6-K 1 cresud3qfy21.htm FINANCIAL STATEMENTS IIIQ21 cresud3qfy21
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Consolidated Financial Statements as of March 31, 2021 and for the nine-month period ended as of that date, presented comparatively.
 
 
 
 
 
Legal information
 
Denomination: Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Fiscal year N°: 88, beginning on July 1, 2020
 
Legal address: Carlos Della Paolera 261, 9th floor – Autonomous City of Buenos Aires, Argentina
 
Company activity: Real estate, agricultural, commercial and financial activities
 
Date of registration of the by-laws in the Public Registry of Commerce: February 19, 1937
 
Date of registration of last amendment of the by-laws in the Public Registry of Commerce: General Ordinary and Extraordinary Shareholders’ Meeting held on October 29, 2018 and registered in the Superintendence on January 08,2019 with the number 541, Book 93 Volume – of Joint Stock Companies.
 
Expiration of Company charter: June 6, 2082
 
Registration number with the Supervisory Board of Companies: 26, folio 2, book 45, Stock Companies
 
Stock: 591,642,804 common shares
 
Common stock subscribed, issued and paid up nominal value (millions of Ps.): 592
 
Parent Companies: Eduardo S. Elsztain directly and through Inversiones Financieras del Sur S.A., Agroinvestment S.A. y Consultores Venture Capital Uruguay S.A.
 
Legal addresses: Bolívar 108, 1st floor, Autonomous City of Buenos Aires, Argentina (Eduardo S. Elsztain) - Route 8, km 17,500, Zonamérica 1 Building, Of.106, Montevideo, Oriental Republic of Uruguay (IFISA) - Cambará 1620, 2nd Floor, office 202, Carrasco, 11000 Montevideo, Oriental Republic of Uruguay (Agroinvesment SA).
 
Parent companies' activity: Investment
 
Direct ownership interest: 215,998,867 shares
 
Voting stock (direct and indirect equity interest): 36.65% (*)
 
 

 
CAPITAL STATUS
 
Type of stock
 
Authorized to be offered publicly (Shares)
 
 
Subscribed, Issued and Paid-in (millions of Ps.)
 
Ordinary certified shares of Ps. 1 face value and 1 vote each
  591,642,804(**)
  592 
 
 
 
 
 
(*) For computation purposes, treasury shares have been subtracted.
(**) Company not included in the Optional Statutory System of Public Offer of Compulsory Acquisition.
 
 
 
 
 
Index
 
Glossary of terms
1
Unaudited Condensed Interim Consolidated Statements of Financial Position
2
Unaudited Condensed Interim Consolidated Statements of Income and Other Comprehensive Income
3
Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders' Equity
4
Unaudited Condensed Interim Consolidated Statements of Cash Flows
6
Notes to the Unaudited Condensed Interim Consolidated Financial Statements:
 
Note 1 - The Group's business and general information
7
Note 2 - Summary of significant accounting policies
8
Note 3 - Seasonal effects on operations
9
Note 4 - Acquisitions and disposals
9
Note 5 - Financial risk management and fair value estimates
12
Note 6 - Segment information
12
Note 7 - Investments in associates and joint ventures
17
Note 8 - Investment properties
18
Note 9 - Property, plant and equipment
18
Note 10 - Trading properties
19
Note 11 - Intangible assets
19
Note 12 - Right-of-use assets
19
Note 13 - Biological assets
20
Note 14 - Inventories
20
Note 15 - Financial instruments by category
21
Note 16 - Trade and other receivables
23
Note 17 - Cash flow and cash equivalents information
24
Note 18 - Trade and other payables
25
Note 19 - Provisions
26
Note 20 - Borrowings
26
Note 21 - Taxation
30
Note 22 - Revenues
30
Note 23 - Costs
31
Note 24 - Expenses by nature
31
Note 25 - Other operating results, net
31
Note 26 - Financial results, net
32
Note 27 - Related parties transactions
32
Note 28 - CNV General Resolution N° 622
33
Note 29 - Cost of sales and services provided
34
Note 30 - Foreign currency assets and liabilities
34
Note 31 - Groups of assets and liabilities held for sale
35
Note 32 - Result from discontinued operations
35
Note 33 - Other subsequent events of the period
36
Note 34 - Subsequent Events
39
 
 
 
 
 
 
Glossary of terms
 
The following are not technical definitions but help the reader to understand certain terms used in the wording of the notes to the Group’s Financial Statements.
 
Terms
 
Definitions
BACS
 
Banco de Crédito y Securitización S.A.
BCRA
 
Central Bank of the Argentine Republic
BHSA
 
Banco Hipotecario S.A.
Brasilagro
 
Brasilagro-Companhia Brasileira de Propriedades Agrícolas
CAMSA
 
Consultores Assets Management S.A.
Clal
 
Clal Holdings Insurance Enterprises Ltd.
CNV
 
National Securities Commission
Condor
 
Condor Hospitality Trust Inc.
Cresud, “the Company”, “us”
 
Cresud S.A.C.I.F. y A.
DFL
 
Dolphin Fund Ltd.
DIC
 
Discount Investment Corporation Ltd.
Dolphin
 
Dolphin Fund Ltd. and Dolphin Netherlands B.V.
Financial Statements
 
Unaudited Condensed Interim Consolidated Financial Statements
Annual Financial Statements
 
Consolidated Financial Statements as of June 30, 2019
CPF
 
Collective Promotion Funds
Gav-Yam
 
Gav-Yam, Bayside Land Corporation Ltd
IBC
 
Israel Broadband Company
IDBD
 
IDB Development Corporation Ltd.
IFISA
 
Inversiones Financieras del Sur S.A.
IASB
 
International Accounting Standards Board
IRSA
 
IRSA Inversiones y Representaciones S.A.
IRSA CP
 
IRSA Propiedades Comerciales S.A.
ISPRO
 
ISPRO the Israel properties rental Corp. Ltd.
Israir
 
Israir Airlines & Tourism Ltd.
LRSA
 
La Rural S.A.
Metropolitan
 
Metropolitan 885 Third Avenue Leasehold LLC
MPIT
 
Minimum Presummed Income Tax
New Lipstick
 
New Lipstick LLC
IAS
 
International Accounting Standards
IFRS
 
International Financial Reporting Standards
NIS
 
New Israeli Shekel
PBC
 
Property & Building Corporation Ltd.
PBEL
 
PBEL Real Estate Ltd.
Quality
 
Quality Invest S.A.
Shufersal
 
Shufersal Ltd.
Tarshop
 
Tarshop S.A.
TASE
 
Bolsa de Comercio de Tel Aviv
 
1
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Consolidated Statements of Financial Position
as of March 31, 2021 and June 30, 2020
(All amounts in millions, except otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
Note
  03.31.21 
  06.30.20 
ASSETS
 
    
    
Non-current assets
 
    
    
Investment properties
8
  171,822 
  311,584 
Property, plant and equipment
9
  34,361 
  81,164 
Trading properties
10
  1,617 
  6,574 
Intangible assets
11
  2,669 
  38,164 
Right-of-use assets
12
  4,035 
  29,685 
Biological assets
13
  2,993 
  2,381 
Investment in associates and joint ventures
7
  13,778 
  101,703 
Deferred income tax assets
21
  279 
  1,255 
Income tax and MPIT credits
 
  65 
  86 
Restricted assets
15
  161 
  2,621 
Trade and other receivables
16
  9,301 
  36,992 
Investment in financial assets
15
  951 
  4,758 
Derivative financial instruments
15
  11 
  222 
Total non-current assets
 
  242,043 
  617,189 
Current assets
 
    
    
Trading properties
10
  34 
  3,135 
Biological assets
13
  10,748 
  3,754 
Inventories
14
  5,064 
  12,278 
Restricted assets
15
  - 
  8,405 
Income tax and MPIT credits
 
  174 
  413 
Group of assets held for sale
31
  - 
  59,315 
Trade and other receivables
16
  25,030 
  59,181 
Investment in financial assets
15
  2,989 
  24,627 
Financial assets held for sale
15
  - 
  4,572 
Derivative financial instruments
15
  944 
  435 
Cash and cash equivalents
15
  12,980 
  136,627 
Total current assets
 
  57,963 
  312,742 
TOTAL ASSETS
 
  300,006 
  929,931 
SHAREHOLDERS’ EQUITY
 
    
    
Shareholders' equity (according to corresponding statement)
 
  35,950 
  34,060 
Non-controlling interest
 
  67,379 
  131,302 
TOTAL SHAREHOLDERS' EQUITY
 
  103,329 
  165,362 
LIABILITIES
 
    
    
Non-current liabilities
 
    
    
Borrowings
20
  60,543 
  433,760 
Deferred income tax liabilities
21
  52,996 
  66,968 
Trade and other payables
18
  2,374 
  4,042 
Provisions
19
  136 
  4,184 
Employee benefits
 
  96 
  605 
Derivative financial instruments
15
  94 
  100 
Lease liabilities
 
  4,112 
  20,569 
Payroll and social security liabilities
 
  - 
  334 
Total non-current liabilities
 
  120,351 
  530,562 
Current liabilities
 
    
    
Trade and other payables
18
  19,630 
  48,495 
Borrowings
20
  49,657 
  133,192 
Provisions
19
  143 
  3,307 
Group of liabilities held for sale
31
  - 
  32,014 
Payroll and social security liabilities
 
  1,148 
  6,342 
Income tax and MPIT liabilities
 
  96 
  1,115 
Lease liabilities
 
  1,426 
  7,663 
Derivative financial instruments
15
  4,226 
  1,879 
Total Current liabilities
 
  76,326 
  234,007 
TOTAL LIABILITIES
 
  196,677 
  764,569 
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES
 
  300,006 
  929,931 
 
The accompanying notes are an integral part of these Financial Statements
 
 
CRESUD S.A.C.I.F. y A.
 
 
 
 
 

By:  
/s/  Alejandro G. Elsztain
 
 
 
Name  Alejandro G. Elsztain
 
 
 
Title  Vicepresident II
 
 
 
 
2
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Consolidated Statements of Income and Other Comprehensive Income
for the nine and three-month periods ended March 31, 2021 and 2020
(All amounts in millions, except otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
 
 
 Nine months
 
 
 Three months
 
 
Note
  03.31.21 
  03.31.20 
  03.31.21 
  03.31.20 
Revenues
22
  26,046 
  36,697 
  3,265 
  5,341 
Costs
23
  (19,462)
  (22,642)
  (1,944)
  (1,835)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
 
  9,145 
  3,734 
  7,249 
  1,814 
Changes in the net realizable value of agricultural products after harvest
 
  271 
  502 
  (22)
  (146)
Gross profit
 
  16,000 
  18,291 
  8,548 
  5,174 
Net (loss)/ gain from fair value adjustment of investment properties
 
  (6,787)
  3,141 
  (16,978)
  (2,683)
Gain from disposal of farmlands
 
  103 
  461 
  - 
  1 
General and administrative expenses
24
  (3,415)
  (3,625)
  (823)
  (811)
Selling expenses
24
  (2,620)
  (3,334)
  (6)
  (511)
Other operating results, net
25
  (751)
  2,082 
  1,374 
  1,441 
Profit / (loss) from operations
 
  2,530 
  17,016 
  (7,885)
  2,611 
Share of (loss)/ profit of associates and joint ventures
7
  (2,059)
  836 
  (1,509)
  2,286 
Profit / (loss) before financial results and income tax
 
  471 
  17,852 
  (9,394)
  4,897 
Finance income
26
  328 
  283 
  25 
  81 
Finance cost
26
  (9,143)
  (10,662)
  (2,298)
  (3,461)
Other financial results
26
  10,124 
  (12,618)
  6,428 
  (1,659)
Inflation adjustment
26
  15 
  127 
  (1,939)
  (124)
Financial results, net
26
  1,324 
  (22,870)
  2,216 
  (5,163)
Profit / (loss) before income tax
 
  1,795 
  (5,018)
  (7,178)
  (266)
Income tax
21
  (2,924)
  (4,503)
  1,695 
  (316)
Loss for the period from continuing operations
 
  (1,129)
  (9,521)
  (5,483)
  (582)
Loss for the period from discontinued operations
32
  (8,102)
  (1,068)
  (61)
  (12,580)
Loss for the period
 
  (9,231)
  (10,589)
  (5,544)
  (13,162)
 
    
    
    
    
 
    
    
    
    
Other comprehensive (loss)/ income:
 
    
    
    
    
Items that may be reclassified subsequently to profit or loss:
 
    
    
    
    
Currency translation adjustment and other comprehensive loss from subsidiaries
 
  (1,758)
  (1,432)
  (4,761)
  (3,020)
Revaluation of fixed assets transferred to investment properties
 
  821 
  57 
  559 
  57 
Other comprehensive loss for the period from continuing operations
 
  (937)
  (1,375)
  (4,202)
  (2,963)
Other comprehensive (loss) / income for the period from discontinued operations
 
  (10,313)
  7,481 
  - 
  (4,761)
Total other comprehensive (loss) / income for the period
 
  (11,250)
  6,106 
  (4,202)
  (7,724)
Total comprehensive loss for the period
 
  (20,481)
  (4,483)
  (9,746)
  (20,886)
Total comprehensive loss from continuing operations
 
  (2,066)
  (10,896)
  (9,685)
  (3,545)
Total comprehensive (loss) / income from discontinued operations
 
  (18,415)
  6,413 
  (61)
  (17,341)
Total comprehensive loss from the period
 
  (20,481)
  (4,483)
  (9,746)
  (20,886)
(Loss)/ profit for the period attributable to:
 
    
    
    
    
Equity holders of the parent
 
  (3,997)
  (14,529)
  (606)
  (7,231)
Non-controlling interest
 
  (5,234)
  3,940 
  (4,938)
  (5,931)
(Loss)/ profit from continuing operations attributable to:
 
    
    
    
    
Equity holders of the parent
 
  (3,487)
  (9,549)
  (4,062)
  (939)
Non-controlling interest
 
  2,358 
  28 
  (1,421)
  357 
Total comprehensive (loss)/ income attributable to:
 
    
    
    
    
Equity holders of the parent
 
  (7,208)
  (17,696)
  (2,365)
  (9,300)
Non-controlling interest
 
  (13,273)
  13,213 
  (7,381)
  (11,586)
Loss for the period per share attributable to equity holders of the parent:
 
    
    
    
    
Basic
 
  (7.56)
  (29.53)
  (1.15)
  (14.70)
Diluted
 
  (7.56)
  (29.53)
  (1.15)
  (14.70)
Loss per share from continuing operations attributable to equity holders of the parent:
 
    
    
    
    
Basic
 
  (6.59)
  (19.41)
  (7.68)
  (3.07)
Diluted
 
  (6.59)
  (19.41)
  (7.68)
  (3.07)
 
The accompanying notes are an integral part of these Financial Statements.
 
 
 
CRESUD S.A.C.I.F. y A.
 
 
 
 
 

By:  
/s/  Alejandro G. Elsztain
 
 
 
Name  Alejandro G. Elsztain
 
 
 
Title  Vicepresident II
 
 
 
 
3
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity
for the nine-month period ended March 31, 2021
(All amounts in millions, except otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
 Attributable to equity holders of the parent
 
 
 
 
 
 
 
 
 
 Share capital
 
 
 Treasury shares
 
 
 Inflation adjustment of share capital and treasury shares (i)
 
 
 Warrants (ii)
 
 
 Share premium
 
 
 Additional paid-in capital from treasury shares
 
 
 Legal reserve
 
 
 Special reserve (iii)
 
 
 Other reserves (iv)
 
 
 Retained earnings
 
 
 Subtotal
 
 
 Non-controlling interest
 
 
 Total Shareholders' equity
 
Adjusted balance as of June 30, 2020
  499 
  3 
  13,426 
  - 
  14,339 
  122 
  505 
  1,042 
  1,362 
  2,762 
  34,060 
  131,302 
  165,362 
Loss for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (3,997)
  (3,997)
  (5,234)
  (9,231)
Other comprehensive loss for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (3,211)
  - 
  (3,211)
  (8,039)
  (11,250)
Total comprehensive loss for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (3,211)
  (3,997)
  (7,208)
  (13,273)
  (20,481)
Assignment of results - Shareholders’ meeting
  - 
  - 
  - 
  - 
  - 
  - 
  129 
  - 
  - 
  (129)
  - 
  - 
  - 
Share capital increase (ii)
  90 
  - 
  - 
  1,328 
  2,783 
  - 
  - 
  - 
  - 
  - 
  4,201 
  4,843 
  9,044 
Changes in non-controlling interest
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  496 
  - 
  496 
  304 
  800 
Dividend distribution
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (2,547)
  (2,547)
Other changes in shareholders' equity
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  4,401 
  - 
  4,401 
  2,989 
  7,390 
Integration of irrevocable contributions
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  94 
  94 
Capitalization of irrevocable contributions
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  14 
  14 
Decrease due to loss of control
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (56,347)
  (56,347)
Balance as of March 31, 2021
  589 
  3 
  13,426 
  1,328 
  17,122 
  122 
  634 
  1,042 
  3,048 
  (1,364)
  35,950 
  67,379 
  103,329 
 
(i)
Includes Ps. 1 of Inflation adjustment of treasury shares. See Note 19 to the Annual Financial Statements.
(ii)
See Note 33.
(iii)
Related to CNV General Resolution N° 609/12.
(iv)
Group’s other reserves for the period ended March 31, 2021 are comprised as follows:
 
 
 
 Cost of treasury shares
 
 
 Changes in non-controlling interest
 
 
 Revaluation surplus
 
 
 Reserve for currency translation adjustment
 
 
 Reserve shared-based compensation
 
 
 Other comprehensive results from subsidiaries
 
 
 Other reserves from subsidiaries
 
 
 Reserve for the acquisition of securities issued by the Company
 
 
 Total other reserves
 
Balance as of June 30, 2020
  (203)
  (4,460)
  1,743 
  4,040 
  669 
  (636)
  91 
  118 
  1,362 
Other comprehensive loss for the period
  - 
  - 
  68 
  (3,773)
  - 
  494 
  - 
  - 
  (3,211)
Total comprehensive loss for the period
  - 
  - 
  68 
  (3,773)
  - 
  494 
  - 
  - 
  (3,211)
Changes in non-controlling interest
  - 
  496 
  - 
  - 
  - 
  - 
  - 
  - 
  496 
Other changes in shareholders' equity
  - 
  (43)
  - 
  3,939 
  - 
  595 
  (90)
  - 
  4,401 
Balance as of March 31, 2021
  (203)
  (4,007)
  1,811 
  4,206 
  669 
  453 
  1 
  118 
  3,048 
 
The accompanying notes are an integral part of these Financial Statements.
 
 
 
CRESUD S.A.C.I.F. y A.
 
 
 
 
 

By:  
/s/  Alejandro G. Elsztain
 
 
 
Name  Alejandro G. Elsztain
 
 
 
Title  Vicepresident II
 
 
 
 
4
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity
for the nine-month period ended March 31, 2020
(All amounts in millions, except otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
 Attributable to equity holders of the parent
 
 
 
 
 
 
 
 
 
 Share capital
 
 
 Treasury shares
 
 
 Inflation adjustment of share capital and treasury shares (i)
 
 
 Share premium
 
 
 Additional paid-in capital from treasury shares
 
 
 Legal reserve
 
 
 Special reserve (ii)
 
 
 Other reserves (iii)
 
 
 Retained earnings
 
 
 Subtotal
 
 
 Non-controlling interest
 
 
 Total Shareholders' equity
 
Balance as of June 30, 2019
  486 
  16 
  13,425 
  14,339 
  124 
  504 
  7,011 
  49,321 
  (52,688)
  32,538 
  139,643 
  172,181 
Adjustments previous periods (IFRS 9 and 15) (Note 2.2)
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (1,103)
  (1,103)
  (1,830)
  (2,933)
Adjusted balance as of June 30, 2019
  486 
  16 
  13,425 
  14,339 
  124 
  504 
  7,011 
  49,321 
  (53,791)
  31,435 
  137,813 
  169,248 
(Loss) / profit for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (14,529)
  (14,529)
  3,940 
  (10,589)
Other comprehensive (loss) / income for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (3,167)
  - 
  (3,167)
  9,273 
  6,106 
Total comprehensive (loss) / profit for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (3,167)
  (14,529)
  (17,696)
  13,213 
  (4,483)
Distribution of treasury shares
  13 
  (13)
  - 
  - 
  - 
  - 
  - 
  2,047 
  (2,047)
  - 
  - 
  - 
Reserve for share-based payments
  - 
  - 
  - 
  - 
  (1)
  - 
  - 
  (4)
  - 
  (5)
  (9)
  (14)
Incorporation by business combination
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  11,189 
  11,189 
Changes in non-controlling interest
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (754)
  - 
  (754)
  6,594 
  5,840 
Dividend distribution
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (3,622)
  (3,622)
Decrease due to loss of control
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (58,604)
  (58,604)
Other changes in equity
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  19 
  19 
  244 
  263 
Capitalization of irrevocable contributions
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  37 
  37 
Loss absorption
  - 
  - 
  - 
  - 
  - 
  - 
  (5,968)
  (47,377)
  53,345 
  - 
  - 
  - 
Balance as of March 31, 2020
  499 
  3 
  13,425 
  14,339 
  123 
  504 
  1,043 
  66 
  (17,003)
  12,999 
  106,855 
  119,854 
 
(i)
Includes Ps. 1 of Inflation adjustment of treasury shares. See Note 19 to the Annual Financial Statements.
(ii)
Related to CNV General Resolution N° 609/12.
(iii)
Group’s other reserves for the period ended March 31, 2020 are comprised as follows:
 
 
 
 Cost of treasury shares
 
 
 Changes in non-controlling interest
 
 
 Revaluation surplus
 
 
 Reserve for currency translation adjustment
 
 
 Reserve shared-based compensation
 
 
 Special reserve
 
 
 Other comprehensive results from subsidiaries
 
 
 Other reserves from subsidiaries
 
 
 Reserve for the acquisition of securities issued by the Company
 
 
 Total other reserves
 
Adjusted balance as of June 30, 2019
  (2,252)
  (3,757)
  223 
  6,152 
  650 
  47,377 
  783 
  11 
  134 
  49,321 
Other comprehensive loss for the period
  - 
  - 
  - 
  (3,038)
  - 
  - 
  (129)
  - 
  - 
  (3,167)
Total comprehensive loss for the period
  - 
  - 
  - 
  (3,038)
  - 
  - 
  (129)
  - 
  - 
  (3,167)
Distribution of treasury shares
  2,047 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  2,047 
Reserve for share-based payments
  3 
  - 
  - 
  - 
  (1)
  - 
  - 
  (6)
  - 
  (4)
Changes in non-controlling interest
  - 
  (754)
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (754)
Loss absorption
  - 
  - 
  - 
  - 
  - 
  (47,377)
  - 
  - 
  - 
  (47,377)
Balance as of March 31, 2020
  (202)
  (4,511)
  223 
  3,114 
  649 
  - 
  654 
  5 
  134 
  66 
 
The accompanying notes are an integral part of these Financial Statements.
 
 
 
CRESUD S.A.C.I.F. y A.
 
 
 
 
 

By:  
/s/  Alejandro G. Elsztain
 
 
 
Name  Alejandro G. Elsztain
 
 
 
Title  Vicepresident II
 
 
 
 
 
5
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Consolidated Statements of Cash Flows
for the nine-month periods ended March 31, 2021 and 2020
(All amounts in millions, except otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
Note
  03.31.21 
  03.31.20 
Operating activities:
 
    
    
Net cash (used in)/ generated from operating activities before income tax paid
17
  (7,738)
  10,679 
Income tax paid
 
  (42)
  (348)
Net cash (used in) / generated from continuing operating activities
 
  (7,780)
  10,331 
Net cash generated from discontinued operating activities
 
  2,699 
  26,555 
Net cash (used in) / generated from operating activities
 
  (5,081)
  36,886 
Investing activities:
 
    
    
Proceeds from decrease of participation in associates and joint ventures
 
  895 
  1,164 
Acquisition of participation in associates and joint ventures
 
  (298)
  - 
Capital contributions to associates and joint ventures
 
  (38)
  (377)
Acquisition and improvement of investment properties
 
  (905)
  (2,903)
Proceeds from sales of investment properties
 
  16,162 
  108 
Acquisitions and improvements of property, plant and equipment
 
  (1,257)
  (1,224)
Financial advances
 
  (28)
  (34)
Acquisition of intangible assets
 
  (24)
  (71)
Proceeds from sales of property, plant and equipment
 
  55 
  11 
Dividends collected from associates and joint ventures
 
  - 
  361 
Acquisitions of investments in financial assets
 
  (20,031)
  (11,721)
Proceeds from disposal of investments in financial assets
 
  24,553 
  16,894 
Interest collected from financial assets
 
  502 
  388 
Dividends paid from financial assets
 
  - 
  (16)
Dividends collected from financial assets
 
  438 
  - 
Decrease in securities
 
  - 
  21 
Loans granted
 
  (195)
  (1,287)
Decrease in restricted deposits, net
 
  (10)
  (282)
Net cash generated from continuing investing activities
 
  19,819 
  1,032 
Net cash generated from discontinued investing activities
 
  39,721 
  21,942 
Net cash generated from investing activities
 
  59,540 
  22,974 
Financing activities:
 
    
    
Borrowings and issuance of non-convertible notes
 
  24,418 
  37,750 
Payment of borrowings and non-convertible notes
 
  (9,591)
  (31,895)
Obtaining of short term loans, net
 
  (36,639)
  (2,643)
Interest paid
 
  (9,282)
  (9,188)
Repurchase of non-convertible notes
 
  (3,013)
  (4,147)
Capital contributions from non-controlling interest in subsidiaries
 
  184 
  - 
Acquisition of non-controlling interest in subsidiaries
 
  (53)
  (36)
Proceeds from sales of non-controlling interest in subsidiaries
 
  5,084 
  - 
Lease liabilities paid
 
  (29)
  - 
Dividends paid
 
  (642)
  (1,280)
Dividends paid to non-controlling interest in subsidiaries
 
  (2,332)
  (311)
Proceeds from derivative financial instruments
 
  (836)
  (282)
Net cash used in continuing financing activities
 
  (23,345)
  (12,032)
Net cash used in discontinued financing activities
 
  (16,313)
  (83,749)
Net cash used in financing activities
 
  (39,658)
  (95,781)
Net decrease in cash and cash equivalents from continuing activities
 
  (11,306)
  (669)
Net increase / (decrease) in cash and cash equivalents from discontinued activities
 
  26,107 
  (35,252)
Net increase / (decrease) in cash and cash equivalents
 
  14,801 
  (35,921)
Cash and cash equivalents at beginning of the period
15
  136,627 
  120,893 
Cash and cash equivalents reclassified to held for sale
 
  - 
  (850)
Foreign exchange (loss)/ gain on cash and changes in fair value of cash equivalents
 
  (7,455)
  2,022 
Deconsolidation
 
  (130,993)
  - 
Cash and cash equivalents at the end of the period
 
  12,980 
  86,144 
 
  The accompanying notes are an integral part of these Financial Statements.
 
 
CRESUD S.A.C.I.F. y A.
 
 
 
 
 

By:  
/s/  Alejandro G. Elsztain
 
 
 
Name  Alejandro G. Elsztain
 
 
 
Title  Vicepresident II
 
 
 
 
6
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Notes to the Unaudited Condensed Interim Consolidated Financial Statements
 (Amounts in millions, except otherwise indicated)
 
 
1.
The Group’s business and general information
 
Cresud was founded in 1936 as a subsidiary of Credit Foncier, a Belgian company primarily engaged in providing rural and urban loans in Argentina and administering real estate holdings foreclosed by Credit Foncier. Credit Foncier was liquidated in 1959, and as part of such liquidation, the shares of Cresud were distributed to Credit Foncier’s shareholders. From the 1960s through the end of the 1970s, the business of Cresud shifted exclusively to agricultural activities.
 
In 2002, Cresud acquired a 19.85% interest in IRSA, a real estate company related to certain shareholders of Cresud. In 2009, Cresud increased its ownership percentage in IRSA to 55.64% and IRSA became Cresud’s direct principal subsidiary.
 
Cresud and its subsidiaries are collectively referred to hereinafter as the Group.
 
Main shareholders of the Company are jointly Inversiones Financieras del Sur S.A. and Agroinvestment S.A. Both entities are companies incorporated in Uruguay and belong to the same controlling group and ultimate beneficiary.
 
The Board of Directors has approved these Financial Statements for issuance on May 11, 2020.
 
As of March 31, 2021, the Group operates in two major business lines: (i) agricultural business and (ii) urban property and investment business, which, with the acquisition of IDBD, was divided into two centers of operations: (a) Argentina Operations Center and (b) Israel Operations Center. With the loss of control of the Israel Operations Center and its deconsolidation, as of October 1, 2020, the Group manages its operations through a single operations center:
 
 
 
(i)
See Note 4 to the Annual Financial Statements for more information about the Operations Center in Israel.
 
Operations Center in Israel
 
As stated in Note 1. to the consolidated financial statements as of June 30, 2020, on September 25, 2020 the Court decreed the insolvency and liquidation of IDBD and appointed a trustee for its shares along with a custodian over DIC and Clal shares. After this decision, the Board of Directors of IDBD was removed from its functions, therefore, the Group lost control as of that date. For comparability purposes and as required by IFRS 5, the results of the Israel Operations Center have been reclassified to discontinued operations for all periods presented.
 
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Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
2.
Summary of significant accounting policies
 
2.1.
Basis of preparation
 
These financial statements have been prepared in accordance with IAS 34 “Interim financial reporting” and should therefore be read in conjunction with the Group's annual Consolidated Financial Statements as of June 30, 2020 prepared in accordance with IFRS. Also, these financial statements include additional information required by Law No. 19,550 and / or regulations of the CNV. Such information is included in the notes to these financial statements, as accepted by IFRS.
 
These financial statements for the interim periods of nine months ended March 31, 2021 and 2020 have not been audited. Management considers that they include all the necessary adjustments to fairly present the results of each period. Intermediate period results do not necessarily reflect the proportion of the Group's results for the entire fiscal years.
 
IAS 29 "Financial Reporting in Hyperinflationary Economies" requires that the financial statements of an entity whose functional currency is one of a hyperinflationary economy be expressed in terms of the current unit of measurement at the closing date of the reporting period, regardless of whether they are based on the historical cost method or the current cost method. To do so, in general terms, the inflation produced from the date of acquisition or from the revaluation date, as applicable, must be calculated by non-monetary items. This requirement also includes the comparative information of the financial statements.
 
In order to conclude on whether an economy is categorized as highly inflationary in the terms of IAS 29, the standard details a series of factors to be considered, including the existence of an accumulated inflation rate in three years that approximates or exceed 100%. Accumulated inflation in Argentina in three years is over 100%. For that reason, in accordance with IAS 29, Argentina must be considered a country with a highly inflationary economy starting July 1, 2018.
 
In relation to the inflation index to be used and in accordance with FACPCE Resolution No. 539/18, it is determined based on the Wholesale Price Index (IPIM) until 2016, considering the average variation of the Consumer Price Index (CPI) of the Autonomous City of Buenos Aires for the months of November and December 2015, because during those two months there were no national IPIM measurements. Then, from January 2017, the National Consumer Price Index (National CPI) is considered. The table below presents the index for the period ended March 31, 2021, according to official statistics (INDEC) and following the guidelines described in Resolution 539/18.
 
 
 
Quarter ended September 30, 2020
 
 
Quarter ended December 31, 2020
 
 
Quarter ended March 31, 2021
 
 
As of March 31, 2021 (accumulated nine months)
 
Price variation
  8%
  11%
  13%
  35%
 
As a consequence of the aforementioned, these financial statements as of March 31, 2021 were restated in accordance with IAS 29.
 
2.2
Accounting policies
 
The accounting policies applied in the presentation of these Financial Statements are consistent with those applied in the preparation of the Annual Financial Statements, as described in Note 2 to those Financial Statements.
 
