		1,202,624		639,071

Tax recovery program – Law 11.941/09 e Provisional Measure 470/09 (“Refis IV”)

On May 27, 2009 and October 13, 2009, Law 11.941 and MP 470 were approved by the Brazilian government creating a tax recovery program, permitting the taxpayer to settle its federal tax debts, previous recovery programs, and other federal taxes under court discussions with discounts on previously charged penalties and interest and in installments. Such discounts generated a gain of R$270,333, recorded in the 2009 income statement.

Additionally, it was permitted for the taxpayer to offset a portion of the penalties and interest due with its balance of income tax loss carry forwards. MP470 also allowed taxpayers to use tax losses to offset the principal balance related to IPI taxes.

On June 28, 2011 the subsidiary Cosan Lubrificantes e Especialides S.A., successor entity of Esso Brasileira de Petróleio Ltda. (“Essobrás”), joined the tax recovery program upon request of ExxonMobil Brasil Holdings B.V. (“ExxonMobil”) (See Note 5).

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

16.	Tax Payable (Continued)

Maturities of long-term taxes payable are as follows:

	2012
13 to 24 months		99,083
25 to 36 months		97,707
37 to 48 months		97,254
49 to 60 months		96,909
61 to 72 months		96,270
73 to 84 months		95,229
85 to 96 months		95,229
Thereafter		524,943
		1,202,624

17.	Income taxes and social contribution

Cosan is incorporated in Bermuda which has no income taxes. The following relates to Brazilian income taxes of Cosan S.A., its subsidiaries and jointly controlled entities.

Reconciliation of income and social contribution tax expenses:

	2012			2011			2010
Pretax Income		3,302,545			1,182,164			1,505,797
Income tax and social contribution at nominal rate (34%)		(1,122,865	)		(401,936	)		(511,971	)
Adjustments to determine the effective rate:
Equity pick up		11,311			8,563			1,421
Non deductable donations		(3,817	)		(9,131	)		(4,167	)
Non-taxable income of the Company		406			(3,026	)		11,201
Tax effect due tax recovery program – REFIS IV		-			-			59,038
Others		4,752			(8,978	)		21,174
Income Tax and Social contribution Expense( current and deferred)		(1,110,213	)		(414,508	)		(423,304	)
Effective Rate		33.62	%		35.06	%		28.12	%

Deferred income tax on assets and liabilities

	2012												2011
	Basis			IRPJ 25%			CSLL 9%			Total			Total
Tax Losses:
Tax Losses		2,205,303			551,326			-			551,326			273,555
Negative basis of social contribution		2,198,476			-			197,863			197,863			99,609

Temporary Differences:
Monetary exchange		(109,962	)		(27,491	)		(9,897	)		(37,388	)		(274,189	)
Accelerated depreciation		(55,192	)		(13,798	)		-			(13,798	)		(4,596	)
Goodwill		(678,008	)		(169,502	)		(61,021	)		(230,523	)		(252,323	)
Business Combination		(1,585,714	)		(396,429	)		(142,714	)		(539,143	)		(626,913	)
Gain on the de-recognition of subsidiaries operations to form the JVs		(3,501,590	)		(875,397	)		(315,143	)		(1,190,540	)		-
FMV of PP&E and intangible assets on JVs		(2,618,000	)		(654,500	)		(235,620	)		(890,120	)		-
Deemed Cost		(366,151	)		(91,537	)		(32,954	)		(124,491	)		(124,490	)
Other effects		1,107,081			276,770			99,638			376,408			113,715

Total of deferred taxes					(1,400,558	)		(499,848	)		(1,900,406	)		(795,632	)
Deferred Income Tax – Asset											543,024			116,985
Deferred Income Tax – Liabilities											(2,443,430	)		(912,617	)

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

17.	Income taxes and social contribution (Continued)

Deferred income tax on assets and liabilities (Continued)

In assessing the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities and projected future taxable income in making this assessment. There is no expiration term for the net operating loss carry forwards. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that Cosan S.A. will realize the benefits of these deductible differences at March 31, 2012, as well as the net operating loss carry forwards. The amount of the deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. Income tax losses carry forward and social contribution tax losses may be offset against a maximum of 30% of annual taxable income earned, with no statutory limitation period.

18.	Provision for judicial demands

	2012		2011
Tax		620,835		418,744
Civil		168,952		82,599
Labor		261,890		164,939
		1,051,677		666,282

Judicial deposits on March 31, 2012 and 2011 are presented as follows:

	2012		2011
Tax		411,619		167,547
Civil		26,970		15,385
Labor		65,142		31,887
Other		5,504		3,553
		509,235		218,372

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

18.	Provision for judicial demands (Continued)

Changes in provision for judicial demands:

	Tax			Civil			Labor			Total
Balance at March 31, 2010		397,051			66,556			148,376			611,983
Provision		36,103			61,217			38,818			136,138
Settlements		(6,648	)		(11,278	)		(27,901	)		(45,827	)
Write off		(45,094	)		(59,767	)		(4,418	)		(109,279	)
Addition from acquisition		14,722			3,404			4,882			23,008
Monetary variation		22,610			22,467			5,182			50,259
Balance at March 31, 2011		418,744			82,599			164,939			666,282
Provisions of the period		102,919			67,685			73,379			243,983
Settlements		(1,856	)		(20,772	)		(2,857	)		(25,485	)
Write-off		(57,337	)		(42,591	)		(10,085	)		(110,013	)
Net addition from de-consolidation of subsidiaries and formation of the JVs (a)		128,206			65,165			18,910			212,281
Monetary variation		30,159			16,866			17,604			64,629
Balance at March 31, 2012		620,835			168,952			261,890			1,051,677

(a)

The Company has reflected this roll-forward activity as a “net” adjustment. This net adjustment would actually represent the de-consolidation of 100% of the provisions of de-recognized, and the addition of 50% of the fair value of provisions of the JV’s then proportionally consolidated.

Judicial demands deemed as probable loss

(a)

Tax

The major tax legal proceeding as of March 31, 2012 and 2011 are described as follows:

Description	2012		2011
IPC – 89 (i)		82,173		80,273
Compensation with Finsocial (ii)		195,421		183,706
CIDE (iii)		93,841		-
ICMS credits (iv)		97,552		56,880
PIS and COFINS		17,445		8,220
IPI		15,970		20,759
IRPJ and CSLL		2,110		2,093
Other		116,323		66,813
		620,835		418,744

(i)

Since 1993, the subsidiary Cosan Lubrificantes e Especialidades (“Cosan CLE”) filed a suit to challenge the balance sheet restatement index (IPC) established by the federal government in 1989, considering the such index did not reflect the actual inflation back then. The use of this index led the Company to supposedly overstate and overpay the income and social contribution taxes. Cosan CLE obtained a favorable preliminary court ruling that allowed it to recalculate the financial position, using indexes that accurately measured the inflation over the period. In doing so the company adjusted the amounts of income and social contribution taxes payable and identified that overpayments for both taxes were offset in subsequent years until 1997. Despite the favorable court rulings, tax authorities issued a notice of infringement to the Company challenging all tax offsets performed in 1993 and some offsets in 1994 and 1997, which led the Company to record a provision in relation to those court rulings. There are no judicial deposits in connection with this provision.

(ii)

During the period from October 2003 to November 2006 the subsidiary Cosan CL compensated FINSOCIAL with several other federal taxes, based on a final court decision in Set/2003 in the context of an action that was discussed the constitutionality of the FINSOCIAL. No judicial deposits related to these processes.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

18.	Provision for judicial demands (Continued)

Judicial demands deemed as probable loss (Continued)

(a)

Tax (Continued)

(iv)

Prior the formation of the JV, Raízen Combustíveis, former Shell Brasil Ltda, recorded CIDE on services provided by operations. This contingency will be reimbursed by Shell if any payment is required , an equivalent amount is recorded as a receivable. Judicial deposits in connection with this provision amount to R$170,835.

(v)

The provision for ICMS credits is comprised of: (a) tax assessment received, in which, despite the defense filed at the administrative and judicial levels, the legal counsel of the Company understand it is more likely than not that a loss will occur, (b) recovery of credits and financial charges on issues in which Company´s management has a differing view from the tax authorities. Judicial deposits in connection with this provision amount to R$8,392.

(b)

Civil and Labor claims

The Company, its subsidiaries and jointly-controlled entities are parties to a number of civil claims related to (i) indemnity for physical and moral damages; (ii) public civil claims related to sugarcane stubble burning; and (iii) environmental matters.

The Company, its subsidiaries and jointly-controlled entities are also parties to a number of labor claims filed by former employees and service providers challenging, among other factors, the payment of additional hours, night shift premium and risk premium, employment inclusion, reimbursement of discounts from payroll, such as social contribution, trade union charges, among others.

Judicial demands deemed as possible loss

(a)

Tax claims

The main tax claims for which the unfavorable outcome is deemed possible and, therefore, no provision for legal claims was recorded in the financial statement, are as follows:

	2012		2011
Withholding income taxes (i)		204,249		194,498
ICMS – State VAT (ii)		1,705,220		490,896
IPI – Federal VAT (iii)		378,735		270,817
Compensation with IPI – IN 67/98 (iv)		188,479		181,292
Contribution to IAA - Sugar & Ethanol Institute		2,637		-
INSS - social security and other (v)		83,875		72,616
PIS and COFINS (vi)		529,257		163,129
IR/CSLL (vii)		532,131		-
Others		490,834		197,884
		4,115,417		1,571,132

(i)

Tax assessment – withholding income tax

In September 2006 the Federal Revenue Service served another notice of infringement on the Company, this time for failure to withhold and pay income tax at source on capital gains derived from the acquisition of a subsidiary.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

18.	Provision for judicial demands (Continued)

Judicial demands deemed as possible loss (Continued)

(a)

Tax claims (Continued)

(ii)

ICMS

Refers mainly to (i) tax assessment filed in view of the alleged lack of payment of ICMS and non-compliance with accessory obligation, in connection with the partnership and manufacturing upon demand, with Central Paulista Açúcar e Álcool Ltda., between May to December 2006 and May to December 2007; and (ii) ICMS levied on the remittances of crystallized sugar for export purposes. In accordance with the tax agent, such product is classified as semi-finished product and that, in accordance with the ICMS regulation, would be subject to taxation, (iii) ICMS levied on possible differences in terms of sugar and alcohol inventories, arising from magnetic tax files and Inventory Registry Books and (iv) ICMS concerning rate difference due to ethanol sales to companies located in other states, which, subsequently, had their registrations revoked and (v) disallowance of credit resulting from the acquisition of diesel used in the production process.

(iii)

IPI – Federal VAT

SRF Normative Instruction n° 67/98 approved industrial establishments to transfer certain products without payment of IPI tax. Sugarcane was for the period between July 6, 1995 and November 16, 1997 and refined sugar between January 14, 1992 and November 16, 1997. Such rule was challenged by the Federal Revenue Secretariat against the Company.

(iv)

Offsets against IPI credits – IN 67/98

SRF Normative Instruction No. 67/98 made it possible to obtain refund of IPI tax payments for sales of refined sugar from January 14, 1992 through November 16, 1997. In view of this rule, the Company applied for offsetting amounts paid during the relevant periods against other tax liabilities. However, the Federal Revenue Service denied its application for both reimbursement and offsetting of such amounts. The Company challenged this ruling in an administrative proceeding.

Upon being notified to pay tax debts resulting from offset transactions in light of certain changes introduced by IN SRF No. 210/02, the Company filed a writ of mandamus and applied for a preliminary injunction seeking to stay enforceability of offset taxes, in an attempt to prevent the tax authorities from demanding the relevant tax debts in court. The preliminary injunction was granted by court.

(v)

INSS

Refers mainly to tax assessment received and defended by the legal counsel, concerning social security contribution on: (i) stock option plan and (ii) export sales and (iii) resale of materials for companies under common control and suppliers.

(vi)

PIS and COFINS

Refers, mainly, to the reversal of PIS and COFINS credits, provided by Laws 10.637/2002 and 10.833/2003, respectively. Those reversals arise from a differing interpretation of the laws by the Internal Revenue Service in regard to raw materials. Such discussions are still at the administrative level.

(vii)

IR/CSLL – Assessment Notice

In December 2011, the Company received notices of violation in the amount of R$ 400,318, drawn up by the Federal Revenue of Brazil charging of income tax and social calendar years 2006 to 2009, questioning: (i) deductibility of expenses for amortization of certain goodwill (ii) compensation for tax losses and negative social contribution calculation and (iii) tax on revaluation differences of the property included in fixed assets. The Company filed its defense in January 2012 and, together with its legal advisors, classified as remote loss amounted to R $ 207,078 as a possible loss and the amount of R$ 204,221. The remaining R$ 327,710 refers to various other claims in connection with income taxes and social contribution in several legal entities pertaining the subsidiaries and jointly controlled entities.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

18.	Provision for judicial demands (Continued)

Judicial demands deemed as possible loss (Continued)

(b)

Civil and labor

The main civil and labor claims for which the unfavorable outcome is deemed possible are as follow:

	2012		2011
Civil		869,954		377,608
Labor		1,200,573		302,289
		2,070,527		679,897

19.	Commitments

Sales

The jointly-controlled entity “Raízen Energia” is mainly engaged in the commodities market and sales are substantially performed at the price on the date of sale. However, Raizen Energia has several agreements in the sugar market, which undertake to sell volumes of those products in future harvests.

The commitments for the sale of sugar, in tons, as March 31, 2012 are as follows:

	2012	(*)
2012-2013 harvest	2,518,640
2013-2014 harvest	1,714,101
Total	4,232,741

(*) Represents 100% of the commitments of Raízen Energia, of which the Company proportionately consolidates only 50%.

Purchases

Raízen Energia has several commitments for the purchase of sugarcane from third parties in order to secure part of its production in subsequent years. The amount of sugarcane to be acquired has been calculated based on an estimate of the quantity to be ground by area. The amount to be paid by the jointly-controlled is determined at the end of each harvest, according to prices published by CONSECANA.

Purchase commitments by harvest, in thousands of tons on March 31, 2012 are as follows:

Fiscal Year	2012	(*)
2012-2013 harvest	25,130
2013-2014 harvest	24,747
2014-2015 harvest	22,096
2015-2016 harvest	19,624
After 2016	129,601
Total	221,198

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

19.	Commitments (Continued)

Purchases (Continued)

(*) Represents 100% of the commitments of Raízen Energia, of which the Company proportionately consolidates only 50%.

The jointly-controlled entity Raízen Energia has contracts to purchase industrial equipment intended for maintenance and expansion of the mills, as well as to meet the demand of the electric energy co-generation project, in the total amount of R$ 80,076 on March 31, 2012.

The Company through its subsidiary Rumo entered into a commitment to invest in rail track improvements aimed at the expansion of the logistics business, as follows:

Fiscal Year	2012
2012		489,794
2013		44,000
2014		2,000
Total		535,794

Lease Agreements

Operating Leases

Raizen Energia has operating lease contracts on land used for planting sugarcane, which will end within 20 years. The minimum payments related to these obligations are calculated on a straight-line basis over the term of the lease. The costs for these contracts during the year ended March 31, 2012, 2011 and 2010 consisted of the following:

	2012	(*)	2011	2010
Minimum installment	214,949		155,800	113,953
Variable installment	280,930		186,484	112,990
Total	495,879		342,284	226,943

(*) Represents 100% of the commitments of Raízen Energia, of which the Company proportionately consolidates only 50%

Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of March 31, 2012 are:

	Raízen Energia (*)		Rumo
Within 1 year		553,815		37,303
Over 1 year, less than 5 years		1,673,249		241,741
More than 5 years		1,676,005		-
Total		3,903,069		279,044

(*) Represents 100% of the commitments of Raízen Energia, of which the Company proportionately consolidates only 50%

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

20.

Equity

Common Stock

As of March 31, 2012 and March 31, 2011 Cosan Limited’s share capital consists of:

Shareholder	Class A shares and/or BDRs		%		Class B 1 shares		%
Queluz Holding Limited		7,941,111		4,55		66,321,766		68,85
Usina Costa Pinto S.A. Açúcar e Álcool		-		-		30,010,278		31,15
Gávea Funds		39,445,393		22,62		-		-
Others		126,968,837		72,83		-		-
Total		174,355,341		100,00		96,332,044		100,00

Class B1 shares entitle their holders to 10 votes per share and Class A shares entitle holders to 1 vote per share.

Repurchase of shares

On September 16, 2011, the Board of Directors approved a stock repurchase plan for the purpose of maintenance in treasury, cancellation or disposal. The repurchase of shares is due to 365 days and the maximum amount of repurchase is US$100 million.

During the year ended March 31, 2012, the Company acquired 5,306,502 shares for R$ 109,392. The average value acquired during the period was R$ 20.52, and the maximum and minimum value were R$ 22.40 and R$ 17.58, respectively.

As of March 31, 2011, the Company has 5,306,502 treasury shares, which market value, at that date, was R$ 27.06.

Earnings per share

The table below presents the reconciliation of the net income and the weighted average value per share used to the calculation of the basic and diluted earnings per share.

Cosan Limited does not have any dilutive potential shares outstanding, therefore the table below presents the calculation of basic and diluted earnings per share to exercise year ended March 31, 2012 and March 31, 2011:

	2012		2011		2010
Numerator:
Net income – attributable to owners of the Company		1,181,342		470,906		706,094
Denominator:
Weighted average shares outstanding		266,678,062		270,687,385		270,687,385
Basic and diluted earnings per share	R$	4.40	R$	1.74	R$	2.61

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

21.	Gain on the de-recognition of subsidiaries operations to form the Joint Ventures (Raízen Energia e Raízen Combustíveis)

As mentioned in note 1, on June 1, 2011, the Company concluded, together with Shell, the formation of two joint ventures: (1) Raízen Combustíveis, in the fuel distribution segment, and (ii) Raízen Energia, in the sugar and ethanol segment. The Company through its subsidiary Cosan S.A. and Shell share the control of the two entities, each one has 50% of the economic control.

The formation of Raízen Energia and Raízen Combustíveis has the objective to create one of the world’s largest producers of sugar, ethanol and bioenergy produced from sugarcane and one of the largest fuel distributors in the Brazilian market.

Due to the formation of Raízen Energia and Raízen Combustíveis, the Company contributed its sugar and ethanol businesses, deconsolidating the related assets and liabilities and recording the remaining interest at fair value.

The process of deconsolidating the contributed business, on June 1, 2011, and the recognition of the new interest at fair value produced a gain of R$2,752,730 recorded during the year and shown below:

Fair value of the remaining interest in the joint ventures (a)	8,105,546
Book value of business (assets and liabilities) contributed	(4,257,640	)
Gain on derecognition of subsidiaries upon formation of JV	3,847,906
Other amounts directly attributable to de-recognition of subsidiaries:
Write-off of recoverable taxes not realizable upon de-consolidation (b)	(83,465	)
Write-off of goodwill previously recorded by Cosan S.A. and Cosan Limited related to the contributed subsidiaries	(637,534	)
Write-off of unrealized losses in relation to hedge accounting entered into by Cosan S.A. in relation to the operations of the de-consolidated subsidiaries	(157,988	)
Pre-existing commitments of the de-consolidated subsidiaries	(78,995	)
Other amounts (c)	(137,194	)
Gain de-recognition of subsidiaries upon formation of joint ventures	2,752,730

(a)	Based on appraisal report prepared by independent appraisers.

(b)	Recoverable taxes recorded by Cosan S.A., considered not realizable, and if received will be reimbursed to Raízen Energia.

(c)	Other amounts include transactional costs that were directly linked to the de-recognition of the subsidiary operations

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

21.	Gain on the de-recognition of subsidiaries operations to form the Joint Ventures (Raízen Energia e Raízen Combustíveis) (Continued)

Considering that Cosan chose to consolidate proportionally the joint ventures, the fair value of the remaining interest was allocated to the 50% proportion of the fair value of the assets and liabilities of these entities with the purpose to determine the goodwill of the transaction, as show below:


	Raízen Energia			Raízen Combustíveis			Total
Fair value of assets and liabilities:
Cash and cash equivalents		358,457			273,359			631,816
Restricted cash		61,655			-			61,655
Account Receivable		385,651			1,026,274			1,411,925
Derivatives		114,204			-			114,204
Inventories		746,561			831,258			1,577,819
Receivable from Shell		1,853,269			-			1,853,269
Other assets		1,691,561			1,527,766			3,219,327
Investments		120,764			-			120,764
Biological Assets		1,607,170			-			1,607,170
Property,plant and equipment		9,313,801			2,719,498			12,033,298
Intangible Assets		253,152			1,826,224			2,079,376
Loan and financing		(5,579,218	)		(926,268	)		(6,505,486	)
Suppliers		(471,495	)		(557,912	)		(1,029,407	)
Taxes payable		(255,939	)		35,550			(220,389	)
Other Liabilities		(2,918,758	)		(2,296,137	)		(5,214,895	)
Non-controlling interests		(16,457	)		(35,527	)		(51,984	)
Net assets at fair value:		7,264,378			4,424,085			11,688,462
Cosan’s interest - 50%		3,632,190			2,212,042			5,844,232
Goodwill allocated		1,405,407			855,907			2,261,314
Fair value of the remaining interest in joint ventures		5,037,597			3,067,949			8,105,546

The goodwill of the transaction (R$2,261,314) was allocated to the segments Raízen Energia and Raízen Combustíveis in the proportion of net assets at fair value of each of these investments.

Additional Pro Forma Information

If the JVs formed during 2012 had been included in the income statement since the beginning of the year the revenue would be R$ 26,394,754 and net income would be R$2,264,333.

The Company´s share of the assets and liabilities as at March 31, 2012 and income and expenses of the jointly controlled entity for the year then ended, which is proportionally consolidated in the consolidated financial statements, are as presented in Note 29 – Segment Information. The contingent liabilities and capital commitments of the JVs are disclosed in Notes 18 and 19.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

22.	Gross Sales

	2012			2011			2010
Gross revenue from sales of products and services		25,917,922			19,783,250			16,685,884
Indirect taxes and deductions		(1,821,041	)		(1,719,770	)		(1,349,829	)
Net revenue		24,096,881			18,063,480			15,336,055

23.	Expenses by nature

Reconciliation of expenses by nature

The expenses are presented in the consolidated results by function. The reconciliation of income by nature/purpose for the years ended March 31, 2012, 2011 and 2010 is detailed as follows:

Expenses by nature:

	2012			2011			2010
Raw-material		(4,612,407	)		(3,657,462	)		(3,902,508	)
Resale fuels		(15,060,815	)		(10,084,103	)		(8,393,136	)
Payroll		(568,061	)		(905,510	)		(694,939	)
Commercial expenses		(535,439	)		(179,283	)		(221,332	)
Transportation and loading		(401,339	)		(545,212	)		(315,177	)
Depreciation and amortization		(1,142,780	)		(742,307	)		(644,635	)
Other expenses		(926,494	)		(607,652	)		(464,006	)
		(23,247,335	)		(16,721,529	)		(14,635,733	)

Segregated as:

	2012			2011			2010
Cost of goods sold		(21,465,009	)		(15,150,079	)		(13,271,331	)
Selling		(1,136,285	)		(1,026,000	)		(862,726	)
General and Administrative		(646,041	)		(545,450	)		(501,676	)
		(23,247,335	)		(16,721,529	)		(14,635,733	)

24.	Financial results, net

	2012			2011			2010
Financial Expense
Interests		(546,850	)		(586,887	)		(556,466	)
Monetary variation		(15,624	)		(81,341	)		(64,395	)
Others		(25,615	)		(9,138	)		(1,527	)
		(588,089	)		(677,366	)		(622,388	)
Financial Income
Interests		50,009			63,791			96,521
Monetary variation		26,312			34,018			13,374
Investments		131,115			90,345			52,530
Others		372			603			39,606
		207,808			188,757			202,031

Foreign exchange variation, net		(93,888	)		282,706			558,977

Derivatives, net
Commodities derivatives		18,472			6,524			(186,268	)
Exchange rate and interest derivatives		(711	)		34,984			517,216
Warrants in associates		(22,141	)		13,248			23,873
		(4,380	)		54,756			354,821
		(478,549	)		(151,147	)		493,441

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

25.	Other Income (expense), net

	2012			2011			2010
Other income
Gain on sale of aviation fuel distribution business		-			-			52,031
Gain on disposal of property, plant and equipment		93,892			43,708			-
Revenue from the sale of scrap and waste		2,862			6,950			6,417
Rental and leasing income		57,197			4,111			6,215
Reversal of allowance for doubtful accounts with related party		28,804			-			-
Revenue from Royalties		19,739			-			-
Revenue from customer base		14,827			-			-
Other Income		44,075			8,908			11,536
		261,396			63,677			76,199
Other expense
Provision for judicial demands		(80,835	)		(23,828	)		(25,829	)
Internal costs on Rumo transaction		(1,971	)		(20,319	)		-
Donations		-			(12,335	)		-
Expenses of subsidiaries acquisition and start up		(9,497	)		(6,517	)		-
Other expense		(23,543	)		(34,506	)		(12,847	)
		(115,846	)		(97,505	)		(38,676	)
		145,550			(33,828	)		37,523

26.	Financial Instruments

Financial risk management

Overview

The Company is exposed to the following risk related to the use of financial instruments:

Price risk

Foreign exchange rates

Interest rates

Credit risk

Liquidity risk

This note presents information about the Company, its subsidiaries and jointly-controlled entities exposure for which risk above, the object of the Company’s risk management policies, the polices and processes for measurement, risk management and capital management.

