ACCOUNTS - Final Accounts preparation

Operating loss

The operating loss is stated after charging:

PARAGUAY ENERGY DISTRIBUCIÓN LIMITED - Company Information

Caseware UK (AP4) 2021.0.152 2021.0.152 2019-12-312019-12-312019-01-01falseNo description of principal activity00truefalse 520095 2019-01-01 2019-12-31 520095 2018-01-01 2018-12-31 520095 2019-12-31 520095 2018-12-31 520095 2018-01-01 520095 c:PriorPeriodIncreaseDecrease 2019-01-01 2019-12-31 520095 c:RestatedAmount 2018-12-31 520095 c:Exceptional 2019-01-01 2019-12-31 520095 c:Exceptional 2018-01-01 2018-12-31 520095 d:CompanySecretary1 2019-01-01 2019-12-31 520095 d:Director1 2019-01-01 2019-12-31 520095 d:Director1 2019-12-31 520095 d:Director2 2019-01-01 2019-12-31 520095 d:Director2 2019-12-31 520095 d:Director3 2019-01-01 2019-12-31 520095 d:Director3 2019-12-31 520095 d:Director4 2019-01-01 2019-12-31 520095 d:Director4 2019-12-31 520095 d:Director5 2019-01-01 2019-12-31 520095 d:Director5 2019-12-31 520095 d:Director6 2019-01-01 2019-12-31 520095 d:Director6 2019-12-31 520095 d:RegisteredOffice 2019-01-01 2019-12-31 520095 c:CurrentFinancialInstruments 2019-12-31 520095 c:CurrentFinancialInstruments 2018-12-31 520095 c:Non-currentFinancialInstruments 2019-12-31 520095 c:Non-currentFinancialInstruments 2018-12-31 520095 c:CurrentFinancialInstruments c:WithinOneYear 2019-12-31 520095 c:CurrentFinancialInstruments c:WithinOneYear 2018-12-31 520095 c:ShareCapital 2019-01-01 2019-12-31 520095 c:ShareCapital 2019-12-31 520095 c:ShareCapital 2018-01-01 2018-12-31 520095 c:ShareCapital 2018-12-31 520095 c:ShareCapital 2018-01-01 520095 c:SharePremium 2019-01-01 2019-12-31 520095 c:SharePremium 2019-12-31 520095 c:SharePremium c:PriorPeriodIncreaseDecrease 2019-01-01 2019-12-31 520095 c:SharePremium 2018-01-01 2018-12-31 520095 c:SharePremium 2018-12-31 520095 c:SharePremium c:RestatedAmount 2018-12-31 520095 c:SharePremium 2018-01-01 520095 c:RetainedEarningsAccumulatedLosses 2019-01-01 2019-12-31 520095 c:RetainedEarningsAccumulatedLosses 2019-12-31 520095 c:RetainedEarningsAccumulatedLosses c:PriorPeriodIncreaseDecrease 2019-01-01 2019-12-31 520095 c:RetainedEarningsAccumulatedLosses 2018-01-01 2018-12-31 520095 c:RetainedEarningsAccumulatedLosses 2018-12-31 520095 c:RetainedEarningsAccumulatedLosses c:RestatedAmount 2018-12-31 520095 c:RetainedEarningsAccumulatedLosses 2018-01-01 520095 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2019-01-01 2019-12-31 520095 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2019-12-31 520095 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2018-12-31 520095 d:OrdinaryShareClass1 2019-01-01 2019-12-31 520095 d:OrdinaryShareClass1 2019-12-31 520095 d:OrdinaryShareClass1 2018-12-31 520095 d:FRS102 2019-01-01 2019-12-31 520095 d:Audited 2019-01-01 2019-12-31 520095 d:FullAccounts 2019-01-01 2019-12-31 520095 d:PrivateLimitedCompanyLtd 2019-01-01 2019-12-31 520095 c:Subsidiary1 2019-01-01 2019-12-31 520095 c:Subsidiary1 1 2019-01-01 2019-12-31 520095 c:Subsidiary2 2019-01-01 2019-12-31 520095 c:Subsidiary2 1 2019-01-01 2019-12-31 520095 4 2019-01-01 2019-12-31 520095 6 2019-01-01 2019-12-31 xbrli:shares iso4217:GBP xbrli:pure

