CTC Centro de Tecnologia Canavieira S A : Dados Econômico-Financeiros

Individual and Consolidated Financial Statements

CTC - Centro de Tecnologia Canavieira S.A.

March 31, 2021

with Independent Auditor's Report

CTC - Centro de Tecnologia Canavieira S.A.
Individual and consolidated financial statements
March 31, 2021
Contents
Independent auditor's report on individual and consolidated financial statements	................................1
Statements of financial position............................................................................................................	6
Statements of income ..........................................................................................................................	8
Statements of comprehensive income .................................................................................................	9
Statements of changes in shareholders' equity ...................................................................................	10
Statements of cash flows - Indirect method........................................................................................	11
Statements of added value ................................................................................................................	12
Notes to individual and consolidated financial statements..................................................................	13

Edifício Trade Tower

Av. José de Souza Campos, 900 1º e 3º andares - Nova Campinas 13092-123 - Campinas - SP - Brasil

Tel: [phone]

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A free translation from Portuguese into English of Independent Auditor's Report on financial statements prepared in Brazilian currency in accordance with accounting practices adopted in Brazil and with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB)

Independent auditor's report on individual and consolidated financial statements

To the

Shareholders, Board of Directors and Officers of

CTC - Centro de Tecnologia Canavieira S.A.

Fazenda Santo Antonio, s/nº - Bloco 1 Bairro Santo Antonio

Piracicaba - SP

Opinion

We have audited the individual and consolidated financial statements of CTC - Centro de Tecnologia Canavieira S.A. ("Company"), identified as Individual and Consolidated, respectively, which comprise the statement of financial position as at March 31, 2021, and the statements of profit or loss, of comprehensive income, of changes in equity, and of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the individual and consolidated financial statements referred to above present fairly, in all material respects, the individual and consolidated financial position of the Company as at March 31, 2021, and its individual and consolidated financial performance and cash flows for the year then ended, in accordance with accounting practices adopted in Brazil and with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).

Basis for opinion

We conducted our audit in accordance with Brazilian and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the individual and consolidated financial statements section of our report. We are independent of the Company and its subsidiary in accordance with the relevant ethical principles set forth in the Code of Professional Ethics for Accountants and the professional standards issued by Brazil's National Association of State Boards of Accountancy (CFC), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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Uma empresa-membro da Ernst & Young Global Limited

Key audit matters

Key audit matters are those that, in our professional judgment, were of most significance in our audit of the financial statements of the current year. These matters were addressed in the context of our audit of the individual and consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide an individual opinion on these matters. For the matter below, our description of how our audit addressed the matter, including any commentary on the findings or outcome of our procedures, is provided in that context.

We have fulfilled the responsibilities described in the Auditor's responsibilities for the audit of the individual and consolidated financial statements section of our report, including in relation to this matter. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matter below, provide the basis for our audit opinion on the accompanying financial statements.

Intangible assets from product development

The Company records disbursements incurred in connection with the development and improvement of new products as intangible assets. Determining the nature of the expenses that can be capitalized, in accordance with the requirements of applicable accounting standards, involves significant judgments by management, including commercial and technological feasibility, forecasting of the launch of the respective products, expected generation of revenues, and estimate of the useful life cycle. Given the significant judgments, as described above, the criteria for capitalization of expenses as intangible assets adopted by the Company were considered significant to our audit.

How our audit addressed the matter:

Our audit procedures included the following, among others: evaluation of the design and operational effectiveness of internal controls implemented by the Company on the accounting of intangible assets from product development; assessment of controls and criteria for classification of expenses with intangible assets; sample testing of additions of intangible assets to validate the existence and assess the nature of expenses and correct classification; and evaluation of management's analysis of the commercial and technological feasibility of the assets under development.

Based on the result of the audit procedures conducted, which is consistent with management's assessment, we consider that the criteria adopted by management for capitalization of expenses as intangible assets, as well as the respective disclosures in Notes 2 (g) and 13, are acceptable, in the context of the individual and consolidated financial statements taken as a whole.

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Other matters

Statements of value added

The individual and consolidated statements of value added (SVA) for year ended March 31, 2021, prepared under the responsibility of the Company management, and presented as supplementary information for purposes of IFRS, were submitted to audit procedures conducted together with the audit of the Company's financial statements. To form our opinion, we evaluated if these statements are reconciled to the financial statements and accounting records, as applicable, and if their form and content comply with the criteria defined by Accounting Pronouncement NBC TG 09 - Statement of Value Added. In our opinion, these statements of value added were prepared fairly, in all material respects, in accordance with the criteria defined in the abovementioned accounting pronouncement, and are consistent in relation to the individual and consolidated financial statements taken as a whole.

Audit of corresponding figures

The individual and consolidated financial statements for the year ended March 31, 2020, presented for comparison purposes, were audited by another independent auditor, who issued an audit report on June 19, 2020 containing an unmodified opinion thereon.

Other information accompanying the individual and consolidated financial statements and the auditor's report

Management is responsible for such other information, which comprises the Management Report.

Our opinion on the individual and consolidated financial statements does not cover the Management Report and we do not express any form of assurance conclusion thereon.

In connection with our audit of the individual and consolidated financial statements, our responsibility is to read the Management Report and, in doing so, consider whether this report is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of the Management Report, we are required to report that fact. We have nothing to report in this regard.

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