Cosan 6-K Current report (foreign)

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 August, 2015

Commission File Number: 1-33659

COSAN LIMITED

(Translation of registrant’s name into English)

Av. Juscelino Kubitschek, 1327 – 4^th 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 X  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 No X 

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 No X

COSAN LIMITED

Item
1.	Earnings Release 2015
2.	Cosan Limited Consolidated interim financial statements at June 30, 2015 and independent auditors’ review report

Item 1

 

EARNINGS RELEASE 2Q15

São Paulo, August 12, 2015–COSAN LIMITED(NYSE: CZZ eBM&FBovespa: CZLT33)announces today its results for the second quarter of 2015 (2Q15) composed by April, May and June 2015. The results are consolidated in accordance with the accounting principles adopted in Brazil and internationally (IFRS).

Financial Highlights

Summary of Financial Information	2Q15	2Q14	Chg.%	1Q15	Chg.%
Amount in BRL MM	(Apr-Jun)	(Apr-Jun)	2Q15 x 2Q14	(Jan-Mar)	2Q15 x 1Q15
Net Revenue	3,333.2	2,246.0	48.4%	2,141.1	55.7%
Gross Profit	1,165.6	700.9	66.3%	549.8	n/a
Gross Margin (%)	35.%	31.2%	3.8 p.p.	25.7%	9.3 p.p.
Operating Profit	749.0	240.0	n/a	51.3	n/a
EBITDA	1,157.7	575.0	n/a	369.7	n/a
EBITDA Margin (%)	34.7%	25.6%	9.1 p.p.	17.3%	17.5 p.p.
Equity Pick-up	91.9	164.3	-44.1%	153.1	-40.%
Net Income before non-controlling Interest	149.0	183.3	-18.7%	25.7	n/a
Net Income	6.5	38.7	-83.2%	9.5	-31.6%
Net Margin (%)	0.2%	1.7%	-1.5 p.p.	0.4%	-0.2 p.p.

Earnings Conference Call

COSAN S/A (CSAN3)

Portuguese – 9 am (US EST)

August 13 2015 (Thursday)

Tel: + 55 11 3193 1001

+ 55 11 2820 4001

Code: COSAN

English – 10 am (US EST)

August 13 2015 (Thursday)

Tel (BR): + 55 11 3193 1001

+ 55 11 2820 4001

Tel (EUA): +1 786 924 6977

Code: COSAN

COSAN LOGÍSTICA S/A (RLOG3)

Portuguese – 1 pm (US EST)

August 13 2015 (Thursday)

Tel: + 55 11 3193 1001

+ 55 11 2820 4001

Code: RUMO

English – 2 pm (US EST)

August 13 2015 (Thursday)

Tel (BR): + 55 11 3193 1001

+ 55 11 2820 4001

Tel (EUA): +1 786 924 6977

Code: RUMO

Investor Relations E-mail: ri@cosan.com.br Telephone: +55 11 3897-9797 Website: ri.cosan.com.br  

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  Cosan Limited - Press Release 2nd quarter of the Fiscal Year 2015

Business Units

We list below the business units of Cosan S/A and Cosan Logística S/A, companies that comprise Cosan Limited’s portfolio.

The business units (reportable segments) are organized as follows:

o	Cosan S.A.	Raízen Energia
		Raízen Combustíveis
		Comgás
		Lubrificantes
		Radar
		Outros Negócios
o	Cosan Logística S.A.	Rumo Logística

Cosan Limited Consolidated Result

The Company's subsidiariesCosan S/A Indústria e Comércio (BM&FBovespaCSAN3)and Cosan Logístisca S/A (BM&FBovespa RLOG3)reported their results onAugust 13 2015. The full Earnings Releases with main financial and operational information, in addition to the quarterly financial statements, can be found on their websites:

o Cosan - Investor Relations

o Cosan Logística - Investor Relations

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  Cosan Limited - Press Release 2nd quarter of the Fiscal Year 2015

We present below the 2Q15 results by business segment as previously detailed. All information reflect 100% of their financial performance, regardless of Cosan Limited’s stake. For reconciliation purposes of the consolidated EBITDA, the Adjustments and Eliminations column refers to the elimination of net profits of the business controlled by Cosan for consolidation purposes.

Results by Business Unit (BRL mm)2Q15	Raízen Combustíveis	Raízen Energia	Comgás	Lubricants	Radar	Other Businesses	Adjusts andEliminations	Deconsolidated effects IFRS 11	Cosan S A	Cosan Limited (parentcompany)	Cosan Logística	Adjusts andEliminations	Cosan Limited
Net Revenue	14,793.9	1,646.9	1,671.0	424.1	26.9	0.0	-	(16,440.8)	2,122.0	-	1,220.3	(9.1)	3,333.2
Cost of Goods and Services	(14,134.5)	(1,477.8)	(1,090.9)	(314.3)	(5.5)	(0.0)	-	15,612.3	(1,410.7)	-	(766.0)	9.1	(2,167.6)
Gross Profit	659.4	169.1	580.1	109.8	21.4	0.0	-	(828.5)	711.3	-	454.3	-	1,165.6
Gross Margin(%)	4.5%	10.3%	34.7%	25.9%	79.5%	96.3%	n/a	5.0%	33.5%	n/a	37.2%	- %	35.0%
Selling Expenses	(281.1)	(88.1)	(150.7)	(70.4)	-	-	-	369.2	(221.0)	-	(0.0)	-	(221.0)
General and Administrative Expenses	(97.2)	(121.2)	(73.9)	(17.4)	(7.0)	(44.4)	-	218.4	(142.6)	(6.1)	(84.8)	-	(233.5)
Other Operating Revenues (Expenses)	82.6	(24.3)	(1.8)	0.2	6.5	(6.8)	-	(58.3)	(1.9)	-	39.8	-	37.9
Equity Pick-up	3.1	(11.4)	-	(2.1)	(0.0)	221.8	(127.9)	8.4	91.7	37.8	0.2	(37.8)	91.9
Depreciation and Amortization	147.7	336.4	119.7	18.9	0.2	1.1	-	(484.1)	139.9	-	176.9	-	316.8
EBITDA	514.5	260.5	473.5	39.1	21.1	171.7	(127.9)	(775.0)	577.4	31.7	586.4	(37.8)	1,157.7
EBITDA Margin (%)	3.5%	15.8%	28.3%	9.2%	78.4%	n/a	n/a	4.7%	27.2%	n/a	48.1%	- %	34.7%
Financial income	(47.1)	(195.1)	(92.8)	(13.0)	(0.4)	(183.7)	4.2	242.2	(285.7)	(8.6)	(355.0)	-	(649.2)
Financial expense	41.5	152.4	41.9	1.0	2.3	32.9	(4.2)	(193.9)	74.0	0.0	47.9	-	122.0
Foreign exchange gain (losses), net	28.1	145.2	46.1	3.0	-	58.5	-	(173.4)	107.5	(9.4)	(0.1)	-	98.1
Derivatives	(56.8)	(91.6)	(53.5)	(3.7)	-	(99.5)	-	148.3	(156.7)	(7.1)	(15.9)	-	(179.7)
Income taxes expenses	(117.1)	38.7	(100.1)	(3.3)	(3.5)	70.5	-	78.4	(36.4)	-	(46.6)	-	(83.0)
Non-controlling interests	(7.0)	-	-	-	-	-	(90.9)	7.0	(90.9)	-	(25.4)	(22.6)	(138.9)
Profit (loss) for the period	208.3	(26.3)	195.4	4.1	19.4	49.4	(218.8)	(182.1)	49.4	6.5	10.9	(60.4)	6.5

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 such forward-looking statements and estimates.

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  Cosan Limited - Press Release 2nd quarter of the Fiscal Year 2015

Financial Statements

Cosan Limited (CZZ)

Cosan Limited	2Q15	2Q14	Chg.%
Income Statement for the period in (BRL mm)	(Apr - Jun)	(Apr - Jun)	2Q15 x 2Q14
Net Operating Revenue	3,333,241	2,246,009	48.4%
Gross Profit	1,165,604	700,934	66.3%
Sales, general and administrative expenses	(454,541)	(394,693)	15.2%
Other operating income (expenses), net	37,920	(66,197)	n/a
Financial revenue	121,956	74,420	63.9%
Financial expenses	(649,236)	(321,994)	n/a
Foreign exchange variation	98,078	20,822	n/a
Derivative	(179,704)	(12,106)	n/a
Equity pick up	91,930	164,331	-44.1%
Income and Social Contribution Taxes	(83,001)	17,817	n/a
Equity attributable to non-controlling interests	(138,897)	(144,586)	-3.9%
Net Income from discontinued operations	3,582	-	n/a
Net Income (loss)	6,528	38,747	-83.2%
Cosan Limited	2Q15	1Q15
Balance Sheet (BRL mm)	(Apr - Jun)	(Jan - Mar)
Cash and Cash Equivalents	2,531,947	2,122,385
Securities	725,916	159,200
Accounts Receivable	985,703	808,616
Inventories	439,184	324,701
Other Current Assets	833,905	443,305
Investments	8,695,359	8,642,451
Investment Property	2,643,211	2,649,976
Property, Plant and Equipment	9,186,721	1,510,363
Intangible	17,211,442	10,266,512
Other Non-Current Assets	4,733,673	2,576,778
Total Assets	49,554,217	31,299,536
Loans and Financing	(16,546,239)	(9,860,253)
Suppliers	(2,015,638)	(1,373,919)
Salaries Payable	(212,046)	(77,096)
Other current liabilities	(1,317,429)	(354,595)
Other non-current liabilities	(12,578,266)	(5,657,644)
Net Equity	(16,236,873)	(13,383,991)
Total Liabilities	(49,554,217)	(31,299,536)

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  Cosan Limited - Press Release 2nd quarter of the Fiscal Year 2015

Cosan Industria e Comércio S/A (CSAN3)

Cosan Energia	2Q15	2Q14	Chg.%
Income Statement for the period	(Apr - Jun)	(Apr - Jun)	2Q15 x 2Q14
Net Operating Revenue	2,122,027	2,055,528	3.2%
Gross Profit	711,317	639,022	11.3%
Sales, general and administrative expenses	(363,632)	(357,366)	1.8%
Other operating income (expenses), net	(1,911)	(58,015)	-96.7%
Financial revenue	74,036	63,413	16.8%
Financial expenses	(285,655)	(283,147)	0.9%
Foreign exchange variation	107,547	23,811	n/a
Derivative	(156,689)	(7,459)	n/a
Equity pick up	91,749	164,331	-44.2%
Income and Social Contribution Taxes	(36,427)	20,251	n/a
Equity attributable to non-controlling interests	(90,886)	(105,474)	-13.8%
Net Income from discontinued operations	-	4,779	-100.0%
Net Income (loss)	49,447	104,147	-52.5%
Cosan Energia	2Q15	1Q15
Balance Sheet	(Apr - Jun)	(Jan - Mar)
Cash and Cash Equivalents	2,020,616	1,861,592
Securities	191,487	159,200
Accounts Receivable	828,679	785,840
Inventories	332,394	317,790
Other Current Assets	400,891	450,107
Investments	8,654,294	8,642,451
Investment Property	2,643,211	2,649,976
Property, Plant and Equipment	372,858	370,970
Intangible	9,410,069	9,417,620
Other Non-Current Assets	2,018,580	2,032,330
Total Assets	28,399,821	28,407,779
Loans and Financing	(8,221,860)	(8,384,823)
Suppliers	(1,313,803)	(1,192,167)
Salaries Payable	(77,604)	(62,518)
Other current liabilities	(355,452)	(307,734)
Other non-current liabilities	(5,446,345)	(5,430,995)
Net Equity	(12,362,650)	(12,437,504)
Total Liabilities	(28,399,821)	(28,407,779)

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  Cosan Limited - Press Release 2nd quarter of the Fiscal Year 2015

Cosan Logística S/A (RLOG3)

Cosan Logística	2Q15	2Q14
Income Statement for the period	(Apr - Jun)	(Apr - Jun)
Net Operating Revenue	1,220,285	190,481
Gross Profit	454,287	61,912
Sales, general and administrative expenses	(84,782)	(22,763)
Other operating income (expenses), net	39,831	(8,182)
Financial revenue	47,898	9,992
Financial expenses	(354,971)	(34,063)
Foreign exchange variation	(58)	169
Derivative	(15,872)	-
Equity pick up	181	0
Income and Social Contribution Taxes	(46,573)	(2,435)
Equity attributable to non-controlling interests	(25,438)	(1,046)
Net Income from discontinued operations	3,582	-
Net Income (loss)	10,920	3,584
Cosan Logística	2Q15	1Q15
Balance Sheet	(Apr - Jun)	(Jan - Mar)
Cash and Cash Equivalents	508,474	251,102
Securities	534,429	-
Accounts Receivable	157,024	22,776
Inventories	106,790	6,911
Other Current Assets	461,756	22,364
Investments	41,066	0
Property, Plant and Equipment	8,813,863	1,139,393
Intangible	7,801,373	848,892
Other Non-Current Assets	2,715,086	544,442
Total Assets	21,153,730	2,876,370
Loans and Financing	(7,965,805)	(1,119,754)
Loans and financing -CP	(1,094,348)	(132,521)
Loans and financing -LP	(6,871,457)	(987,234)
Suppliers	(701,835)	(181,753)
Salaries Payable	(134,442)	(14,578)
Other current liabilities	(971,551)	(71,000)
Other non-current liabilities	(7,131,921)	(226,649)
Net Equity	(4,222,558)	(1,262,637)
Total Liabilities	(21,153,730)	(2,876,370)

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Item 2

Cosan Limited

Consolidated interim financial statements at

June 30, 2015 and independent

auditors’ review report

Cosan Limited

Consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

Contents

Independent auditors’ report on review of interim financial statements	3
Consolidated statements of financial position	5
Consolidated statements of profit or loss and other comprehensive income (loss)	7
Statements of changes in shareholders’ equity	9
Consolidated statements of cash flows	11
Notes to the consolidated interim financial statements	13

2 

Independent auditors’ report on review of interim financial statements

To the Board of Directors and Shareholders

Cosan Limited

Introduction

We have reviewed the accompanying consolidated interim financial information of Cosan Limited (“The Company”), contained in the Quarterly Information Form - ITR for the quarter ended June 30, 2015, which comprises the statement of financial position as of June 30, 2015 and the respective statements of profit or loss and comprehensive income (loss) for the three and six month periods then ended, and changes in shareholders’ equity and cash flows for the six month period then ended, including the footnotes.

Management is responsible for the preparation of the consolidated interim financial information in accordance with the international standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, such as for the presentation of this information in accordance with the regulations of the Brazilian Securities Commission - CVM, applicable to the preparation of Quarterly Information - ITR. Our responsibility is to express a conclusion on these consolidated interim financial information based on our review.

Review scope

We conducted our review in accordance with the Brazilian and International standards on reviews of interim information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries, primarily of persons responsible for the financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the audit standards and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the consolidated interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial information included in the Quarterly Information - ITR referred to above has not been prepared, in all material respects, in accordance with IAS 34 applicable to the preparation of Quarterly Information - ITR, and presented in accordance with the regulations of the Brazilian Securities Commission – CVM.

