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 November, 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 for 3rd Quarter of Fiscal Year 2015
2.	Cosan Limited consolidated interim financial statements at September 30, 2015 and independent auditors’ review report

Item 1

  COSAN LIMITED 3rd quarter of the Fiscal Year 2015

earnings release 3q15

São Paulo, November 11, 2015–COSAN LIMITED (NYSE: CZZ eBM&FBovespa: CZLT33) announces today its results for the third quarter (July, August and September) of 2015 (3Q15). The results are consolidated in accordance with the accounting principles adopted in Brazil and internationally (IFRS).

Financial Highlights

Summary of Financial Information - Cosan Limited Pro forma¹	3Q15	3Q14	Chg. %	2Q15	Chg. %
R$ MM	(Jul-Sep)	(Jul-Sep)	3Q15 / 3Q14	(Apr-Jun)	3Q15 / 2Q15
Net Revenues	12,798.4	10,283.6	24.5%	11,325.7	13.0%
Gross Profit	1,665.4	1,235.7	34.8%	1,579.8	5.4%
Gross Margin (%)	49.4%	36.6%	12.7 p.p.	46.8%	2.5 p.p.
Operations Profit	865.4	559.9	54.6%	898.6	-3.7%
EBITDA	1,534.9	1,060.2	44.8%	1,454.1	5.6%
EBITDA Margin (%)	45.5%	31.4%	14.1 p.p.	43.1%	2.4 p.p.
Equity Pick up	4.6	(8.3)	n/a	(3.4)	n/a
Net Income before non-controlling Interest	86.1	110.3	-21.9%	152.4	-43.5%
Net Income	48.4	20.5	n/a	6.5	n/a
Net Margin (%)	1.4%	0.6%	0.8 p.p.	0.2%	1.2 p.p.

Note 1: Considering50% consolidation of the results of Raízen Combustíveis and Raízen Energia.

Cosan Limited Consolidated Result

The Company's subsidiariesCosan S/A Indústria e Comércio (BM&FBovespa CSAN3)and Cosan Logístisca S/A (BM&FBovespa RLOG3) reported their results on August 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:

Cosan S/A (CSAN3) - Investor Relations

Cosan Logística (RLOG3 and RUMO3) - Investor Relations

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  3rd 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:

Executive Summary 3Q15

The challenges posed by Brazil's macroeconomic slowdown since the start of the year continued into the third quarter of 2015.The period was also marked by high volatility in the U.S. dollar exchange rate and in international sugar, ethanol and crude oil prices. Despite this challenging environment, our businesses continued to perform in line with our expectations for the year and in line with our guidance.

Cosan Logística:Consolidated EBITDA of Rumo ALL grew 3% to R$551 million, despite higher reclassification of maintenance expenses (parts, services and personnel). EBITDA in 9M15 reached R$1,450 million, nearly 80% of the midpoint of our guidance for 2015. Total volume transported reached 12.5 billion RTK (up 6% from 3Q14), mainly due to the 14% increase in the transportation of agricultural products. North Operations presented 16% volume growth and R$490 million of EBITDA (18% up from 3Q14). Port loading of 3.7 million tons: up 20% from 3Q14 due to the sugar crop peak season, as well as additional corn volumes in the quarter. Leverage decreased by 2.3% compared to 2Q15, achieving 4.85 times the net debt/LTM EBITDA, due to the improvement in EBITDA LTM.

Cosan S/A: Pro forma EBITDA was R$1,090 million, up 11% compared to 3Q14. Pro forma EBITDA amounted to R$992 million, increasing 2% from 3Q14. The seasonally weaker result at Raízen Energia in the quarter, which was partially offset by the higher net income at Raízen Combustíveis and Comgás, contributed to the net loss of R$13 million at Cosan. The third quarter of the year (the second of the crop year) is typically marked by cash burn at Raízen Energia due to the inventory building strategy, which resulted in the pro forma use R$136 million in 3Q15. In the year to date (9M15), Cosan generated R$1,190 million of cash, reflecting the strong focus on improving operating performance and on reducing CAPEX in the business units.

Raízen Combustíveis:Adjusted EBITDA, excluding the effects from asset divestments, advanced 7% on 3Q14(+9% for reported EBITDA). Fuel sales continued to suffer from the country’s weaker economic activity, especially diesel. Even so, sales volume growth outpaced the industry average (-3,1% source: ANP). Otto cycle (gasoline+ethanol) sales volume advanced 5% on 3Q14, especially in the retail segment, supported by the faster pace of service station conversions and the maturation of stations converted in recent years. Diesel sales contracted 1% from 3Q14, while diesel sales by the overall industry contracted 6%, which is explained by new contracts signed in the period and stronger demand from agribusiness consumers. EBITDA growth in the quarter was driven by the expansion in ethanol unit margin and by the product's higher share in the sales mix.

Raízen Energia:Adjusted EBITDA, excluding the effects from the variation in biological assets and hedge accounting, reached R$837 million, increasing 20% over 3Q14.The results in the quarter (second of the 2015/16 crop year) were driven a sequential increase in crushing volumes, despite the atypical rains in the period, supporting higher sales volumes of sugar (+18%) and ethanol (+11%). Agricultural yield in the quarter (measured in tons of TRS content per hectare) also improved, reaching

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  Cosan Limited - Press Release  3rd quarter of the Fiscal Year 2015 

12.3 tons TRS/ha, compared to 10.3 tons TRS/ha in 3Q14. Unit cash cost increased compared to 3Q14, reflecting the late start of the crushing season, particularly for own cane, resulting in the higher crushing of cane from suppliers, for which the TRS price published by CONSECANA increased. CAPEX decreased 41% from 3Q14, which reflects the plan to optimize investments in the sugar and ethanol segment and is in line with our guidance.

Comgás: Normalized EBITDA, which includes the effect from the regulatory current account, totaled R$380 million, increasing 6% over 3Q14.Natural gas sales continued to suffer from the slower economic activity, especially in the industrial segment. Lower water consumption in the state of São Paulo, combined with abnormally high temperatures, adversely affected residential unit consumption. Excluding thermal power, sales volumes contracted 6% compared to 3Q14. On the other hand, 23 industrial clients, 335 commercial clients and 30,000 residential clients were connected in the quarter. EBITDA growth in the period is explained by the better sales mix, tariff increases and control of expenses.

Lubrificantes: EBITDA in 3Q15 continued to improve, growing 37% on the year-ago period to R$42 million. EBITDA growth and EBITDA margin expansion in the period were driven by the better sales mix and the results from the international operations.

Radar: EBITDA amounted to R$13 million in 3Q15, a period marked by a lower volume of property sales. There was also no variation in the market indicators used to adjust the value of the own land portfolio.Radar ended the quarter with 278,600 hectares of own and third-party land under management, with a market value of R$5.3 billion.

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  Cosan Limited - Press Release  3rd quarter of the Fiscal Year 2015 

We present below the 3Q15 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) 3Q15	Raízen Combustíveis			Raízen Energia			Comgás			Lubricants			Radar			Other Businesses			Raízen Deconsolidation			Adjusts and Eliminations			Cosan S/A Account			Cosan Logística			Cosan Limited (Parent Company)			Adjusts and Eliminations			Cosan Limited Consolidadated
Net Revenue		15,638.9			2,637.5			1,743.1			484.2			31.9			0.0			(18,276.3	)		-			2,259.2			1,357.7			-			(11.6	)		3,605.3
Cost of Goods and Services		(14,884.9	)		(2,195.6	)		(1,241.4	)		(367.1	)		(10.7	)		(0.1	)		17,080.6			-			(1,619.3	)		(921.4	)		-			11.6			(2,529.1	)
Gross Profit		753.9			441.8			501.7			117.1			21.2			(0.1	)		(1,195.8	)		-			639.9			436.3			-			(0.0	)		1,076.2
Gross Margin(%)		4.8	%		16.8	%		28.8	%		24.2	%		66.4	%		n/a			0.0	%		n/a			28.3	%		32.1	%		n/a			0.0	%		29.9	%
Selling Expenses		(306.0	)		(188.4	)		(156.5	)		(74.6	)		-			-			494.3			-			(231.1	)		(2.6	)		-			-			(233.6	)
General and Administrative Expenses		(91.3	)		(137.3	)		(78.3	)		(18.5	)		(8.0	)		(38.9	)		228.6			-			(143.8	)		(96.2	)		(5.1	)		-			(245.0	)
Other Operating Revenues (Expenses)		88.0			(5.4	)		(0.7	)		0.4			0.0			(12.1	)		(82.6	)		-			(12.4	)		11.2			-			-			(1.2	)
Equity Pick-up		3.5			(14.8	)		-			(2.4	)		0.0			147.7			11.3			(116.1	)		29.2			4.1			(15.0	)		15.0			33.3
Depreciation and Amortization		144.8			509.8			120.9			20.1			0.1			1.1			(654.6	)		-			142.3			195.3			-			-			337.6
EBITDA		593.1			605.7			387.1			42.1			13.3			97.7			(1,198.8	)		(116.1	)		424.1			548.2			(20.1	)		15.0			967.2
EBITDA Margin (%)		3.8	%		23.0	%		22.2	%		8.7	%		41.6	%		n/a			0.0	%		n/a			18.8	%		40.4	%		n/a			0.0	%		26.8	%
Financial income		(45.4	)		(262.4	)		(58.4	)		(1.5	)		(0.3	)		(214.9	)		307.8			4.9			(270.2	)		(384.3	)		(9.4	)		-			(663.9	)
Financial expense		39.4			181.9			105.1			2.0			3.5			35.3			(221.3	)		(4.9	)		140.8			57.5			0.0			-			198.3
Foreign exchange gain (losses), net		(169.7	)		(622.2	)		349.6			(17.4	)		-			(512.9	)		791.9			-			(180.8	)		(139.0	)		48.6			-			(271.2	)
Derivatives		81.1			239.9			(395.4	)		3.4			-			498.0			(321.0	)		-			106.0			71.7			29.3			-			207.0
Income taxes expenses		(84.0	)		161.0			(94.9	)		(4.5	)		(3.5	)		84.8			(77.0	)		-			(18.1	)		1.3			-			-			(16.8	)
Non-controlling interests		(6.1	)		-			-			-			-			-			6.1			(73.0	)		(73.0	)		32.0			-			8.9			(32.0	)
Profit (loss) for the period		263.5			(206.0	)		172.2			4.0			12.9			(13.3	)		(57.5	)		(189.0	)		(13.3	)		(10.6	)		48.4			23.9			48.4

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  Cosan Limited - Press Release  3rd quarter of the Fiscal Year 2015 

Financial Statements

Cosan Limited (CZZ)

Indicators	3Q15		3Q14		Chg.%		3Q15		3Q14		Chg.%
BRL Million	09/30/2015		09/30/2014		3Q15 x 3Q14		09/30/2015		09/30/2014		9M 15 x 9M 14
EBITDA	159.5		211.8		-24.7	%	456.3		572.8		-20.3	%
Income Statement for the period	3Q15		3Q14		Chg.%		3Q15		3Q14		Chg.%
BRL Million	09/30/2015		09/30/2014		3Q15 x 3Q14		09/30/2015		09/30/2014		9M 15 x 9M 14
Net Operating Revenue	2,259.2		2,101.0		7.5	%	6,316.8		6,105.7		3.5	%
Cost of goods sold	(1,619.3	)	(1,488.8	)	8.8	%	(4,475.0	)	(4,302.6	)	4.	%
Gross Profit	639.9		612.2		4.5	%	1,841.7		1,803.2		2.1	%
Sales, general and administrative expenses	(374.9	)	(363.6	)	3.1	%	(1,098.7	)	(1,052.7	)	4.4	%
Other operating income (expenses), net	(12.4	)	(5.5	)	n/a		(113.2	)	(103.0	)	9.9	%
Financial revenue	140.8		44.9		n/a		279.0		143.8		94.	%
Financial expenses	(270.2	)	(248.5	)	8.7	%	(829.7	)	(704.3	)	17.8	%
Foreign exchange variation	(180.8	)	(209.6	)	-13.8	%	(641.8	)	(108.1	)	n/a
Derivative	106.0		116.5		-9.	%	442.8		58.4		n/a
Equity pick up	29.2		75.8		-61.5	%	274.1		461.9		-40.7	%
Income and Social Contribution Taxes	(18.1	)	35.2		n/a		30.0		21.2		42.	%
Equity attributable to non-controlling interests	(73.0	)	(80.0	)	-8.8	%	(192.0	)	(237.5	)	-19.2	%
Net Income from discontinued operations	0.0		37.8		-100.	%	(0.0	)	92.6		n/a
Net Income (loss)	(13.3	)	15.2		n/a		(7.6	)	375.5		n/a
Balance Sheet	3Q15		2Q15
BRL Million	09/30/2015		06/30/2015
Cash and Cash Equivalents	1,865		2,021
Securities	215		191
Accounts Rreceivable	862		829
Inventories	392		332
Other Current Assets	913		401
Investments	8,426		8,654
Investment Property	2,386		2,643
Biological Assets	(0	)	(0	)
Property, Plant and Equipment	384		373
Intangible	9,414		9,410
Other Non-Current Assets	1,775		2,019
Total Assets	29,179		28,400
Loans and Financing	(9,000	)	(8,222	)
Suppliers	(1,545	)	(1,314	)
Salaries Payable	(95	)	(78	)
Other current liabilities	(431	)	(355	)
Other non-current liabilities	(5,208	)	(5,446	)
Net Equity	(12,143	)	(12,363	)
Total Liabilities	(29,179	)	(28,400	)