As described in Note 2.2 to the annual financial statements, the Group has adopted IFRS 16: “Leases” and Amendment to IAS 28 “Investment in associates and joint ventures” in the current year, applying the cumulative effect approach, therefore, accumulated impact was recognized in retained earnings as of July 1, 2019. Comparative figures were not restated.
 
 
2.3
Comparability of information
 
Balance items as of June 30, 2020 and March 31, 2020 presented in these Financial Statements for comparative purposes arise from the financial statements as of and for such period, restated in accordance with IAS 29 (See Note 2.1).Certain items from prior periods have been reclassified for consistency purposes regarding the loss of control in IDBD and Carnes Pampeanas. See Notes 1 and 6 to these Financial Statements.
 
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8
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
2.4
Use of estimates
 
The preparation of Financial Statements at a certain date requires Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual results might differ from the estimates and evaluations made at the date of preparation of these financial statements. In the preparation of these financial statements, the significant judgments made by Management in applying the Group’s accounting policies and the main sources of uncertainty were the same as the ones applied by the Group in the preparation of the Annual Financial Statements described in Note 3 to those Consolidated Financial Statements, except for those mentioned in Note 34.
 
 
3.
Seasonal effects on operations
 
Agricultural business
 
Some of the Group’s businesses are more affected by seasonal effects than others. The operations of the Group’s agricultural business are subject to seasonal effects. The harvests and sale of grains in Argentina generally take place each year since March in the case of corn and soybean, since October in the case of wheat, and since December in the case of sunflower. In Brazil, the harvest and sale of soybean take place since February, and in the case of corn weather conditions make it possible to have two seasons, therefore the harvest take place between March and July. In Bolivia, weather conditions also make it possible to have two soybean, corn and sorghum seasons and, therefore, these crops are harvested in July and May, whereas wheat is harvested in August and September, respectively. In the case of sugarcane, harvest and sale take place between April and November of each year. Other segments of the agricultural business, such as beef cattle production tend to be more stable. However, beef cattle production is generally larger during the second quarter, when conditions are more favorable. As a result, there may be material fluctuations in the agricultural business results across quarters.
 
Urban properties and investments business
 
The operations of the Group’s shopping malls are subject to seasonal effects, which affect the level of sales recorded by lessees. During summertime in Argentina (January and February), the lessees of shopping malls experience the lowest sales levels in comparison with the winter holidays (July) and Christmas and year-end holidays celebrated in December, when they tend to record peaks of sales. Apparel stores generally change their collections during the spring and the fall, which impacts positively on shopping malls sales. Sale discounts at the end of each season also affect the business. As a consequence, for shopping mall operations, a higher level of business activity is expected in the period ranging between July and December, compared to the period between January and June.
 
 
4.
Acquisitions and disposals
 
Significant acquisitions and disposals for the nine-month period ended March 31, 2021 are detailed below. Significant acquisitions and disposals for the fiscal year ended June 30, 2020, are detailed in Note 4 to the Annual Financial Statements.
 
Agricultural business
 
Bolivian companies
 
On December 20, 2020, our subsidiary BrasilAgro and its subsidiaries Agrifirma Agro and Imobiliária Engenho de Maracajú signed a Share Purchase Agreement to acquire 100% of the shares issued by the following companies based in Bolivia: (i) Agropecuaria Acres del Sud SA; (ii) Ombú Agropecuaria S.A .; (iii) Yatay Agropecuaria S.A .; and (iv) Yuchán Agropecuaria S.A., all indirectly controlled by The Company, for an amount of US$ 30. This acquisition was approved at a meeting of the BrasilAgro Board of Directors held on December 22, 2020.
 
The acquisition was subject to compliance with certain precedent conditions, which were fully met on February 4, 2021. Consequently, on February 8, 2021, BrasilAgro made the full payment of the acquisition price for a total of R$ 160 (equivalent to approximately Ps. 2,624 at the date of the transaction).
 
Said transaction has no impact on the Group's consolidated assets and liabilities. The difference in the ownership interest will be treated as a change in non-controlling interest within the equity.
 
 
 
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Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Sale of Bananal Farm
 
BrasilAgro concluded the sale of 2,160 hectares (1,714 useful hectares) of Bananal Farm (Magalhães municipality - BA). The farm was included in the Group of assets held for sale due to a disagreement involving the tenant at the time of sale. The previous conditions recognized in the purchase agreement were fully met on July 31, 2020 after receipt of R$ 5.5 (equivalent to Ps. 107). The face value of the sale is R$ 28 (equivalent to Ps. 498). For this operation, the company did not recognize results since the asset was recorded at its fair value.
 
Sale of Carnes Pampeanas S.A.
 
On February 24, 2021, the Company sold 100% of its shares of Sociedad Anónima Carnes Pampeanas S.A., owner of the meat processing plant Carnes Pampeanas in the province of La Pampa, Argentina.
 
The price of the operation was agreed at US$ 10, which has already been paid in full.
 
The result of the transaction amounted to $ 662.
 
The results from the meatpacking operations have been reclassified to discontinued operations.
 
Urban properties and investments business
 
Sale of floors from Boston Tower
 
On July 15, 2020, IRSA CP entered into a preliminary sale agreement (with delivery of possession) with respect to a medium-height floor from Boston tower located at Della Paolera 265, Catalinas district, City of Buenos Aires, covering a total area of approximately 1,063 sq. meters and 5 parking lots located in the building. The price of the transaction was Ps. 600 (US$ 6.7), which has been paid in full.
 
On August 25, 2020, IRSA CP executed a preliminary sale agreement (with delivery of possession) with respect to 5 floors from Boston tower located at Della Paolera 265, Catalinas district, City of Buenos Aires, covering a total area of approximately 6,235 sq. meters and 25 parking lots located in the building. The price of the transaction was Ps. 3,221 (US$ 34.7), which has been paid in full.
 
On November 5, 2020, IRSA CP has signed a purchase and sale agreement with possession of 4 floors of the Boston Tower located at 265 Della Paolera in the Catalinas District in the Autonomous City of Buenos Aires for a gross rental area of approximately 3,892 square meters and 15 parking lots located in the building. The price of the transaction was Ps. 2,047 (US$ 22.9).
 
On November 12, 2020, IRSA CP has signed with an unrelated third party a purchase and sale agreement with possession of 3 floors of the Boston Tower located at 265 Della Paolera in the Catalinas District in the Autonomous City of Buenos Aires for a gross rental area of approximately 3,266 square meters, a commercial space located on the ground floor of approximately 225 square meters and 15 parking lots located in the building. The price of the transaction was Ps. 1,718 (US$ 19.1).
 
Bouchard sale
 
On July 30, 2020, IRSA CP sold the entire “Bouchard 710” building, located in the Plaza Roma district of the City of Buenos Aires. The tower has a gross leasable area of 15,014 sq. meters divided into 12 floors for office use and 116 parking lots. The price of the transaction was approximately Ps. 7,923 (US$ 87), which has been paid in full.
 
Lipstick Building, New York, United States
 
On August 7, 2020, Metropolitan signed an agreement with the owner of the Ground Lease through which it terminated the relationship, leaving the administration of the building. For this reason, Metropolitan stopped recognizing the liabilities associated with the ground lease, as well as all the assets and liabilities associated with the building and the administration of the building; and made an agreement with the owner of the Ground Lease that states that Metropolitan is completely released from responsibilities, except for (i) claims for liabilities prior to June 1, 2020 from people who have performed work or provided services in the Building or to Metropolitan and (ii) claims from people who have had an accident on the property dated before August 7, 2020. This situation had an impact on the consolidated Financial Statements as of June 30, 2020.
 
 
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10
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Condor Merger Agreement
 
On July 19, 2019, Condor entered into a merger agreement with Nexponint Hospitality Trust. In accordance with the contractual terms, each Condor common share, with a par value of US$ 0.01 per share, was canceled prior to the merger and became the right to receive a cash amount equivalent to US$ 11.10 per ordinary share. Additionally, in accordance with the terms and conditions of the merger agreement, each Class E convertible share was automatically canceled and became the right to receive a cash amount equivalent to US$ 10.00 per share.
 
The closing of the transaction, which had been scheduled for March 23, 2020, did not occur.
 
On October 14, 2020, Condor entered into an agreement with Nexponint Hospitality Trust and some of its affiliates ("NHT Parties") to resolve any and all claims between them related to the aforementioned merger agreement.
 
According to this agreement, NHT and its affiliates shall make three payments to Condor in three installments ending on December 30, 2020 and totaling US$ 7.0. As of the date of these financial statements, the total compensation for breach of the contract has been collected.
 
As of the date of presentation of these Financial Statements, the Company has 2,245,100 ordinary shares and 325,752 Series E shares of Condor. The Company is evaluating new strategic alternatives for the purpose of this investment.
 
Loss of control of IDBD
 
As described in Note 1. to these financial statements, at the end of September 2020, the Group has lost control of IDBD, deconsolidating the related assets and liabilities and reclassifying the operations from this operations center to discontinued operations.
 
The following table details the net assets disposed:
 
 
  09.30.2020 
ASSETS
    
Investment properties
  105,943 
Property, plant and equipment
  43,252 
Trading properties
  6,931 
Intangible assets
  32,938 
Right-of-use assets
  23,301 
Investment in associates and joint ventures
  43,661 
Deferred income tax assets
  512 
Income tax and MPIT credits
  384 
Restricted assets
  7,571 
Trade and other receivables
  63,715 
Investment in financial assets
  28,519 
Derivative financial instruments
  332 
Inventories
  4,246 
Group of assets held for sale
  49,596 
Cash and cash equivalents
  130,983 
TOTAL ASSETS
  541,884 
Borrowings
  383,335 
Lease liabilities
  21,357 
Deferred income tax liabilities
  14,656 
Trade and other payables
  28,648 
Income tax and MPIT liabilities
  537 
Provisions
  6,394 
Employee benefits
  562 
Derivative financial instruments
  562 
Payroll and social security liabilities
  3,990 
Group of liabilities held for sale
  25,962 
TOTAL LIABILITIES
  486,003 
TOTAL NET ASSETS
  55,881 
Non-controlling interest
  (56,347)
Result for loss of control
  (466)
Recycling of currency translation adjustment and other reserves
  (3,159)
Total result for loss of control (*)
  (3,625)
 
(*) included within discontinued operations.
 
Distribution of dividends in kind
 
On October 26, 2020, the Ordinary and Extraordinary Shareholders’ Meeting of IRSA, approved, a dividend distribution in kind for the equivalent amount of Ps. 484 (representative of Ps. 0.84 per share) payable in shares of IRSA CP. IRSA CP’s quoted price per share as of October 23, 2020, was considered and, it amounted to 320 pesos per share. As a result 1,512,500 shares were distributed. This transaction was accounted for as a change in equity generating a
 
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Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
reduction of the equity attributable to the controlling shareholders for Ps. 754 restated for inflation as of the date of these financial statements. As of the end of the period the groups interest in IRSA CP amounts to 83.28%.
Manibil Sale
 
On December 22, 2020, the Company sold 217,332,873 ordinary Class B shares, nominative not endorsable, with a nominal value of ARS 1 and entitled to one vote per share owned by the Company, representing 49% of the stock capital of Manibil S.A., a company dedicated to real estate developments. As a consideration for this operation, completed in February 2021, the Company acquired the right to receive future units by 953 sq. meters and ceased to be a shareholder of Manibil S.A. The result of this operation amounts to a gain of ARS 33, which is disclosed within Other operating results, net.
 
 
5.
Financial risk management and fair value estimates
 
These Financial Statements do not include all the information and disclosures on financial risk management; therefore, they should be read along with Note 5 to the Annual Financial Statements. There have been no changes in risk management or risk management policies applied by the Group since year-end.
 
Since June 30, 2020 and up to the date of issuance of these Financial Statements, there have been no significant changes in business or economic circumstances affecting the fair value of the Group's assets or liabilities, (either measured at fair value or amortized cost), except as mentioned in Note 33.
 
 
6.
Segment information
 
As explained in Note 6 to the annual Financial Statements, the Group reported the information by segments from the perspective of products and services: (i) agricultural business and (ii) urban properties and investments business. Additionally, this last segment was geographically divided into two centers of operations to manage its global interests: Argentina and Israel. However, as detailed in Note 1, during September 2020 the Group lost control of IDBD and reclassified the results related to discontinued operations. As a consequence of the loss of control over IDBD, as of October 1, 2020, the Group reports its financial and equity performance under a single operations center. The information by segment for the period ended March 31, 2020 has been modified for the purposes of its comparability with the current period.
 
Below is a summary of the Group’s business units and a reconciliation between the operating income according to segment information and the operating income of the statement of income and other comprehensive income of the Group for the periods ended March 31, 2021 and 2020:
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
12
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Below is a summarized analysis of the lines of business of the Group for the year ended March 31, 2021:
 
 
  03.31.21 
 
 
 
 
 
 Urban Properties and Investment business (II)
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 Agricultural business (I)
 
 Operations Center in Argentina
 
 
 Operations Center in Israel
 
 
 Subtotal
 
 
 Total segment information
 
 
 Joint ventures (i)
 
 
 Adjustments (ii)
 
 
 Elimination of inter-segment transactions and non-reportable assets / liabilities (iii)
 
 
 Total Statement of Income / Financial Position
 
Revenues
  17,112 
  7,209 
  - 
  7,209 
  24,321 
  (33)
  2,020 
  (262)
  26,046 
Costs
  (15,007)
  (2,328)
  - 
  (2,328)
  (17,335)
  51 
  (2,191)
  13 
  (19,462)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
  9,065 
  - 
  - 
  - 
  9,065 
  - 
  - 
  80 
  9,145 
Changes in the net realizable value of agricultural products after harvest
  271 
  - 
  - 
  - 
  271 
  - 
  - 
  - 
  271 
Gross profit
  11,441 
  4,881 
  - 
  4,881 
  16,322 
  18 
  (171)
  (169)
  16,000 
Gain from disposal of farmlands
  103 
  - 
  - 
  - 
  103 
  - 
  - 
  - 
  103 
Net gain / (loss) from fair value adjustment of investment properties
  52 
  (6,742)
  - 
  (6,742)
  (6,690)
  (97)
  - 
  - 
  (6,787)
General and administrative expenses
  (1,249)
  (2,218)
  - 
  (2,218)
  (3,467)
  7 
  - 
  45 
  (3,415)
Selling expenses
  (1,643)
  (1,057)
  - 
  (1,057)
  (2,700)
  11 
  - 
  69 
  (2,620)
Other operating results, net
  (712)
  (118)
  - 
  (118)
  (830)
  (2)
  79 
  2 
  (751)
Profit / (Loss) from operations
  7,992 
  (5,254)
  - 
  (5,254)
  2,738 
  (63)
  (92)
  (53)
  2,530 
Share of loss of associates and joint ventures
  (12)
  (2,080)
  - 
  (2,080)
  (2,092)
  38 
  - 
  (5)
  (2,059)
Segment profit / (loss)
  7,980 
  (7,334)
  - 
  (7,334)
  646 
  (25)
  (92)
  (58)
  471 
 
    
    
    
    
    
    
    
    
    
Reportable assets
  53,796 
  192,245 
  - 
  192,245 
  246,041 
  (937)
  - 
  54,902 
  300,006 
Reportable liabilities
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (196,677)
  (196,677)
Net reportable assets
  53,796 
  192,245 
  - 
  192,245 
  246,041 
  (937)
  - 
  (141,775)
  103,329 
 

Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
13
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Below is a summarized analysis of the lines of business of the Group for the year ended March 31, 2020:
 
 
    03.31.20      
 
 
 
 
 
 Urban Properties and Investment business (II)
 
 
 
 
 

 
  
 

 
 

 
 
 
 Agricultural business (I)
 
 
 Operations Center in Argentina
 
 
 Operations Center in Israel
 
 
 Subtotal
 
 
 Total segment information
 
 
 Joint ventures (i)
 
 
 Adjustments (ii)
 
 
 Elimination of inter-segment transactions and non-reportable assets / liabilities (iii)
 
 
 Total Statement of Income / Financial Position
 
Revenues
  19,556 
  13,927 
  - 
  13,927 
  33,483 
  (78)
  3,540 
  (248)
  36,697 
Costs
  (15,935)
  (3,078)
  - 
  (3,078)
  (19,013)
  51 
  (3,680)
  - 
  (22,642)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
  3,566 
  - 
  - 
  - 
  3,566 
  - 
  - 
  168 
  3,734 
Changes in the net realizable value of agricultural products after harvest
  502 
  - 
  - 
  - 
  502 
  - 
  - 
  - 
  502 
Gross profit
  7,689 
  10,849 
  - 
  10,849 
  18,538 
  (27)
  (140)
  (80)
  18,291 
Net gain from fair value adjustment of investment properties
  17 
  3,488 
  - 
  3,488 
  3,505 
  (364)
  - 
  - 
  3,141 
Gain from disposal of farmlands
  461 
  - 
  - 
  - 
  461 
  - 
  - 
  - 
  461 
General and administrative expenses
  (1,277)
  (2,418)
  - 
  (2,418)
  (3,695)
  19 
  - 
  51 
  (3,625)
Selling expenses
  (2,164)
  (1,213)
  - 
  (1,213)
  (3,377)
  20 
  - 
  23 
  (3,334)
Other operating results, net
  1,950 
  23 
  - 
  23 
  1,973 
  27 
  81 
  1 
  2,082 
Profit from operations
  6,676 
  10,729 
  - 
  10,729 
  17,405 
  (325)
  (59)
  (5)
  17,016 
Share of profit of associates and joint ventures
  248 
  378 
  - 
  378 
  626 
  229 
  - 
  (19)
  836 
Segment profit
  6,924 
  11,107 
  - 
  11,107 
  18,031 
  (96)
  (59)
  (24)
  17,852 
 
    
    
    
    
    
    
    
    
    
Reportable assets
  49,842 
  157,905 
  558,450 
  716,355 
  766,197 
  (928)
  - 
  57,093 
  822,362 
Reportable liabilities
  - 
  - 
  (496,026)
  (496,026)
  (496,026)
  - 
  - 
  (206,482)
  (702,508)
Net reportable assets
  49,842 
  157,905 
  62,424 
  220,329 
  270,171 
  (928)
  - 
  (149,389)
  119,854 
 
(i) Represents the equity value of joint ventures that were proportionately consolidated for information by segment purposes.
(ii) Includes Ps. (171) and Ps. (140) corresponding to Expenses and FPC as of March 31, 2021 and 2020, respectively.
(iii) Includes deferred income tax assets, income tax and MPIT credits, trade and other receivables, investment in financial assets, cash and cash equivalents and intangible assets except for rights to receive future units under barter agreements, net of investments in associates with negative equity which are included in provisions in the amount of Ps. 11 as of March 31, 2021.
 
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
14
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
(I)
Agriculture line of business
 
The following tables present the reportable segments of the agriculture line of business:
 
 
 
  03.31.21
 
 
 
 Agricultural production
 
 
 Land transformation and sales
 
 
 Corporate
 
 
 Others
 
 
 Total Agricultural business
 
Revenues
  14,017 
  - 
  - 
  3,095 
  17,112 
Costs
  (12,782)
  (25)
  - 
  (2,200)
  (15,007)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
  9,065 
  - 
  - 
  - 
  9,065 
Changes in the net realizable value of agricultural products after harvest
  271 
  - 
  - 
  - 
  271 
Gross profit / (loss)
  10,571 
  (25)
  - 
  895 
  11,441 
Gain from disposal of farmlands
  - 
  103 
  - 
  - 
  103 
Net gain from fair value adjustment of investment properties
  - 
  52 
  - 
  - 
  52 
General and administrative expenses
  (836)
  (3)
  (219)
  (191)
  (1,249)
Selling expenses
  (1,385)
  (1)
  - 
  (257)
  (1,643)
Other operating results, net
  (4,098)
  2,626 
  - 
  760 
  (712)
Profit / (loss) from operations
  4,252 
  2,752 
  (219)
  1,207 
  7,992 
Share of profit/ (loss) of associates and joint ventures
  44 
  - 
  - 
  (56)
  (12)
Segment profit / (loss)
  4,296 
  2,752 
  (219)
  1,151 
  7,980 
 
    
    
    
    
    
Investment properties
  6,062 
  - 
  - 
  - 
  6,062 
Property, plant and equipment
  27,832 
  222 
  - 
  80 
  28,134 
Investments in associates
  529 
  - 
  - 
  283 
  812 
Other reportable assets
  16,817 
  - 
  - 
  1,971 
  18,788 
Reportable assets
  51,240 
  222 
  - 
  2,334 
  53,796 
 
 
 
03.31.20
 
 
 
 Agricultural production
 
 
 Land transformation and sales
 
 
 Corporate
 
 
 Others
 
 
 Total Agricultural business
 
Revenues
  16,717 
  - 
  - 
  2,839 
  19,556 
Costs
  (14,058)
  (27)
  - 
  (1,850)
  (15,935)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
  3,566 
  - 
  - 
  - 
  3,566 
Changes in the net realizable value of agricultural products after harvest
  502 
  - 
  - 
  - 
  502 
Gross profit / (loss)
  6,727 
  (27)
  - 
  989 
  7,689 
Net gain from fair value adjustment of investment properties
  - 
  17 
  - 
  - 
  17 
Gain from disposal of farmlands
  - 
  461 
  - 
  - 
  461 
General and administrative expenses
  (936)
  (3)
  (218)
  (120)
  (1,277)
Selling expenses
  (1,815)
  - 
  - 
  (349)
  (2,164)
Other operating results, net
  529 
  1,260 
  - 
  161 
  1,950 
Profit / (loss) from operations
  4,505 
  1,708 
  (218)
  681 
  6,676 
Share of profit of associates and joint ventures
  88 
  - 
  - 
  160 
  248 
Segment profit / (loss)
  4,593 
  1,708 
  (218)
  841 
  6,924 
 
    
    
    
    
    
Investment properties
  4,663 
  - 
  - 
  - 
  4,663 
Property, plant and equipment
  28,354 
  244 
  - 
  997 
  29,595 
Investments in associates
  583 
  - 
  - 
  418 
  1,001 
Other reportable assets
  11,562 
  446 
  - 
  2,575 
  14,583 
Reportable assets
  45,162 
  690 
  - 
  3,990 
  49,842 
 

Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
15
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
(II)
Urban properties and investments line of business
 
Below is a summarized analysis of the lines of business of Group’s operations center in Argentina:
 
 
 
  03.31.21
 
 
 
 Shopping Malls
 
 
 Offices
 
 
 Sales and developments
 
 
 Hotels
 
 
 International
 
 
 Corporate
 
 
 Others
 
 
 Total
 
Revenues
  3,748 
  1,891 
  515 
  672 
  336 
  - 
  47 
  7,209 
Costs
  (498)
  (162)
  (500)
  (729)
  (284)
  - 
  (155)
  (2,328)
Gross profit / (loss)
  3,250 
  1,729 
  15 
  (57)
  52 
  - 
  (108)
  4,881 
Net (loss) / gain from fair value adjustment of investment properties (i)
  (9,697)
  1,997 
  364 
  - 
  4 
  - 
  590 
  (6,742)
General and administrative expenses
  (1,077)
  (285)
  (232)
  (297)
  (41)
  (240)
  (46)
  (2,218)
Selling expenses
  (188)
  (117)
  (621)
  (103)
  (23)
  - 
  (5)
  (1,057)
Other operating results, net
  (92)
  (2)
  (8)
  (6)
  (7)
  - 
  (3)
  (118)
(Loss) / Profit from operations
  (7,804)
  3,322 
  (482)
  (463)
  (15)
  (240)
  428 
  (5,254)
Share of loss of associates and joint ventures
  - 
  - 
  (16)
  - 
  (636)
  - 
  (1,428)
  (2,080)
Segment (loss) / profit
  (7,804)
  3,322 
  (498)
  (463)
  (651)
  (240)
  (1,000)
  (7,334)
 
    
    
    
    
    
    
    
    
Investment and trading properties
  57,235 
  69,872 
  44,992 
  (2)
  110 
  - 
  2,062 
  174,269 
Property, plant and equipment
  282 
  3,428 
  - 
  2,333 
  - 
  8 
  - 
  6,051 
Investment in associates and joint ventures
  - 
  - 
  - 
  - 
  2,013 
  - 
  7,660 
  9,673 
Other reportable assets
  138 
  162 
  1,801 
  29 
  - 
  - 
  122 
  2,252 
Reportable assets
  57,655 
  73,462 
  46,793 
  2,360 
  2,123 
  8 
  9,844 
  192,245 
 
(i) For the nine-month period ended March 31, 2021, the net loss from fair value adjustment of investment properties was Ps. 6,742. The net impact of the values in pesos of our properties was mainly a consequence of the change in macroeconomic conditions:
 
(a) 
loss of ARS 669 as a consequence of the variation in the projected income growth rate increase in the projected inflation rate and the conversion to dollars of the projected cash flow in pesos according to the exchange rate estimates used in the cash flow from shopping malls;
(b) 
positive impact of ARS 12,612 resulting from the conversion into pesos of the value of the shopping malls in dollars based on the exchange rate at the end of the period;
(c) 
an increase of 135 basis points in the discount rate, mainly due to an increase in the country-risk rate component of the WACC discount rate used to discount the cash flow, which led to a decrease in the value of the shopping malls of ARS 6,152.
(d) 
Additionally, due to the impact of the inflation adjustment, ARS 16,615 were reclassified for shopping malls from “Net loss from fair value adjustment” to “Inflation Adjustment” in the Statement of Income and Other Comprehensive Income.
(e) 
The value of our office buildings and other rental properties measured in real terms increased by 3.2% during the nine-month period ended as of March 31, 2021, due to the implicit exchange rate.
 
 
 
 
03.31.20
 
 
 
 Shopping Malls
 
 
 Offices
 
 
 Sales and developments
 
 
 Hotels
 
 
 International
 
 
 Corporate
 
 
 Others
 
 
 Total
 
Revenues
  7,625 
  2,472 
  974 
  2,748 
  10 
  - 
  98 
  13,927 
Costs
  (619)
  (154)
  (644)
  (1,549)
  (11)
  - 
  (101)
  (3,078)
Gross profit / (loss)
  7,006 
  2,318 
  330 
  1,199 
  (1)
  - 
  (3)
  10,849 
Net (loss) / gain from fair value adjustment of investment properties
  (5,294)
  4,452 
  3,813 
  1 
  - 
  - 
  516 
  3,488 
General and administrative expenses
  (885)
  (284)
  (195)
  (399)
  (124)
  (404)
  (127)
  (2,418)
Selling expenses
  (578)
  (94)
  (240)
  (290)
  - 
  - 
  (11)
  (1,213)
Other operating results, net
  (9)
  (27)
  (23)
  (16)
  (1)
  - 
  99 
  23 
Profit / (Loss) from operations
  240 
  6,365 
  3,685 
  495 
  (126)
  (404)
  474 
  10,729 
Share of profit/ (loss) of associates and joint ventures
  - 
  51 
  - 
  (10)
  924 
  - 
  (587)
  378 
Segment profit / (loss)
  240 
  6,416 
  3,685 
  485 
  798 
  (404)
  (113)
  11,107 
 
    
    
    
    
    
    
    
    
Investment and trading properties
  63,831 
  46,133 
  40,173 
  - 
  136 
  - 
  1,652 
  151,925 
Property, plant and equipment
  318 
  1,474 
  - 
  2,653 
  270 
  - 
  - 
  4,715 
Investment in associates and joint ventures
  - 
  - 
  712 
  - 
  (10,020)
  - 
  8,998 
  (310)
Other reportable assets
  150 
  165 
  1,097 
  41 
  - 
  - 
  122 
  1,575 
Reportable assets
  64,299 
  47,772 
  41,982 
  2,694 
  (9,614)
  - 
  10,772 
  157,905 
 
Below is a summarized analysis of the segments from the Group’s Operations Center in Israel where only assets and liabilities are presented as of March 31,2020:
 

 
  03.31.20
 
 
 
 Real Estate
 
 
 Supermarkets
 
 
 Telecommunications
 
 
 Insurance
 
 
 Corporate
 
 
 Others
 
 
 Total
 
Reportable assets
  183,923 
  33,634 
  175,267 
  6,232 
  20,511 
  138,883 
  558,450 
Reportable liabilities
  (176,206)
  - 
  (133,645)
  - 
  (134,009)
  (52,166)
  (496,026)
Net reportable assets
  7,717 
  33,634 
  41,622 
  6,232 
  (113,498)
  86,717 
  62,424 
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
16
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
7.
Investments in associates and joint ventures
 
Changes in the Group’s investments in associates and joint ventures for the nine-month period ended March 31, 2021 and for the year ended June 30, 2020 were as follows:
 
 
  03.31.21 
  06.30.20 
Beginning of the period / year
  101,680 
  49,021 
Adjustments of previous years (IFRS 9 and IAS 28)
  - 
  (2,679)
Share capital increase and contributions
  38 
  3,861 
Share capital reduction
  - 
  (143)
(Decrease) / Increase of interest in associates and joint ventures (iv)
  (39,574)
  3,755 
Share of (loss) / profit
  (1,411)
  11,929 
Other comprehensive loss
  (50)
  (1,684)
Currency translation adjustment
  (3,159)
  12 
Dividends (i)
  (82)
  (2,499)
Deconsolidation (iii)
  (43,661)
  39,496 
Reclassification to held-for-sale
  - 
  (2,802)
Incorporation by business combination
  - 
  3,407 
Others
  (14)
  6 
End of the period / year (ii)
  13,767 
  101,680 
 
(i)
See Note 28.
(ii)
As of March 31, 2021, and June 30, 2020 includes Ps. (11) and (23) reflecting interests in companies with negative equity, which were disclosed in “Provisions” (see Note 19)
(iii)
The amount as of March 31, 2021 corresponds to the effect of the deconsolidation of IDBD (See note 4.E). Regarding the amount as of June 30, 2020, it corresponds to the effect of the deconsolidation of Gav-Yam (See Note 4 to the consolidated Financial Statements as of June 30, 2020)
(iv)
Mainly corresponds to the sale of the remaining equity interest in Shufersal in July 2020
 
Below is additional information about the Group’s investments in associates and joint ventures:
 

 
% ownership interest
 
 
Value of Group's interest in equity
 
 
Group's interest in comprehensive loss
 
Name of the entity
  03.31.21 
  06.30.20 
  03.31.21 
  06.30.20 
  03.31.21 
  03.31.20 
 
    
    
    
    
    
    
New Lipstick
  49.96%
  49.96%
  189 
  632 
  (429)
  (367)
BHSA
  29.91%
  29.91%
  5,100 
  5,514 
  (414)
  (693)
Condor
  18.89%
  18.89%
  1,732 
  2,005 
  (207)
  147 
Shufersal
  N/A 
  26.02%
  - 
  38,055 
  22 
  - 
Gav-Yam
  N/A 
  N/A 
  - 
  36,926 
  35 
  - 
TGLT S.A.
  27.82%
  N/A 
  1,835 
  2,787 
  (953)
  - 
Quality
  50.00%
  50.00%
  2,954 
  2,844 
  83 
  (24)
La Rural S.A.
  50.00%
  50.00%
  234 
  275 
  (40)
  261 
Cresca S.A.
  50.00%
  50.00%
  30 
  28 
  (3)
  118 
Other associates and joint ventures
  - 
  - 
  1,693 
  12,614 
  (2,664)
  143 
Total associates and joint ventures
    
    
  13,767 
  101,680 
  (4,570)
  (415)
 



   
 
Last financial statement issued
 
Name of the entity
Location of business / Country of incorporation
Main activity
 
Common shares 1 vote
 
 
Share capital (nominal value)
 
 
(Loss)/ Profit for the period
 
 
Shareholders' equity
 
New Lipstick
U.S.
Real estate
  N/A 
  - 
  (*) (9) 
  (*) (40 
BHSA
Argentina
Financing
  448,689,072 
  (***) 1,500 
  (***) 1.382 
  (***) 14,001 
Condor
U.S.
Hotel
  2,245,100 
  (*) 232 
  (*) (12) 
  (*) 73 
Shufersal
Israel
Retail
  N/A 
  (**) 1,399 
  (**) 101 
  (**) 1,930 
Gav-Yam
Israel
Real estate
  N/A 
  (**) 1,356 
  (**) 86 
  (**) 3,526 
TGLT S.A.
Argentina
Real estate
  257,320,997 
  925 
  (2,630)
  5,497 
Quality
Argentina
Real estate
  203,158,129 
  406 
  167 
  5,825 
La Rural S.A.
Argentina
Organization of events
  714,498 
  1 
  (64)
  378 
 
(*) 
Amounts in millions of US Dollars under USGAAP. Condor’s year-end falls on June 30, so the Group estimates their interest with a three-monthlag, including material adjustments, if any.
(**) 
Amounts in millions of NIS.
(***) 
Preliminary information as of March 31, 2021 according to NIIF.
 