3 

Other Matter

Corresponding values

The consolidated financial information for the year ended December 31, 2014 and the consolidated interim financial information for the three and six month periods ended June 30, 2014, presented for comparative purposes, were audited and reviewed, respectively, by other independent auditors, who issued an unqualified audit report on March 18, 2015 and an unqualified review report on August 13, 2014, respectively

São Paulo, August 7, 2015

/s/ KPMG Auditores Independentes

KPMG Auditores Independentes

CRC 2SP014428/O-6

/s/ Carlos Augusto Pires

Carlos Augusto Pires

Contador CRC 1SP184830/O-7

4 

Cosan Limited

Consolidated statements of financial position

(In thousands of Brazilian Reais - R$)

	Note		June 30, 2015		December 31, 2014
Assets
Cash and cash equivalents		5		2,531,947		1,649,340
Investment securities				725,916		149,735
Trade receivables		6		985,703		865,109
Derivative financial instruments		26		152,733		30,069
Inventories				439,184		353,720
Receivables from related parties		8		55,984		38,357
Income tax receivable				64,327		94,100
Other current tax receivable				397,152		78,818
Other trade receivables		7		74,985		69,683
Dividends receivable				47,352		36,130
Assets held for sale		11		42,728		25,089
Other current assets				151,379		174,957
Total current assets				5,669,390		3,565,107
Trade receivables		6		120,856		480,992
Restricted cash				148,326		—
Deferred tax assets		19		1,602,619		214,164
Receivables from related parties		8		197,520		212,527
Income tax receivable				175,028		8,778
Other non-current tax receivable				488,835		17,299
Judicial deposits		20		757,031		418,385
Other trade receivables		7		345,236		370,497
Derivative financial instruments		26		1,414,421		860,509
Other non-current assets				898,224		648,669
Investment in associates		9		177,638		130,677
Investment in joint ventures		10		8,517,721		8,404,503
Investment property		11		2,643,211		2,641,978
Property, plant and equipment		12		9,186,721		1,435,890
Intangible assets and goodwill		13		17,211,442		10,286,373
Total non-current assets				43,884,829		26,131,241
Total assets				49,554,219		29,696,348
The accompanying notes are an integral part of these consolidated interim financial statements.

5 

Cosan Limited

Consolidated statements of financial position

(In thousands of Brazilian Reais - R$)

	Note		June 30, 2015			December 31, 2014
Liabilities
Loans, borrowings and debentures		14		2,353,182			1,056,353
Leases		15		443,433			—
Advances on real estate credits				143,283			—
Derivative financial instruments		26		120,129			13,803
Trade payables		17		2,015,638			1,112,459
Employee benefits payable				212,046			120,416
Income tax payable				27,446			30,905
Other taxes payable		18		170,336			307,741
Leases and concessions		16		19,300			—
Dividends payable				18,363			33,354
Payables to related parties		8		111,226			137,441
Other current liabilities				384,042			158,471
Total current liabilities				6,018,424			2,970,943
Loans, borrowings and debentures		14		14,193,057			7,446,287
Leases		15		1,350,327			—
Advances on real estate credits				177,127			—
Derivative financial instruments		26		527,595			319,632
Trade payables		17		1,110			—
Other taxes payable		18		531,955			334,565
Provision for legal proceedings		20		1,248,432			657,779
Leases and concessions		16		2,030,247			—
Pension and post-employment benefits		28		312,047			301,850
Deferred tax liabilities		19		4,149,807			1,739,274
Preferred shareholders payable in subsidiaries		21		2,050,181			1,926,888
Deferred revenue				108,173			—
Other non-current liabilities				618,860			509,823
Total non-current liabilities				27,298,918			13,236,098
Total liabilities				33,317,342			16,207,041
Shareholders' equity		22
Share capital				5,328			5,328
Additional paid in capital				4,004,253			3,887,109
Other comprehensive loss				(190,860	)		(165,618	)
Retained earnings				2,039,561			2,117,739
Equity attributable to owners of the parent				5,858,282			5,844,558
Non-controlling interests		9		10,378,595			7,644,749
Total shareholders' equity				16,236,877			13,489,307
Total shareholders' equity and liabilities				49,554,219			29,696,348

The accompanying notes are an integral part of these consolidated interim financial statements.

6 

Cosan Limited

Consolidated statements of profit or loss and other comprehensive income (loss)

For the three and six month periods ended June 30, 2015 and 2014

(In thousands of Brazilian Reais – R$, except earnings per share) 

			April 1, 2015 to			January 1, 2015			April 1, 2014 to			January 1, 2014
	Note		June 30, 2015			to June 30, 2015			June 30, 2014			to June 30, 2014
Net sales				3,333,241			5,474,365			2,246,009			4,403,195
Cost of sales				(2,167,637	)		(3,758,978	)		(1,545,075	)		(3,065,869	)
Gross profit				1,165,604			1,715,387			700,934			1,337,326
Selling expenses				(221,034	)		(440,361	)		(224,284	)		(430,904	)
General and administrative expenses				(233,506	)		(413,318	)		(170,408	)		(317,985	)
Other expense, net		25		37,919			(61,404	)		(66,197	)		(98,989	)
Operating expense				(416,621	)		(915,083	)		(460,889	)		(847,878	)
Income before financial results, equity
in earnings of investees and income taxes				748,983			800,304			240,045			489,448
Equity in earnings of investees
Equity in earnings of associates		9		1,656			(2,978	)		1,858			667
Equity in earnings of joint ventures		10		90,274			248,045			162,473			385,465
				91,930			245,067			164,331			386,132
Financial results		24
Finance expense				(649,236	)		(940,848	)		(321,994	)		(507,459	)
Finance income				121,956			191,747			74,420			122,771
Foreign exchange (losses) gains, net				98,078			(493,756	)		20,822			96,559
Derivatives				(179,704	)		375,528			(12,106	)		(73,187	)
				(608,906	)		(867,329	)		(238,858	)		(361,316	)
Profit before taxes				232,007			178,042			165,518			514,264
Income tax (expense) benefit		19
Current				(115,853	)		(120,691	)		(35,688	)		(66,227	)
Deferred				32,853		��	117,382			53,504			24,482
				(83,000	)		(3,309	)		17,816			(41,745	)
Profit from continuing operations				149,007			174,733			183,334			472,519
Loss from discontinued operations, net of tax		30		(3,582	)		(3,582	)		—			—
Profit for the period				145,425			171,151			183,334			472,519
Other comprehensive income (loss)		22
Items that will not be reclassified to profit or loss:
Actuarial loss on defined benefit plan				—			—			(1,058	)		(1,417	)
Taxes on items that will not
be reclassified to profit or loss				—			—			360			482
				—			—			(698	)		(935	)
Items that may be reclassified to profit or loss:
Foreign currency translation effect				13,649			(67,037	)		6,687			3,164
Gain (loss) on cash flow hedge in
joint ventures and subsidiary				35,793			56,528			33,027			(41,380	)
Changes in fair value of
available for sale securities				3,512			4,998			1,635			2,547
Taxes on items that may be
reclassified to profit or loss				(1,568	)		(2,073	)		(11,785	)		13,203
				51,386			(7,584	)		29,564			(22,466	)
Total other comprehensive
loss, net of tax				51,386			(7,584	)		28,866			(23,401	)
Total comprehensive income				196,811			163,567			212,200			449,118

7 

Cosan Limited

Consolidated statements of profit or loss and other comprehensive income (loss)

For the three and six month periods ended June 30, 2015 and 2014

(In thousands of Brazilian Reais – R$, except earnings per share)

Net income attributable to:
Owners of the Parent (including
discontinued operations)			6,528		16,067			38,748		179,553
Non-controlling interests			138,897		155,084			144,586		292,966
Total comprehensive
income (loss) attributable to:
Owners of the Parent			41,285		(9,174	)		59,392		170,217
Non-controlling interests			155,526		172,741			152,808		278,901
Basic earnings per share	23
Continuing operations		R$	0.03	R$	0.06		R$	0.15	R$	0.68
Discontinued operations		R$	(0.00)	R$	0.00		R$	0.00	R$	0.00
		R$	0.03	R$	0.06		R$	0.15	R$	0.68
Diluted earnings per share	23
Continuing operations		R$	(0.03)	R$	0.00		R$	0.06	R$	0.51
Discontinued operations		R$	(0.00)	R$	(0.00)		R$	0.00	R$	0.00
		R$	(0.03)	R$	0.00		R$	0.06	R$	0.51

The accompanying notes are an integral part of these consolidated interim financial statements.

8 

Cosan Limited

Statements of changes in shareholders’ equity

For the six months period ended June 30, 2015 and 2014

(In thousands of Brazilian Reais - R$)

			Capital reserve									Equity
			Additional			Other						attributable			Non-
	Share		paid in			comprehensive			Retained			to owners			controlling			Total
	capital		capital			(loss) income			earnings			of the parent			interests			equity
At January 1, 2015		5,328		3,887,109			(165,618	)		2,117,739			5,844,558			7,644,749			13,489,307
Profit for the period		—		—			—			16,068			16,068			155,084			171,152
Other comprehensive income
Foreign currency translation effects		—		—			(60,767	)		—			(60,767	)		(6,270	)		(67,037	)
Gain on cash flow hedge in
joint ventures and subsidiary		—		—			35,102			—			35,102			21,052			56,154
Changes in fair value of
available for sale Securities		—		—			423			—			423			2,876			3,299
Total comprehensive income for the period		—		—			(25,242	)		16,068			(9,174	)		172,742			163,568
Contributions by and distributions to
owners of the Parent
Dividends - non-controlling interests		—		(1,965	)		—			—			(1,965	)		(1,179	)		(3,144	)
Share based compensation - Subsidiaries		—		3,664			—			—			3,664			2,195			5,859
Dividends		—		—			—			(94,246	)		(94,246	)		(237,586	)		(331,832	)
Total contributions by and
distributions to owners of the Parent		—		1,699			—			(94,246	)		(92,547	)		(236,570	)		(329,117	)
Transactions with owners of the Parent
Acquisition of non-controlling interest		—		409			—			—			409			(12,594	)		(12,185	)
Business combination ALL		—		118,937			—			—			118,937			2,831,469			2,950,406
Share buy-back costs - Rumo		—		(3,901	)		—			—			(3,901	)		(21,201	)		(25,102	)
Total transactions with owners of the Parent		—		115,445			—			—			115,445			2,797,674			2,913,119
At June 30, 2015		5,328		4,004,253			(190,860	)		2,039,561			5,858,282			10,378,595			16,236,877

The accompanying notes are an integral part of these consolidated interim financial statements.

9 

Cosan Limited

Statements of changes in shareholders’ equity

For the six months period ended June 30, 2015 and 2014

(In thousands of Brazilian Reais - R$) 

			Capital reserve									Equity
			Additional			Other						attributable			Non-
	Share		paid in			comprehensive			Retained			to owners			controlling			Total
	capital		capital			(loss) income			earnings			of the parent			interests			equity
At January 1, 2014		5,328		3,828,858			(84,887	)		2,136,975			5,886,274			7,433,490			13,319,764
Profit for the period		—		—			—			179,553			179,553			292,966			472,519
Other comprehensive income
Foreign currency translation effects		—		—			7,697			—			7,697			(4,533	)		3,164
Loss on cash flow hedge in
joint ventures and subsidiary		—		—			(17,015	)		—			(17,015	)		(10,296	)		(27,311	)
Actuarial loss on defined benefit plan		—		—			(372	)		—			(372	)		(563	)		(935	)
Changes in fair value of
available for sale Securities		—		—			354			—			354			1,327			1,681
Total comprehensive income for the period		—		—			(9,336	)		179,553			170,217			278,901			449,118
Contributions by and distributions to
owners of the Parent
Share options exercised - Subsidiaries		—		3,055			—			—			3,055			1,849			4,904
Dividends - non-controlling interests		—		458			—			—			458			—			458
Share based compensation - Subsidiaries		—		3,194			—			—			3,194			1,932			5,126
Dividends		—		—			—			(92,071	)		(92,071	)		(115,433	)		(207,504	)
Total contributions by and distributions to
owners of the Parent		—		6,707			—			(92,071	)		(85,364	)		(111,652	)		(197,016	)
Transactions with owners of the Parent
Acquisition of non-controlling interest		—		(820	)		—			—			(820	)		3,018			2,198
Acquisition cost of the preferred		—		—			—			—			—			—			—
shares of subsidiaries		—		(22,513	)		—			—			(22,513	)		(13,622	)		(36,135	)
Total transactions with owners of the Parent		—		(23,333	)		—			—			(23,333	)		(10,604	)		(33,937	)
At June 30, 2014		5,328		3,812,232			(94,223	)		2,224,457			5,947,794			7,590,135			13,537,929

The accompanying notes are an integral part of these consolidated interim financial statements.

10 

Cosan Limited

Consolidated statements of cash flows

For the six month period ended June 30, 2015 and 2014

(In thousands of Brazilian Reais - R$) 

			January 1, 2015			January 1, 2014
	Note		to June 30, 2015			to June 30, 2014
Cash flows from operating activities
Profit before taxes				178,043			514,264
Adjustments for:
Depreciation and amortization		12 / 13		482,062			331,312
Equity in earnings of associates		9		2,978			(667	)
Equity in earnings of joint ventures		10		(248,045	)		(385,465	)
Loss on disposal of assets				3,096			4,806
Share-based compensation expense		8		5,859			5,126
Change in fair value of investment property		11 / 25		(23,162	)		(44,983	)
Provisions for legal proceedings				23,537			26,230
Indexation charges, interest and
exchange gains/losses, net				988,093			388,300
Other				69,876			45,509
				1,482,337			884,432
Changes in:
Trade receivables				(61,150	)		(129,754	)
Inventories				4,005			7,546
Recoverable taxes				45,880			36,455
Related parties				(60,268	)		(50,595	)
Advances to suppliers				(25,474	)		—
Trade payables				335,339			58,271
Employee benefits				(51,425	)		(42,658	)
Provisions for legal proceedings				(7,360	)		(7,998	)
Judicial deposits				(16,802	)		(1,120	)
Actuarial on defined benefit plan				(11,201	)		(3,949	)
Income and other taxes				(113,194	)		(132,006	)
Other assets and liabilities, net				(119,281	)		(113,721	)
				(80,931	)		(379,529	)
Net cash generated by operating activities				1,401,406			504,903
Cash flows from investing activities
Capital contribution in associates				(48,721	)		(12,667	)
Securities				183,192			—
Restricted cash				74,742			—
Net cash acquired in business combination		3		169,703			—
Dividends received from associates				1,151			1,938
Dividends received from joint ventures				206,425			197,000
Acquisition of property, plant and
equipment and intangible assets				(797,960	)		(458,810	)
Proceeds from sale of property, plant
and equipment, intangibles and investments				1,316			796
Net cash used in investing activities				(210,152	)		(271,743	)

11 

Cosan Limited

Consolidated statements of cash flows

For the six month period ended June 30, 2015 and 2014

(In thousands of Brazilian Reais - R$) 

		January 1, 2015			January 1, 2014
	Note	to June 30, 2015			to June 30, 2014
Cash flows from financing activities
Loans, borrowings and debentures raised			2,382,655			826,607
Payment of loans, borrowings and debentures
Principal			(1,865,705	)		(2,439,439	)
Interest			(488,549	)		(491,106	)
Payment of leases
Principal			(83,372	)		—
Interest			(63,005	)		—
Advances on real estate credits			(33,061	)		—
Derivative financial instruments			203,950			(36,275	)
Share capital paid in preferred shares			—			2,000,000
Dividends paid			(356,430	)		(272,058	)
Treasury shares			(12,185	)		—
Related parties			(3,806	)		—
Proceeds from exercise of share options			—			4,904
Net cash used in financing activities			(319,508	)		(407,367	)
Increase (decrease) in cash and cash equivalents			871,746			(174,207	)
Cash and cash equivalents at beginning of period			1,649,340			1,509,565
Effects of exchange rate changes on cash held			10,861			5,077
Cash and cash equivalents at ended of period			2,531,947			1,340,435
Supplemental cash flow information
Income taxes paid			52,725			82,289
Business combination - non-cash effect			2,537,831			—

The accompanying notes are an integral part of these consolidated interim financial statements.

12 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

 1 Operations

Cosan Limited (“Cosan”) was incorporated in Bermuda on April 30, 2007. Cosan’s class A common shares are traded on the New York Stock Exchange (NYSE) (ticker - CZZ). The BDRs (Brazilian Depositary Receipts) representing Cosan’s class A common shares are listed on the Brazilian Stock Exchange (BM&FBovespa) (ticker - CZLT33). Mr. Rubens Ometto Silveira Mello is the ultimate controlling shareholder of Cosan. Cosan controls its subsidiaries Cosan S.A. Indústria e Comércio (“Cosan S.A.”) and Cosan Logística S.A. (“Cosan Log”) through a 62.51 % and 63.27% interest, respectively. Cosan, Cosan S.A., Cosan Log and its subsidiaries are collectively referred to as the “Company”.