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  Cosan Limited - Press Release  3rd quarter of the Fiscal Year 2015 

Cosan Limited – Pro forma (including 50% of Raízen)

Indicators	3Q15		3Q14		Chg.%		3Q15		3Q14		Chg.%
BRL Million	09/30/2015		09/30/2014		3Q15 x 3Q14		09/30/2015		09/30/2014		9M 15 x 9M 14
EBITDA	1,534.9		1,060.2		44.8	%	3,911.9		2,950.9		32.6	%
Income Statement for the period	3Q15		3Q14		Chg.%		3Q15		3Q14		Chg.%
BRL Million	09/30/2015		09/30/2014		3Q15 x 3Q14		09/30/2015		09/30/2014		9M 15 x 9M 14
Net Operating Revenue	(11,132.9	)	(9,047.9	)	23.0	%	(29,850.4	)	(25,846.9	)	15.5	%
Gross Profit	1,665.4		1,235.7		34.8	%	4,425.4		3,625.8		22.1	%
Sales, general and administrative expenses	(840.1	)	(724.9	)	15.9	%	(2,340.6	)	(2,137.9	)	9.5	%
Other operating income (expenses), net	40.1		49.1		-18.3	%	57.8		68.6		-15.7	%
Financial revenue	293.0		159.7		83.4	%	746.2		378.6		97.1	%
Financial expenses	(801.8	)	(390.3	)	n/a		(2,057.4	)	(1,050.5	)	95.8	%
Foreign exchange variation	(667.1	)	(367.6	)	81.5	%	(1,463.3	)	(179.6	)	n/a
Derivative	367.5		170.1		n/a		974.4		105.1		n/a
Equity pick up	4.6		(8.3	)	n/a		(3.2	)	(23.2	)	-86.0	%
Income and Social Contribution Taxes	24.6		(13.2	)	n/a		(69.0	)	(196.8	)	-64.9	%
Equity attributable to non-controlling interests	(35.1	)	(89.7	)	-60.9	%	(199.6	)	(390.1	)	-48.8	%
Net Income from discontinued operations	2.6		(0.0	)	n/a		6.2		0.0		n/a
Net Income (loss)	48.4		20.5		n/a		64.5		200.1		-67.8	%
Balance Sheet	3Q15		2Q15
BRL Million	09/30/2015		06/30/2015
Cash and Cash Equivalents	3,951		4,474
Securities	1,094		726
Accounts Rreceivable	2,024		1,937
Inventories	2,401		1,851
Other Current Assets	1,861		1,350
Investments	427		414
Investment Property	2,386		2,643
Biological Assets	952		1,002
Property, Plant and Equipment	15,600		15,480
Intangible	21,009		20,994
Other Non-Current Assets	6,095		6,118
Total Assets	61,288		58,937
Loans and Financing	(24,680	)	(22,669	)
Suppliers	(3,137	)	(2,738	)
Salaries Payable	(452	)	(468	)
Other current liabilities	(2,024	)	(2,008	)
Other non-current liabilities	(13,822	)	(13,996	)
Net Equity	(16,134	)	(16,327	)
Total Liabilities	(61,288	)	(58,937	)

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  Cosan Limited - Press Release  3rd quarter of the Fiscal Year 2015 

Cosan Industria e Comércio S/A (CSAN3)

Indicators	3Q15		3Q14		Chg.%		9M 15		9M 14		Chg.%
BRL mln	(Jul-Sep)		(Jul-Sep)		3Q15 / 3Q14		(Jan-Sep)		(Jan-Sep)		9M 15 / 9M 14
EBITDA	424.1		466.2		-9.0	%	1,324.7		1,543.0		-14.1	%
Income Statement for the Period	3Q15		3Q14		Chg.%		9M 15		9M 14		Chg.%
BRL mln	(Jul-Sep)		(Jul-Sep)		3Q15 / 3Q14		(Jan-Sep)		(Jan-Sep)		9M 15 / 9M 14
Net Operating Revenue	2,259.2		2,101.0		7.5	%	6,316.8		6,105.7		3.5	%
Cost of goods sold	(1,619.3	)	(1,488.8	)	8.8	%	(4,475.0	)	(4,302.6	)	4.0	%
Gross profit	639.9		612.2		4.5	%	1,841.7		1,803.2		2.1	%
Selling, general and administrative expenses	(374.9	)	(363.6	)	3	%	(1,098.7	)	(1,052.7	)	4	%
Other net operating income (expenses)	(12.4	)	(5.5	)	n/a		(113.2	)	(103.0	)	10	%
Financial income	140.8		44.9		n/a		279.0		143.8		94	%
Financial expenses	(270.2	)	(248.5	)	9	%	(829.7	)	(704.3	)	18	%
Exchange variation	(180.8	)	(209.6	)	-14	%	(641.8	)	(108.1	)	n/a
Derivatives	106.0		116.5		-9	%	442.8		58.4		n/a
Equity income (loss)	29.2		75.8		-61	%	274.1		461.9		-41	%
Income and social contribution taxes	(18.1	)	35.2		n/a		30.0		21.2		42	%
Non-controlling interest	(73.0	)	(80.0	)	-9	%	(192.0	)	(237.5	)	-19	%
Discontinued operations	0.0		37.8		-100	%	0.0		92.6		-100	%
Net Income	(13.3	)	15.2		n/a		(7.6	)	375.5		n/a
Balance Sheet	3Q15		2Q15
BRL mln	9/30/2015		6/30/2015
Cash and cash equivalents	1,865		2,021
Títulos e valores mobiliários	215		191
Trade accounts receivable	872		829
Inventories	392		332
Financial instruments and derivatives	2,547		1,527
Other current assets	903		401
Other noncurrent assets	1,775		2,019
Investments	8,426		8,654
Investment properties	2,386		2,643
Property, plant and equipment	384		373
Intangible assets	9,414		9,410
Total Assets	29,179		28,400
Loans and Financing	(9,000	)	(8,222	)
Financial instruments and derivatives	(757	)	(622	)
Trade accounts payable	(1,545	)	(1,314	)
Payroll	(95	)	(78	)
Other current liabilities	(431	)	(355	)
Other noncurrent liabilities	(5,208	)	(5,446	)
Shareholders' Equity	(12,143	)	(12,363	)
Total Liabilities	(29,179	)	(28,400	)

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  Cosan Limited - Press Release  3rd quarter of the Fiscal Year 2015 

Cosan Logística S/A (RLOG3)

Indicators	3Q15		3Q14		Chg.%		3Q15		3Q14		Chg.%
BRL Million	09/30/2015		09/30/2014		3Q15 x 3Q14		09/30/2015		09/30/2014		9M 15 x 9M 14
EBITDA	548.2		86.4		n/a		1,195.7		251.8		n/a
Income Statement for the period	3Q15		3Q14		Chg.%		3Q15		3Q14		Chg.%
BRL Million	09/30/2015		09/30/2014		3Q15 x 3Q14		09/30/2015		09/30/2014		9M 15 x 9M 14
Net Operating Revenue	1,357.7		261.3		n/a		2,783.6		659.7		n/a
Cost of goods sold	(921.4	)	(180.7	)	n/a		(1,833.8	)	(432.8	)	n/a
Gross Profit	436.3		80.6		n/a		949.9		226.9		n/a
Sales, general and administrative expenses	(98.7	)	(20.9	)	n/a		(207.9	)	(63.6	)	n/a
Other operating income (expenses), net	11.2		19.6		-42.9	%	50.6		18.1		n/a
Financial revenue	57.5		6.5		n/a		111.0		28.6		n/a
Financial expenses	(384.3	)	(9.8	)	n/a		(749.6	)	(52.3	)	n/a
Foreign exchange variation	(139.0	)	0.3		n/a		(195.3	)	0.6		n/a
Derivative	71.7		-		n/a		96.3		-		n/a
Equity pick up	4.1		(18.6	)	n/a		4.3		0.0		n/a
Income and Social Contribution Taxes	1.3		(19.4	)	n/a		(50.1	)	(47.0	)	6.6	%
Equity attributable to non-controlling interests	32.0		(9.9	)	n/a		5.0		(23.3	)	n/a
Net Income from discontinued operations	2.6		(0.0	)	n/a		6.2		88.0		-92.9	%
Net Income (loss)	(10.6	)	28.4		n/a		7.9		88.0		-91.1	%
Balance Sheet	3Q15		2Q15
BRL Million	09/30/2015		06/30/2015
Cash and Cash Equivalents	241		508
Securities	879		534
Accounts Rreceivable	186		157
Inventories	191		107
Other Current Assets	369		462
Investments	45		41
Property, Plant and Equipment	9,122		8,814
Intangible	7,785		7,801
Other Non-Current Assets	2,782		2,715
Total Assets	21,680		21,154
Loans and Financing	(8,312	)	(7,966	)
Suppliers	(746	)	(702	)
Salaries Payable	(171	)	(134	)
Other current liabilities	(1,103	)	(972	)
Other non-current liabilities	(7,162	)	(7,132	)
Net Equity	(4,175	)	(4,223	)
Total Liabilities	(21,680	)	(21,154	)

8 of 8 

Item 2

Cosan Limited

Consolidated interim financial statements at

September 30, 2015 and independent 

auditors’ review report

Cosan Limited

Consolidated interim financial statements

For the three and nine month periods ended September 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 September 30, 2015, which comprises the statement of financial position as of September 30, 2015 and the respective statements of profit or loss and comprehensive income (loss) for the three and nine month periods then ended, and changes in shareholders’ equity and cash flows for the nine 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 nine month periods ended September 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 November 5, 2014, respectively.

São Paulo, November 10, 2015

KPMG Auditores Independentes 

CRC 2SP014428/O-6

Carlos Augusto Pires 

Contador CRC 1SP184830/O-7

4 

Cosan Limited

Consolidated statements of financial position

(In thousands of Brazilian Reais - R$)

	Note	September 30, 2015		December 31, 2014
Assets
Cash and cash equivalents	5		2,126,808		1,649,340
Restricted cash			83,136		-
Investment securities			1,093,917		149,735
Trade receivables	6		1,047,741		865,109
Derivative financial instruments	26		502,002		30,069
Inventories			583,022		353,720
Receivables from related parties	8		68,158		38,357
Income tax receivable			114,009		94,100
Other current tax receivable			331,368		78,818
Other trade receivables	7		76,445		69,683
Dividends receivable			212,938		36,130
Assets held for sale	11		289,295		25,089
Other current assets			146,701		174,957
Total current assets			6,675,540		3,565,107
Trade receivables	6		59,581		480,992
Restricted cash			92,628		-
Deferred tax assets	19		1,677,495		214,164
Receivables from related parties	8		201,543		212,527
Income tax receivable			232,484		8,778
Other non-current tax receivable			543,709		17,299
Judicial deposits	20		751,222		418,385
Other trade receivables	7		-		370,497
Derivative financial instruments	26		2,165,351		860,509
Other non-current assets			998,253		648,669
Investment in associates	9		191,797		130,677
Investment in joint ventures	10		8,279,197		8,404,503
Investment property	11		2,385,932		2,641,978
Property, plant and equipment	12		9,506,087		1,435,890
Intangible assets and goodwill	13		17,199,097		10,286,373
Total non-current assets			44,284,376		26,131,241
Total assets			50,959,916		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	September 30, 2015			December 31, 2014
Liabilities
Loans, borrowings and debentures	14		2,840,406			1,056,353
Leases	15		537,048			-
Advances on real estate credits			108,688			-
Derivative financial instruments	26		13,209			13,803
Trade payables	17		2,291,288			1,112,459
Employee benefits payable			265,596			120,416
Income tax payable			56,400			30,905
Other taxes payable	18		163,984			307,741
Leases and concessions	16		19,545			-
Dividends payable			19,232			33,354
Payables to related parties	8		202,556			137,441
Other current liabilities			412,641			158,471
Total current liabilities			6,930,593			2,970,943
Loans, borrowings and debentures	14		14,864,182			7,446,287
Leases	15		1,286,597			-
Advances on real estate credits			197,409			-
Derivative financial instruments	26		756,008			319,632
Trade payables	17		1,391			-
Other taxes payable	18		190,911			334,565
Provision for legal proceedings	20		1,253,555			657,779
Leases and concessions	16		2,114,396			-
Pension and post-employment benefits	28		317,864			301,850
Deferred tax liabilities	19		4,203,271			1,739,274
Preferred shareholders payable in subsidiaries	21		2,106,730			1,926,888
Deferred revenue			104,526			-
Other non-current liabilities			592,903			509,823
Total non-current liabilities			27,989,743			13,236,098
Total liabilities			34,920,336			16,207,041
Shareholders' equity	22
Share capital			5,328			5,328
Additional paid in capital			4,006,312			3,887,109
Other comprehensive loss			(362,653	)		(165,618	)
Retained earnings			2,087,967			2,117,739
Equity attributable to owners of the parent			5,736,954			5,844,558
Non-controlling interests	9		10,302,626			7,644,749
Total shareholders' equity			16,039,580			13,489,307
Total shareholders' equity and liabilities			50,959,916			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 nine month periods ended September 30, 2015 and 2014

