La Meseta Management Report 2012

Management Report

www.lameseta.com.co

Capitalizing Knowledge

2012

La Meseta S.A.Compañía Cafetera

C o f f e e t o t h e w o r l d

# Exported bagsof 70 Kg.

# Exported bags of 70 Kg. each country by 2012

188.175Presence Countries26

www.lameseta.com.co 03

GERMANY

9.825

5.882

275

6.470

6.600

115.025

11.825

275

2.493

550

475

275

2.200

3.300

5.300

1.925

260

2.200

3.335

275

3.915

875

285

825

2.725

835

AUSTRALIA BELGIUM CANADA CHINA SLOVENIA ESTONIA SPAIN FRANCE GREECE IRELAND ISRAEL

JAPAN KOREA LEBANON MOROCCO MEXICO NETHERLANDS RUSSIA SOUTH AFRICA

SWEDEN SINGAPORE

ITALY

TURKEYTAIWAN USA

1. COFFEE TO THE WORLD


C o f f e e t o t h e w o r l d2012Management

Report

04

2. STRATEGIC DIRECTION La Meseta S.A.

Compañía Cafetera La Meseta S.A. Coffee Company La Meseta S.A. is projected for 2015 as a leader in the marketing of Excelso coffee, recognized for the high quality of its products and processes, with a large group of customers and strategic suppliers, and strict risk management, supported by highly trained personnel, systems for continuous improvement and effectiveness in production.

Coffee Company La Meseta S.A. has established itself as a solid company, committed to the marketing of coffee to the world, characterized by its efficiency in production, benefit, grinding and exporting of Excelso coffee, while paying special attention to the welfare of the coffee farmer as the basis for the sustainability of our activity in the future.

Our purpose

¿What inspires us?

Corporate Values

Efficiency Solidity Austerity

Dedication Security Humility




Report

Finca la GuameraWet Mill La Meseta

La Insula Wet Mill

La Insula (Santa Rosa) Storage Center

Pitalito Huila Storage Center

Thresher La Meseta06

3. STORAGE STRUCTURE

1

2

3

4

5

12

7

89

10

11

13

14

16

17

18

19

20

20

21

22

23

24

25

26

27

28

29

3130

Notice to the Coffee FarmerCoffee Company La Meseta S.A. in 2012 was in direct contact with 1,700 coffee families through its five collection centers and indirectly to about 10,000 families through independent middlemen and farmers' cooperatives.

Consolidation of the Huila Storage CenterTo ensure the continued growth of the Company, as well as the strong commitment to the improvement of the quality of their product, throughout the year 2012 the assembly and consolidation of the Huila Storage Center has been made. This commitment has enabled the company to improve the perception of the quality of its product because of the high quality coffee found in the south of the country, and an increase in the volume of dry parchment coffee acquired. The Huila Storage Center in 2012 acquired 34% of the company's the raw material becoming the company's main distribution center.


Buy Citiesin more than 5 departments

25

ANTIOQUIACALDASHUILARISARALDATOLIMAOTROS

1

2

3

4

5

6

ACEVEDOANSERMABELÉN DE UMBRÍABETULIACARAMANTA

7

8

9

10

11

2%39,5%37%19%1,5%1%

0,15%0,11%7,30%0,29%1,5%

CHINCHINÁIBAGÉLA MERCEDMANIZALESMANZANARESMARSELLANEIVA

19,96%0,02%0,59%2,5%12,41,66%0,34%

12

13

14

16

17

18

19

OPORAPA,ACEVEDOSAN ADOLFOGUADALUPESAN AGUSTÍNTIMANAGARZÓNSALADO BLANCOORTEGAPADUAPALESTINAPALO CABILDOPENSILVANIAPEREIRAPITALITORIO SUCIOSALAMINASANTA ROSAVILLAMARIA

20

21

22

23

24

25

26

37,40%

0,51%0,89%0,5%0,05%0,64%1,1%0,01%0,16%0,34%9,2%2,38%31

30

29

28

27

DEPARTMENTS

CITIES



Report

08

4. CONTEXT OF THE COFFEE FARMERIn a still weak international environment, with ups and downs and uncertainty towards the recovery of global economic growth, for the coffee industry 2012 was a year full of challenges. A year in which companies' ability to face a competitive market was tested, as was coffee in Colombia.

The coffee export market in Colombia can be considered an oligopoly where 83% of the product is marketed by 11 companies, of which there are 6 multinational holding about 40% of the market, The National Federation of Coffee Farmers with 22%, The Coffee Farmers Cooperative's Export Society, Expocafé, with 6.5%, and 3 private national exporters with about 15%, in which Coffee Company La Meseta SA is found.

After a 2011 characterized by high prices and in which the commercialization of grain to the exterior became complex, in 2012 the situation worsened, the Colombian Coffee commercialization chain was very demanding. Different agents had a widespread perception that coffee $100,000 per arroba was cheap and the price should increase. This situation resulted in most players in the coffee market taking long positions, which coupled with constant low international grain prices, the dollar and differentials, made the procurement of raw material not an easy task. No one wanted to sell coffee "cheap".

Moreover, in the external sector, the major global importers continued being prudent when making commitments with Colombian Coffee. The replacement of Arabica coffee, that our country produces, by Robusta coffee, which of a lower quality and price, by the roasters, and the situation experienced in the past years when the differential reached 100 cents per pound, were situations that pressured differentials


Multinacionales

Otros

La Meseta S.A.Federación Nacional

de Cafeteros

Exportadores Nacionales

Expocafé

17%

11%

7%

4%

40%

22%



Report

1700 0 0

1750 0.5 5

1800 1 10

1850 1.5 15

1900 2 20

1950 2.5 25

2000 30

1940 2.3 24

1800

1.45

8

2012 2012 20122011 2011 2011

Dollar Bag Differential

10

downward and caused the country's coffee demand to slow despite the low levels of production.

The index traded in NY, quotes a bag of Arabica quality coffee at close to $2.30 a pound beginning in 2012, and ended at levels close to $1.45, representing a yearly decrease of 37%. Meanwhile, the dollar also did its own thing, having started 2012 at levels near 1940 COP and ended around 1800, making the Colombian peso one of the most revalued currencies in the world during 2012.

Continuous improvements in Colombia's credit ratings and therefore the world's perception of the country's risk deem Colombia as a highly attractive destination for foreign investment. We believe that although the current exchange rate levels place the country in a complex scenario in terms of the competitiveness of their agricultural products. Chances are most feasible in terms of improved competitiveness, productivity and quality of coffee to face the current situation.