The Company’s primary activities are in the following business segments: (i) Piped natural gas distribution to part of the State of São Paulo through its subsidiary Companhia de Gás de São Paulo – COMGÁS (“COMGÁS”); (ii) Logistics services including transportation, port loading and storage of sugar, leasing or lending of locomotives, wagons and other railway equipment, through its indirect subsidiaries Rumo Logística Operadora Multimodal S.A. and América Latina Logística S.A. (“Cosan Log”); (iii) Purchase, sale and leasing of agricultural land through its subsidiaries, Radar Propriedades Agrícolas S.A. and Radar II Propriedades Agrícolas S.A. ("Radar"); (iv) Production and distribution of lubricants, through its indirect subsidiaries Cosan Lubrificantes e Especialidades S.A. (“CLE”) and Comma Oil & Chemicals Ltd. (“Comma”), under theMobil licensed trademark in Brazil, Bolivia, Uruguay and Paraguay, in addition to the European and Asian market using theComma brand and corporate activities (“Lubricants”); and (v) other investments, in addition to the corporate structures of the Company (“Cosan’s other business”).

The Company also holds interests in two joint ventures ("JVs"): (i) Raízen Combustíveis S.A. (“Raízen Combustíveis”), a fuel distribution business, and (ii) Raízen Energia S.A. (“Raízen Energia”), which operates in the production and marketing of sugar, ethanol and energy cogeneration, produced from sugar cane bagasse.

2 Basis of preparation

2.1 Statement of compliance

The consolidated interim financial statements have been prepared in accordance with IAS 34Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB), and in accordance with the regulations issued by the Brazilian Securities Commission - CVM applicable to the preparation of the Quarterly Information - ITR. They do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company’s financial position and performance since the last annual consolidated financial statements as at and for the year ended December 31, 2014.

The significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended December 31, 2014.

These consolidated interim financial statements were authorized for issue by the Board of Directors on August 6, 2015.

13 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

2.2 Basis of consolidation

The consolidated interim financial statements include the accounts of Cosan and its subsidiaries are listed below:

	Ownership percentage
	June 30, 2015	December 31, 2014
Directly owned subsidiaries
Cosan Logística S.A.(i)	63.27	62.51
Cosan S.A. Indústria e Comércio	62.51	62.51

(i) Change in the ownership interest reflects the buy-back program of its common shares, as per the press release issued on April 7, 2015.

During the 2nd quarter of 2015, Cosan S.A. increased its interest in COMGÁS to 61.33% due to the capital increase arising from the partial use of tax benefit of goodwill according to the COMGÁS "Extraordinary Annual General Meeting" held on April 30, 2015. The Company did not recognize the new ownership percentage, because it is awaiting the end of the deadline for the minorities to exercise their option to purchase additional shares.

2.3 New standards and interpretations not yet adopted

A number of new standards and amendments to standards and interpretations are effective for annual periods beginning after January 1, 2015, and have not been applied in preparing these consolidated financial statements. None of these is expected to have a significant effect on the consolidated financial statements of the Company, except the following:

· IFRS 9, ‘Financial instruments’, addresses the classification, measurement and recognition of financial assets and financial liabilities. IFRS 9 is effective for annual reporting periods beginning on or after January 1, 2018. The Company will also consider the impact of the remaining phases of IFRS 9 when completed by the Board;

· IFRS 15, ‘Revenue from contracts with customers’ deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The standard is effective for annual periods beginning on or after January 1, 2018. The standard replaces IAS 18 ‘Revenue’ and IAS 11 ‘Construction contracts’ and related interpretations. The Company is currently assessing the potential impacts of adopting IFRS 15.

There are no other Standards or Interpretations that are not yet effective that would be expected to have a material impact on the Company.

14 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

3 Business combinations

ALL – América Latina Logística S.A. (“ALL”)

On April 1, 2015, Cosan, through its subsidiary Rumo Logística Operadora Multimodal S.A. (“Rumo”), acquired 100% of the common shares of ALL and started to consolidate the results of operations of ALL as of that date.

The acquisition occurred through the replacement of ALL shares with Rumo shares, at the exchange ratio of 2.879303067 registered, book-entry common shares without par value issued by Rumo for each 1 (one) registered, book-entry common share without par value issued by ALL. Therefore, according to such exchange ratio, 1,963,670,770 registered, book-entry common shares without par value were issued by Rumo, representing 65.67% of Rumo’s shareholders’ equity, attributable to ALL shareholders registered on March 31, 2015, represented by 681,995,165 common shares.

ALL is located in the City of Curitiba, State of Paraná. The Company’s main activities are the railroad transportation related activities and the acquisition, leasing or lending of locomotives, wagons and other railway equipment.

ALL operates railroad transportation in the Southern region of Brazil through ALL – América Latina Logística Malha Sul S.A., and in the Mid-West region and State of São Paulo through its subsidiaries ALL – América Latina Logística Malha Paulista S.A., ALL – América Latina Logística Malha Norte S.A. and ALL – América Latina Logística Malha Oeste S.A..

(i) Consideration transferred

The fair value of the ordinary shares issued was based on the listed share price of the ALL (ticker – ALL3.SA) as at March 31, 2015 of R$ 3.97 per share. Additionally, the value was adjusted by the settlement of pre-existing relationship, as follows:

	In thousands of R$
Equity instruments (681,995,165 common shares)		2,707,534
Settlement of pre-existing relationship		29,838
Total consideration transferred		2,737,372

(a) Settlement of pre-existing relationship

In March 2009, Rumo and ALL entered into an operating agreement (pre-existing relationship) for the supply of sugar transport logistics and other grains from the western of the state of São Paulo to the Port of Santos, in which Rumo has port concessions for lifting services.

According to the terms of the existing agreement, Rumo invested in the construction and improvement of permanent roads under concession of ALL and acquisition of rolling stock for use in the transport of products in the rail network, in order to increase rail freight transport capacity in ALL. In exchange for the Company's investments, the agreement stipulated that ALL should provide a certain capacity of rail transport services, as well as compensate Rumo through the payment of a fee, fixed contractually, per ton of product transported by ALL on the rail network and / or by the use of undercarriage given by Rumo to ALL.

This pre-existing relationship was settled when Rumo acquired ALL. As a result of this settlement, Rumo recorded a gain of R$ 29,838 in the profit or loss as "other operating income".

The fair value of the settlement of pre-existing relationship has been the difference between the value of the investment made by Rumo and the discounted cash flow of the remuneration of such investment, considering the volume and contractually agreed rate.

15 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

(ii) Identifiable assets acquired and liabilities assumed

The following table summarizes the recognized amounts of assets acquired and liabilities assumed at the date of acquisition:

Description
Cash and cash equivalents	169,703
Investment securities	940,689
Trade receivables	407,459
Inventories	84,326
Other credits	1,622,044
Property, plant and equipment	7,225,047
Intangible assets	7,483,232
Loans, borrowings and debentures	(6,639,223	)
Leases	(1,857,947	)
Advances on real estate credits	(340,255	)
Trade payables	(890,153	)
Leases and concessions	(1,974,280	)
Provision for legal proceedings	(554,269	)
Deferred tax liabilities	(1,135,203	)
Other liabilities	(1,560,925	)
Consolidated net assets	2,980,245
Non-controlling interests	(242,873	)
Total identifiable net assets acquired	2,737,372

(a) Measurement of fair value

The valuation techniques used for measuring the fair value were market prices for similar items when they are available, depreciated replacement cost when appropriate, discounted cash flow, and other.

If new information obtained within one year of the date of acquisition about facts and circumstances that existed at the date of acquisition identifies adjustments to the above amounts, or any additional provisions that existed at the date of acquisition, then the accounting for the acquisition will be revised.

Rumo has elected to measure the participation of Brado Holding S.A. (“Brado”) minority shareholders according to the proportion of the non-controlling shareholders’ in the fair value of identifiable net assets of Brado.

Accounts receivable fair value of R$ 407,459 is net of an allowance of R$ 59,506.

The costs related the acquisition were recorded in "other operating expenses" in the profit and loss in the amount of R$ 5,295.

The consolidated statement of profit or loss includes, from the date of acquisition, revenues and net income of R$ 1,124,779 and R$ 54,503, respectively, generated by ALL and its subsidiaries.

If ALL had been consolidated from January 1, 2015, the consolidated statement of profit or loss would present net revenue of R$ 2,190,421 and a net loss of R$ 192,998.

16 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

4 Operating segments

Segment information

The following segment information is used by Cosan's senior management (the “Chief Operating Decision Maker”) to assess the performance of the operating segments and to make decisions with regards to the allocation of resources. This information is prepared on a basis consistent with the accounting policies used in the preparation of the financial statements. Cosan evaluates the performance of its operating segments based on the measure of Earnings Before Interest Tax, Depreciation and Amortization (“EBITDA”). A reconciliation of EBITDA to profit (loss) is presented below.

Operating segments

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 fromsugarcane bagasse. In addition, this segment holds interests in companies engaged in research and development on new technology;

II. Raízen Combustíveis: distribution and marketing of fuels, mainly through a franchised network of service stations under the brandShell throughout Brazil;

III. COMGÁS: distribution of piped natural gas to part of the State of São Paulo (approximately 180 municipalities, including the region called Greater São Paulo) to customers in the industrial, residential, commercial, automotive, thermo generation and cogeneration sectors;

17 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

IV. Cosan Log: logistics services for transport, storage and port loading of commodities, mainly for sugar products, leasing or lending of locomotives, wagons and other railway equipment;

V. Radar: management, buying, selling and leasing of agricultural;

VI. Lubricants: production and distribution of lubricants under the Mobil brand in Brazil, Bolivia, Uruguay and Paraguay, as well as European and Asian market with a Comma trademark; and

VII. Other business: other investments, in addition to the corporate activities of the Company. The other business segment's includes the subsidiaries responsible for raising funds for the group.

Although Raízen Energia and Raízen Combustíveis are equity accounted joint-ventures and are no longer proportionally consolidated since adoption of IFRS 11, senior management continues to review segment information. A reconciliation of these segments is presented in the column “Deconsolidation IFRS 11”.

The following statement of financial position and profit or loss selected information by segment was prepared on the same basis as the accounting practices used in the preparation of consolidated information:

18 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

	April 1, 2015 to June 30, 2015																														Additional information
	Raízen Energia			Raízen Combustíveis			COMGÁS			Radar			Lubricants			Cosan Log			Other business			Deconsolidated effects IFRS 11			Segment elimination			Total consolidated			Cosan Energia			Cosan Log
Statement of profit or loss:
Net sales		1,646,883			14,793,885			1,671,012			26,927			424,088			1,220,285			—			(16,440,768	)		(9,071	)		3,333,241			2,122,027			1,220,285
Domestic market		790,038			14,793,885			1,671,012			26,927			338,505			1,175,685			—			(15,583,923	)		(9,071	)		3,203,058			2,036,444			1,175,685
External market		856,845			—			—			—			85,583			44,600			—			(856,845	)		—			130,183			85,583			44,600
Gross profit		169,103			659,384			580,093			21,397			109,827			454,287			—			(828,487	)		—			1,165,604			711,317			454,287
Selling expenses		(88,087	)		(281,090	)		(150,654	)		—			(70,380	)		—			—			369,177			—			(221,034	)		(221,034	)		—
General and administrative expenses		(121,175	)		(97,231	)		(73,860	)		(6,988	)		(17,385	)		(84,782	)		(50,491	)		218,406			—			(233,506	)		(142,597	)		(84,782	)
Other income (expense), net		(24,342	)		82,634			(1,787	)		6,460			214			39,831			(6,799	)		(58,292	)		—			37,919			(1,911	)		39,831
Financial results		10,958			(34,279	)		(58,294	)		1,979			(12,766	)		(323,003	)		(216,822	)		23,321			—			(608,906	)		(260,761	)		(323,003	)
Financial expense		(195,132	)		(47,074	)		(92,788	)		(351	)		(13,043	)		(354,971	)		(192,261	)		242,206			4,178			(649,236	)		(285,655	)		(354,971	)
Financial income		152,405			41,452			41,910			2,330			1,027			47,899			32,968			(193,857	)		(4,178	)		121,956			74,036			47,899
Foreign exchange losses, net		145,247			28,116			46,063			—			2,960			(59	)		49,114			(173,363	)		—			98,078			107,547			(59	)
Derivatives		(91,562	)		(56,773	)		(53,479	)		—			(3,710	)		(15,872	)		(106,643	)		148,335			—			(179,704	)		(156,689	)		(15,872	)
Equity in earnings of associates		(11,422	)		3,064			—			—			(2,131	)		181			169,310			8,358			(165,704	)		1,656			1,475			181
Equity in earnings of joint ventures		—			—			—			—			—			—			90,274			—			—			90,274			90,274			—
Income tax expense benefit		38,715			(117,122	)		(100,134	)		(3,477	)		(3,318	)		(46,573	)		70,502			78,407			—			(83,000	)		(36,427	)		(46,573	)
Profit (loss) for the period		(26,250	)		215,360			195,364			19,371			4,061			39,941			55,974			(189,110	)		(165,704	)		149,007			140,336			39,941
Other selected data:
Depreciation and amortization		336,430			147,697			119,701			246			18,919			176,885			1,059			(484,127	)		—			316,810			139,925			176,885
EBITDA		260,507			514,458			473,493			21,115			39,064			586,402			203,353			(774,965	)		(165,704	)		1,157,723			577,449			586,402
Additions to PP&E, intangible
and biological assets (cash)		357,555			116,873			122,454			272			6,959			471,631			14,955			(474,428	)		—			616,271			144,639			471,631
Reconciliation of EBITDA:
Profit (loss) for the period		(26,250	)		215,360			195,364			19,371			4,061			39,941			55,974			(189,110	)		(165,704	)		149,007			140,336			39,941
Income tax and social contribution		(38,715	)		117,122			100,134			3,477			3,318			46,573			(70,502	)		(78,407	)		—			83,000			36,427			46,573
Financial result, net		(10,958	)		34,279			58,294			(1,979	)		12,766			323,003			216,822			(23,321	)		—			608,906			260,761			323,003
Depreciation and amortization		336,430			147,697			119,701			246			18,919			176,885			1,059			(484,127	)		—			316,810			139,925			176,885
EBITDA		260,507			514,458			473,493			21,115			39,064			586,402			203,353			(774,965	)		(165,704	)		1,157,723			577,449			586,402

19 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

	January 1, 2015 to June 30, 2015																														Additional information
	Raízen Energia			Raízen Combustíveis			COMGÁS			Radar			Lubricants			Cosan Log			Other business			Deconsolidated effects IFRS 11			Segment elimination			Total consolidated			Cosan Energia			Cosan Log
Statement of profit or loss:
Net sales		4,726,922			28,855,395			3,205,075			48,533			803,931			1,425,897			—			(33,582,317	)		(9,071	)		5,474,365			4,057,539			1,425,897
Domestic market		1,956,396			28,855,395			3,205,075			48,533			644,171			1,352,533			—			(30,811,791	)		(9,071	)		5,241,241			3,897,779			1,352,533
External market		2,770,526			—			—			—			159,760			73,364			—			(2,770,526	)		—			233,124			159,760			73,364
Gross profit		628,316			1,460,805			959,479			41,265			201,094			513,549			—			(2,089,121	)		—			1,715,387			1,201,838			513,550
Selling expenses		(237,160	)		(597,023	)		(305,176	)		—			(135,185	)		—			—			834,183			—			(440,361	)		(440,360	)		—
General and administrative expenses		(261,826	)		(197,502	)		(160,456	)		(14,195	)		(33,532	)		(109,152	)		(95,983	)		459,328			—			(413,318	)		(283,475	)		(109,154	)
Other income (expense), net		14,757			143,560			(3,867	)		20,783			373			39,371			(118,064	)		(158,317	)		—			(61,404	)		(100,775	)		39,371
Financial results		(227,345	)		(21,326	)		(132,251	)		3,671			(8,996	)		(343,402	)		(386,351	)		248,671			—			(867,329	)		(545,475	)		(343,402	)
Financial expense		(399,974	)		(86,029	)		(196,678	)		(705	)		(21,488	)		(365,294	)		(364,683	)		486,003			8,000			(940,848	)		(559,468	)		(365,294	)
Financial income		300,198			79,229			79,224			4,400			1,355			53,551			61,217			(379,427	)		(8,000	)		191,747			138,144			53,551
Foreign exchange losses, net		(460,179	)		(144,690	)		(196,450	)		(24	)		5,575			(56,276	)		(246,581	)		604,869			—			(493,756	)		(460,998	)		(56,276	)
Derivatives		332,610			130,164			181,653			—			5,562			24,617			163,696			(462,774	)		—			375,528			336,847			24,617
Equity in earnings of associates		(17,412	)		7,112			—			—			(7,090	)		181			178,271			10,300			(174,340	)		(2,978	)		(3,159	)		180
Equity in earnings of joint ventures		—			—			—			—			—			—			248,045			—			—			248,045			248,045			—
Income tax expense benefit		81,466			(262,098	)		(131,975	)		(6,821	)		(9,023	)		(51,406	)		195,916			180,632			—			(3,309	)		48,097			(51,406	)
Profit (loss) for the period		(19,204	)		533,528			225,754			44,703			7,641			49,141			21,834			(514,324	)		(174,340	)		174,733			124,736			49,139
Other selected data:
Depreciation and amortization		964,044			287,030			239,152			491			36,847			203,538			2,034			(1,251,074	)		—			482,062			278,522			203,538
EBITDA		1,090,719			1,103,982			729,132			48,344			62,507			647,487			214,303			(2,194,701	)		(174,340	)		1,527,433			900,636			647,485
Additions to PP&E, intangible and biological assets (cash)		1,198,002			358,627			246,020			940			15,264			502,621			33,115			(1,556,629	)		—			797,960			295,339			502,621
Reconciliation of EBITDA:
Profit (loss) for the period		(19,204	)		533,528			225,754			44,703			7,641			49,141			21,834			(514,324	)		(174,340	)		174,733			124,736			49,139
Income tax and social contribution		(81,466	)		262,098			131,975			6,821			9,023			51,406			(195,916	)		(180,632	)		—			3,309			(48,097	)		51,406
Financial result, net		227,345			21,326			132,251			(3,671	)		8,996			343,402			386,351			(248,671	)		—			867,329			545,475			343,402
Depreciation and amortization		964,044			287,030			239,152			491			36,847			203,538			2,034			(1,251,074	)		—			482,062			278,522			203,538
EBITDA		1,090,719			1,103,982			729,132			48,344			62,507			647,487			214,303			(2,194,701	)		(174,340	)		1,527,433			900,636			647,485