Risk management structure

The risks of each type of business markets are managed and monitored by the company and, where applicable, has risk committees to discuss and determine the hedge strategy of the company in accordance with its policies and guidelines.

There is, in Raízen Energia, a Risk Committee that meets weekly to analyze the behavior of commodity markets (mainly sugar), exchange rate and decide about coverage position and sugar pricing strategy to export, seeking to reduce the adverse effects of changes in prices and exchange rates, as well as monitor the liquidity risk and counterparty risk (credit).

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

26.	Financial Instruments (Continued)

Risk management structure (Continued)

The Company, its subsidiaries and its jointly-controlled entities are exposed to market risks, mainly related to the volatility of sugar prices and foreign exchange rates. Management analyzes these risks and uses financial instruments to hedge a portion of the risk exposure.

At March 31, 2012 and 2011, fair values related to transactions involving derivative financial instruments with the purpose of hedge or other purposes were measured at market value (fair value) by observables factors such as quoted prices in active markets or discounted cash flows based on market curves and are presented below:

	Notional					Fair Value
	March 31, 2012		March 31, 2011			March 31, 2012			March 31, 2011			P&L (*)
Raízen Energia
Price risk
Commodity derivatives
Future agreements		1,194,225		-			24,377			-			24,377
Option agreements		8,954		-			782			-			38
							25,159			-			24,415
Price risk
Exchange rate derivatives
Future agreements		490,949		-			1,682			-			1,431
Option agreements		258,690		-			1,773			-			1,773
Price risk		256,381		-			3,403			-			3,403
							6,858			-			6,607

Interest rate risk
Derivative interest		318,868		-			(1,495	)		-			(1,495	)
							(1,495	)		-			(1,495	)

Total Raízen Energia							30,522			-			29,527
Consolidated Cosan (50% Raízen Energia)							15,261			-			14,764

Derivatives in the Company and subsidiaries

Price risk
Commodity derivatives
Future agreements		-		1,308,033			-			(68,906	)		-
Option agreements		-		10,364			-			(17,484	)		-
							-			(86,390	)		-
Price risk
Exchange rate derivatives
Future agreements		-		(114,204	)		-			(117	)		-
Option agreements		325,029		694,599			(5,282	)		9,900			(5,282	)
							(5,282	)		9,783			(5,282	)
Total Cosan (including 50% Raízen Energia)							9,979			(76,607	)		9,482
Total of Assets							19,590			55,682
Total of Liabilities							(9,611	)		(132,289	)

(*) Values from the income statement calculated for the year ended March 31, 2012.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

26.	Financial Instruments (Continued)

Price Risk

This arises from the potential for fluctuations in the market prices of products sold by the Raizen Energia, mainly raw material sugar - VHP (sugar #11) and white sugar (LIFFE sugar #5). These fluctuations in prices can cause substantial changes in the revenues. To mitigate these risks, the Raizen Energia constantly monitors the markets, seeking to anticipate changes in prices. The positions of the consolidated derivative financial instruments to hedge the price risk of commodities are shown in the table below:

Price Risk : derivatives of commodities open at March 31, 2012

Derivatives

Purchased / Sold

Market

Contract

Maturity

Notional (units)

Notional

(R$ thousand)

Fair Value

(R$ thousand)

Contracted financial Instruments by Raízen Energia

Composition of balances of derivative financial instruments designated in hedge accounting

Future

Sold

NYBOT

Sugar#11

1-May-12

129,241 T

132,392

4.106

Future

Sold

NYBOT

Sugar#11

1-Jul-12

440,050 T

434,844

13,778

Future

Sold

NYBOT

Sugar#11

1-Oct--12

551,358 T

534,580

5,901

Future

Sold

NYBOT

Sugar#11

1-Mar-13

110,851 T

109,453

223

Future

Sold

NYBOT

Sugar#11

1-Jul-13

204 T

191

(5)

Sub-total of future sugar sold

1,231,704 T

1,211,460

24,003

Composition of balances of derivative financial instruments not- designated in hedge accounting

Future

Purchased

NYBOT

Sugar#11

1- May-12

(25,808 T)

(25,589)

Future

Purchased

NYBOT

Sugar#11

1-Jul-12

(10,160 T)

(9,562)

160

Future

Purchased

NYBOT

Sugar#11

1-Out-12

(2,693 T)

(2,462)

120

Future

Purchased

NYBOT

Sugar#11

1-May-13

(1,422 T)

(1,338)

Future

Purchased

NYBOT

Sugar#11

1-May-13

(254 T)

(240)

Future

Purchased

NYBOT

Sugar#11

1-Jul-13

(203 T)

(187)

Sub-total of future sugar purchased

(40,540 T)

(39,378)

388

Sub-total of future sugar

1,191,164 T

1,172,082

24,391

Call

Purchased

NYBOT

Sugar#11

1-May-12

(5,080 T)

(57)

Call

Purchased

NYBOT

Sugar#11

1-Jul-12

(111,766 T)

(2,760)

269

Sub-total of call purchased

(116,846 T)

(2,817)

283

Call

Sold

NYBOT

Sugar#11

1-May-12

27,687 T

2,751

(11)

Call

Sold

NYBOT

Sugar#11

1-Jul-12

76,204 T

4,500

(184)

Call

Sold

NYBOT

Sugar#11

1-Jul-12

35,562 T

1,820

(86)

Sub-total of call sold

139,453 T

9,071

(281)

Put

Purchased

NYBOT

Sugar#11

1-May-12

27,687 T

2,699

779

Sub-total de put purchased

27,687 T

2,699

779

Sub-total of options of sugar

8,953

781

Future

Sold

BMFBovespa

ETH

30-Mar-12

16,560 m³

20,430

Future

Sold

BMFBovespa

ETH

30-Apr-12

18,210 m³

22,642

(18)

Sub-total of future ethanol sold

34,770 m³

43,072

(10)

Future

Purchased

BMFBovespa

ETH

30-Mar-12

(5,910 m³)

(7,473)

(3)

Future

Purchased

BMFBovespa

ETH

30-Mar-12

(10,650 m³)

(13,456)

Sub-total of future ethanol purchased

(16,560 m³)

(20,929)

(3)

Sub-total of future ethanol

18,210 m³

22,143

(13)

Total of commodities

1,203,178

25,159

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

26.	Financial Instruments (Continued)

Price risk: commodity derivatives outstanding on March 31, 2011

Derivatives

Long/Short

Market

Agreement

Maturity

Notional

Fair value

Composition of derivatives financial instruments designated in hedge accounting

Future

Short

NYBOT

#11

1-May-11

23,150 T

26,442

(392)

Future

Short

NYBOT

#11

1-May-11

208,239 T

200,552

(2,154)

Future

Short

NYBOT

#11

1-Jul-11

520,877 T

424,617

(43,705)

Future

Short

NYBOT

#11

1-Oct-11

513,460 T

388,694

(56,734)

Future

Short

NYBOT

#11

1-Mar-12

139,656 T

121,973

2,827

Sub-total of futures of Sugar Sold

1,405,382 T

1,162,278

(100,159)

Composition of derivatives financial instruments not designated in hedge accounting

Future

Long

NYBOT

#11

1-May-11

(55,883 T)

(49,591)

4,807

Future

Long

NYBOT

#11

1-Jul-11

(7,620 T)

(6,786)

Future

Long

NYBOT

#11

1-Oct-11

(50,802 T)

(40,314)

3,758

Future

Long

NYBOT

#11

1-Mar-12

(84,027 T)

(49,064)

22,623

Sub-total of futures of Sugar Purchased

(198,333 T)

(145,755)

31,253

Call

Short

NYBOT/OTC

#11

1-Oct-11

43,182 T

985

(6,559)

Call

Short

NYBOT

#11

1-Oct-11

55,883 T

3,651

(7,826)

Call

Short

NYBOT

#11

1-Jul-12

101,605 T

1,177

(4,597)

Sub-total of Call Sold

200,669 T

5,813

(18,981)

Put

Long

NYBOT/OTC

#11

1-Oct-11

43,182 T

985

574

Put

Long

NYBOT/OTC

#11

1-Oct-11

55,883 T

3,566

923

Sub-total de Put Purchased

99,065 T

4,551

1,497

Total de Commodities

1,026,888

(86,390)

The fair value of these derivatives was measured by observable factors, such as quoted prices in active markets and, in some cases, by means of models whose assumptions are observable in the market.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

26.	Financial Instruments (Continued)

Foreign Exchange risk

This arises from the possibility of fluctuations in the exchange rates of the foreign currencies used by its subsidiaries and jointly-controlled entities for the export revenues of products, imports, debt cash flow and other assets and liabilities denominated in a foreign currency. Its subsidiaries and jointly-controlled entities use derivative transactions to manage the risks of cash flow coming from the export revenues denominated in U.S. dollars, net of other cash flows denominated in foreign currency. The table below demonstrates the consolidated positions outstanding on March 31, 2012 of derivatives used to hedge exchange rates:

Price Risk : derivatives of foreign currencies open in March 31, 2012
Derivatives	Purchased / Sold	Market	Contract	Maturity	Notional (USD)		Notional (R$ Thousand)		Fair Value (R$ Thousand)
Financial instruments contracted by Raizen Energia

Composition of balances of derivative financial instruments designated in hedge accounting

Term	Sold	OTC/Cetip	NDF	02-Apr-12	141,000		258,690		1,773
Sub-total of term sold					141,000		258,690		1,773

Composition of balances of derivative financial instruments non-designated in hedge accounting

Future	Sold	BMFBovespa	Commercial Dollar	02-Apr-12	898,000		1,563,367		6,954
Future	Sold	BMFBovespa	Commercial Dollar	02-May-12	330,500		608,037		1,614
Future	Sold	BMFBovespa	Commercial Dollar	02-May-12	3,250		5,967		(3	)
Sub-total of future sold					1,231,750		2,177,371		8,565
Future	Purchased	BMFBovespa	Commercial Dollar	02-Apr-12	(922,000	)	(1,685,044	)	(6,882	)
Future	Purchased	BMFBovespa	Commercial Dollar	02-May-12	(750	)	(1,378	)	(1	)
Sub-total of future purchased					(922,750	)	(1,686,422	)	(6,883	)

Exchange lock	Sold	OTC	Exchange lock	02-Jul-12	20,000		38,254		1,121
Exchange lock	Sold	OTC	Exchange lock	02-Jul-12	30,000		58,104		2,575
Exchange lock	Sold	OTC	Exchange lock	06-Set-12	20,000		36,044		(1,445	)
Exchange lock	Sold	OTC	Exchange lock	13-Set-12	40,250		74,881		(768	)
Exchange lock	Sold	OTC	Exchange lock	24-Set-12	25,000		49,098		1,920
					135,250		256,381		3,403
Total of Exchange rate derivatives (Raízen Energia)					585,250		1,006,020		6,858

Derivatives	Purchased / Sold	Market	Contract	Maturity	Number of Contracts	Strike	Middle Price		Fair Price	Notional (USD)			Notional (R$ mil)		Fair Value (R$ thousand)
Term	Purchased	OTC	NDF	4-May-12	1	-		1.8944	1.8417		(6,188	)		11,722		348
Term	Purchased	OTC	NDF	4-May-12	1	-		1.6789	1.8417		(4,197	)		7,047		(660	)
Term	Purchased	OTC	NDF	3-Aug-12	1	-		1.9358	1.8771		(4,197	)		7,239		(597	)
Term	Purchased	OTC	NDF	3-Aug-12	1	-		1.7247	1.8771		(6,188	)		11,978		389
Term	Purchased	OTC	NDF	1-Nov-12	1	-		1.9780	1.9166		(4,197	)		7,390		(563	)
Term	Purchased	OTC	NDF	1-Nov-12	1	-		1.7607	1.9166		(6,188	)		12,239		455
Term	Purchased	OTC	NDF	4-Feb-13	1	-		2.0209	1.9508		(4,197	)		7,546		(524	)
Term	Purchased	OTC	NDF	4-Feb-13	1	-		1.7978	1.9508		(6,188	)		12,504		525
Term	Purchased	OTC	NDF	3-May-13	1	-		2.0589	1.9737		(4,197	)		7,696		(472	)
Term	Purchased	OTC	NDF	3-May-13	1	-		1.8336	1.9737		(6,188	)		12,739		597
Term	Purchased	OTC	NDF	2-Aug-13	1	-		2.1005	2.0103		(4,197	)		7,859		(430	)
Term	Purchased	OTC	NDF	2-Aug-13	1	-		1.8724	2.0103		(6,188	)		12,997		653
Term	Purchased	OTC	NDF	4-Nov-13	1	-		2.1424	2.0480		(4,197	)		8,032		(386	)
Term	Purchased	OTC	NDF	4-Nov-13	1	-		1.9137	2.0480		(6,188	)		13,256		699
Term	Purchased	OTC	NDF	4-Feb-14	1	-		2.1852	2.0850		(4,197	)		8,190		(358	)
Term	Purchased	OTC	NDF	4-Feb-14	1	-		1.9513	2.0850		(6,188	)		13,521		747
Term	Purchased	OTC	NDF	2-May-14	1	-		2.2211	2.1210		(4,197	)		8,340		(329	)
Term	Purchased	OTC	NDF	2-May-14	1	-		1.9870	2.1210		(6,188	)		13,743		770
Term	Purchased	OTC	NDF	4-Aug-14	1	-		2.2630	2.1610		(4,197	)		8,507		(288	)
Term	Purchased	OTC	NDF	4-Aug-14	1	-		2.0268	2.1610		(6,188	)		14,002		820
Term	Purchased	OTC	NDF	4-Nov-14	1	-		2.3048	2.2002		(4,197	)		8,666		(250	)
Term	Purchased	OTC	NDF	4-Nov-14	1	-		2.0648	2.2002		(6,188	)		14,261		876
Term	Purchased	OTC	NDF	4-Feb-15	1	-		2.3429	2.2394		(4,197	)		8,813		(221	)
Term	Purchased	OTC	NDF	4-Feb-15	1	-		2.0997	2.2394		(6,188	)		14,497		915
Term	Purchased	OTC	NDF	4-May-15	1	-		2.3800	2.2564		(4,197	)		8,942		(201	)
Term	Purchased	OTC	NDF	4-May-15	1	-		2.1305	2.2564		(6,188	)		14,726		957
Term	Purchased	OTC	NDF	4-Aug-15	1	-		2.4247	2.2564		(4,197	)		9,089		(169	)
Term	Purchased	OTC	NDF	4-Aug-15	1	-		2.1656	2.2564		(6,188	)		15,003		1,032
Term	Purchased	OTC	NDF	4-Nov-15	1	-		2.4653	2.2564		(4,197	)		9,231		(140	)
Term	Purchased	OTC	NDF	4-Nov-15	1	-		2.1994	2.2564		(6,188	)		15,254		1,087
Total Exchange rate derivatives (Company and subsidiaries)											(155,775	)		325,029		5,282

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

26.	Financial Instruments (Continued)

Exchange risk : exchange derivatives outstanding on March 31, 2011
Derivatives	Long/Short	Market	Agreement	Maturity	Notional		Fair value

Composition of derivatives financial instruments designated in hedge accounting

Forward	Short	OTC/Cetip	NDF	1-Apr-11	166,150		3,279
Forward	Short	OTC/Cetip	NDF	31-May-11	117,782		2,094
Forward	Short	OTC/Cetip	NDF	1-Jul-11	84,645		1,349
Forward	Short	OTC/Cetip	NDF	1-Aug-11	85,300		1,422
Forward	Short	OTC/Cetip	NDF	3-Oct-11	396,618		11,046
Forward	Short	OTC/Cetip	NDF	2-Jan-12	91,075		3,744
Sub-total of Forward Sold					941,570		22,932

Composition of derivatives financial instruments not designated in hedge accounting


Future	Long	BMFBovespa	Commerc. U.S. dollar	2-May-11	(114,204)		(117	)
Sub-total of Future Purchased					(114,204	)	(117	)
Forward	Long	OTC	NDF (Offshore)	4-May-11	(10,780	)	(625	)
Forward	Long	OTC	NDF (Offshore)	4-Aug-11	(11,014	)	(619	)
Forward	Long	OTC	NDF (Offshore)	4-Nov-11	(11,246	)	(613	)
Forward	Long	OTC	NDF (Offshore)	3-Feb-12	(11,489	)	(604	)
Forward	Long	OTC	NDF (Offshore)	4-May-12	(11,722	)	(584	)
Forward	Long	OTC	NDF (Offshore)	3-Aug-12	(11,978	)	(586	)
Forward	Long	OTC	NDF (Offshore)	1-Nov-12	(12,239	)	(595	)
Forward	Long	OTC	NDF (Offshore)	4-Feb-13	(12,504	)	(595	)
Forward	Long	OTC	NDF (Offshore)	3-May-13	(12,739	)	(571	)
Forward	Long	OTC	NDF (Offshore)	2-Aug-13	(12,997	)	(534	)
Forward	Long	OTC	NDF (Offshore)	4-Nov-13	(13,256	)	(493	)
Forward	Long	OTC	NDF (Offshore)	4-Feb-14	(13,521	)	(462	)
Forward	Long	OTC	NDF (Offshore)	2-May-14	(13,743	)	(476	)
Forward	Long	OTC	NDF (Offshore)	4-Aug-14	(14,002	)	(617	)
Forward	Long	OTC	NDF (Offshore)	4-Nov-14	(14,261	)	(754	)
Forward	Long	OTC	NDF (Offshore)	4-Feb-15	(14,497	)	(872	)
Forward	Long	OTC	NDF (Offshore)	4-May-15	(14,726	)	(991	)
Forward	Long	OTC	NDF (Offshore)	4-Aug-15	(15,003	)	(1,152	)
Forward	Long	OTC	NDF (Offshore)	4-Nov-15	(15,254	)	(1,291	)
Sub-total of Forward Purchased					(246,970	)	(13,033	)
Total of exchange rate derivatives					580,395		9,783

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

26.	Financial Instruments (Continued)

On March 31, 2012 and 2011, the Company, its subsidiaries and its jointly-controlled entities had the following net exposure to the variation of U.S. dollar assets and liabilities denominated in U.S. dollars:

	2012						2011
		R$		US$ (in thousands)				R$		US$ (in thousands)
Bank accounts		6,349			3,484			130,455			80,098
Restrict Cash		45,976			25,232			126,872			77,898
Accounts receivable		164,681			90,380			7,556			4,639
Related Parties (Shell)		436.362			239,483			-			-
Loans		(2,915,388	)		(1,600,015	)		(3,791,517	)		(2,327,943	)
Net foreign exchange exposure		(2,262,020	)		(1,241,436	)		(3,526,634	)		(2,165,308	)

Effect of Hedge Accounting

The jointly-controlled entity Raízen Energia formally designated its transactions subject to hedge accounting for cash flow hedges from sugar VHP (raw material) export revenue, documenting: (i) the relationship of the hedge, (ii) the purpose for taking the hedge and its risk management strategy, (iii) identification of the financial instrument, (iv) the transaction or item covered, (v) the nature of the risk being hedged, (vi) a description of the hedging relationship (vii) the demonstration of correlation between the hedge and the object of coverage, and (viii) the prospective analysis of hedge effectiveness. The derivative financial instruments of Sugar # 11 (NYBOT or OTC) were designated to cover the risk of price and Non-Deliverable Forwards (NDF) to cover exchange rate risk, as demonstrated in topics (b) and (c) of this Note.

Raizen Energia records gains and losses deemed effective for purposes of hedge accounting to a specific account in equity (“other comprehensive income”), until the object of coverage (hedged item) affects the profit and loss. On March 31, 2012, the amounts recorded in other comprehensive income related to hedge accounting are as follows:

			Expected period to affect P&L
Derivative	Market	Risk		2012/2013		2013/2014		Total

Future	OTC / NYBOT	#11		40,543		564			41,107
NDF	OTC / CETIP	USD		1,663		-			1,663
				42,206		564			42,770
(-) Deferred income tax				(14,350	)	(192	)		(14,542	)
Effect on the Raizen Equity				27,856		372			28,228
Effect on equity of Cosan (50%)									14,114

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

26.	Financial Instruments (Continued)

Effect of Hedge Accounting

The changes for the period of the effect of hedge accounting on other comprehensive income of Cosan S.A is shown below:

Cash flow hedge

Balance at March 31, 2010	-
Gain/(losses) of cash flow hedges for the year:
Commodities futures and swap contracts	(572,161	)
Currency forward contracts	179,099
Reclassification adjustments for losses included in the income statement	175,945
Total before tax effect	(217,117	)
Tax effect on gain/(losses) of cash flow hedges for the period – 34%	73,819
Balance at March 31, 2011	(143,298	)
Gain/(losses) of cash flow hedges for the year:
Commodities futures and swap contracts	5,414
Currency forward contracts	38,286
Reclassification adjustments for losses / gains included in the income statement	36,815
Write off of OCI due to the formation of JV	157,989
Tax effect on gain/(losses) of cash flow hedges for the period – 34%	(81,091	)
Balance at March 31, 2012	14,114

Interest rate risk

The Company, its subsidiaries and jointly-controlled entities monitors the fluctuations in variable interest rates in connection with certain debts, especially those related to the risk of Libor, and makes use of derivative instruments in order to minimize these risks. The table below shown the consolidated positions open on March 31, 2012 of derivatives used for interest rate (none in 2011):

Price Risk : derivatives of interests open in March 31, 2012

Derivatives

Asset / Liabilities

Market

Maturity

Notional

Fail Value

(US$ Thousands)

(R$ Thousand)

Interest rate Swap

Libor 3M / pré

OTC

Jan-16

175,000

318,868

(1,495)

Total

175,000

318,868

(1,495)

Credit risk

A significant portion of sales made by the subsidiaries and jointly-controlled entities is to a select group of best-in-class counterparts (i.e. trading companies, fuel distribution companies and large supermarket chains).

Credit risk is managed through specific rules of client acceptance including credit ratings and limits for customer exposure, including the requirement of a letter of credit from major banks and obtaining actual warranties on given credit, when applicable. Management believes that the risk of credit is covered by the allowance for doubtful accounts.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

26.	Financial Instruments (Continued)

Credit risk (Continued)

The Company, its subsidiaries and jointly-controlled entities buy and sell commodity derivatives in futures and options markets on the New York Board of Trade (NYBOT) and the London International Financial Futures and Options Exchange (LIFFE), as well as in the over-the-counter (OTC) market with selected counterparties. The Company and its jointly-controlled entities buy and sell foreign exchange derivatives on BM&FBovespa and OTC contracts registered with CETIP (OTC clearing house) with banks Espirito Santo Investment do Brasil S.A., Deutsche Bank S.A. – Banco Alemão, Banco JP Morgan S.A. and Banco Standard de Investimentos S.A..

Guarantee margins – The Company’s derivative operations on commodity exchanges (NYBOT, LIFFE and BM&FBovespa) require an initial guarantee margin. The brokers with which the Company operates on these commodity exchanges offer credit limits for these margins. As of March 31, 2011, the total credit limit used as initial margin required by the NYBOT was R$62,247 (R$136,420 as of March 31, 2011). As a requirement to trade in BM&FBovespa, the Company posted on March 31, 2012, the amount of R$76,436 (R$50,000 as of March 31, 2011) as guarantee in the form of a settlement bond issued by a first-class banking institution.

Liquidity risk

Liquidity risk is the risk that the Company, its subsidiaries and jointly-controlled entities will encounter difficulties in meeting the obligations associated with its derivative financial liabilities that are settled with cash payments or other financial assets. The approach of the Company, its subsidiaries and jointly-controlled entities liquidity management is to ensure, as much as possible, which always has sufficient liquidity to meet its obligations to win, under normal and stress, without causing unacceptable losses or risk damaging the reputation of the Company, its subsidiaries and jointly-controlled entities.

Fair value

The fair value of financial assets and liabilities is included in the price at which the instrument could be exchanged in a current transaction between parties willing to negotiate, and not in a forced sale or liquidation. The following methods and assumptions were used to estimate the fair value.

Cash and cash equivalents, accounts receivable, accounts payable and other short-term obligations approximate their respective carrying values due largely to short-term maturity of these instruments.

The fair value of marketable securities and bonds is based on price quotations on the date of the financial statements. The fair value of non-negotiable instruments, bank loans and other debts, obligations under finance leases, as well as other non-current financial liabilities are estimated by the discounted future cash flows using rates currently available for debt or deadlines and similar instruments.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

26.	Financial Instruments (Continued)

Fair value (Continued)

The fair market value of Senior Notes due 2014 and 2017, described in note 16, at its market price are 115.5% and 106% respectively, of its face value at March 31, 2012.

The fair market value of Perpetual bonds, described in note 16, at its market price is 105.2%, respectively, of its face value at March 31, 2012.

In respect of other loans and financing, their fair market values substantially approximate the amounts recorded in the financial statements due to the fact that these financial instruments are subject to variable interest rates.

The fair value of financial assets available for sale is obtained through quoted market prices in active markets, if any.