Puerto Retiro (joint venture):
 
There have been no changes to what was informed in Note 8 to the Annual Financial Statements.
 
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Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
8.
Investment properties
 
Changes in the Group’s investment properties for the nine-month period ended March 31, 2021 and for the year ended June 30, 2020 were as follows:
 
 
 
 Leased out farmland
 
 
 Rental properties
 
 
 Underdeveloped parcels of land
 
 
 Properties under development
 
 
 Others
 
 
 Total as of 03.31.21
 
 
 Total as of 06.30.20
 
Fair value at the beginning of the period / year
  5,590 
  258,800 
  42,711 
  4,381 
  102 
  311,584 
  453,522 
Adjustments of previous years (IFRS 15)
  - 
  - 
  - 
  - 
  - 
  - 
  577 
Additions
  166 
  879 
  60 
  - 
  - 
  1,105 
  7,390 
Capitalized leasing costs
  - 
  15 
  1 
  - 
  - 
  16 
  27 
Amortization of capitalized leasing costs (i)
  - 
  (8)
  - 
  - 
  - 
  (8)
  (20)
Transfers
  559 
  (1,205)
  - 
  - 
  - 
  (646)
  (30,683)
Incorporation by business combination
  - 
  - 
  - 
  - 
  - 
  - 
  330 
Deconsolidation
  - 
  (103,258)
  (1,074)
  (1,611)
  - 
  (105,943)
  (213,266)
Disposals
  - 
  (16,031)
  - 
  - 
  - 
  (16,031)
  (20,511)
Currency translation adjustment
  (304)
  (10,850)
  (111)
  (178)
  - 
  (11,443)
  71,462 
Net gain / (loss) from fair value adjustment
  51 
  (8,693)
  1,752 
  43 
  35 
  (6,812)
  42,756 
Fair value at the end of the period / year
  6,062 
  119,649 
  43,339 
  2,635 
  137 
  171,822 
  311,584 
 
(i)
Amortization charges of capitalized leasing costs were included in “Costs” in the Statements of Income (Note 24).
 
The following amounts have been recognized in the Statements of Income:
 
 
  03.31.21 
  03.31.20 
Rental and services income
  8,062 
  14,271 
Direct operating expenses
  (3,083)
  (5,151)
Development expenses
  (72)
  (99)
Net realized gain from fair value adjustment of investment properties (i)
  9,753 
  759 
Net unrealized loss from fair value adjustment of investment properties (ii)
  (16,540)
  2,382 
 
(i)
As of March 31, 2021 includes ARS 4,899 for the sale of Torre Boston, ARS 4,838 for the sale of Bouchard 710 and ARS 17 for the sale of 10 parking lots located in Bouchard 557. As of March 31, 2020 includes ARS 492 corresponding to the barter transaction of the Caballito Ferro land and ARS 267 for the deconsolidation of the La Maltería S.A land.
 
(ii)
As of March 31, 2020, (ARS 1,389) corresponds to the realized result from fair value adjustment for the period (ARS 965) for the sale of Torre Boston and (ARS 424) for the sale of Bouchard 710) and ARS 11,125 for realized result from fair value adjustment made in previous years (ARS 5,864 for the sale of Torre Boston and ARS 5,261 for the sale of Bouchard 710). As of March 31, 2020 ARS 68 corresponds to net realized fair value adjustment on investment properties for the period (which includes the barter transaction of the Caballito Ferro land) and ARS 691 corresponds to the net realized fair value adjustment made in previous years (ARS 424 corresponding to the barter transaction of the Caballito Ferro land and ARS 267 for the deconsolidation of the La Maltería S.A. land).
 
Valuation techniques are described in Note 9 to the Annual Financial Statements. There were no changes to such techniques. The Group has reassessed the assumptions March 31, 2021, considering the market conditions existing at that date due to the pandemic described in Note 33, incorporating the effect of the variation in the exchange rate in other assets denominated in US Dollars.
 
 
9.
Property, plant and equipment
 
Changes in the Group’s property, plant and equipment for the nine-month period ended March 31, 2021 and for the year ended June 30, 2020 were as follows:
 
 
 
 Owner occupied farmland
 
 
 Bearer plant
 
 
 Buildings and facilities
 
 
 Machinery and equipment
 
 
 Communication networks
 
 
 Others
 
 
 Total as of 03.31.21
 
 
 Total as of 06.30.20
 
Costs
  35,288 
  2,775 
  19,247 
  3,513 
  129,231 
  21,236 
  211,290 
  192,953 
Accumulated depreciation
  (3,163)
  (1,248)
  (10,529)
  (2,445)
  (100,648)
  (12,093)
  (130,126)
  (119,708)
Net book amount at the beginning of the period / year
  32,125 
  1,527 
  8,718 
  1,068 
  28,583 
  9,143 
  81,164 
  73,245 
 
    
    
    
    
    
    
    
    
Additions
  832 
  51 
  235 
  64 
  523 
  822 
  2,527 
  9,278 
Disposals
  (25)
  - 
  (78)
  (2)
  (50)
  (91)
  (246)
  (4,735)
Deconsolidation
  (5,526)
  - 
  (3,835)
  (722)
  (25,527)
  (7,642)
  (43,252)
  (1,436)
Assets incorporated by business combinations
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  12,825 
Currency translation adjustment
  (1,028)
  (53)
  (320)
  (54)
  (2,058)
  (628)
  (4,141)
  5,808 
Transfers
  15 
  - 
  1,830 
  - 
  - 
  (8)
  1,837 
  (3,403)
Depreciation charges (i)
  (276)
  (289)
  (384)
  (85)
  (1,471)
  (1,020)
  (3,525)
  (10,418)
Inflation adjustment
  - 
  - 
  (3)
  - 
  - 
  - 
  (3)
  - 
Balances at the end of the period / year
  26,117 
  1,236 
  6,163 
  269 
  - 
  576 
  34,361 
  81,164 
 
    
    
    
    
    
    
    
    
Costs
  28,382 
  2,207 
  9,788 
  2,552 
  - 
  1,345 
  44,274 
  221,219 
Accumulated depreciation
  (2,265)
  (971)
  (3,625)
  (2,283)
  - 
  (769)
  (9,913)
  (140,055)
Net book amount at the end of the period / year
  26,117 
  1,236 
  6,163 
  269 
  - 
  576 
  34,361 
  81,164 
 
(i)
As of March 31, 2021, the amortization charge has been charged to the line "Costs" for Ps. 284, "General and administrative expenses" for Ps. 28, respectively, in the income statement (Note 24), Ps. 654 were capitalized as part of the cost of biological assets and Ps. 2,559 corresponds to discontinued operations.
 
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Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
 
10.
Trading properties
 
Changes in the Group’s trading properties for the nine-month period ended March 31, 2021 and for the year ended June 30, 2020 were as follows:
 
 
 
 Completed properties
 
 
 Properties under development
 
 
 Undeveloped sites
 
 
 Total as of 03.31.21
 
 
 Total as of 06.30.20
 
Beginning of the period / year
  2,739 
  1,123 
  5,847 
  9,709 
  11,342 
Additions
  - 
  130 
  356 
  486 
  3,015 
Capitalized finance costs
  - 
  95 
  - 
  95 
  126 
Currency translation adjustment
  (174)
  (79)
  (337)
  (590)
  1,188 
Transfers
  175 
  (175)
  - 
  - 
  291 
Impairment
  - 
  - 
  - 
  - 
  (210)
Deconsolidation
  (1,918)
  (128)
  (4,885)
  (6,931)
  - 
Disposals
  (712)
  (213)
  (193)
  (1,118)
  (6,043)
End of the period / year
  110 
  753 
  788 
  1,651 
  9,709 
 
    
    
    
    
    
Non-current
    
    
    
  1,617 
  6,574 
Current
    
    
    
  34 
  3,135 
Total
    
    
    
  1,651 
  9,709 
 
11.
Intangible assets
 
Changes in the Group’s intangible assets for the nine-month period ended March 31, 2021 and for the year ended June 30, 2020 were as follows:
 
 
 
 Goodwill
 
 
 Trademarks
 
 
 Licenses
 
 
 Customer relations
 
 
 Information systems and software
 
 
 Contracts and others
 
 
 Total as of 03.31.21
 
 
 Total as of 06.30.20
 
Costs
  7,880 
  11,231 
  13,562 
  21,056 
  14,239 
  17,038 
  85,006 
  75,706 
Accumulated amortization
  - 
  (906)
  (10,286)
  (17,705)
  (8,478)
  (9,467)
  (46,842)
  (40,485)
Net book amount at the beginning of the period / year
  7,880 
  10,325 
  3,276 
  3,351 
  5,761 
  7,571 
  38,164 
  35,221 
Additions
  - 
  - 
  - 
  25 
  379 
  1,477 
  1,881 
  6,142 
Disposals
  - 
  - 
  - 
  - 
  (100)
  - 
  (100)
  (210)
Deconsolidation
  (7,642)
  (9,566)
  (2,967)
  (2,831)
  (4,194)
  (5,738)
  (32,938)
  - 
Transfers
  - 
  - 
  - 
  - 
  (3)
  - 
  (3)
  (73)
Assets incorporated by business combination
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  92 
Currency translation adjustment
  143 
  (734)
  (234)
  (246)
  (624)
  (539)
  (2,234)
  7,791 
Impairment
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (4,442)
Amortization charges (i)
  - 
  (25)
  (75)
  (299)
  (989)
  (713)
  (2,101)
  (6,357)
Balances at the end of the period / year
  381 
  - 
  - 
  - 
  230 
  2,058 
  2,669 
  38,164 
 
    
    
    
    
    
    
    
    
Costs
  381 
  - 
  - 
  - 
  881 
  2,540 
  3,802 
  85,006 
Accumulated amortization
  - 
  - 
  - 
  - 
  (651)
  (482)
  (1,133)
  (46,842)
Net book amount at the end of the period / year
  381 
  - 
  - 
  - 
  230 
  2,058 
  2,669 
  38,164 
 
(i)
Amortization charge was recognized in the amount of Ps. 27 under "Costs", in the amount of Ps. 87 under "General and administrative expenses" as of March 31, 2021 in the Statements of Income (Note 24) and Ps. 1,987 corresponds to discontinued operations.
 
12.
Right-of-use assets
 
The Group’s right-of-use assets as of March 31, 2021 and June 30, 2020 are the following:
 
 
  03.31.21 
  06.30.20 
Farmland
  3,183 
  2,744 
Offices, shopping malls and other buildings
  10 
  5,572 
Communication networks
  - 
  14,896 
Machinery and equipment
  64 
  46 
Others
  778 
  6,427 
Right-of-use assets
  4,035 
  29,685 
 
    
    
Non-current
  4,035 
  29,685 
Total
  4,035 
  29,685 
 
The depreciation charge of the right-of use-assets is detailed below:
 
 
  03.31.21 
  03.31.20 
Farmland
  171 
  80 
Offices, shopping malls and other buildings
  1,180 
  566 
Communication networks
  270 
  3,271 
Others
  42 
  922 
Depreciation charge of right-of-use assets (i)
  1,663 
  4,839 
 
(i)
Includes Ps. 1,646 and Ps. 4,722 charged to the result of discontinued operations as of March 31, 2021 and 2020 respectively.
 
 
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13.
Biological assets
 
Changes in the Group’s biological assets and their allocation to the fair value hierarchy nine-month period ended March 31, 2021 and for the year ended June 30, 2020 were as follows:
 
 
  Agricultural business                                    
 
  Sown land-crops      
 
Sugarcane fields
 
 
Breeding cattle and cattle for sale
 
 
Other cattle
 
 
Others
 
 
Total as of 03.31.21
 
 
Total as of 06.30.20
 
 
 
Level 1
 
 
Level 3
 
 
Level 3
 
 
Level 2
 
 
Level 2
 
 
Level 1
 
 
 
 
 
 
 
Net book amount at the beginning of the period / year
  400 
  1,379 
  1,391 
  2,882 
  39 
  44 
  6,135 
  7,580 
Purchases
  - 
  - 
  - 
  445 
  4 
  - 
  449 
  387 
Changes by transformation
  (507)
  507 
  - 
  - 
  - 
  - 
  - 
  - 
Initial recognition and changes in the fair value of biological assets (i)
  - 
  7,600 
  1,054 
  502 
  (23)
  - 
  9,133 
  3,809 
Decrease due to harvest
  - 
  (12,425)
  (2,955)
  - 
  - 
  - 
  (15,380)
  (17,555)
Sales
  - 
  - 
  - 
  (1,434)
  (2)
  - 
  (1,436)
  (2,178)
Consumes
  - 
  - 
  - 
  -8 
  - 
  (6)
  (14)
  (501)
Costs for the period / year
  1,374 
  10,456 
  2,217 
  1,075 
  23 
  3 
  15,148 
  15,474 
Incorporation by business combination
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  84 
Foreign exchange loss
  (82)
  -107 
  (73)
  (32)
  - 
  - 
  (294)
  (965)
Balances at the end of the period / year
  1,185 
  7,410 
  1,634 
  3,430 
  41 
  41 
  13,741 
  6,135 
 
    
    
    
    
    
    
    
    
Non-current (Production)
  - 
  - 
  - 
  2,922 
  31 
  40 
  2,993 
  2,381 
Current (Consumable)
  1,185 
  7,410 
  1,634 
  508 
  10 
  1 
  10,748 
  3,754 
Net book amount at the end of the period / year
  1,185 
  7,410 
  1,634 
  3,430 
  41 
  41 
  13,741 
  6,135 
 
 
(i)
Biological assets with a production cycle of more than one year (that is, cattle) generated “Initial recognition and changes in fair value of biological assets” amounting to Ps. 479 and Ps. 371 for the nine-month periods ended March 31, 2021 and for the fiscal year ended June 30, 2020, respectively; amounts of Ps. 740 and Ps. 387, was attributable to price changes, and amounts of Ps. (261) and Ps. (16), was attributable to physical changes, respectively.
 
During the nine-month period ended March 31, 2021, there were transfers between the fair value hierarchies 1 and 3 of grain seeding (due to the degree of phenological growth of the crop) for Ps. 507. There were also no reclassifications between categories thereof.
 
The fair value less estimated point of sale costs of agricultural produce at the point of harvest (which have been harvested during the period) amount to Ps. 7,620 and Ps. 15,542 for the nine-month period ended March 31, 2021 and the year ended June 30, 2020, respectively.
 
See information on valuation processes used by the entity in Note 14 to the Annual Financial Statements.
 
As of March 31, 2021, and June 30, 2020, the better and maximum use of biological assets shall not significantly differ from the current use.
 
 
14.
Inventories
 
Breakdown of Group’s inventories as of March 31, 2021 and June 30, 2020 are as follows:
 
 
  03.31.21 
  06.30.20 
Crops
  3,024 
  3,652 
Materials and supplies
  1,638 
  1,909 
Seeds and fodders
  333 
  372 
Sugarcane
  - 
  5 
Agricultural inventories
  4,995 
  5,938 
Telephones and other communication equipment
  - 
  2,285 
Fruit
  - 
  3,662 
Others
  69 
  393 
Total inventories
  5,064 
  12,278 
 
 
 
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Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
15.
Financial instruments by category
 
Determining fair values
 
The present note shows the financial assets and financial liabilities by category of financial instrument and a reconciliation to the corresponding line in the Consolidated Statements of Financial Position, as appropriate. Financial assets and liabilities measured at fair value are assigned based on their different levels in the fair value hierarchy. For further information related to fair value hierarchy refer to Note 15 to the Annual Financial Statements.
 
Financial assets and financial liabilities as of March 31, 2021 are as follows:
 
 
   
 
 Financial assets at fair value through profit or loss
 
   
   
   
 
 
 Financial assets at amortized cost
 
 
 Level 1
 
 
 Level 2
 
 
 Level 3
 
 
 Subtotal financial assets
 
 
 Non-financial assets
 
 
 Total
 
March 31, 2021
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets as per Statement of Financial Position
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables) (Note 16)
  26,187 
  - 
  - 
  - 
  26,187 
  8,953 
  35,140 
Investment in financial assets:
    
    
    
    
    
    
    
 - Public companies’ securities
  - 
  422 
  - 
  344 
  766 
  - 
  766 
 - Bonds
  - 
  2,364 
  - 
  - 
  2,364 
  - 
  2,364 
 - Mutual funds
  - 
  17 
  - 
  - 
  17 
  - 
  17 
-Others
  28 
  730 
  - 
  35 
  793 
  - 
  793 
Derivative financial instruments:
    
    
    
    
    
    
    
 - Crops options contracts
  - 
  392 
  - 
  - 
  392 
  - 
  392 
 - Crops futures contracts
  - 
  466 
  - 
  - 
  466 
  - 
  466 
 - Foreign-currency options contracts
  - 
  5 
  - 
  - 
  5 
  - 
  5 
 - Foreign-currency future contracts
  - 
  50 
  16 
  - 
  66 
  - 
  66 
 - Swaps
  - 
  - 
  26 
  - 
  26 
  - 
  26 
Restricted assets (i)
  161 
  - 
  - 
  - 
  161 
  - 
  161 
Cash and cash equivalents (excluding bank overdrafts):
    
    
    
    
    
    
    
 - Cash on hand and at bank
  3,651 
  74 
  - 
  - 
  3,725 
  - 
  3,725 
 - Short-term investments
  108 
  9,147 
  - 
  - 
  9,255 
  - 
  9,255 
Total assets
  30,135 
  13,667 
  42 
  379 
  44,223 
  8,953 
  53,176 
 
 
 
   
 
Financial liabilities at fair value through profit or loss
 
   
   
   
 
 
Financial liabilities at amortized cost
 
 
 Level 1
 
 
 Level 2
 
 
 Level 3
 
 
Subtotal financial liabilities
 
 
Non-financial liabilities
 
 
Total
 
March 31, 2021
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities as per Statement of Financial Position
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other payables (Note 18)
  16,317 
  - 
  - 
  - 
  16,317 
  5,687 
  22,004 
Borrowings (Note 20)
  110,200 
  - 
  - 
  - 
  110,200 
  - 
  110,200 
Derivative financial instruments:
    
    
    
    
    
    
    
 - Crops options contracts
  - 
  1,625 
  142 
  - 
  1,767 
  - 
  1,767 
 - Crops futures contracts
  - 
  2,184 
  - 
  - 
  2,184 
  - 
  2,184 
 - Foreign-currency options contracts
  - 
  44 
  - 
  - 
  44 
  - 
  44 
 - Foreign-currency contracts
  - 
  238 
  16 
  - 
  254 
  - 
  254 
 - Swaps
  - 
  - 
  71 
  - 
  71 
  - 
  71 
Total liabilities
  126,517 
  4,091 
  229 
  - 
  130,837 
  5,687 
  136,524 
 

 
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PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
21
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Financial assets and financial liabilities as of June 30, 2020 were as follows:
 
 
   
 
 Financial assets at fair value through profit or loss
 
   
   
   
 
 
 Financial assets at amortized cost
 
 
 Level 1
 
 
 Level 2
 
 
 Level 3
 
 
 Subtotal financial assets
 
 
 Non-financial assets
 
 
 Total
 
June 30, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets as per Statement of Financial Position
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables) (Note 16)
  78,190 
  - 
  - 
  - 
  78,190 
  23,195 
  101,385 
Investment in financial assets:
    
    
    
    
    
    
    
- Equity securities in public companies
  - 
  777 
  311 
  - 
  1,088 
  - 
  1,088 
- Equity securities in private companies
  - 
  - 
  - 
  3,938 
  3,938 
  - 
  3,938 
- Deposits
  1,294 
  83 
  - 
  - 
  1,377 
  - 
  1,377 
 - Bonds
  - 
  10,590 
  1,955 
  - 
  12,545 
  - 
  12,545 
 - Mutual funds
  - 
  6,031 
  - 
  - 
  6,031 
  - 
  6,031 
 - Others
  - 
  2,995 
  1,097 
  314 
  4,406 
  - 
  4,406 
Derivative financial instruments:
    
    
    
    
    
    
    
 - Crops futures contracts
  - 
  117 
  - 
  - 
  117 
  - 
  117 
 - Swaps
  - 
  20 
  - 
  - 
  20 
  - 
  20 
 - Crops options contracts
  - 
  22 
  173 
  - 
  195 
  - 
  195 
 - Foreign-currency options contracts
  - 
  - 
  23 
  - 
  23 
  - 
  23 
 - Foreign-currency future contracts
  - 
  - 
  - 
  192 
  192 
  - 
  192 
 - Others
  83 
  - 
  27 
  - 
  110 
  - 
  110 
Restricted assets (i)
  11,026 
  - 
  - 
  - 
  11,026 
  - 
  11,026 
Financial assets held for sale
    
    
    
    
    
    
    
 - Clal
  - 
  4,572 
  - 
  - 
  4,572 
  - 
  4,572 
Cash and cash equivalents (excluding bank overdrafts):
    
    
    
    
    
    
    
 - Cash on hand and at bank
  36,593 
  - 
  - 
  - 
  36,593 
  - 
  36,593 
 - Short-term investments
  86,321 
  13,713 
  - 
  - 
  100,034 
  - 
  100,034 
Total assets
  213,507 
  38,920 
  3,586 
  4,444 
  260,457 
  23,195 
  283,652 
 
 
 
 
   
 
Financial liabilities at fair value through profit or loss
 
   
   
   
 
 
Financial liabilities at amortized cost
 
 
 Level 1
 
 
 Level 2
 
 
 Level 3
 
 
Subtotal financial liabilities
 
 
Non-financial liabilities
 
 
Total
 
June 30, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities as per Statement of Financial Position
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other payables (Note 18)
  41,868 
  - 
  - 
  - 
  41,868 
  10,669 
  52,537 
Borrowings (Note 21)
  566,952 
  - 
  - 
  - 
  566,952 
  - 
  566,952 
Derivative financial instruments:
    
    
    
    
    
    
    
 - Crops futures contracts
  - 
  96 
  - 
  - 
  96 
  - 
  96 
 - Forward contracts
  - 
  50 
  - 
  - 
  50 
  - 
  50 
 - Crops options contracts
  - 
  232 
  68 
  - 
  300 
  - 
  300 
 - Foreign-currency options contracts
  - 
  - 
  129 
  - 
  129 
  - 
  129 
 - Swaps
  - 
  - 
  83 
  - 
  83 
  - 
  83 
 - Others
  - 
  - 
  1,294 
  27 
  1,321 
  - 
  1,321 
Total liabilities
  608,820 
  378 
  1,574 
  27 
  610,799 
  10,669 
  621,468 
 
(i)
Corresponds to deposits in guarantee and escrows
 
The fair value of financial assets and liabilities at their amortized cost does not differ significantly from their book value, except for borrowings (Note 20). The fair value of payables approximates their respective carrying amounts because, due to their short-term nature, the effect of discounting is not considered significant. Fair values are based on discounted cash flows (Level 3).
 
The valuation models used by the Group for the measurement of Level 2 and Level 3 instruments are no different from those used as of June 30, 2020.
 
As of March 31, 2021, there have been no changes to the economic or business circumstances affecting the fair value of the financial assets and liabilities of the Group.

 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
22
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
The Group uses a range of valuation models for the measurement of Level 2 and Level 3 instruments, details of which may be obtained from the following table. When no quoted prices are available in an active market, fair values (particularly with derivatives) are based on recognized valuation methods.
 
Description
Pricing model / method
Parameters
Fair value hierarchy
 
Range
 
Promissory note
Theoretical price
Price of the underlying (Market price) and volatility of the share (historical) and market interest rate (Libor Curve).
Level 3
 
Price of the underlying 3 to 4. Volatility of the share 57% to 77%. Market interest rate 0.75% to 1.25%
 
 
Investments in financial assets - Other private companies’ securities
Cash flow / NAV - Theoretical price
Projected revenue discounted at the discount rate /
The value is calculated in accordance with shares in the equity funds on the basis of their Financial Statements, based on fair value or investments assessments.
Level 3
  1 - 3.5 
Derivative financial instruments – Forwards
Theoretical price
Underlying asset price and volatility
Level 2 and 3
  - 
Series E preferred shares of Condor
Theoretical price
Price of the underlying (Market price) and volatility of the share (historical) and market interest rate (Libor Curve).
 
Level 3
 
Price of the underlying 3 to 4. Volatility of the share 57% to 77%. Market interest rate 0.75% to 1.25%
 
 
The following table presents the changes in Level 3 instruments as of March 31, 2021 and June 30, 2020:
 
 
 
 Derivative financial instruments – Forwards
 
 
 Investments in financial assets - Private companies
 
 
 Investments in financial assets - Others
 
 
 Investments in financial assets - Public companies
 
 
 Derivative financial instruments
 
 
 Total as of 03.31.21
 
 
 Total as of 06.30.20
 
Balances at beginning of the period / year
  (27)
  3,938 
  314 
  - 
  192 
  4,417 
  5,609 
Additions and acquisitions
  - 
  - 
  - 
  - 
  - 
  - 
  47 
Transfer to level 1
  - 
  - 
  - 
  311 
  - 
  311 
  475 
Currency translation adjustment
  - 
  - 
  (2)
  (10)
  - 
  (12)
  1,110 
Deconsolidation
  27 
  (3,938)
  (275)
  - 
  (192)
  (4,378)
  - 
Disposals
  - 
  - 
  - 
  - 
  - 
  - 
  (2,149)
(Loss)/ Gain for the period / year (i)
  - 
  - 
  (2)
  43 
  - 
  41 
  (675)
Balances at the end of the period / year
  - 
  - 
  35 
  344 
  - 
  379 
  4,417 
 
(i) Included within “Financial results, net” in the Statements of Income.
 
 
16.
Trade and other receivables
 
Group’s trade and other receivables as of March 31, 2021 and June 30, 2020 are as follows:
 
 
  03.31.21 
  06.30.20 
Trade, leases and services receivable
  20,992 
  62,166 
Less: allowance for doubtful accounts
  (809)
  (5,212)
Total trade receivables
  20,183 
  56,954 
Prepayments
  4,395 
  16,027 
Borrowings, deposits and others
  3,453 
  10,345 
Guarantee deposits
  2 
  4 
Tax receivables
  2,591 
  2,096 
Others
  3,707 
  10,747 
Total other receivables
  14,148 
  39,219 
Total trade and other receivables
  34,331 
  96,173 
 
    
    
Non-current
  9,301 
  36,992 
Current
  25,030 
  59,181 
Total
  34,331 
  96,173 
 
    
    
 
The fair value of current trade and other receivables approximate their respective carrying amounts due to their short-term nature, as the impact of discounting is not considered significant. Fair values are based on discounted cash flows (Level 3).
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
23
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Movements on the Group’s allowance for doubtful accounts were as follows:
 
 
  03.31.21 
  06.30.20 
Beginning of the period / year
  5,212 
  3,663 
Incorporation by business combination
  - 
  (244)
Additions (i)
  606 
  1,463 
Recovery (i)
  (217)
  (153)
Currency translation adjustment
  (244)
  1,494 
Receivables written off during the period / year as uncollectable
  (25)
  (975)
Deconsolidation
  (4,185)
  (27)
Inflation adjustment
  (272)
  (33)
Transfers to assets held for sale
  (66)
  24 
End of the period / year
  809 
  5,212 
 
    
    
 
(i)
The creation and release of the allowance for doubtful accounts have been included in “Selling expenses” in the Statement of Income (Note 24).
 
