ROSSI RESIDENCIAL S.A.
Publicly-held Company
Corporate Taxpayer’s ID (CNPJ) 61.065.751/0001-80 - CVM Registry 16306 Company Registry (NIRE): 35.300.108.078
Minutes of the Board of Directors’ Meeting held on March 29, 2010
Date, Time and Place: March 29, 2010, at 6:00 pm, at the Company’s headquarters, located at Avenida Major Sylvio de Magalhães Padilha, n° 5.200, Edifício Miami, Bloco C, Conjunto 31, in the city and state of São Paulo.
Attendance: The totality of the members of the Board of Directors.
Presiding Board: João Rossi Cuppoloni - Chairman, and Maria Regina Jimenez Eichenberger - Secretary.
Call Notice: The call was waived, pursuant to Article 16, sole paragraph of the Company’s Bylaws.
Decisions: The Board members, unanimously and without any reservations, resolved:
1) Approval of the financial statements for fiscal year 2009: the Board of Directors approved the Annual Report from the Management, the Balance Sheet and other Financial Statements and analyzed the Independent Auditors’ Report relative to the fiscal year ended December 31, 2009, which will be submitted for approval to the Annual Shareholders Meeting.
2) Approval of the allocation of net profit in fiscal year 2009: net profit in the
fiscal year ended December 31, 2009, was R$ 218,099,241.74 (two hundred and
eighteen million, ninety-nine thousand, two hundred and forty-one Reais and
seventy-four centavos). The Board of Directors’ members approved the
following allocation of net profit, subject to approval by shareholders at the next
Annual Shareholders Meeting: i) R$ 10,904,962.09 (ten million, nine hundred
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and four thousand, nine hundred sixty-two Reais and nine centavos) allocated to the Legal Reserve; ii) R$ 51,800,000.00 (fifty-one million, eight hundred thousand Reais) allocated to the payment of dividends. The aforementioned dividends originate from the profit account for fiscal year 2009, with no withholding of income tax, pursuant to applicable law, and encompass all 266,436,388 (two hundred and sixty-six million, four hundred thirty-six thousand, three hundred and eighty-eight) common book-entry shares issued that compose the Company’s capital stock, except for the 1,614,700 (one million, six hundred and fourteen thousand and seven hundred) common shares held in treasury; iii) approval of the withholding of the balance of net profit in the amount of R$ 155,394,279.65 (one hundred and fifty-five million, three hundred and ninety-four thousand, two hundred and seventy-nine Reais and sixty-five centavos) which will be allocated towards the execution of the capital budget; iv) R$ 3,549,577.89 (three million, five hundred and forty-nine thousand, five hundred and seventy-seven Reais and eighty-nine centavos) allocated by the Board of Directors for the payment of profit sharing to the Company’s executive officers.
3) Approval of the capital budget prepared in accordance with the appendix, which is an integral part of these minutes.
4) Approval, pursuant to CVM Instructions 273 of August 20, 1998, and 371, of June 27, 2002, of the Management Proposal to maintain in the financial statements for the fiscal year ended December 31, 2009, the amount of R$
15,745,796.90 (fifteen million, seven hundred and forty-five thousand, seven hundred and ninety-six Reais and ninety centavos) recognized under Deferred Fiscal Asset, arising from tax losses, due to expectations of sufficient future taxable income to ensure the realization of said asset, pursuant to Annex 2 of these Minutes.
Closure: There being no further business to address, the meeting was adjourned for the drawing up of these minutes, which were approved and signed by the Board members present.
Members Present: (sd) João Rossi Cuppoloni, Edmundo Rossi Cuppoloni,
Rafael Rossi Cuppoloni, Sérgio Pedroso Rossi Cuppoloni and Eduardo Alfredo Levy Júnior.
This is a free English version of the original instrument in the company's records.
São Paulo, March 29, 2010.
João Rossi Cuppoloni
ChairmanMaria Regina Jimenez Eichenberger
Secretary4
Origin and Capital utilization 2010 2011 2012 Accrued
Initial Balance - December 31 970,872 942,319 1,263,977 970,872
Cash Generation of ongoing developments 577,675 840,755 577,116 1,995,545
Cash Generarion of future developments (239,467) (232,665) 317,607 (154,525)
Administrative Expenses (141,180) (148,940) (161,691) (451,811)
197,028
459,149 733,033 1,389,210
Loans Amortization (155,297) (137,491) (215,430) (508,218)
Dividends Payment and PPR (70,285) - - (70,285)
Final Balance 942,319 1,263,977 1,781,579 1,781,579
Cash Reserve (minimum)
(750,000)
(1,200,000) (1,100,000) (750,000)
(1,200,000) (1,100,000)
Incremental Cash 192,319 63,977 681,579
CAPITAL BUDGET - 2010 to 2012
Rossi Residencial S.A.