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

	Note	July 1, 2015 to September 30, 2015			January 1, 2015 to September 30, 2015			July 1, 2014 to September 30, 2014			January 1, 2014 to September 30, 2014
Net sales			3,605,328			9,079,694			2,362,250			6,765,425
Cost of sales			(2,529,121	)		(6,288,099	)		(1,669,466	)		(4,735,344	)
Gross profit			1,076,207			2,791,595			692,784			2,030,081
Selling expenses			(233,615	)		(673,976	)		(229,667	)		(660,572	)
General and administrative expenses			(245,048	)		(658,366	)		(155,852	)		(473,837	)
Other expense, net	25		(1,211	)		(62,615	)		(4,492	)		(103,452	)
Operating expense			(479,874	)		(1,394,957	)		(390,011	)		(1,237,861	)
Income before financial results, equity in earnings of investees and income taxes			596,333			1,396,638			302,773			792,220
Equity in earnings of investees
Equity in earnings of associates	9		4,493			1,515			(3,369	)		(2,702	)
Equity in earnings of joint ventures	10		28,767			276,812			79,168			464,633
			33,260			278,327			75,799			461,931
Financial results	24
Finance expense			(663,865	)		(1,604,757	)		(263,336	)		(770,794	)
Finance income			198,339			390,106			51,404			174,176
Foreign exchange losses, net			(271,185	)		(764,917	)		(200,171	)		(103,612	)
Derivatives			206,988			582,516			124,412			51,225
			(529,723	)		(1,397,052	)		(287,691	)		(649,005	)
Profit before taxes			99,870			277,913			90,881			605,146
Income tax (expense) benefit	19
Current			(29,181	)		(149,872	)		(55,045	)		(121,271	)
Deferred			12,385			129,767			70,905			95,387
			(16,796	)		(20,105	)		15,860			(25,884	)
Profit from continuing operations			83,074			257,808			106,741			579,262
Loss from discontinued operations, net of tax	30		(2,624	)		(6,206	)		-			-
Profit for the period			80,450			251,602			106,741			579,262
Other comprehensive income (loss)	22
Items that will not be reclassified to profit or loss:
Actuarial loss on defined benefit plan			-			-			3,028			1,612
Taxes on items that will not be reclassified to profit or loss			-			-			(1,030	)		(548	)
			-			-			1,998			1,064
Items that may be reclassified to profit or loss:
Foreign currency translation effect			(126,652	)		(193,689	)		(33,397	)		(30,233	)
Loss on cash flow hedge in  joint ventures and subsidiary			(96,987	)		(40,459	)		(41,834	)		(83,214	)
Changes in fair value of available for sale securities			2,485			7,483			63			2,610
Taxes on items that may be reclassified to profit or loss			(802	)		(2,875	)		14,202			27,405
			(221,956	)		(229,540	)		(60,966	)		(83,432	)

7 

Cosan Limited

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

For the three and nine month periods ended September 30, 2015 and 2014

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

Total other comprehensive loss, net of tax		(221,956	)	(229,540	)	(58,968	)	(82,368	)
Total comprehensive income (loss)		(141,506	)	22,062		47,773		496,894
Net income attributable to:
Owners of the Parent (including discontinued operations)		48,407		64,474		20,542		200,098
Non-controlling interests		32,043		187,128		86,199		379,164
Total comprehensive income (loss) attributable to:
Owners of the Parent		(123,387	)	(132,561	)	(27,531	)	142,689
Non-controlling interests		(18,119	)	154,623		75,304		354,205
Basic earnings per share	23
Continuing operations		R$ 0.18		R$ 0.25		R$ 0.08		R$ 0.76
Discontinued operations		R$ 0.00		R$ 0.00		R$ 0.00		R$ 0.00
		R$ 0.18		R$ 0.25		R$ 0.08		R$ 0.76
Diluted earnings per share	23
Continuing operations		R$ 0.12		R$ 0.19		(R$ 0.02)		R$ 0.47
Discontinued operations		R$ 0.00		R$ 0.00		R$ 0.00		R$ 0.00
		R$ 0.12		R$ 0.19		(R$ 0.02)		R$ 0.47

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

8 

Cosan Limited

Statements of changes in shareholders’ equity

For the nine month periods ended September 30, 2015 and 2014

(In thousands of Brazilian Reais - R$)

			Capital reserve
			Additional			Other						Equity 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		-		-			-			64,474			64,474			187,128			251,602
Other comprehensive income
Foreign currency translation effects		-		-			(172,287	)		-			(172,287	)		(21,402	)		(193,689	)
Loss on cash flow hedge in joint ventures and subsidiary		-		-			(25,498	)		-			(25,498	)		(15,292	)		(40,790	)
Changes in fair value of available for sale securities		-		-			750			-			750			4,189			4,939
Total comprehensive income for the period		-		-			(197,035	)		64,474			(132,561	)		154,623			22,062
Contributions by and distributions to owners of the Parent
Dividends - non-controlling interests		-		(1,965	)		-			-			(1,965	)		1,965			-
Share based compensation - Subsidiaries		-		5,496			-			-			5,496			3,293			8,789
Dividends		-		-			-			(94,246	)		(94,246	)		(299,462	)		(393,708	)
Total contributions by and distributions to owners of the Parent		-		3,531			-			(94,246	)		(90,715	)		(294,204	)		(384,919	)
Transactions with owners of the Parent
Acquisition of non-controlling interest		-		636			-			-			636			(10,838	)		(10,202	)
Business combination ALL		-		118,937			-			-			118,937			2,829,498			2,948,435
Share buy-back costs - Rumo		-		(3,901	)		-			-			(3,901	)		(21,202	)		(25,103	)
Total transactions with owners of the Parent		-		115,672			-			-			115,672			2,797,458			2,913,130
At September 30, 2015		5,328		4,006,312			(362,653	)		2,087,967			5,736,954			10,302,626			16,039,580

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

9 

Cosan Limited

Statements of changes in shareholders’ equity

For the nine month periods ended September 30, 2015 and 2014

(In thousands of Brazilian Reais - R$)

			Capital reserve
			Additional			Other						Equity 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		-		-			-			200,098			200,098			379,164			579,262
Other comprehensive income
Foreign currency translation effects		-		-			(23,953	)		-			(23,953	)		(6,280	)		(30,233	)
Loss on cash flow hedge in joint ventures and subsidiary		-		-			(34,217	)		-			(34,217	)		(20,704	)		(54,921	)
Actuarial gain on defined benefit plan		-		-			380			-			380			684			1,064
Changes in fair value of available for sale securities		-		-			381			-			381			1,341			1,722
Total comprehensive income for the period		-		-			(57,409	)		200,098			142,689			354,205			496,894
Contributions by and distributions to owners of the Parent
Share options exercised - Subsidiaries		-		28,436			-			-			28,436			17,206			45,642
Dividends - non-controlling interests		-		458			-			-			458			-			458
Share based compensation - Subsidiaries		-		4,791			-			-			4,791			2,899			7,690
Dividends		-		-			-			(92,071	)		(92,071	)		(115,433	)		(207,504	)
Total contributions by and distributions to owners of the Parent		-		33,685			-			(92,071	)		(58,386	)		(95,328	)		(153,714	)
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		-		(22,313	)		-			-			(22,313	)		(13,501	)		(35,814	)
Total transactions with owners of the Parent		-		(23,133	)		-			-			(23,133	)		(10,483	)		(33,616	)
At September 30, 2014		5,328		3,839,410			(142,296	)		2,245,002			5,947,444			7,681,884			13,629,328

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

10 

Cosan Limited

Consolidated statements of cash flows 

For the nine month periods ended September 30, 2015 and 2014

(In thousands of Brazilian Reais - R$)

	Note	January 1, 2015 to September 30, 2015			January 1, 2014 to September 30, 2014
Cash flows from operating activities
Profit before taxes			277,913			605,146
Adjustments for:
Depreciation and amortization	12 / 13		820,066			503,921
Equity in earnings of associates	9		(1,515	)		2,702
Equity in earnings of joint ventures	10		(276,812	)		(464,633	)
Loss on disposal of assets			5,884			7,387
Share-based compensation expense	8		8,789			7,690
Change in fair value of investment property	11 / 25		(23,162	)		(63,728	)
Provisions for legal proceedings	25		37,092			40,706
Indexation charges, interest and exchange gains/losses, net			1,574,174			678,042
Other			163,219			72,492
			2,585,648			1,389,725
Changes in:
Trade receivables			(72,945	)		(212,801	)
Inventories			(113,639	)		(14,801	)
Recoverable taxes			(35,375	)		54,515
Related parties			(22,539	)		(49,958	)
Advances to suppliers			(32,917	)		-
Trade payables			560,103			128,714
Employee benefits			(35,824	)		(31,090	)
Provisions for legal proceedings			(21,158	)		(11,569	)
Judicial deposits			(2,825	)		(2,150	)
Actuarial on defined benefit plan			(17,711	)		(5,806	)
Income and other taxes			(76,051	)		(193,628	)
Other assets and liabilities, net			(180,579	)		(121,317	)
			(51,460	)		(459,891	)
Net cash generated by operating activities			2,534,188			929,834
Cash flows from investing activities
Capital contribution in associates			(59,747	)		(18,883	)
Investment securities			(161,405	)		-
Restricted cash			57,490			-
Net cash acquired in business combination	3		169,703			-
Dividends received from associates			1,150			1,938
Dividends received from joint ventures			206,425			315,010
Acquisition of property, plant and equipment and intangible assets, net			(1,337,715	)		(754,944	)
Net cash used in investing activities			(1,124,099	)		(456,879	)

11 

Cosan Limited

Consolidated statements of cash flows 

For the nine month periods ended September 30, 2015 and 2014

(In thousands of Brazilian Reais - R$)

Cash flows from financing activities
Loans, borrowings and debentures raised	3,052,947		1,045,486
Payment of loans, borrowings and debentures
Principal	(2,556,574	)	(2,689,939	)
Interest	(915,993	)	(623,726	)
Payment of leases
Principal	(194,088	)	-
Interest	(108,685	)	-
Advances on real estate credits	(66,482	)	-
Derivative financial instruments	225,973		(73,396	)
Share capital paid in preferred shares	-		1,946,736
Dividends paid	(410,533	)	(303,085	)
Treasury shares	(12,186	)	-
Related parties	(3,803	)	-
Proceeds from exercise of share options	-		45,642
Net cash used in financing activities	(989,424	)	(652,282	)
Increase (decrease) in cash and cash equivalents	420,665		(179,327	)
Cash and cash equivalents at beginning of period	1,649,340		1,509,565
Effects of exchange rate changes on cash held	56,803		381
Cash and cash equivalents at ended of period	2,126,808		1,330,619
Supplemental cash flow information
Income taxes paid	81,067		111,325
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 nine month periods ended September 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.

On September 30, 2015, the Company had a negative consolidated working capital of R$ 255,053. Management has been working on actions which will enable the Company to present a balanced structure of debt in order to fully meet its business plan in our logistic business.

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.

13 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

These consolidated interim financial statements were authorized for issue by the Board of Directors on November 10, 2015.

2.2 Basis of consolidation

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

	Ownership percentage
	September 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.

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 nine month periods ended September 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

15 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

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.

(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	385,367
Inventories	84,326
Other credits	1,617,232
Property, plant and equipment	7,225,047
Intangible assets	7,500,080
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	(553,094	)
Deferred tax liabilities	(1,125,795	)
Other liabilities	(1,563,425	)
Consolidated net assets	2,978,272
Non-controlling interests	(240,900	)
Total identifiable net assets acquired	2,737,372

16 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

(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$ 385,367 is net of an allowance of R$ 51,495.

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$ 2,277,133 and R$ 21,021, 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$ 9,922,401 and a net profit of R$ 22,629.