20 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

	April 1, 2014 to June 30, 2014																														Additional information
	Raízen Energia			Raízen Combustíveis			COMGÁS			Radar			Lubricants			Rumo			Other business			Deconsolidated effects IFRS 11			Segment elimination			Total consolidated			Cosan Energia			Cosan Log
Statement of profit or loss:
Net sales		1,686,295			13,684,833			1,616,390			35,194			403,946			190,481			(2	)		(15,371,128	)		—			2,246,009			2,055,528			190,481
Domestic market		804,045			13,684,833			1,616,390			35,194			333,431			156,758			(2	)		(14,488,878	)		—			2,141,771			1,985,013			156,758
External market		882,250			—			—			—			70,515			33,723			—			(882,250	)		—			104,238			70,515			33,723
Gross profit		325,518			617,953			525,116			25,108			88,800			61,912			(2	)		(943,471	)		—			700,934			639,023			61,912
Selling expenses		(117,716	)		(301,549	)		(158,421	)		—			(65,864	)		—			—			419,265			—			(224,285	)		(224,286	)		—
General and administrative expenses		(121,002	)		(95,817	)		(76,034	)		(8,496	)		(16,422	)		(22,764	)		(46,691	)		216,819			—			(170,407	)		(133,080	)		(22,764	)
Other income (expense), net		(1,510	)		76,669			(815	)		67,909			(240	)		(8,182	)		(124,869	)		(75,159	)		—			(66,197	)		(58,013	)		(8,182	)
Financial results		13,502			7,474			(47,203	)		2,146			21,924			(23,902	)		(191,823	)		(20,976	)		—			(238,858	)		(203,380	)		(23,902	)
Financial expense		(113,764	)		(43,261	)		(70,770	)		(296	)		(7,473	)		(33,978	)		(212,464	)		157,025			2,987			(321,994	)		(283,146	)		(33,978	)
Financial income		79,801			28,923			23,026			2,442			1,784			9,907			40,248			(108,724	)		(2,987	)		74,420			63,413			9,907
Foreign exchange losses, net		51,162			20,132			(3,106	)		—			35,906			169			(12,147	)		(71,294	)		—			20,822			23,812			169
Derivatives		(3,697	)		1,680			3,647			—			(8,293	)		—			(7,460	)		2,017			—			(12,106	)		(7,459	)		—
Equity in earnings of associates		(5,568	)		2,078			—			—			(2,041	)		—			136,790			3,490			(132,891	)		1,858			1,858			—
Equity in earnings of joint ventures		—			—			—			—			—			—			162,473			—			—			162,473			162,473			—
Income tax expense benefit		18,713			(88,342	)		(83,012	)		(5,113	)		(10,440	)		(2,434	)		118,815			69,629			—			17,816			20,252			(2,434	)
Profit (loss) for the period		111,937			218,466			159,631			81,554			15,717			4,630			54,693			(330,403	)		(132,891	)		183,334			204,847			4,630
Other selected data:
Depreciation and amortization		398,562			128,842			129,663			242			16,830			23,013			873			(527,404	)		—			170,621			147,608			23,013
EBITDA		478,284			428,176			419,509			84,763			21,063			53,979			128,574			(906,460	)		(132,891	)		574,997			535,583			53,979
Additions to PP&E, intangible and biological assets (cash)		566,641			128,790			164,256			215			9,002			83,782			9,386			(695,431	)		—			266,641			182,859			83,782
Reconciliation of EBITDA:
Profit (loss) for the period		111,937			218,466			159,631			81,554			15,717			4,630			54,693			(330,403	)		(132,891	)		183,334			204,847			4,630
Income tax and social contribution		(18,713	)		88,342			83,012			5,113			10,440			2,434			(118,815	)		(69,629	)		—			(17,816	)		(20,252	)		2,434
Financial result, net		(13,502	)		(7,474	)		47,203			(2,146	)		(21,924	)		23,902			191,823			20,976			—			238,858			203,380			23,902
Depreciation and amortization		398,562			128,842			129,663			242			16,830			23,013			873			(527,404	)		—			170,621			147,608			23,013
EBITDA		478,284			428,176			419,509			84,763			21,063			53,979			128,574			(906,460	)		(132,891	)		574,997			535,583			53,979

21 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

	January 1, 2014 to June 30, 2014																														Additional information
	Raízen Energia			Raízen Combustíveis			COMGÁS			Radar			Lubricants			Rumo			Other business			Deconsolidated effects IFRS 11			Segment elimination			Total consolidated			Cosan Energia			Cosan Log
Statement of profit or loss:
Net sales		4,291,128			26,695,789			3,133,770			98,744			772,215			398,415			51			(30,986,917	)		—			4,403,195			4,004,780			398,415
Domestic market		1,796,967			26,695,789			3,133,770			98,744			631,009			335,688			51			(28,492,756	)		—			4,199,262			3,863,574			335,688
External market		2,494,161			—			—			—			141,206			62,727			—			(2,494,161	)		—			203,933			141,206			62,727
Gross profit		817,391			1,288,248			973,527			50,352			167,072			146,315			60			(2,105,639	)		—			1,337,326			1,191,011			146,315
Selling expenses		(280,915	)		(585,017	)		(308,753	)		—			(122,150	)		—			—			865,932			—			(430,903	)		(430,903	)		—
General and administrative expenses		(261,361	)		(200,952	)		(143,164	)		(16,846	)		(33,793	)		(42,738	)		(81,445	)		462,313			—			(317,986	)		(258,203	)		(42,738	)
Other income (expense), net		58,659			178,429			(7,927	)		44,864			170			(1,481	)		(134,615	)		(237,088	)		—			(98,989	)		(97,504	)		17,109
Financial results		77,928			8,135			(103,753	)		5,291			47,190			(20,048	)		(289,996	)		(86,063	)		—			(361,316	)		(313,411	)		(20,048	)
Financial expense		(242,162	)		(63,305	)		(142,160	)		(564	)		35,210			(42,464	)		(363,583	)		305,467			6,102			(507,459	)		(455,807	)		(42,464	)
Financial income		145,712			46,590			38,485			5,855			1,577			22,134			60,822			(192,302	)		(6,102	)		122,771			98,918			22,134
Foreign exchange losses, net		129,946			53,014			32,160			—			25,917			282			38,200			(182,960	)		—			96,559			101,559			282
Derivatives		44,432			(28,164	)		(32,238	)		—			(15,514	)		—			(25,435	)		(16,268	)		—			(73,187	)		(58,081	)		—
Equity in earnings of associates		(15,931	)		7,332			—			—			(3,339	)		—			283,611			8,599			(279,605	)		667			667			—
Equity in earnings of joint ventures		—			—			—			—			—			—			385,465			—			—			385,465			385,465			—
Income tax expense benefit		(77,376	)		(206,361	)		(141,975	)		(7,839	)		(7,665	)		(27,677	)		143,411			283,737			—			(41,745	)		(14,068	)		(27,677	)
Profit (loss) for the period		318,395			489,814			267,955			75,822			47,485			54,371			306,491			(808,209	)		(279,605	)		472,519			463,054			72,961
Other selected data:
Depreciation and amortization		894,416			261,308			247,832			485			36,347			44,728			1,607			(1,155,724	)		—			330,999			286,271			44,728
EBITDA		1,212,259			949,348			761,515			78,855			44,307			146,824			454,683			(2,161,607	)		(279,605	)		1,206,579			1,076,804			165,414
Additions to PP&E, intangible and biological assets (cash)		1,575,698			406,590			320,066			254			14,918			97,729			25,843			(1,982,288	)		—			458,810			361,081			97,729
Reconciliation of EBITDA:
Profit (loss) for the period		318,395			489,814			267,955			75,822			47,485			54,371			306,491			(808,209	)		(279,605	)		472,519			463,054			72,961
Income tax and social contribution		77,376			206,361			141,975			7,839			7,665			27,677			(143,411	)		(283,737	)		—			41,745			14,068			27,677
Financial result, net		(77,928	)		(8,135	)		103,753			(5,291	)		(47,190	)		20,048			289,996			86,063			—			361,316			313,411			20,048
Depreciation and amortization		894,416			261,308			247,832			485			36,347			44,728			1,607			(1,155,724	)		—			330,999			286,271			44,728
EBITDA		1,212,259			949,348			761,515			78,855			44,307			146,824			454,683			(2,161,607	)		(279,605	)		1,206,579			1,076,804			165,414

22 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

	June 30, 2015																														Additional information
	Raízen Energia			Raízen Combustíveis			COMGÁS			Radar			Lubricants			Cosan Log			Other business			Deconsolidated effects IFRS 11			Segment elimination			Total consolidated			Cosan Energia			Cosan Log
Statement of financial position:
Cash and cash equivalents		3,751,457			133,182			1,306,547			1,119			93,451			508,474			622,356			(3,884,639	)		—			2,531,947			2,020,616			508,474
Investment securities		—			—			—			191,487			—			534,429			—			—			—			725,916			191,487			534,429
Trade receivables		438,328			1,464,833			633,059			15,156			180,222			157,024			242			(1,903,161	)		—			985,703			828,679			157,024
Derivative financial instruments		751,527			7,986			488,252			—			13,115			13,869			1,051,918			(759,513	)		—			1,567,154			1,526,741			13,869
Inventories		1,372,773			1,451,604			131,136			—			201,197			106,790			61			(2,824,377	)		—			439,184			332,394			106,790
Other current assets		1,564,595			626,904			84,460			54,580			40,842			461,756			232,661			(2,191,499	)		(40,392	)		833,907			400,891			461,756
Other non-current assets		2,836,151			2,661,375			252,651			19,594			(209,285	)		2,715,086			1,963,351			(5,497,526	)		(7,722	)		4,733,675			2,018,581			2,715,086
Investment in associates		230,817			262,041			—			—			10,691			41,066			11,895,076			(492,858	)		(11,769,195	)		177,638			136,573			41,066
Investment in joint ventures		—			—			—			—			—			—			8,517,721			—			—			8,517,721			8,517,721			—
Biological assets		2,003,476			—			—			—			—			—			—			(2,003,476	)		—			—			—			—
Investment property		—			—			—			2,643,211			—			—			—			—			—			2,643,211			2,643,211			—
Property, plant and equipment		10,171,547			2,432,634			—			2,224			221,651			8,813,863			148,983			(12,604,181	)		—			9,186,721			372,858			8,813,863
Intangible assets and goodwill		3,278,282			4,285,945			8,598,206			708			803,954			7,801,373			7,201			(7,564,227	)		—			17,211,442			9,410,069			7,801,373
Loans, borrowings and debenture		(10,786,372	)		(1,459,528	)		(3,364,292	)		—			(341,074	)		(7,965,805	)		(4,875,068	)		12,245,900			—			(16,546,239	)		(8,221,860	)		(7,965,805	)
Trade payables		(690,156	)		(755,329	)		(1,156,369	)		(799	)		(152,646	)		(701,835	)		(3,989	)		1,445,485			—			(2,015,638	)		(1,313,803	)		(701,835	)
Derivative financial instruments		(122,738	)		(41,834	)		—			—			936			(25,618	)		(623,042	)		164,572			—			(647,724	)		(622,106	)		(25,618	)
Employee benefits payable		(398,017	)		(114,689	)		(39,786	)		(5,035	)		(16,438	)		(134,442	)		(16,345	)		512,706			—			(212,046	)		(77,604	)		(134,442	)
Other current liabilities		(1,107,866	)		(1,433,095	)		(103,940	)		(17,559	)		(94,755	)		(971,551	)		(168,543	)		2,540,961			38,919			(1,317,429	)		(355,452	)		(971,551	)
Other non-current liabilities		(2,778,903	)		(2,784,289	)		(1,041,006	)		(98,680	)		(153,085	)		(7,131,921	)		(4,162,768	)		5,563,192			9,194			(12,578,266	)		(5,446,346	)		(7,131,921	)
Total assets (net of liabilities) allocated by segment		10,514,901			6,737,740			5,788,918			2,806,006			598,776			4,222,558			14,589,815			(17,252,641	)		(11,769,196	)		16,236,877			12,362,650			4,222,558
Total assets		26,398,953			13,326,504			11,494,311			2,928,079			1,355,838			21,153,730			24,439,570			(39,725,457	)		(11,817,309	)		49,554,219			28,399,821			21,153,730