Corporate Taxpayer’s ID (CNPJ) 61.065.751/0001-80 in Thousand R$
MANAGEMENT PROPOSAL
Rossi Residencial S/A and its Subsidiaries
Pursuant to CVM Instructions 273 of August 20, 1998, and 371 of June 27, 2002, we hereby present this technical study to justify the continued recognition of the Deferred Fiscal Assets arising from tax losses, due to expectations of sufficient future taxable income to ensure the realization of said asset.
On December 31, 2009, Deferred Fiscal Assets on tax losses of the following subsidiaries was constituted:
Adiantum Empreendimentos S/A Afelandra Empreendimentos S/A Alpen Haus Negócios Imobiliários S/A Brassica Empreendimentos S/A Campainha Empreendimentos S/A Cariniana Empreendimentos S/A Catarantus Empreendimentos S/A Celebrity Icaraí Negócios Imob. Ltda
Clarquia Empreendimentos Imobiliários Ltda Damacena Empreendimentos S/A
Diantus Empreendimentos S/A Equinacia Empreendimentos S/A Galeria Boulevard Negócios Imob. S/A
6 Gestia Empreendimentos S/A
Guaraná Empreendimentos S/A Linania Empreendimentos S/A Manêtia Empreendimentos S/A Marianinha Empreendimentos S/A Nicotiana Empreendimentos Imob. Ltda Orquídea Incorporadora Ltda
Pervinca Empreendimentos S/A Pumila Empreendimentos S/A Rossi Morumbi Incorporadora S/A
Santa Priscila Empreendimentos Imobiliários Ltda Tulipa Incorporadora Ltda
Vila Flora Hortolândia Emp. Imob. Ltda Evaluation of the conditions
The evaluation regarding the continued recognition of this item was based on these subsidiaries’ historical profitability and expectations of future taxable income, pursuant to article 2 of CVM Instruction 371.
A breakdown of the subsidiaries’ historical profitability (taxable income/loss) in the last three years and the amounts receivable from the units sold on December 31, 2009 is shown below:
Values in Reais (R$)
2007 2008 2009
Adiantum Empreendimentos S/A (1,774,511) 176,528 1,000,818 30,466,263
Afelandra Empreendimentos S/A - (2,762,024) (336,135) 16,173,881
Alpen Haus Negócios Imobiliários S/A (205,694) (286,866) (645,191) 8,119,676 Brassica Empreendimentos S/A (2,875,219) (1,347,828) 166,159 49,001,378
Campainha Empreendimentos S/A - (613,383) 527,496 21,763,037
Cariniana Empreendimentos S/A - (1,366,699) 25,446 22,373,253
Catarantus Empreendimentos S/A - (1,804,857) (1,028,693) 11,640,908 Celebrity Icaraí Negócios Imob. Ltda (229,155) (24,598) (1,114,243) 56,962,672 Clarquia Empreendimentos Imobiliários Ltda (650,003) (807,558) 5,351 16,182,649 Damacena Empreendimentos S/A - (2,982,348) (3,074,149) 23,365,458
Diantus Empreendimentos S/A - (2,745,809) (2,107,051) 36,378,368
Equinacia Empreendimentos S/A - (2,471,077) (685,566) 15,524,258
Galeria Boulevard Negócios Imob. S/A 1,707,917 3,551,242 2,506,874 54,034,295 Gestia Empreendimentos S/A (994,607) (185,216) (520,917) 19,214,218 Guaraná Empreendimentos S/A (1,998,461) (5,950) (638,107) 45,292,485
Linania Empreendimentos S/A - (3,451,515) (1,088,565) 59,617,777
Manêtia Empreendimentos S/A (946,910) 1,153,482 1,351,095 8,105,127 Marianinha Empreendimentos S/A (682,769) (5,241,505) 1,533,224 76,305,485 Nicotiana Empreendimentos Imob. Ltda - (796,467) (550,749) 6,941,680
Orquídea Incorporadora Ltda - (9,236,633) (9,216,997) 85,344,646
Pervinca Empreendimentos S/A - (1,599,368) (1,833,024) 21,739,356 Pumila Empreendimentos S/A (596,751) (1,076,795) (925,355) 13,116,019 Rossi Morumbi Incorporadora S/A - (4,722,165) (2,888,280) 50,998,474 Santa Priscila Empreendimentos Imobiliários Ltda - (1,355,062) (1,728,322) 16,712,147
Tulipa Incorporadora Ltda - (2,556,862) (2,925,111) 59,229,595
Vila Flora Hortolândia Emp. Imob. Ltda - (833,548) (2,235,283) 38,163,189 Income (Loss) - Accrued Receivables from
sold units in 12/31/09
Future taxable income
In order to calculate future taxable income, we considered financial flows of the units sold, in accordance with contractual conditions and the sale of the units in inventory, at the average sales pace of the respective projects at current list prices. Costs were estimated based on the projects’ budgeted costs.