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;

17 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

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;

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 nine month periods ended September 30, 2015 and 2014

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

	July 1, 2015 to September 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		2,637,476			15,638,868			1,743,099			31,886			484,226			1,357,726			26			(18,276,344	)		(11,635	)		3,605,328			2,259,238			1,357,726
Domestic market		1,098,525			15,638,868			1,743,099			31,886			388,613			1,300,020			26			(16,737,393	)		(11,635	)		3,452,009			2,163,625			1,300,020
External market		1,538,951			-			-			-			95,613			57,706			-			(1,538,951	)		-			153,319			95,613			57,706
Gross profit		441,839			753,937			501,674			21,173			117,115			436,311			(66	)		(1,195,776	)		-			1,076,207			639,897			436,311
Selling expenses		(188,350	)		(305,979	)		(156,465	)		-			(74,595	)		(2,556	)		1			494,329			-			(233,615	)		(231,060	)		(2,556	)
General and administrative expenses		(137,341	)		(91,255	)		(78,338	)		(8,030	)		(18,482	)		(96,185	)		(44,013	)		228,596			-			(245,048	)		(143,793	)		(96,185	)
Other income (expense), net		(5,433	)		88,042			(671	)		23			385			11,202			(12,150	)		(82,609	)		-			(1,211	)		(12,413	)		11,202
Financial results		(462,881	)		(94,575	)		889			3,198			(13,555	)		(394,125	)		(126,130	)		557,456			-			(529,723	)		(204,126	)		(394,125	)
Financial expense		(262,380	)		(45,428	)		(58,366	)		(266	)		(1,532	)		(384,307	)		(224,319	)		307,808			4,925			(663,865	)		(268,622	)		(384,307	)
Financial income		181,857			39,412			105,055			3,464			1,993			57,482			35,270			(221,269	)		(4,925	)		198,339			139,290			57,482
Foreign exchange losses, net		(622,213	)		(169,696	)		349,574			-			(17,435	)		(139,033	)		(464,291	)		791,909			-			(271,185	)		(180,793	)		(139,033	)
Derivatives		239,855			81,137			(395,374	)		-			3,419			71,733			527,210			(320,992	)		-			206,988			105,999			71,733
Equity in earnings of associates		(14,802	)		3,505			-			-			(2,416	)		4,074			103,852			11,297			(101,017	)		4,493			419			4,074
Equity in earnings of joint ventures		-			-			-			-			-			-			28,767			-			-			28,767			28,767			-
Income tax expense benefit		161,011			(84,041	)		(94,867	)		(3,508	)		(4,484	)		1,260			84,803			(76,970	)		-			(16,796	)		(18,055	)		1,260
Profit (loss) for the period		(205,957	)		269,634			172,222			12,856			3,968			(40,019	)		35,064			(63,677	)		(101,017	)		83,074			59,636			(40,019	)
Other selected data:
Depreciation and amortization		509,827			144,802			120,865			102			20,140			195,333			1,147			(654,629	)		-			337,587			142,254			195,333
EBITDA		605,740			593,052			387,065			13,268			42,147			548,179			77,538			(1,198,792	)		(101,017	)		967,180			424,071			548,179
Additions to PP&E, intangible and biological assets		230,362			208,571			136,639			663			15,222			479,318			6,996			(438,933	)		-			638,838			159,520			479,318
Reconciliation of EBITDA:
Profit (loss) for the period		(205,957	)		269,634			172,222			12,856			3,968			(40,019	)		35,064			(63,677	)		(101,017	)		83,074			59,636			(40,019	)
Income tax and social contribution		(161,011	)		84,041			94,867			3,508			4,484			(1,260	)		(84,803	)		76,970			-			16,796			18,055			(1,260	)
Financial result, net		462,881			94,575			(889	)		(3,198	)		13,555			394,125			126,130			(557,456	)		-			529,723			204,126			394,125
Depreciation and amortization		509,827			144,802			120,865			102			20,140			195,333			1,147			(654,629	)		-			337,587			142,254			195,333
EBITDA		605,740			593,052			387,065			13,268			42,147			548,179			77,538			(1,198,792	)		(101,017	)		967,180			424,071			548,179

19 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

	January 1, 2015 to September 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		7,364,398			44,494,263			4,948,174			80,419			1,288,157			2,783,622			27			(51,858,661	)		(20,705	)		9,079,694			6,316,777			2,783,622
Domestic market		3,054,921			44,494,263			4,948,174			80,419			1,032,784			2,652,552			27			(47,549,184	)		(20,705	)		8,693,251			6,061,404			2,652,552
External market		4,309,477			-			-			-			255,373			131,070			-			(4,309,477	)		-			386,443			255,373			131,070
Gross profit		1,070,155			2,214,742			1,461,154			62,437			318,210			949,860			(66	)		(3,284,897	)		-			2,791,595			1,841,735			949,860
Selling expenses		(425,510	)		(903,002	)		(461,640	)		-			(209,779	)		(2,556	)		(1	)		1,328,512			-			(673,976	)		(671,420	)		(2,556	)
General and administrative expenses		(399,167	)		(288,757	)		(238,794	)		(22,225	)		(52,014	)		(205,338	)		(139,995	)		687,924			-			(658,366	)		(427,269	)		(205,338	)
Other income (expense), net		9,324			231,602			(4,540	)		20,807			758			50,572			(130,212	)		(240,926	)		-			(62,615	)		(113,187	)		50,572
Financial results		(690,226	)		(115,901	)		(131,363	)		6,870			(22,551	)		(737,524	)		(512,484	)		806,127			-			(1,397,052	)		(749,601	)		(737,524	)
Financial expense		(662,354	)		(131,457	)		(255,045	)		(1,015	)		(23,021	)		(749,599	)		(589,003	)		793,811			12,925			(1,604,758	)		(828,134	)		(749,599	)
Financial income		482,055			118,641			184,279			7,885			3,349			111,033			96,486			(600,696	)		(12,925	)		390,107			277,454			111,033
Foreign exchange losses, net		(1,082,392	)		(314,386	)		153,124			-			(11,860	)		(195,308	)		(710,873	)		1,396,778			-			(764,917	)		(641,767	)		(195,308	)
Derivatives		572,465			211,301			(213,721	)		-			8,981			96,350			690,906			(783,766	)		-			582,516			442,846			96,350
Equity in earnings of associates		(32,214	)		10,617			-			-			(9,507	)		4,254			282,124			21,597			(275,356	)		1,515			(2,740	)		4,254
Equity in earnings of joint ventures		-			-			-			-			-			-			276,812			-			-			276,812			276,812			-
Income tax expense benefit		242,477			(346,139	)		(226,842	)		(10,328	)		(13,507	)		(50,146	)		280,718			103,662			-			(20,105	)		30,041			(50,146	)
Profit (loss) for the period		(225,161	)		803,162			397,975			57,561			11,610			9,122			56,896			(578,001	)		(275,356	)		257,808			184,371			9,122
Other selected data:
Depreciation and amortization		1,473,871			431,832			360,017			594			56,988			398,870			3,180			(1,905,703	)		-			819,649			420,779			398,870
EBITDA		1,696,459			1,697,034			1,116,197			61,613			104,656			1,195,662			291,842			(3,393,493	)		(275,356	)		2,494,614			1,324,710			1,195,662
Additions to PP&E, intangible and biological assets		1,459,134			573,423			382,659			1,604			31,904			1,073,650			40,115			(2,032,557	)		-			1,529,932			456,282			1,073,650
Reconciliation of EBITDA:
Profit (loss) for the period		(225,161	)		803,162			397,975			57,561			11,610			9,122			56,896			(578,001	)		(275,356	)		257,808			184,371			9,122
Income tax and social contribution		(242,477	)		346,139			226,842			10,328			13,507			50,146			(280,718	)		(103,662	)		-			20,105			(30,041	)		50,146
Financial result, net		690,226			115,901			131,363			(6,870	)		22,551			737,524			512,484			(806,127	)		-			1,397,052			749,601			737,524
Depreciation and amortization		1,473,871			431,832			360,017			594			56,988			398,870			3,180			(1,905,703	)		-			819,649			420,779			398,870
									��
EBITDA		1,696,459			1,697,034			1,116,197			61,613			104,656			1,195,662			291,842			(3,393,493	)		(275,356	)		2,494,614			1,324,710			1,195,662

20 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

	July 1, 2014 to September 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		2,331,340			14,333,868			1,643,750			27,350			429,850			261,300			-			(16,665,208	)		-			2,362,250			2,100,950			261,300
Domestic market		1,087,302			14,333,868			1,643,750			27,350			354,266			218,047			-			(15,421,170	)		-			2,243,413			2,025,366			218,047
External market		1,244,038			-			-			-			75,584			43,253			-			(1,244,038	)		-			118,837			75,584			43,253
Gross profit		373,908			711,930			494,834			20,420			96,896			80,635			(1	)		(1,085,838	)		-			692,784			612,150			80,635
Selling expenses		(146,015	)		(299,871	)		(165,140	)		-			(64,527	)		-			-			445,886			-			(229,667	)		(229,667	)		-
General and administrative expenses		(137,330	)		(95,504	)		(75,174	)		(8,880	)		(17,687	)		(20,894	)		(33,217	)		232,834			-			(155,852	)		(133,887	)		(20,894	)
Other income (expense), net		23,331			83,828			(5,999	)		18,754			414			1,015			(18,676	)		(107,159	)		-			(4,492	)		(5,509	)		1,015
Financial results		(194,020	)		(86,854	)		(48,122	)		1,600			(7,950	)		(3,061	)		(230,158	)		280,874			-			(287,691	)		(296,752	)		(3,061	)
Financial expense		(128,453	)		(38,708	)		(75,395	)		(215	)		27,393			(9,819	)		(208,442	)		167,161			3,142			(263,336	)		(248,537	)		(9,819	)
Financial income		106,535			23,250			27,222			1,815			1,705			6,468			17,336			(129,785	)		(3,142	)		51,404			44,908			6,468
Foreign exchange losses, net		(266,774	)		(68,122	)		(80,876	)		-			(46,006	)		290			(73,579	)		334,896			-			(200,171	)		(209,636	)		290
Derivatives		94,672			(3,274	)		80,927			-			8,958			-			34,527			(91,398	)		-			124,412			116,513			-
Equity in earnings of associates		(12,872	)		3,887			-			-			(1,498	)		-			131,609			8,985			(133,480	)		(3,369	)		(3,369	)		-
Equity in earnings of joint ventures		-			-			-			-			-			-			79,168			-			-			79,168			79,168			-
Income tax expense benefit		63,139			(121,209	)		(66,295	)		(3,571	)		(1,954	)		(19,371	)		107,051			58,070			-			15,860			35,231			(19,371	)
Profit (loss) for the period		(29,859	)		196,207			134,104			28,323			3,694			38,324			35,776			(166,348	)		(133,480	)		106,741			57,365			38,324
Other selected data:
Depreciation and amortization		529,517			141,936			128,877			243			17,263			25,650			891			(671,453	)		-			172,924			147,274			25,650
EBITDA		630,539			546,206			377,398			30,537			30,861			86,406			159,774			(1,176,745	)		(133,480	)		551,496			466,160			86,406
Additions to PP&E, intangible and biological assets		387,417			195,740			171,684			192			15,627			85,551			24,258			(583,157	)		-			297,312			211,761			85,551
Reconciliation of EBITDA:
Profit (loss) for the period		(29,859	)		196,207			134,104			28,323			3,694			38,324			35,776			(166,348	)		(133,480	)		106,741			57,365			38,324
Income tax and social contribution		(63,139	)		121,209			66,295			3,571			1,954			19,371			(107,051	)		(58,070	)		-			(15,860	)		(35,231	)		19,371
Financial result, net		194,020			86,854			48,122			(1,600	)		7,950			3,061			230,158			(280,874	)		-			287,691			296,752			3,061
Depreciation and amortization		529,517			141,936			128,877			243			17,263			25,650			891			(671,453	)		-			172,924			147,274			25,650
EBITDA		630,539			546,206			377,398			30,537			30,861			86,406			159,774			(1,176,745	)		(133,480	)		551,496			466,160			86,406