The Company, its subsidiaries and jointly-controlled entities enter into derivative financial instruments with various counterparties, primarily financial institutions with credit ratings of investment grade. The derivatives valued using valuation techniques with observable market data relate mainly to interest rate swaps, foreign exchange contracts and term contracts for commodities futures. The valuation techniques applied more often include pricing models for fixed-term contracts and swaps, with a present value calculation. The models incorporate various data, including credit quality of counterparties, the rates of currency spot and forward, interest rate curves and forward rate curves of the commodity underlying.

Fair value hierarchy

The Company, its subsidiaries and jointly-controlled entities have the following hierarchy to determine and disclose the fair value of financial instruments by the technical evaluation:

Level 1: quoted prices in a active market to identical assets and liabilities;

Level 2: other techniques for which all data that have significant effect on the fair value recorded are observable, directly or indirectly;

Level 3: techniques that use data that have significant effect on the fair value recorded that are not based on observable market data.

Assets and liabilities measured at fair value	Level 1			Level 2			Total

March 31, 2012
Warrants Radar		-			140,820			140,820
Derivative financial assets		17,002			2,588			19,590
Derivative financial liabilities		(8,864	)		(748	)		(9,611	)
Total		8,138			142,660			150,799

March 31, 2011
Warrants Radar		-			162,961			162,961
Derivative financial assets		35,577			20,105			55,682
Derivative financial liabilities		(122,084	)		(10,205	)		(132,289	)
Total		(86,507	)		172,861			86,354

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

26.	Financial Instruments (Continued)

Sensitivity analysis

Following is the sensitivity analysis of the fair value of financial instruments, in accordance with the types of risks deemed to be significant by the Company and its joint-controlled entities:

Assumptions for sensitivity analysis

For the analysis, the Company, its subsidiaries and jointly-controlled entities adopted three scenarios, being one probable and two that may have effects from impairment of the fair value of the financial instruments. The probable scenario was defined based on the futures sugar and US dollar market curves as of March 31, 2012, the same which determines the fair value of the derivatives at that date. Possible and remote scenarios were defined based on adverse impacts of 25% and 50% over the sugar and dollar price curves, which served as basis for the probable scenario.

Sensitivity analysis

Following is the sensitivity analysis on the change in the fair value of the Company’s financial derivatives:

					Impacts on P&L (*)
	Risk factor	Probable Scenario			Possible Scenario (25%)			Remote Scenario (50%)
Price risk
Commodity derivatives
Future agreements:
Selling agreements	Increase of the sugar price		12,127			(148,558	)		(296,990	)
Purchasing agreements	Decrease of the sugar price		194			(4,971	)		(9,941	)
Selling agreements	Increase of the Ethanol Hydrated price		(5	)		(5,518	)		(11,035	)
Purchasing agreements	Decrease of the Ethanol Hydrated price		(1	)		(3,998	)		(7,996	)
Option agreements:
Calls Purchased	Decrease of the sugar price		142			(142	)		(142	)
Calls Sold	Increase of the sugar price		(140	)		(3,835	)		(15,945	)
Puts Purchased	Increase of the sugar price		389			(389	)		(389	)

Exchange rate risk
Exchange rate derivatives
Future agreements:
Selling agreements	Increase of the exchange rate R$/US$		4,157			(130,685	)		(260,079	)
Purchasing agreements	Decrease of the exchange rate R$/US$		(3,441	)		(209,824	)		(420,339	)
Forward agreements:
Selling agreements	Increase of the exchange rate R$/US$		(4,395	)		(32,103	)		(64,206	)
Exchange lock:
Selling agreements	Increase of the exchange rate R$/US$		1,701			(30,592	)		(61,185	)
Option agreements:
Interest rate risk
Derivatives Interest
Swap agreement	Decrease in Libor curve		(747	)		(1,100	)		(2,208	)

(*) Results projected to occur within 12 months from March 31, 2012

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

26.	Financial Instruments (Continued)

Capital management

The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value.

Occasionally, the Company purchases its own shares on the market, the timing of these purchases depends on market prices.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2012 and 2011.

27.	Pension and other post-employment benefits plan

	2012		2011
Futura		34,725		24,380
Other		2,587		-
Total		37,312		24,380

Pension plan

Defined benefit

The Company’s subsidiary Cosan Lubricantes e Especialidades S.A. has a noncontributory defined benefit pension plan (Futura -former- Previd Exxon)covering certain employees upon retirement. This plan was altered to allow its settlement and was approved by the relevant authority on May 5, 2011. The settlement is the process whereby the plan is closed to any new entrants, with the cessation of contributions, guaranteeing the participants a benefit that is in proportion to the rights they had accumulated in the plan up until March 31, 2011.

Defined contribution

Since June 1, 2011, the Company and its subsidiaries sponsor a variable contribution plan, for all employees (Futura II). The Company does not have a legal or constructive obligation to pay further contributions if the fund does not have sufficient assets to pay all benefits owed. During the year ended March 31, 2012 the amount of contributions totaled R$5,906.

Since June 1, 2011, the jointly-controlled entities sponsor a defined contribution plan, for all employees (Raiz Prev). The jointly-controlled entities does not have a legal or constructive obligation to pay further contributions if the fund does not have sufficient assets to pay all benefits owed. During the year ended March 31, 2012 the amount of contributions totaled R$8,887.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

27.	Pension and other post-employment benefits plan (Continued)

Pension plan (Continued)

Prior to the formation of Raiz Prev and Futura II, the Company, through its subsidiary Cosan Alimentos S.A. ("Cosan Alimentos") sponsored a defined contribution plan, for all employees of that subsidiary. During the years ended March 31, 2011 and 2010, the amount of contributions totaled R$4,701 and R$5,407 respectively.

Actuarial Liability

The pension on Futura (former Previd Exxon) recorded in non-current liabilities at March 31, 2012 amounted to R$34,725 (R$24.380 in 2011).

A reconciliation of present value of defined benefit obligation and the fair value of plan assets, with assets and liabilities recognized on the balance sheet:

	2012			2011
Present value of actuarial obligation at beginning of year		(383,823	)		(325,534	)
Interest costs		(38,345	)		(35,107	)
Current service cost		(455	)		(4,445	)
Benefits paid		27,845			24,637
Settlement / curtailment		54,779			-
Actuarial loss on obligation at beginning of year		(22,716	)		(43,374	)
Present value of actuarial obligation at end of the year		(362,715	)		(383,823	)

Fair value of plan assets at beginning of the year		359,443			347,703
Expected return on plan assets		39,000			35,918
Contributions received by the fund		3,282			8,702
Benefits Paid		(27,846	)		(24,637	)
Effect of migration to defined contribution - Settlement		(32,226	)		-
Loss in fair value of assets		(13,663	)		(8,243	)
Fair value of plan assets at year-end		327,990			359,443

Present value of liabilities in excess fair value of assets – actuarial liability		(34,725	)		(24,380	)

Total expense recognized in profit or loss:

Expense recognized in profit or loss:	2012			2011			2010
Current service cost		(455	)		(4,445	)		(5,478	)
Interest on obligation		(38,345	)		(35,107	)		(32,583	)
Expected return on plan assets		39,000			35,918			31,046
		200			(3,634	)		(7,015	)

Total amount recognized as accumulated other comprehensive income:

	2012			2011
Amount accumulated at April 1		(22,621	)		(42,056	)
Unrecognized gains		36,379			29,447
Deferred Income Tax		(12,369	)		(10,012	)
Amount accumulated at March 31st		1,389			(22,621	)

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

27.	Pension and other post-employment benefits plan (Continued)

Actuarial Liability (Continued)

Plan assets include:

	2012					2011
	Amount		Percentual			Amount		Percentual
CDBs – Bank Deposits		245,993		75	%		268,863		74.80	%
Equity securities of Brazilian public entities		81,997		25	%		90,580		25.20	%
Total		327,990		100	%		359,443		100	%

Plan assets are represented by financial assets with quoted prices in an active market and therefore are included as a Level 1 fair value type. The total expected rate of return on assets is calculated based on market expectations existing at that date applicable to the period over which the obligation should be liquidated. These expectations are reflected in the following main assumptions.

The main assumptions used to determine the pension benefit obligations of the Company are as follows:

Defined benefit plan	2012	2011
Actuarial valuation method	Projected unit credit	Projected unit credit
Mortality table	AT 83 segregated by sex, decreased by 10%	AT 83 segregated by sex, decreased by 10%
Discount rate for actuarial liability	Interest: 9.68% p.a. + inflation: 4.20% % p.a.	Interest: 10.77% p.a. + inflation: 4.50% p.a.
Expected rate of return on plan assets	Interest: 11.30% p.a. + inflation: 4.20% p.a.	Interest: 11.20% p.a. + inflation: 4.50% p.a.
Salary growth rate	N/A	6.07% + inflation: 4.50% p.a.
Increase rate of estimated benefits	0.00% p.a. + inflation: 4.20% p.a.	0.00% p.a. + inflation: 4.50% p.a.

The Company expects contributions at the amount of R$ 3,037 to be paid in relation to its defined benefit and variable contribution plan in 2013.

28.	Share-Based Payments

In the ordinary and extraordinary general meeting held on August 30, 2005, the guidelines for the outlining and structuring of a stock option plan for Cosan S.A. officers and employees were approved, thus authorizing the issue of up to 5% of shares comprising Cosan S.A. share capital. This stock option plan was outlined to attract and retain services rendered by officers and key employees, offering them the opportunity to become shareholders of Cosan S.A.. On September 22, 2005, Cosan S.A. board of directors approved the distribution of stock options corresponding to 4,302,780 common shares to be issued or treasury shares held by Cosan S.A. related to 3.25% of the share capital at the time, authorized by the annual/extraordinary meeting. The remaining 1.75% remained to be distributed. On September 22, 2005, the officers and key employees were informed regarding the key terms and conditions of the share-based compensation arrangement.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

28.	Share-Based Payments (Continued)

On September 11, 2007, the board of directors approved an additional distribution of stock options, in connection with the stock option plan mentioned above, corresponding to 450,000 common shares to be issued or purchased by Cosan S.A. related to 0.24% of the share capital at September 22, 2005. The remaining 1.51% may still be distributed.

On August 7, 2009, the board of directors approved an additional distribution of stock options, in connection with the stock option plan mentioned above, corresponding to 165,657 common shares to be issued or purchased by Cosan S.A., due to changing in the management at that date.

According to the market value at the date of issuance, the exercise price is R$ 6.11 per share, without any discount. The exercise price was calculated before the valuation mentioned above based on an expected private equity agreement was not achieved. The options can be exercised after a waiting period of one year, considering a maximum percentage of 25% per annum of the total stock options offered by Cosan S.A. within a period of 5 years.

The exercise of options were settled only through issuance of new common shares or treasury shares.

The employees that leave Cosan S.A. before the vesting period will forfeit 100% of their rights. However, if the employment is terminated by Cosan S.A. without cause, the employees will have right to exercise 100% of their options of that particular year plus the right to exercise 50% of the options of the following year.

On March 31, 2011 all stock options related to that plan were exercised by issuance of new shares.

The number and weighted average exercise price of stock options are the following:

	Shares			Weighted average exercise price
Outstanding April 1, 2009		1,470,832			6.11
Exercised (July 17, 2009)		(224,819	)		6.11
Option granted (August 8, 2009)		165,657			6.11
Exercised (October 10, 2009)		(169,500	)		6.11
Exercised (December 15, 2009)		(571,194	)		6.11
Exercised (March 29, 2010)		(17,000	)		6.11
Outstanding March 31, 2010		653,976			6.11
Exercised (July 29, 2010)		(449,819	)		6.11
Exercised (September 17, 2010)		(91,717	)		6.11
Exercised (March 4, 2011)		(112,440	)		6.11
Outstanding March 31, 2011		-			-

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

28.	Share-Based Payments (Continued)

The fair value of share-based awards was estimated using a binominal model with the following assumptions:

	Options granted on September 22, 2005			Options granted on September 11, 2007			Options granted on August 7, 2009
Grant price		6.11			6.11			6.11
Expected life (in years)		7.5			7.5		Immediate
Interest rate		14.52	%		9.34	%		(1	)
Expected Volatility		34.00	%		46.45	%		(1	)
Expected Dividend yield		1.25	%		1.47	%		(1	)
Weighted-average fair value at grant date		12.35			18.19			(1	)

(1) The options were fully vested at the date of issuance so the fair value was the quoted market price as of the grant date

Expected Term – Cosan S.A. expected term represents the period that Cosan S.A. share-based awards are expected to be outstanding and was determined based on the assumption that the officers will exercise their options when the exercise period is over. Therefore, this term was calculated based on the average of 5 and 10 years. Cosan S.A. does not expect any forfeiture as those options are mainly for officers, whose turnover is low.

Expected Volatility – For the options granted on September 22, 2005 Cosan S.A. had its shares publicly-traded for less than 6 months as of April 30, 2006. Therefore, Cosan S.A. opted to substitute the historical volatility by an appropriate global industry sector index, based on the volatility of the share prices, and considering it as an assumption in its valuation model. Cosan S.A. has identified and compared similar public entities for which share or option price information is available to consider the historical, expected, or implied volatility of those entities’ share prices in estimating expected volatility based on global scenarios. For the options granted on September 11, 2007 Cosan S.A. used the volatility of its shares as an assumption in its valuation model since Cosan S.A. IPO in Brazil, in 2005.

Expected Dividends – As Cosan S.A. was a relatively new public entity, the expected dividend yield was calculated based on the current value of the stock at the grant date, adjusted by the average rate of the return to shareholders for the expected term, in relation of future book value of the shares.

Risk-Free Interest Rate – Cosan S.A. bases the risk-free interest rate used the SELIC - Special System Settlement Custody.

In the shareholder’s meeting held on July 29, 2011, the guidelines for the outlining and structuring of the stock option compensation plan for Cosan S.A.’s officers and employees were approved, authorizing the issuance of up to 5% of shares comprising Cosan S.A.’s total capital. This stock option plan was outlined to attract and retain officers and key employees, offering them the opportunity to become Cosan S.A.’s shareholders. On August 18, 2011, Cosan S.A.’s board of directors approved the total stock option grant corresponding up to 12,000,000 common shares to be issued or treasury shares held by Cosan S.A., corresponding 2.41% of the share capital at that time.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

28.	Share-Based Payments (Continued)

On the same date the eligible executives were informed of the all terms and conditions of the stock-option plan.

According to the average market value of the shares on a 30 day period ending at issuance, the exercise price was defined to be R$22.80 per share, without any discount. The fair value of options granted was estimated using the binomial model in compliance with the terms and conditions of each granted option.

The stock options were divided into “Tranche A” and “Tranche B”. The vesting period is described below.

Tranche A - The options can be exercised after a waiting period of one year, considering a maximum percentage of 20% per annum of the total stock options offered by Cosan S.A. within a period of 5 years. Exercise period ends August 19, 2016.

Tranche B - The options can be exercised after a waiting period of one year, considering a maximum percentage of 10% per annum of the total stock options offered by Cosan S.A. within a period of 10 years. Exercise period ends August 19, 2021.

The options may be exercised with the issuance of new shares or treasury shares that the company may have. The employees that leave Cosan S.A. before the vesting period will forfeit 100% of their rights.

As of August 18, 2011, 9,825,000 options related the shared based compensation was granted.The fair value of share based payments was estimated adopting the binomial model with the following premise:

	Options granted on August 18, 2011			Options granted on August 18, 2011
	Tranche A			Tranche B
Grant price - R$		22.8			22.8
Expected life (in years)		1 a 5			1 a 10
Interest rate		12.39	%		12.39	%
Expected Volatility		31.44	%		30.32	%
Weighted average fair value at grant date - R$		6.80			8.15

Expected Term – the expected term considers that the executives will exercise their options after the vesting period of each grant.

Expected volatility – Due to the new capital structure and business model after the formation of the JVs, the company opted to use the historic volatility of their shares adjusted by volatility of competitors’ shares that operate in similar lines of business.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

28.	Share-Based Payments (Continued)

Expected dividends – The dividends expected were calculated on the basis of the current market value on the grant’s date, adjusted by the average rate of return of capital to shareholders during the forecast period, and compared with to the book value shares.

Free risk Interest Rate – the company considered the prime rate as the free risk interest rate traded at BM&F Bovespa on the grant date and for the equivalent term of the option maturity.

As of March 31, 2012, no options have been exercised or forfeited. A total expense of R$ 10,800 has been recorded. As of March 31, 2011, the amount of R$35,354 related to the unrecognized compensation cost from the stock options plan is expected to be recognized.

29.	Segment information

Segment information

The following information about segments is based upon information used by Cosan’s senior management to assess the performance of operating segments and to decide on the allocation of resources.

Considering the formation of JVs Raízen Energia, Raízen Combustíveis and acquisition of the sugar retail business, Cosan has increased the presentation of its segments to five segments, as shown below.The information for prior periods have been reclassified to make them comparable with the information of this period.

(i)

Raízen Energia: production and marketing of a variety of products derived from sugar cane, including raw sugar (VHP), anhydrous and hydrated ethanol, and activities related to energy cogeneration from sugarcane bagasse. In addition, this segment holds interest in companies of research and development in new technologies involved in this segment.

(ii)

Raízen Combustíveis: distribution and marketing of fuels and lubricants, mainly through franchised network of service stations under the brand “Shell” and "Esso" throughout Brazil.

(iii)

Rumo: logistics services for the transport, storage and port lifting of sugar for both Raizen Energia and third parties.

(iv)

Cosan Alimentos: sale of food, mainly, of sugar in the retail under the brands “União” and “Da Barra”.

(v)

Cosan other business: sale and distribution of lubricants, investments in agricultural land (through Radar) and other investments, in addition to the corporate activities of the Company.

The following selected information result and segment assets that were measured in accordance with the accounting practices used in the preparation of consolidated information:

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

29.	Segment information (Continued)

Segment information (Continued)

	2012
	Raízen Energia (*)			Raízen Combustiveis (*)			Cosan Alimentos			Rumo			Cosan other businesses			Elimination 50% of Raizen			Elimination			Consolidated
Balance sheet
Property, plant and equipment		9,658,979			2,779,641			45,973			879,469			730,707			(6,219,310	)		(8,496	)		7,866,963
Intangible		2,996,846			3,928,900			83,597			604,963			780,822			-			(3,462,873	)		4,932,255
Loans and financing, net of cash and cash equivalents		(4,404,761	)		(603,447	)		29,834			(217,575	)		(853,398	)		2,504,104			-			(3,545,243	)
Other Assets and Liabilities, net		1,839,138			252,124			142,455			(52,175	)		9,462,380			(1,045,631	)		(10,370,643	)		227,648
Total Assets (net of liabilities) allocated by segment		10,090,202			6,357,219			301,859			1,214,682			10,120,511			(4,760,837	)		(13,842,013	)		9,481,623
Total Assets		19,979,070			11,559,239			408,966			2,029,954			16,038,721			(15,769,155	)		(12,078,676	)		22,168,119


Profit (loss) for the year:
Net Operating Income		7,247,685			35,096,051			706,430			571,988			1,065,515			(19,711,865	)		(878,923	)		24,096,881
Domestic Market		3,925,829			35,096,051			706,430			567,265			1,065,515			(18,166,987	)		(878,923	)		22,315,180
Foreign Market		3,321,856			-			-			4,724			-			(1,544,879	)		-			1,781,701
Gross profit		1,668,941			1,951,593			129,072			177,922			332,646			(1,628,302	)		-			2,631,872
Selling, general and administrative expenses		(965,440	)		(1,445,358	)		(96,001	)		(41,567	)		(324,489	)		1,090,529			-			(1,782,326	)
JV formation income		-			-			-			-			2,752,730			-			-			2,752,730
Other operating income, net		(18,207	)		270,736			23,114			19,493			(12,035	)		(129,056	)		(8,495	)		145,550
Financial result, net		(267,934	)		(82,203	)		1,911			8,992			(360,700	)		221,385			-			(478,549	)
Income tax and social contribution		(27,250	)		(192,056	)		6,156			(55,035	)		(935,180	)		93,152			-			(1,110,212	)
Net income		378,269			525,916			64,253			109,801			2,322,681			(353,500	)		(855,088	)		2,192,332
Other selected information:
Additions to PP&E, intangible assets and biological assets (cash)		2,577,859			491,734			2,860			268,985			99,473			(1,291,124	)		(13,270	)		2,136,517
Depreciation and amortization (including the effect of biological assets)		1,549,993			365,603			1,716			57,323			48,329			(880,183	)		-			1,142,780

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

29.	Segment information (Continued)

Segment information (Continued)

	2011
	Raizen Energia (*)			Raizen Combustiveis (*)			Rumo			Cosan other business			Elimination			Consolidated
Balance Sheet:														-
Property, plant and equipment		5,962,230			862,185			931,997			224,112			-			7,980,524
Intangible		1,644,350			528,653			358,287			1,358,285			-			3,889,575
Loans and financing, net of cash and cash equivalents		(4,723,833	)		(589,229	)		(99,829	)		(547,358	)		-			(5,960,249	)
Other Assets and Liabilities, net		(1,826,735	)		(238,736	)		(173,826	)		10,795,164			(7,137,020	)		1,418,847
Total Assets (net of liabilities) allocated by segment		1,056,012			562,873			1,016,629			11,830,203			(7,137,020	)		7,328,697
Total Assets		8,567,722			1,777,299			1,713,112			13,919,170			(7,363,213	)		18,614,090

Profit (loss) for the year:
Net Operating Income		6,389,178			10,966,245			448,003			829,032			(568,978	)		18,063,480
Domestic Market		3,678,207			10,966,245			448,003			829,032			(568,978	)		15,352,509
Foreign Market		2,710,971			-			-			-			-			2,710,971
Gross profit		1,988,662			466,989			131,469			314,131			12,150			2,913,401
Selling, general and administrative expenses		(961,407	)		(372,438	)		(28,951	)		(207,018	)		(1,636	)		(1,571,450	)
Other operating income, net		(65,415	)		33,754			9,936			(1,977	)		(10,126	)		(33,828	)
Financial result, net		(101,755	)		(22,441	)		13,047			(39,998	)		-			(151,147	)
Income tax and social contribution		(305,977	)		(40,490	)		(42,865	)		(25,176	)		-			(414,508	)
Net income		833,343			(126,368	)		62,543			236,702			(238,564	)		767,656
Other selected information:
Additions to PP&E, intangible assets and biological assets (cash)		2,817,195			83,266			126,189			10,569			-			3,037,219
Depreciation and amortization (including the effect of biological assets)		1,266,142			35,798			20,157			36,903			-			1,359,000

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

29.	Segment information (Continued)

Segment information (Continued)

	2010

	Raízen Energia (*)			Raízen Combustíveis(*)			Rumo			Cosan other business			Elimination			Consolidated
Financial position:
Property, plant and equipment		4,795,522			926,631			302,745			89,632			-			6,114,530
Intangible		2,207,198			629,931			363,135			625,103			-			3,825,367
Loans, net of cash and cash equivalents		(4,345,015	)		(502,587	)		(107,199	)		57,623			31,886			(4,865,292	)
Other assets and liabilities, net		3,611,383			151,461			(92,671	)		(51,366	)		(2,201,486	)		1,417,321
Total asset (net of liabilities) allocated by segment		6,269,088			1,205,436			466,010			720,992			(2,169,600	)		6,491,926
Total asset		14,492,261			2,810,217			806,394			880,151			(2,571,781	)		16,417,242

Profit (loss) for the year:
Net sales		5,380,134			9,506,468			158,249			638,586			(347,382	)		15,336,055
Domestic market		4,648,436			9,506,468			158,249			638,586			(347,382	)		14,604,357
External market		731,698			-			-			-			-			731,698
Gross profit		1,341,599			481,424			30,393			211,308			-			2,064,724
Selling general and administrative expenses		(846,306	)		(312,601	)		(18,111	)		(177,440	)		(9,944	)		(1,364,402	)
Gain on tax recovery program		270,333			-			-			-			-			270,333
Other income (expense)		(24,237	)		(15,146	)		4,962			117,339			(45,395	)		37,523
Financial result, net		433,293			53,317			(1,057	)		(30,394	)		38,282			493,441
Income tax and social contribution		(327,363	)		(75,219	)		(7,696	)		(13,026	)		-			(423,304	)
Net income / (losses)		1,111,283			131,775			11,917			22,197			(194,679	)		1,082,493
Other selected data:
Additions to PP&E and biological assets (cash)		2,240,909			114,321			147,943			42,259			-			2,545,432
Depreciation and amortization (including biological assets noncash effect)		1,040,532			73,261			14,167			-			-			1,127,960

(*) The information of Raízen Energia and Raízen Combustíveis represents 100% of the predecessor business, regardless of the fact that the Company lost full control of business June 1, 2011 when the formation of JVs occurred. The segment called Raízen Energia is basically the same information as in previous years for the segment called "CAA". The segment Raizen Combustíveis accounts presents the former CCL segment with the exception of the Lubricants business. From June 1, 2011 it includes the fuel distribution business contributed by Shell to the JV.