Piecewise in the NY exchange, Arabian coffee inventories increased slightly in 2012, due to the widespread replacement by Robusta. This replacement is encouraged due to the large difference in price that Arabic and Robusta came to have, and crops increases in Central America and Brazil. Despite the above situation, global inventories of both coffee grades remain tight and differences between Arabica and Robusta prices have fallen from about $2 to 50 cents per pound. Due to normal coffee cycles, it is feasible to believe coffee roasters should begin considering replacing Robusta coffee for better quality coffees, also considering the current uncertainty of the climate, any downside in Arabica coffee production, by major producer countries, can unleash further increases in the price of Arabica coffee, be it in differentials or NY stock value. The research, development and marketing

departments of large roasters may first need to run an adjustment period on this situation and must continue prudent in the management of risk of further declines.

The above situations put the Colombian coffee market in a complex environment that has required companies in 2012 to have a high level of efficiency and competitiveness to stay in business with acceptable levels of profitability. It is important to understand that the situation is particularly difficult for grain producers so La Meseta, being 99% dealer is not directly affected.

Aware of this reality and seeking to support the coffee value chain, La Meseta SA has redoubled its efforts and has launched an uncountable amount of projects in search of their competitiveness and in order to take advantage of the complex environment to expand their share in the green coffee market. The proposed goals throughout the

year have demanded structured management and reduction of risks and costs that continue today.

A significant number of investments have been

made in infrastructure; however, with the support, effort and commitment of the entire team, the most important advances are seen in terms of structuring, organizational development and market intelligence. We are confident progress in these administrative intelligence projects have made a strong appreciation of their know-how the largest acquisition in 2011, making it La Meseta SA Coffee Company's main asset. Our task in this report is to give a clear tour through this series of projects to illustrate the evolution of the company over the last year, well above financial results, which happen to continue in a very satisfactory direction.




Report

12

5. GENERAL INDICATORS 2012Despite a decrease in the price of coffee of approximately 43% at the end of 2012 in Colombia, La Meseta SA due to its work in positioning has obtained a decrease of only 25% of its total income primarily through a 14% increase in the quantity exported.

Total Gains

Quantities Traded

125.948.000.000

187.156.386.831

141.068.759.135

20122010 2011

188.175

40.50735.773

165.125

54.896

34537

Pasilla threshingExcelso Export National Excelso




Report

14

Market share

De esta manera, a pesar de la fuerte competencia que incluyó en el 2012 el ingreso de dos grandes multinacionales, la Meseta S.A. ha conservado su cuota de participación en el mercado de producción de café excelso con destino a exportación y se sigue consolidando como un representante sólido de los pocos exportadores privados nacionales.

In 2012, La Meseta SA saw two momentous processes in terms of their degree of permanence in the long run. First, the shareholders' decision on the recapitalization of earnings by $800 million to reach $2 billion which reaffirms their commitment to the company's and their remuneration to the participation of the financial sector in leveraging their activities.

Secondly, following the regulatory requirement and as expected from the previous year, Coffee Company La Meseta SA performed a process of assessment of its assets, which resulted in a revaluation surplus of 3,145,234 primarily represented in land valuation. The above process has allowed us to show the real level of debt held by La Meseta SA which today is 77%, which is seen as very healthy compared to industry standards.

The above situations have undoubtedly improved and strengthened the financial structure of the Company and will be a fundamental support for the growth expected in the near future.

Others

La Meseta

3.61%

96.39%

Others

La Meseta

3.55%

96.45%


1.000.000.000

2.000.000.000

3.000.000.000

4.000.000.000

5.000.000.000

2011 2012

Heritage StructureCapitalization - Superavit in Recovery

929.247.322

Others Capital Superavit in Recovery

370.963.780

1.200.000.0002.000.000.000

3.145.234.000

88%

82%

76%

70%

86%

80%

74%

90%

84%

78%

72%

2011 2012

Indebtedness

Indebtedness

77.04%

80.01%



Report

16

6. OUR POLICY OF VALUE


Given the known character is t ics of the international market, in a context of high liquidity but still with slow growth, in 2012, La Meseta SA has focused on the development and study of their integrated costs system and financial hedging of market risk.This approach has allowed the identification of business benefit, production and export of coffee in order to deepen knowledge and identification opportunities in the coffee production process and different administrative processes to further strengthen the company from within and make it less vulnerable to complex external conditions. This introspective exercise has enabled the company to advance on the safety of their processes as well as on the clarity of their overall functioning, which will surely help the desire to generate always increasing value.

Due to the Coffee business in Colombia being a predominantly export business and therefore exposed to the vagaries of the market, the coffee business in Colombia particularly the coffee index in NY, the dollar and differential, demands a constant awareness of the international coffee env i ronment , and the g loba l economic environment as well, in order to achieve a very accurate interpretation of it and adjust our expectations of profitability to the international situation and the industry.

The Company has taken the decision in the second half of 2012 to work under an even tighter market risk management, due to the way we evaluate and deepen the various strengths and weaknesses of the company, delving into costs processes and understanding the threats and opportunities of the current international environment of slow growth and uncertainty towards the price of coffee. This risk reduction in turn allowed us to reduce partners' expected returns justified in assuming the least amount of risk and therefore it has become a platform to leverage significant growth in sales

through competitive pricing for our customers and suppliers despite the complex environment.

The zero risk policy has been characterized by closed positions (not speculative) in coffee, dollar and differential. Differential coverage is performed by the delivery sales happening within maximum one month in order not to affect financial costs or inventory turnover, this allows us to negotiate the purchase of raw material at the same time of the sale, so that the rotation consists of only the time necessary for the production process and transit in port. In the same way, during the moment in which the cost of the raw material is agreed upon, the NY price index is negotiated, as well as the price of the dollar through Forward operations with banking and natural coverage with pre-export financing (debt in dollars), the operation of these oversights, like their reflection on the financial statements will be explained later in more detail.

Under this work scheme, the approach of the different organizational levels has focused on each of the areas' profound knowledge in order to achieve substantial increases in the quality and efficiency of processes and decreases in costs. All of the organizational areas have witnessed and contributed to this macro-project. In this Management Report, we delve into some achievements in the Administrative, Commercial, and Financial Operations areas under three intervention fields: integrated risk management, information flow for decision-making, and entrepreneurial maneuverability.



Report

18

7. ADMINISTRATIVE MANAGEMENT


2012 was a defining year for La Meseta in terms of organizational structure and administrative management. If the operational area honorably defended itself during the complex present and brought forth La Meseta in 2012, we believe the administrative area undertook definite projects to project the company towards further growth in the future. Although the operation answered well for itself in the present, we care and redouble efforts in managing the future that we believe will be capitalized on the near future.