23 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

	December 31, 2014																														Additional information
	Raízen Energia			Raízen Combustíveis			COMGÁS			Radar			Lubricants			Cosan Log			Other business			Deconsolidated effects IFRS 11			Segment elimination			Total consolidated			Cosan Energia			Cosan Log
Statement of financial position:
Cash and cash equivalents		2,643,950			173,470			973,708			6,011			39,810			86,487			543,324			(2,817,420	)		—			1,649,340			1,540,192			86,487
Investment securities		—			—			—			149,735			—			—			—			—			—			149,735			149,735			—
Trade receivables		620,300			1,920,778			605,483			22,214			194,486			42,685			241			(2,541,078	)		—			865,109			822,424			42,685
Derivative financial instruments		542,102			28,378			335,058			—			(721	)		—			556,241			(570,480	)		—			890,578			880,366			—
Inventories		2,315,907			1,128,771			125,406			—			222,486			5,817			11			(3,444,678	)		—			353,720			347,903			5,817
Other current assets		2,228,121			493,252			137,360			31,052			26,416			24,500			362,644			(2,721,373	)		(64,839	)		517,133			518,065			24,500
Other non-current assets		1,986,145			2,365,613			256,077			15,538			(184,670	)		480,989			1,809,988			(4,351,758	)		(6,610	)		2,371,312			1,890,315			480,989
Investment in associates		209,205			256,729			—			—			16,032			—			11,916,471			(465,934	)		(11,801,826	)		130,677			130,678			—
Investment in joint ventures		—			—			—			—			—			—			8,404,503			—			—			8,404,503			8,404,503			—
Biological assets		1,828,304			—			— ��			—			—			—			—			(1,828,304	)		—			—			—			—
Investment property		—			—			—			2,641,978			—			—			—			—			—			2,641,978			2,641,978			—
Property, plant and equipment		9,848,969			2,464,316			—			11,288			221,466			1,084,455			118,681			(12,313,285	)		—			1,435,890			351,435			1,084,455
Intangible assets and goodwill		3,288,709			4,267,514			8,595,251			173			824,277			860,253			6,419			(7,556,223	)		—			10,286,373			9,426,120			860,253
Loans, borrowings and debenture		(10,377,585	)		(1,557,782	)		(3,133,347	)		—			(261,166	)		(784,709	)		(4,323,418	)		11,935,367			—			(8,502,640	)		(7,397,602	)		(784,709	)
Trade payables		(636,619	)		(529,990	)		(848,770	)		(790	)		(118,784	)		(141,289	)		(2,826	)		1,166,609			—			(1,112,459	)		(971,170	)		(141,289	)
Derivative financial instruments		(359,408	)		(188,556	)		(4,960	)		—			—			—			(328,474	)		547,964			—			(333,434	)		(333,435	)		—
Employee benefits payable		(252,219	)		(66,799	)		(58,955	)		(5,336	)		(15,437	)		(19,302	)		(21,387	)		319,018			—			(120,417	)		(101,115	)		(19,302	)
Other current liabilities		(776,208	)		(1,896,387	)		(118,021	)		(20,783	)		(100,853	)		(89,787	)		(402,204	)		2,672,595			63,735			(667,913	)		(602,788	)		(89,787	)
Other non-current liabilities		(2,687,911	)		(2,263,528	)		(992,028	)		(93,552	)		(193,082	)		(221,851	)		(3,977,389	)		4,951,439			7,722			(5,470,180	)		(5,248,327	)		(221,851	)
Total assets (net of liabilities) allocated by segment		10,421,762			6,595,779			5,872,262			2,757,528			670,260			1,328,248			14,662,826			(17,017,541	)		(11,801,818	)		13,489,306			12,449,278			1,328,248
Total assets		25,511,712			13,098,821			11,028,343			2,877,989			1,359,582			2,585,186			23,718,523			(38,610,533	)		(11,873,275	)		29,696,348			27,103,714			2,585,186

24 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

Net sales by segment:

	April 1, 2015 to			January 1, 2015			April 1, 2014 to			January 1, 2014
	June 30, 2015			to June 30, 2015			June 30, 2014			to June 30, 2014
Raízen Energia
Ethanol		940,503			2,566,987			879,319			2,200,596
Sugar		464,968			1,873,297			582,806			1,808,275
Cogeneration		172,052			184,738			174,986			202,252
Other		69,359			101,900			49,184			80,005
		1,646,882			4,726,922			1,686,295			4,291,128
Raízen Combustíveis
Fuels		14,793,885			28,855,395			13,684,833			26,695,789
		14,793,885			28,855,395			13,684,833			26,695,789
COMGÁS
Industrial		1,049,105			2,076,956			1,036,150			2,061,577
Residential		181,347			302,204			170,090			282,266
Construction revenue		103,343			193,724			117,463			235,104
Thermo generation		135,036			250,145			103,833			191,428
Cogeneration		72,128			138,100			64,174			128,008
Commercial		71,792			133,401			64,014			119,471
Automotive		50,014			95,051			49,957			96,754
Other		8,247			15,494			10,709			19,162
		1,671,012			3,205,075			1,616,390			3,133,770
Radar
Property sales		6,436			8,315			17,671			63,260
Land lease		16,519			33,505			15,682			31,808
Other		3,972			6,713			1,841			3,676
		26,927			48,533			35,194			98,744
Lubricants
Lubricants		363,725			702,393			335,299			654,487
Basic oil		56,704			94,158			64,168			110,191
Other		3,659			7,380			4,479			7,537
		424,088			803,931			403,946			772,215
Cosan's other business		—			—			(2	)		51
IFRS 11 - Deconsolidated of
adjustments/eliminations joint
ventures and eliminations		(16,449,838	)		(33,591,388	)		(15,371,128	)		(30,986,917	)
Cosan Energia		2,112,956			4,048,468			2,055,528			4,004,780
Cosan Log
Logistics		1,167,748			1,323,774			137,793			292,739
Port handling		40,968			87,519			43,879			93,308
Other		11,569			14,604			8,809			12,368
		1,220,285			1,425,897			190,481			398,415
Total consolidated		3,333,241			5,474,365			2,246,009			4,403,195

25 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

5 Cash and cash equivalents

	June 30, 2015		December 31, 2014
Brazilian Reais
Cash and bank deposits		132,335		57,703
Short-term investments		2,277,478		1,496,620
		2,409,813		1,554,323
U.S. Dollars and Pound Sterling
Cash and bank deposits		122,134		95,017
		122,134		95,017
		2,531,947		1,649,340

Short-term investments are mainly comprised of exclusive funds as presented below:

	June 30, 2015		December 31, 2014
Exclusive funds
Repurchase agreements(i)		798,594		423,535
Bank certificate of deposits - CDB(ii)		202,271		87,646
		1,000,865		511,181
Bank investments
Repurchase agreements(i)		953,655		222,570
Bank certificate of deposits - CDB(ii)		322,958		762,869
		1,276,613		985,439
		2,277,478		1,496,620

(i) These refer to purchases of assets, mainly government securities, with the commitment to repurchase at a rate previously established by the parties, generally with a one-day term.

(ii) These refer mainly to Bank Deposit Certificates - CDBs, issued by Brazilian financial institutions with original maturities of 90 days or less or for which there are no penalties or other restrictions for early redemption.

26 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

6 Trade receivables

	June 30, 2015			December 31, 2014
Domestic - Brazilian Reais		1,154,888			1,369,013
Export - Foreign currency		16,487			25,323
Allowance for doubtful accounts		(64,816	)		(48,235	)
		1,106,559			1,346,101
Current		985,703			865,109
Non-current		120,856			480,992

7 Other trade receivables

	June 30, 2015		December 31, 2014
Receivable from ExxonMobil(i)		345,236		332,405
Receivable from sale of
discontinued operations(ii)		74,985		107,775
		420,221		440,180
Current		74,985		69,683
Non-current		345,236		370,497

(i) The subsidiary Cosan Lubrificantes e Especialidades S.A. has a receivable from ExxonMobil related to tax debits included in the Brazilian Government's tax amnesty and refinancing program (“Refis IV”), which are the responsibility of ExxonMobil Brasil Holdings BV (“ExxonMobil”);

(ii) Receivables from the sale of Cosan Alimentos S.A. to be received in October 2015 plus the CDI or SELIC indexed.

27 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

8 Related parties

a) Receivables from and payables to related parties:

	June 30, 2015			December 31, 2014
Current assets
Commercial operations
Raízen Energia S.A.		35,480			23,229
Raízen Combustíveis S.A.		5,453			2,576
Aguassanta Participações S.A.		6,344			6,340
Other		4,501			556
		51,778			32,701
Corporate operation / Agreements
Raízen Energia S.A.		2,806			3,388
		2,806			3,388
Financial operations
Raízen Combustíveis S.A.		1,400			1,319
Rezende Barbosa Group		—			949
		1,400			2,268
		55,984			38,357
Non-current assets
Receivables under the
framework agreement
Raízen Energia S.A.		89,763			104,984
Raízen Combustíveis S.A.		—			15,126
		89,763			120,110
Financial operations
Rezende Barbosa Group		84,995			84,996
Other		11			4
		85,006			85,000
Corporate operation
Novvi Limited Liability Company		12,005			7,417
Tellus Brasil Participações Ltda.		10,562			—
Other		184			—
		22,751			7,417
		197,520			212,527
Total		253,504			250,884
Current liabilities
Commercial operations
Raízen Energia S.A.		19,617			25,926
Raízen Combustíveis S.A.		1,862			1,283
Shell Brazil Holding B.V.		—			3,820
Other		47			96
		21,526			31,125
Corporate operations / Agreements
Raízen Energia S.A.		78,757			94,892
Raízen Combustíveis S.A.		11,162			11,402
		89,919			106,294
Financial operations
Other		(219	)		22
		(219	)		22
Total		111,226			137,441

28 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

b) Related party transactions:

	April 1, 2015 to			January 1, 2015 to			April 1, 2014 to			January 1, 2014 to
	June 30, 2015			June 30, 2015			June 30, 2014			June 30, 2014
Sales of goods and services
Raízen Energia S.A.		42,596			138,337			51,240			133,861
Raízen Combustíveis S.A.		31,182			34,857			—			—
Other		127			127			1,058			1,072
		73,905			173,321			52,298			134,933
Purchase of goods / Inputs
Raízen Energia S.A.		(67	)		(70	)		(4	)		(4	)
Raízen Combustíveis S.A.		(1,751	)		(1,764	)		(354	)		(719	)
		(1,818	)		(1,834	)		(358	)		(723	)
Land lease
Raízen Energia S.A.		14,777			29,279			14,701			25,651
		14,777			29,279			14,701			25,651
Shared income (expense)
Aguassanta Participações S.A.		111			216			118			224
Raízen Energia S.A.		(10,674	)		(21,342	)		(3,373	)		(6,892	)
		(10,563	)		(21,126	)		(3,255	)		(6,668	)
Financial result
Raízen Energia S.A.		420			1,230			607			1,223
Rezende Barbosa Group		1			10			126			293
Aldwich Temple Venture Capital Ltd.		(27	)		(108	)		(64	)		(130	)
Other		(49	)		(97	)		74			126
		345			1,035			743			1,512
Total		76,646			180,675			64,129			154,705

c) Officers’ and directors’ compensation

	April 1, 2015 to		January 1, 2015 to		April 1, 2014 to		January 1, 2014 to
	June 30, 2015		June 30, 2015		June 30, 2014		June 30, 2014
Regular compensation		6,655		20,870		7,939		14,884
Stock option expense		2,930		5,859		2,563		5,126
Bonuses and other variable compensation		24,908		33,060		18,124		24,470
		34,493		59,789		28,626		44,480

29 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

9 Investment in associates

a) Information in associates of the Company and the Company´s ownership:

	Tellus Brasil Participações S.A.			Novvi Limited Liability Company			Janus Brasil Participações S.A.			Vertical UK LLP			Other			Total
Shares issued by the associate		65,957,282			200,002			1,364,827			—			—
Shares held by Cosan		33,638,214			100,001			689,685			—			—
Cosan ownership interest		51.00	%		50.00	%		51.00	%		50.00	%		—
Equity in earnings (losses) of
associates at June 30, 2014		4,028			(3,339	)		—			1,057			(1,079	)		667
At December 31, 2014		94,417			14,522			13,063			6,512			2,163			130,677
Equity in earnings (losses) of associates		5,986			(7,081	)		146			(1,630	)		(399	)		(2,978	)
Other comprehensive income (losses)		(429	)		3,765			—			—			—			3,336
Business combination		—			—			—			—			41,285			41,285
Capital increase		(5,333	)		—			11,907			—			5			6,579
Other		(568	)		—			—			—			(693	)		(1,261	)
At June 30, 2015		94,073			11,206			25,116			4,882			42,361			177,638

30 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

b) Information in the non-controlling interests in subsidiaries of the Company:

	Cosan S.A. Indústria e Comércio S.A.			Companhia de Gás de São Paulo - "COMGÁS"			Cosan Logística S.A.			Rumo Logística Operadora Multimodal S.A.			Logispot Armazéns Gerais S.A.			Radar Propriedades Agrícolas S.A.			Radar II Propriedades Agrícolas S.A.			Elimination of participation Radar II in Radar			Total
Shares issued by investee		407,214,353			121,870,985			405,856,814			299,015,898			2,040,816			21,148,989			830,690,258			—
Shares held by non-controlling shareholders		153,511,030			47,909,318			152,153,491			220,507,722			1,000,000			17,147,822			290,710,861			—
Non-controlling interest		37.49	%		39.31	%		36.73	%		73.74	%		49.00	%		81.08	%		35.00	%		—
Equity in earnings (losses) at June 30, 2014		—			106,024			—			13,685			(370	)		25,744			17,232			(5,163	)		157,152
At December 31, 2014		3,653,052			2,111,578			(106	)		323,636			37,066			1,680,612			337,743			(498,832	)		7,644,749
Equity in earnings (losses)		2,161			88,747			6,867			28,186			(1,101	)		26,609			3,615			—			155,084
Other comprehensive income		11,265			—			434			3,298			—			2,447			214			—			17,658
Dividends		(48,041	)		(121,511	)		—			(69,213	)		—			—			—			—			(238,765	)
Business combinations		—			—			70,911			2,760,558			—			—			—			—			2,831,469
Other		2,056			—			(15,551	)		(18,105	)		—			—			—			—			(31,600	)
At June 30, 2015		3,620,493			2,078,814			62,555			3,028,360			35,965			1,709,668			341,572			(498,832	)		10,378,595

c) Information of the subsidiaries

The subsidiary COMGÁS is currently going through a tariff cycle revision process. The completion date of COMGÁS 2014-2019 cycle revision process, which was predicted to occur initially at the end of May 2014, was postponed to the end of May 2015 by ARSESP by means of Decisions no. 494, of May 27, 2014, and no. 533, of December 10, 2014. COMGÁS is a waiting for information from ARSESP regarding the next tariff revision process stages.

On June 30, 2015, the subsidiary COMGÁS has a regulatory unrecognized accounts receivable in the amount of R$ 211,178 (R$ 242,654 on December 31, 2014) related to differences between the actual cost of gas incurred, paid by COMGÁS and the cost of gas included and charged to customers in accordance with tariff structure defined by ARSESP. During the quarter, the net movement in the cost of gas was R$ 31,476 and the update by the Selic rate was R$ 14,111.

31 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

10 Investment in joint ventures

Changes to investments in joint ventures were as follows:

	Raízen Combustíveis S.A.			Raízen Energia S.A.			Total
Shares issued by investee		3,303,168,484			5,902,595,634
Shares held by Cosan		1,651,584,242			2,951,297,817
Cosan ownership interest		50.00	%		50.00	%
Equity in earnings of
joint ventures at June 30, 2014		218,491			166,974			385,465
At December 31, 2014		3,218,466			5,186,037			8,404,503
Equity in earnings of joint ventures		256,649			(8,604	)		248,045
Other comprehensive income		—			55,173			55,173
Dividends		(190,000	)		—			(190,000	)
At June 30, 2015		3,285,115			5,232,606			8,517,721

A summary of the statement of financial position and the statement of profit or loss of the joint ventures are disclosed in Note 4, Operating segments.

The cash flows and other comprehensive income of the joint ventures are summarized below:

	Raízen Energia S.A.						Raízen Combustíveis S.A.
	June 30, 2015			June 30, 2014			June 30, 2015			June 30, 2014
Cash flows
Operating activities		3,071,347			1,358,778			958,959			439,974
Investing activities		(1,204,282	)		(1,564,406	)		(66,250	)		69,933
Financing activities		(715,507	)		675,046			(681,080	)		(511,308	)
Increase (decrease) in
cash and cash equivalents		1,151,558			469,418			211,629			(1,401	)
Other comprehensive income		91,141			237,915			533,528			489,465

11 Assets held for sale and investment property

	Investment property			Assets held for sale			Total
At December 31, 2014		2,641,978			25,089			2,667,067
Change in fair value		25,597			(2,435	)		23,162
Transfers		(18,364	)		27,342			8,978
Disposals		(6,000	)		(7,268	)		(13,268	)
At June 30, 2015		2,643,211			42,728			2,685,939

32 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

12 Property, plant and equipment

	Land, buildings and improvements			Machinery, equipment and facilities			Railcars and locomotives			Permanent railways			Construction in progress			Other			Total
Cost
At December 31, 2014		514,857			450,089			519,993			—			255,317			37,602			1,777,858
Additions		23,896			4,158			143,453			119,801			347,272			47,841			686,421
Disposals		—			(609	)		(251	)		(1,939	)		—			(15,956	)		(18,755	)
Transfers		8,770			26,216			—			(47,603	)		(57,256	)		78,855			8,982
Business combination (Note 3)		252,487			82,664			2,946,849			3,409,109			—			533,938			7,225,047
At June 30, 2015		800,010			562,518			3,610,044			3,479,368			545,333			682,280			9,679,553
Depreciation
At December 31, 2014		(103,615	)		(165,904	)		(55,688	)		—			—			(16,761	)		(341,968	)
Additions		(11,982	)		(22,522	)		(82,239	)		(33,206	)		—			(8,721	)		(158,670	)
Disposals		—			84			—			—			—			3			87
Transfers		7,429			273			—			—			—			17			7,719
At June 30, 2015		(108,168	)		(188,069	)		(137,927	)		(33,206	)		—			(25,462	)		(492,832	)
At December 31, 2014		411,242			284,185			464,305			—			255,317			20,841			1,435,890
At June 30, 2015		691,842			374,449			3,472,117			3,446,162			545,333			656,818			9,186,721

Capitalization of borrowing costs

Capitalized borrowing costs for the six months period ended June 30, 2015 amounted to R$ 27,280 (R$ 3,500 for the six months period ended June 30, 2014). The weighted average interest rate used to capitalize interest on the balance of construction in progress, was 5.58% p.a. for the six months period ended June 30, 2015 (5.51% p.a. for June 30, 2014).