 
17.
Cash flow and cash equivalent information
 
Following is a detailed description of cash flows generated by the Group’s operations for the nine-month periods ended March 31, 2021 and 2020:
 
 
Note
  03.31.21 
  03.31.20 
Loss for the period
 
  (9,231)
  (10,589)
Profit from discontinued operations
 
  8,102 
  1,068 
Adjustments for:
 
    
    
Income tax
21
  2,924 
  4,503 
Amortization and depreciation
24
  541 
  586 
Gain from disposal of trading properties
 
  (4)
  - 
Net loss / (gain) from fair value adjustment of investment properties
 
  6,787 
  (3,141)
Changes in the fair value of investments in financial assets
 
  (3,985)
  (737)
Gain from disposal of subsidiary and associates
 
  (684)
  - 
Financial results, net
 
  (9,913)
  22,100 
Provisions and allowances
 
  45 
  1,025 
Share of loss / (profit) of associates and joint ventures
7
  2,059 
  (836)
(Gain) / Loss from repurchase of Non-convertible Notes
 
  (30)
  1 
Changes in net realizable value of agricultural products after harvest
 
  (271)
  (502)
Unrealized initial recognition and changes in fair value of biological assets and agricultural products at the point of harvest
 
  (9,608)
  (4,719)
Unrealized gain from derivative financial instruments
 
  3,009 
  (234)
Other operating results
 
  102 
  40 
Gain from disposal of farmlands
 
  (103)
  (461)
 
    
    
Changes in operating assets and liabilities:
 
    
    
Decrease in inventories
 
  969 
  3,068 
Decrease / (Increase) in trading properties
 
  468 
  (643)
Decrease in biological assets
 
  3,007 
  2,443 
Increase in restricted assets
 
  - 
  (1,481)
(Increase) / Decrease in trade and other receivables
 
  (1,815)
  7,833 
Increase / (Decrease) in trade and other payables
 
  154 
  (7,170)
Decrease in salaries and social security liabilities
 
  (313)
  (759)
Decrease in provisions
 
  (92)
  (155)
Increase in lease liabilities
 
  217 
  60 
Net variation in derivative financial instruments
 
  1,044 
  114 
Increase in right of use
 
  (1,117)
  (735)
Net cash (used in)/ generated from continuing operating activities before income tax paid
 
  (7,738)
  10,679 
Net cash generated from discontinued operating activities before income tax paid
 
  2,923 
  26,879 
Net cash (used in)/ generated from operating activities before income tax paid
 
  (4,815)
  37,558 
 
The following table presents a detail of significant non-cash transactions occurred in the nine-month periods ended March 31, 2021 and 2020:
 
 
  03.31.21 
  03.31.20 
Dividends not collected
  40 
  (77)
Decrease in property, plant and equipment through an increase in investment properties
  105 
  - 
Decrease in participation in subsidiaries, associates and joint ventures due to currency translation adjustment
  - 
  802 
Increase in investment properties through an increase in trade and other payables
  - 
  850 
Increase in investments in associates and joint ventures through a decrease in investments in financial assets
  - 
  745 
Increase in intangible assets through an increase in trade and other payables
  - 
  1,813 
Increase in investments in financial assets through a decrease in investments in associates and joint ventures
  - 
  (4,851)
Increase of rights of use through a decrease of property, plant and equipment
  - 
  1,131 
Increase in trading properties through an increase in borrowings
  95 
  - 
Increase in intangible assets through a decrease in investment in associates
  679 
  - 
Increase in other reserves through an increase in participation in subsidiaries, associates and joint ventures
  1,686 
  - 
Distribution of dividends on shares
  - 
  (7)
Increase in equity through an increase in investment properties
  68 
  - 
Increase in deferred tax liability through an increase in investment properties
  22 
  - 
Decrease in property, plant and equipment through an increase in tax payables
  54 
  - 
 
 
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PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
24
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
The following table presents the balances disposed because of the loss of control of IDBD:
 
 
  09.30.20 
Investment properties
  105,943 
Property, plant and equipment
  43,252 
Trading properties
  6,931 
Intangible assets
  32,938 
Right-of-use assets
  23,301 
Investments in associates and joint ventures
  43,661 
Deferred income tax assets
  512 
Income tax credit
  384 
Restricted assets
  7,571 
Trade and other receivables
  63,715 
Investments in financial assets
  28,519 
Derivative financial instruments
  332 
Inventories
  4,246 
Group of assets held for sale
  49,596 
Borrowings
  (383,335)
Lease liabilities
  (21,357)
Deferred income tax liabilities
  (14,656)
Trade and other payables
  (28,648)
Income tax liabilities
  (537)
Provisions
  (6,394)
Employee benefits
  (562)
Derivative financial instruments
  (562)
Salaries and social security liabilities
  (3,990)
Group of liabilities held for sale
  (25,962)
Net value of incorporated assets that do not affect cash
  (75,102)
Cash and cash equivalents
  (130,983)
Non-controlling interest
  (56,347)
Net value of disposal assets
  (262,432)
 
 
18.
Trade and other payables
 
Group’s trade and other payables as of March 31, 2021 and June 30, 2020 were as follows:
 
 
  03.31.21 
  06.30.20 
Trade payables
  9,684 
  30,661 
Advances from sales, leases and services
  3,133 
  2,670 
Construction obligations
  - 
  551 
Accrued invoices
  1,589 
  1,653 
Deferred income
  - 
  192 
Admission fees
  969 
  1,377 
Deposits in guarantee
  162 
  137 
Total trade payables
  15,537 
  37,241 
Dividends payable to non-controlling interests
  - 
  481 
Tax payables
  1,587 
  1,009 
Management fees
  - 
  257 
Others
  4,880 
  13,549 
Total other payables
  6,467 
  15,296 
Total trade and other payables
  22,004 
  52,537 
 
    
    
Non-current
  2,374 
  4,042 
Current
  19,630 
  48,495 
Total
  22,004 
  52,537 
 
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
25
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
19.
Provisions
 
The table below shows the movements in the Group's provisions categorized by type:
 
 
 
 Legal claims (i)
 
 
 Investments in associates and joint ventures (ii)
 
 
 Sited dismantling and remediation
 
 
 Other provisions
 
 
 Total as of 03.31.21
 
 
 Total as of 06.30.20
 
Beginning of period / year
  3,420 
  23 
  606 
  3,442 
  7,491 
  18,891 
Additions
  68 
  - 
  25 
  100 
  193 
  681 
Contributions
  - 
  - 
  - 
  - 
  - 
  77 
Decreases
  (36)
  (17)
  - 
  - 
  (53)
  - 
Inflation adjustment
  (88)
  - 
  - 
  - 
  (88)
  (109)
Recovery
  - 
  - 
  - 
  - 
  - 
  (24)
Transfers
  (12)
  - 
  - 
  - 
  (12)
  - 
Share of profit/ (loss) in associates and joint ventures
  - 
  5 
  - 
  - 
  5 
  (10,100)
Deconsolidation
  (2,788)
  - 
  (588)
  (3,018)
  (6,394)
  - 
Currency translation adjustment
  (219)
  - 
  (43)
  (499)
  (761)
  643 
Used during the period / year
  (77)
  - 
  - 
  (25)
  (102)
  (2,568)
End of period / year
  268 
  11 
  - 
  - 
  279 
  7,491 
 
    
    
    
    
    
    
Non-current
    
    
    
    
  136 
  4,184 
Current
    
    
    
    
  143 
  3,307 
Total
    
    
    
    
  279 
  7,491 
 
(i)
Additions and recovery are included in "Other operating results, net".
(ii)
Corresponds to the investment Puerto Retiro, company with negative equity. The increase and recovery is included in "Share of profit of associates and joint ventures "
 
There were no significant changes to the processes mentioned in Note 21 to the Annual Financial Statements.
 
 
20.
Borrowings
 
The breakdown and fair value of the Group’s borrowings as of March 31, 2021 and June 30, 2020 was as follows:
 
 
 
 Book value
 
 
Fair value
 
 
  03.31.21 
  06.30.20 
  03.31.21 
  06.30.20 
Non-convertible notes
  83,751 
  464,367 
  77,554 
  374,786 
Bank loans
  14,902 
  94,604 
  15,049 
  79,808 
Bank overdrafts
  9,711 
  5,798 
  9,711 
  5,798 
Others
  1,836 
  2,183 
  1,836 
  2,183 
Total borrowings
  110,200 
  566,952 
  104,150 
  462,575 
 
    
    
    
    
Non-current
  60,543 
  433,760 
    
    
Current
  49,657 
  133,192 
    
    
Total
  110,200 
  566,952 
    
    
 
 
Issuance of CRESUD Non-convertible Notes
 
On August 31, 2020, the seventeenth Series of Notes public tender was carried out, within the framework of the Program approved by the Shareholders Meeting, for up to US$ 500. The main characteristics of the issuance are detailed bellow:
 
● Series XXX: denominated in dollars and payable in pesos at the applicable exchange rate, as defined in the issuance documents, with a nominal value of US$ 25.0 at a fixed rate of 2.0%, maturing 36 months from the date of issuance with quarterly payments and principal expiring at maturity. The issue price was 100.0% of Nominal Value. Proceeds will be mainly used for debt refinancing.
 
 
Issuance of IRSA Non-convertible Notes
 
On July 21, 2020, subsequently to the closing of the fiscal year, the Company issued US$ 38.4 Non-convertible Notes in the local market through the following instruments:
 
● Ps. 335.2 (equivalent to US$ 4.7) Series VI NCNs denominated and payable in Argentine pesos at a variable rate (Private Badlar) + 4.0%, with interest accruing on a quarterly basis. The principal amount is repayable in two
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
26
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
installments: the first one -equal to 30% of the par value of the notes- payable on the date that is 9 (nine) months after the Issue and Settlement Date and the second installment -equal to 70% of the par value of the notes- payable on the relevant due date, i.e. July 21, 2021. Notes were issued at 100% of their par value.
 
● US$ 33.7 Series VII NCNs denominated in US$ and payable in Argentine pesos at the applicable exchange rate, at a fixed 4.0% rate, with interest accruing on a quarterly basis. Repayment of capital is due on January 21, 2021. Notes were issued at 100% of their par value. The proceeds were used to refinance short-term indebtedness. On January 21, 2021, the commitments of this note were cancelled.
 
On March 31, 2021, the Company issued USD 65.5 Non-convertible Notes in the local market. The main characteristics of the issue are detailed below:
 
● 
Series X: denominated and payable in pesos for ARS 701.6 (equivalent at the time of issuance to USD 7.6) at a variable rate (private BADLAR + 5.0%) with quarterly payments. The principal will be paid on the due date, March 31, 2022. Price of issuance was 100.0% of the nominal value.
 
● 
Series XI: denominated in USD and payable in ARS at the applicable exchange rate for USD 15.8 at a fixed rate of 5.0%, with semiannual payments plus, if applicable, the Premium Factor in the first year (as defined in the corresponding Prospectus Supplement) and principal expiring on March 31, 2024. Price of issuance was 98.39% of the nominal value (IRR 5.6%).
 
● 
Series XII: denominated in UVA and payable in ARS at the applicable UVA value for UVA 53.8 (equivalent at the time of issuance to ARS 3,868.2 and USD 42.1) at a fixed rate of 4.0%, with semiannual payments and principal expiring on March 31, 2024. Price of issuance was 100.0% of the nominal value.
 
Payment of IRSA’s non-convertible notes
 
On July 20, 2020, the Company paid the twentieth interest installment and the principal installment of the US$ 75 Series II Non-convertible Notes issued on July 20, 2010.
 
On August 6, 2020, the Company paid the second interest installment and the principal installment of the US$ 47 Series II Non-convertible Notes issued on August 6, 2019.
 
Payment of IRSA CP’s Series IV Non-convertible Notes
 
On September 14, 2020, IRSA Propiedades Comerciales cancelled the Class IV Notes for a total of US$ 140.
 
Notes Issuance – Exchange Offer Series XXIV Notes - BCRA “A” 7106 Communication
 
On November 12, 2020, the company carried out an exchange operation of its Series XXIV Notes, for a nominal value of US$ 73.6.
 
Nominal Value of Existing Notes presented and accepted for the Exchange (for both Series): approximately US$ 65.1 which represents 88.41% acceptance, through the participation of 1,098 orders.
 
Series XXXI: Face Value of Existing Notes presented and accepted for the Exchange: approximately US$ 30.8.
Nominal Value to be Issued: approximately US$ 1.3.
Issuance Price: 100% nominal value.
Maturity Date: It will be November 12, 2023.
Consideration of the Exchange Offer: eligible holders whose existing notes have been accepted for the Exchange by the Company, will receive for every US$ 1 submitted to the Exchange, the accrued interest of the existing notes until the settlement and issue date and the following:
A sum of money of approximately US$ 29.4 for repayment of capital of such existing notes presented to the Exchange, in cash, in United States Dollars, which will be equivalent to US$ 0.95741755 for each US$ 1 of existing notes presented to the Exchange; and
The remaining amount until completing 1 US$ for each 1 US$ of existing notes presented to the Exchange, in notes Series XXXI.
Annual Nominal Fixed Interest Rate: 9.00%.
Amortization: The capital of the Series XXXI Notes will be amortized in 3 annual installments (33% of the capital on November 12, 2021, 33% of the capital on November 12, 2022, 34% of the capital on the maturity date of Series XXXI).
Interest Payment Dates: Interest will be paid quarterly for the expired period as of the issue and settlement date.
Payment Address: Payment will be made to an account at Argentine Securities Commission in the Autonomous City of Buenos Aires
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
27
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Series XXXII: Face Value of Existing Notes presented and accepted for the Exchange: approximately US$ 34.3.
Nominal Value to be Issued: approximately US$ 34.3.
Issuance Price: 100% nominal value.
Maturity Date: It will be November 12, 2022.
Consideration of the Exchange Offer: the eligible holders whose existing notes have been accepted for the Exchange by the Company, will receive Series XXXII Notes for 100% of the capital amount presented for exchange and accepted by the Company and the accrued interest of the existing notes until the settlement and issue date.
Early Bird: will consist of the payment of US$ 0.02 for each US$ 1 of existing notes delivered and accepted in the Exchange on or before the deadline date to Access the Early Bird. Said consideration will be paid in Pesos on the issue and settlement date according to the exchange rate published by Communication “A” 3500 of the Central Bank of Argentina on the business day prior to the expiration date of the Exchange, which is Ps. 79.3433 for each US$ 1 of Existing Notes delivered and accepted in the Exchange.
Annual Nominal Fixed Interest Rate: 9.00%.
Amortization: The capital of the Series XXXII Notes will be amortized in one installment on the maturity date.
Interest Payment Dates: Interest will be paid quarterly for the expired period from the issuance and settlement date.
 
Payment Address: Payment will be made to an account at Argentine Securities Commission in New York, United States, for which purpose the Company will make US dollars available to an account reported by the Argentine Securities Commission in said jurisdiction.
 
Cancellation Cresud’s Series XXIV Notes
 
In relation to the Exchange Offer ended on November 10, 2020, and as a result of the settlement of said Exchange, on November 16, 2020, the Company made a partial cancellation for a V.N. of US$ 65 of Negotiable Obligations Class XXIV. After the cancellation the V.N. in circulation was US$ 8, which was paid in full on November 16, 2020.
 
Exchange of IRSA’s debentures
 
On November 12, 2020, the company carried out an exchange operation of its Series I Notes, for a nominal value of US$ 181.5.
 
Nominal Value of Existing Notes presented and accepted for the Exchange (for both Series): approximately US$ 178.5 which represents 98.31% acceptance, through the participation of 6,571 orders.
 
Series VIII: Face Value of Existing Notes presented and accepted for the Exchange: approximately US$ 104.3.
 
Nominal Value to be Issued: approximately US$ 31.7. 
 
Issuance Price: 100% nominal value.
 
Maturity Date: It will be November 12, 2023.
 
 
Consideration of the Exchange Offer: eligible holders whose existing notes have been accepted for the Exchange by the Company, will receive for every US$ 1 submitted to the Exchange, the accrued interest of the existing notes until the settlement and issue date and the following:
 
A sum of money of approximately US$ 72,6 for repayment of capital of such existing notes presented to the Exchange, in cash, in United States Dollars, which will be equivalent to US$ 0.69622593 for each US$ 1 of existing notes presented to the Exchange; and
 
The remaining amount until completing 1 US$ for each 1 US$ of existing notes presented to the Exchange, in notes Series VIII.
 
Annual Nominal Fixed Interest Rate: 10.00%.
 
Amortization: The capital of the Series VIII Notes will be amortized in 3 annual installments (33% of the capital on November 12, 2021, 33% of the capital on November 12, 2022, 34% of the capital on the maturity date of Series VIII).
 
Interest Payment Dates: Interest will be paid quarterly for the expired period as of the issue and settlement date.
 
Payment Address: Payment will be made to an account at Argentine Securities Commission in the Autonomous City of Buenos Aires
 
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
28
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Series IX: Face Value of Existing Notes presented and accepted for the Exchange: approximately US$ 74.2.
 
Nominal Value to be Issued (together with the Face Value to be issued as a result of the cash subscription): approximately US$ 80.7 .
 
 
Issuance Price: 100% nominal value.
 
Maturity Date: It will be March 1, 2023.
 
 
Consideration of the Exchange Offer: the eligible holders whose existing notes have been accepted for the Exchange by the Company, will receive Series IX Notes for 100% of the capital amount presented for exchange and accepted by the Company and the accrued interest of the existing notes until the settlement and issue date.
 
Early Bird: will consist of the payment of US$ 0.02 for each US$ 1 of existing notes delivered and accepted in the Exchange on or before the deadline date to Access the Early Bird. Said consideration will be paid in Pesos on the issue and settlement date according to the exchange rate published by Communication “A” 3500 of the Central Bank of Argentina on the business day prior to the expiration date of the Exchange, which is Ps. 79.3433 for each US$ 1 of Existing Notes delivered and accepted in the Exchange.
  
Annual Nominal Fixed Interest Rate: 10.00%.
 
Amortization: The capital of the Series IX Notes will be amortized in one installment on the maturity date.
 
Interest Payment Dates: Interest will be paid quarterly for the expired period from the issuance and settlement date.
 
Payment Address: Payment will be made to an account at Argentine Securities Commission in New York, United States, for which purpose the Company will make US dollars available to an account reported by the Argentine Securities Commission in said jurisdiction.
 
 
Modifications to the Terms of the Existing Notes: Considering that consent has been obtained for an amount greater than 90% of the existing notes capital, the Company has modified and replaced the following essential and non-essential terms and conditions of the existing notes.
 
By virtue of the implementation of the Proposed Non-Essential Modifications, the entire section of "Certain Commitments" and "Events of Default" is eliminated from the terms and conditions set forth in the prospectus supplements dated May 2, 2019 and dated July 25, 2019 corresponding to the existing notes.
 
Additionally, pursuant to the implementation of the Proposed Essential Modifications, the following terms and conditions of the Existing Notes are modified and replaced:
 
Expiration Date: It will be March 1, 2023.
 
Interest Payment Dates: will be the same dates reported for Class IX in the Notice of Results.
 
It is clarified that the terms and conditions of the Series I Notes not modified by the Proposed Essential Modifications and the Proposed Non-Essential Modifications will maintain their full validity.
 
The implementation of the Proposed Essential Modifications and Proposed Non-Essential Modifications were approved by the Board of Directors, on November 11, 2020.
 
Repayment Series I: In relation to the Exchange Offer ended on November 10, 2020, on November 12, 2020, IRSA made a partial repayment of Series I Notes for a Nominal Value of USD 178.5, after the partial repayment the Nominal Value under circulation was USD 3.1 and due to the fact that the necessary percentage for the change of conditions for Series I was reached, then the expiration date was modified, among others, until March 1, 2023, so Series I remains for USD 3.1 until the new maturity, and the payment of interest replicates to Series IX.
 
Loan to related party
 
On October 23, 2020, Dolphin Netherlands has granted a loan to Yad Leviim Ltd. in a principal amount of US$ 16,250,000 at a rate interest of 5% per year. Then, on December 17, Dolphin Netherlands assigned the receivable to Tyrus S.A., partially canceling the current loan agreement between both companies. Yad Leviim Ltd. is a company controlling by Eduardo Elsztain.
 
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
29
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
21.
Taxation
 
The details of the Group’s income tax, is as follows:
 
 
  03.31.21 
  03.31.20 
Current income tax
  (579)
  (1,048)
Deferred income tax
  (2,345)
  (3,448)
Minimum Presumed Income Tax
  - 
  (7)
Income tax from continuing operations
  (2,924)
  (4,503)
 
Below is a reconciliation between income tax recognized and the amount which would result from applying the prevailing tax rate on profit before income tax for the nine-month periods ended March 31, 2021 and 2020:
 
 
  03.31.21 
  03.31.20 
Tax calculated at the tax rates applicable to profits in the respective countries
  (801)
  5,239 
Permanent differences:
    
    
Share of loss of joint ventures and associates
  618 
  19 
Tax rate differential
  3,159 
  1,918 
Provision for unrecoverability of tax loss carry-forwards / Unrecognized tax loss carry-forwards
  (3,078)
  (5,170)
Non-taxable profit, non-deductible expenses and others
  (839)
  (1,024)
Tax inflation adjustment
  (8,759)
  (7,381)
Fiscal transparency
  671 
  146 
Inflation adjustment permanent difference
  6,105 
  1,750 
Income tax from continuing operations
  (2,924)
  (4,503)
 
The gross movement in the deferred income tax account is as follows:
 
 
  03.31.21 
  06.30.20 
Beginning of period / year
  (65,713)
  (76,377)
Deconsolidation
  14,144 
  19,327 
Currency translation adjustment
  1,702 
  2,583 
Revaluation surplus
  (381)
  276 
Reserve for changes of non-controlling interest
  (375)
  104 
Business combination and other assets held for sale
  - 
  (1,612)
Charged to the Statement of Income
  (2,094)
  (10,014)
End of the period / year
  (52,717)
  (65,713)
 
    
    
Deferred income tax assets
  279 
  1,255 
Deferred income tax liabilities
  (52,996)
  (66,968)
Deferred income tax liabilities, net
  (52,717)
  (65,713)
 
 
22.
Revenues
 
 
  03.31.21 
  03.31.20 
Crops
  8,461 
  10,909 
Sugarcane
  3,253 
  3,547 
Cattle
  1,772 
  1,811 
Supplies
  1,320 
  1,025 
Consignment
  462 
  491 
Advertising and brokerage fees
  793 
  696 
Agricultural rental and other services
  489 
  649 
Other
  416 
  234 
Income from sales and services from agricultural business
  16,966 
  19,362 
Trading properties and developments
  835 
  965 
Rental and services
  7,573 
  13,622 
Hotel operations, tourism services and others
  672 
  2,748 
Income from sales and services from urban properties and investment business
  9,080 
  17,335 
Total revenues
  26,046 
  36,697 
 
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
30
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
23.
Costs
 
 
  03.31.21 
  03.31.20 
Other operative costs
  25 
  27 
Cost of property operations
  25 
  27 
Crops
  8,734 
  9,191 
Sugarcane
  2,479 
  3,136 
Cattle
  1,434 
  1,483 
Supplies
  953 
  864 
Consignment
  740 
  167 
Advertising and brokerage fees
  508 
  438 
Agricultural rental and other services
  133 
  629 
Cost of sales and services from agricultural business
  14,981 
  15,908 
Trading properties and developments
  783 
  637 
Rental and services
  2,949 
  4,521 
Hotel operations, tourism services and others
  724 
  1,549 
Cost of sales and services from sales and services from urban properties and investment business
  4,456 
  6,707 
Total costs
  19,462 
  22,642 
 
 
24.
Expenses by nature
 
The Group discloses expenses in the statements of income by function as part of the line items “Costs”, “General and administrative expenses” and “Selling expenses”. The following table provides additional disclosures regarding expenses by nature and their relationship to the function within the Group.
 
 
 
 Production costs
 
 
 Costs (i)
 
 
 General and administrative expenses
 
 
 Selling expenses
 
 
 Total as of 03.31.21
 
 
 Total as of 03.31.20
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sale of goods and services
  - 
  2,180 
  - 
  - 
  2,180 
  838 
Supplies and labors
  12,364 
  73 
  - 
  140 
  12,577 
  10,097 
Change in agricultural products and biological assets
  - 
  10,691 
  - 
  - 
  10,691 
  11,407 
Salaries, social security costs and other personnel expenses
  559 
  2,069 
  1,489 
  223 
  4,340 
  5,070 
Depreciation and amortization
  1,191 
  345 
  188 
  8 
  1,732 
  1,775 
Fees and payments for services
  36 
  2,161 
  289 
  280 
  2,766 
  3,247 
Maintenance, security, cleaning, repairs and others
  91 
  1,119 
  279 
  2 
  1,491 
  2,401 
Advertising and other selling expenses
  - 
  268 
  - 
  40 
  308 
  777 
Taxes, rates and contributions
  41 
  352 
  106 
  1,138 
  1,637 
  1,790 
Interaction and roaming expenses
  - 
  29 
  - 
  - 
  29 
  99 
Director's fees
  - 
  - 
  872 
  - 
  872 
  628 
Leases and service charges
  8 
  115 
  34 
  13 
  170 
  211 
Allowance for doubtful accounts, net
  - 
  - 
  - 
  33 
  33 
  209 
Freights
  87 
  13 
  4 
  613 
  717 
  1,324 
Bank expenses
  - 
  1 
  81 
  1 
  83 
  97 
Conditioning and clearance
  - 
  - 
  - 
  108 
  108 
  196 
Travelling, library expenses and stationery
  48 
  24 
  35 
  14 
  121 
  217 
Other expenses
  723 
  22 
  38 
  7 
  790 
  966 
Total as of 03.31.21
  15,148 
  19,462 
  3,415 
  2,620 
  40,645 
  - 
Total as of 03.31.20
    11,748 
  22,642  
  3,625 
  3,334  
  -  
    41,349 
 
(i)
Includes Ps. 25 and Ps. 27 of other agricultural operating costs as of March 31, 2021 and 2020, respectively.
 
 
25.
Other operating results, net
 
 
  03.31.21 
  03.31.20 
(Loss)/ gain from commodity derivative financial instruments
  (3,951)
  563 
Gain/ (loss) from disposal of subsidiaries and associates
  695 
  (8)
Donations
  (111)
  (102)
Lawsuits and other contingencies
  (49)
  (130)
Interest generated by operating credits
  2,832 
  1,604 
Others
  (167)
  155 
Total other operating results, net
  (751)
  2,082 
 
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
31
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
26.
Financial results, net
 
 
  03.31.21 
  03.31.20 
Financial income
    
    
Interest income
  328 
  269 
Dividends income
  - 
  14 
Total financial income
  328 
  283 
Financial costs
    
    
Interest expense
  (8,673)
  (10,129)
Result for debt swap
  (3)
  - 
Other financial costs
  (866)
  (666)
Total financial costs
  (9,542)
  (10,795)
Capitalized finance costs
  399 
  133 
Total finance costs
  (9,143)
  (10,662)
Other financial results:
    
    
Foreign exchange, net
  3,305 
  (11,341)
Fair value gain/ (loss) of financial assets and liabilities at fair value through profit or loss
  8,004 
  (1,417)
(Loss)/ gain from repurchase of Non-convertible notes
  (164)
  124 
(Loss) / gain from derivative financial instruments (except commodities)
  (951)
  16 
Others
  (70)
  - 
Total other financial results
  10,124 
  (12,618)
Inflation adjustment
  15 
  127 
Total financial results, net
  1,324 
  (22,870)
 
27.
Related party transactions
 
The following is a summary of the balances with related parties as of March 31, 2021 and June 30, 2020:
 
Item
  03.31.21 
  06.30.20 
Trade and other receivables
  2,330 
  1,420 
Investments in financial assets
  248 
  364 
Trade and other payables
  (255)
  (441)
Borrowings
  (725)
  (283)
Total
  1,598 
  1,060 
 
Related party
 
  03.31.21 
  06.30.20 
Description of transaction
Rubro
Condor
  344 
  325 
Public companies' securities
Investments in financial assets
 
  265 
  - 
Loans granted
Trade and other receivables
 
  35 
  39 
Others
Investments in financial assets
 
  4 
  - 
Other receivables
Trade and other receivables
New Lipstick LLC
  22 
  22 
Reimbursement of expenses
Trade and other receivables
 
  - 
  (104)
Borrowings
Borrowings
Other associates and joint ventures
  8 
  114 
Leases and/or rights of use receivable
Trade and other receivables
 
  (3)
  - 
Leases and/or rights of use to pay
Trade and other payables
 
  204 
  275 
Dividends receivables
Trade and other receivables
 
  (2)
  - 
Contributions pending integration
Trade and other payables
 
  - 
  11 
Management fees receivable
Trade and other receivables
 
  (131)
  - 
Non-convertible notes
Investments in financial assets
 
  (21)
  - 
Other liabilities
Trade and other payables
 
  1 
  - 
Equity incentive plan receivable
Trade and other receivables
 
  80 
  - 
Loans granted
Trade and other receivables
 
  (637)
  (37)
Borrowings
Borrowings
 
  3 
  164 
Reimbursement of expenses
Trade and other receivables
 
  12 
  - 
Management fees receivable
Trade and other receivables
 
  23 
  - 
Other receivables
Trade and other receivables
 
  (8)
  - 
Lease liabilities
Trade and other payables
 
  - 
  (1)
Reimbursement of expenses to pay
Trade and other payables
Total associates and joint ventures
  199 
  808 
 
 
CAMSA and its subsidiaries
  - 
  1 
Reimbursement of expenses
Trade and other receivables
 
  - 
  (257)
Management fee payables
Trade and other payables
Yad Levim LTD
  1,528 
  - 
Loans granted
Trade and other receivables
IRSA Real Estate Strategies LP
  - 
  157 
Reimbursement of expenses
Trade and other receivables
PBS Real Estate Holdings S.R.L
  - 
  566 
Reimbursement of expenses
Trade and other receivables
BHN Vida
  - 
  (70)
Non-convertible notes
Borrowings
Otras partes relacionadas (i)
  145 
  - 
Other receivables
Trade and other receivables
 
  (1)
  - 
Other payables
Trade and other payables
 
  (88)
  (72)
Borrowings
Borrowings
 
  15 
  - 
Loans granted
Trade and other receivables
 
  (29)
  - 
Management fee payables
Trade and other payables
 
  15 
  97 
Reimbursement of expenses
Trade and other receivables
 
  (1)
  - 
Legal services
Trade and other payables
Total other related parties
  1,584 
  422 
 
 
IFISA
  - 
  8 
Loans granted
Trade and other receivables
Total direct parent company
  - 
  8 
 
 
Directors and Senior Management
  (190)
  (183)
Fees
Trade and other payables
 
  5 
  5 
Advances receivable
Trade and other receivables
Total Directors and Senior Management
  (185)
  (178)
 
 
Total
  1,598 
  1,060 
 
 
 
(i)
Includes Estudio Zang, Bergel & Viñes, Museo de los Niños, Hamonet S.A., CAM Communication L.P., Gary Goldstein, Fundación IRSA, Lartiyrigoyen and SAMSA.
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
32
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
The following is a summary of the results with related parties for the nine-month periods ended March 31, 2021 and 2020:
 
Related party
  03.31.21 
  03.31.20 
Description of transaction
Agrofy S.A.
  - 
  3 
Income from agricultural sales and services
 
  - 
  10 
Financial operations
BACS
  32 
  58 
Leases and/or rights of use
Other associates and joint ventures
  (5)
  10 
Leases and/or rights of use
 
  - 
  (177)
Corporate services
 
  4 
  46 
Financial operations
Total associates and joint ventures
  31 
  (50)
 
Other related parties (i)
  1 
  6 
Leases and/or rights of use
 
  - 
  (29)
Fees and remunerations
 
  (21)
  - 
Legal services
 
  - 
  (26)
Financial operations
 
  (18)
  - 
Donations
Total other related parties
  (38)
  (49)
 
IFISA
  - 
  6 
Financial operations
Total Parent Company
  - 
  6 
 
Directors
  - 
  (61)
Compensation of Directors and senior management
 
  (530)
  (468)
Fees
Senior Management
  (24)
  (40)
Compensation of Directors and senior management
Total Directors and Senior Management
  (554)
  (569)
 
Total
  (561)
  (662)
 
 
(i)
Includes Estudio Zang, Bergel & Viñes, Fundación IRSA, Ramat Hanassi, Austral Gold Argentina S.A., Isaac Elsztain e Hijos, Hamonet S.A., LRSA, New Lipstick, BHN Vida S.A, TGLT S.A. and BHSA.
 
The following is a summary of the transactions with related parties for the nine-month periods ended March 31, 2021 and 2020:
 
Related party
  03.31.21 
  03.31.20 
Description of transaction
Agrofy Global
  - 
  298 
Irrevocable contributions
Quality
  22 
  56 
Irrevocable contributions
IBC
  - 
  3,194 
Capitalized borrowing
Manibil
  - 
  118 
Irrevocable contributions
Others
  - 
  110 
Irrevocable contributions
Total contributions
  22 
  3,776 
 
Agro-Uranga S.A.
  67 
  33 
Dividends received
Uranga trading
  14 
  - 
Dividends received
Condor
  - 
  37 
Dividends received
Emco
  - 
  23 
Dividends received
Gav-Yam
  - 
  1,806 
Dividends received
Nuevo Puerto Santa Fe S.A.
  - 
  51 
Dividends received
Shufersal
  - 
  546 
Dividends received
Total dividends received
  81 
  2,496 
 
Puerto Retiro
  14 
  - 
Capitalized borrowing
TGLT S.A.
  - 
  2,944 
Buy and change of shares
Total other transactions
  14 
  2,944 
 
 
 
28.
CNV General Resolution N° 622
 
As required by Section 1°, Chapter III, Title IV of CNV General Resolution N° 622, below there is a detail of the notes to this Financial Statements that disclose the information required by the Resolution in Exhibits.
 
Exhibit A - Property, plant and equipment
 
Note 8 - Investment properties
 
 
Note 9 - Property, plant and equipment
Exhibit B - Intangible assets
 
Note 11 - Intangible assets
Exhibit C - Equity investments
 
Note 7 - Investments in associates and joint ventures
Exhibit D - Other investments
 
Note 15 - Financial instruments by category
Exhibit E - Provisions
 
Note 19 - Provisions
Exhibit F - Cost of sales and services provided
 
Note 29 - Cost of sales and services provided
Exhibit G - Foreign currency assets and liabilities
 
Note 30 - Foreign currency assets and liabilities
 
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
33
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
29.
Cost of goods sold and services provided
 
Description
 
 
Cost of sales and services from agricultural business (i)
 
 
Cost of sales and services from sales and services from urban properties and investment business (ii)
 
 
Total as of 03.31.21
 
 
Total as of 03.31.20
 
Inventories at the beginning of the period / year
  8,860 
  16,049 
  24,909 
  23,260 
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
  4,603 
  - 
  4,603 
  1,789 
Changes in the net realizable value of agricultural products after harvest
  271 
  - 
  271 
  501 
Additions
  24 
  - 
  24 
  3,415 
Currency translation adjustment
  (741)
  (5,056)
  (5,797)
  13,621 
Transfers
  101 
  - 
  101 
  - 
Harvest
  6,570 
  - 
  6,570 
  7,890 
Acquisitions and classifications
  7,286 
  28,222 
  35,508 
  43,582 
Consume
  (2,686)
  - 
  (2,686)
  (2,986)
Disposals due to sales
  - 
  (1,118)
  (1,118)
  (5,200)
Deconsolidation
  - 
  (4,246)
  (4,246)
  (2,959)
Expenses incurred
  3,111 
  - 
  3,111 
  3,237 
Inventories at the end of the period / year
  (8,463)
  (1,720)
  (10,183)
  (21,132)
Cost as of 03.31.21
  18,936 
  32,131 
  51,067 
  - 
Cost as of 03.31.20
  22,121 
  42,897 
  - 
  65,018 
 
(i) 
Includes biological assets (see Note 13).
(ii) 
Includes trading properties (see Note 10).
 