21 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

	January 1, 2014 to September 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		6,622,468			41,029,657			4,777,520			126,092			1,202,065			659,715			33			(47,652,125	)		-			6,765,425			6,105,710			659,715
Domestic market		2,884,269			41,029,657			4,777,520			126,092			985,275			553,735			33			(43,913,926	)		-			6,442,655			5,888,920			553,735
External market		3,738,199			-			-			-			216,790			105,980			-			(3,738,199	)		-			322,770			216,790			105,980
Gross profit		1,191,299			2,000,178			1,468,361			70,771			263,965			226,950			34			(3,191,477	)		-			2,030,081			1,803,132			226,950
Selling expenses		(426,930	)		(884,888	)		(473,892	)		-			(186,680	)		-			-			1,311,818			-			(660,572	)		(660,572	)		-
General and administrative expenses		(398,691	)		(296,456	)		(218,339	)		(25,727	)		(51,479	)		(63,632	)		(114,660	)		695,147			-			(473,837	)		(392,089	)		(63,632	)
Other income (expense), net		81,990			262,258			(13,926	)		63,620			586			(464	)		(153,268	)		(344,248	)		-			(103,452	)		(121,577	)		18,125
Financial results		(116,092	)		(78,719	)		(151,875	)		6,891			39,240			(23,110	)		(520,151	)		194,811			-			(649,005	)		(610,163	)		(23,110	)
Financial expense		(370,615	)		(102,013	)		(217,555	)		(779	)		62,603			(52,284	)		(572,023	)		472,628			9,244			(770,794	)		(704,344	)		(52,284	)
Financial income		252,247			69,840			65,707			7,670			3,282			28,602			78,159			(322,087	)		(9,244	)		174,176			143,825			28,602
Foreign exchange losses, net		(136,828	)		(15,108	)		(48,716	)		-			(20,089	)		572			(35,379	)		151,936			-			(103,612	)		(108,077	)		572
Derivatives		139,104			(31,438	)		48,689			-			(6,556	)		-			9,092			(107,666	)		-			51,225			58,433			-
Equity in earnings of associates		(28,803	)		11,219			-			-			(4,837	)		-			648,552			17,584			(646,417	)		(2,702	)		(2,702	)		-
Equity in earnings of joint ventures		-			-			-			-			-			-			464,633			-			-			464,633			464,633			-
Income tax expense benefit		(14,237	)		(327,571	)		(208,270	)		(11,410	)		(9,619	)		(47,048	)		250,463			341,808			-			(25,884	)		21,165			(47,048	)
Profit (loss) for the period		288,536			686,021			402,059			104,145			51,176			92,696			575,603			(974,557	)		(646,417	)		579,262			501,827			111,285
Other selected data:
Depreciation and amortization		1,423,933			403,244			376,708			727			53,611			70,378			2,497			(1,827,177	)		-			503,921			433,543			70,378
EBITDA		1,842,798			1,495,555			1,138,912			109,391			75,166			233,232			847,788			(3,338,353	)		(646,417	)		1,758,072			1,524,368			251,821
Additions to PP&E, intangible and biological assets		1,963,115			602,330			491,750			447			30,545			183,280			50,100			(2,565,445	)		-			756,122			572,842			183,280
Reconciliation of EBITDA:
Profit (loss) for the period		288,536			686,021			402,059			104,145			51,176			92,696			575,603			(974,557	)		(646,417	)		579,262			501,827			111,285
Income tax and social contribution		14,237			327,571			208,270			11,410			9,619			47,048			(250,463	)		(341,808	)		-			25,884			(21,165	)		47,048
Financial result, net		116,092			78,719			151,875			(6,891	)		(39,240	)		23,110			520,151			(194,811	)		-			649,005			610,163			23,110
Depreciation and amortization		1,423,933			403,244			376,708			727			53,611			70,378			2,497			(1,827,177	)		-			503,921			433,543			70,378
EBITDA		1,842,798			1,495,555			1,138,912			109,391			75,166			233,232			847,788			(3,338,353	)		(646,417	)		1,758,072			1,524,368			251,821

22 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

	September 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		3,428,097			220,788			1,476,126			1,179			90,765			240,553			318,185			(3,648,885	)		-			2,126,808			1,864,999			240,553
Investment securities		-			-			-			214,890			-			879,027			-			-			-			1,093,917			214,890			879,027
Trade receivables		466,101			1,486,432			592,888			23,853			245,149			185,610			241			(1,952,533	)		-			1,047,741			862,131			185,610
Derivative financial instruments		1,514,030			128,365			603,405			-			26,973			80,997			1,955,978			(1,642,395	)		-			2,667,353			2,547,253			80,997
Inventories		2,293,958			1,359,823			131,953			-			257,975			190,880			2,214			(3,653,781	)		-			583,022			392,141			190,880
Other current assets		1,139,953			795,769			153,635			298,077			45,061			368,551			512,632			(1,935,722	)		(55,907	)		1,322,049			912,555			368,551
Other non-current assets		3,468,753			1,199,922			293,565			20,800			(144,410	)		2,781,691			1,615,156			(4,668,675	)		(9,887	)		4,556,915			1,775,219			2,781,691
Investment in associates		216,019			262,304			-			-			10,729			45,290			11,837,929			(478,323	)		(11,702,151	)		191,797			146,506			45,290
Investment in joint ventures		-			-			-			-			-			-			8,279,197			-			-			8,279,197			8,279,197			-
Biological assets		1,903,554			-			-			-			-			-			-			(1,903,554	)		-			-			-			-
Investment property		-			-			-			2,385,932			-			-			-			-			-			2,385,932			2,385,932			-
Property, plant and equipment		9,792,568			2,411,818			-			1,744			227,199			9,122,433			154,711			(12,204,386	)		-			9,506,087			383,654			9,122,433
Intangible assets and goodwill		3,275,569			4,344,146			8,611,843			1,749			793,495			7,784,835			7,176			(7,619,715	)		-			17,199,098			9,414,262			7,784,835
Loans, borrowings and debenture		(12,018,295	)		(2,012,818	)		(3,253,671	)		-			(459,945	)		(8,311,702	)		(5,679,270	)		14,031,113			-			(17,704,588	)		(8,999,827	)		(8,311,702	)
Trade payables		(990,963	)		(701,011	)		(1,347,481	)		(669	)		(192,231	)		(745,949	)		(4,958	)		1,691,974			-			(2,291,288	)		(1,545,339	)		(745,949	)
Derivative financial instruments		(447,966	)		(90,917	)		-			-			(949	)		(12,260	)		(756,008	)		538,883			-			(769,217	)		(756,957	)		(12,260	)
Employee benefits payable		(304,474	)		(68,869	)		(50,980	)		(6,302	)		(15,811	)		(170,841	)		(21,662	)		373,343			-			(265,596	)		(94,756	)		(170,841	)
Other current liabilities		(770,582	)		(1,094,392	)		(117,516	)		(20,432	)		(125,596	)		(1,102,726	)		(207,730	)		1,864,974			54,104			(1,519,896	)		(430,819	)		(1,102,726	)
Other non-current liabilities		(1,349,470	)		(3,074,107	)		(1,132,629	)		(100,202	)		(145,603	)		(7,161,507	)		(3,841,499	)		4,423,577			11,888			(12,369,552	)		(5,208,047	)		(7,161,507	)
Total assets (net of liabilities) allocated by segment		11,616,852			5,167,253			5,961,138			2,820,619			612,801			4,174,882			14,172,292			(16,784,105	)		(11,701,953	)		16,039,779			12,142,994			4,174,882
Total assets		27,498,602			12,209,367			11,863,415			2,948,224			1,552,936			21,679,867			24,683,419			(39,707,969	)		(11,767,945	)		50,959,916			29,178,739			21,679,867

23 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 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 nine month periods ended September 30, 2015 and 2014

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

Net sales by segment:

	July 1, 2015 to September 30, 2015			January 1, 2015 to September 30, 2015			July 1, 2014 to September 30, 2014			January 1, 2014 to September 30, 2014
Raízen Energia
Ethanol		1,128,511			3,695,498			951,990			3,152,586
Sugar		1,200,640			3,073,937			1,075,130			2,883,405
Cogeneration		203,002			387,740			230,582			432,834
Other		105,323			207,223			73,638			153,643
		2,637,476			7,364,398			2,331,340			6,622,468
Raízen Combustíveis
Fuels		15,638,868			44,494,263			14,333,868			41,029,657
		15,638,868			44,494,263			14,333,868			41,029,657
COMGÁS
Industrial		1,098,456			3,175,412			1,039,188			3,100,765
Residential		202,405			504,609			193,576			475,842
Construction revenue		109,959			303,683			126,237			361,341
Thermo generation		129,043			379,188			95,438			286,867
Cogeneration		64,982			203,082			59,124			187,132
Commercial		77,706			211,107			68,257			187,728
Automotive		50,262			145,314			51,290			148,044
Other		10,286			25,779			10,640			29,801
		1,743,099			4,948,174			1,643,750			4,777,520
Radar
Property sales		11,829			20,145			11,080			74,340
Land lease		16,730			50,235			14,427			46,235
Other		3,327			10,039			1,843			5,517
		31,886			80,419			27,350			126,092
Lubricants
Lubricants		403,214			1,105,607			342,973			997,460
Basic oil		76,870			171,028			71,471			181,662
Other		4,142			11,522			15,406			22,943
		484,226			1,288,157			429,850			1,202,065
Cosan's other business		27			27			-			33
IFRS 11 - Deconsolidated of
adjustments/eliminations joint
ventures and eliminations		(18,287,980	)		(51,879,366	)		(16,665,208	)		(47,652,125	)

25 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

Cosan Energia	2,247,602	6,296,072	2,100,950	6,105,710
Cosan Log
Logistics	1,061,011	2,384,783	190,659	483,398
Port handling	77,799	165,318	65,159	158,467
Other	218,916	233,520	5,482	17,850
	1,357,726	2,783,621	261,300	659,715
Total consolidated	3,605,328	9,079,693	2,362,250	6,765,425

5 Cash and cash equivalents

	September 30, 2015		December 31, 2014
Brazilian Reais
Cash and bank deposits		49,382		57,703
Short-term investments		1,945,035		1,496,620
		1,994,417		1,554,323
U.S. Dollars and Pound Sterling
Cash and bank deposits		132,391		95,017
		132,391		95,017
		2,126,808		1,649,340

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

	September 30, 2015		December 31, 2014
Exclusive funds
Repurchase agreements(i)		1,001,536		423,535
Bank certificate of deposits - CDB(ii)		239,209		87,646
Other		1,062		-
		1,241,807		511,181
Bank investments
Repurchase agreements(i)		517,774		222,570
Bank certificate of deposits - CDB(ii)		183,005		762,869
Other		2,449		-
		703,228		985,439
		1,945,035		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.

26 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

(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.

6 Trade receivables

	September 30, 2015			December 31, 2014
Domestic - Brazilian Reais		1,149,810			1,369,013
Export - Foreign currency		28,556			25,323
Allowance for doubtful accounts		(71,044	)		(48,235	)
		1,107,322			1,346,101
Current		1,047,741			865,109
Non-current		59,581			480,992

7 Other trade receivables

	September 30, 2015		December 31, 2014
Receivable from ExxonMobil(i)		-		332,405
Receivable from sale of
discontinued operations(ii)		76,445		107,775
		76,445		440,180
Current		76,445		69,683
Non-current		-		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”).

On September 1, 2015, CLE was notified by the Brazilian Federal Revenue Service on the exclusion of tax installments due to the previously made deposits. Thus, the accounts receivable was offset to the balance in the same amount of taxes payable, related to the collection of tax debts included in the special program installment of federal taxes ("REFIS IV");

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

27 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 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:

	September 30, 2015		December 31, 2014
Current assets
Commercial operations
Raízen Energia S.A.		38,818		23,229
Raízen Combustíveis S.A.		4,530		2,576
Aguassanta Participações S.A.		6,344		6,340
Other		4,273		556
		53,965		32,701
Corporate operation / Agreements
Raízen Energia S.A.		13,028		3,388
		13,028		3,388
Financial operations
Raízen Combustíveis S.A.		1,165		1,319
Rezende Barbosa Group		-		949
		1,165		2,268
		68,158		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		17		4
		85,012		85,000
Corporate operation
Novvi Limited Liability Company		16,023		7,417
Tellus Brasil Participações Ltda.		10,562		-
Other		183		-
		26,768		7,417
		201,543		212,527
Total		269,701		250,884

28 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

Current liabilities
Commercial operations
Raízen Energia S.A.	61,603	25,926
Raízen Combustíveis S.A.	66,742	1,283
Shell Brazil Holding B.V.	-	3,820
Other	107	96
	128,452	31,125
Corporate operations / Agreements
Raízen Energia S.A.	66,294	94,892
Raízen Combustíveis S.A.	7,810	11,402
	74,104	106,294
Financial operations
Other	-	22
	-	22
Total	202,556	137,441

b) Related party transactions:

	July 1, 2015 to September 30, 2015			January 1, 2015 to September 30, 2015			July 1, 2014 to September 30, 2014			January 1, 2014 to September 30, 2014
Sales of goods and services
Raízen Energia S.A.		109,450			247,787			77,617			211,478
Raízen Combustíveis S.A.		59,294			94,151			-			-
Other		328			455			315			1,387
		169,072			342,393			77,932			212,865
Purchase of goods / Inputs
Raízen Energia S.A.		(1,563	)		(1,633	)		(61	)		(66	)
Raízen Combustíveis S.A.		(121	)		(1,885	)		(11	)		(730	)
		(1,684	)		(3,518	)		(72	)		(796	)
Land lease
Raízen Energia S.A.		14,352			43,641			14,300			39,950
		14,352			43,641			14,300			39,950
Shared income (expense)
Aguassanta Participações S.A.		114			331			115			339
Raízen Energia S.A.		(11,637	)		(32,979	)		(2,098	)		(8,990	)
		(11,523	)		(32,648	)		(1,983	)		(8,651	)

29 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

Financial result
Raízen Energia S.A.	680		1,910		679		1,902
Rezende Barbosa Group	-		10		85		378
Aldwych Temple
Venture Capital Ltd.	(102	)	(210	)	(66	)	(196	)
Other	(59	)	(155	)	136		393
	519		1,555		834		2,477
Total	170,736		351,423		91,011		245,845

c) Officers’ and directors’ compensation

	July 1, 2015 to September 30, 2015		January 1, 2015 to September 30, 2015		July 1, 2014 to September 30, 2014		January 1, 2014 to September 30, 2014
Regular compensation		7,435		28,305		6,774		21,658
Stock option expense		2,930		8,789		2,564		7,690
Bonuses and other
variable compensation		83		33,143		-		24,470
		10,448		70,237		9,338		53,818

