A N N U A L R E P O R T A N D A C C O U N T S - CMVM

Notes to the Financial Statements as at 31 st December 2008
1 - INTRODUCTORY NOTE
TEIXEIRA DUARTE - ENGENHARIA E CONSTRUÇÕES, S.A.
NOTES TO THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2008
(AMOUNTS IN THOUSANDS OF EUROS)
Teixeira Duarte - Engenharia e Construções, S.A. ("Teixeira Duarte" or "Company"), a public company with registered head office in Porto Salvo,
was incorporated on 4 th January 1934 and its core business is Civil Construction and Public Works.
The attached financial statements refer to the Company on an individual basis, with financial investments having been accounted for using the
equity method, as explained in note 3 c), herein.
The Company shall prepare and present the consolidated financial statements separately, comprising the financial statements of the companies
managed by the former.
The notes below follow the sequential order defined in the Official Accounting Plan for the presentation of individual financial statements. The
notes that are not numbered herein are not applicable to the Company, or their presentation is not relevant for interpreting the attached financial
statements.
3 - BASIS OF PRESENTATION AND MAIN VALUATION CRITERIA
The attached financial statements have been prepared on a going concern basis, from the Company’s accounting books and records, kept in
accordance with the Portuguese generally accepted accounting principles.
These financial statements reflect the Company’s individual accounts, prepared under the legal terms to be approved at a General Meeting of
Shareholders. Although financial investments were accounted for using the equity method, which is in line with the generally accepted
accounting principles, these financial statements only include the effect of the consolidation of investee companies’ results and equity capital,
but do not include the effect of the full consolidation in terms of assets, liabilities, revenues and expenses.
As established in the Accounting Guideline No. 23/98, the company integrates all subsidiaries’ movements eliminating internal operations and,
if any, the results derived from them.
Note 16 displays the financial information regarding the companies of the Group and the associated companies.
The main valuation criteria used in the preparation of the attached financial statements were the following:
a) Intangible fixed assets
The intangible fixed assets refer to start-up costs associated with the incorporation of the Branch in Angola.
b) Tangible fixed assets
Depreciation is calculated on the historic or revaluated cost, from the year in which the assets were commissioned or the time they started
being used, in accordance with the straight-line method. The depreciation rates used correspond to the following estimated useful life:
Years of useful life
Buildings and other constructions 10
Plant and machinery 4 to 8
Transport equipment 4 to 7
Fixtures and fittings 4 to 7
Office equipment 3 to 10
Other tangible fixed assets 1
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