 
30.
Foreign currency assets and liabilities
 
Book amounts of foreign currency assets and liabilities are as follows:
 
Item (3) / Currency
 
 Amount of foreign currency (2)
 
 
 Prevailing exchange rate (1)
 
 
 Total as of 03.31.21
 
 
 Total as of 06.30.20
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other receivables
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
  89.78 
  91.80 
  8,242 
  6,250 
Euros
  0.27 
  107.64 
  29 
  1,191 
Trade and other receivables related parties
    
    
    
    
US Dollar
  0.04 
  92.00 
  4 
  405 
Total Trade and other receivables
    
    
  8,275 
  7,846 
Investment in financial assets
    
    
    
    
US Dollar
  18.58 
  91.80 
  1,706 
  5,239 
New Israel Shekel
  19.68 
  27.54 
  542 
  - 
Pounds
  0.58 
  126.58 
  74 
  106 
Total Investment in financial assets
    
    
  2,322 
  5,345 
Derivative financial instruments
    
    
    
    
US Dollar
  0.29 
  91.80 
  27 
  111 
Total Derivative financial instruments
    
    
  27 
  111 
Cash and cash equivalents
    
    
    
    
US Dollar
  35.88 
  91.80 
  3,294 
  21,040 
Euros
  - 
  - 
  - 
  2,097 
Brazilian Reais
  6.97 
  15.50 
  108 
  - 
Uruguayan pesos
  0.50 
  1.99 
  1 
  - 
Total Cash and cash equivalents
    
    
  3,403 
  23,137 
Total Assets
    
    
  14,027 
  36,439 
 
    
    
    
    
Liabilities
    
    
    
    
Trade and other payables
    
    
    
    
US Dollar
  46.42 
  92.00 
  4,271 
  19,882 
Euros
  - 
  - 
  - 
  413 
Uruguayan pesos
  452.27 
  1.99 
  901 
  - 
New Israel Shekel
  5.59 
  27.54 
  154 
  - 
Total Trade and other payables
    
    
  5,326 
  20,295 
Borrowings
    
    
    
    
US Dollar
  0.75 
  92.00 
  69 
  124,799 
Total Borrowings
    
    
  69 
  124,799 
Derivative financial instruments
    
    
    
    
US Dollar
  10.09 
  92.00 
  928 
  390 
Total Derivative financial instruments
    
    
  928 
  390 
Total Liabilities
    
    
  6,323 
  145,484 
 
(1)
Exchange rates as of March 31, 2021 according to Banco Nación Argentina.
(2)
Considering foreign currencies those that differ from each Group’s subsidiaries functional currency at each period/year-end.
(3)
The Company uses derivative instruments as a complement in order to reduce its exposure to exchange rate movements (Note 15).
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
34
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
31.
Groups of assets and liabilities held for sale
 
The Group has certain assets and liabilities classified as held for sale. The following table presents the main ones:
 
 
  03.31.21 
  06.30.20 
Property, plant and equipment
  - 
  49,706 
Intangible assets
  - 
  1,855 
Investments in associates
  - 
  303 
Deferred income tax assets
  - 
  1,102 
Income tax credit
  - 
  4 
Inventories
  - 
  481 
Trade and other receivables
  - 
  3,548 
Cash and cash equivalents
  - 
  2,316 
Total group of assets held for sale
  - 
  59,315 
Trade and other payables
  - 
  14,067 
Payroll and social security liabilities
  - 
  674 
Employee benefits
  - 
  523 
Deferred and current income tax liabilities
  - 
  2,682 
Provisions
  - 
  16 
Borrowings
  - 
  14,052 
Total group of liabilities held for sale
  - 
  32,014 
Total net financial assets held for sale
  - 
  27,301 
 
32.
Results from discontinued operations
 
The results of the discontinued operations include the IDBD / DIC and Carnes Pampeanas operations which were deconsolidated in the current period (see Note 4) and the results of the comparative periods have been reclassified.
 
 
  03.31.21 
  03.31.20 
Revenues
  38,497 
  114,056 
Costs
  (31,630)
  (81,860)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
  - 
  119 
Gross profit
  6,867 
  32,315 
Net loss from fair value adjustment of investment properties
  (25)
  (3,687)
General and administrative expenses
  (4,029)
  (10,092)
Selling expenses
  (4,258)
  (14,423)
Impairment of associate
  - 
  (3,344)
Other operating results, net (i)
  (2,323)
  24,825 
(Loss)/ profit from operations
  (3,768)
  25,594 
Share of profit of joint ventures and associates
  648 
  1,233 
(Loss)/ profit from operations before financing and taxation
  (3,120)
  26,827 
Financial income
  481 
  1,163 
Finance costs
  (6,235)
  (19,032)
Other financial results
  408 
  (9,956)
Inflation adjustment
  80 
  115 
Financial results, net
  (5,266)
  (27,710)
Loss before income tax
  (8,386)
  (883)
Income tax
  284 
  (185)
Loss for the period from discontinued operations
  (8,102)
  (1,068)
 
    
    
(Loss)/ profit for the period from discontinued operations attributable to:
    
    
Equity holders of the parent
  (510)
  (4,980)
Non-controlling interest
  (7,592)
  3,912 
 
    
    
Loss per share from discontinued operations attributable to equity holders of the parent:
    
    
Basic
  (0.964)
  (10.123)
Diluted
  (0.964)
  (10.123)
 
(i) As of March 31, 2021 corresponds mainly to the loss of control of IDBD by ARS 3,625; As of March 31, 2020, it mainly corresponds to the result from the loss of control of Gav-Yam by ARS 24,806 and the fair value measurement of the remaining investment.
 
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
35
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
33.
Other relevant events of the period
 
Share capital increase
 
On February 17, 2021, the Company announced the launch of its public offering of shares for up to 90 million shares (or its equivalent 9 million ADS) and 90,000,000 warrants to subscribe for new common shares, to registered holders as of February 19, 2021. Each right corresponding to one share (or ADS) allowed its holder to subscribe 0.1794105273 new ordinary shares and receive free of charge an option with the right to subscribe 1 additional ordinary share in the future. The final subscription price for the new shares was Ps. 70.31 or US$ 0.472 and for the new ADS it was US$ 4.72. The new shares, registered, of Ps. 1 (one peso) of par value each and with the right to one vote per share gives the right to receive dividends under the same conditions as the current shares in circulation.
 
On March 5, 2021, having finished the pre emptive rights subscription period, the Company's shareholders have subscribed the amount of 87,264,898 new additional shares, that is 97% of the shares offered, and have requested through the accretion right 26,017,220 additional new shares, for which 2,735,102 new shares will be issued, completing the total issuance of 90,000,000 new shares (or their equivalent in ADSs) offered. Likewise, 90,000,000 options will be issued that will entitle the holders through their exercise to acquire up to 90,000,000 additional new shares.
 
Likewise, 90,000,000 options were issued that will empower shareholders through their exercise to acquire up to 90,000,000 new shares. The exercise price of the warrants will be US$ 0.566. The warrants may be exercised quarterly from the 90th day of their issuance on the 17th to the 25th (inclusive) of the months of February, May, September, and November of each year (provided that dates are business days in the city of New York and in the Autonomous City of Buenos Aires) until their expiration 5 years from the date of issue. These options have been considered as equity instruments.
 
The Company received all the funds in the amount of US $ 42.5 and issued the new shares, increasing the capital share to 591,642,804 million.
 
Public offering of shares issued by BrasilAgro
 
On January 25, 2021, our subsidiary BrasilAgro announced that the Board of Directors approved the public offering of primary and secondary distribution of shares with restricted placement efforts. In accordance with CVM Instruction 476 (“Restricted Offer”), with the primary public distribution of 20,000,000 new shares (“Primary Offer”). In addition, the number of shares initially offered could, at the discretion of the Company, Autonomy Luxembourg One, as selling shareholder ("Selling Shareholder") and the coordinators of the offering, by mutual agreement, approved an increase of up to 27.35 % of the total shares initially offered, that is, up to 5,470,710 shares held by the Selling Shareholder, under the same conditions and for the same price of the shares initially offered, which will be used to meet any excess demand that may be found when the Price per Share is set ("Secondary Offer" and "Additional Shares", respectively). BrasilAgro will not receive funds as a result of the Secondary Offer, as these funds belong entirely to the Selling Shareholder.
 
The Restricted Offer was carried out in Brazil, in an unorganized OTC market, under the coordination of the BTG Pactual Bank of XP Investimentos, in the area of the Restricted Offer, and simultaneously efforts were made to place shares abroad by BTG Pactual. Capital of the United States.
 
With the completion of the Restricted Offer procedures, the 20,000,000 shares offered in the Primary Offer and 2,735,355 shares in the Secondary Offer were traded, with a price per share set at R$ 22.00. The resources received in the Primary Offer represent an increase of R$ 440 thousand in the Company's capital stock, which will go from R $699,811 to R$ 1,139,811, divided into 82,104,301 ordinary shares, all registered, registered and without value nominal.
 
The funds will be used to: (i) acquire assets in Bolivia, (ii) acquire land for exploration and development of agricultural properties, and (iii) businesses to optimize and leverage the operating activities of the Company.
 
Cresud participated in the aforementioned increase to maintain its ownership interest, during the secondary issuance none of the remaining shareholders supposes any indication that Cresud does not have control over its subsidiary.

 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
36
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Economic context in which the Group operates
 
The Group does business in a complex framework due to the macroeconomic conditions, whose main variables have recently shown high volatility, and also due to regulatory, social and political conditions, both at a national and international level.
 
Its operating income may be affected by fluctuations in the inflation index and the argentine peso exchange rate against other currencies, mainly the dollar, variations in interest rates which have an impact on the cost of capital, changes in government policies, capital control and other political or economic developments both locally and internationally.
 
In December 2019, a new coronavirus strain (SARS-COV-2), causing a severe acute respiratory syndrome (COVID-19), appeared in Wuhan, China. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic. In response, countries have taken extraordinary actions intended to prevent the spread of the virus, including, travel bans, border shutdowns, closing of non-essential businesses, instructions to residents to practice social distancing and implementation of lockdowns, among others. The ongoing pandemic and these extraordinary governmental actions are affecting the worldwide economy and have rendered global financial markets highly volatile.
 
On March 3, 2020, the first case of COVID-19 was registered in the country and as of today, more than 3,000,000 cases of infections had been confirmed in Argentina, by virtue of which the Argentinian Government implemented a series of health measures of social, preventive and mandatory isolation at the national level with the closure of non-essential activities, including shopping centers, as well as the suspension of flights and border closures, for much of the year 2020. Since October 2020, a large part of the activities began to become more flexible, in line with a decrease in infections, although as of April 16, 2021, because of the sustained increase in the cases registered, the National Government, through Decrees 241/2021 and 287/2021, established restrictions on night activity and the closure of shopping centers in Buenos Aires Metropolitan Área until May 21 inclusive, keeping 44% of the Company’s portfolio operative in GLA terms.
 
These measures have significantly affected Argentine companies, which have faced drops in income and the deterioration of their flow of payments. In this context, the Argentine Government announced several actions intended to tackle the financial crisis of the companies adversely affected by the COVID-19 pandemic. In addition to the stagnation of the Argentine economy, there is an international crisis caused by the COVID-19 pandemic. In this scenario, a strong contraction of the Argentine economy was evidenced.
 
At the local environment, the following circumstances may be noted:
 
● 
In February 2021, an indicator called “Monthly Estimator of Economic Activity” (“EMAE”) reported by the National Institute of Statistics and Censuses (“INDEC”), registered a variation of (2.6%) compared to the same month of 2020, and from (1.0%) compared to the previous month.
● 
The annual inflation reached 42.65% in 2020. The market expectations survey prepared by Central Bank in March 2021, called the Market Expectations Survey (“REM” in Spanish), estimates a retail inflation of 46.0% for 2021. The analysts who participate in the REM foresee that in 2021 economic activity will rebound in activity, reaching an economic growth of 6.7%.
● 
In the period from March 2020 to March 2021, the argentine peso depreciated 42.7% compared to the US dollar at the average wholesale exchange rate quoted by Banco de la Nación Argentina. Given the exchange restrictions in force since August 2019, as of March 31, 2021 the exchange gap between the official peso/US dollar exchange rate and the peso/US dollar exchange rate offered in the black market is almost 70%. This has an impact on the level of economic activity and detrimentally affects the reserves of the of the Argentine Central Bank. In addition, the current foreign exchange restrictions or those that may be imposed in the future may impair the Company’s ability to access the Sole Free FX Market (Mercado Único Libre de Cambio or MULC) to purchase the currency required to meet its financial obligations.
 
On February 25, 2021, the Argentine Central Bank published Communication “A” 7230 which establishes that those who register financial debts with capital maturities in foreign currency scheduled between 04.01.2021 and 12.31.2021, must submit to the Argentine Central Bank a refinancing plan based on the following criteria: (a) that the net amount for which the exchange market will be accessed in the original terms will not exceed 40% of the principal amount due in the indicated period above, and (b) that the rest of the capital is, at least, refinanced with a new external debt with an average life of 2 years, provided that the new debt is settled in the exchange market. In the case of the Company, the maturity of the Class XXV Notes due on July 11, 2021 for a nominal value of US$ 59.6 million is part of this regulation, as well as other bank debts.
 
 
 
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PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
37
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
COVID-19 PANDEMIC
 
As described in the note on the economic context in which the Group operates, the COVID-19 pandemic is adversely impacting both the global economy and the Argentine economy and the Group's business.
 
The current estimated impacts of the COVID-19 pandemic on the Company as of the date of these financial statements are set out below:
 
Cresud and its subsidiary BrasilAgro continued to operate normally during the pandemic as it was the essential agricultural activity in the provision of food.
During the third quarter of fiscal year 2021, the Group's shopping malls have operated under strict protocols and a gradual, although sustained, recovery of activity was evidenced since the reopening in October 2020. After the closing, by Decrees 241 / 2021 and 287/2021 of the National Executive Power, the shopping malls of the Metropolitan Area of Buenos Aires suspended their operations from April 16th to May 21st, inclusive, operating only those activities considered essential such as pharmacies, supermarkets and banks.
In relation rental of offices, although most of the tenants are working in the home office mode, they are operational with strict safety and hygiene protocols. To date, we have registered a slight increase in vacancies, although we have not evidenced a deterioration in collections.
La Rural, the Buenos Aires and Punta del Este Convention Centers and the DIRECTV Arena stadium, establishments that the Group owns directly or indirectly, remain closed since March 20, 2020.
The Libertador and Intercontinental hotels in Buenos Aires City have been operating since December 2020 with low occupancy levels. Llao Llao Resort, in Bariloche City, was able to operate during the quarter with average occupancy levels because of domestic tourism.
 
Regarding the financial debt of the Group in the next 12 months:
 
Cresud faces the maturity of its Class XXVIII in April 2021 for a nominal value of US$ 27.5, Classes XXV and XXVII in July 2021 for a nominal value of US$ 59.6 and US$ 5.7 respectively and Class XXIX in December 2021 for a nominal value of US$ 83.0. Likewise, Cresud has bank overdrafts for US$ 23.2 and other bank debt for US$ 38.3. As of March 31, it had a liquidity position of approximately US$ 35.8.
 
The subsidiary IRSA faces the maturity of its Class IV notes for a nominal value of USD 46.5 due on May 21, 2021 (net of repurchases), Class VI notes for a nominal value of ARS 335 (equivalent to USD 3.7) due July 21, 2021, Class VIII notes for a nominal value of USD 10.5 (33% of the capital) maturing on November 12, 2021, Class VII notes for a nominal value of USD 33.7 due on January 21, 2022, Class X notes for a nominal value of ARS 701.5 (equivalent to USD 7.6) due March 31, 2022, bank overdrafts for an equivalent of USD 4.0 and other banking debt for USD 13.7. For its part, IRSA PC does not have short-term debt maturities, except bank overdrafts for an equivalent of USD 62.5 and other banking debt for USD 11.7.
 
It is important to mention that IRSA has approved with IRSA PC a credit line for up to the sum of USD 180 for 3 years, of which as of March 31, 2021 IRSA used approximately USD 72.1, leaving the balance available. Likewise, IRSA PC has a cash position and equivalents (including current financial investments) as of March 31, 2021 of approximately USD 95.5.
 
The final extent of the Coronavirus outbreak and its impact on the country's economy is unknown and difficult to fully predict. However, although it has produced significant short-term effects, they are not expected to affect business continuity and the Company’s ability to meet financial commitments for the next twelve months.
 
The Company is closely monitoring the situation and taking all necessary measures to preserve human life and the Group's businesses.
 
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PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
38
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
34.
Subsequent events
 
Share capital increase of IRSA
 
On April 12, 2021, the Company announced the launch of its public offering of shares for up to 80 million shares (or its equivalent 8 million GDS) and 80 million warrants to subscribe for new common shares, to registered holders as of April 16, 2021. Each right corresponding to one share (or GDS) allowed its holder to subscribe 0.1382465082 new ordinary shares and receive free of charge an option with the right to subscribe 1 additional ordinary share in the future. The final subscription price for the new shares was ARS 58.35 or USD 0.36 and for the new GDS it was USD 3.60. The new shares, registered, of ARS 1 (one peso) of par value each and with the right to one vote per share gives the right to receive dividends under the same conditions as the current shares in circulation.
 
On May 6, 2021, having finished the preemptive rights subscription period, the Company's shareholders have subscribed the amount of 79,144,833 new additional shares, that is 99% of the shares offered, and have requested through the accretion right 15,433,539 additional new shares, for which 855,167 new shares will be issued, completing the total issuance of 80 million new shares (or their equivalent in GDS) offered. Likewise, 80 million options will be issued that will entitle the holders through their exercise to acquire up to 80 million additional new shares.
 
The exercise price of the warrants will be USD 0.432. The warrants may be exercised quarterly from the 90th day of their issuance on the 17th to the 25th (inclusive) of the months of February, May, September, and November of each year on the business day prior to maturity and on the date of maturity (if dates are business days in the city of New York and in the Autonomous City of Buenos Aires) until their expiration 5 years from the date of issue.
 
As of the date of issuance of these financial statements, the Company is in the process of liquidating the capital increase, which upon completion will receive funds for USD 28.8, increasing the capital stock to 658,676,460.
 
BrasilAgro warrants
 
On May 15, 2021, the expiration of the BrasilAgro warrants is established, of which Cresud owns, directly and indirectly, 181,368 that give it the right to acquire 14,542,083 new shares. The intention of the Company is to exercise, partially or totally, said warrants. The strike price is approximately R $ 22.12 per share.
 
Véase nuestro informe de fecha 09/1
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
39
 
 
REVIEW REPORT ON THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 
To the Shareholders, President and Directors of
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Legal address: Carlos Della Paolera 261, 9° floor
Autonomous City of Buenos Aires
Tax Registration Number: 30-50930070-0
 
Introduction
 
We have reviewed the accompanying unaudited condensed interim consolidated financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (“the Company”), which comprise the unaudited condensed interim separate statement of financial position at March 31, 2021, the unaudited condensed interim consolidated statements of income and other comprehensive income, of changes in shareholders’ equity and of cash flows for the nine and three-month period then ended, and selected explanatory notes.
 
The balances and other information for the fiscal year ended on June 30, 2020 and its interim periods are an integral part of the financial statements mentioned above; therefore, they must be considered in connection with these financial statements.
 
Management’s responsibility
The Board of Directors of the Company is responsible for the preparation and presentation of these unaudited condensed interim consolidated financial statements in accordance with International Financial Reporting Standards, adopted by the Argentine Federation of Professional Councils in Economic Sciences (FACPCE) as professional accounting standards and included by the National Securities Commission (CNV) in its regulations, as approved by the International Accounting Standards Board (IASB), and is therefore responsible for the preparation and presentation of the unaudited condensed interim consolidated financial statements mentioned in the first paragraph, in accordance with International Accounting Standard 34 Interim Financial Information (IAS 34).
 
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
40
 
 
Scope of our review
 
Our review was limited to the application of the procedures established under International Standards on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity, adopted as a review standard in Argentina by Technical Pronouncement No. 33 of the FACPCE and approved by the International Auditing and Assurance Standards Board (IAASB). A review of interim financial information consists of inquiries of Company staff responsible for preparing the information included in the unaudited condensed interim consolidated financial statements and of analytical and other review procedures. This review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the consolidated statements of financial position, and the consolidated statements of income and other comprehensive income and of cash flows of the Company.
 
Conclusion
On the basis of our review, nothing has come to our attention that causes us to believe that the unaudited condensed interim consolidated financial statements mentioned in the first paragraph of this report have not been prepared, in all material respects, in accordance with International Accounting Standard 34 Interim Financial Reporting.
 
Report on compliance with current regulations
In accordance with current regulations, we report, in connection with Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, that:
 
a) the unaudited condensed interim consolidated financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria are not transcribed into the Inventory and Balance Sheet book and, except for the above mentioned situation, as regards those matters that are within our competence, they are in compliance with the provisions of the General Companies Law and pertinent resolutions of the National Securities Commission;
 
b) the unaudited condensed interim consolidated financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria arise from accounting records carried in all formal aspects in accordance with legal requirements;
 
c) we have read the additional information to the notes to the unaudited condensed interim consolidated financial statements required by section 12, Chapter III, Title IV of the rules of the National Securities Commission, on which we have no observations to make regarding matters that are within our competence;
 
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
41
 
  
d) at March 31, 2021 the debt of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria accrued in favor of the Argentine Integrated Social Security System, as shown by the Company’s accounting records, amounted to $ 22,775,284, which is not due at that date.

Autonomous City of Buenos Aires, May 11, 2021
 

PRICE WATERHOUSE & CO. S.R.L.
                                                                    (Partner)
 
C.P.C.E.C.A.B.A. V° 1 F° 17
 
Walter Zablocky
Public Accountant (UNLP)
C.P.C.E.C.A.B.A. V. 340 F. 156
 
 
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S
C.P.C.E.C.A.B.A. T° 1 F° 17
 
42
 
 
 
  
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Unaudited Condensed Interim Separate Financial Statements as of March 31, 2021 and for the period of nine months ending on that date, presented in comparative form
 
 
 
 
 

 
 
43
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Separate Statements of Financial Position
as of March 31, 2021, and June 30, 2020
(All amounts in millions of Argentine Pesos, except as otherwise indicated)
 
Free translation from the original prepared in Spanish for publication in Argentina
 
 
Note
  03.31.21 
  06.30.20 
ASSETS
 
    
    
Non-current assets
 
    
    
Investment properties
7
  307 
  146 
Property, plant and equipment
8
  8,001 
  8,139 
Intangible assets
9
  268 
  282 
Right of use assets
10
  1,922 
  1,021 
Biological assets
11
  2,553 
  1,940 
Investments in subsidiaries, associates and joint ventures
6
  62,395 
  65,047 
Income tax and minimum presumed income tax credit
 
  38 
  51 
Trade and other receivables
14
  856 
  1,106 
Total Non-current assets
 
  76,340 
  77,732 
Current assets
 
    
    
Biological assets
11
  4,971 
  1,489 
Inventories
12
  1,322 
  2,768 
Trade and other receivables
14
  4,725 
  3,359 
Investment in financial assets
13
  1,559 
  68 
Derivative financial instruments
13
  36 
  - 
Cash and cash equivalents
13
  1,249 
  7,695 
Total Current assets
 
  13,862 
  15,379 
TOTAL ASSETS
 
  90,202 
  93,111 
SHAREHOLDERS’ EQUITY
 
    
    
Shareholders´ equity (according to corresponding statements)
 
  34,227 
  31,444 
TOTAL SHAREHOLDERS' EQUITY
 
  34,227 
  31,444 
LIABILITIES
 
    
    
Non-current liabilities
 
    
    
Borrowings
18
  17,720 
  27,696 
Deferred tax liabilities
19
  6,629 
  5,066 
Provisions
17
  8 
  12 
Lease Liabilities
 
  471 
  265 
Total Non-current liabilities
 
  24,828 
  33,039 
Current liabilities
 
    
    
Trade and other payables
16
  4,671 
  2,697 
Payroll and social security liabilities
 
  311 
  263 
Borrowings
18
  24,683 
  25,025 
Derivative financial instruments
13
  580 
  43 
Provisions
17
  5 
  4 
Lease Liabilities
 
  897 
  596 
Total Current liabilities
 
  31,147 
  28,628 
TOTAL LIABILITIES
 
  55,975 
  61,667 
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES
 
  90,202 
  93,111 
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.

 
CRESUD S.A.C.I.F. y A.
 
 
 
 
 

By:  
/s/  Alejandro G. Elsztain
 
 
 
Name  Alejandro G. Elsztain
 
 
 
Title  Vicepresident II
 
 
 
 
44
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Separate Statements of Income and Other Comprehensive Income for the nine-month and three-month periods ended March 31, 2021 and 2020
 (All amounts in millions of Argentine Pesos, except as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
 
Nine months
 
 
Three months
 
 
Note
  03.31.21 
  03.31.20 
  03.31.21 
  03.31.20 
Revenues
20
  5,603 
  8,709 
  1,232 
  1,888 
Costs
21
  (4,632)
  (6,655)
  (1,037)
  (1,290)
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
 
  2,613 
  803 
  2,487 
  1,057 
Changes in the net realizable value of agricultural products after harvest
 
  354 
  636 
  26 
  (79)
Gross profit
 
  3,938 
  3,493 
  2,708 
  1,576 
Net (loss)/gain from fair value adjustment of investment properties
 
  (5)
  17 
  (5)
  (1)
General and administrative expenses
22
  (567)
  (504)
  (208)
  (138)
Selling expenses
22
  (822)
  (1,474)
  (126)
  (325)
Other operating results, net
23
  (624)
  (137)
  845 
  (254)
Profit from operations
 
  1,920 
  1,395 
  3,214 
  858 
Share of loss of subsidiaries, associates and joint ventures
6
  (4,693)
  (7,107)
  (6,111)
  (7,202)
Loss before financing and taxation
 
  (2,773)
  (5,712)
  (2,897)
  (6,344)
Finance income
24
  233 
  19 
  4 
  8 
Finance costs
24
  (3,041)
  (3,461)
  (491)
  (1,291)
Other financial results
24
  4,585 
  (4,923)
  4,499 
  339 
Inflation Adjustment
24
  176 
  (16)
  (536)
  41 
Financial results, net
24
  1,953 
  (8,381)
  3,476 
  (903)
(Loss) / profit before income tax
 
  (820)
  (14,093)
  579 
  (7,247)
Income tax
19
  (1,541)
  (1,032)
  (1,231)
  (535)
Loss for the period
 
  (2,361)
  (15,125)
  (652)
  (7,782)
 
    
    
    
    
Other comprehensive loss:
 
    
    
    
    
Items that may be reclassified subsequently to profit or loss:
 
    
    
    
    
Currency translation adjustment from subsidiaries and associates
 
  (3,773)
  (3,038)
  (2,057)
  (2,078)
Participation in other comprehensive results of subsidiaries and associates
 
  494 
  (128)
  494 
  9 
Revaluation surplus
 
  68 
  - 
  68 
  - 
Other comprehensive loss the period
 
  (3,211)
  (3,166)
  (1,495)
  (2,069)
Total comprehensive loss for the period
 
  (5,572)
  (18,291)
  (2,147)
  (9,851)
 
    
    
    
    
Loss per share attributable to equity holders of the parent during the period:
 
    
    
    
    
Basic
 
  (4.463)
  (30.745)
  (1.233)
  (15.818)
Diluted
 
  (4.463) (i)
  (30.745) (i)
  (1.233) (i)
  (15.818) (i)
 
(i)     Since the result of the period showed loss, there is no dilutive effect of said result.
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statement
 
 
CRESUD S.A.C.I.F. y A.
 
 
 
 
 

By:  
/s/  Alejandro G. Elsztain
 
 
 
Name  Alejandro G. Elsztain
 
 
 
Title  Vicepresident II
 
  
 
 
45
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Separate Statements of Changes in Shareholders’ Equity
for the nine-month period ended March 31, 2021
(All amounts in millions, except as otherwise indicated)
Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
 Share capital
 
 
 Treasury shares
 
 
 Inflation adjustment of share capital and treasury shares (i)
 
 
 Warrants (ii)
 
 
 Share premium
 
 
 Additional paid-in capital from treasury shares
 
 
 Legal reserve
 
 
 Special reserve RG 609/12 (iii)
 
 
 Other reserves (iv)
 
 
 Retained earnings
 
 
 Total Shareholders' equity
 
Balance as of June 30, 2020
  499 
  3 
  13,425 
  - 
  14,339 
  122 
  505 
  2,013 
  1,199 
  (661)
  31,444 
Loss for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (2,361)
  (2,361)
Other comprehensive loss for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (3,211)
  - 
  (3,211)
Total comprehensive loss for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (3,211)
  (2,361)
  (5,572)
As provided by Ordinary and Extraordinary Shareholders´ Meeting held on October 26, 2020:
    
    
    
    
    
    
    
    
    
    
    
 - Constitution of Legal Reserve
  - 
  - 
  - 
  - 
  - 
  - 
  129 
  - 
  - 
  (129)
  - 
 - Share capital increase
  90 
  - 
  - 
  1,328 
  2,783 
  - 
  - 
  - 
  - 
  - 
  4,201 
Other changes in subsidiaries’ equity
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  4,401 
  - 
  4,401 
Changes in non-controlling interest
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (247)
  - 
  (247)
Balance as of March 31, 2021
  589 
  3 
  13,425 
  1,328 
  17,122 
  122 
  634 
  2,013 
  2,142 
  (3,151)
  34,227 
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.
 
(i)
    Includes Ps. 1 and Ps. 1 of inflation adjustment of Treasury shares as of March 31, 2021 and June 30,2020, respectively.
(ii)
    See note 33 to the condensed consolidated intermediate financial statement
(iii)
Corresponding to General Resolution 609/12 of the National Securities Commission.
(iv)
Group’s Other reserves at March 31, 2021 are comprised as:
 
 
 
 Cost of treasury shares
 
 
 Changes in non-controlling interest
 
 
 Reserve for currency translation adjustment
 
 
 Revaluation surplus
 
 
 Other comprehensive income
 
 
 Reserve for share-based payments
 
 
 Special reserves
 
 
 Other subsidiary reserves
 
 
 Reserve for the acquisition of securities issued by the Company
 
 
 Total Other reserves
 
Balance as of June 30, 2020
  (203)
  (4,667)
  4,070 
  - 
  1,105 
  669 
  - 
  91 
  134 
  1,199 
Other comprehensive loss for the period
  - 
  - 
  (3,773)
  68 
  494 
  - 
  - 
  - 
  - 
  (3,211)
Total comprehensive loss for the period
  - 
  - 
  (3,773)
  68 
  494 
  - 
  - 
  - 
  - 
  (3,211)
Other changes in subsidiaries equity
  - 
  (43)
  3,938 
  - 
  596 
  - 
  - 
  (90)
  - 
  4,401 
Changes in non-controlling interest
  - 
  (247)
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (247)
Balance as of March 31, 2021
  (203)
  (4,957)
  4,235 
  68 
  2,195 
  669 
  - 
  1 
  134 
  2,142 
 
There are no cumulative unpaid dividends on preferred shares.
 
 
CRESUD S.A.C.I.F. y A.
 