Company registration number: 520095

	DIRECTORS' REPORT AND FINANCIAL STATEMENTS
	FOR THE YEAR ENDED 31 DECEMBER 2019

	PARAGUAY ENERGY DISTRIBUCION LIMITED


PARAGUAY ENERGY DISTRIBUCION LIMITED

COMPANY INFORMATION

Directors	Augustin David Alonso Zapag (appointed 8 March 2019)
	Blas Abraham Zapag Peralta (appointed 8 March 2019)
	Nadua Maria Zapag Peralta (appointed 8 March 2019)


Company secretary	Intertrust (UK) Limited


Registered number	520095


Registered office	1 Bartholomew Lane
	London
	EC2N 2AX


Independent auditors	Menzies LLP
	Chartered Accountants & Statutory Auditor
	Lynton House
	7-12 Tavistock Square
	London
	WC1H 9LT


PARAGUAY ENERGY DISTRIBUCION LIMITED

CONTENTS

	Page
Directors' report	1 - 2
Independent auditors' report	3 - 5
Statement of comprehensive income	6
Statement of financial position	7
Statement of changes in equity	8
Notes to the financial statements	9 - 15


PARAGUAY ENERGY DISTRIBUCION LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2019

The Directors present their report and the financial statements for the year ended 31 December 2019.

Directors' responsibilities statement

The Directors are responsible for preparing the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the Directors are required to:

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgements and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Directors

The Directors who served during the year were:

Augustin David Alonso Zapag (appointed 8 March 2019)

Blas Abraham Zapag Peralta (appointed 8 March 2019)

Nadua Maria Zapag Peralta (appointed 8 March 2019)

Herbert Luiz de Araujo Guimaraes (resigned 8 March 2019)

Marco Antonio Costa Tritto (resigned 8 March 2019)

Saulo Pereira Da Silva Marques (resigned 8 March 2019)

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:

∙so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditors, Menzies LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 1


PARAGUAY ENERGY DISTRIBUCION LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2019

Small companies note

In preparing this report, the Directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

Blas Abraham Zapag Peralta

Director

Date: 16 August 2022

Page 2


PARAGUAY ENERGY DISTRIBUCION LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARAGUAY ENERGY DISTRIBUCION LIMITED

Qualified opinion

We have audited the financial statements of Paraguay Energy Distribucion Limited (the 'Company') for the year ended 31 December 2019, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 December 2019 and of its loss for the year then ended; and

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.

In our opinion, except for the matter described in the basis for qualified opinion section of our report, the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified opinion

The Company heads up a medium group and therefore is required to prepare consolidated financial statements under s399 of the Companies Act 2006. The Company has not prepared consolidated financial statements which include the Company and its subsidiaries and are unable to take the exemption from preparing said consolidated financial statements under s401 of the Companies Act 2006.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard 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 qualified opinion.

Conclusions related to going concern

We draw attention to note 2.2 to the financial statements which explains that the financial statements have not been prepared on the going concern basis for the reasons set out in that note. Our opinion is not modified in respect of this matter.

Page 3


PARAGUAY ENERGY DISTRIBUCION LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARAGUAY ENERGY DISTRIBUCION LIMITED (CONTINUED)

Other information

The Directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

Except for the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Directors' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of Directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 1, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 4


PARAGUAY ENERGY DISTRIBUCION LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARAGUAY ENERGY DISTRIBUCION LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Ralph Mitchison FCA (Senior statutory auditor)

for and on behalf of

Menzies LLP

Chartered Accountants

Statutory Auditor

Lynton House

7-12 Tavistock Square

London

WC1H 9LT

16 August 2022

Page 5


PARAGUAY ENERGY DISTRIBUCION LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2019

		As restated
	2019	2018
Note	$000	$000


Administrative expenses		(255)	(445)
Exceptional administrative expenses	7	-	(5,468)
Operating loss	4	(255)	(5,913)
Income from shares in group undertakings		-	608
Loss before tax		(255)	(5,305)
Tax on loss		-	(118)
Loss for the financial year		(255)	(5,423)

There was no other comprehensive income for 2019 (2018:$000NIL).