Human Resource Management

The human resources area is remarkably represents a deepening of the company's vocation in the administrative area, understanding of processes, planning, control and flow of information for decision-making. This is how it has grown from 22 employees in the administrative area in 2011 to 28 employees in 2012.

The consolidation of the hierarchical organizational levels that began in 2011 reached significant maturity levels in 2012. Throughout the first semester a comprehensive training program was developed for all the levels of the company, with emphasis on managers and leaders, with the objective of developing by the end of year the first formal strategic planning and budgeting process. This training plan resulted in the creation of the Management Committee composed of the Chiefs of Operations, Human Resources, Accounting, Marketing and Sales, as well as the Administrative Assistant Manager, Deputy Manager of Operations, Commercial

90

60

30

0

80

50

20

70

40

10

Administrative

Braceros Production Insula Santa Rosa PitalitoHuila

Total

Payroll Distribution 2011 -2012

2011 2012

2215

911

4

61

4

28

1710 12

7

78

0



Report

20

Management and General Management. This interdisciplinary team was formed for the rational pursuit of the fulfillment of organizational objectives through target areas and performance indicators to promote continued growth. A product of the 2012 training plan with the accompanying developed system of cost processes, the La Meseta Strategic Plan for the year 2013 was developed as an alternative to deal with the complex situation facing the sector and to gain greater market share

In tandem with the Management Committee, a system of middle management and operational growth forecast has been developed and matured for the promotion of all employees of the organization. This plan seeks through the use of the young average age of the company payroll to encourage their training and growth within the company in order to support and generate business growth in the future.

This work focus has achieved a reduction in the rate of absenteeism due to illness, especially, three day recurrent disabilities were controlled starting from the first quarter (6 days on average in the first quarter to 3 days on average in the last quarter), by means of follow-ups on workers with recurring behaviors and the scheduling holidays and breaks.

Internal Control

A safe company is a company in full control of its vital risks; this is how the development of the internal audit area for the understanding, monitoring and continuous improvement of all internal processes began.

The 2012 Internal audit has achieved standardization, on par with the SIME 2, of the internal control system of the company's 5 storage centers: Santa Rosa, Insula, Meseta, Huila and Trilladora. Starting from the internal control challenge that has been the opening of a distribution center in the department of Huila has been taken as a pilot project to standardize the process of this branch's internal control, achieving control and weekly monitoring of all operations and activities as well as certain financial results. This monitoring and control model has also begun being implemented at the other storage centers within the Company, becoming a vital source of uniform information and operations for the management with significant savings in time and security.

Additionally, the Shareholders in their decision to redouble control efforts, in late 2012 hired a full-time recognized tax auditor for the supporting of the whole internal control system. In different situations, this feedback factor has been present in the everyday support of continuous improvement of organizational processes and activities

Information Systems

At the level of the development of their information systems, 2012 was also a defining year for the company. After a couple of years of allowing SIME (La Meseta


Information System, a proprietary system developed for the specific processes of purchase, production, marketing and risk management) to mature, there has been a unification of the database in the central Meseta Trilladora. Thus, the control of the company's information is consolidated into a central server located in La Meseta Trilladora's grounds through the information system SIME version 2 and the Mekano ERP system. In companies exposed to international market volatility, speed, timeliness and reliability of information becomes one of the most important values. Thus after two years in this primary stage of comprehensive systematization of operations of the company, has been achieved in 2012 the integration of all your information. This advancement will allow us in the near future to further detail the processes of costs of different branches and strengthen comprehensive organizational control. Have been strengthened in this way the flow of information for decision-making and comprehensive risk management.

La Guamera Storage

Central Office Storage

Servidor de Datos

Head of Accounting

Treasury Coordinator

Accounting Assistant

Assistant Treasury

Accounting Assistant 2

La Insula Storage

Santa Rosa Storage

Pitalito Huila Storage

Chief Operating

CoordinationHuman Resource

Interaction of the ChiefExport

(Supports Export coastsand Financial Benefits

it)

Administrative System and Controlledby the Systems Coordination

LAN Local Area Network: There is a synchronization of data entry and processed information of each of the nodes or workstations. Each node has a specific role according to their area but considering the source of the primary data, in the Purchase and Negotiation Product. Thresher headquarters has approximately 22 local nodes that interact simultaneously with analog communication (Structured cabling) under computer settings and security levels, all at the same time.



Report

22

Market Opening

As aforementioned, 2012 continued with a strong market opening plan seeking the diversification of La Meseta's customers, after analysis of the risk posed by rely on a small number of customers who are liable to stop and reduce the volume of purchases. The previous program hand-in-hand with the consolidation of the commercial department, headed by the commercial manager, Chief of marketing and sales, along with the strengthening of the export logistics department, which already counts with three people who led to a growth in exports by 14% despite less than comfortable conditions of the international coffee market for the sale of Colombian Arabica coffee.

8. COMMERCIAL AND MARKETING MANAGEMENT


Additional to the above, for direct presence in markets in the Middle East, Korea and Italy, representation contracts with international agents have been agreed upon. Consequently achieving significant increases in major markets with a very important growth potential for quality coffees reaching a share of 14% of La Meseta's coffee exports in these three markets in 2012.

Special Coffees

Thanks to the experience gained by the commercialization of Excelso in the coffee market and with the intent of increasingly improving the quality of the processes and products. In 2012, the commercial and marketing department has expanded towards the special coffees market in terms of in cup quality and traceability. A product resulting from these efforts has been able to profile and position coffee from La Meseta Coffee Farm as Estate Coffee. Estate Coffee is a coffee from a particular source with special cup characteristics, which is produced by means of keeping the best quality standards, helping to ensure the traceability and consistency of the product. This aspect adds significant value to the quality of the harvest product. The intention of the company is to bring more and more producers of high quality coffee to international markets so that they can get additional premiums and values effort and good production practices

Publicity and Marketing

To support this trade expansion process, advertising and marketing work has intensified p r i m a r i l y t h r o u g h o u r w e b s i t e , www.lameseta.com.co, with constant updates and integration with social networks like twitter, Facebook or professional networks like linkedin,

frequently visited by professionals from the worldwide coffee marketing chain. These activities, coupled with the increase in the quantity exported by La Meseta SA under its own packaging, have begun to put La Meseta as representative and remembered vendor when buying Colombian coffee which has become a fundamental guarantee for the permanence of our operations

Security of Markey Opening Processes

Being aware that growth brings its risks, the commercial department has developed and updated its sales protocol according to the needs of a widening international market. Within this commercial protocol, a number of steps to ensure the safety of the entire sales process, pricing, shipping and freight payment has been defined, which has led us to increase the use of methodologies, such as credit letters and bank collections, ensuring the successful completion of every business. Likewise, we expanded in sales, under Incoterms CIF and C&F, despite not being the most used shipping method by Colombian exporters in seeking to advance the value chain and achieve a closer relationship with new customers.