33 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

13 Intangible assets

	Goodwill		Concession rights			Improvements to public concessions and operating licenses			Trademarks			Customer relationships			Other			Total
Cost
At December 31, 2014		703,956		8,790,010			898,520			252,474			862,324			228,097			11,735,381
Additions		—		198,127			—			—			42,050			10,268			250,445
Disposals		—		(7,066	)		(493,907	)		—			(3,074	)		—			(504,047	)
Transfers(i)		—		(31	)		—			—			31			12,452			12,452
Business combination (Note 3)		—		7,403,519			—			—			—			79,713			7,483,232
At June 30, 2015		703,956		16,384,559			404,613			252,474			901,331			330,530			18,977,463
Depreciation
At December 31, 2014		—		(636,730	)		(142,833	)		(136,962	)		(425,282	)		(107,201	)		(1,449,008	)
Additions		—		(188,946	)		(22,791	)		(11,414	)		(77,779	)		(22,462	)		(323,392	)
Disposals		—		5,058			—			—			1,307			—			6,365
Transfers(i)		—		—			—			—			—			14			14
At June 30, 2015		—		(820,618	)		(165,624	)		(148,376	)		(501,754	)		(129,649	)		(1,766,021	)
At December 31, 2014		703,956		8,153,280			755,687			115,512			437,042			120,896			10,286,373
At June 30, 2015		703,956		15,563,941			238,989			104,098			399,577			200,881			17,211,442

(i) The balance of transfers relates to amounts reclassified from property, plant and equipment and investment property.                                                      

34 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

Capitalization of borrowing costs

Capitalized borrowing costs for the six month period ended June 30, 2015, amounted to R$ 9,383 (R$ 10,441 for June 30, 2014). The weighted average interest rate used to capitalize borrowing costs on the balance of construction in progress, was 10.40% p.a. for the six months period ended June 30, 2015 (10.19% p.a. for June 30, 2014).

Intangible assets (excluding goodwill)	Annual rate of amortization - %		June 30, 2015		December 31, 2014
Gas distribution concession - COMGÁS(i)		Concession term		8,187,959		8,153,279
Concession rights - Rumo(ii)		Concession term		7,375,982		—
				15,563,941		8,153,279
Improvements to public rail concessions(iii)		Concession term		—		505,237
Operating license for port terminal(iv)		4.00		238,989		250,450
				238,989		755,687
Trademarks
Mobil		10.00		79,894		91,308
Comma		—		24,204		24,204
				104,098		115,512
Relationships with customers
COMGÁS		20.00		345,312		375,119
Lubricants		6.00		54,265		61,923
				399,577		437,042
Other
Software licenses		20.00		101,194		83,889
Other		15.00		99,687		37,008
				200,881		120,897
Total				16,507,486		9,582,417

(i) Refers to the intangible asset for the public gas distribution service concession, which represents the right to charge users for the supply of gas, comprised of: (i) the concession rights recognized in the business combination and (ii) concession assets. The amortization term is 39 years (the remaining concession period, plus extension);

(ii) Refers to the concession right agreement of ALL Malha Norte, which will be amortized until the end of the concession, in 2079;

(iii) Refers to improvements made to the Federal Government rail under concession and operated by ALL until March 31, 2015, when ALL was acquired by the Rumo; and

(iv) Port operating license and customer relationships of Rumo, from the business combinations.

35 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

Impairment testing of cash-generating units containing goodwill

The Company tests the recoverable amounts of goodwill arising from business combination transactions annually. Property, plant and equipment and definite life intangible assets, that are subject to depreciation and amortization are tested for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.

During the six month periods ended June 30, 2015, no impairment indicator was identified that would trigger the need for an impairment test.

14 Loans, borrowings and debentures

	Interest
Description(i)	Index(ii)	Annual interest(iii)		June 30, 2015	December 31, 2014	Matures
Loan and borrowings
BNDES	Selic	15.7	%	306,171	274,000	Oct-2020
	TJ462	8.8	%	888,701	834,565	Oct-2020
	TJLP	8.46	%	2,519,411	288,209	Jun-2029
EIB	US$ + LIBOR	2.06	%	783,411	691,463	Sep-2021
FINAME	URTJLP	7.98	%	651,257	457,570	Jul-2023
	Fixed	4.42	%	664,011	307,230	Dec-2024
FINEM	Fixed	3.5	%	3,428	3,420	Jan-2024
	IPCA	16.72	%	3,836	3,483	Nov-2021
	URTJLP	7.66	%	13,322	13,231	Jan-2022
FINEP	Fixed	5,00	%	151,062	165,032	Nov-2020
Foreign loans	LIBOR Sterling	3.93	%	263,781	224,047	Dec-2019
FRN	US$	2.63	%	168,219	—	Jan-2017
NCC	105.9% of CDI	14.44	%	5,696	—	Jul-2015
NCE	TJLP	12.84	%	123,019	—	Jul-2015
	109% of CDI	14.87	%	307,841	—	Sep-2018
	112% of CDI	15.28	%	401,197	—	Oct-2018
Perpetual Notes	US$	8.25	%	1,570,796	1,344,760	—
Resolution 4131	US$	2.74	%	252,976	29,338	Feb-2017
	US$ + LIBOR	1.63	%	307,678	266,006	Nov-2015
	US$ + LIBOR	2.11	%	542,514	466,494	Mar-2018
Senior Notes Due 2018	Fixed	9.5	%	875,090	874,494	Mar-2018
Senior Notes Due 2023	US$	5.00	%	1,611,867	1,352,796	Mar-2023
Trade banks	260.1% of CDI	35.48	%	5,778	—	Jun-2016
	107.5% of CDI	14.66	%	70,537	—	Jul-2015
	CDI + 1.25 p.a.	15.06	%	110,408	—	Sep-2015
Working capital	CDI + 1.43%	15.27	%	91,318	85,628	Sep-2016
	CDI + 1.20%	15.00	%	108,143	101,515	Oct-2017
	US$ + LIBOR	4.18	%	159,113	133,185	Sep-2016
Other		—		3,146	7,559	—
				12,963,727	7,924,025

36 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

Debentures
Convertible debentures	URTJLP	8.1	%	64,463	—	Jun-2016
Non-convertible debentures	% of net revenue	—		27,488	—	Jun-2016
	Fixed	10.1	%	161,103	—	Oct-2020
	Fixed rate + IPCA	14.74	%	480,675	447,386	Sep-2020
	108% of CDI	14.73	%	521,016	—	Jul-2018
	CDI+1.3% p.a.	15.12	%	768,786	—	Oct-2017
	CDI	15.97	%	1,427,172	—	Apr-2018
	CDI	14.66	%	131,809	131,229	Sep-2019
				3,582,512	578,615
Total				16,546,239	8,502,640
Current				2,353,182	1,056,353
Non-current				14,193,057	7,446,287

(i) Loans and borrowings are guaranteed by promissory notes and endorsements of the Company and controlling shareholders, besides other guarantees, such as: (i) credit rights originated from the expansion contracts of the logistic segment and gas distribution (BNDES), (ii) underlying assets (property, plant and equipment and intangible assets) being financed (FINAME) in an amount of R$ 3,290,251 (R$ 1,738,661 on December 31, 2014);

(ii) TJLP and URTJLP are long-term interest rates on BNDES (Brazilian National Economic and Social Development Bank) loans. Selic is the benchmark interest rate set by the Brazilian Central Bank. CDI is a benchmark interbank lending rate in Brazil. IPCA is a benchmark consumer price index;

(iii) As at June 30, 2015, unless otherwise indicated.

Debentures

On April 29, 2015, Rumo concluded the placement of the third tranche of non-convertible debentures, indivisible, at a par value totaling R$ 1,427,172. The maturity of which is April, 2018.

Changes in loans, borrowings and debentures:

At December 31, 2014	8,502,640
Acquisition	2,382,655
Monetary and exchange variations	1,363,982
Payment	(2,354,254	)
Business combination	6,639,223
Other	11,993
At June 30, 2015	16,546,239

Covenants

The Company and its subsidiaries are subject to certain restrictive financial covenants set forth in existing loans, financing and debentures agreements in relation to certain financial and non-financial indicators.

Financial covenants are required to be calculated on an annual basis, at the end of each fiscal year.

As at June 30, 2015, Cosan, its subsidiaries and jointly-controlled entities were in compliance with all financial covenants.

37 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

15 Leases

Finance lease liabilities

Finance lease liabilities are payable as follows:

	Less than one year			Between one and five years			More than five years			Total
Future minimum
lease payments		689,161			1,213,051			528,555			2,430,767
Interests		(245,728	)		(104,999	)		(286,280	)		(637,007	)
Present value of
minimum lease payments		443,433			1,108,052			242,275			1,793,760
Current											443,433
Non-current											1,350,327

Leases have various expiration dates, the last maturing in June 2022. The amounts are updated annually by Brazilian market price index (Índice Geral de Preços do Mercado-IGPM) plus TJLP (Long-Term Interest Rate) or CDI.

Operating leases

i) Leases as lessee

As of June 30, 2015, the future minimum lease payments under non-cancellable leases were agreements are as follows:

	June 30, 2015
	COMGÁS			Cosan Log
Future minimum
lease payments
Less than one year		3,436			17,298
Between one and five years		4,921			14,970
More than five years		—			3,224
		8,357			35,492
Amounts recognized in
profit or loss		(2,303	)		(2,121	)

COMGÁS rents properties through 15 lease contracts. The lease terms are for a period of one to six years, and the majority of lease agreements are renewable at the end of the lease period at market rates.

The rentals are recognized as expenses on a straight-line basis over the life of the respective agreement.

38 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

16 Leases and concessions

Rumo, through its subsidiary ALL, recognizes their expenses related to operating lease and concession agreements on a straight-line basis during the term of the concession period. The amount recognized in non-current liabilities refers to the amounts that have not been paid due to discussions in court about agreement conditions and/or portions allocated during the grace period.

The amount of leases and concessions payable refers to the updated concession amount, net of payments made up to the balance sheet date:

	Payables		Court Discussion		At June 30, 2015
Leases		39,848		1,904,332		1,944,180
Concessions		49,870		55,497		105,367
		89,718		1,959,829		2,049,547
Current						19,300
Non-current						2,030,247

Court Discussion

Rumo, through its subsidiary ALL, is challenging in court the economic and financial imbalance of the Lease and Concession Agreements.

In May 2005, the company filed a note in the 20^th Federal Court of Rio de Janeiro, questioning the economic and financial imbalance of the Lease and Concession Agreements, due to the high disbursement incurred by the Company for the payment of labor judicial proceedings and other costs involved, which are of theRede Ferroviária Federal S.A responsibility.

ALL Malha Paulista required an specialized expertise in order to determine the new value for the lease and concession installments, as well as a review of the payment of due and falling due installments until the effective expertise inspection for determination of the adequate value. In July 2005, the request was granted. In September 2005, the request was revoked by the Federal Court of Rio de Janeiro. The action still has no judgment and awaits the conclusion of the expert examination. The value related to the lease installments was being deposited in court until September 2007, when the Company obtained a judicial authorization to replace the judicial deposits for a banking guarantee letter. The management, supported by the opinion of its lawyers, assesses the chances of success as probable, but keeps the debt registry because it is a legal obligation.

39 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

ALL Malha Oeste is claiming the reestablishment of the economic-financial balance, as an imbalance was caused due to the cancellation of transportation agreements existing at the moment of the privatization representing a change in the regulatory environment and conditions set forth in the Notice of the Privatization - further growth forecasts that defined the value of the deal was not materialized. The lawsuit has been discussed by 16^th Federal Court of Rio de Janeiro. The amount related to overdue installments of the Company was having guaranteed by purchasing of government securities. In March 2008 the Company was authorized to replace the guarantee by bank pledge and, in May 2008 the Company redeemed the values. In December 2014 the court recognized the occurrence of economic and financial imbalance of contracts, remaining the definition of skill to determine the amount of imbalance and related aspects.

Management, supported by the opinion of its lawyers, assesses the chances of success as probable, but keeps the debt registry because it is a legal obligation not definitively decided yet in favor of the Company.

Judicial deposits on June 30, 2015 concerning the above claims total:

ALL Malha Paulista	115,365
ALL Malha Oeste	17,299
	132,664

17 Trade payables

	June 30, 2015			December 31, 2014
Natural gas suppliers		1,360,903			1,043,997
Judicial deposits(i)		(294,976	)		(294,976	)
Materials and service suppliers		950,821			363,438
		2,016,748			1,112,459
Current		2,015,638			1,112,459
Non-current		1,110			-

(i) The contracts for the supply of natural gas have their composite price built in two parts: a part that is indexed according to a basket of fuel oil in the international market and readjusted quarterly; and another part that is readjusted annually based on the domestic and/or American inflation. The cost of gas is practiced in R$/m³, and the Bolivian gas is calculated at US$/MMBTU, with correction by the monthly exchange rate variation.

In February 25, 2014, COMGÁS obtained a preliminary injunction against Petrobrás, which assured the Company the right to provide a deposit of the controversial monthly value due to Petrobrás, corresponding to the difference in prices between (i) the price in the TCQ Contract for the Supply of Gas signed between COMGÁS and Petrobrás and (ii) the price under the Firm Contract signed between Petrobrás and Gás Brasiliano Distribuidora S.A. , whereas the obligation of equality assumed before the Petrobrás Group with the State Regulatory Agency - ARSESP. Initially, the security was provided by bank deposits which, subsequently, after the preliminary injunction was granted by the STJ in November 06, 2014, were replaced by a letter of guarantee issued by a first-tier financial institution.

Therefore, the controversial values calculated based on the supply of gas from January to September 2014 were assured in a court decision upon a judicial deposit and the controversial values calculated found as of the supply of gas from October 2014 to June 2015 began to be secured by a bank surety. The guaranteed value in the judicial deposit is R$ 294,976 and the guaranteed value through surety is of R$ 475,487.

40 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

18 Other taxes payable

	June 30, 2015		December 31, 2014
Tax Amnesty and
Refinancing Program - REFIS(i)		560,661		524,703
ICMS - State VAT		85,785		67,777
COFINS - Revenue tax		20,642		18,702
INSS - Social security		5,222		2,739
PIS - Revenue tax		4,460		2,511
Other		25,521		25,874
		702,291		642,306
Current		170,336		307,741
Non-current		531,955		334,565

(i) Comprises mainly refinancing of federal taxes liability related to ExxonMobil Brazil Holdings BV ("ExxonMobil").

