Free Motion in Limine - District Court of Delaware - Delaware

Case 1:04-cv—01266-SLR Document 265-7 Filed 05/23/2006 Page 1 0f4

_ Case 1:04-cv—O1266—SLR Document 265-7 Filed 05/23/2006 Page 2 of 4 A
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` e _ - Deloitte Touche, LLP ‘ V E I _ A ` .
· . _ I Place Ville-Marie, Suite 3000 ,
_ _ _ Montrcal—QC HBB 4T9 ‘ ~. A
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a · _' _ This ureprescntaticns letter ic. provided in connection withyour review of, the interim financial - " .
` _ statement; of Tclcglobejnc. for the quarter. ended March 31, 2001 {thc “interin1 financial ·.
- A . · · ;tatements"). We confirm, to the best of our knowledge and belief; the folloyving represcntatiomsé _
‘- ·- . ]._ we acknowledge that we aye nesponsibie for the fair nresemation of the interim tinancial ‘
f· ‘ - . - · _ ' statements in conformity with both generally accepted accounting principles in the United - "
- . “ _ _Statcs and `Canadinn generally accepted accounting pxincinles and accordingly for the
, prevention and detection of fraud, error, violation or possible violation of laws or regulations. - ·
` ·2; The intefim financial statements am fairly presented in conformity with both generally
* - accepted accounting principles in the United States .and Canadian generally accepted.
__ I aticounting principles} applied ona consistent basis with that of the interim financial
` K __ ' statcm ents for the quarter ended March 31, 2000, and substantially consistent with the aud_itc.d
" _ - financial statements as ofand for the year ended Deéember31, 2000.
‘ l ll 3._ I The interim iimmcial statements are free. of material errors and omissions. All transactions .
" have been properly recorded in the accounting records underlying the Hnancial statements.,
. - 4. We understand that your review of the iriterirn financial statements was conducted 'in _
accordance with·Canaclian generally acceptedistanclards for such ieviews and accordingly Q
. - ‘ i consisted primarily of enqbixy, analytical procedwes and discussion related to information WB
_ `_ , supplied to you. We also understand that such a review would not necessarily detect fiend, _
- · . errorfviolation or possiblcviolation ofla·ivs‘or‘regulations, should any exist. ‘ . L Y
r i I ` 5. 'Therc have been no it·}egul`aritics that involve ‘management or employeegwho have a l »
· ‘ . significant role in the systeizn of internal control, or that could have a material effect on the
.· _ ` _ interim financial statements. ~
· _ 6._ We are unaware of violations or possible violationslof laws or regulations that could have `
_ · an ·eH`ect on the interim financial statements. _ ‘ · A
" . i ‘ · ‘ `7. There- have been no communications from regulatory agencies concerning noncompliance
- ‘ with, or deficiencies in, financial reporting practices. · ’ ‘
’ , l - 8. The Company has coinplied with all aspects of co¤¤·actua.l‘agreements that could have a. _ . V
- ‘ material effect on the interim financial statements in the event ofnon-compliance. .

A Case 1:04-cv-01266-SLR Document 265-7 Filed 05/23/2006 Page 3 of 4 {
Deloitte & Touche, LLP l ‘ . ‘ _ - . ` ` . .
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A · 9. We have rnade available to you all: . ‘ _
T a)‘ Financial records and related data. A ‘ _ i A-
- ' - _ b) Minutes of the `rneetings of shareholders, direetors, and conunittees of_ directors, or
· summaries of-actions of recent meetings for which minutes have not yet been prepared. ·
_ . 10. Other than those described in the notes to the tinancial statements, there have heen at events
· · subsequent to the date of the interim financial statements whielrrequire adjustment to or
· I disclosure in the financial statements and related notes. - ‘ ` ` `
l I _A 11. ,'I`he notes to the interim financial. statements reflect all material events and transactions that
are significant toan understanding of the changes in the C0mpany’s financial position and its
. peribrmance since reported in its annual financial statements for the year-ended December 3.] ,
2000. - · ·— ` · .
` 12.. The Company, using itshest estimates based on reasonable and sinnportable assumptions and `
. . projections, reviews for impairment long-lived assets and certain identifiable intangibles to be .
‘ held and used whenever events or-changes in circumstances indicate that the carrying amount
· of its assets might not be recoverable. After reviewing events and circumstances in the first · ‘
L quarter of 2001, Management has recorded an irnpainnenf of long-livedassets of the Excel
. Communicationsgroup. _ ' '
‘ _ _ I3. The Company has the neeessary financial support of its parent company, BCE-Inc., toisupport
` its operations in such a manner relevant to the Company’s ability to continue as a going
_ concem. The Company hasa $125 billion credit facility which is not hilly drawn upon.
’ · Management anticipates the renewal of this credit faeilitylin July under terms hd
· conditions as the existing facility. in addition, BCE has previously committed to contribute
_ ’ $1,0 billion in equity of which approximate1y,$140 million has been drawn as at March 31,
‘ 200li Alternative sources of funding are alsobeing pursued. The Company’s cash flows for
V ‘ the next twelve months indicate that- even with the above funding, a shortfall exists._
, Management is activeiy reviewing its cash How forecasts and in particular its planned capital
_ ‘ expenditures, relating to which we will announce a significant reduction in our capital spend.
` In any event, managernent believes that the Company will have the financial- resources to meet
its obligations as they become due through alternative sources of iinancing ineiuding the
. financial support of BCE inc; » ` ‘
14. We believe the ~- effects of U any unrecorded financial statement rnisstatements h »
aggregated by you during the current review of the interim financial statements for the
three-month period ended March 31, 2001 presented are immaterial, both individually
l · and in aggregate, to the financial statements talgen as a whole. ` .- _ '
BCE—AD 0011145 I

A Case 1 :04-ev—01266-SLR Document 265-71 Filed 05/23/2006 Page 4 of 4 U
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BCE~AD 0011145 1