30 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 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 September 30, 2014		3,706			(4,997	)		-			474			(1,885	)		(2,702	)
At December 31, 2014		94,417			14,522			13,063			6,512			2,163			130,677
Equity in earnings (losses) of associates		8,264			(9,497	)		588			(1,526	)		3,686			1,515
Other comprehensive income (losses)		(429	)		4,034			-			2,767			-			6,372
Business combination		-			-			-			-			41,285			41,285
Capital increase		(5,333	)		-			17,402			-			5			12,074
Other		(508	)		-			-			560			(178	)		(126	)
At September 30, 2015		96,411			9,059			31,053			8,313			46,961			191,797

31 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 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			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			124,009,308			405,856,814			299,015,898			2,040,816			21,148,989			830,690,258			-
Shares held by non-controlling shareholders		153,511,030			47,950,970			152,153,491			220,507,722			1,000,000			17,147,822			290,710,861			-
Non-controlling interest		37.49	%		38.67	%		36.73	%		73.74	%		49.00	%		81.08	%		35.00	%		-
Equity in earnings (losses) at September 30, 2014		141,558			158,742			-			23,147			106			21,530			39,244			(5,163	)		379,164
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)		(2,842	)		154,500			2,973			(4,331	)		(624	)		(9,204	)		46,656			-			187,128
Other comprehensive income		(39,346	)		-			365			2,736			-			3,578			214			-			(32,453	)
Dividends		(104,275	)		(121,511	)		-			(71,711	)		-			-			-			-			(297,497	)
Business combinations		-			-			70,911			2,758,586			-			-			-			-			2,829,497
Other		2,849			2,430			(15,198	)		(18,879	)		-			-			-			-			(28,798	)
At September 30, 2015		3,509,438			2,146,997			58,945			2,990,037			36,442			1,674,986			384,613			(498,832	)		10,302,626

c) Information of the subsidiaries

On September 30, 2015, the subsidiary COMGÁS has a regulatory unrecognized accounts receivable in the amount of R$ 210,689 (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$ 31,965 which updated by the Selic rate was R$ 20,425.

32 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 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 September 30, 2014		312,387			152,246			464,633
At December 31, 2014		3,218,466			5,186,037			8,404,503
Equity in earnings of joint ventures		388,396			(111,584	)		276,812
Other comprehensive income		-			(40,871	)		(40,871	)
Dividends		(361,247	)		-			(361,247	)
At September 30, 2015		3,245,615			5,033,582			8,279,197

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.
	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
Cash flows
Operating activities		2,780,323			1,819,761			1,584,184			501,581
Investing activities		(1,423,512	)		(1,942,062	)		(426,622	)		123,902
Financing activities		(528,612	)		623,565			(1,110,244	)		(755,488	)
Increase (decrease) in   cash and cash equivalents		828,199			501,264			47,318			(130,005	)
Other comprehensive income		(306,906	)		155,269			803,162			686,172

33 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

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(i)		(273,709	)		282,687			8,978
Disposals(ii)		(7,934	)		(16,046	)		(23,980	)
At September 30, 2015		2,385,932			289,295			2,675,227

(i) Refers to property, plant and equipment transfers for investment properties.

(ii) Lands, buildings and improvements reclassified for investment property due to commercial disagreements.

Investment properties include farms located in the Southeast, Midwest and Northeast regions of Brazil, which are leased to third parties and jointly controlled entities. The leases have an average term of 18 years for the cultivation of sugarcane and 10 years for beans.

34 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 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		514,856			450,089			519,993			-			255,643			37,286			1,777,867
Additions		23,896			7,652			644,877			315,355			218,315			5,783			1,215,878
Disposals		-			(2,007	)		(1,473	)		(4,076	)		-			(28,888	)		(36,444	)
Transfers		23,006			65,931			(1,054	)		(60,874	)		(36,407	)		9,420			22
Business combinations		252,487			82,664			2,946,849			3,409,109			57,085			476,853			7,225,047
At September 30, 2015		814,245			604,329			4,109,192			3,659,514			494,636			500,454			10,182,370
Depreciation
At December 31, 2014		(103,616	)		(165,906	)		(55,688	)		-			-			(16,767	)		(341,977	)
Additions		(20,257	)		(42,310	)		(142,543	)		(93,102	)		-			(30,411	)		(328,623	)
Disposals		-			1,306			781			280			-			855			3,222
Transfers		7,430			277			(5,836	)		(10,567	)		-			(209	)		(8,905	)
At September 30, 2015		(116,443	)		(206,633	)		(203,286	)		(103,389	)		-			(46,532	)		(676,283	)
At December 31, 2014		411,240			284,183			464,305			-			255,643			20,519			1,435,890
At September 30, 2015		697,802			397,696			3,905,906			3,556,125			494,636			453,922			9,506,087

Capitalization of borrowing costs

Capitalized borrowing costs for the nine month period ended September 30, 2015 amounted to R$ 7,031 (R$ 4,837 for the nine month period ended September 30, 2014). The weighted average interest rate used to capitalize interest on the balance of construction in progress, was 6.72% p.a. for the nine month period ended September 30, 2015 (8.49% p.a. for the nine month period ended September 30, 2014).

35 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 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			865,341			252,474			862,324			227,035			11,701,140
Additions		-		310,278			-			-			62,970			20,098			393,346
Disposals		-		(8,225	)		(495,116	)		-			(5,949	)		-			(509,290	)
Transfers(i)		-		131			(392	)		-			14			11,610			11,363
Business combination		-		7,420,367			-			-			-			79,713			7,500,080
At September 30, 2015		703,956		16,512,561			369,833			252,474			919,359			338,456			19,096,639
Depreciation
At December 31, 2014		-		(636,730	)		(108,019	)		(136,962	)		(425,282	)		(107,774	)		(1,414,767	)
Additions		-		(302,344	)		(37,012	)		(17,120	)		(116,674	)		(33,687	)		(506,837	)
Disposals		-		5,541			15,646			-			2,861			-			24,048
Transfers(i)		-		-			-			-			-			14			14
At September 30, 2015		-		(933,533	)		(129,385	)		(154,082	)		(539,095	)		(141,447	)		(1,897,542	)
At December 31, 2014		703,956		8,153,280			757,322			115,512			437,042			119,261			10,286,373
At September 30, 2015		703,956		15,579,028			240,448			98,392			380,264			197,009			17,199,097

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

36 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

Capitalization of borrowing costs

Capitalized borrowing costs for the nine month period ended September 30, 2015, amounted to R$ 14,766 (R$ 15,787 for September 30, 2014). The weighted average interest rate used to capitalize borrowing costs on the balance of construction in progress, was 11.26% p.a. for the nine month period ended September 30, 2015 (9.04% p.a. for September 30, 2014).

Intangible assets  (excluding goodwill)	Annual rate of amortization - %	September 30, 2015		December 31, 2014
Gas distribution concession - COMGÁS(i)	Concession term		8,217,444		8,153,280
Concession rights - Rumo(ii)	Concession term		7,361,584		-
			15,579,028		8,153,280
Improvements to public rail concessions(iii)	Concession term		-		506,872
Operating license for port terminal(iv)	4.00		243,281		250,450
			243,281		757,322
Trademarks
Mobil	10.00		74,188		91,308
Comma	-		24,204		24,204
			98,392		115,512
Relationships with customers
COMGÁS	20.00		327,315		375,119
Lubricants	6.00		52,949		61,923
			380,264		437,042
Other
Software licenses	20.00		102,894		83,889
Other	15.00		91,282		35,372
			194,176		119,261
Total			16,495,141		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

37 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

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

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 nine month period ended September 30, 2015, no impairment indicators were identified that would trigger the need for an impairment test.

14 Loans, borrowings and debentures

	Interest
Description(i)	Index(ii)	Annual interest(iii)			September 30, 2015		December 31, 2014		Maturity
Loan and borrowings
BNDES	Selic		16.20	%		305,816		274,000		Oct-2020
	TJ462		9.34	%		849,295		834,565		Oct-2020
	TJLP		9.28	%		202,656		288,209		Oct-2018
EIB	US$ + LIBOR		2.12	%		867,125		691,463		Sep-2021
FINAME	URTJLP		8.47	%		433,112		457,570		May-2022
	Fixed		4.27	%		843,967		307,230		Feb-2025
FINEM	Fixed		4.02	%		4,717		3,420		Jan-2024
	IPCA		17.95	%		3,965		3,483		Nov-2021
	URTJLP		8.25	%		2,404,349		13,231		Aug-2029
	Selic		15.85	%		5,984		-		Sep-2020
	UMBNDES		10.16	%		1,189		-		Mar-2022
FINEP	Fixed		5.00	%		144,088		165,032		Nov-2020
Foreign loans	LIBOR Sterling		3.93	%		328,285		224,047		Dec-2019
FCO	Fixed		4.12	%		3,010		-		Jan-2024
FRN	US$		2.63	%		200,439		-		Jan-2017
NCE	US$		3.40	%		127,800		-		Jul-2016
	109% of CDI		15.40	%		317,615		-		Oct-2018
	112% of CDI		15.83	%		418,973		-		Sep-2019
Perpetual Notes	US$		8.25	%		2,011,523		1,344,760		-
Resolution 4131	US$		2.73	%		300,538		29,338		Jul-2017
	US$ + LIBOR		1.67	%		469,703		266,006		Nov-2015
	US$ + LIBOR		2.40	%		440,613		466,494		Mar-2018
Senior Notes Due 2018	Fixed		9.50	%		855,433		874,494		Mar-2018

38 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

Senior Notes Due 2023	US$	5.00	%	1,889,802	1,352,796	Mar-2023
Trade banks	Fixed	20.98	%	4,860	-	Nov-2016
	100% of CDI	14.13	%	1,450	-	Dec-2015
	CDI + 3.50% p.a.	18.12	%	196,247	-	Sep-2016
	CDI + 2.88% p.a.	17.42	%	108,464	-	Dec-2015
Working capital	CDI + 1.43% p.a.	15.80	%	83,122	85,628	Sep-2016
	CDI + 1.20% p.a.	15.50	%	112,195	101,515	Oct-2017
	US$ + LIBOR	4.45	%	197,741	133,185	Sep-2016
Other		-		47,144	7,559	-
				14,181,220	7,924,025
Debentures
Convertible debentures	URTJLP	8.00	%	2,539	-	Jun-2016
Non-convertible debentures	% of net revenue	-		27,488	-	-
	Fixed	10.10	%	164,909	-	Oct-2020
	Fixed rate + IPCA	15.26	%	460,385	447,386	Sep-2020
	108% of CDI	15.26	%	506,980	-	Jul-2018
	CDI + 1.3% p.a.	15.61	%	801,750	-	Oct-2017
	CDI + 2.05% p.a.	16.47	%	1,431,536	-	Apr-2018
	CDI	15.16	%	127,781	131,229	Sep-2019
				3,523,368	578,615
Total				17,704,588	8,502,640
Current				2,840,406	1,056,353
Non-current				14,864,182	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 September 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.

39 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

Changes in loans, borrowings and debentures:

At December 31, 2014	8,502,640
Acquisition	3,052,947
Monetary and exchange variations	3,201,252
Payment	(3,508,419	)
Business combination	6,639,223
Other	(183,055	)
At September 30, 2015	17,704,588

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 a quarterly basis, at the end of each period.

On December 31, 2014, ALL failed to meet certain covenants for which waivers were later obtained from creditors releasing ALL from early call of the debt.

Except for BNDES, whose new net debt indicators (EBITDA and ICD) are yet to be set, all other creditors have agreed to a ratio of up to 5.5x net debt / EBITDA. If the negotiations with BNDES require a lower leverage ratio, such ratio will be extended to all other creditors with equivalent covenants conditions. On September 30, 2015, quarterly financial covenants were met within the new established standards.

Debentures have covenants in similar conditions to those described and also had their covenant net debt / EBITDA ratio adjusted to 5.5x.

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		767,975			1,323,001			314,772			2,405,748
Interests		(230,927	)		(294,637	)		(56,539	)		(582,103	)
Present value of
minimum lease payments		537,048			1,028,364			258,233			1,823,645
Current											537,048
Non-current											1,286,597

40 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

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

	September 30, 2015
	COMGÁS			Cosan Log
Future minimum   lease payments
Less than one year		4,072			19,294
Between one and five years		3,405			22,584
More than five years		-			14,768
		7,477			56,646
Amounts recognized in   profit or loss		(3,444	)		(10,884	)

COMGÁS rents properties through 12 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.

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 September 30, 2015
Leases		39,125		1,986,971		2,026,096
Concessions		50,218		57,627		107,845
		89,343		2,044,598		2,133,941
Current						19,545
Non-current						2,114,396

41 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

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, wondering about 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.