The notes on pages 9 to 15 form part of these financial statements.

Page 6


PARAGUAY ENERGY DISTRIBUCION LIMITED REGISTERED NUMBER:520095

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2019

		As restated
	2019	2018
Note	$000	$000

Fixed assets
Investments	8		37,940		37,940
			37,940		37,940
Current assets
Debtors: amounts falling due after more than one year	9	776		868
Debtors: amounts falling due within one year	9	817		974
Bank and cash balances		269		310
		1,862		2,152
Creditors: amounts falling due within one year	10	(108)		(137)
Net current assets			1,754		2,015
Total assets less current liabilities			39,694		39,955
Provisions for liabilities
Other provisions	11	(5,601)		(5,607)
			(5,601)		(5,607)
Net assets			34,093		34,348

Capital and reserves
Called up share capital	12	5,330	5,330
Share premium account	13	8,227	8,227
Profit and loss account	13	20,536	20,791
		34,093	34,348

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Blas Abraham Zapag Peralta

Director

Date: 16 August 2022

The notes on pages 9 to 15 form part of these financial statements.

Page 7


PARAGUAY ENERGY DISTRIBUCION LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2019

	Called up share capital	Share premium account	Profit and loss account	Total equity
	$000	$000	$000	$000
At 1 January 2018	5,330	8,227	26,214	39,771

Loss for the year	-	-	(5,423)	(5,423)
Total comprehensive income for the year	-	-	(5,423)	(5,423)

At 1 January 2019 (as previously stated)	5,330	8,227	26,259	39,816
Prior year adjustment	-	-	(5,468)	(5,468)
At 1 January 2019 (as restated)	5,330	8,227	20,791	34,348

Loss for the year	-	-	(255)	(255)
Total comprehensive income for the year	-	-	(255)	(255)
At 31 December 2019	5,330	8,227	20,536	34,093

The notes on pages 9 to 15 form part of these financial statements.

Page 8


PARAGUAY ENERGY DISTRIBUCION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

1.	General information

Paraguay Energy Distribución Limited is a private company limited by shares and incorporated in England & Wales under the Companies Act 2006. The address of the registered office is given on the Company Information page.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Going concern

Due to a change of ownership of the company in 2019 (as explained in note 17), the new directors took the decision of changing the corporate structure and have the intention to liquidate the company in the future. Accordingly the directors have not prepared the financial statements on a going concern basis. This change has not resulted in any material impact on the presentation and disclosures in the financial statements when compared to the that which would have been applied under the going concern assertion.

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is USD.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

2.4

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Page 9


PARAGUAY ENERGY DISTRIBUCION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

2.Accounting policies (continued)

2.5

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.7

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

2.8

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Impairment of investments in subsidiaries
Determining whether or not the Company’s investments in its subsidiaries have been impaired requires estimations of the value in use of the investments. The value in use calculation requires the Company to estimate the future cash flows expected to arise from the subsidiaries and suitable discount rates in order to calculate the present value. The carrying amount of the investments in subsidiaries at the reporting date was $37,940,000 (2018 - $37,940,000) with no impairment loss recognised in the current of prior year.
Provisions and contingent liabilities
The Company reviews estimates of provisions for potential liabilities at the end of each reporting period where applicable, taking into account the circumstances of the potential liability, the availability and confidence of information used to calculate the potential liability and, where applicable, past history regarding the actual liability incurred in similar situations.

