banif finance, ltd.

BANIF SGPS, S.A.LEGAL ACCOUNTS CERTIFICATE AND EXTERNAL AUDITOR’S REPORT(INDIVIDUAL ACCOUNTS)Introduction1. Under the terms of the relevant legislation, we are pleased to present the Legal Accounts Certificateand the External Auditor’s Report on the Management Report and Financial Statements attached forthe financial year ended 31 December 2003 of Banif SGPS, SA, which comprise the Balance Sheetas at 31 December 2003 (which records a total of 426,098 thousand euros and total shareholders’funds of 283,999 thousand euros, including a net result of 12,443 thousand euros), the IncomeStatement (by nature and by function) the statement of cash flows, and the corresponding notes to thefinancial statements.Responsibilities2. It is the responsibility of the Directors to:2.1. prepare the management report and the financial statements for the financial year which give atrue and fair view of the financial position of the Bank, the result of its operations and cashflows;2.2. to provide historic financial information, which shall be prepared in accordance with generallyaccepted accounting principles and which is complete, true, current, clear, objective and lawful,as required by the Securities Code;2.3. adopt appropriate accounting policies and criteria;2.4. maintain an appropriate system of internal control; and2.5. report any relevant occurrence which has influenced the company’s activities, state of affairsor results.3. It is our responsibility to check the financial information given in the financial statements referred toabove, and to ensure that it is complete, true, current, clear, objective and lawful, as required by theSecurities Code, and to express a professional and independent opinion on such information, on thebasis of our audit.Scope4. Our audit was performed in accordance with the Rules and Recommendations of the Chamber ofOfficial Auditors, and, on a supplementary basis, with International Audit Standards, which requirethat the audit be planned and performed in such a way as to give a reasonable assurance that thefinancial statements are free from, or that they are not free from, material misstatement. To this endour audit included:4.1. examination, on a test basis, of the evidence relevant to the amounts and disclosures in thefinancial statements and an assessment of estimates, based on judgements and criteria definedby the Directors, used in preparing the financial statements;4.2. an assessment of the suitability of the accounting policies adopted and disclosure of thesepolicies, taking the circumstances into account;4.3. an assessment of whether or not the going concern principle is applicable;4.4. an assessment of the overall adequacy of the presentation of information in the financialstatements; andF-28