ALL Malha Oeste is claiming the reestablishment of the economic-financial balance, lost due to the cancellation of transportation agreements at the moment of privatization setting change in the regulatory environment and conditions set forth in the Notice of 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 saved values by bank guarantee and, in May 2008 the Company redeemed the values. In December 2014 the court recognized the occurrence of economic and financial imbalance of contracts. There remains 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 September 30, 2015 concerning the above claims total:

ALL Malha Paulista	116,038
ALL Malha Oeste	17,690
	133,728

42 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

17 Trade payables

	September 30, 2015			December 31, 2014
Natural gas suppliers		1,551,302			1,043,997
Judicial deposits(i)		(294,976	)		(294,976	)
Materials and service suppliers		1,036,353			363,438
		2,292,679			1,112,459
Current		2,291,288			1,112,459
Non-current		1,391			-

(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.

On 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 6, 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 September 2015 began to be secured by a bank guarantees. The guaranteed value in the judicial deposit is R$ 294,976 and the guaranteed value through surety is of R$ 528,028.

18 Other taxes payable

	September 30, 2015		December 31, 2014
Tax Amnesty and
Refinancing Program - REFIS(i)		217,793		524,703
ICMS - State VAT		83,188		67,777
COFINS - Revenue tax		14,305		18,702
INSS - Social security		5,275		2,739
PIS - Revenue tax		2,949		2,511
Other		31,385		25,874
		354,895		642,306
Current		163,984		307,741
Non-current		190,911		334,565

(i) The portion of R$ 350,301 related to tax debits included in the Brazilian Government’s tax amnesty and refinancing program (“Refis IV”), was offset with the respective recovery balance, as mentioned in Note 7.

43 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 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

	July 1, 2015 to September 30, 2015			January 1, 2015 to September 30, 2015			July 1, 2014 to September 30, 2014			January 1, 2014 to September 30, 2014
Profit before taxes		99,870			277,913			90,881			605,146
Income tax and social
contribution at nominal rate (34%)		(33,956	)		(94,490	)		(30,900	)		(205,750	)
Adjustments to reconcile   nominal to effective tax rate
Equity method investments      (non-taxable income)		11,308			94,631			25,772			157,057
Differences in tax rates on entities under     Brazilian presumed profits tax regime		1,849			12,993			-			28,652
Tax profit of the activity (operating income)		11,850			20,946			-			-
Non-deductible expenses     (donations, gifts, etc.)		(4,909	)		(18,627	)		(1,335	)		(4,882	)
Amortized goodwill		464			927			-			-
Judicial demand related to income tax		-			-			-			13,839
Interest on capital (net received)		(12,818	)		(18,938	)		(1,085	)		(6,970	)
Stock options		(996	)		(2,988	)		(871	)		(2,614	)
Differences in tax rates on     earnings / losses of overseas companies		36,298			39,137			8,046			(3,896	)
Tax losses not recorded		(24,895	)		(52,317	)		12,899			(2,490	)
Other		(991	)		(1,379	)		3,334			1,170
Income tax and social contribution   benefit (expense) - current and deferred		(16,796	)		(20,105	)		15,860			(25,884	)
Effective rate - %		16.82			7.23			-17.45			4.28

44 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

b) Deferred income tax assets and liabilities

	September 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		6,372,440			1,593,110			-			1,593,110			319,168
Social contribution tax loss carry forwards		6,418,080			-			577,627			577,627			116,578
Temporary differences
Foreign currency losses		3,014,087			753,522			271,268			1,024,790			303,488
Tax deductible goodwill		579,054			144,764			52,115			196,879			298,102
Provision for judicial demands		865,874			216,468			77,929			294,397			183,714
Allowance for doubtful accounts		233,541			58,385			21,019			79,404			53,385
Profit sharing		84,935			21,234			7,644			28,878			11,345
Expenses tax deferred		165,251			41,313			14,873			56,186			-
(-) Credits without estimated realization		(4,187,177	)		(1,046,794	)		(376,846	)		(1,423,640	)		-
Unrealized gains on derivatives instruments		(1,622,633	)		(405,658	)		(146,037	)		(551,695	)		(126,351	)
Unrealized gain on sale of investments		(35,653	)		(8,913	)		(3,209	)		(12,122	)		(18,772	)
Impairment		1,003,927			250,982			90,353			341,335			-
Other temporary differences		807,208			201,802			72,649			274,451			(33,390	)
Property, plant and equipment(ii)		(462,042	)		(115,510	)		(41,584	)		(157,094	)		(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		(1,778,250	)		(35,565	)		(19,205	)		(54,770	)		(74,801	)
Assets held for sale		(242,596	)		(4,852	)		(2,620	)		(7,472	)		(773	)
Concession contract		49,405			12,351			4,446			16,797			15,057
Regulatory asset		242,654			60,664			21,839			82,503			82,503
Gains or losses on actuarial liabilities(i)		270,517			67,629			24,347			91,976			87,594
Business combination - Property,     plant and equipment		802,656			200,664			72,239			272,903			(27,156	)
Business combination - Intangible assets		(11,349,185	)		(2,837,296	)		(1,021,427	)		(3,858,723	)		(1,390,752	)
Business combination - Other     fair value adjustments		(188,444	)		(47,112	)		(16,960	)		(64,072	)		(33,951	)
Other		(565,840	)		(141,460	)		(50,927	)		(192,387	)		(113,393	)
Total net liability					(1,854,858	)		(670,918	)		(2,525,776	)		(1,525,110	)
Deferred income tax - Assets											1,677,495			214,164
Deferred income tax - Liabilities											(4,203,271	)		(1,739,274	)
Total net deferred taxes											(2,525,776	)		(1,525,110	)

45 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

(i) The credit related to the provision of post-employment benefit plan of the subsidiary COMGÁS, has an estimated period of financial achievement 25-30 years and tax credits on the temporary differences have estimated three to five years.

(ii) Deferred income tax and social contribution of the subsidiary COMGÁS, arising from the review of the calculations of previous years, with the application of life rate provided for in the income tax legislation. The balance will be amortized over the remaining term of the concession pursuant to Article 69 of Law 12,973/14.

c) Changes in deferred income taxes, net:

At December 31, 2014 – Net deferred tax liability	(1,525,110	)
Recorded through income	129,767
Recorded through other comprehensive income	2,875
Business combinations	(1,125,795	)
Other	(7,513	)
At September 30, 2015 - Net deferred tax liability	(2,525,776	)

20 Provision for legal proceedings

	Provision for legal proceedings				Judicial deposits
	September 30, 2015		December 31, 2014		September 30, 2015		December 31, 2014
Tax		434,581		343,038		370,885		319,444
Civil		272,123		139,268		180,844		48,445
Labor		546,851		175,473		199,493		50,496
		1,253,555		657,779		751,222		418,385

Changes in provision for legal proceedings:

	Tax			Civil			Labor			Total
At December 31, 2014	343,038			139,268			175,473			657,779
Accruals	25,581			15,995			36,669			78,245
Write-off / Reversals		(21,385	)		(19,726	)		(65,022	)		(106,133	)
Transfers		1,703			(6,850	)		-			(5,147	)
Business combinations		66,460			107,713			378,921			553,094
Indexation and interest charges		19,184			35,723			20,810			75,717
At September 30, 2015		434,581			272,123			546,851			1,253,555

46 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

Judicial claims deemed to be probable losses, fully accrued

a) Tax claims

	September 30, 2015		December 31, 2014
Compensation with FINSOCIAL		254,230		241,739
INSS - Social security		56,471		47,449
State VAT - ICMS credits		76,217		24,231
PIS and COFINS		3,830		-
Other		43,833		29,619
		434,581		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 party 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.

Judicial claims deemed as possible losses, and therefore not accrued

a) Tax claims

	September 30, 2015		December 31, 2014
ICMS - State VAT		1,793,264		1,572,934
Foreign financial operation(i)		893,551		-
PIS and COFINS - Revenue taxes		834,526		680,065
Federal income taxes		816,658		751,495
IRRF - Withholding tax		775,381		656,087
INSS - Social security and other		568,917		530,223
IPI - Excise tax credit - NT		479,941		441,707
Goodwill ALL S.A.(ii)		437,322		-
Penalties related to tax positions		251,766		-
Compensation with IPI - IN 67/98		122,284		118,865
MP 470 - Tax installments(iii)		99,224		-
Intermodal		75,441		-
Stock option		56,399		-
Other		1,054,445		648,850
		8,259,119		5,400,226

47 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

(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; and b) the incidence of PIS and COFINS on hedging transactions was rejected by decree dated 2005.

(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; and b) non-taxation of supposed capital gain on disposal of equity interest in a company of the same group.

(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.

b) Civil and labor

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

	September 30, 2015		December 31, 2014
Civil		2,173,270		1,118,151
Labor		873,785		391,992
		3,047,055		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 years 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.

48 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

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 noncurrent financial liability in Cosan´s and Cosan S.A.´s statement of financial position and the statement of profit or loss reflects the CDI equivalent dividends classified as financial expenses.

22 Stockholders’ Equity

a) Share capital

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

Shareholders - Common shares	Class A and / or BDRs		%		Class B1 shares		%
Queluz Holdings Limited		5,241,111		3.01		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		-		-
Skagen AS		16,120,419		9.25		-		-
MSOR Participações S.A.		1,811,250		1.04		-		-
Other		124,018,596		71.13		-		-
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 September 30, 2015 and December 31, 2014 with a market value of US$ 2.89 per share at September 30, 2015 (US$ 7.75 per share at December 31, 2014).

49 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

c) Other comprehensive (loss) income

	December 31, 2014			Comprehensive (loss) income			September 30, 2015
Foreign currency translation differences		(298,446	)		(193,689	)		(492,135	)
Loss on cash flow hedge   in joint ventures and subsidiaries		(10,574	)		(40,790	)		(51,364	)
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	)		4,939			3,472
Total		(72,648	)		(229,540	)		(302,188	)
Attributable to:
Owners of the Company		(165,618	)		(197,035	)		(362,653	)
Non-controlling interests		92,970			(32,505	)		60,465

	December 31, 2013			Comprehensive (loss) income			September 30, 2014
Foreign currency translation differences		(223,038	)		(30,233	)		(253,271	)
Gain (loss) on cash flow hedge   in joint ventures and subsidiaries		43,384			(54,921	)		(11,537	)
Revaluation of investment properties   reclassified from property, plant and equipment		190,735			-			190,735
Actuarial gain on defined benefit plan		16,092			1,064			17,156
Changes in fair value of   available for sale securities, net		(7,480	)		1,722			(5,758	)
Total		19,693			(82,368	)		(62,675	)
Attributable to:
Owners of the Company		(84,887	)		(24,959	)		(109,846	)
Non-controlling interests		104,580			(57,409	)		47,171

50 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

23 Earnings per share

	July 1, 2015 to September 30, 2015			January 1, 2015 to September 30, 2015			July 1, 2014 to September 30, 2014			January 1, 2014 to September 30, 2014
Numerator
Profit from continuing operations     attributable to owners of the Parent
Basic		48,843			65,505			20,542			200,098
Brado's dilutive options		(436	)		-			-			-
ALL's debentures		(3	)		(131	)		-			-
Dilutive effect of subsidiary's         stock option plan		(6	)		12			(9,285	)		(59,492	)
Dilutive effect of put option		(15,601	)		(15,601	)		(15,601	)		(15,601	)
Diluted		32,797			49,785			(4,344	)		125,005
Loss from discontinued operations     attributable to owners of the Parent
Basic		(436	)		(1,031	)		-			-
Dilutive effect of subsidiary's         stock option plan		-			-			-			-
Diluted		(436	)		(1,031	)		-			-
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$ 0.18			R$ 0.25			R$ 0.08			R$ 0.76
Discontinued operations		R$ 0.00			R$ 0.00			R$ 0.00			R$ 0.00
		R$ 0.18			R$ 0.25			R$ 0.08			R$ 0.76
Diluted earnings (loss) per share
Continuing operations		R$ 0.12			R$ 0.19			(R$ 0.02)			R$ 0.47
Discontinued operations		R$ 0.00			R$ 0.00			R$ 0.00			R$ 0.00
		R$ 0.12			R$ 0.19			(R$ 0.02)			R$ 0.47

ALL Malha Norte issued, for BNDES Participações S.A., convertible debentures remunerated at market interest rates, amounting to R$ 2,539 at September 30, 2015, whose maturity date is June 2016. The conversion, if held on 1 July 2015, would result in the issuance of 560 (13,890 on January 1, 2015) new shares of ALL Malha Norte.

51 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

Total outstanding options granted to the Company’s employees were not considered in the calculation of the diluted earnings per share as the strike price was higher than the average market price of the common shares during the period.