As a result of all the processes described, in 2012, the customer base of the company was increased by 130%. These results will surely be reflected in improved profit margins in the near future.



Report

24

With the emphasis on financial hedging and stabilize profit margins, La Meseta's leadership has been able to focus on projects of great importance in reducing costs and increasing operational efficiency. Under this scenario, several key projects, including the strengthening of the company's entire operational area through the creation of the Chief of Operations.

In 2012, the chief of operations had taken Comprehensive Control of the production, quality, maintenance, and operational logistics areas as the objective, seeking to ensure the reduction of the production cost, agility in proper rotation, and the company's product quality.

2012 focused on structuring and staff training for what would be the company's operational strategy, which is why during first half of the year, store coordination and maintenance were developed accompanied by the construction of the company's

9. GESTIÓN OPERATIVA


general store, the workshop and warehouse for spare parts, processes that will streamline the ability to respond to emergency maintenance. In the second half, staff training and incorporation of qualified personnel (SENA technologist) for handling electronic machines.

The standardization of the company's operational functions approach was able to optimize the direct labor associated with the process and has placed staff, according to their profiles and strengths, in areas where their performance is superior. In the framework of this process, the structuring of the Quality Department to cover in full production shifts was allowed, thereby ensuring the quality of production processes and the coffee. In late 2012, this production doubled with the same staff and has achieved recertification in BASC, which identifies meeting with quality and safety standards of the various operational processes.

In terms of infrastructure, La Meseta's tirlladora and stow methodology was redesigned to optimize the use of space, as well as the purchasing of a truck to achieve greater efficiency and flexibility in inventory management, and the loading and unloading processes. Additionally, at the end of 2011 the expansion of the storage facility was consolidated, and supplemented by the equipping of offices for the operations department, a modern quality laboratory, and a well-equipped auditorium and an area for corporate and stakeholder meetings.

Lastly, the company underwent and achieved an application process for an energy and unregulated market surtax exemption, which also resulted in cost reduction.

Transportation

In 2012 our own freight to port unit was consolidated. A project that began in 2011 with the acquisition of three trucks, in leased, in order to ensure efficiency and speed in transporting goods to port, also looking to increase security on all goods transport processes. The transport unit was established, and in 2012 it proved to have positive financial results.



Report

26

10. FINANCIAL RESULTS


2012 was a year of consolidation and positioning for the company. La Meseta has been aware of the state of the coffee marketing business cycle in Colombia and challenges for the sector. This state has been faced with a large iron positivism and belief that the coffee business's opportunities have no borders. It is for this conviction that in the current, complex year, as described above, an emphasis on the development of administrative and sales projects, in order to ensure the future growth of the company, has been taken.

A reflection of this policy is the distribution of the participation of the various items of the statement of results in which one can identify two situations: 1) The increase in gross margin of 5% to 6% in 2012 due to a stronger focus on the more valuable external coffee market, 2) the strong broadcasting of the company from its perspective from the operating department towards the sales and administration department, a category which increased 765,183,930 among which are promotional, outreach, personnel, training activities, that although by accounting policy are expenses, are intangible assets that we believe will be capitalized on the short term.

91,0%

96,0%

92,0%

97,0%

93,0%

98,0%

94,0%

99,0%

95,0%

100,0%

101,0%

2011 2012

State Involvement AnalysisResult 2011 - 2012

95,0% 94,0%

3,0% 4,5%

0,2% 0,2%

1,63% 1,10%

Net Profit

Admon and Sales Expenses

Provision for taxes

Cost of production

Financial



Report

28

Another important aspect to analyze is the category of decreased net non-operating expenses that went from $ 3,043,134,548 in 2011 to $ 1,556,150,497 in 2012. This decrease can be explained by three factors: the approximately 37% decrease in the price of coffee, the decrease in the cost of our debt, and what we consider most important, the accounting results of the difference account in exchange and the net results of forward operations.

The positive net worth reflects the company's strong forward hedging policy in 2012, compared with the constant risk of the revaluation of the Peso obtaining an income of 258 million Pesos. Moreover it is important to understand the difference in the accounting change as a difference arising from the difference between the value of the export invoice in pesos, which should be accounted for according to the date of the BL, and the value of pesos received by the monetization of the invoice that takes place later.

From the above paragraph one can interpret these differences, positive as operational differences resulting from normal elapse of the coffee export business. Although by accounting policies, these accounts are part of the operational component of a business like La Meseta, and it is crucial to read them as operational when interpreting the results, as they are not the result of speculation but of hedging activities.

Thus, for the financial reading, we have a "second operating profit," in which we add

(3.500.000.000%)

(1.000.000.000%)

(3.000.000.000%)

(500.000.000%)

(2.500.000.000%)

-

(2.000.000.000%)

500.000.000%

(1.500.000.000%)

1.000.000.000%

1.500.000.000%

Results not operational

(526.027.988)

(94.808.457)

(2.086.939.572)

(1.870.604.238)

2012 2011

257.989.660

(520.684.779)

197.278.802

(651.167.132)

601.548.601

94.130.058

Others expenses

Exchange Difference

Others income

Financial IncomeForward

Financial Expenses


these differences of 455,268,458 leaving a total of $2,540,146,017 to cover financial expenses by $2,086,939,572 and respond to the financing structure.

Additional to the exchange coverage with Forward operations, the currency risk is naturally covered with dollar debt acquired by the company in 2011 and throughout 2012.

In late 2012, the financial structure of the company's product considerably became product of the commercial appraisal of its assets. This has enabled La Meseta to lower its debt level from 88% to 77%, representing a great strength to the financial sector.

La Meseta SA has been characterized by the speed of rotation of its inventory and accounts receivable, reasons that have enabled it to leverage a representative sales level from a relatively small asset structure. Such rotation sample sales results were obtained in 2011, reaching the figure of 187 billion a cash cycle of 28 days.