 
 
 
 

By:  
/s/  Alejandro G. Elsztain
 
 
 
Name  Alejandro G. Elsztain
 
 
 
Title  Vicepresident II
 
  
 
 
46
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Separate Statements of Changes in Shareholders’ Equity
for the nine-month period ended March 31, 2021
(All amounts in millions, except as otherwise indicated)
 Free translation from the original prepared in Spanish for publication in Argentina
 
 
 
 
 Share capital
 
 
 Treasury shares
 
 
 Inflation adjustment of share capital and treasury shares (i)
 
 
 Share premium
 
 
 Additional paid-in capital from treasury shares
 
 
 Legal reserve
 
 
 Special reserve RG 609/12 (ii)
 
 
 Other reserves (iii)
 
 
 Retained earnings
 
 
 Total Shareholders' equity
 
Balance as of June 30, 2019
  486 
  16 
  13,425 
  14,339 
  124 
  504 
  7,981 
  48,571 
  (53,346)
  32,100 
Adjustments previous periods (NIIF 9 y 15)
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (1,103)
  (1,103)
Adjusted balance as of June 30, 2019
  486 
  16 
  13,425 
  14,339 
  124 
  504 
  7,981 
  48,571 
  (54,449)
  30,997 
Loss for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (15,125)
  (15,125)
Other comprehensive loss for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (3,166)
  - 
  (3,166)
Total comprehensive loss for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (3,166)
  (15,125)
  (18,291)
As provided by Ordinary Shareholders’ Meeting held and Extraordinary Shareholders’ Meeting held on October 30, 2019:
    
    
    
    
    
    
    
    
    
    
 - Loss absorption
  - 
  - 
  - 
  - 
  - 
  - 
  (5,968)
  (47,377)
  53,345 
  - 
  - Treasury shares distribution
  13 
  (13)
  - 
  - 
  - 
  - 
  - 
  2,047 
  (2,047)
  - 
 - Reserve for shared-based payments
  - 
  - 
  - 
  - 
  (1)
  - 
  - 
  (4)
  - 
  (5)
Changes in non-controlling interest
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (613)
  - 
  (613)
Other changes in subsidiaries´ equity
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  19 
  19 
Balance as of March 31, 2020
  499 
  3 
  13,425 
  14,339 
  123 
  504 
  2,013 
  (542)
  (18,257)
  12,107 
 
The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.
 
(i) Includes Ps. 1 and Ps. 1 of inflation adjustment of Treasury shares as of March 31, 2020 and June 30, 2019, respectively.
(ii)  Corresponding to General Resolution 609/12 of the National Securities Commission.
(iii) Group’s Other reserves at March 31, 2020 are comprised as:
 
 
 
Cost of treasury shares
 
 
Changes in non-controlling interest
 
 
Reserve for currency translation adjustment
 
 
 Other comprehensive income / (loss)
 
 
Reserve for share-based payments
 
 
 Special reserves
 
 
Other subsidiary reserves
 
 
Reserve for the acquisition of securities issued by the Company
 
 
Total Other reserves
 
Balance as of June 30, 2019
  (2,252)
  (4,541)
  6,189 
  1,003 
  650 
  47,377 
  11 
  134 
  48,571 
Other comprehensive loss for the period
  - 
  - 
  (3,038)
  (128)
  - 
  - 
  - 
  - 
  (3,166)
Total comprehensive loss for the period
  - 
  - 
  (3,038)
  (128)
  - 
  - 
  - 
  - 
  (3,166)
As provided by Ordinary Shareholders’ Meeting held and Extraordinary Shareholders’ Meeting held on October 30, 2019:
    
    
    
    
    
    
    
    
    
 - Loss absorption
  - 
  - 
  - 
  - 
  - 
  (47,377)
  - 
  - 
  (47,377)
  - Treasury shares distribution
  2,047 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  2,047 
 - Reserve for share-based payments
  3 
  - 
  - 
  - 
  (1)
  - 
  (6)
  - 
  (4)
Changes in non-controlling interest
  - 
  (613)
  - 
  - 
  - 
  - 
  - 
  - 
  (613)
Balance as of March 31, 2020
  (202)
  (5,154)
  3,151 
  875 
  649 
  - 
  5 
  134 
  (542)
 
 
 
 
 
 
47
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Condensed Interim Separate Statements of Cash Flows
for the nine-month periods ended March 31, 2021 and 2020
(All amounts in millions of Argentine Pesos, except as otherwise indicated) 
Free translation from the original prepared in Spanish for publication in Argentina

 
 
Note
  03.31.21 
  03.31.20 
Operating activities:
 
    
    
Cash (used in) / generated from operations
15
  (7,090)
  2,842 
Net cash (used in) /generated from operating activities
 
  (7,090)
  2,842 
Investing activities:
 
    
    
Acquisition of interest in subsidiaries, associates and joint ventures
 
  (296)
  - 
Capital contribution to subsidiaries, associates and joint ventures
6
  (97)
  (256)
Acquisition of property, plant and equipment
8
  (116)
  (304)
Proceeds from sale of property, plant and equipment
 
  14 
  11 
Proceeds from sale of subsidiaries, associates and joint ventures
 
  895 
  1,260 
Acquisition of Intangible assets
9
  (1)
  (7)
Acquisition of investment in financial instruments
 
  (10,288)
  (1,104)
Proceeds from disposals of investment in financial assets
 
  12,256 
  1,187 
Proceeds from loans granted to subsidiaries, associates and joint ventures
 
  323 
  - 
Advance payments
 
  (28)
  (34)
Sale of farmlands advances
 
  - 
  - 
Dividends received
 
  587 
  311 
Interest collected
 
  142 
  - 
Loans granted to subsidiaries, associates and joint ventures
 
  - 
  (1,710)
Net cash generated from / (used in) investing activities
 
  3,391 
  (646)
Financing activities:
 
    
    
Borrowings and issue non- convertible notes
 
  8,776 
  8,918 
Payment of borrowings and non - convertible notes
 
  (10,707)
  (1,804)
Obtaining of short-term loans, net
 
  (2,917)
  (6,396)
Payments from derivative financial instruments
 
  (387)
  (41)
Share capital increase
 
  4,202 
  - 
Interest paid
 
  (2,330)
  (1,690)
Net cash used in from financing activities
 
  (3,363)
  (1,013)
Net (decrease)/increase in cash and cash equivalents
 
  (7,062)
  1,183 
Cash and cash equivalents at beginning of the period
 
  7,695 
  197 
Result from exposure to inflation on cash and cash equivalents
 
  18 
  6 
Currency translation adjustment on cash and cash equivalents
 
  598 
  79 
Cash and cash equivalents at the end of the period
 
  1,249 
  1,465 
  
                 The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.
 
 
CRESUD S.A.C.I.F. y A.
 
 
 
 
 

By:  
/s/  Alejandro G. Elsztain
 
 
 
Name  Alejandro G. Elsztain
 
 
 
Title  Vicepresident II
 
 
 
48
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria

1.
General information
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (“Cresud” or the “Company”) was founded in 1936 as a subsidiary of Credit Foncier, a Belgian company primarily engaged in providing rural and urban loans in Argentina and administering real estate holdings foreclosed by Credit Foncier. Credit Foncier was liquidated in 1959, and as part of such liquidation, the shares of Cresud were distributed to Credit Foncier’s shareholders. From the 1960s through the end of the 1970s, the business of Cresud shifted exclusively to agricultural activities.
 
Cresud is a company organized and domiciled in the Republic of Argentina. The address of its registered office is Della Paolera 261, 9 rd Floor, Buenos Aires, Argentina.
 
These Unaudited Condensed Interim Separate Financial Statements have been approved for issue by the Board of Directors on May 11, 2021.
 
2.
Basis of preparation of the Unaudited Condensed Interim Separate Financial Statements
 
2.1.
Basis of preparation
 
              The National Securities Commission (CNV), in Title IV "Periodic Information Regime" - Chapter III "Rules relating to the presentation and valuation of financial statements" - Article 1, of its standards, has established the application of the Technical Resolution No. 26 (RT 26) of the FACPCE and its amendments, which adopt FRS, issued by the IASB, for certain companies included in the public offering regime of Law No. 17.811, either because of its stock or its non-convertible notes, or that have requested authorization to be included in the aforementioned regime.
 
For the preparation of these solo financial statements, the Company has used the option provided in IAS 34, and has prepared them in condensed form. Therefore, these financial statements do not include all the information required in a complete set of annual financial statements and, consequently, their reading is recommended together with the annual financial statements as of June 30, 2020.
 
In view of what has been mentioned in the preceding paragraphs, the management of the Company has prepared these financial statements in accordance with the accounting principles established by the CNV, which is based on the application of IFRS, in particular of IAS 34.
 
Additionally, the information required by the CNV indicated in article 1, Chapter III, Title IV of RG N ° 622/13 has been included. This information is included in a note to these solo financial statements.
 
IAS 29 "Financial information in hyperinflationary economies" requires that the financial statements of an entity, whose functional currency is that of a high inflation economy, be expressed in terms of the unit of measurement current at the closing date of the period on the reported, regardless of whether they are based on the historical cost method or the current cost method. For this, in general terms, the inflation produced from the
 
 
 
 
49
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
acquisition date or from the revaluation date, as appropriate, must be computed in non-monetary items. These requirements also include the comparative information of the financial statements.
 
In order to conclude on whether an economy is categorized as high inflation in the terms of IAS 29, the standard details a series of factors to consider, including the existence of an accumulated rate of inflation in three years that is approaches or exceeds 100%. The accumulated inflation in three years is above 100%. It is for this reason that, according to IAS 29, the Argentine economy must be considered as having high inflation as of July 1, 2018.
 
In addition, Law No. 27,468 (published in the Official Gazette on December 4, 2018), amended Section 10 of Law No. 23,928, as amended, and established that the derogation of all the laws or regulations imposing or authorizing price indexation, monetary restatement, cost variation or any other method for strengthening debts, taxes, prices or rates of goods, works or services, does not extend to financial statements, as to which the provisions of Section 62 in fine of the General Companies Law No. 19,550 (1984 revision), as amended, shall continue to apply. Moreover, the referred law repealed Decree No. 1269/2002 dated July 16, 2002, as amended, and delegated to the Argentine Executive Branch the power to establish, through its controlling agencies, the effective date of the referred provisions in connection with the financial statements filed with it. Therefore, under General Resolution 777/2018 (published in the Official Gazette on December 28, 2018) the Argentine Securities Commission (CNV) ordered that issuers subject to its supervision shall apply the inflation adjustment to reflect the financial statements in terms of the current measuring unit set forth in IAS 29 in their annual, interim and special financial statements closed on or after December 31, 2018.
 
Pursuant to IAS 29, the financial statements of an entity whose functional currency is that of a high inflationary economy should be reported in terms of the measuring unit current as of the date of the financial statements. All the amounts included in the statement of financial position which are not stated in terms of the measuring unit current as of the date of the financial statements should be restated applying the general price index. All items in the statement of income should be stated in terms of the measuring unit current as of the date of the financial statements, applying the changes in the general price index occurred from the date on which the revenues and expenses were originally recognized in the financial statements.
 
Adjustment for inflation in the initial balances has been calculated considering the indexes reported by the Argentine Federation of Professional Councils in Economic Sciences (FACPCE) based on the price indexes published by the Argentine Institute of Statistics and Census (INDEC).
 
The principal inflation adjustment procedures are the following:
 
 Monetary assets and liabilities that are recorded in the current currency as of the balance sheet’s closing date are not restated because they are already stated in terms of the currency unit current as of the date of the financial statements.
 
 Non-monetary assets and liabilities are recorded at cost as of the balance sheet date, and equity components are restated applying the relevant adjustment ratios.
 
 All items in the statement of income are restated applying the relevant conversion factors.
 
 The effect of inflation in the Company’s net monetary position is included in the statement of income under Financial results, net, in the item “Income / (loss) from exposure to changes in the currency’s purchasing power”.
 
 Comparative figures have been adjusted for inflation following the procedure explained in the previous paragraphs.
 
Upon initially applying inflation adjustment, the equity accounts were restated as follows:
 
 Capital was restated as from the date of subscription or the date of the most recent inflation adjustment for accounting purposes, whichever is later.
 
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
50
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
  
 The resulting amount was included in the “Capital adjustment” account.
 
 The conversion difference was restated in real terms (as applicable).
 
 Other comprehensive income / (loss) was restated as from each accounting allocation.
 
The other reserves in the statement of income were not restated as of the initial application date, i.e., June 30, 2016.
 
2.2.
Accounting policies
 
The accounting policies applied in the preparation of these Unaudited Condensed Interim Financial Statements are consistent with those applied in the Annual Financial Statements as of June 30, 2020.
 
2.3.
Comparative information
 
The balances as of June 30, 2020 and March 31, 2020, which are disclosed for comparative purposes, arise from the financial statements at such dates restated in accordance with IAS 29.
 
2.4.
Use of estimates
 
The preparation of financial statements at a certain date requires the Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Future results might differ from the estimates and evaluations made at the date of preparation of these Unaudited Condensed Interim Separate Financial Statements.
 
In the preparation of these Unaudited Condensed Interim Separate Financial Statements, the significant judgments made by Management in applying the Company’s accounting policies and the main sources of uncertainty were the same applied by the Company in the preparation of the Separate Financial Statements for the fiscal year ended June 30, 2020, described in Note 3 to them.
 
3.
Seasonal effects on operations
 
The operations of the Company are also subject to seasonal effects. The harvests and sale of grains (corn, soybean and sunflower) generally take place between January and September every year. Wheat is generally harvested between November and February every year. However, milk production is generally larger during the second quarter, when conditions are more favorable. As a result, there may be material fluctuations in the agricultural business results each quarter.
 
4.
Acquisitions and disposals
See summary of acquisitions and additional disposals of the Company for the nine-month period ended March 31, 2021 in Note 4 to Unaudited Condensed Interim Consolidated Financial Statements.
 
5.
Financial risk management and fair value estimates
 
5.1.            
Financial risk
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
51
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
The Company’s activities are exposed to several financial risks, market risk (including exchange rate risk, interest rate risk and price risk), credit risk, liquidity risk and capital risk.
 
The Unaudited Condensed Interim Separate Financial Statements do not include all the information and disclosures of the risk management, so they should be read together with the Annual Separate Financial Statements as of June 30, 2020. There have been no significant changes in the risk management or risk management policies applied by the Company since the fiscal year.
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
52
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria

5.2.            
Fair value estimates
 
Since June 30, 2020, to the balance sheet date, there have been no significant changes in business or economic circumstances affecting the fair value of the Company's financial assets, liabilities or biological assets (either measured at fair value or amortized cost). Nor there have been transfers between the several hierarchies used in estimating the fair value of the Company’s financial instruments, or reclassifications among their respective categories.
 
6.
Information about principal subsidiaries and associates
 
The Company conducts its business through several subsidiaries and associates.
 
The Company indirectly participated, until September 30, 2020, through Tyrus, in IDB Development Ltd. (“IDBD”) and Discount Investment Company Ltd (“DIC”). These companies have certain financial restrictions and agreements in relation to their financial debt, including their debentures and loans with banks and financial institutions. These commitments and other restrictions resulting from the indebtedness of IDBD and DIC (such as the pledges granted by IDBD over part of its shareholding in DIC) do not have recursive effects against Cresud, nor has Cresud guaranteed them with its assets, so the economic risk of Cresud is limited to the value of said investments.
 
IDBD's financial condition as of June 25, 2020 had a deficit in shareholders’ equity, ongoing negative cash flows from continuing operating activities and a low credit rating. IDBD´s cash flow required to meet its liabilities, including short-term liabilities is based on the financial support of its controlling shareholder (Dolphin Netherlands BV) and on the realization of assets which the realization date is not under IDBD´s control. As a result of the above, IDBD had into negotiations with its creditors in order to restructure its financial debt on more favorable terms. As a result, the Company recognized an impairment loss of Ps. 1,489 in its separate financial statements as of June 30, 2020, equivalent to the net value of its investment in IDBD and DIC as of that date.
 
As of June 30, 2020, the aggregate principal amount of the (i) IDBD Series 9 Bonds was NIS 901 million (“Series 9”), (ii) IDBD Series 14 Bonds was NIS 889 million collateralized by DIC shares owned directly or indirectly by IDBD representing 70% of the share capital of DIC (“Series 14”), (iii) IDBD Series 15 Bonds was NIS 238 million collateralized by shares of Clal representing 5% of the share capital of Clal (“Series 15”).
 
 As no agreement has been reached, on September 17, 2020, the Series 9 trustee submitted to the District Court in Tel-Aviv-Jaffa (the "Court") a petition to grant an order for the opening of proceedings for IDBD pursuant to the Insolvency and Economic Rehabilitation Law, 5778 – 2018 and to instruct the appointment of a trustee for IDBD pursuant to Section 43 and to grant the trustee any and all authority over the decision making of IDBD.
 
On September 21, 2020, the Series 14 bond holders approved the immediate fully payment of the remaining balances of such series.
 
On September 22, 2020, IDBD and Dolphin Netherlands B.V. submitted an initial response to the Petition, arguing that it was in the best interest of IDBD and its creditors to exhaust the negotiations among the controlling shareholder and its creditors during a short period with the aim to maximize the value of its assets, avoid costs and additional negative effects.
 
On September 25, 2020, the Court resolved that IDBD is insolvent and therefore it resolved to grant all three orders requested and accordingly, issued an order for the initiation of proceedings and liquidation of IDBD, and appointed a liquidator to IDBD and interim receivers over the Pledged DIC and Clal Shares.
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
53
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
Under IFRS 10 “Consolidated Financial Statements” (“IFRS 10”), an investor controls an investee if and only if the investor has all the following: a) power over the investee; b) exposure, or rights, to variable returns from its involvement with the investee; and c) the ability to use its power over the investee to affect the amount of the investor’s returns. Based on the facts and circumstances outlined above, our management believes that, as from September 25, 2020, Cresud through its subsidiary IRSA lost control over IDBD and DIC and consequently it has derecognized the reserves disclosed in other comprehensive income associated with said investments, recognizing a loss of Ps. 3,652 in the nine-month period ended March 31, 2021.
 
Set out below are the changes in Company’s investment in subsidiaries and associates for the nine-month period ended March 31, 2021 and for the fiscal year ended June 30, 2020:
 
 
  03.31.21 
  06.30.20 
Beginning of the period / year
  65,047 
  55,461 
Dividends in shares received from subsidiaries
  - 
  409 
Capital contribution
  2,223 
  8,523 
Sale of interest in subsidiaries
  (13)
  (8,160)
Increase of interest in subsidiaries, associates and joint ventures
  - 
  11 
Share of (loss)/profit of subsidiaries and associates
  (4,693)
  12,921 
Foreign exchange gains
  (3,773)
  (2,118)
Other changes in subsidiaries’ and associates´ equity
  3,547 
  (56)
Adjustments previous periods (IFRS 16 y IAS 28)
  - 
  (1,102)
Other comprehensive income
  1,090 
  77 
Reserve for share-based payments
  - 
  (4)
Dividends distributed
  (1,033)
  (915)
End of the period / year
  62,395 
  65,047 
 
(i)
Includes the effect of changes in subsidiaries as consequence of repurchase of equity interest.
 
See changes in Company’s investment in associates and joint ventures for the nine-month period ended March 31, 2021 in Note 7 to the Unaudited Condensed Interim Consolidated Financial Statements and for the year ended June 30, 2020 in Note 8 to the Annual Consolidated Financial Statements.
 
 
 
% of ownership interest
 
 
Registered value
 
 
Entity's interest in comprehensive loss
 
Name of the entity
  03.31.21 
  06.30.20 
  03.31.21 
  06.30.20 
  03.31.21 
  03.31.20 
Subsidiaries
    
    
    
    
    
    
Brasilagro Companhia Brasileira de Propriedades Agrícolas
  1.69%
  2.25%
  899 
  992 
  (85)
  (599)
Agropecuaria Santa Cruz de la Sierra S.A. (formerly Doneldon S.A.)
  100.00%
  100.00%
  2,192 
  2,234 
  (43)
  257 
Futuros y Opciones.Com S.A.
  50.10%
  50.10%
  683 
  619 
  110 
  260 
Amauta Agro S.A. (formerly FyO Trading S.A.)
  2.20%
  2.20%
  1 
  1 
  (1)
  - 
FyO Acopio S.A. (formerly Granos Olavarría S.A.)
  2.20%
  2.20%
  16 
  14 
  7 
  3 
Helmir S.A.
  100.00%
  100.00%
  14,562 
  12,185 
  261 
  340 
Sociedad Anómina Carnes Pampeanas S.A.
  - 
  99.70%
  - 
  370 
  (60)
  (47)
IRSA Inversiones y Representaciones Sociedad Anónima
  61.89%
  61.95%
  42,193 
  46,442 
  (8,000)
  (10,503)
IRSA Propiedades Comerciales S.A.
  3.36%
  2.62%
  1,320 
  1,623 
  (205)
  (71)
Total Subsidiaries
    
    
  61,866 
  64,480 
  (8,016)
  (10,360)
 
    
    
    
    
    
    
Associates
    
    
    
    
    
    
Agrouranga S.A.
  35.72%
  35.72%
  419 
  452 
  35 
  73 
Uranga Trading S.A.
  35.72%
  35.72%
  110 
  115 
  9 
  14 
Total Associates
    
    
  529 
  567 
  44 
  87 
 
Total Investments in subsidiaries, associates and join ventures
 
  62,395 
  65,047 
  (7,972)
  (10,273)
 
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
54
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
 
 
 
 
 
 
 
 
 
 
Last financial statement issued
 
Name of the entity
 
Market value as of 03.31.21
 
Place of business / country of incorporation
Main activity
 
Amount of common shares 1 vote
 
 
Common shares (nominal value)
 
 
Income /(loss) for the period
 
 
Shareholders' equity
 
Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brasilagro Companhia Brasileira de Propriedades Agrícolas
  25.00 
Brazil
Agricultural
  1,334,400 
  2,497 
  1 
  32,724 
Agropecuaria Santa Cruz de la Sierra S.A. (formerly Doneldon S.A.)
 
Not publicly traded
 
Uruguay
Investment
  270,749,722 
  271 
  (185)
  2,192 
Futuros y Opciones.Com S.A.
 
Not publicly traded
 
Argentina
Brokerage
  817,683 
  2 
  218 
  1,363 
Amauta Agro S.A. (formerly FyO Trading S.A.)
 
Not publicly traded
 
Argentina
Brokerage
  11,264 
  1 
  (46)
  37 
FyO Acopio S.A. (formerly Granos Olavarría S.A.)
 
Not publicly traded
 
Argentina
Warehousing and Brokerage
  506,440 
  23 
  323 
  723 
Helmir S.A.
 
Not publicly traded
 
Uruguay
Investment
  229,368,798 
  229 
  261 
  14,362 
Sociedad Anómina Carnes Pampeanas S.A.
 
Not publicly traded
 
Argentina
Agroindustrial
  496,050,301 
  498 
  (54)
  317 
IRSA Inversiones y Representaciones Sociedad Anónima
  50.80 
Argentina
Real Estate
  356,913,421 
  577 
  (8,773)
  67,922 
IRSA Propiedades Comerciales S.A.
  287.50 
Argentina
Real Estate
  126,014,050 
  126 
  (4,780)
  80,341 
 
    
 
 
    
    
    
    
 
    
 
 
    
    
    
    
Associates
    
 
 
    
    
    
    
Agrouranga S.A.
 
Not publicly traded
 
Argentina
Agricultural
  2,595,620 
  7 
  98 
  344 
Uranga Trading S.A.
 
Not publicly traded
 
Argentina
Marketing, warehousing and processing
  653,369 
  2 
  26 
  309 
 
 
7.
Investment properties
 
Changes in Company’s investment properties for the nine-month period ended March 31, 2021 and for the fiscal year ended June 30, 2020 were as follows:
 
 
  03.31.21 
  06.30.20 
Beginning of the period / year
  146 
  145 
Transfers
  166 
  - 
Changes in fair value
  (5)
  1 
End of the period / year
  307 
  146 
 
During the period ended March 31, 2021 and for the year ended June 30, 2020, there were no financial costs activated as there have been no assets that qualify for capitalization. No investment property of the Company has been mortgaged to guarantee some of the Company´s loans.
 
The amounts recognized in the statement of income and other comprehensive income are not material for any of the exercises analyzed.
 
As described in Note 2.6 to the consolidated financial statements, the Group uses the valuation made by qualified external appraisers to determine the fair value of its investment properties. Fair values are based on comparable values (Level 2 of the fair value hierarchy). The sales prices of comparable land are adjusted taking into account the specific aspects of each land, the most important used premise being the price per hectare.
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
55
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
  
8.
Property, plant and equipment
 
Changes in Company’s property, plant and equipment for the nine-month period ended March 31, 2021 and for the fiscal year ended June 30, 2020 were as follows:
 
 
 
 Owner occupied farmland (ii)
 
 
 Others
 
 
 Total as of 03.31.21
 
 
 Total as of 06.30.20
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Costs
  9,159 
  500 
  9,659 
  9,449 
Accumulated depreciation
  (1,199)
  (321)
  (1,520)
  (1,340)
Net book amount at the beginning of the period / year
  7,960 
  179 
  8,139 
  8,109 
Additions
  104 
  12 
  116 
  236 
Disposals
  (12)
  (3)
  (15)
  (14)
Transfers
  (105)
  - 
  (105)
  (12)
Depreciation charge (i)
  (96)
  (38)
  (134)
  (180)
Balances at the end of the period / year
  7,851 
  150 
  8,001 
  8,139 
 
    
    
    
    
Costs
  9,146 
  509 
  9,655 
  9,659 
Accumulated depreciation
  (1,295)
  (359)
  (1,654)
  (1,520)
Net book amount at the end of the period / year
  7,851 
  150 
  8,001 
  8,139 
 
(i)
For the fiscal years ended March 31, 2021 and June 30, 2020, the depreciation expense of property, plant and equipment has been charged as follows: Ps. 15 and Ps. 18 in "Costs"; Ps. 3 and Ps. 11 in “General and administrative expenses” and Ps. 1 and Ps. 1 in “Selling expenses” in “the Statement of Income and Other Comprehensive Income"; Ps. 116 and Ps. 150 were capitalized as part of the biological assets costs.
(ii)
Includes farms, buildings and facilities of farmlands properties.
 
 
9.
Intangible assets
 
Changes in Company’s intangible assets for the nine-month period ended as of March 31, 2021 and for the fiscal year ended as of June 30, 2020 were as follows:
 
 
 
Computer software
 
 
Concession rights
 
 
Total as of 03.31.21
 
 
Total as of 06.30.20
 
Costs
  32 
  447 
  479 
  467 
Accumulated amortization
  (20)
  (177)
  (197)
  (184)
Net book amount at the beginning of the period / year
  12 
  270 
  282 
  283 
Additions
  1 
  - 
  1 
  8 
Transfers
  - 
  - 
  - 
  3 
Amortization charges (i)
  (4)
  (11)
  (15)
  (12)
Balances at the end of the period / year
  9 
  259 
  268 
  282 
Costs
  33 
  447 
  480 
  479 
Accumulated amortization
  (24)
  (188)
  (212)
  (197)
Net book amount at the end of the period / year
  9 
  259 
  268 
  282 
 
(i)
Amortization charges are included in “General and administrative expenses” in the Statement of Income and Other Comprehensive Income. There are no impairment charges for any of the years presented.
 
 
10.
Right of use assets
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
56
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
The composition in the Company's rights of use assets for the nine-month period ended as of March 31, 2021 and for the fiscal year ended as of June 30, 2020 is as follows
 
 
  03.31.21 
  06.30.20 
Non Current
    
    
Owner occupied farmland
  1,853 
  1,017 
Offices
  66 
  - 
Machines and equipment
  3 
  4 
Total Right-of-use assets
  1,922 
  1,021 
  
The amortization charge of the right-of-use assets is detailed below:
 
 
  03.31.21 
  03.31.20 
Owner occupied farmland
  171 
  80 
Offices
  13 
  - 
Machines and equipment
  - 
  4 
Total amortization of Right-of-use assets
  184 
  84 
 
11.
Biological assets
 
Changes in the Company’s biological assets for the nine-month period ended as of March 31, 2021 and for the fiscal year ended as of June 30, 2020 were as follows:
 
 
 
Sown land-crops
 
 
Breeding cattle
 
 
Other cattle
 
 
Others
 
   
   
 
 
Level 1
 
 
Level 3
 
 
Level 2
 
 
Level 2
 
 
Level 1
 
 
Total as of 03.31.21
 
 
Total as of 06.30.20
 
Net book amount at the beginning of the period / year
  208 
  854 
  2,285 
  39 
  43 
  3,429 
  4,520 
Purchases
  - 
  - 
  265 
  4 
  - 
  269 
  20 
Changes by transformation
  (152)
  152 
  - 
  - 
  - 
  - 
  - 
Initial recognition and changes in the fair value of biological assets
  - 
  2,198 
  425 
  (24)
  - 
  2,599 
  120 
Decrease due to harvest
  - 
  (2,271)
  - 
  - 
  - 
  (2,271)
  (6,326)
Sales
  - 
  - 
  (1,051)
  (2)
  - 
  (1,053)
  (1,507)
Consumes
  - 
  - 
  (5)
  - 
  (6)
  (11)
  (15)
Costs for the period
  1,129 
  2,518 
  889 
  23 
  3 
  4,562 
  6,617 
Balances at the end of the period / year
  1,185 
  3,451 
  2,808 
  40 
  40 
  7,524 
  3,429 
 
    
    
    
    
    
    
    
Non-current (production)
  - 
  - 
  2,482 
  31 
  40 
  2,553 
  1,940 
Current (consumable)
  1,185 
  3,451 
  326 
  9 
  - 
  4,971 
  1,489 
Net book amount at the end of the period / year
  1,185 
  3,451 
  2,808 
  40 
  40 
  7,524 
  3,429 
 
During the nine-month period ended March 31, 2021 and the year ended June 30, 2020 there have been transfers by Ps.152 between the fair value hierarchies 1 and 3 of sown land-crops (due to the degree of phenological growth of the crop). Likewise, there were no reclassifications among their respective categories.
 
See information on valuation processes used by the entity in Note 14 to the Consolidated Financial Statements as of June 30, 2020.
 
As of March 31, 2021, and June 30, 2020, the better and maximum use of biological assets shall not significantly differ from the current use.
 
12.
Inventories
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
57
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
               Breakdown of Company’s inventories as of March 31, 2021 and June 30, 2020 are as follows:
 
 
  03.31.21 
  06.30.20 
Current
    
    
Crops
  320 
  1,462 
Materials and supplies
  6 
  5 
Seeds and fodders
  996 
  1,301 
Total inventories
  1,322 
  2,768 
 
 As of March 31, 2021, and June 30, 2020 the cost of inventories recognized as expense amounted to Ps. 3,451 and Ps. 7,590, respectively and they have been included in “Costs” in the Unaudited Condensed Interim Separate Statement of Income and Other Comprehensive Income.
 
13.
Financial instruments by category
 
Determining fair values
 
See determination of the fair value of the Company's financial instruments in Note 16 to the Annual Consolidated Financial Statements as of June 30, 2020.
 