All non-current assets of the Company are located in Brazil except for certain equity interests.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

29.	Segment information (Continued)

Segment information (Continued)

Detailed net Sales per segment:

	2012			2011			2010
Raízen Energia
Sugar		3,912,824			3,853,404			3,377,832
Ethanol		2,871,515			2,203,737			1,747,646
Cogeneration		235,129			194,889			93,583
Other		228,217			137,148			161,073
		7,247,685			6,389,178			5,380,134
Raízen Combustíveis
Fuel		35,032,782			10,895,655			9,437,316
Other		63,269			70,590			69,152
		35,096,051			10,966,245			9,506,468
Alimentos
Amorphous		631,532			-			-
Crystal		39,013			-			-
Other		35,885			-			-
		706,430			-			-
Rumo
Elevation		141,026			118,139			142,120
Transportation		413,364			305,780			16,129
Other		17,598			24,084			-
		571,988			448,003			158,249
Cosan – other businesses
Lubrificants		1,018,801			829,032			634,045
Others		46,714			-			4,541
		1,065,515			829,032			638,586

Elimination		(20,590,788	)		(568,978	)		(347,382	)

Total		24,096,881			18,063,480			15,336,055

Net Sales per region

The percentage of net sales of the Raízen Energia segment by geographic area for the years ended are as follows:

	2012			2011			2010
Brazil		67.24	%		72.63	%		86.40	%
Europe		24.18	%		24.93	%		9.20	%
Latin America (Except Brazil)		3.52	%		0.20	%		2.80	%
Middle East and Asia		1.00	%		1.48	%		1.20	%
North America		2.94	%		0.74	%		0.30	%
Other		1.12	%		0.02	%		0.10	%
Brazil		100.00	%		100.00	%		100.00	%

The net sales from segments Raízen Combustíveis, Rumo and Cosan Alimentos are derived only from the domestic market (Brazil), with no revenue from foreign customers.

Cosan Limited

Notes to the consolidated financial statement (Continued)

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais, except otherwise stated)

29.	Segment information (Continued)

Concentration of customers

Raizen Energia

There are several clients in this segment, one of which represents more than 10% of the segment net sales during 2012, 2011 and 2010-- the SUCDEN Group (10%, 25% and 17%, respectively).

Raizen Combustíveis

In this segment there are no clients that represent more than 10% of the net sales in 2012 and 2011.

Rumo

In 2012, 55% of the segment net sales were generated from sales to the Raizen Energia segment (33% in 2011).

Cosan Other Businesses

No customers or specific groups represent 10% or more of sales in 2012, 2011 and 2010.

30.	Subsequent Events

Companhia de Gas de Sao Paulo - Comgás

On May 3, 2012, Cosan S.A. signed a memorandum of understanding with BG Group (British Gas) to acquire its interest of 60.1% on Companhia de Gas de Sao Paulo – Comgás for R$3.3 billion.

On May 28, 2012, Cosan S.A. signed the purchase and sale agreement in connection with this transaction. This acquisition will be effected upon regulatory approval.

Association with Camil Alimentos S.A. – Camil

On May 28, 2012, Cosan S.A.signed an association agreement with Arfei Comercio e Participações S.A. (“Arfei”) and GIF Codajas Participações S.A. (“GIF Codajas”), an investment fund managed by Gávea Invetimentos Ltda. whereby Cosan S.A. will contribute its sugar retail business in exchange for R$345 million cash and a 11.72% interest in Camil, this transaction will be effected upon the fulfilling of certain contractual conditions.

Item 3

Consolidated Financial Statements

Cosan S.A. Indústria e Comércio

March 31, 2012 and 2011

COSAN S.A. INDÚSTRIA E COMÉRCIO

Consolidated financial statements

March 31, 2012 and 2011

Contents

Report of Independent Auditors	3
Consolidated statements of financial position	4
Consolidated income statements	6
Consolidated statements of changes in equity	7
Consolidated statements of comprehensive income	8
Consolidated statements of cash flows	9
Consolidated statements of value added	11
Notes to the consolidated financial statements	12

A free translation from Portuguese into English of Independent Auditor´s Report

REPORT OF INDEPENDENT AUDITORS ON THE CONSOLIDATED FINANCIAL STATEMENTS

The Board of Directors and Shareholders of

Cosan S.A. Indústria a Comércio

São Paulo – SP

We have audited the accompanying individual and consolidated financial statements of Cosan S.A. Indústria e Comércio, identified as Parent Company and Consolidated, which comprise the financial position as at March 31, 2012, and the income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the individual financial statements in accordance with the accounting practices adopted in Brazil, and of the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as issued

by the International Accounting Standards Board (IASB), and in accordance and with the accounting practices adopted in Brazil, as well as for the internal controls management determined as necessary to enable the preparation of these financial statements free from material misstatement, regardless of whether due to fraud or error.

Independent auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Brazilian and International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit o

pinion.

Opinion on the individual financial statements

In our opinion, the individual financial statements referred to above present fairly, in all material respects, the consolidated financial position of Cosan S.A. Indústria e Comércio as at March 31, 2012, and the results 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 financial statements referred to above present fairly, in all material respects, the consolidated financial position of Cosan S.A. Indústria e Comércio as at March 31, 2012, and the consolidated results of its operations and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and the accounting practices adopted in Brazil.

Emphasis of matter

As described in Note 2, the individual financial statements were prepared in accordance with the accounting practices adopted in Brazil. In the case of Cosan S.A. Indústria e Comércio theses practices differ from IFRS, applicable to separate financial statements, only in relation to the valuation of investments in subsidiaries, associates and joint ventures under the equity method, while for IFRS purposes it would be cost of fair value. Our opinion is not modified due to this matter.

Other matters

Statements of valued added

We have also audited the individual and consolidated statements of value added for the year ended March 31, 2012, prepared under the responsibility of the Company´s management, and which presentation is required by the Brazilian Corporate Law for public companies, and as supplemental information by IFRS, which do not require the presentation of the statement of value added. These statements have been subject to the same audit procedures previously described and, in our opinion, are fairly presented, in all material respects, in relation to the financial statements as a whole.

São Paulo, Brazil, May 30, 2012

ERNST & YOUNG TERCO

Auditores Independentes S.S.

Luiz Carlos Nannini

Accountant CRC 1SP171638/O-7

Antonio C. M. Lage

Accountant CRC 1MG077995/O-1-S-SP

COSAN S.A. INDÚSTRIA E COMÉRCIO

Statements of financial position

March 31, 2012 and 2011

(In thousands of Reais)

		Parent Company				Consolidated
	Note	2012		2011		2012		2011
Asset
Current
Cash and cash equivalents	3		316,539		372,318		1,616,169		1,254,070
Restricted cash	4		18,233		2,719		94,268		187,944
Accounts receivable	6		-		44,782		963,586		594,857
Derivatives	26		-		-		19,590		55,682
Inventories	7		-		92,571		748,150		670,331
Related parties	9		26,627		73,939		678,374		14,669
Recoverable taxes	8		33,777		105,134		325,096		374,991
Other financial assets	5		-		-		40,080		-
Dividends			243,790		-		861		-
Other Credits			25,795		74,001		228,961		309,710
			664,761		765,464		4,715,135		3,462,254

Non-current
Deferred Income tax and social contribution	17		-		-		543,024		116,986
Advances to suppliers			-		7,045		21,865		46,037
Related parties	9		712,276		71,233		753,153		91,954
Recoverable Taxes	8		-		4,622		111,856		55,066
Judicial deposits	18		206,633		17,574		509,235		218,371
Other financial assets	5		140,820		201,773		790,402		420,417
Other non-current assets			362,630		1,401		493,195		443,752
Equity method investments	11		11,660,289		8,290,188		419,029		304,142
Biological Assets	12		-		532,140		968,023		1,561,132
Property, plant and equipment	13		21,554		1,177,298		7,866,963		7,980,524
Intangible	14		83,667		366,471		4,932,255		3,445,674
			13,187,869		10,669,745		17,409,000		14,684,055

Total Assets			13,852,630		11,435,209		22,124,135		18,146,309

		Parent Company						Consolidated
	Note	2012			2011			2012			2011
Current
Current portion of long-term debt	15		-			110,526			537,135			916,400
Derivatives	26		-			-			9,611			132,289
Trade accounts payable			1,798			99,630			606,029			558,766
Salaries Payable			11,579			54,199			183,660			183,560
Taxes Payable	16		62,597			33,758			241,719			245,284
Dividends Payable			14,376			190,285			16,760			190,285
Related parties	9		113,783			29,001			175,030			41,163
Other current liabilities			62,727			44,183			307,994			189,629
			266,860			561,582			2,077,938			2,457,376
Non-current
Long-term debt	15		337,733			1,551,236			4,476,942			6,274,895
Taxes payable	16		670,463			88,717			1,202,624			639,071
Provision for judicial demands	18		356,259			78,142			1,051,677			666,282
Related Parties	9		1,906,539			2,401,518			389,718			4,444
Pension	27		-			-			37,312			24,380
Deferred Income taxes	17		1,076,506			247,351			2,443,430			912,618
Other non-current liabilities			86,477			47,802			828,120			382,897
			4,433,977			4,414,766			10,429,823			8,904,587

Equity	20
Common Stock			4,691,822			4,691,822			4,691,822			4,691,822
Capital reserve			(67,663	)		(19,405	)		(67,663	)		(19,405	)
Accumulated Earnings			690,530			537,468			690,530			537,468
Equity attributable to owners of the Company			3,837,104			1,248,976			3,837,104			1,248,976
Equity attributable to non-controlling interests			9,151,793			6,458,861			9,151,793			6,458,861
Total Equity			-			-			464,581			325,485
Total Liabilities and equity			9,151,793			6,458,861			9,616,374			6,784,346
Equity			13,852,630			11,435,209			22,124,135			18,146,309

See accompanying notes to consolidated financial statements.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Income statement

Years ended March 31,2012 and 2011

(In thousand of Reais)

		Parent Company						Consolidated
	Note	2012			2011			2012			2011
Net sales	22		1,296			2,104,078			24,096,881			18,063,480
Cost of goods sold	23		(2,410	)		(1,499,465	)		(21,465,009	)		(15,150,079	)
Gross Profit			(1,114	)		604,613			2,631,872			2,913,401

Operational income /(expenses)
Selling	23		-			(159,075	)		(1,136,286	)		(1,026,000	)
General and administrative	23		(99,560	)		(263,486	)		(641,894	)		(541,002	)
Other, net	25		(62,614	)		(47,943	)		145,550			(33,828	)
Gain of formation of the JVs	21		22,661			-			3,196,632			-
			(139,513	)		(470,504	)		1,564,002			(1,600,830	)
Income before financial results, equity income of associates and income taxes			(140,627	)		134,109			4,195,874			1,312,571

Equity income of associates	11		3,154,846			500,422			33,268			25,187
Financial results, net	24		(619,378	)		279,827			(474,140	)		(146,688	)
			2,535,468			780,249			(440,872	)		(121,501	)
Income before income tax			2,394,841			914,358			3,755,002			1,191,070

Income Taxes
Current	17		2,429			(2,429	)		(147,454	)		(85,437	)
Deferred	17		208,564			(140,364	)		(962,758	)		(329,071	)

Net income for the year			2,605,834			771,565			2,644,790			776,562

Net income attributable to non-controlling interests			-			-			(38,956	)		(4,997	)
Net income attributable to Cosan			2,605,834			771,565			2,605,834			771,565

Earnings per share	20
Basic			6,43			1,90			6,43			1,90
Diluted			6,34			1,90			6,34			1,90

See accompanying notes to consolidated financial statements.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Consolidated statement of changes in equity

Years ended March 31, 2012, 2011 and 2010

(In Thousands of Reais)

						Capital Reserve						Profit Reserve
	Common Stock		Treasury share			Share based compensation			Other components of equity			Legal		Retained Earnings			Unrealized Earnings		Accumulated earning (losses)			Total			Non-controlling interest			Total Equity
March 31, 2011		4,691,822		(19,405	)		660,743			(123,275	)		63,119		1,185,857			-		-			6,458,861			325,485			6,784,346
Hedge accounting		-		-			-			53,140			-		-			-		-			53,140			-			53,140
Hedge accounting – reversal of OCI upon formation of the JVs		-		-			-			104,272			-		-			-		-			104,272			-			104,272
Current translation adjustment - CTA		-		-			-			7,415			-		-			-		-			7,415			-			7,415
Pension		-		-			-			(23,689	)		-		-			-		-			(23,689	)		-			(23,689	)
Reflection Effect (subsidiaries)		-		-			4,323			-			-		-			-		-			4,323			6,885			11,208
Share based compensation		-		-			10,800			-			-		-			-		-			10,800			-			10,800
Change in the non-controlling interest		-		-			-			-			-		-			-		-			-			9,036			9,036
Treasury Shares		-		(48,258	)		-			-			-		-			-		-			(48,258	)		-			(48,258	)
Net Income		-		-			-			-			-		-			-		2,605,834			2,605,834			38,956			2,644,790
Reflection effect of corporate restructuring in the group Rumo		-		-			(3,199	)		-			-		-			-		-			(3,199	)		79,070			75,871
Effect of dividends capitalization in subsidiaries		-		-			-			-			-		(958	)		-		-			(958	)		6,195			5,237
Dividends		-		-			-			-			-		(16,748	)		-		-			(16,748	)		(1,046	)		(17,794	)
Establishment of Legal Reserve		-		-			-			-			130,292		-			-		(130,292	)		-			-			-
Establishment of Reserves		-		-			-			-			-		-			2,475,542		(2,475,542	)		-			-			-
March 31, 2012		4,691,822		(67,663	)		672,667			17,863			193,411		1,168,151			2,475,542		-			9,151,793			464,581			9,616,374

						Capital Reserve						Profit Reserve
	Common Stock		Treasury share			Share based compensation			Other components of equity			Legal		Retained Earnings		Accumulated earning (losses)			Total			Non-controlling interest			Total Equity
March 31, 2010		4,687,826		(4,186	)		452,217			39,112			24,541		719,548		-			5,919,058			63,119			5,982,177
Hedge accounting		-		-			-			(143,298	)		-		-		-			(143,298	)		-			(143,298	)
Current translation adjustment - CTA		-		-			-			346			-		-		-			346			-			346
Pension		-		-			-			(19,435	)		-		-		-			(19,435	)		-			(19,435	)
Capital increase resulting from the exercise of warrants		1		-			-			-			-		-		-			1			-			1
Exercise of stock option		3,995		-			-			-			-		-		-			3,995			-			3,995
Issuance of subsidiary shares to non-controlling interest		-		-			206,404			-			-		-		-			206,404			193,596			400,000
Logispot acquisition		-		-			-			-			-		-		-			-			64,277			64,277
Treasury Shares		-		(15,219	)		-			-			-		-		-			(15,219	)		-			(15,219	)
Effect without placing shares in subsidiary		-		-			(839	)		-			-		-		-			(839	)		(504	)		(1,343	)
Share based compensation		-		-			2,961			-			-		-		-			2,961			-			2,961
Net Income		-		-			-			-			-		-		771,565			771,565			4,997			776,562
Dividends that exceed minimum mandatory		-		-			-			-			-		-83,431		-			-83,431			-			-83,431
Dividends		-		-			-			-			-		-		-183,247			-183,247			-			-183,247
Establishment of Legal Reserve		-		-			-			-			38,578		-		(38,578	)		-			-			-
Establishment of Reserves		-		-			-			-			-		549,740		(549,740	)		-			-			-
March 31, 2011		4,691,822		(19,405	)		660,743			(123,275	)		63,119		1,185,857		-			6,458,861			325,485			6,784,346

COSAN S.A. INDÚSTRIA E COMÉRCIO

Consolidated statement of comprehensive income

Years ended March 31, 2012, 2011 and 2010

(In thousands of Reais)

	2012			2011

Net Income		2,644,790			776,562

Other comprehensive income (loss)
Exchange differences on translation of foreign operations - CTA		7,415			346
Net movement on cash flow hedge		238,503			(217,118	)
Actuarial gains and losses defined benefit plans		(35,893	)		(29,447	)
Income tax effects		(68,887	)		83,832
		141,138			(162,387	)
Other comprehensive income for the year, net of tax
Total Comprehensive Income for the year, net of tax		2,785,928			614,175

Attributed to:
Owners of the Company		2,746,972			609,178
Non-controlling interests		38,956			4,997

See accompanying notes to consolidated financial statements.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Cosan S.A. Indústria e Comércio

Consolidated statements of cash flows

Years ended March 31, 2012, 2011 and 2010

(In thousand of Reais)

	Parent Company						Consolidated
	2012			2011			2012			2011
Operating activities
Net income		2,605,834			771,565			2,605,834			771,565
Non-cash adjustment to reconcile profit before tax to net cash flows from operating activities
Depreciation and Amortization		3,082			79,190			1,142,780			1.359.000
Biological asset		-			92,497			(60,093	)		(381.894	)
Equity income		(3,154,846	)		(500,422	)		(33,268	)		(25,187	)
Gain on disposal of property, plant and equipment		48			(1,069	)		(93,892	)		(35,295	)
Share based compensation expenses		10,800			2,961			10,800			2,961
Deferred income taxes		(208,564	)		140,364			962,758			329,071
Non-controlling interests		-			-			38,956			4,997
Income from the formation of the JVs		69,476			-			(3,098,494	)		-
Interest, monetary and exchange variations, net		104,586			(2,568	)		635,133			238,482
Others		(14,658	)		(20,855	)		(5,709	)		4,584
		(584,242	)		561,663			2,104,805			2,268,284
Changes in Assets / Liabilities
Accounts receivable		(4,058	)		175,889			(361,147	)		164,693
Restricted cash		(21,440	)		42,253			79,452			(142,972	)
Inventories		628			(35,138	)		(186,775	)		84,581
Taxes recoverable		75,979			6,027			(17,126	)		(50,068	)
Advances to Suppliers		(18,245	)		24,634			(103,294	)		16,779
Accounts payable		14,442			(16,733	)		220,213			(32,361	)
Tax Payable		94,880			(7,803	)		886,283			75,639
Provision for judicial demands Legal proceedings		311,093			1,079			143,960			26,859
Salaries payable		8,938			5,440			108,177			36,224
related parties		658,825			(74,224	)		(751,679	)		(39,778	)
Derivatives		(274,364	)		18,060			(112,281	)		13,347
Other Assets and Liabilities, net		(9,681	)		(1,663	)		(49,132	)		(84,129	)
		836,997			137,821			(143,349	)		68,814

Net Cash Flow from Operating Activities		252,755			699,484			1,961,456			2,337,098

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Cosan S.A. Indústria e Comércio

Consolidated statements of cash flows

Years ended March 31, 2012, 2011 and 2010

(In thousand of Reais)

	Parent Company						Consolidated
	2012			2011			2012			2011
Investing Activities
Acquisitions , net of cash acquired		(85,861	)		(75,985	)		(72,930	)		(157,345	)
Acquisition of additional interest in subsidiary		(40,313	)		-			-			-
Cash contributed upon the formation of Raizen		-			-			(173,116	)		-
Received cash of incorporation the Cosan Fuel Distribution		21,198			-			-			-
Received Dividends		64,845			113,532			-			-
Additions to investments		(21,946	)		-			(42,328	)		-
Purchase of property, plant and equipment, software and other intangible assets		(5,538	)		(430,233	)		(1,584,542	)		(2,291,647	)
Sugar-cane planting and growing costs		-			(253,535	)		(551,974	)		(745,572	)
Proceeds from sale of property, plant and equipment		-			27,209			182,115			48,832
Net Cash Flow used Investing Activities		(67,615	)		(619,012	)		(2,242,775	)		(3,145,732	)

Financing Activities
Proceeds from long-term debt		-			744,860			2,166,743			2,719,522
Repayment of long-term debt		-			(1,333,722	)		1,843,352			(1,967,938	)
Capital increase		-			3,996			-			3,996
Cash proceeds from non-controlling interests		-			-			560,946			400,000
Treasury shares		(48,258	)		(15,219	)		(48,258	)		(15,219	)
Dividends paid		(192,661	)		(193,095	)		(192,661	)		(193,095	)
Related Parties		-			799,101			-			37,072
Net cash flows (used in) from financing activities		(240,919	)		5,921			643,418			984,338


Net increase in Cash or Equivalent Cash		(55,779	)		86,393			362,099			175,704

Cash and equivalent cash in the beginning of the period		372,318			285,925			1,254,070			1,078,366
Cash and equivalent cash in the end of the period		316,539			372,318			1,616,169			1,254,070

Supplemental disclosure of cash flow information
Income taxes paid		-			-			179,655			38,844
Financial interest expenses paid		-			153,536			304,611			450,051

See accompanying notes to consolidated financial statements

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

	Parent Company						Consolidated
	2012			2011			2012			2011
Revenues
Sales of services and products, net		1,341			2,245,101			25,351,658			19,783,250
Others operational revenues, net		8,436			6,093			305,929			61,473
Gain of formation of joint venture		22,661			-			3,196,632			-
Reversal (additions) of allowance for doubtful accounts		-			(202	)		(357	)		7,795
		32,438			2,250,992			28,853,862			19,852,518
Raw materials acquired from third parties
Cost of goods sold and services rendered		(2,410	)		(1,074,071	)		(20,155,600	)		(13,578,664	)
Materials, energy, third parties services, others		(118,422	)		(460,470	)		(1,264,302	)		(1,380,614	)
		(120,832	)		(1,534,541	)		(21,419,902	)		(14,959,278	)

Gross value added		(88,394	)		716,451			7,433,960			4,893,240
Retention
Depreciation and amortization		(1,897	)		(79,190	)		(1,142,780	)		(742,307	)
Net value added		(90,291	)		637,261			6,291,180			4,150,933

Value added received in transfer
Income from equity investments		3,154,846			500,422			33,268			25,187
Financial revenue		184,949			574,416			1,053,017			542,501
		3,339,795			1,074,838			1,086,285			567,688
Value added to be distributed		3,249,504			1,712,099			7,377,465			4,718,621

Distribution of value added
Salaries		41,478			263,081			846,278			901,062
Taxes and contributions		(198,773	)		283,816			2,208,137			2,134,280
Financial expenses		800,578			294,589			1,523,362			689,189

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

1.	Operations

Cosan S.A. Indústria e Comércio (“Cosan” or “the Company”) is a Brazilian Company with its shares traded on the São Paulo Stock Exchange (Bovespa – CSAN 3). Its registered office is located in the city of São Paulo, Brazil. Cosan Limited is the controlling shareholder of Cosan, holding a 62.07% interest therein as of March 31, 2012.

Cosan S.A.’s, through its subsidiaries and jointly controlled entities, primary activities are in the following business segments: (i) Sugar & Ethanol: the production of sugar and ethanol, as well as the energy cogeneration produced from sugar cane bagasse, through its joint venture named Raízen Energia Participações S.A. (“Raízen Energia”); (ii) fuel distribution through its joint venture named Raízen Combustíveis S.A. (“Raízen Combustíveis”); (iii) Logistics services including transportation, port lifting and storage of sugar, through its subsidiary Novo Rumo Logística S.A. (Rumo); (iv) Production and distribution of lubricants licensed by Mobil trademark and, (v) since July 1, 2011, the activity of purchase and sale of sugar in the retail segment, which was performed by Raízen Energia was acquired by the Company and allocated to a new segment named “Cosan Alimentos”.

On June 1st 2011, the Company announced, jointly with Royal Dutch Shell ("Shell"), the formation of two entities under common control ("joint ventures" or “JVs”): (i) Raizen Combustíveis, in the fuel distribution segment, and (ii) Raizen Energia, in the segment of production and trade of sugar, ethanol and energy cogeneration. Cosan S.A. and Shell share control of the two entities, with each company holding 50% of the economic control. Cosan recorded its investments in the joint ventures through proportionate consolidation.

Cosan contributed with its sugar, ethanol, cogeneration and fuel distribution business in the formation of the joint ventures. Shell contributed its fuel distribution business in Brazil and interests in two entities involved in activities related to research and development of second generation ethanol (Iogen and Codexis), the license to use the Shell brand in the amount of R$ 533 million and a cash contribution of approximately R$ 1.8 billion over a period of 2 years. The accounting effects arising from the formation of Raizen Combustíveis and Raizen Energia are presented in Note 21, the financial position and the operational profits consolidated in the Company for subsequent periods of the JV’s formation are not necessarily comparable to pre-formation amounts.

The logistics of commodities and lubricants distribution business, together with the investment in Radar Propriedades Agrícolas S.A. ("Radar") were not contributed to the joint ventures.

2.	Summary of significant accounting policies

2.1.	Basis of Preparation

The consolidated financial statements were prepared and presented in accordance with the accounting policies adopted in Brazil, which include the rules of the Securities Commission (CVM) and the pronouncements of the Accounting Pronouncements Committee (CPC), which are in accordance with the international accounting standards issued by the IASB.

The financial statements have been prepared in accordance with accounting practices adopted in Brazil. These practices differ from IFRS, apply to separate financial statements, only in relation to the valuation of investments in subsidiaries, associates and jointly controlled by the equity method, whereas under IFRS would cost or fair value.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

These consolidated financial statements were authorized for issue by the Audit Committee on May 22, 2012.

