TAP Real Estate Technologies Inc (RWAX)

[TenKay]

“They didn't really question its existence. Only that no document exists that shows a legal sale. Bit of a difference “

No, they said that no documentation or sufficient information was provided to even confirm the existence of the asset let alone its value.

That is pretty much the auditor questioning its existence.

Investment in Fertilizers

As presented in Explanatory Note No. 06, the Company has recorded investment in Fertilizers in the amount of R$4,546,406,680, equivalent to 97% of its equity. On April 17, 2023, the share capital was paid up through the assignment of fertilizer inventory, and the Company recorded the asset through an instrument of assignment of rights to the fertilizer inventory in the amount of R$4,662,406,680. We found that on January 13, 2017, a report was issued on the fertilizer inventory, attesting to a total volume of 3,906,181 m3. However, we did not receive appropriate and sufficient information or documentation to corroborate the main assumptions used and update of this volume, as well as the existence of this asset, therefore, it was not possible to measure the fair value of the asset on the base date. Additionally, it is worth noting that this fertilizer balance affects not only equity, but also other transactions backed by said inventory, such as the balance of 'Investments Payable' (Explanatory Note No. 09) and equity interests (Explanatory Note No. 07). Therefore, we cannot conclude whether any undetected distortions in the financial statements, if any, would be relevant and/or widespread, nor whether the disclosures presented in the explanatory notes are adequate or require supplementation.