41 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

19 Income tax and social contribution

a) Reconciliation of income and social contribution tax expenses

	April 1, 2015 to			January 1, 2015 to			April 1, 2014 to			January 1, 2014 to
	June 30, 2015			June 30, 2015			June 30, 2014			June 30, 2014
Profit before taxes		232,007			178,042			165,518			514,264
Income tax and social
contribution at nominal rate (34%)		(78,882	)		(60,535	)		(56,276	)		(174,850	)
Adjustments to reconcile
nominal to effective tax rate
Equity method investments
(non-taxable income)		31,256			83,323			55,873			131,285
Differences in tax rates on entities under
Brazilian presumed profits tax regime		4,784			11,144			24,354			20,606
Tax profit of the activity (operating income)		9,096			9,096			—			—
Non-deductible expenses
(donations, gifts, etc.)		1,044			(11,219	)		(1,818	)		(3,535	)
Amortized goodwill		464			464			—			—
Judicial demand related to income tax		—			—			—			13,839
Interest on capital (net received)		—			(6,120	)		—			(6,970	)
Stock options		(996	)		(1,992	)		(871	)		(1,743	)
Differences in tax rates on
earnings / losses of overseas companies		(19,727	)		3,647			(2,761	)		(16,794	)
Tax losses carryfoward not recorded		(27,348	)		(27,422	)		(732	)		(1,406	)
Other		(2,691	)		(3,696	)		47			(2,177	)
Income tax and social contribution
benefit (expense) - current and deferred		(83,000	)		(3,309	)		17,816			(41,745	)
Effective rate - %		35.77			1.86			-10.76			8.12

b) Deferred income tax assets and liabilities

	June 30, 2015												December 31, 2014
	Basis			Income taxes (25%)			Social contribution (9%)			Total income taxes (34%)			Total income taxes (34%)
Tax loss carry forwards
Income tax loss carry forwards		6,082,034			1,520,509			—			1,520,509			319,168
Social contribution tax loss carry forwards		6,116,638			—			550,497			550,497			116,578
Temporary differences
Foreign currency losses		1,612,387			403,097			145,115			548,212			303,488
Tax deductible goodwill		695,331			173,833			62,580			236,413			298,102
Provision for judicial demands		770,799			192,700			69,372			262,072			183,714
Allowance for doubtful accounts		334,636			83,659			30,117			113,776			53,385
Profit sharing		54,342			13,585			4,891			18,476			11,345
Expenses tax deferred		175,859			43,965			15,827			59,792			—
(-) Credits without estimated realization		(3,676,806	)		(919,201	)		(330,913	)		(1,250,114	)		—
Unrealized gains on derivatives instruments		(743,607	)		(185,902	)		(66,925	)		(252,827	)		(126,351	)
Unrealized gain on sale of investments		(35,653	)		(8,913	)		(3,209	)		(12,122	)		(18,772	)

42 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

Impairment	954,347		238,587		85,891		324,478		—
Other temporary differences	334,747		83,687		30,127		113,814		(33,391	)
Property, plant and equipment	(148,816	)	(37,204	)	(13,393	)	(50,597	)	(41,669	)
Gain on formation of joint ventures	(3,338,342	)	(834,586	)	(300,451	)	(1,135,037	)	(1,135,036	)
Unrealized gains on investment properties	(2,429,828	)	(48,597	)	(26,242	)	(74,839	)	(74,801	)
Assets held for sale	(42,729	)	(855	)	(461	)	(1,316	)	(773	)
Concession contract	46,468		11,617		4,182		15,799		15,057
Regulatory asset	242,654		60,664		21,839		82,503		82,503
Gains or losses on actuarial liabilities	267,067		66,767		24,036		90,803		87,594
Business combination - Property,
plant and equipment	830,224		207,556		74,720		282,276		(36,594	)
Business combination - Intangible assets	(11,398,677	)	(2,849,669	)	(1,025,881	)	(3,875,550	)	(1,390,752	)
Business combination - Other
fair value adjustments	(135,842	)	(33,961	)	(12,226	)	(46,187	)	(24,513	)
Other	(200,051	)	(50,013	)	(18,006	)	(68,019	)	(113,392	)
Total net liability			(1,868,675	)	(678,513	)	(2,547,188	)	(1,525,110	)
Deferred income tax - Assets							1,602,619		214,164
Deferred income tax - Liabilities							(4,149,807	)	(1,739,274	)
Total net deferred taxes							(2,547,188	)	(1,525,110	)

c) Changes in deferred income taxes, net:

At December 31, 2014 – Net deferred tax liability	(1,525,110	)
Recorded through income	117,382
Recorded through other comprehensive income	(2,073	)
Business combinations (Note 3)	(1,135,203	)
Other	(2,184	)
At June 30, 2015 - Net deferred tax liability	(2,547,188	)

20 Provision for legal proceedings

	Provision for legal proceedings				Judicial deposits
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
Tax		440,935		343,038		352,210		319,444
Civil		254,204		139,268		210,499		48,445
Labor		553,293		175,473		194,322		50,496
		1,248,432		657,779		757,031		418,385

43 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

Changes in provision for legal proceedings:

	Tax			Civil			Labor			Total
At December 31, 2014		343,038			139,268			175,473			657,779
Accruals		10,622			10,086			23,599			44,307
Write-off / Reversals		(2,788	)		(13,040	)		(34,765	)		(50,593	)
Transfers		6,850			(6,850	)		—			—
Business combinations (Note 3)		70,124			105,153			378,992			554,269
Indexation and interest charges		13,089			19,587			9,994			42,670
At June 30, 2015		440,935			254,204			553,293			1,248,432

Judicial claims deemed to be probable losses, fully accrued

a) Tax claims

	June 30, 2015		December 31, 2014
Compensation with FINSOCIAL		247,874		241,739
INSS - Social security		54,971		47,449
State VAT - ICMS credits		77,438		24,231
Tax on services		9,273		—
PIS e COFINS		6,535		—
Other		44,844		29,619
		440,935		343,038

b) Civil and environmental

The Company and its subsidiaries are party in a number of civil and legal claims related to (i) indemnification for material and moral damages, (ii) public civil claims related to burning of sugarcane stubble, and (iii) environmental matters.

The Company and its subsidiaries are also defendants in a number of labor claims filed by former employees and service providers challenging, among other things, unpaid overtime, night shift premiums and risk premiums, employment guarantees, and the reimbursement of withholdings from payroll such as social contributions and trade union charges.

44 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

Judicial claims deemed as possible losses, and therefore not accrued

a) Tax claims

	June 30, 2015		December 31, 2014
ICMS - State VAT		1,775,736		1,572,934
Foreign financial operation(i)		871,847		—
PIS and COFINS - Revenue taxes		865,424		680,065
Federal income taxes		757,732		751,495
IRRF - Withholding tax		757,400		656,087
INSS - Social security and other		596,448		530,223
IPI - Excise tax credit - NT		475,014		441,707
Goodwill ALL S.A.(ii)		426,763		—
Penalties related to tax positions		174,075		—
Compensation with IPI - IN 67/98		121,016		118,865
MP 470 - Tax installments(iii)		97,439		—
Intermodal		73,605		—
Stock option		56,099		—
Other		910,801		648,850
		7,959,399		5,400,226

(i) The Brazilian Tax Authority assessed ALL Malha Sul arguing that the interest expense on financial investments abroad and loans would not be deductible. In addition, notice of violation was issued questioning the non-taxation by PIS and COFINS on hedge transactions. The chance of loss is considered possible, since: a) the financial investments were made with countries on which Brazil has treaty providing for the non-taxation; b) the incidence of PIS and COFINS on hedging transactions was rejected by decree dated 2005. The amount on June 30, 2015 is R$ 871,847, already reduced by R$ 400,665 based on partially favorable decisions rendered so far which is still subject to appeal by the Tax Authorities.

(ii) Tax assessments issued by the Brazilian Tax Authority in 2011 and 2013 against ALL Holding concerning: a) Amortization expense disallowance based on future profitability, as well as financial expenses; b) non-taxation of supposed capital gain on disposal of equity interest in a company of the same group. The chance of loss is considered possible and the amount at June 30, 2015 is R$ 426,763, already reduced by R$ 315,047 based on favorable decisions rendered to date at the administrative level, which is still subject to appeal by Tax Authorities.

(iii) The Brazilian Tax Authority partially rejected the installment requests for federal tax debts made by ALL Malha Sul and the ALL Intermodal, arguing that the tax losses offered by the companies were not sufficient to discharge of their debts. The probability of loss is considered possible, since the losses pointed existed and were available for such use. The updated amount of loss on June 30, 2015 is R$ 97,439.

45 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

b) Civil and labor

The civil and labor claims for which unfavorable outcomes are deemed possible are as follow:

	June 30, 2015		December 31, 2014
Civil		1,067,319		1,118,151
Labor		737,999		391,992
		1,805,318		1,510,143

21 Preferred shareholders payable in subsidiaries

On June 27, 2014, Cosan S.A. transferred to a newly-incorporated wholly-owned subsidiary, Cosan Investimentos e Participações S.A., its shares in Raízen Energia S.A. and Raízen Combustíveis S.A. in addition to a debenture Cosan S.A. had issued and placed with Banco Bradesco S.A.. The net assets transferred at that date totaled R$ 1,979,519.

Concurrently, also on June 27, 2014, Cosan S.A. executed an Investment Agreement with Fundo de Investimentos em Participações Multisetorial Plus II (“FIP Multisetorial”) and with Razac Fundo de Investimentos em Participações (“FIP Razac”). FIP Multisetorial and FIP Razac are funds owned by Banco Bradesco BBI S.A and Citibank Distribuidora de Títulos e Valores Mobiliários S.A., respectively. Pursuant to this agreement, FIP Multisetorial and FIP Razac subscribed and paid-in R$ 2,000,000 of non-voting preferred shares issued by Cosan Investimentos e Participações S.A.. These preferred shares will be remunerated based on a formula designed to provide a return over 15 year’s equivalent to the CDI rate. In the event the accumulated remuneration falls short of the minimum amount prescribed in the formula, as at April 30, 2021, the preferred shareholders will have a put against Cosan S.A. for an amount equivalent to the value of the initial investment plus interest based on the CDI less any CDI-indexed dividends paid.

The investment in the net assets of the joint ventures, Raízen Energia S.A. and Raízen Combustíveis S.A., continue to be accounted for on the equity method without affecting the Company’s 50% interest in the results of each venture. The transaction underlying the Investment Agreement has been classified as a non-current financial liability in Cosan´s and Cosan S.A.´s balance sheet and the statement of profit or loss reflects the CDI equivalent dividends classified as financial expenses.

46 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

22 Stockholders’ Equity

a) Share capital

As of June 30, 2015, Cosan Limited’s share capital is composed of the following:

Shareholders - Common shares	Class A and / or BDRs		%		Class B1 shares		%
Queluz Holding Limited		7,758,116		4.45		66,321,766		68.85
Usina Costa Pinto S.A. Açúcar e Álcool		—		—		30,010,278		31.15
Gávea Funds		21,167,463		12.14		—		—
MSOR Participações S.A.		1,811,250		1.04		—		—
Usina Bom Jesus S.A.		255,000		0.15		—		—
FIA Rio das Pedras		16,000		0.01		—		—
Other		137,351,010		78.78		—		—
Total shares outstanding		168,358,839		96.56		96,332,044		100.00
Treasury shares		5,996,502		3.44		—		—
Total		174,355,341		100.00		96,332,044		100.00

There have been no changes to the number of shares issued during the periods presented.

Class B1 shares entitle the holder to 10 votes per share whereas Class A and BDRs’ shares are entitled to one vote per share.

b) Treasury shares

The Company holds 5,996,502 Class A treasury shares as of June 30, 2015 and December 31, 2014 with a market value of US$ 6.16 per share at June 30, 2015 (US$ 7.75 per share at December 31, 2014).

c) Other comprehensive (loss) income

	December 31, 2014			Comprehensive (loss) income			June 30, 2015
Foreign currency translation differences		(298,446	)		(67,037	)		(365,483	)
Gain (loss) on cash flow
hedge in joint ventures and subsidiaries		(10,574	)		56,154			45,580
Revaluation of investment properties
reclassified from property, plant and equipment		190,735			—			190,735
Actuarial gain on defined benefit plan		47,104			—			47,104
Changes in fair value of
available for sale securities, net		(1,467	)		3,299			1,832
Total		(72,648	)		(7,584	)		(80,232	)
Attributable to:
Owners of the Company		(165,618	)		(25,242	)		(190,860	)
Non-controlling interests		92,970			17,658			110,628

47 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

	December 31, 2013			Comprehensive  (loss) income			June 30, 2014
Foreign currency translation differences		(223,038	)		3,164			(219,874	)
Gain (loss) on cash
flow hedge in joint ventures and subsidiaries		43,384			(27,311	)		16,073
Revaluation of investment properties
reclassified from property, plant and equipment		190,735			—			190,735
Actuarial gain (loss) on defined benefit plan		16,092			(935	)		15,157
Changes in fair value of
available for sale securities, net		(7,480	)		1,681			(5,799	)
Total		19,693			(23,401	)		(3,708	)
Attributable to:
Owners of the Company		(84,887	)		(9,336	)		(94,223	)
Non-controlling interests		104,580			(14,065	)		90,515

23 Earnings per share

	April 1, 2015 to			January 1, 2015 to			April 1, 2014 to			January 1, 2014 to
	June 30, 2015			June 30, 2015			June 30, 2014			June 30, 2014
Numerator
Profit from continuing operations
attributable to owners of the Parent
Basic		7,123			16,663			38,748			179,553
Dilutive effect of subsidiary's
stock option plan		(71	)		(7	)		(8,446	)		(29,217	)
Dilutive effect of put option		(15,601	)		(15,601	)		(15,601	)		(15,601	)
Diluted		(8,549	)		1,055			14,701			134,735
Loss from discontinued operations
attributable to owners of the Parent
Basic		(595	)		(595	)		—			—
Dilutive effect of subsidiary's
stock option plan		—			—			—			—
Diluted		(595	)		(595	)		—			—
Denominator
Weighted average number
of shares outstanding		264,690,883			264,690,883			264,690,883			264,690,883
Basic earnings per share
Continuing operations	R$	0.03		R$	0.06		R$	0.15		R$	0.68
Discontinued operations	R$	(0.00)		R$	0.00		R$	0.00		R$	0.00
	R$	0.03		R$	0.06		R$	0.15		R$	0.68
Diluted (loss) earnings per share
Continuing operations	R$	(0.03)		R$	0.00		R$	0.06		R$	0.51
Discontinued operations	R$	(0.00)		R$	(0.00)		R$	0.00		R$	0.00
	R$	(0.03)		R$	0.00		R$	0.06		R$	0.51

48 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

24 Financial results, net

	April 1, 2015 to			January 1, 2015 to			April 1, 2014 to			January 1, 2014 to
	June 30, 2015			June 30, 2015			June 30, 2014			June 30, 2014
Financial expense
Interest on loans		(375,532	)		(531,043	)		(200,087	)		(385,129	)
Interest expense		(104,883	)		(183,963	)		(32,448	)		(3,114	)
Indexation expenses		(76,427	)		(112,268	)		(13,444	)		(30,630	)
Bank fees		(70,177	)		(91,357	)		(76,015	)		(88,586	)
Leases		(22,217	)		(22,217	)		—			—
		(649,236	)		(940,848	)		(321,994	)		(507,459	)
Financial income
Income from short term investments		92,968			141,844			34,176			64,391
Interest income		16,554			31,935			35,186			51,393
Indexation income		12,434			17,968			5,058			6,987
		121,956			191,747			74,420			122,771
Foreign exchange effects, net		98,078			(493,756	)		20,822			96,559
Derivative income (losses)
Foreign exchange and
interest rate derivatives		(179,704	)		375,528			(12,106	)		(73,187	)
		(179,704	)		375,528			(12,106	)		(73,187	)
		(608,906	)		(867,329	)		(238,858	)		(361,316	)

25 Other income (expenses), net

	April 1, 2015 to			January 1, 2015 to			April 1, 2014 to			January 1, 2014 to
	June 30, 2015			June 30, 2015			June 30, 2014			June 30, 2014
Gain on pre-existing relationship before negotiations for the business combinations		29,838			29,838			—			—
Changes in the fair value of investment properties		8,842			23,162			67,904			44,983
Rental income		1,958			2,129			181			348
Loss on disposal of non-current assets		(1,377	)		(2,659	)		(2,754	)		(4,806	)
Provisions for legal proceedings		(10,024	)		(19,224	)		(7,790	)		(26,230	)
Cost related to internal organization and prospective acquisitions(i)		(2,816	)		(106,660	)		(124,212	)		(124,212	)
Other		11,498			12,010			474			10,928
		37,919			(61,404	)		(66,197	)		(98,989	)

(i) Refers to costs incurred by the Company with lawyers, consultants, business advisors and other related services for certain reorganizations and prospective acquisitions.