In accordance with the presentation adopted in the current year, the comparative balance of deferred income taxes and social contribution as of March 31, 2011, totaling R$598,348, before presented separately in the consolidated financial statement, was reclassified to offset the balance of deferred income taxes and social contribution.

a)	Basis of preparation

These individual and consolidated financial statements were prepared on a historical cost basis, except for derivative financial instruments and biological assets that have been measured at fair value.

b)	Functional and presentation currency

There financial statements, consolidated and individual, are presented in Real, which is the Company´s functional currency. The financial statements of each subsidiary included in the consolidation of the Company and the ones used as the basis for valuation of investments by the equity method are prepared based pm the functional currency of each company. For subsidiaries located abroad, their assets and liabilities were converted to Real exchange rate by year-end and the results were calculated by the average monthly rate during exercise. The effects of conversion are recorded in shareholders’ equity of these subsidiaries.

c)	Significant accounting judgments, estimates and assumptions

The preparation of the Company’s consolidated and individual financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities at the end of the reporting period. Such estimates and assumptions are reviewed on a continuous basis and changes are recognized in the period in which the estimates are revised and in any future periods affected.

Deferred income taxes and social contribution

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Biological assets

Intangible assets and property, plant and equipment (“P, P&E”) including goodwill

The accounting treatment of intangible assets and P P&E includes estimation to determine the useful life period for purposes to calculate the depreciation and amortization, as well as fair value at the date of acquisition, in particular for assets acquired in business combinations and the formation of JVs.

The company annually performs an analysis of recoverable value of cash-generating units in order to identify a possible devaluation in goodwill and, eventually, in property, plant and equipment.

The determination of the recoverable amount of the cash-generating unit which the goodwill are attributed, includes the use of assumptions and estimates and requires complex level of judgment. For more details about the assumptions used, see note 14

Share based payments

Pension benefits

Fair value measurement of contingent consideration

Contingent consideration, resulting from business combinations, is valued at fair value at the acquisition date.

Fair value of financial instruments

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

including the discounted cash flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. For further details on financial instruments refer to Note 26.

2.2	Basis of consolidation

The consolidated financial statement includes information from Cosan, its subsidiaries and jointly controlled entities for 2012 and 2011. The Subsidiaries and jointly controlled subsidiaries are listed below:

	2012									2011
	Direct			Indirect			Total			Direct			Indirect			Total
Subsidiaries
Administração de Participações Aguassanta Ltda.		91.50	%		-			91.50	%		91.50	%		-			91.50	%
Bioinvestments Negócios e Participações S.A.		-			100.00	%		100.00	%		-			91.50	%		91.50	%
Vale da Ponte Alta S.A.		-			100.00	%		100.00	%		-			91.50	%		91.50	%
Águas da Ponte Alta S.A.		-			100.00	%		100.00	%		-			91.50	%		91.50	%
Proud Participações S.A.		100.00	%		-			100.00	%		99.90	%		-			99.90	%
Cosan Distribuidora de Combustíveis Ltda.		-			-			-			99.90	%		-			99.90	%
Cosan Overseas Limited		100.00	%		-			100.00	%		100.00	%		-			100.00	%
Pasadena Empreendimentos e Participações S.A.		100.00	%		-			100.00	%		100.00	%		-			100.00	%
Cosan Cayman Finance Limited		100.00	%		-			100.00	%		100.00	%		-			100.00	%
Cosan Cayman II Limited		100.00	%		-			100.00	%		-			-			-
Cosan Lubrificantes e Especialidades S.A. (anteriormente denominada Cosan Combustíveis e Lubrificantes S.A.)		100.00	%		-			100.00	%		100.00	%		-			100.00	%
CCL Cayman Finance Limited		-			100.00	%		100.00	%		-			100.00	%		100.00	%
Copsapar Participações S.A.		90.00	%		-			90.00	%		90.00	%		-			90.00	%
Novo Rumo Logística S.A.		28.80	%		64.10	%		92.90	%		28.80	%		64.10	%		92.90	%
Rumo Logística S.A.		-			-			-			-			69.70	%		69.70	%
Handson Participações S.A.		100.00	%		-			100.00	%		-			-			-
Docelar Alimentos e Bebidas S.A.		33.00	%		66.90	%		99.90	%		99.90	%		-			99.90	%
Cosan Operadora Portuária S.A.		-			69.70	%		69.70	%		-			69.70	%		69.70	%
Teaçú Armazéns Gerais S.A.		-			-			-			-			69.70	%		69.70	%
Logispot Armazéns Gerais S.A.		-			35.50	%		35.50	%		-			35.50	%		35.50	%
Stallion S.A.		-			100.00	%		100.00	%		-			-			-
Jointly-controlled
Raízen S.A. (1)		50.00	%		-			50.00	%		-			-			-
Raízen Energia Participações S.A. (1)		50.00	%		-			50.00	%		-			-			-
Raízen Combustíveis S.A. (1)		50.00	%		-			50.00	%		-			-			-
IPUTI Empreendimentos e Participações S.A. (1)		50.00	%		-			50.00	%		-			-			-

(1)	Jointly-controlled with Shell

(2)	Represents voting and economic interest. Cosan S.A. holds 51% of the outstanding shares of Raízen Energia, and 49% of the outstanding shares of Raízen Combustíveis.

The subsidiaries are fully consolidated from the date of acquisition of control, and continue to be consolidated until the date that control ceases to exist. The financial statements of subsidiaries are prepared for the same disclosure period as that of the parent company, using consistent accounting policies. All balances held between the subsidiary companies and jointly controlled entities, income

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

and expenses and unrealized gains and losses derived from intercompany transactions are eliminated.

Any change in the ownership interest of a subsidiary that does not result in loss of control is accounted for as an equity transaction.

The financial statements of jointly controlled are prepared for the same period the company's disclosure.

Adjustments are made where necessary to align with the accounting policies adopted by the Company.

2.3	Summary of significant accounting practices

a)	Revenue recognition

Revenues from the sale of products or goods are recognized when the entity transfers to the buyer the significant risks and rewards incidental to ownership of the goods and merchandise, and when it is probable that the economic benefits associated with the transaction will flow to the Company. The sales prices are fixed based on purchase orders or contracts. Goods or services paid in advance are recorded as deferred revenue in other liabilities group and recognized as revenue when the goods are delivered and the service provided.

b)	Foreign currency transactions

c)	Financial instruments – Recognition initial and subsequent measurement

(i) Financial assets

Initial recognition and measurement

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Financial assets include cash and cash equivalents, restricted cash, accounts receivable, other receivables and derivative financial instruments.

Subsequent measurement

The subsequent measurement of financial assets depends on their classification, which can be as follows:

Financial assets at fair value through profit or loss

Loans and receivables

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate method (EIR), less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs. Amortization is included in finance income in the income statement.

Held-to-maturity

Financial assets available for sale

Derecognition

A financial asset is derecognized when:

·	The rights to receive cash flows from the asset have expired; and

·	The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the cash flows received without material delay to a third party under a pass-through arrangement; and either (a) the Company transfers substantially all the risks and rewards

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

of the asset, or (b) the Company neither transfers nor retained substantially all the risks and rewards of the asset, but transfers control of the asset.

Impairment of financial assets

(ii) Financial liabilities

Initial recognition and measurement

All financial liabilities are recognized initially at fair value and in the case of loans and borrowings, carried at amortized cost.

The Company’s financial liabilities include payables to suppliers and other payables, loans and borrowings and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification as follows:

Financial liabilities at fair value through profit or loss

Loans and borrowings

After initial recognition, loans and borrowings are subject to interest subsequently measured at amortized cost, using the method of effective interest rate. Gains and losses are recognized in the income statement at the moment of the liability write-off, as well as during the process of amortization by the method of effective interest rate.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

(iii) Offsetting of financial instruments

(iv) Fair value of financial instruments

An analysis of fair values of financial instruments and further details as to how they are measured are provided in Note 26.

(v) Derivative financial instruments and hedge accounting

Initial recognition and subsequent measurement

For the purpose of hedge accounting, hedges are classified as:

·	Fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment or identified part of such asset, liability or firm commitment, that is attributable to a particular risk and could affecting the income;

·	Cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognized firm commitment; and

·	Hedges of a net investment in a foreign operation.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated.

Hedges which meet the strict criteria for hedge accounting are accounted for as follows:

Cash flow hedges

Fair value hedge and hedges of a net investment

The Company does not hold derivative financial instruments designated in these types of operations.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

d)	Cash and cash equivalents and restricted cash

e)	Accounts receivable

Refer to receivables from customers and are reduced, by provision, to their probable realizable value.

f)	Inventories

Inventories are recorded at average cost of acquisition or production, not to exceed the net realizable value.

g)	Equity method investments

When there is loss of significant influence over the associate, the Company evaluates and recognizes the investment at fair value at that moment.

The unrealized gains and losses resulting from transactions between the Company and associates are eliminated in accordance with the participation held in the associate.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

h)	Interest in joint ventures

The Company has an interest in joint ventures, which are a jointly controlled entities, whereby the venturers have a contractual arrangement that establishes joint control over the economic activities of the entity. The agreement requires unanimous agreement for financial and operating decisions among the venturers. The Company recognizes its interest in the joint ventures using the proportionate consolidation method. The Company combines its proportionate share of each of the assets, liabilities, income and expenses of the joint ventures with similar items, line by line, in its consolidated financial statements. The financial statements of the joint ventures are prepared for the same reporting period as the Company.

i)	Biological assets

The Company’s own land on which the biological asset is produced is accounted for in accordance with IAS 16 - Property, Plant and Equipment.

j)	Property, plant and equipment (“P, P&E”)

Items of P, P&E are measured at historical cost of acquisition or construction, less accumulated depreciation and impairment when applicable.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Depreciation is calculated on a straight line method based on useful life of each asset, following the annual depreciation rates shown below:

Buildings and improvements		4%
Machinery and equipment		3% to 10%
Agricultural machinery		10%
Industrial equipment and facilities		10%
Furniture and fixtures		10%
Computer equipment		20%
Vehicles		10% to 20%
Locomotives		3.3%
Rail cars		2.9%
Boats		20%
Aircrafts		10%

Leases

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date.

Operating lease payments are recognized as an operating expense in the income statement on a straight-line basis over the lease term.

l)	Intangibles

(i)

Goodwill

The goodwill is maintained at its cost, net of any impairment losses, if applicable. Goodwill is tested annually for impairment losses. For testing purposes the recoverable amount, the acquired goodwill in a business combination is, from the acquisition date, allocated to each cash-generating units of the Company which are expected to be benefited by the combination, independently of other assets or liabilities of the acquiree to be assigned to those units.

(ii)	Intangible assets with finite lives

Intangible assets with defined useful lives are measured at cost, net of accumulated amortization and accumulated impairment losses.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

m)	Impairment

Regardless of the existence of indicators of loss of value, goodwill and intangible assets with indefinite useful lives are tested for impairment at least once a year.

When the book value of an asset exceeds its recoverable amount, the impairment loss is recognized as an operating expense in the income statement.

n)	Borrowing costs

Borrowing costs related to the acquisition, construction or production of an asset that necessarily requires a substantial period of time to be concluded for its intended use or sale are capitalized as part of the cost of the respective assets. Borrowing costs include interest and other costs incurred by an entity on the loan.

o)	Provisions

p)	Pension and other employment benefits

i)	Defined benefit pension plan

ii)	Defined contribution pension plan

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

iii)	Share-based payments

Employees (including senior executives) of Cosan S.A. receive regular compensation in the form of equity investments for services rendered (equity-settled transactions). The cost of equity-settled transactions is recognized, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled. A companhia uses the binomial model to estimate the fair value of the options at the date of the grant.

q)	Treasury shares

Represented by the own shares re-acquired on the market and held in treasury, in accordance with the Repurchase Plan previously approved.

Taxes

(i)	Income taxes

Taxation on income comprises the income tax and social contribution. Income tax is calculated on taxable income at a rate of 15%, plus an additional 10% for profits that exceed $ 240 in 12 months, while the social contribution is calculated at the rate of 9% on taxable income recognized on an accrual basis. Therefore the Company is subject to a theoretical rate of income tax equivalent to 34%.

Income taxes are comprised of income tax and social contribution at a combined rate of 34%.

Deferred Income and social contribution taxes on tax losses, negative basis of social contribution and temporary differences are presented in, noncurrent, assets and / or liabilities, calculated based on the rates set out upon its completion and reviewed annually. Deferred tax assets are recognized only to the extent that it is probable that there will be taxable for which the temporary differences can be utilized.

Anticipations or countervailable values are demonstrated as current and noncurrent, according to their expected realization.

(ii)	Indirect taxes

Net revenues is recognized net of discounts and sales taxes (IPI, ICMS, PIS and COFINS).

s)	Business combinations

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

is an excess of the acquirer's interest in the fair value of assets and liabilities acquired over the cost, the difference is recognized immediately in the income statement.

t)	Asset retirement obligations

The retirement obligations of its jointly-controlled entities relate to the required obligation to remove underground fuel tanks upon retirement.

The initial measurement of which is recognized as a liability discounted to present values and subsequently accreted through earnings. An asset retirement cost equal to the initial estimated liability is capitalized as part of the related asset’s carrying value and depreciated over the asset’s useful life.

u)	Environmental matters

2.4 New IFRS and IFRIC Interpretations Committee (Financial Reporting Interpretations of IASB) applicable to the consolidated financial statements

New accounting pronouncements of the IASB and IFRIC interpretations have been published and / or reviewed as presented below:

IFRS 9 Financial Instruments: Classification and Measurement

Classification and measurement - It reflects the first phase of the IASBs work on the replacement of IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 uses a simplified approach to determine whether a financial asset is measured at amortized cost or fair value, based on the manner in which an entity manages its financial instruments (business model) and the typical contractual cash flow of financial assets. The standard also requires the adoption of only one method for determining losses in recoverable value of assets. The standard is effective for annual periods beginning on or after 1 January 2013. Management is still evaluating the impact on its financial position or performance in relation to IFRS 9.

IFRS 10 Consolidated Financial Statements

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

IFRS 11 Joint Arrangements

It eliminates the option to proportionate consolidate these jointly controlled entities. It is effective for annual periods beginning on or after January 1, 2013. Early adoption is permitted.

IFRS 12 Disclosure of Involvement with Other Entities

IFRS 13 Fair Value Measurement

IFRS 13 establishes new requirements on how to measure fair value and the related disclosures for IFRS and US generally accepted accounting principles. The standard is effective for annual periods beginning on or after 1 January 2013. Earlier application is permitted. Management is still evaluating the impact on its financial position or performance from the adoption of IFRS 13.

IAS 28 Investments in Associates and Joint Ventures (revised in 2011)

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

There are no other pronouncements issued and yet to be adopted that may have a significant impact in the Company´s operations and financial position

3.	Cash and Equivalent Cash

	Parent Company				Consolidated
	2012		2011		2012		2011
Cash		177		146		3,027		289
Bank accounts		13		11,971		124,804		64,437
Value awaiting for closing exchange		-		5,952		11,477		78,353
Highly liquid Investments		316,349		354,249		1,476,861		1,110,991
		316,539		372,318		1,616,169		1,254,070

On March 31, 2012, the Company had unused lines of credit with BNDES, at the amount of R$ 420,414 (R$1,064,930 in March 31,2011). The use of these lines of credit depends upon fulfillment of certain contractual conditions.

4.	Restricted Cash

	Parent Company				Consolidated
	2012		2011		2012		2011

Restricted financial investments		18,233		-		48,292		61,072
Deposits in connection with derivative transactions		-		2,719		45,976		126,872
		18,233		2,719		94,268		187,944

Deposits in connection with derivative transactions relate to margin calls by counterparties in derivative transactions.

5.	Other financial assets

	Parent Company				Consolidated
	2012		2011		2012		2011

Fair value of Radar option (1)		140,820		162,961		140,820		162,961
Brazilian Treasury certificates – CTN (2)		-		38,812		149,438		257,456
ExxonMobil financial asset - reimbursement (3)		-		-		540,224		-
		140,820		201,773		830,482		420,417
Current				-		40,080		-
Non current		140,820		201,773		790,402		420,417

(1)

The Cosan S.A. holds warrants on Radar, exercisable at any time up to maturity (August 2018). Such warrants will allow Cosan S.A. to purchase additional shares at R$41.67 per share adjusted for inflation (IPCA), equivalent to 20% of the total shares issued by Radar as of the date of exercise. The exercise of warrants will not change the classification of this investment as an equity investment. The fair value of these warrants was calculated based on observable market data.

(2)

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

(3)

In June 28, 2011 the subsidiary Cosan Lubrificantes e Especialidades S.A., the successor entity Esso Brasileira de Petróleo Ltda. (“Essobrás”) proceeded with the consolidation of tax debts included in the tax recovery program ("Refis IV") the amount of R$ 540,224, as determined by ExxonMobil Brasil Holdings BV, the former owner is contractually responsible for these liabilities. Therefore the Company recognized an obligation to pay taxes and a corresponding to a financial asset from ExxonMobil Brasil Holdings BV. the same amount.

6.	Accounts Receivable

The balances of accounts receivables as of March 31, 2012 and 2011 are composed as follows:

	Parent Company					Consolidated
	2012		2011			2012			2011
Domestic		-		45,790			902,407			678,498
Foreign		-		-			164,681			7,556
Allowance for doubtful accounts		-		(1,008	)		(103,502	)		(91,197	)
		-		44,782			963,586			594,857

The analysis of the maturity of the accounts receivable is as follows:

	Parent Company				Consolidated
	2012		2011		2012		2011

Current		-		44,048		764,826		555,826
Over Due:
Up to 30 days		-		48		100,339		21,097
From 31 to 60 days		-		1		16,535		4,317
From 61 to 90 days		-		229		8,476		553
More than 180 days		-		456		73,410		13,064

		-		44,782		963,586		594,857

Changes in the allowance for doubtful accounts are as follows:

	Parent Company			Consolidated
March 31, 2010		(806	)		(97,721	)
Provision		(308	)		(16,573	)
Reversal		106			18,238
Write-offs		-			6,130
Addition from business combination		-			(1,271	)
March 31, 2011		(1,008	)		(91,197	)
Addition		-			(28,003	)
Reversal		-			26,711
Write-offs		-			935
Addition from the formation of the JVs		1,008			(11,135	)
Addition from business combination		-			(813	)
March 31, 2012		-			(103,502	)

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

7.	Inventories

	Parent Company					Consolidated
	2012		2011			2012			2011
Finished Goods:
Sugar		-		9,559			87,110			77,673
Ethanol		-		18,080			101,994			42,840
Fuel		-		-			276,867			231,891
Lubrificants		-		-			112,492			94,743
Raw material		-		17,546			52,586			51,598
Goods in process		-		1,121			-			5,121
Spare parts and others		-		51,993			121,643			186,032
Provision for inventory realization obsolescence		-		(5,728	)		(4,542	)		(19,567	)
		-		92,571			748,150			670,331

Change in the provision for inventory realization and obsolescence is as follows:

	Parent Company			Consolidated
March 31, 2010		(6,783	)		(25,260	)
Addition		(2,681	)		(13,483	)
Reversal		3,736			19,176
March 31, 2011		(5,728	)		(19,567	)
Additions		-			(1,697	)
Effective Loss		-			5,173
Reversion		-			4,815
Effect of the formation of JV		5,728			6,734
March 31, 2012		-			(4,542	)

8.	Recoverable Taxes

	Parent Company				Consolidated
	2012		2011		2012		2011
Income tax		31,968		25,953		107,561		66,274
COFINS		-		61,478		63,727		121,474
PIS		-		13,426		18,614		27,338
ICMS - State VAT		-		7,713		194,818		151,161
IPI		-		976		43,039		47,741
Others		1,809		210		9,193		16,069
		33,777		109,756		436,952		430,057
Current		33,777		105,134		325,096		374,991
Non-current		-		4,622		111,856		55,066

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

9.	Related Parties

a)	Summary of the main balances and transactions with related parties:

	Consolidated
	2012		2011
Current Assets
Shell (i)		626,783		-
Raízen Energia (ii)		20,731		-
Grupo Rezende Barbosa (iii)		9,469		7,298
Vertical UK LLP (iv)		540		6,430
Vertical UK LLP (iv)		14,242		-
Others		6,609		941
Total Current asset		678,374		14,669

Non Current Assets
Shell (i)		335,317		-
Raízen Energia (ii)		214,885		-
Raízen Combustíveis (ii)		87,811		-
Group Rezende Barbosa (iii)		105,751		91,954
Others		9,389		-
Total Non-current asset		753,153		91,954

Non-Current Liabilities
Raízen Energia (ii)		76,257		-
Group Rezende Barbosa (iii)		12,577		37,664
Shell (i)		83,064		-
Raízen Combustíveis (ii)		321		-
Others		2,811		3,499
Total current liabilities		175,030		41,163

Current Liabilities
Shell (i)		379,626		-
Raízen Energia (ii)		6,387		-
Others		3,705		4,444
Total Non-current liabilities		389,718		4,444

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Sales of products/services
Vertical UK LLP	75,338	160,202
Others	441	39,963
	75,779	200,165
Purchase of goods/inputs
Grupo Rezende Barbosa	263,859	352,195
Vertical UK LLP	113,518	-
Shell Western Supply and Trading	7,032	-
	384,409	352,195
Land lease
Aguassanta	17,577	26,459
Radar	22,532	28,446
	40,109	54,905
Financial income / (expense)
Grupo Rezende Barbosa	2,502	233
Shell Brasil Holding B.V.	148,733	-
Others	242	512
	151,477	745

(i)

Shell

The short-term receivable is mainly comprised of (i) capital contribution receivable from Raízen Energia amounting R$ 489,856, (ii) and other receivables totaling R$ 136,927, represented by other reimbursements resulting from the formation of JVs.

The short term payable comprises mainly reimbursement tax credits of the legal entity contributed by Shell in the amount of R$ 77,631.

(ii)

Raízen Energia and Raízen Combustível

The balances with Raízen Energia and Raízen Combustível are consolidated proportionally at 50% considering the elimination of the portion related to the Company.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Non-current assets receivable from Raízen Energia and Raízen Combustíveis represent, basically, tax credits which will be reimbursed to the Company when effectively realized by the JVs.

(iii)

Rezende Barbosa

The Company has receivables from Rezende Barbosa which are guaranteed by shares issued by Cosan.

The jointly-controlled entity "Raízen Energia" has long-term agreement with Group Rezende Barbosa to supply sugar-cane. The prices paid are based on the ATR prices published by CONSECANA.

(iv)

Vertical UK LLP

The Company sells and buys ethanol from Vertical UK LLP (“Vertical”) in the normal course of business. Vertical is a Trading Company headquartered in Switzerland for which we have indirectly a 50% non-controlling interests.

(v)

Aguassanta

(vi)

Radar

Officers and directors compensation

The fixed and variable compensation of key people, including directors and board members are recorded, as follows:

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

	2012(*)	2011
Regular compensation	23,009	7,894
Stock option expense	10,800	2,961
Bonuses and other variable compensation	32,563	23,791
Total compensation recorded as expense	66,372	34,646

(*)Including the compensation of the key people of the jointly-controlled entities / JVs

At Cosan S.A.´s shareholder’ meeting held on July 29, 2011, a new stock compensation plan was approved, which until March 31, 2012 had granted 9,825,000 options (Note 28).

10.	Business combinations and acquisitions of non-controlling shareholders

a.	Sugar Retail Business

b.	Logispot Armazéns Gerais S.A. (‘Logispot”)

On March 14, 2011, Cosan, through its indirect subsidiary Rumo Logística S.A., purchased 874,226 common shares of Logispot, totaling R$ 48,888 cash which increased its participation in the common shares of Logispot from 14.28% to 51.00%, With this acquisition, Rumo acquired the control of Logispot.

Logispot is located in the city of Sumaré and is an important link between plants in the state of São Paulo and Santos Port. The terminal is accessed by all railroads that cross the state of São Paulo and is beside the Anhanguera, Bandeirantes and Dom Pedro highways. The site has a static capacity of 400,000 tons, a structure to receive and send both through roads, as well as by rail, but the potential to carry a composition of 120 railcars of 90 tons per day (unaudited information).

The fair value at the acquisition date of the consideration transferred totaled R$ 68,880, which consisted of the following:

Cash			48,888
Fair value of 14.28% of Cosan in Logispot immediately before the Business combination			19,992
Total			68,880

The estimated fair value of assets acquired and liabilities assumed at the date of acquisition of Logispot were as follows:

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Description
Trade accounts receivable	1,297
Others assets	677
Property, plant and equipment	114,184
Loans and financing	(13,391	)
Deferred income and social contribution taxes	(28,879	)
Others liabilities	(13,551	)
Non-controlling interest (1)	(30,120	)
Net assets acquired	30,217
Consideration transferred, net of cash acquired	67,745
Goodwill	37,528

The purchase price allocation was completed by the Management, and based on the fair value of assets acquired and liabilities assumed and goodwill of the operation was allocated the segment Rumo.

The Company obtained an independent evaluation of its fixed assets, intangible assets and interests of noncontrolling shareholders. The allocation of the initial purchase price was adjusted primarily as a result of improvements in the Company's assumptions related to fixed assets and intangible. As a result of these changes, the goodwill, as described above, was modified as follows:

goodwill preliminary			2,370
Adjustments on the fair value of the P,P&E			104,454
Deferred income tax			(35,515)
Interests of non-controlling shareholders			(33,781)
Goodwill			37,528

c.	Cosan Araraquara Açúcar e Álcool Ltda. (“Usina Zanin”)

On February 18, 2011, the jointly-controlled entity Raízen Energia (formerly known as Cosan AA) acquired 100% of the share capital of Usina Zanin for a total amount of $ 90,000.