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Empresa (SPE's)Limite de prejuízo a compensar Limite IRPJ/CSSL a compensar Lucro a tributar - já vendidos% já vendido Lucro a tributar - (100% vendido) IRPJ/CSSL a recolher - (antes da compensação)
IRPJ/CSSL a recolher - (após compensação) Adiantum Empreendimentos S/A1.421.307 483.244 8.288.623 92,8375%8.928.102 910.666 427.422 Afelandra Empreendimentos S/A2.762.024 939.088 6.289.276 63,0435%9.976.093 1.017.562 78.473 Alpen Haus Negócios Imobiliários S/A443.609 150.827 1.275.200 72,9167%1.748.846 178.382 27.555 Brassica Empreendimentos S/A5.302.223 1.802.756 14.093.967 51,1530%27.552.551 2.810.360 1.007.604 Campainha Empreendimentos S/A455.134 154.746 4.703.812 94,8718%4.958.072 505.723 350.978 Cariniana Empreendimentos S/A1.359.065 462.082 4.623.545 90,8333%5.090.141 519.194 57.112 Catarantus Empreendimentos S/A740.066 251.623 2.775.840 72,7273%3.816.780 389.312 137.689 Celebrity Icaraí Negócios Imob. Ltda308.771 104.982 14.259.850 94,6629%15.063.818 1.536.509 1.431.527 Clarquia Empreendimentos Imobiliários Ltda1.455.956 495.025 4.887.937 100,0000%4.887.937 498.570 3.545 Damacena Empreendimentos S/A2.984.211 1.014.632 9.359.023 56,0345%16.702.256 1.703.630 688.998 Diantus Empreendimentos S/A2.745.809 933.575 10.775.634 44,1420%24.411.289 2.489.952 1.556.377 Equinacia Empreendimentos S/A2.471.077 840.166 3.580.224 39,2045%9.132.166 931.481 91.315 Galeria Boulevard Negócios Imob. S/A1.259.377 428.188 17.470.831 98,8142%17.680.480 1.803.409 1.375.221 Gestia Empreendimentos S/A481.326 163.651 1.708.145 86,9792%1.963.855 200.313 36.662 Guaraná Empreendimentos S/A1.765.543 600.285 8.089.852 99,1749%8.157.156 832.030 231.745 Linania Empreendimentos S/A3.823.546 1.300.006 13.321.450 83,6283%15.929.353 1.624.794 324.788 Manêtia Empreendimentos S/A195.537 66.483 1.441.642 99,6241%1.447.082 147.602 81.120 Marianinha Empreendimentos S/A5.464.307 1.857.864 21.694.818 97,4684%22.258.319 2.270.349 412.484 Nicotiana Empreendimentos Imob. Ltda581.988 197.876 1.428.546 70,0000%2.040.780 208.160 10.284 Orquídea Incorporadora Ltda480.282 163.296 4.327.230 47,9426%9.025.859 920.638 757.342 Pervinca Empreendimentos S/A1.374.787 467.428 6.709.520 63,4146%10.580.397 1.079.201 611.773 Pumila Empreendimentos S/A794.689 270.194 3.009.545 82,6389%3.641.803 371.464 101.270 Rossi Morumbi Incorporadora S/A2.951.963 1.003.667 8.630.969 67,6829%12.752.063 1.300.710 297.043 Santa Priscila Empreendimentos Imobiliários Ltda1.355.062 460.721 3.470.140 46,2644%7.500.676 765.069 304.348 Tulipa Incorporadora Ltda2.438.070 828.944 12.595.474 85,5000%14.731.548 1.502.618 673.674 Vila Flora Hortolândia Emp. Imob. Ltda895.437 304.449 10.022.473 73,3434%13.665.138 1.393.844 1.089.395 46.311.167 15.745.797 198.833.567 273.642.560 27.911.541 12.165.744
Créditos fiscaisBase de cálculo tributávelImpostos a recolher - PROJETADO
Projeção do Lucro Tri bu táv el para Efei to de Reali zação do A ti vo Fi scal D ifer ido Em R eais (R$) B ase Dezembro/2009
Conclusion
Therefore, the projections show that these subsidiaries should record taxable income of R$ 273,642,559.94 in the coming years, sufficient to reaize the Deferred Fiscal Asset.
Based on the above, Management hereby submits for the approval of the Board of Directors a proposal to continue recognizing the Deferred Fiscal Asset, in the amount of R$ 15,745,796.90, in the financial statements for the fiscal year ended December 31, 2009.
São Paulo, March 12, 2010 MANAGEMENT