49 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

26 Financial instruments

The carrying amount of financial assets and financial liabilities are as follows:

	June 30, 2015		December 31, 2014
Assets
Fair value through profit or loss
Cash and cash equivalents		2,531,947		1,649,340
Investment securities		874,242		149,735
Derivate financial instruments		1,567,154		890,578
		4,973,343		2,689,653
Loans and receivables
Trade receivables		1,106,559		1,346,101
Related parties		258,566		250,884
Dividends receivable		47,352		36,130
Other receivables		420,221		440,180
		1,832,698		2,073,295
Total		6,806,041		4,762,948
Liabilities			��
Liabilities amortized cost
Loans, borrowings and debentures		12,398,899		5,991,887
Leases		1,793,760		—
Trade payables		2,016,748		1,112,459
Related parties		116,288		137,441
Contingent consideration - Earn out		128,616		186,649
Dividends payable		18,363		33,354
Tax installments - REFIS		560,661		524,703
Preferred shareholders payable in subsidiaries		2,050,181		1,926,888
		19,083,516		9,913,381
Fair value through profit or loss
Loans, borrowings and debentures		4,147,340		2,510,753
Advances on real state credits		320,410		—
Pension and post-employment benefits		312,047		301,850
Derivative financial instruments		647,724		333,435
		5,427,521		3,146,038
Total		24,511,037		13,059,419

During the period there was no reclassification between categories, fair value through profit or loss, loans and receivables and liabilities at the amortized cost presented above.

50 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

Risk management structure

As at June 30, 2015 and December 31, 2014, the fair values relating to transactions involving derivative financial instruments to protect the Company’s risk exposure were using observable inputs such as quoted prices in active markets, or discounted cash flows based on market curves, and are presented below:

	Notional				Fair value
	June 30, 2015		December 31, 2014		June 30, 2015			December 31, 2014			P&L(i)
Exchange rate derivatives
Swap agreements		176,557		828,443		(18,080	)		330,099			4,862
Forward agreements		1,841,777		178,127		(102,875	)		21,250			(110,014	)
Options		—		—		—			(8,842	)		217,992
		2,018,334		1,006,570		(120,955	)		342,507			112,840
Interest rate and exchange rate risk
Swap agreements (interest rate)		900,634		221,560		(43,532	)		(40,330	)		181,219
Cross currency interest rate swaps		2,894,397		1,659,904		1,083,917			254,966			304,700
		3,795,031		1,881,464		1,040,385			214,636			485,919
Total financial instruments						919,430			557,143			598,759
Assets						1,567,154			890,578
Liabilities						(647,724	)		(333,435	)

(i) The Company recorded in the statement of profit or loss and other comprehensive income, the net effect of the Senior Notes 2023 designated for hedge accounting. Therefore, the amount of R$ 223,231 is accounted for as Financial Expense.

Credit risk

COMGÁS has no concentration of credit risk due to its broad customer base.

Credit risk is managed through specific rules regarding client acceptance, including credit ratings and limits for customer exposure, including the requirement for a letter of credit from a major bank and obtaining actual warranties when given credit, when applicable. Management believes that credit risk is adequately managed through its policy of allowances for doubtful accounts.

The Company and its subsidiaries may acquire exchange rate and interest rate derivative instruments in the BM&FBovespa, OTC, registered CETIP or the international markets, with several banks, within the limits established in the Treasury Policy for each bank.

51 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

The credit risk on cash and cash equivalents, bank deposits in national and foreign financial institutions are determined using the rating instruments accepted by the market as follows:

	June 30, 2015		December 31, 2014
Cash and cash equivalents		2,531,947		1,649,340
Investment securities		874,242		149,735
Trade receivables		1,106,559		1,346,101
Derivative financial instruments		1,567,154		890,578
Receivables from related parties		258,566		250,884
Other trade receivables		420,221		440,180
Dividends receivable		47,352		36,130
		6,806,041		4,762,948

a) Impairment

The Company tests annually their financial assets not classified as at fair value through profit or loss, including an interest in an equity-accounted investee, are assessed at each reporting date to determine whether there is objective evidence of impairment.

b) Guarantees

Cosan’s policy is to provide financial guarantees only to subsidiaries (Note 14).

Liquidity risk

Liquidity risk is the risk that the Company and its subsidiaries will not be able to meet its obligations associated with its financial liabilities that are settled with cash payments or other financial assets. The Company and its subsidiaries manage liquidity risk by ensuring, as much as possible, the availability of sufficient liquidity to meet its obligations due, under normal and stress situations, without causing unacceptable losses or risking the Company’s and its subsidiaries reputation.

The Company’s non-derivative financial liabilities classified by due date (contracted undiscounted cash flows basis) are as follows:

	June 30, 2015															December 31, 2014
	Up to 1 year			1 - 2 years			3 - 5 years			More than 5 years			Total			Total
Loans, borrowings and debentures		(3,142,112	)		(2,410,048	)		(7,687,950	)		(7,913,047	)		(21,153,157	)		(14,988,841	)
Trade payables		(2,015,638	)		(1,110	)		—			—			(2,016,748	)		(1,034,282	)
REFIS		(21,929	)		(21,027	)		(39,908	)		(451,425	)		(534,289	)		(524,704	)
		(5,179,679	)		(2,432,185	)		(7,727,858	)		(8,364,472	)		(23,704,194	)		(16,547,827	)

Market risk

Market risk is the risk that changes in market prices – such as foreign exchange rates and interest rates – will affect the Cosan’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

The Company uses derivatives to manage market risks. All such transactions are carried out within the guidelines set by the Management Committee. Generally, the Company seeks to apply hedge accounting to manage volatility in profit or loss.

52 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

a) Foreign exchange risk

As at June 30, 2015 and December 31, 2014, the Company and its subsidiaries had the following net exposure to the exchange rate variations on assets and liabilities denominated in U.S. Dollars and Brazilian Reais:

	June 30, 2015					December 31, 2014
		R$		USD			R$		USD
Cash and cash equivalents		72,036		23,218			40,782		15,354
Trade receivables		6,934		2,235			4,708		1,772
Trade payable		(25,256	)	(8,140	)		—		—
Loans, borrowings and debentures		(5,667,153	)	(1,780,248	)		(4,337,999	)	(1,633,160	)
Contingent consideration - Earn out		(31,655	)	(10,203	)		(47,340	)	(17,822	)
Derivative financial instruments		4,713,056		1,903,045			9,235,274		3,745,648
Foreign exchange exposure, net		(932,038	)	129,907			4,895,425		2,111,792

i. Sensitivity analysis on changes in foreign exchange rates

The probable scenario was defined based on the U.S. Dollar market rates as at June 30, 2015, which determines the fair values of the derivatives at that date. Stressed scenarios (positive and negative effects, before tax effects) were defined based on changes of a 25% and 50% to the U.S. Dollar exchange rates used in the probable scenario.

Based on the financial instruments denominated in U.S. Dollars at June 30, 2015 the Company performed a sensitivity analysis by increasing and decreasing the exchange rate for R$/US$ by 25% and 50%. The probable scenario considers the estimated exchange rates at the due date of the transactions for the companies with functional currency Real (positive and negative, before tax effects), as follows:

	Exchange rate sensitivity analysis (R$/US$)
			Scenario
		June 30, 2015	Probable	25%	50%	-25%	-50%
At June 30, 2015		3.1026	3.1026	3.8783	4.6539	2.3270	1.5513

Considering the above scenario the profit or loss would be impacted as follows:

		Variation scenario
Instrument	Risk factor	Probable		25%		50%		-25%		-50%
Cash and cash equivalents	USD fluctuation	72,036		17,791		35,580		(17,791	)	(35,580	)
Trade receivables in foreign currency	USD fluctuation	6,934		1,734		3,467		(1,734	)	(3,467	)
Exchange rate derivatives	USD fluctuation	2,137,306		492,251		984,490		(492,251	)	(984,490	)
Exchange rate and interest derivatives	USD and CDI fluctuation	2,575,750		856,857		1,681,109		(791,646	)	(1,615,899	)
Trade payable	USD fluctuation	(25,256	)	(6,314	)	(12,628	)	6,314		12,628
Loans, borrowings and debentures	USD fluctuation	(5,667,153	)	(1,317,063	)	(2,634,115	)	1,317,063		2,634,115
Contingent consideration - Earn out	USD fluctuation	(31,655	)	(7,914	)	(15,828	)	(7,914	)	(15,828	)
Impacts on profit or loss		(932,038	)	37,342		42,075		12,041		(8,521	)

53 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

b) Interest rate risk

The Company and its subsidiaries monitor the fluctuations in variable interest rates in connection with its borrowings, especially those that accrue interest using LIBOR, and uses derivative instruments in order to minimize variable interest rate fluctuation risks.

i. Sensitivity analysis on changes in interest rates

A sensitivity analysis on the interest rates on loans and borrowings in compensation for the CDI investments with pre-tax increases and decreases of 25% and 50% is presented below:

	June 30, 2015
Exposure interest rate		Balance		Probable(i)		25%		50%		-25%		-50%
Cash and cash equivalents		375,987		427,272		12,821		25,642		(12,821	)	(25,642	)
Investment securities		534,429		607,326		18,224		36,448		(18,224	)	(36,448	)
Loans, borrowings and debentures		1,261,240		1,170,245		(357,412	)	(714,824	)	357,412		714,824
Derivative financial instruments		(65,435	)	(67,902	)	87,199		189,328		(72,908	)	(134,975	)
Advances on real estate credits		(320,410	)	(341,237	)	(10,926	)	(21,852	)	10,926		21,852
Leases		(1,793,760	)	(2,038,429	)	(61,167	)	(122,334	)	61,167		122,334
Impacts on profit or loss				(242,725	)	(311,261	)	(607,592	)	325,552		661,945

(i) The CDI and TJLP indexes considered of 13.64% and 6.00%, respectively, were obtained from information available in the market.

Financial instruments fair value

The carrying amounts and fair value of financial assets and financial liabilities are as follows:

	Carrying amount				Fair value(i)
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
Assets
Cash and cash equivalents		2,531,947		1,649,340		2,531,947		1,649,340
Investment securities		874,242		149,735		874,242		149,735
Trade receivables		1,106,559		1,346,101		1,106,559		1,346,101
Derivative financial instruments		1,567,154		890,578		1,567,154		890,578
Related parties		258,566		250,884		258,566		250,884
Other receivables		420,221		440,180		420,221		440,180
Dividends receivable		47,352		36,130		47,352		36,130
Total		6,806,041		4,762,948		6,806,041		4,762,948

54 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

Liabilities
Loans, borrowings and debentures	16,546,239	8,502,640	16,327,891	8,287,378
Advances on real estate credits	320,410	—	320,410	—
Derivative financial instruments	647,724	333,435	647,724	333,435
Trade payables	2,016,748	1,112,459	2,016,748	1,112,459
Payables to related parties	116,288	137,441	116,288	137,441
Lease	1,793,760	—	1,793,760	—
Pension and post-employment benefits	312,047	301,850	312,047	301,850
Preferred shareholders payable in subsidiaries	2,050,181	1,926,888	2,050,181	1,926,888
Tax installments - REFIS	560,661	524,703	560,661	524,703
Contingent consideration - Earn out	128,616	186,649	128,616	186,649
Dividends payable	18,363	33,354	18,363	33,354
Total	24,511,037	13,059,419	24,292,689	12,844,157

(i) If these loans and borrowings were recorded at fair value, they would be considered as “Level 2” in the fair value hierarchy presented on Note 27.

Hedge accounting – Fair value

Currently the Company has adopted the fair value hedge for some of its operations that both the hedging instruments and the hedged items are accounted for at fair value through profit or loss. Operations and accounting effects of this adoption are as follows:

	Debt			Derivative			Total
At December 31, 2014		1,352,796			(183,086	)		1,169,710
Interest amortization		(40,330	)		(34,305	)		(74,635	)
Fair value		299,401			(223,231	)		76,170
At June 30, 2015		1,611,867			(440,622	)		1,171,245

27 Fair value hierarchy

Assets and liabilities
measured at fair value	Level 1		Level 2			Total
At June 30, 2015
Cash and cash equivalents		—		2,531,947			2,531,947
Derivative financial assets		—		1,567,154			1,567,154
Derivative financial liabilities		—		(647,724	)		(647,724	)
Loans, borrowings and debentures		—		(4,147,340	)		(4,147,340	)
Advances on real state credits		—		(320,410	)		(320,410	)
Investments securities		—		874,242			874,242
Pension and post-employment benefits		—		(312,047	)		(312,047	)
Assets held for sale		—		42,728			42,728
Investment properties		—		2,643,211			2,643,211
Total		—		2,231,761			2,231,761

55 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

At December 31, 2014
Derivative financial assets	—	890,578	890,578
Derivative financial liabilities	—	333,434	333,434
Loans, borrowings and debentures	—	2,806,097	2,806,097
Contingent consideration - Earn out	—	186,649	186,649
Pension plan assets	313,955	49,061	363,016
Securities	—	149,735	149,735
Assets held for sale	—	25,089	25,089
Preferred shareholders
payable in subsidiaries	—	1,926,888	1,926,888
Investment properties	—	2,641,978	2,641,978
Total	313,955	9,009,509	9,323,464

28 Pension and post-employment benefit plans

	June 30, 2015		December 31, 2014
Futura		23,770		23,048
Futura II		278		240
COMGÁS		287,999		278,562
Total		312,047		301,850

Pension plans

Defined benefit

Cosan Lubrificantes e Especialidades S.A. has a non-contributory defined benefit pension plan (Futura, formerly Previd Exxon) for certain employees upon retirement. This plan was amended to close it to new entrants and approved by the relevant authorities on May 5, 2011. No new employees are eligible to participate on the plan, contributions ceased, and participants are guaranteed a benefit proportionate to their accumulated entitlement as at March 31, 2011. During the three and six month periods ended June 30, 2015, the amounts of contributions totaled R$ 843 and R$ 1,879, respectively (R$ 2,368 and R$ 4,645 for the three and six month periods ended June 30, 2014).

Defined contribution

Since June 1, 2011, the Company and its subsidiaries have sponsored a defined 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 of the benefits owed. During the three and six month periods ended June 30, 2015, the amounts of contributions totaled R$ 378 and R$ 809, respectively (R$ 436 and R$ 1,009 for the three and six month period ended June 30, 2014).

COMGÁS offers a supplementary retirement plan, through a defined contribution Free Benefit Generating Plan (“PGBL”). During the three and six month periods ended June 30, 2015, employers’ contributions to the plan totaled R$4,577 and R$ 8,102, respectively (R$ 8,187 and R$ 16,373 for the three and six month periods ended June 30, 2014).

56 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and six month periods ended June 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$, unless otherwise stated)

29 Share-based payment

Cosan S.A.

At the annual and extraordinary general shareholders’ meeting held on July 29, 2011, the guidelines for the outlining and structuring of the stock option compensation plan for Cosan S.A.’s executives and employees were approved, authorizing the issue of up to 5% of shares of Cosan S.A.’s total capital. This stock option plan was created to attract and retain executives 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 number of stock option awards of 12,000,000 shares to be issued or treasury shares held by Cosan S.A., corresponding to 2.41% of the share capital at that time. On the same date the eligible executives were informed about the terms and conditions of the stock-option plan.

The numbers of options in the six month periods ended June 30, 2015 is 8,912,000 with weighted average exercise price R$ 30.09. During the six month periods ended June 30, 2015, there was no change in the plan options.

Cosan Log

With the acquisition of ALL by the Rumo, the stock option plan were canceled and assumed by the Rumo. Therefore, the fair value stock options were recalculated on the merger date on April 1, 2015.

The total of 1,478,659 options that were assumed by the Rumo is R$ 0.18 per fair value option, calculated by the binomial method. The average exercise price is R$ 5.03. This measure will generate a total expenditure relating to the plan of R$ 264.

30 Discontinued operations

Discontinued operations represent the results of ALL's subsidiaries in Argentina in the final discontinuity stage. The results of discontinued operations for the quarter ended June 30, 2015 are as follows:

	April 1, 2015 to
	June 30, 2015
Selling, general and administrative expenses		(503	)
Financial results		(3,072	)
Loss before taxes		(3,575	)
Income tax (expense) benefit		(7	)
Loss from discontinued operations, net of tax		(3,582	)

The operating cash flow from discontinued operations amounted to an outflow of R$ 478.

***

57 

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:	August 14, 2015	By:	/s/ Marcelo Eduardo Martins
			Name:	Marcelo Eduardo Martins
			Title:	Chief Financial Officer and Investor Relations Officer