The provisional allocation of the purchase price on March 31, 2011 appointed a goodwill of R$69,402. As the evaluation report of assets and liabilities performed by independent research company, issued in May 2012, the final goodwill determined in the acquisition totaled R $ 98,000 due to revision of gains from certain assets, property and equipment and the cancellation of the project greenfield (Usina da Prata).

The estimated fair value of assets acquired and liabilities assumed at date of acquisition of Usina Zanin, was as follows:

Description
Inventories	3,813
Biological assets	83,890
Property, plant and equipment	223,893
Intangible assets	10
Loans and Long-term debt	(278,511	)
Provision for judicial demands	(23,008	)
Deferred income and social contribution taxes	29,921
Others liabilities	(49,081	)
Net assets acquired	(9,073	)
Consideration transferred, net of cash acquired	88,927
Goodwill	98,000

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

The purchase price allocation was concluded by the Management, and based on the fair value of acquired assets and liabilities assumed. Zanin was subsequently contributed to Raizen Energia upon the formation of JV.

The Company obtained an independent evaluation of its fixed assets, intangible assets and interests of minority shareholders. The allocation of the initial purchase price was adjusted primarily as a result of improvements in the Company's assumptions relating to fixed and intangible assets. As a result of these changes, the goodwill, as described above, was modified as follows:

Preliminary goodwill	69,402
Fair value adjustments of fixed assets and biological assets	36,805
Other fair value adjustments	6,524
Deferred income tax	(14,731	)
Goodwill	98,000

The Usina Zanin was contributed to Raízen Energia in the formation of JV and the business combination is registered in that jointly controlled.

d.	Additional information (unaudited)

If the entity acquired during 2012 had been included in the income statement since the beginning of the year the impacts on the revenue would be irrelevant

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

11.	Equity method investments

a)	Parent company

								Investments				Equity income of associates
Subsidiaries and jointly-controlled entities	Number of shares of the invested		Number of shares / shares the investor		Percentage of interest			2012		2011		2012			2011
Administração de Participações Aguassanta S.A.		4		3		91.50	%		158,685		138,193		8,026			7,475
Copsapar Participações S.A.		190,797,424		171,717,680		90.00	%		540,044		498,102		52,684			57,430
Cosan Cayman Limited		-		-		-			-		376,311		(18,159	)		(398	)
Cosan Cayman Finance Limited		1		1		100.00	%		735,147		651,480		121,425			(690	)
Cosan Cayman II Limited		451		232		51.44	%		1,081		-		86,896			-
Cosan Distribuidora de Combustíveis S.A.		-		-		-			-		-		2,247,978			-
Cosan Finance Limited		1		1		100.00	%		-		17,489		-			(4,171	)
Cosan International Universal Corporation		2		2		100.00	%		-		1,304		-			761
Cosan Lubrificantes e Especialidades S.A.		431,480		431,474		100.00	%		1,103,810		1,933,302		76,202			114,240
Handson Participações S.A		85,860,500		85,860,500		100.00	%		150,108		-		64,247			-
Novo Rumo Logística S.A.		278,336,920		198,120,217		28.82	%		242,670		223,006		24,494			25,836
Proud Participações S.A.		53,236,531		53,236,528		100.00	%		210,683		53,236		8,600			-
Raízen Combustíveis S.A.		3,009,400,941		1,504,700,471		50.00	%		4,666,904		-		141,653			-
Raízen Energia Participações S.A.		1,068,073,826		534,036,913		50.00	%		3,522,684		-		59,266			-
Raízen Energia S.A.		-		-		-			-		2,946,111		235,058			203,197
Raízen S.A. Bioenergia		-		-		-			-		152,929		-			13,873
Raízen Tarumã S.A.		-		-		-			-		959,665		-			77,091
TEAS - Terminal Exportador de Álcool de Santos S.A.		-		-		-			-		40,088		-			967
Others		-		-		-			24,271		8,872		14,345			8,872
Associated
Radar Propriedades Agrícolas S.A.		21,148,989		4,001,167		18.92	%		283,259		260,757		22,514			28,658
Other investments		-		-		-			20,943		29,343		9,617			(32,719	)
									11,660,289		8,290,188		3,154,846			500,422
Changes in participation in direct and indirect subsidiaries

Changes on Investments:

March 31, 2011	8,290,188
Equity	3,154,846
Addition to investments	43,147
Addition from JVs formation	463,296
Dividends declared and interest on capital in subsidiary and jointly controlled entity (*)	(281,195	)
Others	(9,993	)
March 31, 2012	11,660,289

(*) There was a payment of R$64,845 million in this period.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

b)	Consolidated

								Investments				Equity
	Number of shares of the invested		Number of shares / shares the investor		Percentage of interest			2012		2011		2012			2011

Radar Propriedades Agrícolas S.A.		21,148,989		4,001,167		18.92	%		283,259		260,756		22,514			28,658
Codexis Inc		35,965,000		5,573,000		15.50	%		49,866		-		(1,086	)		-
Logum Logística S.A. ("Logum")		430,556,443		86,111,288		20.00	%		25,731		18,300		(4,796	)		-
Other Investments									60,173		25,086		16,636			(3,471	)
									419,029		304,142		33,268			25,187

Changes on Investments
March 31, 2010	260,814
Equity	25,187
Addition to investments	37,929
Change to subsidiary	(20,015	)
Other	227
March 31, 2011	304,142

Equity	33,268
Income from the formation of JV	38,114
Addition to investments	42,328
Other	1,177
March 31, 2012	419,029

March 31, 2012
	Asset		Liabilities		Equity		Result
Radar Propriedades Agrícolas S.A.		1,685,618		188,392		1,497,226		162,544
Codexis		247,663		60,552		187,111		(2,138	)
Logum		741,782		484,471		257,311		(28,670	)

March 31, 2011
	Asset		Liabilities		Equity		Result
Radar Propriedades Agrícolas S.A.		1,804,609		426,355		1,378,254		151,421
Logum		101,982		8,343		93,639		(4,829	)

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

12.	Biological assets

Changes in biological assets (sugarcane plants) are described below:

Balances at March 31, 2010	371,102		963,244
Change in fair value	145,428		381,894
Increase due to planting and growing costs	253,535		745,572
Harvested cane transferred to inventory	237,925		(616,693	)
Increase resulting from business combination	-		87,115
March 31, 2011	1,007,990		1,561,132
Asset contribution from subsidiaries	532.140		-
Change in the fair value	(523.140	)	-
Changes in fair value less estimated cost to sell			60,093
Increase due to planting and growing costs			551,974
Harvested cane transferred to inventory (a)			(401,592	)
Proportional consolidation impact due to the formation of JVs (50%) (b)			(803,584	)
March 31, 2012	-		968,023

(a)	R$19,047 of this amount was allocated in sugar and ethanol inventory as of march, 31 2012.

(b)

The Company has reflected this rollforward activity as “net” adjustment. This net adjustment would actually represent the de-consolidation of 100% of the biological assets of subsidiaries de-recognized, and the addition of 50% of the fair value of the biological assets of the JV’s then proportionally consolidated.

Sugarcane plants

Areas cultivated represent only sugarcane, without considering the land where these crops are found. The following assumptions were used to determine fair value using the discounted cash flow:

	2012		2011
Crop area (hectares) (1)		382,798		340,386
Expect productivity (tons of cane per hectare)		78.20		84.74
Total amount of recoverable sugar – ATR (kg)		137.27		138.54
Price kg ATR projected average (R$/kg)		0.4881		0.4228

(1)	The balances of biological assets are consolidated proportionally by 50% in the Company.

Historically, weather conditions have caused volatility in ethanol and sugar production, and consequently in our operating results because it cause damage to the annual harvest. Future climate conditions may reduce the amount of sugar and sugarcane that the Company will obtain in a particular season or in the sucrose content of sugarcane. Additionally, the Company’s business is subject to seasonality according to the growth cycle of sugarcane in the south-central region of Brazil. The period of annual harvest of sugarcane in South-Central region of Brazil begins in April / May and ends in November / December. This creates variations in stock, usually high in November to cover sales between crop (i.e. from December to April) and a degree of seasonality in gross profit from sales of

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

ethanol and sugar significantly lower in the last quarter of fiscal year. The seasonality and any reduction in the volume of sugar recovered could have a material adverse effect on our operating results and financial condition.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

13.	Property, plant and equipment

	Parent Company
Costs:	March 31, 2011			Additions			Write-offs			Transfers			Capital Addition on subsidiaries			March 31, 2012
Land and Rural Properties		240,330			-			-			-			(239,104	)		1,226
Buildings and Improvements		181,081			-			-			898			(172,902	)		9,077
Machinery, Equipment and Facilities		653,655			2			-			16,397			(665,349	)		4,705
Airplanes		13,395			-			-			-			-			13,395
Vessels and Vehicles		110,966			-			(206	)		-			(110,760	)		-
Furniture and Fixtures and Computer Equipment		40,008			15			-			2,478			(39,764	)		2,737
Construction in progress		200,830			5,520			-			(19,856	)		(180,992	)		5,502
Other		234,356			-			-			-			(234,356	)		-
Total		1,674,621			5,537			(206	)		(83	)		(1,643,227	)		36,642

Depreciation:
Land and Rural Properties		(36,000	)		(328	)		-			-			35,697			(631	)
Buildings and Improvements		(315,771	)		(285	)		-			-			315,142			(914	)
Machinery, Equipment and Facilities		(13,395	)		-			-			-			-			(13,395	)
Airplanes		(46,639	)		(7	)		159			-			46,487			-
Vessels and Vehicles		(19,235	)		(49	)		-			-			19,136			(148	)
Other		(66,283	)		-			-			-			66,283			-
Total		(497,323	)		(669	)		159			-			482,745			(15,088	)

		1,177,298			4,868			(47	)		(83	)		(1,160,481	)		21,554

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

	Consolidated
Costs:	March 31, 2011			Additions			Write-offs			Transfers			De-consolidation and JVs formation, net (a)			Business Combination			March 31, 2012
Land and Rural Properties		1,263,240			-			(40,011	)		15,965			384,561			(53,266	)		1,570,489
Buildings and Improvements		1,122,256			4,764			(24,559	)		89,661			(153,107	)		30,899			1,069,914
Machinery, Equipment and Facilities		4,980,432			49,056			(30,209	)		330,325			(69,256	)		14,197			5,274,545
Airplanes		30,903			4,839			(4,691	)		-			-			-			31,051
Wagons and locomotives		341,647			-			-			50,000			-			-			391,647
Vessels and Vehicles		323,042			3,046			(6,758	)		10,312			(26,703	)		167			303,106
Furniture and Fixtures and Computer Equipment		137,206			520			(21,012	)		16,114			(8,869	)		1,308			125,267
Construction in progress		1,367,712			980,855			(6,022	)		(782,761	)		(888,103	)		3,319			675,000
Repair and maintenance in machine and equipment		1,043,342			362,511			(747,891	)		-			(394,513	)		-			263,449
Others		4,782			13,077			(17,715	)		796			156,568			-			157,508
Total		10,614,562			1,418,668			(898,868	)		(269,588	)		(999,422	)		(3,376	)		9,861,976

Depreciation:
Buildings and Improvements		(287,620	)		(43,716	)		11,539			-			59,344			(2,457	)		(262,910	)
Machinery, Equipment and Facilities		(1,472,512	)		(288,990	)		19,506			14,968			346,824			(8,508	)		(1,388,712	)
Airplanes		(15,195	)		(1,839	)		860			-			-			-			(16,174	)
Wagons and locomotives		(6,128	)		(12,269	)		-			-			-			-			(18,397	)
Vessels and Vehicles		(150,146	)		(24,667	)		4,750			-			47,416			(114	)		(122,761	)
Furniture and Fixtures and Computer Equipment		(87,460	)		(11,297	)		18,750			-			(559	)		(736	)		(81,302	)
Repair and maintenance in machine and equipment		(611,859	)		(303,082	)		747,891			-			167,050			-			-
Others		(3,118	)		(6,942	)		9,297			-			(103,994	)		-			(104,757	)
Total		(2,634,038	)		(692,802	)		812,593			14,968			516,081			(11,815	)		(1,995,013	)

		7,980,524			725,866			(86,275	)		(254,620	)		(483,341	)		(15,191	)		7,866,963

(a)	The Company has reflected this rollforward activity as “net” adjustment. This net adjustment would actually represent the de-consolidation of 100% of the P,P&E of subsidiaries de-recognized, and the addition of 50% of the P,P&E of the JV’s then proportionally consolidated.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Capitalization of borrowing costs

During the year ended March 31, 2012, borrowing costs capitalized amounted to R$ 71,661 (R$ 70,543 during the year ended March 31, 2011). The weighted average interest rate, used for capitalization of interest on the balance of construction in progress, was 8.60% per year at 2012 (9.13% per year during the year ended March 31, 2011).

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

14.	Intangible assets

	Parent Company
Costs	March 31, 2011			Additions			Write-off			Transfers		Capital Increase in Subsidiaries			March 31, 2012
Software		50,182			-			-			83		(50,182	)		83
Trademarks		-			-			-			-		85,354			85,354
Goodwill		332,239			-			(193,633	)		-		(138,606	)		-
Others		17,603									-		(17,603	)		-
Total		400,024			-			(193,633	)		83		(121,037	)		85,437

Amortization
Software		(32,809	)		(2	)		-			-		32,809			(2	)
Trademarks					(1,768	)										(1,768	)
Others		(744	)		(643	)							1,387			-
Total		(33,553	)		(2,413	)		-			-		34,196			(1,770	)

		366,471			(2,413	)		(193,633	)		83		(86,841	)		83,667

	Consolidated
Costs	March 31, 2011			Additions			Write-off			Transfers			De-consolidated and JV’s formation, net (a)			Business Combination			March 31, 2012
Software license		98,063			849			(20	)		14,954			(6,992	)		116			106,970
Trademarks		429,671			-			(11,286	)		-			190,026			-			608,411
Goodwill		2,253,320			-			(193,633	)		-			836,601			35,967			2,932,255
Customer base		583,420			23,437			-			8,857			269,666			-			885,380
Leases		155,505			-			(232	)		-			(75,354	)		-			79,919
Distribution rights (g)		170,291			129,340			-			9,381			142,359			-			451,371
Improvement made in public concessions		-			-			-			236,396			-			-			236,396
Others		43,263			12,249			(8,649	)		-			75,208			-			122,071
Total		3,733,533			165,875			(213,820	)		269,588			1,431,514			36,083			5,422,773

Amortization
Software license		(66,111	)		(8,508	)		20			-			(10,357	)		(99	)		(85,055	)
Trademarks		(98,710	)		(44,579	)		-			-			32,858			-			(110,431	)
Customer base		(41,038	)		(46,904	)		-			-			21,796			-			(66,146	)
Leases		(15,118	)		(3,792	)		232			-			6,026			-			(12,652	)
Distribution rights (g)		(62,387	)		(36,627	)		-			-			(34,641	)		-			(133,655	)
Improvement made in public concessions		-			-			-			(14,968	)		-			-			(14,968	)
Others		(4,495	)		(13,945	)		(222	)		-			(48,949	)		-			(67,611	)
Total		(287,859	)		(154,355	)		30			(14,968	)		(33,267	)		(99	)		(490,518	)

		3,445,674			11,520			(213,790	)		254,620			1,398,247			35,984			4,932,255

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

(a)	The Company has reflected this rollforward activity as “net” adjustment. This net adjustment would actually represent the de-consolidation of 100% of the intangibles assets of subsidiaries de-recognized, and the addition of 50% of the intangibles assets of the JV’s then proportionally consolidated.

Intangible asset (except goodwill)	Annual Amortization rate %		2012		2011

Software	20.00	%		21,915		31,952
Trademarks Fuel Distributors (a)	20.00	%		260,313		68,696
Trademark Mobil (b)	10.00	%		154,082		176,911
Trademark União (c)	2.00	%		83,585		85,354
Customer base (d)	3.00	%		535,405		247,907
Operation license and customer base (e)	4.00	%		283,829		294,475
Favorable operating leases (f)	6.00	%		67,267		140,387
Distribution rights (g)	Straight line over contract term			317,716		107,904
Improvement in public concessions (h)				221,439		-
Others				54,460		38,768
Total				2,000,000		1,192,354

(a)	Refers to the right to use the trademark of fuel distribution through its joint venture Raízen Combustíveis.

(b)	Refers to the right to use the trademark of Mobil lubricants.

(c)	Refers to the right to use the trademark sugar União arising from business combination.

(d)	Refers to the relationship between Raízen Combustíveis and the gas station that maintain its flags and customer base acquired through business combination.

(e)	Refers to the customer base of Teacu acquired in its business combination

(f)	Refers to favorable lease contracts arising from the acquisition of Curupay

(g)	Intangible assets related to contracts with customers exclusively supply products to brand loyalty.

(h)	Refers to the improvements made on railroads operated by ALL (America Latina Logistica) in connection with a transportation agreement with Rumo.

Impairment testing of goodwill

	Consolidated
Carrying amount of goodwill	2012		2011

Cash-generating unit Raízen Energia		1,405,407		1,433,982
Cash-generating unit Raízen Combustíveis		855,907		184,415
Cash-generating unit Rumo		98,972		63,814
Cash-generating unit Cosan - Other Business		571,969		571,109
Total Goodwill		2,932,255		2,253,320

As defined in the accounting policy described in note 2.3, the Company tests annually the recoverable amount of goodwill.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Nonfinancial long term assets, not subject to amortization, are reviewed whenever there are indications that the carrying value is not recoverable.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

15.	Loans and Long Term Debts

	Financial Charges(1)				Parent Company					Consolidated
Description (1)	Index	Average annual interest rate (2)				03.31.2012		03.31.2011			03.31.2012		03.31.2011		Maturity date
Senior Notes Due 2014	Dólar (US)		9.5	%		-		-			322,654		576,814		jul/14
Senior Notes Due 2017	Dólar (US)		7.0	%		-		-			368,601		658,954		feb/17
BNDES	URTJLP		2.54	%		-		-			683,586		1,308,034		oct/25
	Pre-fixed		4.5	%		-		-			185,568		242,508		jul/20
	UMBND		6.59	%		-		-			18,365		38,947		jul/19
	Dólar (US)		6.94	%		-		-			11		-		nov/12
Bank Credit Notes	CDCA	0.55%+CDI				-		-			-		31,378		dec/11
ACC	Dólar (US)		1.73	%		-		65,215			138,369		228,229		aug/12
Perpetual Notes	Dólar (US)		8.25	%		-		741,553			930,094		1,236,209			-
Resolution 2471 (PESA)	IGP-M		3.95	%		-		110,361			316,108		674,392		apr/23
	Pre-fixed		3.0	%		-		114			53		114		oct/25
Rural Credits	Pre-fixed		6.75	%		-		31,168			20,460		92,352		oct/12
Bank Debit	Dólar (US) + Libor		2.42	%		-		-			410,002		-		apr/13
	IGP-M		11	%		-		-			88		-		dec/12
	Pre-fixed		13.78	%		-		-			5,332		-		mar/15
Pre Payments	Dólar (US) + Libor		4.27	%		-		244,493			507,454		736,472		feb/16
Credit Notes	110% CDI		-			341,227		303,028			341,226		303,719		feb/14
	Dólar (US)		2.35	%		-		167,196			52,891		314,105		feb/13
	Pre-fixed		6.25	%		-		-			-		10,142		oct/12
Finame	Pre-fixed		4.83	%		-		-			397,515		517,842		jul/20
	URTJLP		2.21	%		-		-			337,091		187,336		mar/21
	UMBND		8.44	%		-		-			16		-		oct/12
Others	Divers	Various				-		-			-		62,294		Various
Expenses with issuance of shares						(3.494	)	(1,366	)		(21,407	)	(28,546	)
						337,733		1,661,762			5,014,077		7,191,295
Current						-		(110,526	)		(537,135	)	(916,400	)
Non-Current						337,733		1,551,236			4,476,942		6,274,895

(1)

(2)	Financial charges on March 31, 2012;

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Long-term debt has the following scheduled maturities:

	Parent Company				Consolidated
	2012		2011		2012		2011
13 to 24 months		337,733		223,578		1,046,326		745,454
25 to 36 months		-		363,953		702,633		762,649
37 to 48 months		-		60,926		1,249,602		1,010,797
49 to 60 months		-		60,992		545,982		777,963
61 to 72 months		-		8		179,137		878,092
73 to 84 months		-		8		300,921		222,289
85 to 96 months		-		19,443		220,893		453,711
Thereafter		-		822,328		231,448		1,423,940
		337,733		1,551,236		4,476,942		6,274,895

PESA - Resolution 2471- Special Agricultural Financing Program (Programa Especial de Saneamento de Ativos), or PESA

Senior Notes Maturating on 2014

Senior Notes Maturating on 2017

BNDES

Refers to the financing of cogeneration projects, greenfields (sugar and ethanol mills) and expansion of the logistics segment.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Perpetual Notes

Bank Debt

Advances on Foreign Exchange Contracts (“ACC”), Pre payments and Credit Notes

Finame

Finame borrowings are financing related to financing of machinery and equipment. These loans are subject to interest payable monthly and are secured by underlying financed assets.

Covenants

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

16.	Tax Payable

	Parent Company						Consolidated
	2012			2011			2012			2011
ICMS – State VAT		-			7,268			66,601			72,265
IPI		-			843			4,631			30,661
INSS		47			5,828			13,029			25,309
PIS		219			-			5,003			7,229
COFINS		1,010			-			21,294			33,721
Recovery program - Refis IV		731,414			100,768			1,287,941			670,645
Income Tax		-			-			11,973			20,928
Others		370			7,768			33,871			23,597
		733,060			122,475			1,444,343			884,355
Current		(62,597	)		(33,758	)		(241,719	)		(245,284	)
Non – current		670,463			88,717			1,202,624			639,071

Tax recovery program – Law 11.941/09 e Provisional Measure 470/09 (“Refis IV”)

On July 29, 2011 the subsidiary Cosan Lubrificantes e Especialides S.A., successor entity of Esso Brasileira de Petróleio Ltda. (“Essobrás”), joined the tax recovery program upon request of ExxonMobil Brasil Holdings B.V. (“ExxonMobil”). Further information was disclosed in Note 6.