The following tables present the Company’s financial assets and financial liabilities that are measured at fair value as of March 31, 2021 and June 30, 2020 and their allocation to the fair value hierarchy:
 
 
 
 Financial assets at amortized cost
 
 
 Financial assets at fair value through profit or loss
 
 
 Subtotal financial assets
 
 
 Non-financial assets
 
 
 Total
 
March 31, 2021
 
 
 
 
 Level 1
 
 
 Level 2
 
 
 
 
 
 
 
 
 
 
Assets as per statement of financial position
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables) (Note 14)
  4,327 
  - 
  - 
  4,327 
  1,262 
  5,589 
Investment in financial assets
    
    
    
    
    
    
Bonds
  - 
  1,559 
  - 
  1,559 
  - 
  1,559 
Derivative financial instruments
    
    
    
    
    
    
 - Foreign-currency futures contracts
  - 
  26 
  10 
  36 
  - 
  36 
Cash and cash equivalents
    
    
    
    
    
    
 - Cash on hand and at bank
  475 
  74 
  - 
  549 
  - 
  549 
 - Short-term investments
  - 
  700 
  - 
  700 
  - 
  700 
Total assets
  4,802 
  2,359 
  10 
  7,171 
  1,262 
  8,433 
 
    
    
    
    
    
    
 
 
 
Financial liabilities at amortized cost
 
 
Financial liabilities at fair value
 
 
Subtotal financial liabilities
 
 
Non-financial liabilities
 
 
Total
 
March 31, 2021
 
 
 
 
 Level 1
 
 
 
 
 
 
 
 
 
 
Liabilities as per statement of financial position
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and others payables (Note 16)
  3,631 
  - 
  3,631 
  1,040 
  4,671 
Borrowings (Note 18)
  42,403 
  - 
  42,403 
  - 
  42,403 
Derivative financial instruments:
    
    
    
    
    
 - Foreign-currency contracts
  - 
  580 
  580 
  - 
  580 
Total Liabilities
  46,034 
  580 
  46,614 
  1,040 
  47,654 
 
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
58
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
 
 
 Financial assets at amortized cost
 
 
 Financial assets at fair value through profit or loss
 
 
 Subtotal financial assets
 
 
 Non-financial assets
 
 
 Total
 
June 30, 2020
 
 
 
 
 Level 1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets as per statement of financial position
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other receivables (excluding the allowance for doubtful accounts and other receivables) (Note 14)
  3,709 
  - 
  3,709 
  766 
  4,475 
Investment in financial assets
    
    
    
    
    
 - Mutual funds
  - 
  68 
  68 
  - 
  68 
Cash and cash equivalents
    
    
    
    
    
 - Cash on hand and at bank
  420 
  - 
  420 
  - 
  420 
 - Short-term investments
  1,540 
  5,735 
  7,275 
  - 
  7,275 
Total assets
  5,669 
  5,803 
  11,472 
  766 
  12,238 
 
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
59
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
 
 
Financial liabilities at amortized cost
 
 
Financial liabilities at fair value
 
 
Subtotal financial liabilities
 
 
Non-financial liabilities
 
 
Total
 
June 30, 2020
 
 
 
 
 Level 1
 
 
 Level 2
 
 
 
 
 
 
 
 
 
 
Liabilities as per statement of financial position
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and others payables (Note 16)
  2,429 
  - 
  - 
  2,429 
  268 
  2,697 
Borrowings (Note 18)
  52,721 
  - 
  - 
  52,721 
  - 
  52,721 
Derivative financial instruments:
    
    
    
    
    
    
 - Foreign-currency contracts
  - 
  3 
  9 
  12 
  - 
  12 
 - Crops futures contracts
  - 
  31 
  - 
  31 
  - 
  31 
Total Liabilities
  55,150 
  34 
  9 
  55,193 
  268 
  55,461 
 
 
14.
Trade and other receivables
 
Breakdown of the Company’s trade and other receivables as of March 31, 2021 and June 30, 2020 are as follows:
 
 
  03.31.21 
  06.30.20 
Receivables from sale of properties (i)
  1,118 
  1,168 
Receivables from sale of agricultural products and services
  1,852 
  1,278 
Debtors under legal proceedings
  8 
  11 
Less: allowance for doubtful accounts
  (8)
  (10)
Total trade receivables
  2,970 
  2,447 
Prepayments
  53 
  278 
Tax credits
  719 
  393 
Loans
  8 
  16 
Advance payments
  450 
  69 
Expenses to recover
  21 
  15 
Others
  233 
  31 
Total other receivables
  1,484 
  802 
Related parties (Note 25)
  1,127 
  1,216 
Total trade and other receivables
  5,581 
  4,465 
Non-current
  856 
  1,106 
Current
  4,725 
  3,359 
Total trade and other receivables
  5,581 
  4,465 
 
(i) Net of implicit interests
 
The fair value of current trade and other receivables approximate their respective carrying amounts because, due to their short-term nature, as the impact of discounting is not considered significant. Fair values are based on discounted cash flows (Level 2 of fair value hierarchy).
 
The carrying amounts of the Company’s trade and other receivables denominated in foreign currencies are detailed in Note 28.
 
Trade receivables are generally presented in the statement of financial position net of allowances for doubtful receivables. Impairment policies and procedures by type of receivables are discussed in detail in Note 2.16 to the Consolidated Financial Statements as of June 30, 2020.
 
Movements on the Company’s allowance for doubtful accounts are as follows:
 
 
  03.31.21 
  06.30.20 
Beginning of the period / year
  10 
  15 
Additions
  2 
  1 
Inflation Adjustment
  (4)
  (6)
End of the period / year
  8 
  10 
 
The addition and release of allowance for doubtful accounts have been included in “Selling expenses” in the Unaudited Condensed Interim Separate Statement of Income and Other Comprehensive Income (Note 22). Amounts charged to the provision account are generally written off when there is no expectation of recovering additional cash.
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
60
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
15.
Cash flow information
 
Following is a detailed description of cash flows used in the Company’s operations for the nine-month periods ended as of March 31, 2021 and 2020:
 
 
  03.31.21 
  03.31.20 
Loss for the period
  (2,361)
  (15,125)
Adjustments for:
    
    
Income tax
  1,541 
  1,032 
Depreciation and amortization
  46 
  37 
Unrealized gain from derivative financial instruments of commodities
  312 
  (137)
Unrealized loss from derivative financial instruments (except commodities)
  277 
  - 
Changes in fair value of financial assets at fair value through profit or loss
  - 
  (34)
Financial results, net
  (10,173)
  8,122 
Unrealized initial recognition and changes in the fair value of biological assets
  (3,143)
  (2,147)
Changes in net realizable value of agricultural products after harvest
  (354)
  (636)
Provisions
  (28)
  39 
Loss / (Gain) from repurchase of Non-convertible Notes
  (30)
  1 
(Gain)/ Loss from disposal of associates, subsidiaries and joint ventures
  (651)
  364 
Share of loss from participation in asscociates, subsidiaries and joint ventures.
  4,693 
  7,107 
Changes in fair value of investment properties
  5 
  (17)
(Increase)/ decrease in biological assets
  (666)
  1,077 
Decrease in inventories
  1,801 
  2,505 
(Increase)/ decrease in trade and other receivables
  (898)
  126 
Increase in right of use assets
  (1,006)
  (735)
Increase in lease Liabilities
  442 
  432 
Increase in derivative financial instruments
  1,032 
  - 
Decrease in restricted assets
  - 
  64 
Decrease in provisions
  (3)
  (6)
Increase in trade and other payables
  2,026 
  966 
Increase/ (decrease) in payroll and social security liabilities
  48 
  (193)
Net cash (used in) / generated from operating activities before income tax paid
  (7,090)
  2,842 
 
The following table shows a detail of non-cash transactions occurred in the nine-month periods ended as of March 31, 2021 and 2020:
 
 
  03.31.21 
  03.31.20 
Non-cash activities
    
    
Dividends not collected
  40 
  (77)
Decrease of interest in subsidiaries, associates and joint venture by exchange differences on translating foreign operations
  3,772 
  (3,043)
Increase of interest in subsidiaries, associates and joint ventures through a decrease in trade and other receivables
  - 
  3 
Decrease of interest in subsidiaries, associates and joint ventures through reserve for share-based compensation
  406 
  (7)
Increase of other reserves through an increase of interest in subsidiaries, associates and joint ventures
  4,646 
  - 
Increase of interest in subsidiaries, associates and joint ventures through an increase in borrowings
  2,126 
  - 
Increase in the right of use through an increase in the lease liability
  79 
  - 
Decrease in lease liability through a decrease in trade and other receivables
  8 
  - 
Decrease in property, plant and equipment through an increase in investment properties
  105 
  - 
Increase in equity through an increase in investment properties
  68 
  - 
Increase in deferred tax liability through an increase in investment property
  22 
  - 
 
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
61
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
16.
Trade and other payables
 
The detail of the Company’s trade and other payables as of March 31, 2021 and June 30, 2020 are as follows:
 
 
  03.31.21 
  06.30.20 
Trade payables
  1,816 
  745 
Provisions
  1,056 
  994 
Sales, rent and services payments received in advance
  1,017 
  184 
Total trade payables
  3,889 
  1,923 
Tax payables
  6 
  35 
Total other payables
  6 
  35 
Related parties (Note 25)
  776 
  739 
Total trade and other payables
  4,671 
  2,697 
Current
  4,671 
  2,697 
Total trade and other payables
  4,671 
  2,697 
 
The fair value of trade and other payables approximate their respective carrying amounts due to their short-term nature, as the impact of discounting is considered as not significant. Fair values are based on discounted cash flows (Level 2 of fair value hierarchy).
 
Book value of trade and other payables denominated in foreign currencies are detailed in Note 28.
 
17.
Provisions
 
The table below shows the movements in Company's provisions categorized by type of provision:
 
 
 
 Labor and tax claims and other claims
 
 
 Total as of 03.31.21
 
 
 Total as of 06.30.20
 
Beginning of period / year
  16 
  16 
  23 
Additions
  - 
  - 
  1 
Inflation Adjustment
  (3)
  (3)
  (8)
End of period / year
  13 
  13 
  16 
 
    
    
    
Non-current
    
  8 
  12 
Current
    
  5 
  4 
Total
    
  13 
  16 
 
 
18.
Borrowings
 
The detail of the Company’s borrowings as of March 31, 2021 and June 30, 2020 is as follows:
 
 
 
 Book value
 
 
 Fair Value
 
 
  03.31.21 
  06.30.20 
  03.31.21 
  06.30.20 
Non-convertible notes
  30,009 
  34,156 
  28,549 
  31,068 
Bank loans and others
  4,524 
  12,087 
  4,524 
  12,087 
Related parties (Note 25)
  6,117 
  3,965 
  6,069 
  3,678 
Bank overdrafts
  1,753 
  2,513 
  1,753 
  2,513 
Total borrowings
  42,403 
  52,721 
  40,895 
  49,346 
Non-current
  17,720 
  27,696 
    
    
Current
  24,683 
  25,025 
    
    
Total borrowings
  42,403 
  52,721 
    
    
 
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
62
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 

19.
Taxation
 
The detail of the provision for the Company’s income tax is as follows:
 
 
  03.31.21 
  03.31.20 
Deferred income tax
  (1,541)
  (1,032)
Income tax
  (1,541)
  (1,032)
 
The gross movements on the deferred income tax account were as follows:
 
 
  03.31.21 
  06.30.20 
Beginning of the period / year
  (5,066)
  (4,340)
Charged to the Statement of Comprehensive Income
  (1,541)
  (726)
Technical revaluation reserve
  (22)
  - 
End of the period / year
  (6,629)
  (5,066)
 
The Company´s income tax expense charge differs from the theoretical amount that would arise using the weighted average tax rate applicable to Company´s profit before income tax as follows:
 
 
  03.31.21 
  03.31.20 
Tax calculated at the tax applicable tax rate in effect (i)
  246 
  4,229 
Permanent differences:
    
    
Share of profit of subsidiaries, associates and joint ventures
  (1,408)
  (2,302)
Income tax rate change (*)
  178 
  (270)
Provision for unrecoverability of tax loss carry-forwards
  (1,823)
  (2,656)
Result from sale of participation in subsidiaries
  73 
  (298)
Tax Transparency
  671 
  1 
Non-taxable results, non-deductible expenses and others
  (22)
  (10)
Inflation adjustment for tax purposes
  (2,963)
  (2,355)
Inflation Adjustment
  3,507 
  2,629 
Income tax
  (1,541)
  (1,032)
  
(*) 
Each period corresponds to the effect of applying to the deferred tax items the changes in the applicable tax rates.
(i)
The Income Tax rate in effect in Argentina as of March 31, 2021 and 2020 was 30%. See Note 23 to the Annual Consolidated Financial Statements.
 
20.
Revenues
 
 
  03.31.21 
  03.31.20 
Crops
  4,008 
  7,118 
Cattle
  1,336 
  1,250 
Supplies
  4 
  3 
Leases and agricultural services
  255 
  338 
Total revenues
  5,603 
  8,709 
 
21.
Costs
 
 
  03.31.21 
  03.31.20 
Crops
  3,451 
  5,405 
Cattle
  1,065 
  1,013 
Leases and agricultural services
  90 
  208 
Other costs
  26 
  29 
Total costs
  4,632 
  6,655 
 
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
63
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
22.
Expenses by nature
 
 
 
 Costs (i)
 
 
 Cost of production
 
 
 General and administrative expenses
 
 
 Selling expenses
 
 
 Total as of 03.31.21
 
 
 Total as of 03.31.20
 
Supplies and labors
  74 
  3,677 
  - 
  1 
  3,752 
  3,971 
Leases and expenses
  - 
  7 
  19 
  1 
  27 
  34 
Amortization and depreciation
  15 
  286 
  31 
  1 
  333 
  231 
Doubtful accounts (charge and recovery)
  - 
  - 
  - 
  2 
  2 
  - 
Cost of sale of agricultural products and biological assets
  4,516 
  - 
  - 
  - 
  4,516 
  6,418 
Advertising, publicity and other selling expenses
  - 
  - 
  - 
  60 
  60 
  3 
Maintenance and repairs
  3 
  77 
  41 
  1 
  122 
  112 
Payroll and social security liabilities
  17 
  315 
  305 
  29 
  666 
  621 
Fees and payments for services
  4 
  33 
  57 
  20 
  114 
  104 
Freights
  - 
  86 
  1 
  494 
  581 
  1,131 
Bank commissions and expenses
  - 
  - 
  34 
  - 
  34 
  34 
Travel expenses and stationery
  2 
  43 
  10 
  1 
  56 
  67 
Conditioning and clearance
  - 
  - 
  - 
  118 
  118 
  208 
Director’s fees
  - 
  - 
  68 
  - 
  68 
  61 
Taxes, rates and contributions
  1 
  35 
  1 
  94 
  131 
  181 
Total expenses by nature as of 03.31.21
  4,632 
  4,559 
  567 
  822 
  10,580 
  - 
Total expenses by nature as of 03.31.20
  6,655 
  4,543 
  504 
  1,474 
  - 
  13,176 
 
(i)
Include Ps. 26 and Ps. 29 of other agricultural operating costs as of March 31, 2021 and 2020, respectively.
 
23.
Other operating results, net
 
 
  03.31.21 
  03.31.20 
Administration fees
  4 
  3 
(Loss) / gain from commodity derivative financial instruments
  (1,434)
  123 
Interests generated by operating credits
  68 
  90 
Gain / (loss) from disposal of subsidiaries and associates
  651 
  (364)
Gain from sales of propety, plant and equipment
  6 
  - 
Others
  81 
  11 
Total other operating results, net
  (624)
  (137)
 
 
24.
Financial results, net
 
 
  03.31.21 
  03.31.20 
Financial income:
    
    
Interest income
  233 
  19 
Total financial income
  233 
  19 
 
    
    
Financial costs:
    
    
Interest expenses
  (2,799)
  (3,215)
Other financial costs
  (242)
  (246)
Total financial costs
  (3,041)
  (3,461)
 
    
    
Other financial results:
    
    
Exchange rate difference, net
  869 
  (5,386)
Fair value gains of financial assets at fair value through profit or loss
  4,047 
  233 
(Loss)/gain from derivative financial instruments (except commodities)
  (361)
  231 
Gain/ (loss) from repurchase of non - convertible notes
  30 
  (1)
Total other financial results
  4,585 
  (4,923)
Inflation Adjustment
  176 
  (16)
Total financial results, net
  1,953 
  (8,381)
 
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
64
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria

25.
Related party transactions
 
See description of the main transactions conducted with related parties in Note 32 to the Consolidated Financial Statements as of June 30, 2020.
 
The following is a summary of the balances with related parties as of March 31, 2021 and June 30, 2020:
 
Items
  03.31.21 
  06.30.20 
Trade and other payables
  (776)
  (739)
Investments in financial assets
  833 
  - 
Borrowings
  (6,117)
  (3,965)
Trade and other receivables
  1,127 
  1,216 
Right of use assets
  66 
  - 
Lease Liabilities
  (76)
  - 
Total
  (4,943)
  (3,488)
 
 
Related party
 
  03.31.21 
  06.30.20 
Description of transaction
Item
IRSA Inversiones y Representaciones Sociedad Anónima
  72 
  91 
Corporate services receivable
Trade and other receivables
 
  (5)
  (8)
Reimbursement of expenses payable
Trade and other payables
 
  1 
  1 
Leases
Trade and other receivables
 
  1 
  1 
Share based payments
Trade and other receivables
 
  833 
  - 
Bonds
Investments in financial assets
Brasilagro Companhia Brasileira de Propriedades Agrícolas
  (6)
  (4)
Services received
Trade and other payables
 
  - 
  11 
Dividends receivables
Trade and other receivables
 
  16 
  15 
Reimbursement of expenses receivable
Trade and other receivables
Sociedad Anónima Carnes Pampeanas S.A. (formerly EAASA)
  - 
  129 
Sale of goods and/or services
Trade and other receivables
Helmir S.A.
  (951)
  (907)
Borrowings
Borrowings
 
  - 
  329 
Loans granted
Trade and other receivables
Ombú Agropecuaria S.A.
  5 
  4 
Reimbursement of expenses receivable
Trade and other receivables
 
  (12)
  (8)
Leases
Trade and other payables
 
  - 
  (1)
Reimbursement of expenses payable
Trade and other payables
Agropecuaria Acres del Sud S.A.
  4 
  4 
Administration fees
Trade and other receivables
Yatay Agropecuaria S.A.
  3 
  4 
Administration fees
Trade and other receivables
 
  (555)
  (554)
Borrowings
Borrowings
Yuchán Agropecuaria S.A.
  3 
  3 
Administration fees
Trade and other receivables
Futuros y Opciones.Com S.A.
  793 
  364 
Brokerage operations receivable
Trade and other receivables
 
  (692)
  (278)
Services received
Trade and other payables
 
  - 
  - 
Administration fees
Trade and other receivables
 
  (16)
  (49)
Reimbursement of expenses payable
Trade and other payables
IRSA Propiedades Comerciales S.A.
  183 
  246 
Reimbursement of expenses receivable
Trade and other receivables
 
  3 
  4 
Share based payments
Trade and other receivables
 
  (2,149)
  (2,384)
Non-convertible notes
Borrowings
 
  66 
  - 
Right of use assets
Right of use assets
 
  (76)
  - 
Lease Liabilities
Lease Liabilities
 
  (2)
  (3)
Reimbursement of expenses payable
Trade and other payables
Agropecuarias SC S.A.
  (464)
  - 
Borrowings
Borrowings
Total Subsidiaries
  (3,062)
  (2,990)
 
 
 
    
    
 
 
 
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
65
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Related party
 
  03.31.21 
  06.30.20 
Description of transaction
Item
Agro-Uranga S.A.
  (96)
  - 
Borrowings
Borrowings
 
  37 
  - 
Dividends receivables
Trade and other receivables
Uranga Trading
  3 
    
Loans granted
Trade and other receivables
Total Associates
  (56)
  - 
 
 
 
    
    
 
 
Panamerican Mall S.A.
  (49)
  (50)
Non-convertible notes
Borrowings
Amauta Agro S.A.
  - 
  (120)
Purchase of goods and/or services
Trade and other payables
Sedelor S.A.
  (524)
  - 
Borrowings
Borrowings
Alafox S.A.
  (521)
  - 
Borrowings
Borrowings
Codalis S.A.
  (626)
  - 
Borrowings
Borrowings
Total Subsidiaries of the subsidiaries
  (1,720)
  (170)
 
 
 
    
    
 
 
CAMSA and its subsidiaries
  - 
  1 
Reimbursement of expenses receivable
Trade and other receivables
 
  - 
  (257)
Managment fee payables
Trade and other payables
BNH VIDA
  (68)
  (70)
Non-convertible notes
Borrowings
 
  (1)
  - 
Reimbursement of expenses payable
Trade and other payables
Estudio Zang, Bergel & Viñes
  2 
  - 
Reimbursement of expenses receivables
Trade and other receivables
Other Related parties
  (67)
  (326)
 
 
Inversiones Financieras del Sur S.A.
  4 
  9 
Loans granted
Trade and other receivables
Total Parent Company
  4 
  9 
 
 
 
    
    
 
 
Directors and Senior Management
  (42)
  (11)
Director's fees
Trade and other payables
Total Directors and Senior Management
  (42)
  (11)
 
 
Total
  (4,943)
  (3,488)
 
 
 
    
    
 
 
 
 
The following is a summary of the results with related parties for the nine-month periods ended as of March 31, 2021 and 2020:
 
Related party
  03.31.21 
  03.31.20 
Description of transaction
IRSA Inversiones y Representaciones Sociedad Anónima
  (7)
  (7)
Leases and/or rights of use
 
  9 
  - 
Changes in fai value in financial instruments
 
  2 
  - 
Financial operations
 
  - 
  (255)
Corporate services
Futuros y Opciones.Com S.A.
  65 
  (14)
Purchase of goods and/or services
 
  (83)
  - 
Supplies and labor
 
  (2)
  1 
Management fees
 
  (14)
  (34)
Financial operations
Sociedad Anónima Carnes Pampeanas S.A.
  492 
  628 
Sale of goods and/or services
 
  2 
  - 
Financial operations
Helmir S.A.
  62 
  3 
Financial operations
Agropecuarias SC S.A.
  (4)
  - 
Financial operations
Total subsidiaries
  522 
  322 
 
 
    
    
 
Torodur S.A.
  (68)
  - 
Financial operations
Panamerican Mall S.A.
  2 
  (3)
Financial operations
Yatay Agropecuaria S.A.
  (14)
  (17)
Financial operations
Amauta Agro S.A. (continuadora de FyO Trading S.A.)
  - 
  (108)
Purchase of goods and/or services
IRSA Propiedades Comerciales S.A.
  (7)
  (11)
Leases and/or rights of use
 
  - 
  822 
Corporate services
 
  (148)
  (138)
Financial operations
FyO Acopio S.A.
  - 
  (11)
Management fees
 
  - 
  (67)
Purchase of goods and/or services
Sedelor S.A.
  (4)
  - 
Financial operations
Alafox S.A.
  (4)
  - 
Financial operations
Codalis S.A.
  (5)
  - 
Financial operations
Total Subsidiaries of the subsidiaries
  (248)
  467 
 
Agro-Uranga S.A.
  (5)
  - 
Borrowings
Total Associates
  (5)
  - 
 
 
    
    
 
Estudio Zang, Bergel & Viñes
  (4)
  (6)
Legal services
Hamonet S.A.
  (1)
  (1)
Leases and/or rights of use
BNH Vida S.A.
  (5)
  - 
Financial operations
BACS Administradora de Activos S.A.
  (87)
  - 
Financial operations
Isaac Elsztain e Hijos S.C.A.
  (3)
  (3)
Leases and/or rights of use
Other Related parties
  (100)
  (10)
 
 
    
    
 
Directors
  (68)
  (61)
Compensation of Directors
Total directors y Senior Management
  (68)
  (61)
 
Inversiones Financieras del Sur S.A.
  6 
  6 
Financial operations
Total sociedad controlante
  6 
  6 
 
Total
  112 
  724 
 
 
 
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
66
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
The following is a summary of the transactions with related parties for the nine-month periods ended as of March 31, 2021 and 2020:
 
Related party
  03.31.21 
  03.31.20 
Description of transaction
Agropecuarias Santa Cruz de la Sierra S.A.
  1 
  4 
Irrevocable contributions
Helmir S.A.
  2,126 
  252 
Irrevocable contributions
Futuros y Opciones.Com S.A.
  96 
  - 
Irrevocable contributions
Total irrevocable contributions
  2,223 
  256 
 
IRSA Inversiones y Representaciones Sociedad Anónima
  406 
  495 
Dividends received
IRSA Propiedades Comerciales S.A.
  395 
  16 
Dividends received
Brasilagro Companhia Brasileira de Propriedades Agrícolas
  6 
  78 
Dividends received
Agro-Uranga S.A.
  67 
  34 
Dividends received
Uranga Trading S.A.
  14 
  - 
Dividends received
FyO Acopio S.A.
  5 
  - 
Dividends received
Futuros y Opciones.Com S.A.
  140 
  193 
Dividends received
Total dividends received
  1,033 
  816 
 
 
 
26.
CNV General Resolution N° 622/13
 
As required by Section 1°, Chapter III, Title IV of CNV General Resolution N° 622/13, below there is a detail of the notes to the Unaudited Condensed Interim Separate Financial Statements that disclosure the information required by the Resolution in Exhibits.
 
Exhibit A - Property, plant and equipment
 
Note 7 – Investment properties
 
 
Note 8 – Property, plant and equipment
Exhibit B - Intangible assets
 
Note 9 – Intangible assets
Exhibit C - Equity investments
 
Note 6 - Investments in subsidiaries, associates and joint ventures
Exhibit D - Other investments
 
Note 13 – Financial instruments by category
Exhibit E - Provisions
 
Note 14 – Trade and other receivables
 
 
Note 17 – Provisions
Exhibit F - Cost of sales and services
 
Note 27 – Cost of sales and services provided
Exhibit G - Foreign currency assets and liabilities
 
Note 28 – Foreign currency assets and liabilities
Exhibit H - Exhibit of expenses
 
Note 22 – Expenses by nature
 
 
27.
Cost of sales and services provided
 
Description
 
Biological assets (1)
 
 
Agricultural stock
 
 
Services and other operating costs
 
 
Total as of 03.31.21
 
 
Total as of 03.31.20
 
Beginning of the period / year
  2,324 
  2,768 
  - 
  5,092 
  5,991 
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest
  401 
  - 
  - 
  401 
  (19)
Changes in the net realizable value of agricultural products after harvest
  - 
  354 
  - 
  354 
  636 
Increase due to harvest
  - 
  2,282 
  - 
  2,282 
  3,098 
Acquisitions and classifications
  269 
  1,845 
  - 
  2,114 
  2,564 
Consume
  (7)
  (2,464)
  - 
  (2,471)
  (2,741)
Expenses incurred
  914 
  - 
  90 
  1,004 
  1,024 
Inventories
  (2,848)
  (1,322)
  - 
  (4,170)
  (3,927)
Cost as of 03.31.21
  1,053 
  3,463 
  90 
  4,606 
  - 
Cost as of 03.31.20
  996 
  5,421 
  209 
  - 
  6,626 
  
(1)
Corresponds to breeding cattle movements and other cattle.
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
67
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
28.
Foreign currency assets and liabilities
 
Book amounts of foreign currency assets and liabilities as of March 31, 2021 and June 30, 2020 are as follows:
 
Items
 
 Amount of foreign currency
 
 
 Prevailing exchange rate (1)
 
 
 Total as of 03.31.21
 
 
 Total as of 06.30.20
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other receivables
 
 
 
 
 
 
 
 
 
 
 
 
US Dollar
  19 
  91.800 
  1,774 
  1,103 
Receivables with related parties:
    
    
    
    
US Dollar
  0.4 
  92.000 
  41 
  348 
Total trade and other receivables
    
    
  1,815 
  1,451 
 
    
    
    
    
Investment in financial assets
    
    
    
    
US Dollar
  1 
  91.800 
  65 
  - 
Investment in financial assets parts
    
    
    
    
US Dollar
  9 
  92.000 
  833 
  - 
Total Investment in financial assets
    
    
  898 
  - 
 
    
    
    
    
Cash and cash equivalents
    
    
    
    
US Dollar
  0.8 
  91.800 
  69 
  359 
Total Cash and cash equivalents
    
    
  69 
  359 
 
    
    
    
    
Liabilities
    
    
    
    
Trade and other payables
    
    
    
    
US Dollar
  23 
  92.000 
  2,124 
  809 
Payables with related parties:
    
    
    
    
US Dollar
  13 
  92.000 
  1,168 
  126 
Brazilian Reais
  0.3 
  17.500 
  6 
  4 
Bolivian Pesos
  1 
  12.547 
  14 
  14 
Total trade and other payables
    
    
  3,312 
  953 
 
    
    
    
    
Derivative financial instruments
    
    
    
    
US Dollar
  6 
  92.000 
  580 
  31 
Total derivative instruments
    
    
  580 
  31 
 
    
    
    
    
Lease Liabilities
    
    
    
    
US Dollar
  0.01 
  92.000 
  1 
  3 
Lease Liabilities parts
    
    
    
    
US Dollar
  0.84 
  92.000 
  77 
  - 
Total Lease Liabilities
    
    
  78 
  3 
 
    
    
    
    
Borrowings
    
    
    
    
US Dollar
  349 
  92.000 
  32,140 
  44,021 
Borrowings related parts
    
    
    
    
US Dollar
  65 
  92.000 
  5,995 
  - 
Total Borrowings
    
    
  38,135 
  44,021 
 
(1) Exchange rate as of March 31, 2021 according to Banco Nación Argentina records.
  
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
68
Cresud Sociedad Anónima,
Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
29.
CNV General Ruling N° 629/14 – Storage of documentation
 
On August 14, 2014, the CNV issued General Ruling N° 629 whereby it introduced amendments to rules related to storage and conservation of corporate books, accounting books and commercial documentation. In this sense, it should be noted that the Company has entrusted the storage of certain non-sensitive and old information to the following providers:
 
Documentation storage provider
 
Location
Bank S.A.
 
Ruta Panamericana Km 37,5, Garín, Province of Buenos Aires
 
 
Av. Fleming 2190, Munro, Province of Buenos Aires
 
 
Carlos Pellegrini 1401, Avellaneda, Province of Buenos Aires
Iron Mountain Argentina S.A.
 
Av. Amancio Alcorta 2482, Autonomous City of Buenos Aires
 
 
Pedro de Mendoza 2143, Autonomous City of Buenos Aires
 
 
Saraza 6135, Autonomous City of Buenos Aires
 
 
Azara 1245, Autonomous City of Buenos Aires
 
 
Polígono industrial Spegazzini, Autopista Ezeiza Km 45, Cañuelas, Province of Buenos Aires
 
 
Cañada de Gomez 3825, Autonomous City of Buenos Aires
 
It is further noted that a detailed list of all documentation held in custody by providers, as well as documentation required in section 5 a.3) of section I, Chapter V, Title II of the RULES (N.T. 2013 as amended) are available at the registered office.
 
On February 5, 2014 there was a widely known fire in Iron Mountain’s warehouse, which is a supplier of the Company and where Company’s documentation was being kept. Based on the internal review carried out by the Company, duly reported to CNV on February 12, 2014, the information kept at the Iron Mountain premises that were on fire do not appear to be sensitive or capable of affecting normal operations.
 
30.
Negative working capital
 
At the end of the period, the Company carried a working capital deficit of Ps. 17,285, whose treatment is under consideration by the Board of Directors and the respective Management. The Company has issued during the current fiscal year and after March 31, 2021 non-convertible notes for a total of US$ 90.1 million, and shares for a total of US$ 42.5 million.
 
31.
Economic context in which society operates
 
See economic context in which society operates in Note 33 to the Unaudited Condensed Interim Consolidated Financial Statements.
 
32.
Subsequent events
 
See others subsequent events in Note 34 to the Unaudited Condensed Interim Consolidated Financial Statements.
 
 
 
 
 
 
                                                            )
Alejandro G. Elsztain
 Vice President II
acting as President
 
 
 
69
 
 
REVIEW REPORT ON THE UNAUDITED CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS
 
To the Shareholders, President and Directors of
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Legal address: Carlos Della Paolera 261, 9° floor
Autonomous City of Buenos Aires
Tax Registration Number: 30-50930070-0
 
Introduction
 
We have reviewed the accompanying unaudited condensed interim separate financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (“the Company”), which comprise the unaudited condensed interim separate statement of financial position at March 31, 2021, the unaudited condensed interim separate statements of income and other comprehensive income, of changes in shareholders’ equity and of cash flows for the nine and three-month period then ended, and selected explanatory notes.
 
The balances and other information for the fiscal year ended on June 30, 2020 and its interim periods are an integral part of the financial statements mentioned above; therefore, they must be considered in connection with these financial statements.
 
