IMPSA S.A. — Interim / Quarterly Report 2002

Oct 8, 2002

Industrias Metalúrgicas Pescarmona B.V.

Amsterdam

Quarterly report as at March 31, 2002

Industrias Metalúrgicas Pescarmona B.V.

Table of contents: page

Quarterly report as at March 31, 2002

Report of the management 3

Accounts

Balance sheet as at March 31, 2002 4

Profit and loss account as at March 31, 2002 5

Notes to the accounts as at March 31, 2002 6

Other information

Appropriation of results 10

Review report 11

Industrias Metalúrgicas Pescarmona B.V.

Report of the management

The management herewith presents to the shareholder the accounts of Industrias Metalúrgicas Pescarmona B.V. (hereinafter: “the Company”) as at March 31, 2002.

General

The Company is a limited liability company incorporated under the laws of The Netherlands and acts as a holding company.

Overview of activities

During the year the Company did not star up new activities.

Results

The net asset value of the Company as at 31 March 2002 amounts to EUR 8.522.271 (2001: EUR 8.533.421).

The result for the period January 1, 2002, up to March 31, 2002 amounts to a loss of EUR 11.150 (2001: EUR 75.095 loss)

Future outlook

The management is of the opinion that the present level of activities will be maintained during the next financial year.

Amsterdam, May 2002

Directors

E.M. Pescarmona G.F. Rossi

J.C. Fernández MeesPierson Trust B.V.

F.V. Valenti

Industrias Metalúrgicas Pescarmona B.V.

Balance sheet as at March 31, 2002

(Before the proposed appropriation of the result and expressed in euro´s)

Notes 31-03-2002 31-12-2001

Fixed assets

Financial fixed assets

Interests in group entities 1 8.627.266 8.627.266

Total fixed assets 8.627.266 8.627.266

Current assets

Cash and banks 2 (16) (381)

Total current assets (16) (381)

Current liabilities (due within one year)

Amounts due to group entities 3 43.535 32.535

Accruals and deferred income 4 61.444 60.929

Total current liabilities 104.979 93.464

Current assets less current liabilities (104.995) (93.845)

Net asset value 8.522.271 8.533.421

========== ==========

Capital and reserves 5

Paid-up and called up share capital 18.250 18.250

Share premium account 8.626.481 8.626.481

Other reserves (111.310) (36.215)

Unappropriated results (11.150) (75.095)

Total shareholders` equity 8.522.271 8.533.421

========== ==========

The accompanying notes form an integral part of these financial statements.

Industrias Metalúrgicas Pescarmona B.V.

Profit and loss account as at March 31, 2002

Notes 31-03-2002 31-12-2001

(Expressed in euro´s)

Other financial income and expenses

Other interest income 6 - 38

Other interest charges 7 (6) -

Total other financial income and expenses (6) 38

Other income and expenses

General and administrative expenses 8 (11.144) (75.133)

Total other income and expenses (11.144) (75.133)

Result before taxation (11.150) (75.095)

Corporate income tax - -

Result after taxation (11.150) (75.095)

========== ==========

The accompanying notes form an integral part of these financial statements.

Industrias Metalúrgicas Pescarmona B.V.

Notes to the accounts for the period ended March 31 2002

General

The company was incorporated as a limited liability company under the laws of The Netherlands on 22 October 1999 and has its statutory seat in Amsterdam. The ultimate holding company is Industrias Metalurgicas Pescarmona Sociedad Anonima Industrial Comercial Y. Financiera, Argentina.

The principal activity of the Company is to act as a holding company.

Basis of presentation

The accompanying accounts have been prepared in accordance with accounting principles generally accepted in The Netherlands, the most significant of which are as follows:

1. Financial fixed assets

Interests in group entities are valued at historical cost. Permanent impairment of cost price with net asset value will lead to a diminution in value to this lower market value.

1. Foreign currencies

Other assets and liabilities in foreign currencies are translated into euro´s at their exchange rates prevailing on the balance sheet date. Transactions in foreign currencies are translated into euro´s at the exchange rates in effect at the time of the transactions. The resulting currency exchange rate differences are taken to the profit and loss account.

The exchange rates used in the annual accounts are: 31.03.2002 31.12.2001

US dollar 1.14679 1.13314

1. Assets and liabilities

All other assets and liabilities are shown at face value, unless stated otherwise in the notes.

1. Consolidation

In conformity with article 408, Book 2 of the Dutch Civil Code, the Company does not prepare consolidated annual accounts. The annual accounts of the Company and its subsidiaries are included in the consolidated accounts of the ultimate holding company, which are filed with the Chamber of Commerce in Amsterdam.

1. Recognition of income

Dividens from group entitites are recorded as income when received. Other income and expenses, including taxation, are recognised and reported on accrual basis.