Maturities of long-term taxes payable are as follows:

	Parent Company				Consolidated
	2012		2011		2012		2011
13 to 24 months		56,018		11,080		99,083		67,848
25 to 36 months		55,650		7,335		97,707		61,205
37 to 48 months		55,611		7,199		97,254		60,396
49 to 60 months		55,611		6,870		96,909		60,008
61 to 72 months		54,972		6,489		96,270		52,243
73 to 84 months		53,931		6,489		95,229		46,707
85 to 96 months		53,931		6,489		95,229		45,799
Thereafter		284,739		36,766		524,943		244,865
		670,463		88,717		1,202,624		639,071

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

17.	Income taxes and social contribution

Cosan is incorporated in Bermuda which has no income taxes. The following relates to Brazilian income taxes of Cosan S.A., its subsidiaries and jointly controlled entities.

a)	Reconciliation of income and social contribution tax expenses:

	Parent Company						Consolidated
	2012			2011			2012			2011
Pretax Income		2,394,841			914,358			3,755,002			1,191,070
Income tax and social contribution at nominal rate (34%)		(814,246	)		(310,882	)		(1,276,701	)		(404,964	)
Adjustments to determine the effective rate:
Equity pick up		1,072,648			170,143			11,311			8,593
Non deductable donations		(194	)		(5,513	)		(3,817	)		(9,130	)
Interest on capital		(17,000	)		-			-			-
Non-taxable income(loss) from overseas companies		-			-			103,781			-
Non-taxable income(loss)		-			-			48,708			-
Others		(30,215	)		3,457			6,506			(8,978	)
Income Tax and Social contribution Expense( current and deferred)		210,993			(142,795	)		(1,110,212	)		(414,479	)
Effective Rate		8.81	%		15.62	%		29.57	%		34.80	%

b)	Deferred income tax on assets and liabilities

	Parent Company
	2012												2011
	Basis			IRPJ 25%			CSLL 9%			Total			Total
Tax Losses:
Tax Losses		377,664			94,416			-			94,416			110,195
Negative basis of social contribution		377,767			-			33,999			33,999			39,679
Temporary Differences:
Monetary exchange		(99,662	)		(24,916	)		(8,970	)		(33,886	)		(233,102	)
Amortized Goodwill		(50,661	)		(12,665	)		(4,559	)		(17,224	)		(35,194	)
Effect of the formation of JVs		(3,100,229	)		(775,057	)		(279,021	)		(1,054,078	)		-
Other effects		(293,334	)		(73,333	)		(26,400	)		(99,733	)		(128,929	)

Total Deferred taxes					(791,555	)		(284,951	)		(1,076,506	)		(247,351	)

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

	Consolidated
	2012												2011
	Basis			IRPJ 25%			CSLL 9%			Total			Total
Tax Losses:
Tax Losses		2,205,303			551,326			-			551,326			273,555
Negative basis of social contribution		2,198,476			-			197,863			197,863			99,609
Temporary Differences:
Monetary exchange		(109,962	)		(27,490	)		(9,897	)		(37,387	)		(274,189	)
Accelerated depreciation		(55,192	)		(13,798	)					(13,798	)		(4,596	)
Amortized goodwill		(678,008	)		(169,502	)		(61,021	)		(230,523	)		(252,323	)
Business combination		(1,585,714	)		(396,428	)		(142,714	)		(539,142	)		(626,913	)
Effect of the formation of JVs		(3,501,590	)		(875,398	)		(315,143	)		(1,190,541	)		-
Fair value allocated on Raízen Assets		(2,618,000	)		(654,500	)		(235,620	)		(890,120	)		-
Cost attributed - land		(366,151	)		(91,538	)		(32,953	)		(124,491	)		(124,491	)
Provisions for contingencies and other temporary differences		1,107,081			276,770			99,637			376,407			113,716

Total of deferred taxes					(1,400,558	)		(499,848	)		(1,900,406	)		(795,632	)

Deferred Income Tax - Asset											543,024			116,986
Deferred Income Tax – Liabilities											(2,443,430	)		(912,618	)
											(1,900,406	)		(795,632	)

18.	Provision for judicial demands

	Parent Company				Consolidated
	2012		2011		2012		2011
Tax		148,097		39,774		620,835		418,744
Civil		38,650		10,485		168,952		82,599
Labor		169,512		27,883		261,890		164,939
		356,259		78,142		1,051,677		666,282

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Judicial deposits on March 31, 2012 and 2011 are presented as follows:

	Parent Company			Consolidated
		2.012	2.011		2.012	2.011
Tax		171,052	11,521		411,619	167,547
Civil		8,201	3.243		32,474	18,937
Labor		27,380	2,810		65,142	31,887
		206,633	17,574		509,235	218,371

Changes in provision for judicial demands:

	Parent Company
	Tax			Civil			Labor			Total

March 31, 2011		39,774			10,485			27,883			78,142
Provisions		46,188			7,981			51,575			105,744
Settlements		(2,069	)		(2,672	)		(6,016	)		(10,756	)
Write-offs		(15,548	)		(3,137	)		(22,530	)		(41,216	)
Additions from the formation of JVs		70,071			24,109			108,069			202,249
Monetary variation		9,681			1,884			10,531			22,096
March 31, 2012		148,097			38,650			169,512			356,259

	Consolidated
	Tax			Civil			Labor			Total

March 31, 2011		418,744			82,599			164,939			666,282
Provisions		79,510			67,685			73,379			220,574
Settlements		(3,566	)		(23,444	)		(8,873	)		(35,883	)
Write-offs		(22,836	)		(65,774	)		(7,927	)		(96,537	)
Additions from the formation of JVs		118,824			91,020			22,768			232,612
Monetary variation		30,159			16,866			17,604			64,629
March 31, 2012		620,835			168,952			261,890			1,051,677

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Judicial demands deemed as probable loss

(a)

Tax

The major tax legal proceeding as of March 31, 2012 and 2011 are described as follows:

	Parent Company				Consolidated
Description	2012		2011		2012		2011
IPC – 89 (i)		-		-		82,173		80,273
Compensation with Finsocial (ii)		-		-		195,421		183,706
CIDE (iii)		-		-		93,841		-
ICMS credits (iv)		71,343		7,205		97,552		56,880
PIS and COFINS		8,277		2,718		17,445		8,220
IPI		9,159		6,537		15,970		20,759
IRPJ and CSLL		1,012		824		2,110		2,093
Other		58,306		22,490		116,323		66,813
		148,097		39,774		620,835		418,744

(i)

(ii)

(iii)

Prior to the formation of the JV, Raízen Combustíveis, former Shell Brasil Ltda, recorded CIDE on services provided by operations. This contingency will be reimbursed by Shell if any payment is required, an equivalent amount is recorded as related parties. There are judicial deposits related to these processes, amounting R$170,835.

(iv)

The provision for ICMS credits is comprised of: (a) tax assessment received, in which, despite the defense filed at the administrative and judicial levels, the legal counsel of the Company understand it is more likely than not that a loss will occur, (b) recovery of credits and financial charges on issues in which Company´s management has a differing view from the tax authorities. There are judicial deposits related to these processes, amounting R$8,392.

(b)	Civil and Labor claims

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Judicial demands deemed as possible loss

(a)	Tax claims

The main tax claims for which the unfavorable outcome is deemed possible and, therefore, no provision for legal claims was recorded in the financial statement, are as follows:

	Parent Company				Consolidated
	2012		2011		2012		2011
Withholding income taxes assessment(i)		204,249		192,903		204,249		194,498
ICMS – State VAT (ii)		698,672		116,865		1,705,220		490,896
IPI – Federal VAT (iii)		280,680		10,944		378,735		270,817
Compensation with IPI – IN 67/98 (iv)		188,479		-		188,479		181,292
INSS - social security and other (v)		63,372		58,606		83,875		72,616
PIS and COFINS (vi)		216,684		20,425		529,257		163,129
IR/CSLL (vii)		423,529		-		532,131		-
Others		159,233		59,991		493,471		197,884
		2,234,898		459,734		4,115,417		1,571,132

(i)

Tax assessment – withholding income tax

(ii)

ICMS

Refers mainly to (i) Tax Assessment filed in view of the alleged lack of payment of ICMS and non-compliance with accessory obligation, in connection with the partnership and manufacturing upon demand, with Central Paulista Açúcar e Álcool Ltda., between May to December 2006 and May to December 2007; and (ii) ICMS levied on the remittances of crystallized sugar for export purposes. In accordance with the tax agent, such product is classified as semi-finished product and that, in accordance with the ICMS regulation, would be subject to taxation, (iii) ICMS levied on possible differences in terms of sugar and alcohol inventories, arising from magnetic tax files and Inventory Registry Books and (iv) ICMS concerning rate difference due to ethanol sales to companies located in other states, which, subsequently, had their registrations revoked and (v) disallowance of credit resulting from the acquisition of diesel used in the production process.

(iii)

IPI – Federal VAT

SRF Normative Instruction n° 67/98 approved the procedure adopted by the industrial establishments which performed remittances without registries and payment of the IPI rate, in regard to transfers of sugarcane carried out between July 6, 1995 and November 16, 1997 and refined sugar between January 14, 1992 and November 16, 1997. Such rule was considered in proceedings filed by the Federal Revenue Secretariat against the Company, the unfavorable outcome of which is deemed as possible, in accordance with the opinion of the Company’s legal advisors.

(iv)

Offsets against IPI credits – IN 67/98

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

(v)

INSS

(vi)

PIS and COFINS

(vii)

IR/CSLL – Assessment Notice

In December 2011, the Company received notices of violation in the amount of R$ 400,318, drawn up by the Federal Revenue of Brazil charging of income tax and social calendar years 2006 to 2009, questioning: (i) deductibility of expenses for amortization of certain goodwill (ii) compensation for tax losses and negative social contribution calculation and (iii) tax on revaluation differences of the property included in fixed assets. The Company filed its defense in January 2012 and, together with its legal advisors, classified as remote loss amounted to R$ 207,078 as a possible loss and the amount of R$ 204,221. The remaining R$ 327,710 refers to various other claims in connection with income taxes and social contribution in several legal entities pertaining the subsidiaries and jointly controlled entities.

(b)	Civil and labor

The main civil and labor claims for which the unfavorable outcome is deemed possible are as follow:

	Parent Company				Consolidated
	2012		2011		2012		2011
Civil		309,234		59,036		869,954		377,608
Labor		407,533		60,770		1,200,573		302,289
		716,767		119,806		2,070,527		679,897

19.	Commitments

Sales

The commitments for the sale of sugar, in tons, March 31, 2012 and 2011 are as follows (unaudited):

Fiscal Year	2012	(*)
2012	2,518,640
2013	1,714,101
Total	4,232,741

(*) Represents 100% of the commitments of Raízen Energia.(Raizen Energia is 50% proportionally consolidated).

Purchases

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Purchase commitments by harvest, in thousands of tons on March 31, 2012 and 2011 are as follows (unaudited):

Fiscal Year	2012	(*)
2013	24,747
2014	22,096
2015	19,624
After 2015	129,601
Total	196,068

(*) Represent 100% of the commitments of Raízen Energia. (Raizen Energia is 50% proportionally consolidated).

At March 31, 2012 and 2011, the regular capacity of sugarcane crushing for the next harvest, considering all units, is approximately 63 million tons (unaudited).

The Company through its subsidiary Rumo entered into a commitment to purchase railcars, locomotives and invest in rail track improvements aimed at the expansion of the logistics business, as follows:

Fiscal Year	2012
2012		489,794
2013		44,000
2014		2,000
Total		535,794

Lease Agreements

Operating Leases

The Company, subsidiaries and jointly-controlled entities have operating lease contracts on land used for planting sugarcane and the concession contract to operate the port terminal, which will end within 20 years.

The minimum payments related to these obligations are calculated on a straight-line basis over the term of the lease. The costs for these contracts during the year ended March 31, 2012 and 2011 consisted of the following:

	2012	(*)
Minimum Installment	214,949
Variable Installment	280,930
Total	495,879

(*) Represent 100% of the commitments of Raízen Energia. (Raizen Energia is 50% proportionally consolidated).

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of March 31, 2012 and 2011 are:

	Raízen Energia(*)		Rumo
Within 1 year		553,815		37,303
Over 1 year, less than 5 years		1,673,249		241,741
More than 5 years		1,676,005		-

Total		3,903,069		279,044

(*) Represents 100% of the commitments of Raízen Energia.(Raizen Energia is 50% proportionally consolidated).

20.

Equity

a)	Common Stock

The authorized common stock may be increased up to the limit of R$5,000,000, with no need of an amendment to the Company´s Bylaws, upon a decision of the Board of Directors. As of March 31, 2012, the Company’s capital is represented by 407,214,353 common shares.

As of March 31, 2012 and 2011, the Company’s capital is represented by 407,214,353 common shares, with no par value.

b)	Realizable Profits Reserve:

Realizable Profits Reserve will be the allocation of net income for what is contained therein: (i) incorporated with revenue arising from equity investment of the Joint Venture in subsidiary and / or other non-recurring event, (ii) performed by the amortization of fair value of net assets of the Joint Venture, limited by the existence of balance in retained earnings.

Calculation of the realized portion of net income
Net income	2,605,834
Equity income of associates	(3,154,846	)
Realized portion loss of the year	(549,012	)

Constitution of reserve for unrealized profits
Net income	2,605,834
Legal reserve – 5% (art. 193)	(130,292	)
Reserve for unrealized profits	2,475,542

(*) Contained in equity income of subsidiary

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Dividends

By the meeting of May 22, 2012, the Board of Directors approved a proposal to be submitted to the General Shareholder’s Meeting to pay dividends accounted in Retained Earnings in the amount of R$ 250,000.

d)	Repurchase of shares

On November 22, 2010, the Board of Directors approved a stock repurchase plan for the purpose of maintenance in treasury, cancellation or disposal. The plan mentions that the Company may repurchase maximum of 6,640,091 of common shares, with no par value, in a specific period of 365 days. On November 03, 2011, repurchase of shares program was extended on 365 days.

During the exercise ended March 31, 2012, the Company acquired 1,972,500 shares for R$48,258 including expenses. The average unit stock value acquired during the period was R$ 24.46 being the minimum and maximum value R$ 23.02 and R$ 25.57, respectively, per share.

On March 31, 2012, the Company has 2,907,039 treasury shares (934,539 treasury shares as of March 31, 2011), which market value, that date, was R$ 32.86 (R$25.40 as of March 31, 2011).

e)	Earnings per share

Earnings per share are computed by dividing net income by the weighted average number of common shares outstanding during the year. Diluted earnings per share are calculated by adjusting average outstanding shares for the impact of conversion of all potentially dilutive options

The table below reflects the income and share date used in the basic and diluted earnings per share calculation for the six-month periods ended December 31, 2011 and 2010 (in thousands of Reais, except values per share):

Basic:

	2012		2011
Numerator:
Net Income for Cosan		2,605,834		771,565
Denominator:
Weighted average shares outstanding		405,205,015		406,430,612
Denominator for basic earnings per share		405,205,015		406,430,612
Basic earnings per share	R$	6.43	R$	1.90

Diluted:

	2012		2011
Numerator:
Net income for Cosan		2,605,834		771,565
Denominator:
Weighted average shares outstanding		405,205,015		406,430,612
Potential increase of common stock		6,083,425		294,718
Denominator for diluted earnings per share		411,288,440		406,725,330
Diluted earnings per share	R$	6.34	R$	1.90

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

21.	Result of the formation of the Joint Ventures (Raízen Energia e Raízen Combustíveis)

As mentioned in note 1, on June 1, 2011, the Company concluded, together with Shell, the formation of two joint ventures: (1) Raízen Combustíveis, in the fuel distribution segment, and (ii) Raízen Energia, in the sugar and ethanol segment. The Company through its subsidiary Cosan S.A.and Shell share the control of the two entities, each one has 50% of the economic control.

The process of deconsolidating do the contributed business, on June 1st, 2011, and the recognition of the new interest at fair value produced a gain of R$3,196,632 recorded during the year and shown below:

Fair value of the remaining interest in the joint ventures (a)	8,105,546
Book value of business (assets and liabilities) contributed	(4,257,640	)
Gain on the de-consolidation of assets and liabilities contributed to the formation of the JV.	3,847,906
Other effects:
Write-off of Recoverable taxes not realizable (b)	(83,465	)
Write-off of goodwill related to contributed subsidiaries	(193,633	)
Write-off of other comprehensive income in relation to
Hedge accounting, regarding contributed business’	(157,988	)
Provisions in accordance with the JVs formation contract	(78,995	)
Other expenses and write-offs from the formation of Joint Ventures	(137,193	)
Income from formation of joint ventures	3,196,632

(a)	Based on appraisal report prepared by independent appraisers.

(b)	Recoverable taxes recorded by Cosan S.A., considered not realizable, and if received will be reimbursed to Raízen Energia.

(c)	Includes costs related to the transactions and other amounts related to the operation

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

	Raízen Energia			Raízen Combustíveis			Total
Fair value of assets and liabilities (a):
Cash and cash equivalents		358,457			273,359			631,816
Restricted cash		61,655			-			61,655
Account Receivable		385,651			1,026,274			1,411,925
Derivatives		114,204			-			114,204
Inventories		746,561			831,258			1,577,819
Receivable from Shell		1,853,269			-			1,853,269
Other assets		1,691,561			1,527,766			3,219,327
Investments		120,764			-			120,764
Biological Assets		1,607,170			-			1,607,170
Property, plant and equipment		9,313,801			2,719,498			12,033,299
Intangible Assets		253,152			1,826,224			2,079,376
Loan and financing		(5,579,218	)		(926,268	)		(6,505,486	)
Suppliers		(471,495	)		(557,912	)		(1,029,407	)
Taxes payable		(255,939	)		35,550			(220,389	)
Other Liabilities		(2,918,758	)		(2,296,137	)		(5,214,895	)
Non-controlling interests		(16,457	)		(35,527	)		(51,984	)
Net assets at fair value (a):		7,264,378			4,424,085			11,688,463
Cosan’s interest - 50%		3,632,190			2,212,042			5,844,232
Goodwill allocated (a)		1,405,407			855,907			2,261,314
Fair value of the remaining interest in joint ventures		5,037,597			3,067,949			8,105,546

The goodwill of the transaction (R$2,261,314) was allocated to the segments Raízen Energia and Raízen Combustíveis in the proportion of net assets at fair value of each of these investments.

If it had been completed on 1 April 2011, and affected the income statement since the beginning of the exercise, the annual revenue would have been R$ 26,394,754 and the net income would have been R$ 2,264,333

The assets, liabilities, revenues and expenses of the jointly controlled in March 31, 2012, which were consolidated proportionately in the financial statements are presented in note 29.

The contingent liabilities of capital commitments of jointly controlled are disclosed in Notes 18 and 19.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

22.	Gross Sales

	Parent Company						Consolidated
	2012			2011			2012			2011
Gross revenue from sales of products and services		1,341			2,248,382			25,917,922			19,783,250
Indirect taxes and deductions		(45	)		(144,304	)		(1,821,041	)		(1,719,770	)
Net revenue		1,296			2,104,078			24,096,881			18,063,480

23.	Expenses by nature

Reconciliation of expenses by nature

The expenses are presented in the consolidated results by function. The reconciliation of income by nature/purpose for the years ended March 31, 2012, 2011 and 2010 is detailed as follows:

a)	Expenses by nature:

	Parent Company						Consolidated
	2012			2011			2012			2011
Raw-material		(628	)		(1,236,418	)		(4,612,407	)		(3,657,462	)
Resale fuels		-			-			(15,060,815	)		(10,084,103	)
Payroll		(49,582	)		(263,081	)		(568,061	)		(901,062	)
Commercial expenses		(1,365	)		(24,089	)		(535,439	)		(179,283	)
Transportation and loading		-			-			(401,339	)		(545,212	)
Depreciation and amortization		(1,897	)		(79,190	)		(1,142,780	)		(742,307	)
Other expenses		(48,498	)		(319,248	)		(922,348	)		(607,652	)
		(101,970	)		(1,922,026	)		(23,243,189	)		(16,717,081	)

b)	Segregated as:

	Parent Company						Consolidated
	2012			2011			2012			2011
Cost of goods sold		(2,410	)		(1,499,465	)		(21,465,009	)		(15,150,079	)
Selling		-			(159,075	)		(1,136,286	)		(1,026,000	)
General and administrative		(99,560	)		(263,486	)		(641,894	)		(541,002	)
		(101,970	)		(1,922,026	)		(23,243,189	)		(16,717,081	)

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

24.	Financial results, net

	Parent Company						Consolidated
	2012			2011			2012			2011
Financial Expense
Interests		(311,776	)		(283,169	)		(542,322	)		(586,887	)
Monetary Variation		-			(10,765	)		(10,961	)		(81,341	)
Others		(19,344	)		(655	)		(28,952	)		(4,678	)
		(331,120	)		(294,589	)		(582,235	)		(672,906	)
Financial Income
Interests		26,218			39,524			48,562			63,791
Monetary Variation		9,453			3,609			26,312			34,018
Investments		35,212			10,217			131,117			90,345
Others					114			371			603
		70,883			53,464			206,362			188,757

Foreign exchange variation, net (1)		(337,079	)		235,467			(93,887	)		282,705

Derivatives, net (2)
Commodities derivatives					277,734			18,472			6,524
Exchange rate and interest derivatives		79			(5,497	)		(711	)		34,984
Warranties in associates		(22,141	)		13,248			(22,141	)		13,248
		(22,062	)		285,485			(4,380	)		54,756
		(619,378	)		279,827			(474,140	)		(146,688	)

(1)	Includes gains (losses) of foreign exchange rate over assets and liabilities denominated in foreign currency; and

(2)	Includes realized results and unrealized results on operations in future market, options, swaps and NDFs, in addition to effects from non-designated instruments and from the ineffective portion of hedge accounting.

25.	Other Income (expense), net

	Parent Company						Consolidated
	2012			2011			2012			2011

Other income
Gain on disposal of property, plant and equipment		(48	)		1,038			93,892			43,708
Revenue from the sale of scrap and waste		-			2,310			2,862			6,950
Rental and leasing income		800			2,745			57,197			4,111
Reversal of loss of receivables		25,794			-			28,804			-
Revenue from royalties		-			-			19,739			-
Revenue from customer base		-			-			14,827			-
Other Income		2,899			-			44,071			8,908
		29,445			6,093			261,392			63,677
Other expense
Provision for judicial demands		(70,661	)		(1,079	)		(80,835	)		(23,828	)
Internal costs on Rumo transaction		-			(18,758	)		(1,971	)		(20,319	)
Donations		-			(9,105	)		-			(12,335	)
Expenses of subsidiaries acquisition and start up		-			(6,517	)		(9,497	)		(6,517	)
Other expense		(21,398	)		(18,577	)		(23,539	)		(34,506	)
		(92,059	)		(54,036	)		(115,842	)		(97,505	)
		(62,614	)		(47,943	)		145,550			(33,828	)

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

26.	Financial Instruments

Financial risk management

Overview

The Company is exposed to the following risk related to the use of financial instruments:

Price risk

Foreign exchange rates

Interest rates

Credit risk

Liquidity risk

b)	Risk management structure

On March 31, 2012 and 2011, fair values related to transactions involving derivative financial instruments with the purpose of hedge or other purposes were measured at market value (fair value) by observables factors such as quoted prices in active markets or discounted cash flows based on market curves and are presented below:

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

	Notional					Fair Value
	March 31, 2012		March 31, 2011			March 31, 2012			March 31, 2011			Result (*)
RAÍZEN ENERGIA
Price risk
Commodity derivatives
Future agreements		1,194,225					24,377			-			24,377
Option agreements		8,954					782			-			38
							25,159			-			24,415
Price risk
Commodity derivatives
Future agreements		490,949					1,682			-			1,431
Option agreements		258,690					1,773			-			1,773
Price risk		256,381					3,403			-			3,403
							6,858			-			6,607

Interest rate risk
Derivative interest		318,868		-			(1,495	)		-			(1,495	)
							(1,495	)		-			(1,495	)

TOTAL Raízen Energia							30,522			-			29,527
Consolidated Cosan (50% Raízen Energia)							15,261			-			14,764

Derivatives in the Company and subsidiaries

Price risk
Commodity derivatives
Future agreements		-		1,308,033			-			(68,906	)		-
Option agreements		-		10,364			-			(17,484	)		-
							-			(86,390	)		-
Price risk
Commodity derivatives
Future agreements		-		(114,204	)		-			(117	)		-
Option agreements		325,029		694,599			(5,282	)		9,900			(5,282	)
							(5,282	)		9,783			(5,282	)

Total Cosan (including 50% Raízen Energia – where applicable)							9,979			(76,607	)		9,482
Total of Assets							19,590			55,682
Total of Liabilities							(9,611	)		(132,289	)

(*) Values from the income statement calculated for the year ended March 31, 2012, only to outstanding derivatives that date.

c)	Price Risk

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Price Risk : derivatives of commodities open in March 31, 2012

Derivatives

Purchased / Sold

Market

Contract

Maturity

Notional (units)

Notional

(R$ thousand)

Fair Value

(R$ thousand)

Contracted financial Instruments by Raízen Energia

Composition of balances of derivative financial instruments designated in hedge accounting

Future

Sold

NYBOT

Sugar#11

1-May-12

129,241 T

132,392

4,106

Future

Sold

NYBOT

Sugar#11

1-Jul-12

440,050 T

434,844

13,778

Future

Sold

NYBOT

Sugar#11

1-Oct--12

551,358 T

534,580

5,901

Future

Sold

NYBOT

Sugar#11

1-Mar-13

110,851 T

109,453

223

Future

Sold

NYBOT

Sugar#11

1-Jul-13

204 T

191

)

Sub-total of future sugar sold

1,231,704 T

1,211,460

24,003

Composition of balances of derivative financial instruments non-designated in hedge accounting

Future

Purchased

NYBOT

Sugar#11

1- May-12

(25,808 T

)

(25,589

)

Future

Purchased

NYBOT

Sugar#11

1-Jul-12

(10,160 T

)

(9,562

)

160

Future

Purchased

NYBOT

Sugar#11

1-Oct-12

(2,693 T

)

(2,462

)

120

Future

Purchased

NYBOT

Sugar#11

1-May-13

(1,422 T

)

(1,338

)

Future

Purchased

NYBOT

Sugar#11

1-May-13

(254 T

)

(240

)

Future

Purchased

NYBOT

Sugar#11

1-Jul-13

(203 T

)

(187

)

Sub-total of future sugar purchased

(40,540 T

)

(39,378

)

388

Sub-total of future sugar

1,191,164 T

1,172,082

24,391

Call

Purchased

NYBOT

Sugar#11

1-May-12

(5,080 T

)

(57

)

Call

Purchased

NYBOT

Sugar#11

1-Jul-12

(111,766 T

)

(2,760

)

269

Sub-total of call purchased

(116,846 T

)

(2,817

)

283

Call

Sold

NYBOT

Sugar#11

1-May-12

27,687 T

2,751

(11

)

Call

Sold

NYBOT

Sugar#11

1-Jul-12

76,204 T

4,500

(184

)

Call

Sold

NYBOT

Sugar#11

1-Jul-12

35,562 T

1,820

(86

)

Sub-total of call sold

139,453 T

9,071

(281

)

Put

Purchased

NYBOT

Sugar#11

1-May-12

27,687 T

2,699

779

Sub-total of put purchased

27,687 T

2,699

779

Sub-total of options of sugar

8,953

781

Future

Sold

BMFBovespa

ETH

30-Mar -12

16,560 m³

20,430

Future

Sold

BMFBovespa

ETH

30-Apr-12

18,210 m³

22,642

(18

)

Sub-total of future ethanol sold

34,770 m³

43,072

(10

)

Future

Purchased

BMFBovespa

ETH

30-Mar-12

(5,910 m³

)

(7,473

)

Future

Purchased

BMFBovespa

ETH

30-Mar -12

(10,650 m³

)

(13,456

)

Sub-total of future ethanol purchased

(16,560 m³

)

(20,929

)

Sub-total of future ethanol

18,210 m³

22,143

(13

)

