LIDERCONTGROUP ACCOUNTANTS AND AUDITORS ASSOCIATES SAC.

AUDIT SERVICES PROPOSAL LETTER NO. 205

Ayacucho August 28, 2016

Gentlemen:
Gloria S.A. and Subsidiaries.
AV. Republica de panama N° 2461, Santa Catalina,
Lima - Peru

Attention:
ROBERT PRIDAY WOODWORTH
GENERAL MANAGER

Dear Sir:

In my capacity as an independent public accountant, I am pleased to offer you my

professional services to meet the company's needs related to the audit of the financial
statements as of December 31, 2015.

The main objective of the work will be to issue a professional opinion on the company's
financial statements (statement of financial position, income statement) and its
supplementary information. For the year ending on such date.

The examination for such purpose will be performed in accordance with the
professional auditing standards in force in Peru (ISAs). These require that the audit be
planned and performed to obtain reasonable assurance about whether the financial
statements are free of material misstatements and irregularities, and that they have been
prepared in accordance with international accounting standards in force in Peru.

An audit includes examining, on a test basis, relevant, valid and sufficient evidence
supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used for measurement and disclosure,
significant estimates made by management, and evaluating the overall financial
statement presentation.

In determining the scope of the audit procedures, special consideration shall be given to
the effectiveness of the company's internal control and information systems.
 LIDERCONTGROUP ACCOUNTANTS AND AUDITORS ASSOCIATES SAC.

Occasionally fraud may be discovered during an audit of financial statements, however,

an audit such as the one to be carried out is not primarily intended to find
embezzlements and irregularities, which, if found, will be reported in a timely manner.

The reports that I will issue as a result of the examination of the financial statements as
of December 31, 2015 will be as follows:
 Report (opinion) on the financial statements as of that date
 Letter of recommendations to management as a by-product of the work
performed.

The work will be carried out in the following stages: central office: AV. Republica de
panamá N° 2461, Santa Catalina, Lima Telf. 066-3800.

First stage: Audit risk analysis and preliminary audit planning, the action plan will be
developed considering mainly the following aspects:

 Determine audit objectives, including business risks.

 Establish and describe the procedures and tests on the internal control system.
 Perform the tests that allow to reach a conclusion on the control environment
and internal control system.
 Perform analytical reviews to detect significant variations in equity, financial
position and results.
 Consider the working papers that can be prepared by the company.
 Prepare the required confirmations to third parties.

Second stage: Audit tests and preparation of reports.

It will be carried out after the company has closed its accounting records for the audited
period and will consist of the following:

 Conduct substantive audit procedures based on the nature, scope and timing,
determined on the result of the analysis and evaluation of the audit risk.
 Review the fairness of the overall presentation of the financial statements.
 LIDERCONTGROUP ACCOUNTANTS AND AUDITORS ASSOCIATES SAC.

Considering the importance of the company's statements for the performance of the
audit service, I am released from any claim, liability and/or costs related to the
professional service covered by this letter agreement, due to any misinterpretation in the
letter of representation of the entity's direction, management or administration.

To carry out the work I will count on a team of professionals which I detail below.

N° POSITION SURNAME AND FIRST NAME

FOUNDING
1 PARTNER
2 SECRETARY
3 SUPERVISOR
4 TEAM LEADER
5 Senior I
6 Senior II
7 Senior III
8 Junior I
9 Junior II
CPC. SULCA LEON, Bither Smits
MEDRANO LOZANO, ROSMERY
Dr. MARTINEZ ZEA, René
CPC. ORE HUICHO, Gilmer
CPC. SOTO MENDEZ, Marielena
CPC. MISARAYME CCONISLLA, Sergio
CPC. SANCHEZ MAURICIO, Felder
CPC. MEJÍA CUADROS, Javier
CPC. ZAMORA TORREZ, Richar

Billing of fees will be based on the time actually spent by the assigned personnel. The
budget of hours is calculated taking into consideration that the company operates under
COSTOcollaboration
normal conditions, that there is ample DE LA AUDITORÍA on the part of the personnel for the

N° preparation APELLIDOS
CARGO of theY NOMBRES
required information,
COSTO H.H. which DIAS
N° HORAS weTRAB.have estimated
REMUNERACION PASAJESat a total
VIATICOS of 90
OTROSdays,
TOTAL COSTO
1 whichCPC.will
SOCIO FUNDADOR beHUAMAN,
BARRIENTOS conveniently
Huber 250.00 and
analyzed, 200 that the
25 records
50,000.00and controls
2,000.00 3,000.00 100.00
are adequate, 55,100.00
2 SECRETARIA MEDRANO LOZANO, LEYDI 80.00 160 20 12,800.00 600.00 1,800.00 100.00 15,300.00
3
updated
SUPERVISOR
and duly debugged.We have
CPC. SULCA LEON, Bither Smits 200.00
also
288
estimated
36
that the records
57,600.00 1,080.00
and controls
1,800.00
are
100.00 60,580.00
4 JEFE DE adequate, updated
EQUIPO CPC. ORE HUICHO, Gilmer and duly debugged.
160.00 Therefore,
568 71 we require
90,880.00 continuous
2,130.00 collaboration
1,800.00 100.00 94,910.00
5 Senior I CPC. SANCHEZ MAURICIO, Felder 140.00 472 59 66,080.00 1,770.00 1,800.00 100.00 69,750.00
and communication with you in order to resolve, by mutual agreement if necessary, any
6 Junior I CPC. MEJÍA CUADROS, Javier 140.00 368 46 51,520.00 1,380.00 1,800.00 100.00 54,800.00
7 Junior IIissue CPC.
that may
ZAMORA TORREZ,impede
Richar the effective
130.00progress
64 of the
8 work. Agreement
8,320.00 240.00 on1,800.00
progress100.00
and 10,460.00

10% on TOTAL
the date of delivery of all1,100.00 2120
reports, 265
plus general 337,200.00
sales 9,200.00
tax, starting 13,800.00
in March.700.00
The 360,900.00
proposal for the audit service is detailed below:
 LIDERCONTGROUP ACCOUNTANTS AND AUDITORS ASSOCIATES SAC.

Possible excesses between actual and budgeted hours that may arise in the course of the
audit work will be discussed with you in due course.

Any per diem, travel and other expenses will be billed to you as incurred. The
presentation of the auditorium services covered by this agreement shall be governed in
all cases by the legal provisions in force from time to time. If you agree with the terms
set forth herein, we would be grateful if you would return the enclosed copy to us
confirmed.

We are delighted to have the opportunity to provide you with our professional services
and we assure you that we will devote our utmost attention to this work.

Sincerely yours,

Ayacucho August 28, 2016

……………………………………………
C.P.C. SULCA LEON, Bither Smits
GENERAL MANAGER
SOA LIDERCONT GROUP SAC