PassiveNoncurrent

PassiveNoncurrent

Heritage Heritage

PassiveCurrent

PassiveCurrent

12% 23%

43% 40%

45% 37%

Financial StructureDec. 2011

Financial StructureDec. 2012

C x Receivable

13 days

CxP

Inventories

16 daysDay 0 Day 29

Effective cycle 2011

Management Area

1 Day 28 Days



Report

30

Product of the constant price declines in 2012 and due to long positions in coffee producers and traders, La Meseta to ensure constant supply of raw material is forced to get coffee on deposit. Coffee on deposit is a modality in which the coffee farmer delivers his product to commercializing companies in exchange for a percentage of the value of it, but without agreeing on a final price. As a result of providers' deposits that charged large amounts of coffee throughout the year and true to its zero risk policy, La Meseta met the challenge of a large amount of coffee accumulated on deposit but that could not sell because a final purchase price had not been agreed upon. Thus the cash cycle in the year 2012 increased significantly due to the increase in inventory turnover, demanding in the second half of the year focus on a procedure for these types of purchases where the business cycle is protected as well as the financial costs of the Company.

By 2013 it is expected to consolidate the Company's activity indicators and achieve a cash cycle of 25 days to enable us to increase the volume of transactions with debt levels close to the current.

The healing of the company's accounts receivable as well as the efficient rotation that has characterized it, have enabled a significant leverage and liquidity levels as the driven current ration of 1.88 in 2012 to provide peace of mind about the ability of the company to meet its short-term obligations like interest coverage on the EBITDA that have remained at very acceptable levels.

In the same way as the expectations of the financial sector are covered with the operations of the company and its capital is safe, despite the low net margin Net Income/sales due to the high income of the company, the shareholder returns also was successful in difficult years like 2011 and 2012, represented the return on equity.

C x Receivable

8.19 days

CxP

Inventories

35.84 daysDay 0

2 Days

42 Days

Day 44

Cash Cycle 2012

Management Area

Ebitda/ Financial expendetures

2011

1.588

2011

1.48


It is important to note that the return on equity is given according to the equity level before the assessment made in the month of December, on which were given the expectations of partners throughout 2012. The challenge for La Meseta in 2013 is to maintain return on equity levels close, after valuations obtained so that the focus of work will be the increased profit margin and therefore the operating and net profits.

0.00%

5.00%

10.00%

15.00%

20.00%

2011 2012

Return on Equity

16.40%

10.20%



Report

32

11. LEGALITY, COMPLIANCE AND HEALTH


In 2012, La Meseta S.A Coffee Company had commercial relationships with Jorge Hernán Muñoz Castaño from dry parchment coffee buying.

The Company has a total of 25 Microsoft Windows Professional OPL licenses, 13 OEM licenses and 27 Office Home and Business 2010 licenses. As for computer security the company has 25 Kaspersky BusinessSpace Security licenses. Additionally free licensing works with Microsoft Security Essentials 4.0, and starter office.

As information systems, the company has 1 server, nine local nodes and 3 web nodes for the Mekano information system. Additionally it has an unlimited license to use the information system in its version 2.0 SIME.

La Meseta is covered against various physical and legal risks by the insurance company Provisora de Seguros SA, all facilities, coffee warehouses have risk policies as well as a tort policy for transporting goods and values have. The only claim presented was a fire in a silo storage facility in Santa Rosa where minor losses were compensated by the insurance company, in addition to this there were no complaints which is indicative of the efficient operations and risk management.

Transition to NIIF

In 2012, La Meseta Coffee Company SA began the transition process of to full IFRS with comprehensive training their accounting staff as well as hiring a Statutory Auditor with knowledge and experience in international standards. In 2013, we will delve further in the preparation stage and will transition in 2014 to begin the implementation in 2015.

The Company, as can be corroborated in its opinion expressed by the tax inspector, is free of problems and labor, commercial and tax disputes, meeting its goal of total health to face the daily challenges of the market.



Report

DICTAMEN

34

Manizales, March 1st, 2013

General Assembly of PartnersLA MESETA S.A.Ciudad

LA MESETA S.A. General Assembly:

We have examined the Balance Sheet for LA MESETA S.A, for December 31st of years 2012 and 2011. The corresponding income statements, changes in equity statements, statements of financial position, and cash flow statements for the years ended on those dates, and disclosures made by The Notes on the Financial Statements that have been prepared as required by Decree 2649 of 1993, that has been replaced by Law 1314 of the year 2009 and Law 222 of the year 1995, forming with them an indivisible whole.

These financial statements were prepared and certified under the responsibility of the Administration. One of our responsibilities is to express an opinion on said certified Financial Statements, and if there is agreement among them.

Our examination was conducted in accordance with generally accepted auditing standards and accordingly, it included the obtaining of necessary information for the faithful performance of our duties. Tests were conducted on accounting documents and records and other audit procedures were applied.

In our opinion, the aforementioned financial statements, taken faithfully from the books and attached to this report, fairly present the financial position of LA MESETA S.A, to December 31st of years 2012 and 2011, as well as the results of its operations, the changes in equity, changes in financial position and cash flows for the years then ending in the above dates, in accordance with accounting standards generally accepted in Colombia and that are applied uniformly.

These financial statements are consistent with the Management Report, prepared as required by Law 222 of the year 1995, which included the management's expression of the software's validity and the compliance with copyright rules established by law 603 of the year 2000.

This Statutory Auditor further finds that the company complies with the standards established by the Comprehensive Social Security System, according to Articles 11 and 12 of Decree 1406 of the year 1999 "Whereby regulatory provisions, of Law 100 of the year 1993, partially regulated by Article 91 of Law 488 of 24 December 1998, are


adopted for the commissioning of the only Registry of Contributors of Comprehensive Social Security System and other provisions."

Based on the scope of our review, we conceptualize that the accounting is done in accordance with legal regulations and accounting techniques; registered operations and administrative actions comply with the bylaws, the provisions of General Assembly and decisions of the Board of directors.

That the correspondence, proof of the accounts and minute books are kept and preserved properly, and there are adequate internal control measures. We leave further evidence that the software used by the company is licensed and therefore complies with intellectual property rules as is stated in the company's documents received and in which cases it certifies. On that aspect as already noted, the Legal Representative was also listed in the annual report, in addition to the adequate conservation and custody of company or third party assets possibly in the Representative's possession.

Reports on Internal Control were presented as they were tested during the year and the administration was in charge of their implementation. Sincerely,

Originally SignedC.P. HECTOR JAIME CORREA PINZONStatutory AuditorT.P. 9388-TC & A LTDARIP No 985



Report

INFORME DE GESTIÓN DE LAREVISORÍA FISCAL

36

Manizales, March 10th, 2013

SHAREHOLDERDSCOFFEE COMPANY LA MESETA S.A.The City

Ref: Management Report of the Statutory Auditor.