Total of commodities

1,203,178

25,159

The fair value of these derivatives was measured by observable factors, such as quoted prices in active markets and, in some cases, by means of models whose assumptions are observable in the market.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

d)	Foreign Exchange risk

Price Risk : derivatives of foreign currencies open in March 31, 2012
Derivatives	Purchased / Sold	Market	Contract	Maturity	Notional (USD)		Notional (R$ Thousand)		Fair Value (R$ Thousand)
Financial instruments contracted by Raizen Energia


Composition of balances of derivative financial instruments designated in hedge accounting

Term	Sold	OTC/Cetip	NDF	02-Apr-12	141,000		258,690		1,773
Sub-total of term sold					141,000		258,690		1,773

Composition of balances of derivative financial instruments non-designated in hedge accounting

Future	Sold	BMFBovespa	Commercial Dollar	02-Apr-12	898,000		1,563,367		6,954
Future	Sold	BMFBovespa	Commercial Dollar	02-May-12	330,500		608,037		1,614
Future	Sold	BMFBovespa	Commercial Dollar	02-May-12	3,250		5,967		(3	)
Sub-total of future sold					1,231,750		2,177,371		8,565
Future	Purchased	BMFBovespa	Commercial Dollar	02-Apr-12	(922,000	)	(1,685,044	)	(6,882	)
Future	Purchased	BMFBovespa	Commercial Dollar	02-May-12	(750	)	(1,378	)	(1	)
Sub-total of future purchased					(922,750	)	(1,686,422	)	(6,883	)


Exchange lock	Sold	OTC	Exchange lock	02-Jul-12	20,000		38,254		1,121
Exchange lock	Sold	OTC	Exchange lock	02-Jul-12	30,000		58,104		2,575
Exchange lock	Sold	OTC	Exchange lock	06-Sep-12	20,000		36,044		(1,445	)
Exchange lock	Sold	OTC	Exchange lock	13-Sep-12	40,250		74,881		(768	)
Exchange lock	Sold	OTC	Exchange lock	24-Sep-12	25,000		49,098		1,920
					135,250		256,381		3,403
Total of exchange					585,250		1,006,020		6,858

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Derivatives	Purchased / Sold	Market	Contract	Maturity	Number of Contracts	Strike	Middle Price		Fair Price		Notional (USD)			Notional (R$ mil)		Fair Value (R$ thousand)

Term	Purchased	OTC	NDF	4-May-12	1	-		1.8944		1.8417		(6,188	)		11,722		348
Term	Purchased	OTC	NDF	4-May-12	1	-		1.6789		1.8417		(4,197	)		7,047		(660	)
Term	Purchased	OTC	NDF	3-Aug-12	1	-		1.9358		1.8771		(4,197	)		7,239		(597	)
Term	Purchased	OTC	NDF	3-Aug-12	1	-		1.7247		1.8771		(6,188	)		11,978		389
Term	Purchased	OTC	NDF	1-Nov-12	1	-		1.9780		1.9166		(4,197	)		7,390		(563	)
Term	Purchased	OTC	NDF	1-Nov-12	1	-		1.7607		1.9166		(6,188	)		12,239		455
Term	Purchased	OTC	NDF	4-Feb-13	1	-		2.0209		1.9508		(4,197	)		7,546		(524	)
Term	Purchased	OTC	NDF	4-Feb-13	1	-		1.7978		1.9508		(6,188	)		12,504		525
Term	Purchased	OTC	NDF	3-May-13	1	-		2.0589		1.9737		(4,197	)		7,696		(472	)
Term	Purchased	OTC	NDF	3-May-13	1	-		1.8336		1.9737		(6,188	)		12,739		597
Term	Purchased	OTC	NDF	2-Aug-13	1	-		2.1005		2.0103		(4,197	)		7,859		(430	)
Term	Purchased	OTC	NDF	2-Aug-13	1	-		1.8724		2.0103		(6,188	)		12,997		653
Term	Purchased	OTC	NDF	4-Nov-13	1	-		2.1424		2.0480		(4,197	)		8,032		(386	)
Term	Purchased	OTC	NDF	4-Nov-13	1	-		1.9137		2.0480		(6,188	)		13,256		699
Term	Purchased	OTC	NDF	4-Feb-14	1	-		2.1852		2.0850		(4,197	)		8,190		(358	)
Term	Purchased	OTC	NDF	4-Feb-14	1	-		1.9513		2.0850		(6,188	)		13,521		747
Term	Purchased	OTC	NDF	2-May-14	1	-		2.2211		2.1210		(4,197	)		8,340		(329	)
Term	Purchased	OTC	NDF	2-May-14	1	-		1.9870		2.1210		(6,188	)		13,743		770
Term	Purchased	OTC	NDF	4-Aug-14	1	-		2.2630		2.1610		(4,197	)		8,507		(288	)
Term	Purchased	OTC	NDF	4-Aug-14	1	-		2.0268		2.1610		(6,188	)		14,002		820
Term	Purchased	OTC	NDF	4-Nov-14	1	-		2.3048		2.2002		(4,197	)		8,666		(250	)
Term	Purchased	OTC	NDF	4-Nov-14	1	-		2.0648		2.2002		(6,188	)		14,261		876
Term	Purchased	OTC	NDF	4-Feb-15	1	-		2.3429		2.2394		(4,197	)		8,813		(221	)
Term	Purchased	OTC	NDF	4-Feb-15	1	-		2.0997		2.2394		(6,188	)		14,497		915
Term	Purchased	OTC	NDF	4-May-15	1	-		2.3800		2.2564		(4,197	)		8,942		(201	)
Term	Purchased	OTC	NDF	4-May-15	1	-		2.1305		2.2564		(6,188	)		14,726		957
Term	Purchased	OTC	NDF	4-Aug-15	1	-		2.4247		2.2564		(4,197	)		9,089		(169	)
Term	Purchased	OTC	NDF	4-Aug-15	1	-		2.1656		2.2564		(6,188	)		15,003		1,032
Term	Purchased	OTC	NDF	4-Nov-15	1	-		2.4653		2.2564		(4,197	)		9,231		(140	)
Term	Purchased	OTC	NDF	4-Nov-15	1	-		2.1994		2.2564		(6,188	)		15,254		1,087
												(155,775	)		325,029		5,282

	Consolidated
	2012						2011
	R$			US$ (in thousands)			R$			US$ (in thousands)
Cash and Cash equivalent		24,426			13,406			191,098			117,332
Restrict Cash		45,976			25,232			126,872			77,898
Accounts receivable from abroad		164,681			90,380			7,556			4,639
Related Parties (Shell)		436,362			239,483			-			-
Debts		(2,730,076	)		(1,498,314	)		(3,750,783	)		(2,302,927	)
Net foreign currency Exchange		(2,058,631	)		(1,129,813	)		(3,425,257	)		(2,103,058	)

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

e)	Effect of Hedge Accounting

Raizen Energia records gains and losses deemed effective for purposes of hedge accounting to a specific account in equity (“other comprehensive income”), until the object of coverage (hedged item) affects the profit and loss. On December 31, 2012, the amounts recorded in other comprehensive income related to hedge accounting are as follows:

			Expected period to affect P&L
Derivative	Market	Risk		2012/2013		2013/2014		Total

Future	OTC / NYBOT	#11		40,543		564			41,107
NDF	OTC / CETIP	USD		1,663		-			1,663
				42,206		564			42,770

(-) Deferred income tax				(14,350	)	(192	)		(14,542	)

Effect on the Raizen Equity				27,856		372			28,228

Effect on equity of Cosan (50%)									14,114

The changes for the period of the effect of hedge accounting on other comprehensive income of Cosan S.A. is shown below:

Hedge Cash flow	2012

Balance at March 31, 2011		(143,298	)
Gain/(losses) of cash flow hedges for the period:
Commodities futures and swap contracts		5,414
Currency forward contracts		38,286
Reclassification adjustments for losses / gains included in the income statement		36,815
Write off of OCI due to the formation of JV		157,988
Total before tax effect		238,503
Tax effect on gain/(losses) of cash flow hedges for the period – 34%		(81,091	)
Balance at March 31, 2012		14,114

f)	Exchange rate risk

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

use of derivative instruments in order to minimize these risks. The table below shown the consolidated positions open on March 31, 2012 of derivatives used for interest rate (none in 2011):

Price Risk : derivatives of interests open in March 31, 2012

Derivatives

Asset / Liabilities

Market

Maturity

Notional

Fail Value

(US$ Thousands)

(R$ Thousand)

Interests rate Swap

Libor 3M / pré

OTC

Jan-16

175,000

318,868

(1,495)

Total of interests

175,000

318,868

(1,495)

g)	Credit risk

h)	Liquidity risk

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

i)	Fair value

Cash and cash equivalents, accounts receivable, accounts payable and other short-term obligations approximate their respective carrying values due largely to short-term maturity of these instruments.

The fair market value of Senior Notes due 2014 and 2017, described in note 16, at its market price are 115.5% and 106% respectively, of its face value at March 31, 2012.

The fair market value of Perpetual bonds, described in note 16, at its market price is 105.2%, respectively, of its face value at March 31, 2012.

The fair value of financial assets available for sale is obtained through quoted market prices in active markets, if any.

Fair value hierarchy

The Company, its subsidiaries and jointly-controlled entities have the following hierarchy to determine and disclose the fair value of financial instruments by the technical evaluation:

Level 1: quoted prices in a active market to identical assets and liabilities;

Level 2: other techniques for which all data that have significant effect on the fair value recorded are observable, directly or indirectly;

Level 3: techniques that use data that have significant effect on the fair value recorded that are not based on observable market data.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Assets and liabilities measured at fair value	Level 1			Level 2			Total

March 31, 2012
Warrants Radar		-			140,820			140,820
Derivative financial assets		17,002			2,588			19,590
Derivative financial liabilities		(8,864	)		(748	)		(9,611	)
Total		8,139			142,660			150,799

March 31, 2011
Warrants Radar,		-			162,961			162,961
Derivative financial assets		35,577			20,105			55,682
Derivative financial liabilities		(122,084	)		(10,205	)		(132,289	)
Total		(86,507	)		172,861			86,354

j)	Sensitivity analysis

Following is the sensitivity analysis of the fair value of financial instruments, in accordance with the types of risks deemed to be significant by the Company and its joint-controlled entities:

Assumptions for sensitivity analysis

Sensitivity exhibit

The sensitivity exhibit is shown below, disclosing the changes in the fair value of the derivative financial instruments in the probable, possible and remote scenarios:

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

					Impacts on results (*)
	Risk factor	Probable Scenario			Possible Scenario (25%)			Remote Scenario (50%)
Price risk
Commodity derivatives
Future agreements
Selling agreements	Increase of the sugar price		12,001			(148,432	)		(296,864	)
Purchasing agreements	Decrease of the sugar price		194			(4,971	)		(9,941	)
Selling agreements	Increase of the Ethanol Hydrated price		(5	)		(5,518	)		(11,035	)
Purchasing agreements	Decrease of the Ethanol Hydrated price		(1	)		(3,998	)		(7,996	)
Option agreements:
Calls Purchased	Decrease of the sugar price		142			(142	)		(142	)
Calls Sold	Increase of the sugar price		(140	)		(3,835	)		(15,945	)
Puts Purchased	Increase of the sugar price		389			(389	)		(389	)

Exchange rate risk
Exchange rate derivatives
Future agreements:
Selling agreements	Increase of the exchange rate R$/US$		4,157			(130,685	)		(260,079	)
Purchasing agreements	Decrease of the exchange rate R$/US$		(3,441	)		(209,824	)		(420,339	)
Forward agreements:
Selling agreements	Increase of the exchange rate R$/US$		(4,395	)		(32,103	)		(64,206	)
Exchange lock:
Selling agreements	Increase of the exchange rate R$/US$		1,701			(30,592	)		(61,185	)
Option agreements:
Interest rate risk
Derivatives Interest
Swap agreement	Decrease in Libor curve		(747	)		(1,100	)		(2,208	)

(*) Results projected to occur within 12 months from March 31, 2012

k)	Capital management

Occasionally, the Company purchases its own shares on the market, the timing of these purchases depends on market prices.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2012 and 2011.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

27.	Pension and other post-employment benefits plan

	2012		2011
Futura		34,725		24,380
Other		2,587		-
Total		37,312		24,380

a)	Pension Plan

Defined benefit

Defined contribution

b)	Actuarial Liability

The pension on Futura (former Previd Exxon) demonstrated in non-current liabilities at March 31, 2012 amounted to R$34,725 (R$24.380 in 2011).

Reconciliation of present value of defined benefit obligation and the fair value of plan assets, with assets and liabilities recognized on the balance sheet:

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

	2012			2011
Present value of actuarial obligation at beginning of year		(383,823	)		(325,534	)
Interest costs		(38,345	)		(35,107	)
Current service cost		(455	)		(4,445	)
Benefits paid		27,845			24,637
Settlement / curtailment		54,779			-
Actuarial loss on obligation at beginning of year		(22,716	)		(43,374	)
Present value of actuarial obligation at end of the year		(362,715	)		(383,823	)

Fair value of plan assets at beginning of the year		359,443			347,703
Expected return on plan assets		39,000			35,918
Contributions received by the fund		3,282			8,702
Benefits Paid		(27,846	)		(24,637	)
Effect of migration to defined contribution - Settlement		(32,226	)		-
Loss in fair value of assets		(13,663	)		(8,243	)
Fair value of plan assets at year-end		327,990			359,443

Present value of liabilities in excess fair value of assets		(34,725	)		(24,380	)

Total expense recognized in profit or loss:

Expense recognized in profit or loss:	2012			2011
Current service cost		(455	)		(4,445	)
Interest on obligation		(38,345	)		(35,107	)
Expected return on plan assets		39,000			35,918
		200			(3,634	)

Total amount recognized as other comprehensive income:

	2012	2011
Amount accumulated at April 1	(22,621)	(42,056)
Unrecognized gains	36,379	29,447
Deferred Income Tax	(12,369)	(10,012)
Amount accumulated at March 31st	1,389	(22,621)

Plan assets include:

	2012					2011
	Amount		Percentage			Amount		Percentage
CDBs – Bank Deposits		245,993		75	%		268,863		74.80	%
Equity securities of Brazilian public entities		81,997		25	%		90,580		25.20	%
Total		327,990		100	%		359,443		100	%

Plan assets are represented by financial assets with quoted prices in an active market and therefore are included as a Level 1fair value type. The total expected rate of return on assets is calculated based on market expectations existing at that date applicable to the period over which the obligation should be liquidated. These expectations are reflected in the following main assumptions.

The main assumptions used to determine the pension benefit obligations of the Company are as follows:

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Defined benefit plan	2012	2011
Actuarial valuation method	Projected unit credit	Projected unit credit
Mortality table	AT 83 segregated by sex, decreased by 10%	AT 83 segregated by sex, decreased by 10%
Discount rate for actuarial liability	Interest: 9.68% p.a. + inflation: 4.20% % p.a.	Interest: 10.77% p.a. + inflation: 4.50% p.a.
Expected rate of return on plan assets	Interest: 11.30% p.a. + inflation: 4.20% p.a.	Interest: 11.20% p.a. + inflation: 4.50% p.a.
Salary growth rate	Non - Applicable	6.07% + inflation: 4.50% p.a.
Increase rate of estimated benefits	0.00% p.a. + inflation: 4.20% p.a.	0.00% p.a. + inflation: 4.50% p.a.

The Company expects contributions at the amount of R$ 3,037 to be paid in relation to its defined benefit and variable contribution plan in 2013.

28.	Share-Based Payments

On the same date the eligible executives were informed of the all terms and conditions of the stock-option plan.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

Risk-Free Interest Rate – Cosan S.A. bases the risk-free interest rate used the SELIC - Special System Settlement Custody.

The stock options were divided into “Tranche A” and “Tranche B”. The vesting period is described below.

As of August 19, 2011, 9,825,000 options related the shared based compensation was granted.The fair value of share based payments was estimated adopting the binomial model with the following premise:

	Options granted on August 18, 2011 Tranche A	Options granted on August 18, 2011 Tranche B
Grant price - R$	22.8	22.8
Expected life (in years)	1 a 5	1 a 10
Interest rate	12.39%	12.39%
Expected Volatility	31.44%	30.32%
Weighted average fair value at grant date - R$	6.80	8.15

Expected Term – the expected term considers that the executives will exercise their options after the vesting period of each grant.

Free risk Interest Rate – the company considered the prime rate as the free risk interest rate traded at BM&F Bovespa on the grant date and for the equivalent term of the option maturity.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

29.	Segment information (consolidated)

a)	Segment information

The following information about segments is based upon information used by Cosan’s senior management to assess the performance of operating segments and to decide on the allocation of resources.

(i)

(ii)	Raízen Combustíveis: distribution and marketing of fuels and lubricants, mainly through franchised network of service stations under the brand “Shell” and "Esso" throughout Brazil.

(iii)

Rumo: logistics services for the transport, storage and port lifting of sugar for both Raizen Energia and third parties.

(iv)	Cosan Alimentos: sale of food, mainly, of sugar in the retail under the brands “União” and “Da Barra”.

(v)	Cosan other business: sale and distribution of lubricants, investments in agricultural land (through Radar) and other investments, in addition to the corporate activities of the Company.

The following selected information result and segment assets that were measured in accordance with the accounting practices used in the preparation of consolidated information:

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

	2012
Balance Sheet:	Raizen Energia (*)			Raizen Combustiveis (*)			Cosan Alimentos			Rumo			Cosan other business			Eliminations 50% Raizen			Adjustments / Eliminations			Consolidated
Property, plant and equipment		9,658,979			2,779,641			45,973			879,469			730,707			(6,219,310	)		(8,496	)		7,866,963
Intangible		2,996,846			3,928,900			83,597			604,963			780,822			-			(3,462,873	)		4,932,255
Loans and Long term debt, net of cash and equivalent cash		(4,404,761	)		(603,447	)		29,834			(217,575	)		(706,063	)		2,504,104			-			(3,397,908	)
Other assets and liabilities, net		1,839,138			252,124			142,455			(52,175	)		9,449,796			(1,045,631	)		(10,370,643	)		215,063
Total assets (net of liabilities) allocated by segment		10,090,202			6,357,219			301,859			1,214,682			10,255,262			(4,760,837	)		(13,842,013	)		9,616,374
Total asset		19,979,070			11,559,239			408,966			2,029,954			15,994,737			(15,769,155	)		(12,078,676	)		22,124,135
Profit (loss) for the year:
Net Operating Income		7,247,685			35,096,051			706,431			571,989			1,065,515			(19,711,867	)		(878,923	)		24,096,881
Domestic Market		3,925,829			35,096,051			706,431			567,265			1,065,515			(18,166,988	)		(878,923	)		22,315,180
Foreign Market		3,321,856			-			-			4,724			-			(1,544,879	)		-			1,781,701
Gross profit		1,668,941			1,958,726			129,073			177,923			332,646			(1,635,437	)		-			2,631,872
Selling, general and administrative expenses		(965,440	)		(1,445,358	)		(96,001	)		(41,541	)		(320,343	)		1,090,503			-			(1,778,180	)
Other operating income, net		-			-			-			-			3,196,632			-			-			3,196,632
Financial income, net		(18,207	)		270,736			23,114			19,461			(12,035	)		(129,023	)		(8,496	)		145,550
Income tax and social contribution		(267,934	)		(82,203	)		1,911			8,992			(356,292	)		221,386			-			(474,140	)
Net income		(27,250	)		(192,056	)		6,156			(55,035	)		(935,179	)		93,152			-			(1,110,212	)
Profit (loss) for the year:		378,269			525,916			64,253			109,801			2,775,139			(353,500	)		(855,088	)		2,644,790
Other selected information:
Additions to PP&E, intangible assets and biological assets (cash)		2,577,859			491,734			2,860			268,985			99,473			(1,291,124	)		(13,270	)		2,136,517
Depreciation and amortization (including the effect of biological assets)		1,549,993			365,603			1,716			57,323			48,329			(880,184	)		-			1,142,780

	2011
	Raizen Energia (*)			Raizen Combustiveis (*)			Rumo			Cosan other business			Adjustments / Eliminations			Consolidated
Balance Sheet:
Property, plant and equipment		5,962,230			862,185			931,997			224,112			-			7,980,524
Intangible		1,644,350			528,653			358,287			914,384			-			3,445,674
Loans and Long term debt, net of cash and equivalent cash		(4,723,833	)		(589,229	)		(99,829	)		(524,334	)		-			(5,937,225	)
Other assets and liabilities, net		(1,826,735	)		(238,736	)		(173,826	)		6,655,159			(3,120,489	)		1,295,373
Total assets (net of liabilities) allocated by segment		1,056,012			562,873			1,016,629			7,269,321			(3,120,489	)		6,784,346
Total asset		8,567,722			1,777,299			1,713,112			9,915,149			(3,228,626	)		18,744,656
Profit (loss) for the year:
Net Operating Income		6,389,178			10,966,245			448,003			829,032			(568,978	)		18,063,480
Domestic Market		3,678,207			10,966,245			448,003			829,032			(568,978	)		15,352,509
Foreign Market		2,710,971			-			-			-			-			2,710,971
Gross profit		1,988,662			466,989			131,469			314,131			12,150			2,913,401
Selling, general and administrative expenses		(961,407	)		(372,438	)		(28,951	)		(202,570	)		(1,636	)		(1,567,002	)
Other operating income, net		(65,415	)		33,754			9,936			(1,977	)		(10,126	)		(33,828	)
Financial income, net		(101,755	)		(22,441	)		13,047			(35,539	)		-			(146,688	)
Income tax and social contribution		(305,977	)		(40,490	)		(42,865	)		(25,176	)		-			(414,508	)
Net income		833,343			(126,368	)		62,543			240,611			(238,564	)		771,565
Other selected information:
Additions to PP&E, intangible assets and biological assets (cash)		2,817,195			83,266			126,189			10,569			-			3,037,219
Depreciation and amortization (including the effect of biological assets)		1,266,142			35,798			20,157			36,903			-			1,359,000

(*) The information of Raízen Energia and Raízen Combustíveis represents 100% of the business, regardless of whether the Company has lost full control of business June 1, 2011 when the formation of JVs occurred. The segment called Raízen Energia is basically the same information as in previous years for the segment called "CAA". The segment Raizen Combustíveis accounts for up to 31 May 2011 the business of the old fuel segment called CCL, except lubricants and since then also fuels business of Shell Brazil Ltda. have been contributed to the JV already mentioned.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

All non-current assets of the Company are located in Brazil except for certain equity interests.

Detailed net Sales per segment:

	2012			2011
Raízen Energia
Sugar		3,912,824			3,853,404
Ethanol		2,871,515			2,203,737
Cogeneration		235,129			194,889
Other		228,217			137,148
		7,247,685			6,389,178
Raízen Combustiveis
Combustível		35,032,782			10,895,655
Other		63,269			70,590
		35,096,051			10,966,245
Alimentos
Amorphous		631,532			-
Crystal		39,013			-
Other		35,885			-
		706,430			-
Rumo
Elevation		141,026			118,139
Transports		413,364			305,780
Other		17,598			24,084
		571,988			448,003
Cosan – other business
Lubrificantes		1,018,801			829,032
Other		46,714			-
		1,065,515			829,032

Adjustments / Eliminations		(20,590,788	)		(568,978	)

Total		24,096,881			18,063,480

b)	Net Sales per region

The percentage of net sales of the Raízen Energia segment by geographic area for the years ended are as follows:

	2012			2011
Brazil		67.24	%		72.63	%
Europe		24.18	%		24.93	%
Latin America (Except Brazil)		3.52	%
Middle East and Asia		1.00	%		1.48	%
North America		2.94	%		0.74	%
Other		1.12	%		0.22	%
Total		100.00	%		100.00	%

The net sales from segments Raízen Combustíveis, Rumo and Cosan Alimentos are derived only from the domestic market (Brazil), with no revenue from foreign customers.

COSAN S.A. INDÚSTRIA E COMÉRCIO

Notes to the consolidated financial statement

Years ended March 31, 2012 and 2011

(In thousands of Reais, except otherwise stated)

c)	Concentration of customers

Raizen Energia

There are several clients in this segment, one of which represents more than 10% of the segment net sales during 2012 and 2011-- the SUCDEN Group (10% and 25%, respectively).

Raizen Combustíveis

In this segment there are no clients that represent more than 10% of the net sales.

Rumo

In 2012, 55% of the segment net sales were generated from sales to the Raizen Energia segment (33% in 2011).

Cosan Other businesses

No customers or specific groups represent 10% or more of sales in 2012 and 2011.

30.	Subsequent Events

a.	Companhia de Gas de Sao Paulo - Comgás

On May 3, 2012, Cosan S.A. signed a memorandum of understanding with BG Group (British Gas) to acquire its interest of 60.1% on Companhia de Gas de Sao Paulo – Comgás for R$3.3 billion.

On May 28, 2012, Cosan S.A. signed the purchase and sale agreement in connection with this transaction. This acquisition will be effected upon regulatory approval.

b.	Association with Camil Alimentos S.A. – Camil

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		COSAN LIMITED
Date:	June 4, 2012	By:	/s/ Marcelo Eduardo Martins
			Name:	Marcelo Eduardo Martins
			Title:	Chief Financial Officer and Investor Relations Officer