Annual Report 2005 - Tenaris

Report of the Independent Auditors
To the Board of Directors and Shareholders
Confab Industrial S.A.
1. We have audited the balance sheets of Confab Industrial S.A. and the consolidated balance sheets
of Confab Industrial S.A. and its subsidiaries as of December 31, 2005 and 2004 and the related
statements of income, of changes in shareholders' equity and of changes in the financial position
of Confab Industrial S.A. and the corresponding statements of income and of changes in financial
position for the years then ended. These financial statements are the responsibility of the company's
management. Our responsibility is to express an opinion on these financial statements.
2. We conducted our audits in accordance with approved Brazilian auditing standards, which require
that we perform the audit to obtain reasonable assurance about whether the financial statements
are fairly presented in all material aspects. Accordingly, our work included, among other procedures:
(a) planning our audits taking into consideration the significance of balances and the accounting
and internal control systems of the companies, (b) examining, based on tests, evidence and records
supporting the amounts and disclosures in the financial statements, and (c) assessing the most
significant accounting principles and estimates used by the company's management, as well as
the overall presentation of the financial statements.
3. In our opinion the financial statements examined by us present fairly, in all material aspects,
the equity and financial position of Confab Industrial S.A. and Confab Industrial S.A. and its subsidiaries
on December 31, 2005 and 2004, and the results of the operations, the changes in shareholders'
equity and the changes in financial position of Confab Industrial S.A. for the years then
ended, as well as the changes in consolidated financial position for the years then ended, in compliance
with accounting practices adopted in Brazil.
4. We conducted our audits with the objective of presenting an opinion about the financial statements
referred to in the first paragraph, taken as a whole. The statement of cash flow, presented
in the attachment to provide supplementary information about the company, is not required as an
integral part of the financial statements. This statement of cash flow was submitted to the auditing
procedures described in the second paragraph and in our opinion fairly presents, in all material
aspects, the cash flow situation in relation to the overall presentation of the financial statements.
São Paulo, January 27, 2006
Independent Auditors
CRC 2SP000160/O–5
Paulo Cesar Estevão Netto
Accountant CRC 1RJ026365/O–8 "T" SP