24 Financial results, net

	July 1, 2015 to September 30, 2015			January 1, 2015 to September 30, 2015			July 1, 2014 to September 30, 2014			January 1, 2014 to September 30, 2014
Financial expense
Interest on loans		(322,485	)		(853,549	)		(177,413	)		(562,542	)
Interest expense		(105,693	)		(289,655	)		(55,674	)		(58,788	)
Indexation expenses		(106,575	)		(218,867	)		(15,241	)		(45,870	)
Bank fees		(85,507	)		(176,864	)		(15,008	)		(103,594	)
Leases		(43,605	)		(65,822	)		-			-
		(663,865	)		(1,604,757	)		(263,336	)		(770,794	)
Financial income
Income from short term investments		102,978			244,822			33,930			98,321
Interest income(i)		70,455			102,410			13,658			65,051
Indexation income		24,907			42,875			3,816			10,804
		198,340			390,107			51,404			174,176
Foreign exchange effects, net		(271,185	)		(764,917	)		(200,171	)		(103,612	)
Derivative income (losses)
Foreign exchange and     interest rate derivatives		206,988			582,516			124,412			51,225
		206,988			582,516			124,412			51,225
		(529,722	)		(1,397,051	)		(287,691	)		(649,005	)

(i) During the period ended September 30, 2015, interest rates were recorded for income tax and social contribution credit of R$ 51,756, due to changes in estimates for tax purposes resulting from the review of the calculation bases, 2009 and 2010, applying the lifetime rate provided in the IN 162/98 for assets belonging to the gas distribution network.

52 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

25 Other income (expenses), net

	July 1, 2015 to September 30, 2015			January 1, 2015 to September 30, 2015			July 1, 2014 to September 30, 2014			January 1, 2014 to September 30, 2014
Gain on pre-existing relationship before   negotiations for the business combinations		-			29,838			-			-
Changes in the fair   value of investment properties		-			23,162			18,745			63,728
Rental income		271			2,400			288			635
Loss on disposal of   non-current assets		(103	)		(2,762	)		(2,580	)		(7,387	)
Provisions for legal proceedings		(17,867	)		(37,092	)		(19,536	)		(45,765	)
Cost related to internal organization   and prospective acquisitions(i)		60			(106,599	)		(1,405	)		(125,617	)
Other		16,428			28,438			(4	)		10,954
		(1,211	)		(62,615	)		(4,492	)		(103,452	)

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

26 Financial instruments

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

	September 30, 2015		December 31, 2014
Assets
Fair value through profit or loss
Investment securities		1,093,917		149,735
Derivate financial instruments		2,667,353		890,578
		3,761,270		1,040,313
Loans and receivables
Cash and cash equivalents		2,126,808		1,649,340
Trade receivables		1,107,322		1,346,101
Related parties		269,701		250,884
Dividends receivable		212,938		36,130
Other trade receivables		76,445		440,180
		3,793,214		3,722,635
Total		7,554,484		4,762,948

53 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

Liabilities
Liabilities amortized cost
Loans, borrowings and debentures	12,947,830	5,991,887
Leases	1,823,645	-
Trade payables	2,292,679	1,112,459
Related parties	202,556	137,441
Contingent consideration - Earn out	133,197	186,649
Dividends payable	19,232	33,354
Tax installments - REFIS	217,793	524,703
Preferred shareholders payable in subsidiaries	2,106,730	1,926,888
	19,743,662	9,913,381
Fair value through profit or loss
Loans, borrowings and debentures	4,756,758	2,510,753
Advances on real state credits	306,097	-
Pension and post-employment benefits	317,864	301,850
Derivative financial instruments	769,217	333,435
	6,149,936	3,146,038
Total	25,893,598	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.

Risk management structure

As at September 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(i)				Fair value
	September 30, 2015		December 31, 2014		September 30, 2015			December 31, 2014			P&L(ii)
Exchange rate derivatives
Swap agreements		-		828,443		-			330,099			-
Forward agreements		1,808,948		178,127		294,470			21,250			301,936
Options		-		-		-			(8,842	)		217,992
		1,808,948		1,006,570		294,470			342,507			519,928
Interest rate and exchange rate risk
Swap agreements (interest rate)		865,002		221,560		(105,218	)		(40,330	)		(100,357	)
Cross currency interest rate swaps		2,877,281		1,659,904		1,708,884			254,966			500,420
		3,742,283		1,881,464		1,603,666			214,636			400,063
Total financial instruments						1,898,136			557,143			919,991
Assets						2,667,353			890,578
Liabilities						(769,217	)		(333,435	)

54 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

(i) These amounts corresponds to the notional in USD translated to R$ by exchange rate contracted.

(ii) 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$ 337,475 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.

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:

	September 30, 2015		December 31, 2014
Cash and cash equivalents		2,126,808		1,649,340
Investment securities		1,093,917		149,735
Trade receivables		1,107,322		1,346,101
Derivative financial instruments		2,667,353		890,578
Receivables from related parties		269,701		250,884
Other trade receivables		76,445		440,180
Dividends receivable		212,938		36,130
		7,554,484		4,762,948

a) Impairment

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 (Note 13).

b) Guarantees

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

55 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

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:

	September 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		(5,030,040	)		(7,887,178	)		(8,950,354	)		(9,887,626	)		(31,755,198	)		(14,988,841	)
Trade payables		(2,291,288	)		(1,391	)		-			-			(2,292,679	)		(1,034,282	)
REFIS		(22,386	)		(21,484	)		(42,968	)		(130,955	)		(217,793	)		(524,704	)
		(7,343,714	)		(7,910,053	)		(8,993,322	)		(10,018,581	)		(34,265,670	)		(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.

a) Foreign exchange risk

As at September 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:

	September 30, 2015						December 31, 2014
	R$			USD			R$			USD
Cash and cash equivalents		132,391			33,324			40,782			15,354
Trade receivables		7			2			4,708			1,772
Loans, borrowings and debentures(i)		(6,775,710	)		(1,705,412	)		(4,337,999	)		(1,633,160	)
Contingent consideration - Earn out		(48,476	)		(12,202	)		(47,340	)		(17,822	)
Derivative financial instruments(i)		6,766,762			1,703,160			9,235,274			3,745,648
Foreign exchange exposure, net		74,974			18,872			4,895,425			2,111,792

(i) These amounts corresponds to the notional in USD translated to R$, by exchange rate at September 30, 2015.

56 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

i. Sensitivity analysis on changes in foreign exchange rates

The probable scenario was defined based on the U.S. Dollar market rates as at September 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 September 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$/US$)
	September		Scenario
	30, 2015		Probable		25%		50%		-25%		-50%
At September 30, 2015		3.9729		3.9729		4.9661		5.9594		2.9797		1.9865

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	132,391		33,098		66,196		(33,098	)	(66,196	)
Exchange rate derivatives	USD fluctuation	1,808,948		519,475		1,038,951		(519,475	)	(1,038,951	)
Exchange rate	USD and
and interest derivatives(i)	CDI fluctuation	2,877,281		1,140,260		2,280,520		(1,140,260	)	(2,280,520	)
Loans, borrowings
and debentures	USD fluctuation	(6,775,710	)	(1,693,928	)	(3,387,855	)	1,693,928		3,387,855
Contingent consideration - Earn out	USD fluctuation	(48,476	)	(12,119	)	(24,238	)	12,119		24,238
Impacts on profit or loss		83,915		20,979		41,958		(20,979	)	(41,958	)

(i) For sensitivity analysis, it’s only considered exchange rate swaps.

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:

57 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

	September 30, 2015
Exposure interest rate(i)	Balance			25%			50%			-25%			-50%
Cash and cash equivalents		1,945,035			76,814			147,744			(64,916	)		(135,714	)
Investment securities		1,093,917			43,202			83,094			(36,510	)		(76,328	)
Loans, borrowings and debentures		(17,704,588	)		(494,955	)		(989,910	)		494,955			989,910
Derivative financial instruments		69,994			29,004			51,117			(36,897	)		(85,978	)
Impacts on profit or loss					(345,935	)		(707,955	)		356,632			691,890

(i) The CDI and TJLP indexes considered of 14.25% and 6.50%, 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)
	September 30, 2015		December 31, 2014		September 30, 2015		December 31, 2014
Assets
Cash and cash equivalents		2,126,808		1,649,340		2,126,808		1,649,340
Investment securities		1,093,917		149,735		1,093,917		149,735
Trade receivables		1,107,322		1,346,101		1,107,322		1,346,101
Derivative financial instruments		2,667,353		890,578		2,667,353		890,578
Related parties		269,701		250,884		269,701		250,884
Other trade receivables		76,445		440,180		76,445		440,180
Dividends receivable		212,938		36,130		212,938		36,130
Total		7,554,484		4,762,948		7,554,484		4,762,948
Liabilities
Loans, borrowings and debentures		17,704,588		8,502,640		16,614,559		8,287,378
Advances on real estate credits		306,097		-		306,097		-
Derivative financial instruments		769,217		333,435		769,217		333,435
Trade payables		2,292,679		1,112,459		2,292,679		1,112,459
Payables to related parties		202,556		137,441		202,556		137,441
Leases		1,823,645		-		1,823,645		-
Preferred shareholders payable in subsidiaries		2,106,730		1,926,888		2,106,730		1,926,888
Tax installments - REFIS		217,793		524,703		217,793		524,703
Contingent consideration - Earn out		133,197		186,649		133,197		186,649
Dividends payable		19,232		33,354		19,232		33,354
Total		25,575,734		12,757,569		24,485,705		12,542,307

(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.

58 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

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		(88,646	)		(71,330	)		(159,976	)
Fair value		654,249			(477,913	)		176,336
At September 30, 2015		1,918,399			(732,329	)		1,186,070

27 Fair value hierarchy

Assets and liabilities
measured at fair value	Level 1		Level 2			Total
At September 30, 2015
Cash and cash equivalents		181,773		1,945,035			2,126,808
Derivative financial assets		-		2,667,353			2,667,353
Derivative financial liabilities		-		(769,217	)		(769,217	)
Loans, borrowings and debentures		-		(4,756,758	)		(4,756,758	)
Advances on real state credits		-		(306,097	)		(306,097	)
Investment securities		-		1,093,917			1,093,917
Assets held for sale		-		289,295			289,295
Investment properties		-		2,385,932			2,385,932
Total		181,773		2,549,460			2,731,233
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
Investment securities		-		149,735			149,735
Assets held for sale		-		25,089			25,089
Investment properties		-		2,641,978			2,641,978
Total		-		7,033,560			7,033,560

59 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

28 Pension and post-employment benefit plans

	September 30, 2015		December 31, 2014
Futura		26,125		23,048
Futura II		289		240
COMGÁS		291,450		278,562
Total		317,864		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 nine month periods September 30, 2015, the amounts of contributions totaled R$ 722 and R$ 2,263, respectively (R$ 1,064 and R$ 3,119 for the three and nine month periods ended September 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 nine month periods ended September 30, 2015, the amounts of contributions totaled R$ 382 and R$ 1,191, respectively (R$ 441 and R$ 1,448 for the three and nine month periods ended September 30, 2014, respectively).

COMGÁS offers a supplementary retirement plan, through a defined contribution Free Benefit Generating Plan (“PGBL”). During the three and nine month periods ended September 30, 2015, employers’ contributions to the plan totaled R$ 8,770 and R$ 26,309, respectively (R$ 8,186 and R$ 24,559 for the three and nine month periods ended September 30, 2014, respectively).

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

60 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

capital at that time. On the same date the eligible executives were informed about the terms and conditions of the stock-option plan.

At August 31, 2015, 759,000 stock options were granted with vesting period of 5 years. The exercise period ends on August 31, 2022.

According to the average market value of the shares over a 30 day period ending at issuance, the exercise price was defined to be R$19.96 per share, without any discount.

The numbers of options outstanding as of September 30, 2015 is 9,671,000 (8,512,000 in the nine month period ended September 30, 2014), with a weighted average exercise price of R$ 27.84 (R$ 25.22 at September 30, 2014).

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 option was recalculated on the merger date, April 1, 2014.

The total of 1,478,659 options were assumed by Rumo. The fair value per option is R$ 0.18 as calculated using the binominal method. The average exercise price is R$ 5.03. This measure generated 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 September 30, 2015 are as follows:

Selling, general and   administrative expenses	(1,997	)
Financial results	(4,201	)
Loss before taxes	(6,198	)
Income tax (expense) benefit	(8	)
Loss from discontinued   operations, net of tax	(6,206	)

The operating cash flow from discontinued operations amounted to an outflow of R$ 153.

61 

Cosan Limited

Notes to the consolidated interim financial statements

For the three and nine month periods ended September 30, 2015 and 2014

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

31 Subsequent events

Cosan Log

On October 2, 2015, the Board of Directors approved the creation of the Plan Option or Share Subscription - Calendar Year 2015 ("2015 Program").

A total of 4,485,238 options were granted at an exercise price of R$ 7.31 (adjusted by IPCA). This plan has a vesting period of 5 years and options can be exercised between October 1, 2020 and up to 2 years after that date.

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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:	November 18, 2015	By:		/s/ Marcelo Eduardo Martins
			Name:	Marcelo Eduardo Martins
			Title:	Chief Financial Officer