Page 10


PARAGUAY ENERGY DISTRIBUCION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

Exchange differences

149

5.	Auditors' remuneration
		2019	2018
		$000	$000

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements

Employees

The Company has no employees other than the Directors, who did not receive any remuneration (2018 - $NIL).

	Legal claim provision	-	5,468
		-	5,468

8.	Fixed asset investments

		Investments in subsidiary companies
		$000
	Cost or valuation
	At 1 January 2019	37,940
	At 31 December 2019	37,940

Page 11


PARAGUAY ENERGY DISTRIBUCION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Registered office	Class of shares	Holding

	Petrobras Paraguay Operaciones y Logistica S.R.L.	Avenida San Martín 763 c/ Lillo. Edif. Nextar. Casilla de correo 1813 - Asunción, Paraguay	Ordinary	100%
	Petrobras Paraguay Gas S.R.L.	Avenida San Martín 763 c/ Lillo. Edif. Nextar. Casilla de correo 1813 - Asunción, Paraguay	Ordinary	100%

Page 12


PARAGUAY ENERGY DISTRIBUCION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

9.	Debtors
		2019	2018
		$000	$000

Due after more than one year
Other debtors	776	868
	776	868

Other debtors primarily consist of VAT recoverable from tax authorities in Paraguay which the company expects to recover through future operations after all the assets and liabilities of the Company have been transferred to Petrobras Paraguay Operaciones y Logistica S.R.L. or another entity.

					2019	2018
					$000	$000

Due within one year
Other debtors	817	974
	817	974

10.	Creditors: Amounts falling due within one year
		2019	2018
		$000	$000

Trade creditors	44	33
Other creditors	10	52
Accruals and deferred income	54	52
	108	137

11.	Provisions

		Legal provision
		$000

	At 1 January 2019	5,607
	Charged to profit or loss	(6)
	At 31 December 2019	5,601

The legal provision relates to a dispute with a customer to which a settlement has been agreed.

Page 13


PARAGUAY ENERGY DISTRIBUCION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

12.	Share capital
		2019	2018
		$000	$000

Allotted, called up and fully paid

3,650,000 (2018 - 3,650,000) Ordinary Shares shares of £1.00 each	5,330	5,330

13.

Reserves

Share premium account

The share premium account includes the premium on the issue of equity shares, net of any issue costs.

Profit and loss account

The profit and loss account represents the cumulative profit and losses, net of dividends and other adjustments.

14.	Prior year adjustment

The adjustment in relation to the prior year is for a legal claim which was notified prior to the previous year financial statements being approved. The impact was an expense of $5,468k in the previous period to increase the provisions in the statement of financial position by the same amount.

15.	Contingent liabilities

The company was inspected by SET (Paraguayan HMRC) which concluded with a report whereby SET determined that the Company owed income tax of PYG 4,948,355,000 ($830,241). However, after several instances of appeal by the Company, SET has modified the amount of the claim to PYG 868,794,406 ($145,767). The Company is still appealing this amount.
The Company maintains a lawsuit with the customs broker Luis Fernando Robledo Perrupato, who is claiming the amount of PYG 329,455,579 ($55,276) in respect of fees allegedly unpaid.
The directors are of a view that the appropriate provision has been made, where necessary, in respect of all known potential liabilities.

16.	Related party transactions
	The Company has taken advantage of the exemption conferred by FRS 102 paragraph 33.1, not to disclose transactions with other entities where 100% of voting rights are controlled by the company.

Page 14


PARAGUAY ENERGY DISTRIBUCION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

17.	Controlling party

Until 8 March 2019, the Company was a subsidiary undertaking of Petrobras International Braspetro B.V.. On the same day, 100% of the issued share capital of the Company was acquired by Paraguay Energy S.A. which is the immediate parent company incorporated in Paraguay.
Until 8 March 2019, the ultimate parent entity was Petróleo Brasileiro S.A.. From this date the ultimate parent entity is Copetrol S.A. There is not considered to be one ultimate controlling party.

Page 15