In fulfillment of our duties as Statutory Auditors of the Company Coffee La Meseta SA, which includes a comprehensive audit, allowing us to present the most outstanding aspects of the Company's activities.

FINANCIAL AUDIT

The review of financial information, verifying the reasonableness of the Company's monthly financial statements has been conducted, and a review and verification of financial information that should be reported annually to the Superintendency of Corporations and the various State control bodies that is carried out.

Review, verification and analysis of all information, which by evidence and physical documents should be proven in accounting, as evidence of the entity's income and expenses.

Performing bank reconciliations supported in bank reconciliations that are performed every month in the Company.

COMPLIANCE AUDIT:From the legal point of view, the Company met, throughout the year 2012, with statutory obligations, guidelines and directives issued by the Superintendency of Companies, Fiscal, Administrative and Labor, which allows to conclude the Company's strength before the State's control and supervision entities.

On the tax side, the Statutory Auditor performs an accompaniment tax review and verification, an activity that is performed in conjunction with the accounting area, reviewing tax returns for and IVA and tax withholdings, Reteica, Income and Statement of Industry and Commerce before and after its presentation. Counseling in the processing and production of magnetic media, as part of the value added of the Statutory Auditor, for timely delivery to the Dian.

As for labor, the payment of payroll taxes and contributions to the social security system are reviewed and verified monthly, and are made within the time limits previously set by government entities.

Up to December 31, 2012, it was verified that the appropriate financial information corresponds to the information found in the company's software, which effectively presents no discomfort.

MANAGEMENT AUDIT:The main aspect that should be highlighted in the Company is the commitment generated by the


Administration led by the Management, in order to adopt, within the organizational culture, continuous quality improvement and ongoing training for the Company's Human Resources.

Check the conformity of the Company's management with legal, technical, administrative, financial and accounting, and the application of international financial reporting standards.

INTERNAL CONTROL AUDIT:

Identify and report accordingly the situations that endanger the viability of the Company.

Recommend corrective action, preventive or improvement.

Continually perform surprise cash counts of officials responsible for managing these funds.

It is important to note that they are implementing appropriate processes and internal control procedures, some of them recommended by the Statutory Auditor, but implemented by the Administration and the Internal Control Office, as it is responsible. This does not mean that no hazardous situations could arise, which are inherent to the activities that are performed daily in the Company and understanding that internal control is under construction.

The Statutory Auditor performs audit programs in Cash and Banks, Payroll, Accounts Receivable (accounts payable circularization) and others, all aimed at improving these processes and procedures used, so that staff is aware of their roles and a culture is self-control is generated.

As can be seen, our Statutory Auditor performs a Comprehensive Audit process, advisory, consulting and permanent support.Any concerns will gladly be attended to,

Best wishes,

proceso de Auditoría Integral, de asesoría, consultoría y acompañamiento permanente.

Originally Signed

C.P.HECTOR JAIME CORREA PINZÓNC & A Ltda.Statutory Auditor T.P. 9388-Trip No 985



Report

38

ESTADOS FINANCIEROS




Report

40




Report

42

2012 2011 VARIACION

SUPERAVIT ACUMULADO 836.322.589 521.512.136 314.810.453

GANANCIA DEL EJERCICIO 241.716.458 349.789.392 -108.072.934

SUBTOTAL 1.078.039.047 871.301.528 206.737.519

APROPIACIONES PARA RESERVAS 24.171.646 34.978.939 0

DIVIDENDOS DECRETADOS EN ACCIONES 800.000.000 0 0

DIVIDENDOS DECRETADOS EN EFECTIVO 0 0 0

GANANCIA ACUMULADA DIC 31 253.867.401 836.322.589 206.737.519

JORGE HERNAN MUÑOZ CASTAÑO FRANCISCA MILENA PINILLA SALAZAR HECTOR JAIME CORREA PINZON

Representante Legal Contador C.C. 15.911.728 de Riosucio

TP 112930 - T REVISOR FISCAL C&A LTDA

T.P. 9388 - T (Ver opinion Adjunta)

EL REPRESENTANTE LEGAL Y EL CONTADOR PUBLICO DEJAN CONSTANCIA CON SU FIRM A, QUE HAN VERIFICADO PREVIAM ENTE LAS AFIRM ACIONES

CONTENIDAS EN LOS ESTADOS FINANCIEROS, CONFORM E AL REGLAM ENTO, Y QUE LAS M ISM AS SE HAN TOM ADO FIELM ENTE DE LOS LIBROS

ESTADO DE GANANCIAS RETENIDAS (DEFICIT ACUMULADO)

COMPARATIVO A DICIEMBRE 31 DE 2012


2012 2011 VARIACION

ACTIVO CORRIENTE 16.839.263.168 15.364.570.106 1.474.693.062

PASIVO CORRIENTE 8.937.244.735 7.572.906.238 1.364.338.497

CAPITAL DE TRABAJO 7.902.018.433 7.791.663.868 110.354.565

UTILIDAD DEL EJERCICIO 241.716.458 349.789.392 -108.072.934

MAS PARTIDAS QUE NO IMPLICAN 0 0 0

EROGACION DE FONDOS: 0 0 0

DEPRECIACION 149.032.921 77.676.784 71.356.137

AMORTIZACION DIFERIDOS 286.608.305 89.230.810 197.377.495

AJUSTE POR INFLACION PATRIMONIO 0 0 0

INGRESOS GENERADOS POR OPERACION 677.357.684 516.696.986 160.660.698

FUENTES:

INCREMENTO CAPITAL SOCIAL 800.000.000 0 800.000.000

INCREMENTO DIFERIDOS -1.171.141.413 -739.823.766 -431.317.647

INCREMENTO COMPRA PROP. PLTA Y EQUIPO -919.513.958 -493.475.290 -426.038.668

TOTAL FUENTES -613.297.687 -716.602.070 103.304.383

APLICACIONES

OBLIGACIONES FRAS A LARGO PLAZO -1.938.369.453 -2.559.520.707 621.151.254

PROVISION IMPUESTOS 414.717.201 -195.750.969 610.468.170

VARIACION INTANGIBLES 0 0 0

TOTAL APLICACIONES -1.523.652.252 -2.755.271.676 1.231.619.424

VARIACION DEL CAPITAL DE TRABAJO 910.354.566 2.038.669.607 -1.128.315.041






ESTADO DE CAMBIOS EN LA SITUACION FINANCIERA

A DICIEMBRE 31 DE 2011




Report

44

2012 2011Flujos de efectivo proven. actividades operativas:

Utilidad o pérdida del ejercicio 241.716.458 349.789.392

PARTIDAS QUE NO AFECTAN EL EFECTIVO

Depreciacion neta 149.032.921 77.676.784

Amortizaciones 286.608.305 89.230.810

Otros 0 0

Resultado neto de ajustes por inflación 0 0

FLUJO DE EFECTIVO ACTIVIDADES OPER. 677.357.684 516.696.986

Movimiento neto del capital de trabajo

Cuentas por cobrar 3.697.407.596 -1.161.091.397

Inventarios -5.152.947.778 -1.176.098.884

Cargos diferidos y Gtos pagados por anticipado 605.087 -61.557.275

Sobregiro bancario 348.236.849 -851.421.242

Obligaciones financieras a corto plazo 434.230.797 3.058.861.911

Cuentas por pagar 217.594.613 -950.235.504

Pasivos acumulados -127.706.601 195.750.969

Pasivos diferidos 77.265.638 -667.397.891

Prestaciones sociales 25.573.402 65.182.633

EFECT. NETO ACTIVIDADES OPERAC 197.617.287 -1.031.309.784

flujo de efectivo en actividades de inversón

Aumento Intangibles - Inversiones -800.000.000 -66.099.800

-800.000.000 -66.099.800

Movimiento neto de propiedad planta y equipo -919.513.958 -493.475.290

Activos diferidos - Derechos -1.171.141.413 -739.823.766

EFECT. NETO ACTIVIDADES INVERSION -2.090.655.371 -1.233.299.056

Flujo neto de efectivo en actividades de financiación

Aumento de capital social 800.000.000 0

Obligaciones financieras 1.912.796.051 2.494.338.074

EFECT. NETO ACTIVIDADES FINANCIAC 2.712.796.051 5.076.556.512

Incremento neto de efectivo 19.757.967 163.629.434

EFECTIVO INICIAL 236.350.707 72.721.273

TOTAL EFECTIVO 256.108.675 236.350.707

0 -1






ESTADO DE FLUJOS DE EFECTIVO

PARA EL AÑO TERMINADO EN 2012



2.012 2.011 VARIACION

PATRIMONIO

CAPITAL AUTORIZADO 4.000.000.000 1.200.000.000 2.800.000.000

(-) ACCIONES SUSCRIBIR 2.000.000.000 0 2.000.000.000

0

CAPITAL SUSCRITO Y PAGADO 2.000.000.000 1.200.000.000 800.000.000

0

RESERVA LEGAL 92.924.732 575.424 92.349.308

UTIL (O PERD) EJ.ANTERIOR 36.322.590 5.178.818 31.143.772

UTILIDAD (O PERD) PTE.EJERCICIO 241.716.458 573.703.687 -331.987.229

0 0 0

SUPERAVIT POR VALORIZACIONES 3.145.234.000 0 3.145.234.000

5.516.197.780 1.779.457.929 3.736.739.851

TOTAL AUMENTO PATRIMONIO ENERO A DICIEMBRE 2011-2012 591.505.851

TOTAL AUMENTO VALORIZACIONES ENERO A DICIEMBRE 2011-2012 3.145.234.000

TOTAL AUMENTO A DICIEMBRE 31 DE 2012 3.736.739.851





ESTADO DE CAMBIOS EN EL PATRIMONIO

A DICIEMBRE 31 DE 2012





Report

46

NOTES TO THE FINANCIAL STATEMENTS 2012


REPORTING ENTITY

La Meseta S. A. Coffee Company, Nit. 900.298.861-9 with headquarters in the city of Chinchiná, Department of Caldas, Colombia, South America, located at Carrera 5 N. 6-30, constituted by Deed No. 482 of the Second Notary of Chinchiná, on June 17, 2009, registered at the Chinchiná Chamber of Commerce on July 6, 2009 under registration No. 00001897 of Book IX, and commercial registration No.17440. Its validity is until December 31, 2040. Its purpose is 1) the purchase, sale, import, export, marketing, distribution, agency and representation for all kinds of domestic or foreign goods. 2) The organization, operation, management and operation of commercial establishments for the marketing of all kinds of goods and, especially, the production of coffee, its threshing, and the purchase, sale and export of coffee in all its forms. To fulfill the objective, the company may, in particular, hold all kinds of acts and contracts related to the management of immovable property, acquire movable or immovable property under any title, dispose of, pledge or mortgage, limit its domain, give them as security to third parties for obligations; lease or rent movable or immovable property; enter into transactions with commercial establishments, participate as a partner or shareholder in the formation of all types of commercial or civil companies and acquire title to any shares, parts or shares in this same class of companies; give, accept, negotiate, pay, endorse, cancel, sell, resell securities of all kinds, to conclude a contract of mutual interest or not, with guarantees or without, conclude bank contracts, in general, perform all types of civil operations and commercial operations, develop business, always in relation to the purpose indicated, but may it be said that society lacks the capacity to perform any act of such nature. 3. The resulting cherry of coffee's benefit could be processed destined to make the final product HUMUS (Organic Fertilizer) to alienate in national and international markets.

PARAGRAPH 1: According to the law, within the social objective, acts directly related to it and which are designed to exercise the rights and fulfill legal or conventional obligations brought by the existence of society.

PARAGRAPH 2: The company may merge with another company or companies that have the same or similar social objective or proposed, it may likewise absorb or merge with one or more corporations or split.

PARAGRAPH 3: The Company can also, for the fulfillment of its purpose, engage in all manner of public or private elicitations and/or contests for the implementation of activities or the provision of services that constitute its corporate purpose.

PARAGRAPH 4: Coffee Company La Meseta SA is prohibited from, giving loan guarantees or warranties of any kind, or signing with their signature or their third-



Report

48

party obligation goods, except in the case of strengthening, endorsing or guaranteeing third-party transactions in which the company has a direct interest.

PRINCIPAL ACCOUNTING POLICIES AND PRACTICES

Accounting System: The accounting and financial statements of the Company Coffee La Meseta S. A., comply with the standards and generally accepted accounting practices, regulations of the Superintendency of Companies and expressed legal norms in Colombia, Decrees 2649 and 2650 of 1993 and its amendments.

Currency: According to the laws, the currency used by the company for Income and Statement Balance accounts is the Colombian peso.