1. Corporate income tax

Provisions for taxation have been made in accordance with the standard ruling practice for holding companies in The Netherlands. Final corporate income tax assessments have been received for the financial years through 2000.

Industrias Metalúrgicas Pescarmona B.V.

31-03-2002 31-12-2001

EUR EUR

Balance sheet

1 Interests in group entities

Name Domicile Owned

CBK Power Company LTD Philippines 97% 785 785

Capital contribution for the amount of USD 7.621.496,22

dated December 27, 2001 8.626.481 8.626.481

8.627.266 8.627.266

=========== ==========

The Company has made use of article 389.9, Book 2 of the Dutch Civil Code. The subsidiaries are valued at cost since the Company is considered to be an intermediate holding company, which has no control over its subsidiaries.

Movements in the interests in group entities have been as follows:

Balance as per 1 January 8.627.266

Acquisitions -

Disposals -

Write down of book value -

Balance as per 31 March 8.627.266

==========

The net asset value per group entity is:

Name

CBK Power Company LTD 27.711.853 25.151.421

27.711.853 25.151.421

=========== ==========

2 Cash and banks

Current account (16) (381)

(16) (381)

=========== ==========

3 Amounts due to group entities

Intercompany account shareholder 43.535 32.535

43.535 32.535

=========== ==========

4 Accruals and deferred income

Accruals 61.444 60.929

61.444 60.929

=========== ==========

Industrias Metalúrgicas Pescarmona B.V.

Notes 31-03-2002 31-12-2001

EUR EUR

5 Capital and reserves

The authorised share capital of the Company amounts to EUR 90,760 divided into 9.076 shares of EUR 10 each. Issued and paid up are 1.825 shares of EUR 10.

	Share capital		Share premium		Other reserves		Unappr.results
Balance as per 01.01.2001	18.250		-		(36.215)		-
Paid-in / (repaid)			8.626.481
Transfer
Dividend
Result for the period							(75.095)
Balance as per 01.01.2002	18.250		8.626.481		(36.215)		(75.095)
Paid-in / (repaid)
Transfer					(75.095)		75.095
Dividend
Result for the period							(11.150)
Balance as per 31.03.2002	18.250		8.626.481		(111.310)		(11.150)

Promise of future contributions

Subject to the terms and conditions of the Agreement of Limited Partnership by and among CBK Power Corporation, EME Kalayaan B.V., EME Caliraya B.V., Industrias Metalurgicas Pescarmona B.V. and Corporación Impsa B.V. the company currently has undertaken a promise to contribute approximately $33.84 million to the Partnership during 2002 in the manner and according to the structure set forth in the agreement.

Industrias Metalúrgicas Pescarmona B.V.

31-03-2002 31-12-2001

EUR EUR

Profit and loss account

6 Other interest income

Bank interest on current accounts - 38

• 38

=========== ==========

7 Other interest charges

Interest on bank overdrafts 6 -

6 -

=========== ==========

8 General and administrative expenses

Management and administration fees 5.817 16.644

Legal advice 1.050 2.857

Tax advice 2.380 1.281

Auditors 1.620 6.480

Bank charges 130 254

Capital tax - 47.446

General expenses 147 171

11.144 75.133

=========== ==========

Staff numbers and employment costs

The Company has no employees and hence incurred no wages, salaries or related social security charges during the reporting period, nor during the previous year.

Directors

The Company has five (previous year: five) managing directors.

The Company has no (previous year: none) supervisory directors.

Amsterdam, May 2002

Directors

E.M. Pescarmona G.F. Rossi

J.C. Fernández MeesPierson Trust B.V.

F.R. Valenti

Industrias Metalúrgicas Pescarmona B.V.

Other information

Appropriation of results

Subject to the provisions under Dutch law that no dividends can be declared until all losses have been recovered, other reserves and unappropriated results are at the disposal of the shareholder in accordance with the Company´s articles of association.

Furthermore, Dutch law prescribes that any profit distribution may only be made to the extent that the shareholder´s equity exceeds the amount of the issued capital and other reserves.

The management proposes to the shareholder to add the result for the year to the other reserves.

Deloitte

& Touche

To the directors of

Industrias Metalúrgicas Pescarmona B.V.

Date Reference

May 16, 2002 E.R. Termaten

Review report

Introduction

In accordance with your instructions, we have reviewed the financial statements of Industrias Metalúrgicas Pescarmona B.V. at Amsterdam for the three months period ended March 31, 2002. These financial statements are the responsibility of the company`s management. Our responsibility is to issue a report on these statements based on our review.

Scope

We conducted our review in accordance with generally accepted standards for review engagements in the Netherlands. These standards require that we plan and perform review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of representatives of the company and analytical procedures applied to financial data and therefore provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Opinion

Based on our review, nothing has come to our attention that causes us to believe that the financial statements do not give a true and fair view in accordance with accounting principles generally accepted in the Netherlands.