Difference in exchange: The Accounts Receivable and Accounts Payable in foreign currencies are converted into Colombian pesos at the representative market exchange rate at year-end, for the December 31, 2011 the TRM certified by the Financial Superintendence was $1,942.70. The exchange difference generated is recorded in the income statements.

Inflation adjustments: Coffee Company La Meseta SA, did not adjusted its non-monetary assets and liabilities to recognize the effect of inflation, since the 1111 Act of 2006 eliminated them in order to be applied fiscally and Decree 1536 of May 7, 2007 eliminated them accountably.

Debtors: The customer portfolio has a rotation of eight days; no provisions were made given that non-performing loans are inexistent.

As for other types of debtors, depending on their origin respective steps to follow must be taken.

Inventories: are stated at cost of acquisition by the permanent inventory system and its method of valuation is weighted average.

Property, plant and equipment: These are recorded at acquisition cost, depreciation is made on the basis of straight line method.

Expenditures for repairs and maintenance are charged to the income statement, as they are incurred. For assets that require repairs or maintenance to increase service life, its depreciation must be recalculated in the same proportion.

The company employs techniques and procedures for depreciation in fiscal, accounting and tax terms that are applied in Colombia, as well:


* For Buildings 5% - 20 years * For Furniture and fixtures 10% - 10 years * For Computer Equiptment 20% - 5 years * For Vihicles 20% - 5 years

Deferred: consist of prepaid expenses, where insurance and maintenance are recorded and amortized to one (1) year and deferred assets originating mainly in: Installation and assembly costs amortized to five (5) years and software to three (3 ) years.

Valuations and Provisions Property, plant and equipment: Keeping with Decree 2649 of 1993, the company recognizes the valuations or supplies resulting from technical appraisals compared with net book value. The company was founded in 2009, and therefore there was a legal obligation to carry out technical appraisals.As for financial obligations and other creditors should likewise make the respective disclosures depending on origin.Provision for Income Tax: The income tax provision corresponds to the respective tax year, to the highest assessed value resulting from the calculations made by the net income and presumptive income method applying to the said value a effective tax rate of 33% for the tax year 2012.

Labor obligations: 95% of the staff is hired for an indefinite term; thus layoffs were deposited in a fund.

Recognition of Income and Expenses: Revenues, costs and expenses are accounted for on an accrual basis.

NOTE No.1. Accounts Receivable



Report

NOTE No.2. Expenses Paid in advance

NOTE No.3. Property, plant and equipment

Pre-operating expenses for the creation of the company will be amortized to five (5) years and the licenses to three (3) years.

50

Appraisal Report

For 2012 the company fulfilled its legal obligation to conduct appraisals in accordance with Article 64 of Decree 2649 of December 29, 1993. This Assessment was done to all the assets of the company by the Corporation of Professional Appraisers from Lonja PROLONJAS, thus giving us a detailed report of each asset as it is required by the standard.


Accumulated depreciation.

Accounting depreciation is applied with economic criteria but using the straight-line method and tax depreciation, seeking alternatives to alleviate tax payments in accordance with Colombian regulations, is applied. During 2009, depreciation was not applied because the company was in installation and commissioning.

NOTE No. 4. Intangibles - Rights

Intangibles - Rights are comprised of leasing machinery that the company has acquired through the years 2010 and 2011.



Report

52

NOTE No.5. Financial Obligations

NOTE No.6. Suppliers

NOTE No.7. Accounts Payable



Report


NOTE No.8. Income Received in advance

NOTE No.10. Capital

During the year 2012, the company declared and paid $ 800 million in dividends, from previous earnings according to the percentage share of each holder, which is as follows:

NOTE No.9. Liabiliy Estimates and Provisions

Legal ReserveThe company requires appropriating 10% of its net profits each year, until completing 50% of its subscribed capital.

In 2009, a value of $ 5,754,242 was obtained which constituted 10% of the legal reserve amounting to $ 575,424. In 2010 a value of $573.703.687 was obtained which constituted 10% of the legal reserve amounting to $57.370.369 and the rest was retained earnings. In 2011, a value of $349.789.392 was obtained which constituted 10% of the legal reserve amounting to $34.978.939 and the rest was retained earnings.

54

NOTE No.11. Income

NOTE No.12. Cost of Sales

NOTE No.13. Administrative Expenses

Operating revenues are broken down as follows:

Administrative expenses are broken down as follows:

Los Gastos de Administración se descomponen de la siguiente forma:




Report

NOTE No.13. Selling Expenses

NOTE No.14. Other non-operating income and expenses

56

TAXES

INCOME

The Company calculates its income tax for 2012 on the basis of taxable income.

SALES TAX

The Company is registered in the Registry of Responsible for Value Added Tax (IVA) filing IVA generated and rediscountable in its Taxes on Sales Payable Account, with its Joint Regime, Exporter, National Seller and Producer status, for 2011 the DIAN was asked to refund IVA worth $ 101,010,000 and for 2012 the value was $98.000.000

INDUSTRY AND TRADE

Stating its productive stage in November 2009, Coffee Company La Meseta SA, as a new company, and to comply with the requirements of Articles 394- 395- 397- 402- 403 of Accord No. 037 December 2008 of Chinchiná, through Resolution 293 of April 30, 2010 is granted 100% exemption from industry for and commerce tax for the first ten years of work (through 2020)

IMPACT OF RECENT REFORMS

1. Wealth Tax

It was created on a temporary basis and as an aid to the flood emergency, during the fiscal years of 2011-2014. It was established in 1% of the liquid assets to January 1, 2011, payable in 6 installments, two per year. This tax cannot be treated as an expense in the income tax, but it can be charge to Equity Revaluation Account if any, without affecting the results of the exersice. In 2011, the first two installments were paid, totaling $ 3,452,000.

2. Presumptive Income

The tax rate applicable to the presumptive income from the year 2008 has been reduced from 6% to 3%.

3. Transfer-Pricing

For purposes of applying the transfer pricing regime transfers will be carried out with related parties or parties abroad. The 2003 reform is clear that you can apply the transfer-pricing regime to "related parties" that are not linked.




Report

w w w . l a m e s e t a . c o m . c o

NIT. 900298861-9 Large Taxpayers

Street 5 # 6-30 Trilladora La Meseta Chinchiná Caldas, ColombiaPhone. (57+6) 840 2030 [email protected]


C o f f e e t o t h e w o r l d

Date post:	09-Mar-2016
Category:	Documents
Upload:	wladimir-giraldo-velasquez
View:	215 times
Download:	0 times

La Meseta Management Report 2012

Documents