Management’s responsibility
 
The Board of Directors of the Company is responsible for the preparation and presentation of these unaudited condensed interim separate financial statements in accordance with International Financial Reporting Standards, adopted by the Argentine Federation of Professional Councils in Economic Sciences (FACPCE) as professional accounting standards and included by the National Securities Commission (CNV) in its regulations, as approved by the International Accounting Standards Board (IASB), and is therefore responsible for the preparation and presentation of the unaudited condensed interim separate financial statements mentioned in the first paragraph, in accordance with International Accounting Standard 34 Interim Financial Information (IAS 34).
 
 
 
70
 
 
Scope of our review
 
Our review was limited to the application of the procedures established under International Standards on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity, adopted as a review standard in Argentina by Technical Pronouncement No. 33 of the FACPCE and approved by the International Auditing and Assurance Standards Board (IAASB). A review of interim financial information consists of inquiries of Company staff responsible for preparing the information included in the unaudited condensed interim separate financial statements and of analytical and other review procedures. This review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the separate statements of financial position, and the separate statements of income and other comprehensive income and of cash flows of the Company.
 
Conclusion
On the basis of our review, nothing has come to our attention that causes us to believe that the unaudited condensed interim separate financial statements mentioned in the first paragraph of this report have not been prepared, in all material respects, in accordance with International Accounting Standard 34 Interim Financial Reporting.
 
Report on compliance with current regulations
 
In accordance with current regulations, we report, in connection with Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, that:
 
a) the unaudited condensed interim separate financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria are not transcribed into the Inventory and Balance Sheet book and, except for the above mentioned situation, as regards those matters that are within our competence, they are in compliance with the provisions of the General Companies Law and pertinent resolutions of the National Securities Commission;
 
b) the unaudited condensed interim separate financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria arise from accounting records carried in all formal aspects in accordance with legal requirements;
 
c) we have read the additional information to the notes to the unaudited condensed interim separate financial statements required by section 12, Chapter III, Title IV of the rules of the National Securities Commission, on which we have no observations to make regarding matters that are within our competence;
 
 
 
71
 
 
d) at March 31, 2021 the debt of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria accrued in favor of the Argentine Integrated Social Security System, as shown by the Company’s accounting records, amounted to $ 22,775,284, which is not due at that date.
 
Autonomous City of Buenos Aires, May 11, 2021
 
PRICE WATERHOUSE & CO. S.R.L.
                                                                    (Partner)
 
C.P.C.E.C.A.B.A. V° 1 F° 17
 
Walter Zablocky
Public Accountant (UNLP)
C.P.C.E.C.A.B.A. V. 340 F. 156

 
 
I. Brief comment on the Company’s activities during the period, including references to significant events occurred after the end of the period.
 
Economic context in which the Group operates
 
The Group operates in a complex context both due to macroeconomic conditions, whose main variables have recently experienced strong volatility, as well as regulatory, social, and political conditions, both nationally and internationally.
 
The results from operations may be affected by fluctuations in the inflation and the exchange rate of the Argentine peso against other currencies, mainly the dollar, changes in interest rates which have an impact on the cost of capital, changes in government policies, capital controls and other political or economic events both locally and internationally.
 
In December 2019, a new strain of coronavirus (SARS-COV-2), which caused severe acute respiratory syndrome (COVID-19) appeared in Wuhan, China. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic. In response, countries have taken extraordinary measures to contain the spread of the virus, including imposing travel restrictions and closing borders, closing businesses deemed non-essential, instructing residents to practice social distancing, implementing quarantines, among other measures. The ongoing pandemic and these extraordinary government measures are affecting global economic activity, resulting in significant volatility in global financial markets.
 
On March 3, 2020, the first case of COVID-19 was registered in the country and as of today, more than 3,000,000 cases of infections had been confirmed in Argentina, by virtue of which the Argentinian Government implemented a series of health measures of social, preventive and mandatory isolation at the national level with the closure of non-essential activities, including shopping centers, as well as the suspension of flights and border closures, for much of the year 2020. Since October 2020, a large part of the activities began to become more flexible, in line with a decrease in infections, although as of April 16, 2021, because of the sustained increase in the cases registered, the National Government, through Decrees 241/2021 and 287/2021, established restrictions on night activity and the closure of shopping centers in Buenos Aires Metropolitan Área until May 21 inclusive, keeping 44% of the Company’s portfolio operative in GLA terms.
 
This series of measures affected a large part of Argentine companies, which experienced a drop in their income and inconveniences in the payment chain. In this context, the Argentine government announced different measures aimed at alleviating the financial crisis of the companies affected by the COVID-19 pandemic. Likewise, it should be noted that, to the stagnation of the Argentine economy, a context of international crisis is added because of the COVID-19 pandemic. In this scenario, a strong contraction of the Argentine economy was evidenced.
 
At the local environment, the following circumstances are displayed:
 
In February 2021, the Monthly Economic Activity Estimator (“EMAE” in Spanish) reported by the National Institute of Statistics and Censuses (“INDEC” in Spanish), registered a variation of (2.6%) compared to the same month of 2020, and (1.0%) compared to the previous month.
 
The annual retail inflation reached 42.65% in the last 12 months. The survey on market expectations prepared by the Argentine Central Bank in March 2021, called the Market Expectations Survey (“REM” in Spanish), estimates a retail inflation of 46.0% for 2021. Analysts participating in the REM forecast a rebound in economic activity in 2021, reaching an economic growth of 6.7%.
 
In the period from March 2020 to March 2021, the argentine peso depreciated 42.7% against the US dollar according to the wholesale average exchange rate of Banco de la Nación Argentina. Given the exchange restrictions in force since August 2019, as of March 31, 2021 there is an exchange gap of approximately 60% between the official price of the dollar and its price in parallel markets, which impacts the level of activity in the economy and affects the level of reserves of the Argentine Central Bank. Additionally, these exchange restrictions, or those that may be dictated in the future, could affect the Group's ability to access the Single Free Exchange Market (MULC in Spanish) to acquire the necessary currencies to meet its financial obligations.
 
 
 
72
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Summary as of March 31, 2021
 
 
 
 
On February 25, 2021, the Central Bank of the Argentine Republic published Communication “A” 7230 which establishes that those companies who register financial debts with capital maturities in foreign currency scheduled between 04.01.2021 and 12.31.2021, must submit a refinancing plan to the BCRA based on the following criteria: (a) that the amount net by which the exchange market will be accessed in the original terms will not exceed 40% of the amount of capital maturing in the period indicated above, and (b) that the rest of the capital is, at least, refinanced with a new external debt with an average life of 2 years, provided that the new debt is settled in the exchange market. In the case of the Company, the maturity of the Class XXV notes due on July 11, 2021 for a nominal value of USD 59.6 million falls within the extended period, as well as other bank debts.
 
COVID-19 pandemic
 
As described in the note on the economic context in which the Group operates, the COVID-19 pandemic is adversely impacting both the global economy and the Argentine economy and the Group's business. The current estimated impacts of the COVID-19 pandemic on the Company as of the date of these financial statements are set out below:
 
Cresud and its subsidiary BrasilAgro continued to operate normally during the pandemic as it was the essential agricultural activity in the provision of food.
 
During the third quarter of fiscal year 2021, the Group's shopping malls have operated under strict protocols and a gradual, although sustained, recovery of activity was evidenced since the reopening in October 2020. After the closing, by Decrees 241 / 2021 and 287/2021 of the National Executive Power, the shopping malls of the Metropolitan Area of Buenos Aires suspended their operations from April 16 to May 21, inclusive, operating only those activities considered essential such as pharmacies, supermarkets and banks.
 
Regarding the offices business, although most of the tenants are working in the home office mode, they are operating with strict safety and hygiene protocols. To date, we have registered a slight increase in vacancies, although we have not evidenced a deterioration in collections.
 
The Libertador and Intercontinental hotels in Buenos Aires City have been operating since December 2020 with low occupancy levels. Llao Llao Resort, in Bariloche City, was able to operate during the quarter with average occupancy levels because of domestic tourism.
 
Regarding the financial debt of the Group in the next 12 months:
 
Cresud faces the maturity of its Class XXVIII in April 2021 for a nominal value of USD 27.5 million, Classes XXV and XXVII in July 2021 for a nominal value of USD 59.6 million (included in Communication 7230 of Argentine Central Bank) and USD 5.7 million respectively and Class XXIX in December 2021 for a nominal value of USD 83.0 million. Likewise, Cresud has bank overdrafts for USD 23.2 million and other bank debt for USD 38.3 million. As of March 31, it had a liquidity position of approximately USD 38.3 million.
 
The subsidiary IRSA faces the maturity of its Class IV notes for a nominal value of USD 46.5 million due on May 21, 2021 (net of repurchases), Class VI notes for a nominal value of ARS 335 million (equivalent to USD 3.7 million) due July 21, 2021, Class VIII notes for a nominal value of USD 10.5 million (33% of the capital) maturing on November 12, 2021, Class VII notes for a nominal value of USD 33.7 million due on January 21, 2022, Class X notes for a nominal value of ARS 701.5 million (equivalent to USD 7.6 million) due March 31, 2022, bank overdrafts for an equivalent of USD 4.0 million and other banking debt for USD 13.7 million. For its part, IRCP does not have short-term debt maturities, except bank overdrafts for an equivalent of USD 62.5 million and other banking debt for USD 11.7 million.
 
It is important to mention that IRSA has approved with IRSA PC a line of credit for up to the sum of USD 180 million for 3 years, of which as of March 31, 2021 IRSA used approximately USD 72.1 million, leaving the balance available. Likewise, IRCP has a cash position and equivalents (including financial investments) as of March 31, 2021 of approximately USD 95.5 million.
 
 
 
73
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Summary as of March 31, 2021
 
 
 
The final extent of the Coronavirus outbreak and its impact on the country's economy is still uncertain. However, although it has produced significant short-term effects, they are not expected to affect business continuity and the Group’s ability to meet its financial commitments for the next twelve months.
 
The Group is closely monitoring the situation and taking all necessary measures to preserve human life and the Group's businesses.
 
 
74
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Summary as of March 31, 2021
 
 
 
 
Consolidated Results
 
(In ARS million)
  9M 21 
  9M 20 
 
YoY Var
 
Revenues
  26,046 
  36,697 
  (29.0)%
Costs
  (19,462)
  (22,642)
  (14.0)%
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest
  9,145 
  3,734 
  144.9%
Changes in the net realizable value of agricultural produce after harvest
  271 
  502 
  (46.0%
Gross profit
  16,000 
  18,291 
  (12.5)%
Net gain from fair value adjustment on investment properties
  (6,787)
  3,141 
  (316.1)%
Gain from disposal of farmlands
  103 
  461 
  (77.7)%
General and administrative expenses
  (3,415)
  (3,625)
  (5.8)%
Selling expenses
  (2,620)
  (3,334)
  (21.4)%
Other operating results, net
  (751)
  2,082 
  (136.1)%
Result from operations
  2,530 
  17,016 
  (85.1)%
Depreciation and Amortization
  1,732 
  1,775 
  (2.4)%
EBITDA (unaudited)
  4,262 
  18,791 
  (77.3)%
Adjusted EBITDA (unaudited)
  20,705 
  14,735 
  40.5%
Loss from joint ventures and associates
  (2,059)
  836 
  (346.3)%
Result from operations before financing and taxation
  471 
  17,852 
  (97.4)%
Financial results, net
  1,324 
  (22,870)
  - 
Result before income tax
  1,795 
  (5,018)
  - 
Income tax expense
  (2,924)
  (4,503)
  (35.1)%
Result for the period from continued operations
  (1,129)
  (9,521)
  (88.1)%
Result from discontinued operations after income tax
  (8,102)
  (1,068)
  658.6%
Result for the period
  (9,231)
  (10,589)
  (12.8)%
 
    
    
    
Attributable to
    
    
    
Equity holder of the parent
  (3,997)
  (14,529)
  (72.5)%
Non-controlling interest
  (5,234)
  3,940 
  (232.8)%
 
Consolidated revenues decreased by 29.0% in the nine-month period of fiscal year 2021 compared to the same period of 2020, while adjusted EBITDA reached ARS 20.705 million, 40.5% higher than in the same period of fiscal year 2020. Agribusiness adjusted EBITDA was ARS 9,215 and urban properties and investments business (IRSA) adjusted EBITDA was ARS 11,482 million.
 
The net result for the nine-month period of fiscal year 2021 recorded a loss of ARS 9,231 million compared to a loss of ARS 10,589 million in the same period of 2020. The results from continuing operations recorded a loss of ARS 1,129 million mainly due to the negative result from the changes in the fair value of the investment properties of our subsidiary IRSA, partially offset by better productive results from the agricultural business. On the other hand, the result of discontinued operations reflects a loss of ARS 8,102 million because of the deconsolidation of the investment in Israel as of September 30, 2020, explained by the operating result for the period and the loss due to the derecognition of remaining assets and associated reserves.
 
 
 
75
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Summary as of March 31, 2021
 
 
 
Description of Operations by Segment
 
9M 2021
 
Agribusiness
 
 
Urban Properties and Investments
 
 
Total
 
 
9M 21 vs. 9M 20
 
Revenues
  17,112 
  7,209 
  24,321 
  (27.4)%
Costs
  (15,007)
  (2,328)
  (17,335)
  (8.8)%
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest
  9,065 
  - 
  9,065 
  154.2%
Changes in the net realizable value of agricultural produce after harvest
  271 
  - 
  271 
  (46.0)%
Gross profit
  11,441 
  4,881 
  16,322 
  (12.0)%
Net gain from fair value adjustment on investment properties
  52 
  (6,742)
  (6,690)
  (290.9)%
Gain from disposal of farmlands
  103 
  - 
  103 
  (77.7)%
General and administrative expenses
  (1,249)
  (2,218)
  (3,467)
  (6.2)%
Selling expenses
  (1,643)
  (1,057)
  (2,700)
  (20.0)%
Other operating results, net
  (712)
  (118)
  (830)
  (142.1)%
Result from operations
  7,992 
  (5,254)
  2,738 
  (84.3)%
Share of profit of associates
  (12)
  (2,080)
  (2,092)
  (434.2)%
Segment result
  7,980 
  (7,334)
  646 
  (96.4)%
 
 
9M 2020
 
Agribusiness
 
 
Urban Properties and Investments
 
 
Total
 
Revenues
  19,556 
  13,927 
  33,483 
Costs
  (15,935)
  (3,078)
  (19,013)
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest
  3,566 
  - 
  3,566 
Changes in the net realizable value of agricultural produce after harvest
  502 
  - 
  502 
Gross profit
  7,689 
  10,849 
  18,538 
Net gain from fair value adjustment on investment properties
  17 
  3,488 
  3,505 
Gain from disposal of farmlands
  461 
  - 
  461 
General and administrative expenses
  (1,277)
  (2,418)
  (3,695)
Selling expenses
  (2,164)
  (1,213)
  (3,377)
Other operating results, net
  1,950 
  23 
  1,973 
Result from operations
  6,676 
  10,729 
  17,405 
Share of profit of associates
  248 
  378 
  626 
Segment result
  6,924 
  11,107 
  18,031 
 
2021 Campaign
 
The year 2020 was dominated by the COVID-19 pandemic, which originated in China and subsequently spread to numerous countries, generating uncertainty and volatility in the markets, adversely impacting the global, Argentine and regional economy. Our agricultural operations continued their development normally as agricultural production was an essential activity to guarantee the supply of food.
 
The 2021 campaign is presented with radical changes from what was observed in the market at the end of the previous year. As of August, the United States reduced its intention to plant the main crops and South America began to show indicators of lack of water. With Chinese demand for grains recovering after its swine flu outbreak, and with the supply showing some warning signs (stagnant production and friction in international trade due to covid, among others), China accelerated its imports, mainly corn. This, added to the weakness of the dollar in the world, pushed the international prices of commodities upwards. Soybeans and corn recovered their prices so far this season between 80% and 120%, respectively. The challenge will be in the climatic evolution in the region in the coming months, where the last part of the soybean harvest and a large part of the corn harvest will take place. If the climatic conditions continue to accompany as in recent months and we achieve good agricultural yields, we hope to conclude a campaign with excellent results.
 
 
76
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Summary as of March 31, 2021
 
 
 
Our Portfolio

Our portfolio under management, as of March 31, 2021, was composed of 761,794 hectares, of which 296,441 are in operation and 465,353 are land reserves distributed among the four countries in the region where we operate: in Argentina, with a mixed model combining land development and agricultural production; and through our subsidiary BrasilAgro, in Brazil and Paraguay, where the strategy is mainly focused on the development of lands, and in Bolivia with a productive model in Santa Cruz de la Sierra.
 
Breakdown of Hectares
 
Own and under Concession (*) (**) (***)
 
 
 
Productive Lands
 
   
   
 
 
Agricultural
 
 
Cattle
 
 
Reserved
 
 
Total
 
Argentina
  60,348 
  144,773 
  331,468 
  536,589 
Brazil
  60,334 
  7,268 
  88,143 
  155,745 
Bolivia
  8,858 
  - 
  1,017 
  9,875 
Paraguay
  12,373 
  2,487 
  44,725 
  59,585 
Total
  141,913 
  154,528 
  465,353 
  761,794 
(*) Includes Brazil, Paraguay, Agro-Uranga S.A. at 35.723% and 132,000 hectares under Concession.
(**) Includes 85,000 hectares intended for sheep breeding
(***) Excludes double crops.
 
Leased (*)
 
 
 
Agricultural
 
 
Cattle
 
 
Other
 
 
Total
 
Argentina
  57,811 
  12,635 
  450 
  70,896 
Brazil
  48,573 
  - 
  2,174 
  50,747 
Bolivia
  640 
  - 
  - 
  640 
Total
  107,024 
  12,635 
  2,624 
  122,283 
(*) Excludes double crops.
 
Segment Income – Agricultural Business
 
 
I)
Land Development and Sales
 
We periodically sell properties that have reached a considerable appraisal to reinvest in new farms with higher appreciation potential. We analyze the possibility of selling based on a number of factors, including the expected future yield of the farmland for continued agricultural and livestock exploitation, the availability of other investment opportunities and cyclical factors that have a bearing on the global values of farmlands.
 
During the nine-month period of fiscal year 2021, no farmland sales were made. In Other operating results is observed the effect of the valuation of accounts receivables related to farmland sales made by our subsidiary Brasilagro during fiscal year 2020.
 
in ARS million
  9M 21 
  9M 20 
 
YoY Var
 
Revenues
  - 
  - 
  - 
Costs
  (25)
  (27)
  (7.41)%
Gross loss
  (25)
  (27)
  (7.41)%
Net gain from fair value adjustment on investment properties
  52 
  17 
  205.88%
Gain from disposal of farmlands
  103 
  461 
  (77.66)%
General and administrative expenses
  (3)
  (3)
  - 
Selling expenses
  (1)
  - 
  - 
Other operating results, net
  2,626 
  1,260 
  108.41%
Profit from operations
  2,752 
  1,708 
  61.12%
Segment profit
  2,752 
  1,708 
  61.12%
EBITDA
  2,757 
  1,712 
  61.04%
Adjusted EBITDA
  2,705 
  1,695 
  59.59%
 
 
 
77
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Summary as of March 31, 2021
 
 
 
As a subsequent event, our subsidiary Brasilagro announced the sale of a fraction of 1,654 hectares of the “Jatobá” farm for the sum of BRL 67.1 million. The farm was valued on the books at BRL 2.8 million and the expected internal return rate in reais is 20.4%. This gain will be recognized in the fourth quarter of the fiscal year 2021.
 
Agricultural Production
 
The result of the Farming segment decreased by ARS 297 million, from a ARS 4,593 million gain during the nine-month period of fiscal year 2020 to a ARS 4,296 million gain during the same period of 2021.
 
in ARS million
  9M 21 
  9M 20 
 
YoY Var
 
Revenues
  14,017 
  16,717 
  (16.2)%
Costs
  (12,782)
  (14,058)
  (9.1)%
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest
  9,065 
  3,566 
  154.2%
Changes in the net realizable value of agricultural produce after harvest
  271 
  502 
  (46.0)%
Gross profit
  10,571 
  6,727 
  57.1%
General and administrative expenses
  (836)
  (936)
  (10.7)%
Selling expenses
  (1,385)
  (1,815)
  (23.7)%
Other operating results, net
  (4,098)
  529 
  (874.7)%
Profit from operations
  4,252 
  4,505 
  (5.6)%
Profit from associates
  44 
  88 
  (50.0)%
Segment profit
  4,296 
  4,593 
  (6.5)%
EBITDA
  5,505 
  5,742 
  (4.1)%
Adjusted EBITDA
  5,505 
  5,742 
  (4.1)%
 
II.a) Crops and Sugarcane
 
Crops
 
in ARS million
  9M 21 
  9M 20 
 
YoY Var
 
Revenues
  8,527 
  10,907 
  (21.8)%
Costs
  (8,735)
  (9,192)
  (5.0)%
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest
  7,528 
  2,018 
  273.0%
Changes in the net realizable value of agricultural produce after harvest
  269 
  502 
  (46.4)%
Gross profit
  7,589 
  4,235 
  79.2%
General and administrative expenses
  (526)
  -545 
  (3.5)%
Selling expenses
  (1,128)
  (1,576)
  (28.4)%
Other operating results, net
  (4,029)
  545 
  - 
(Loss) / Profit from operations
  1,906 
  2,659 
  (28.3)%
Share of loss of associates
  44 
  88 
  (50.0)%
Activity (Loss) / Profit
  1,950 
  2,747 
  (29.0)%
 
Sugarcane
 
in ARS million
  9M 21 
  9M 20 
 
YoY Var
 
Revenues
  3,253 
  3,548 
  (8.3)%
Costs
  (2,479)
  (3,135)
  (20.9)%
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest
  1,046 
  1,552 
  (32.6)%
Gross profit
  1,820 
  1,965 
  (7.4)%
General and administrative expenses
  (153)
  (237)
  (35.4)%
Selling expenses
  (122)
  (106)
  15.1%
Other operating results, net
  (68)
  (13)
  423.1%
Profit from operations
  1,477 
  1,609 
  (8.2)%
Activity profit
  1,477 
  1,609 
  (8.2)%

 
 
78
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Summary as of March 31, 2021
 
 
 
Operations
 
Production Volume1)
  9M21 
  9M20 
  9M19 
  9M18 
  9M17 
Corn
  199,438 
  299,918 
  134,618 
  270,923 
  242,641 
Soybean
  104,217 
  119,574 
  101,351 
  58,706 
  17,320 
Wheat
  36,669 
  43,925 
  37,596 
  32,322 
  30,989 
Sorghum
  503 
  3,229 
  1,267 
  1,816 
  731 
Sunflower
  4,596 
  1,954 
  5,384 
  5,310 
  3,853 
Cotton
  6,818 
  3,519 
  - 
  - 
  - 
Beans
  2,517 
  1,623 
  - 
  - 
  - 
Others
  2,849 
  3,996 
  1,946 
  1,171 
  3,093 
Total Crops (tons)
  357,607 
  477,738 
  282,162 
  370,248 
  298,627 
Sugarcane (tons)
  1,669,521 
  1,634,521 
  1,431,110 
  912,688 
  580,783 
(1)
Includes Brasilagro, Acres del Sud, Ombú, Yatay and Yuchán. Excludes Agro-Uranga.
 
Volume of
 
9M21
 
 
9M20
 
 
9M19
 
 
9M18
 
 
9M17
 
 Sales (1)
 
D.M
 
 
F.M
 
 
Total
 
 
D.M
 
 
F.M
 
 
Total
 
 
D.M
 
 
F.M
 
 
Total
 
 
D.M
 
 
F.M
 
 
Total
 
 
D.M
 
 
F.M
 
 
Total
 
Corn
  233.9 
  70.0 
  303.9 
  284,7 
  54,3 
  339,0 
  130,7 
  - 
  130,7 
  259,9 
  6,0 
  265,9 
  230,3 
  - 
  230,3 
Soybean
  117.5 
  23.3 
  140.8 
  156,1 
  72,5 
  228,6 
  71,1 
  45,6 
  116,7 
  99,4 
  9,7 
  109,1 
  75,2 
  0,7 
  75,9 
Wheat
  29.2 
  1.3 
  30.5 
  39,5 
  - 
  39,5 
  30,3 
  - 
  30,3 
  40,3 
  - 
  40,3 
  7,3 
  1,6 
  8,9 
Sorghum
  - 
  - 
  - 
  - 
  - 
  - 
  0,4 
  - 
  0,4 
  0,9 
  - 
  0,9 
  4,5 
  - 
  4,5 
Sunflower
  2.7 
  - 
  2.7 
  8,5 
  - 
  8,5 
  2,2 
  - 
  2,2 
  2,9 
  - 
  2,9 
  3,7 
  - 
  3,7 
Cotton
  6.4 
  - 
  6.4 
  2,5 
  1,9 
  4,4 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
Beans
  1.5 
  1.0 
  2.5 
  1,4 
  - 
  1,4 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
Others
  3.7 
  - 
  3.7 
  4,7 
  - 
  4,7 
  0,6 
  - 
  0,6 
  1,2 
  - 
  1,2 
  3,6 
  - 
  3,6 
Total Crops (thousands of tons)
  394.9 
  95.6 
  490.5 
  497.4 
  128.7 
  626.1 
  235.3 
  45.6 
  280.9 
  404.6 
  15.7 
  420.3 
  324.6 
  2.3 
  326.9 
Sugarcane (thousands of tons)
  1,560.3 
  - 
  1,560.3 
  1,572.8 
  - 
  1,572.8 
  1,414.6 
  - 
  1,414.6 
  1,266.2 
  - 
  1,266.2 
  554.1 
  - 
  554.1 
D.M.: Domestic market
F.M.: Foreign market
(1) Includes Brasilagro, CRESCA at 50%, Acres del Sud, Ombú, Yatay and Yuchán. Excludes Agro-Uranga.
 
Results from the Grains activity decreased by ARS 797 million, from a gain of ARS 2,747 million during the nine-month period of fiscal year 2020 to a gain of ARS 1,950 million during the same period of 2021, mainly because of:
 
Lower results in Argentina, due to a loss from grain derivatives (mainly soybeans and corn) for upward trend in future prices, and a lower gain in the gross margin of sales and holding results, because of the lower stock left by the 19-20 campaign in comparison to the previous period, offset by better productive results from soybeans explained by the significant price increase.
 
Higher production results in Brazil, because of better prices and a larger planted area of corn, offset by a negative variation in the result from commodity derivatives and sales agreed at prices below market prices.
 
The result of the Sugarcane activity decreased by ARS 132 million, from a gain of ARS 1,609 million in the nine-month period of fiscal year 2020 to a gain of ARS 1,477 million in the same period of 2021. This is mainly due to a lower productive result of Brazil, mainly due to higher production costs and less planted area, offset by higher sales results, due to better prices and lower administrative expenses.
 
Area in Operation (hectares) (1)
 
As of 03/31/21
 
 
As of 03/31/20
 
 
YoY Var
 
Own farms
  109,403 
  106,108 
  3.11%
Leased farms
  130,878 
  138,679 
  (5.63)%
Farms under concession
  22,771 
  26,334 
  (13.53)%
Own farms leased to third parties
  25,323 
  13,837 
  83.01%
Total Area Assigned to Production
  288,375 
  284,958 
  1.20%
(1) Includes Agro-Uranga, Brazil and Paraguay,
 

 
79
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Summary as of March 31, 2021
 
 
 
II.b) Cattle Production
 
Production Volume (1)
  9M21 
  9M20 
  9M19 
  9M18 
  9M17 
Cattle herd (tons)
  7,546 
  9,016 
  8,655 
  8,692 
  6,484 
Milking cows (tons)
  - 
  - 
  - 
  196 
  390 
Cattle (tons)
  7,546 
  9,016 
  8,655 
  8,888 
  6,874 
(1)
Includes Carnes Pampeanas
 
Volume of
 
9M21
 
 
9M20
 
 
9M19
 
 
9M18
 
 
9M17
 
 Sales (1)
 
D.M
 
 
F.M
 
 
Total
 
 
D.M
 
 
F.M
 
 
Total
 
 
D.M
 
 
F.M
 
 
Total
 
 
D.M
 
 
F.M
 
 
Total
 
 
D.M
 
 
F.M
 
 
Total
 
Cattle herd
  11,9 
  - 
  11,9 
  12.3 
  - 
  12.3 
  6.7 
  - 
  6.7 
  9.3 
  - 
  9.3 
  6.2 
  - 
  6.2 
Milking cows (2)
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  1.4 
  - 
  1.4 
  0.7 
  - 
  0.7 
Cattle (thousands of tons)
  11,9 
  - 
  11,9 
  12.3 
  - 
  12.3 
  6.7 
  - 
  6.7 
  10.7 
  - 
  10.7 
  6.9 
  - 
  6.9 
D.M.: Domestic market
F.M.: Foreign market
(1)
Includes Carnes Pampeanas
(2)
Milk was discontinued on IIQ 2018
 
Cattle
 
In ARS Million
  9M 21 
  9M 20 
 
YoY Var
 
Revenues
  1,772 
  1,716 
  3.3%
Costs
  (1,436)
  (1,482)
  (3.1)%
Initial recognition and changes in the fair value of biological assets and agricultural produce
  491 
  (4)
  - 
Changes in the net realizable value of agricultural produce after harvest
  2 
  - 
  - 
Gross Profit
  829 
  230 
  260.4%
General and administrative expenses
  (116)
  (94)
  23.4%
Selling expenses
  (104)
  (110)
  (5.5)%
Other operating results, net
  15 
  - 
  - 
Profit / (Loss) from operations
  624 
  26 
  2,300.0%
Activity Profit / (Loss)
  624 
  26 
  2,300.0%
 
Area in operation – Cattle (hectares) (1)
 
As of 03/31/21
 
 
As of 03/31/20
 
 
YoY Var
 
Own farms
  65,106 
  72,061 
  (9.7)%
Leased farms
  12,635 
  12,635 
  - 
Farms under concession
  3,097 
  2,993 
  3.5%
Own farms leased to third parties
  1,775 
  9,368 
  (81.1)%
Total Area Assigned to Cattle Production
  82,613 
  97,057 
  (14.9)%
(1) Includes Agro-Uranga, Brazil and Paraguay,
 
Stock of Cattle Heard
 
As of 03/31/21
 
 
As of 03/31/20
 
 
YoY Var
 
Breeding stock
  70,066 
  79,998 
  (12.4)%
Winter grazing stock
  5,878 
  12,495 
  (53.0)%
Sheep stock
  11,937 
  10,650 
  12.1%
Total Stock (heads)
  87,881 
  103,143 
  (14.8)%
 
The result of the Cattle activity increased by ARS 598 million: from a ARS 26 million gain during the nine-month period of fiscal year 2020 to a ARS 624 million gain in the same period of 2021, as a result of a positive variation in the holding result as well as selling results of live cattle, because prices for this fiscal year raised at a higher pace than inflation.
 
 
 
80
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Summary as of March 31, 2021
 
 
 
 
II.c) Agricultural Rental and Services
 
In ARS Million
  9M 21 
  9M 20 
 
YoY Var
 
Revenues
  465 
  546 
  (14.8)%
Costs
  (132)
  (249)
  (47.0)%
Gross profit
  333 
  297 
  12.1%
General and Administrative expenses
  (41)
  (60)
  (31.7)%
Selling expenses
  (31)
  (23)
  34.8%
Other operating results, net
  (16)
  (3)
  433.3%
Profit from operations
  245 
  211 
  16.1%
Activity profit
  245 
  211 
  16.1%
 
The result of the activity was increased by ARS 34 million, from a gain of ARS 211 million in the nine-month period of fiscal year 2020 to a gain of ARS 245 million in the same period of 2021.
 
III) Other Segments
 
We include within "Others" the results coming from our investment in FyO. In February 2021, the Company sold all its participation in Sociedad Anónima Carnes Pampeanas S.A., owner of the Carnes Pampeanas meat processing plant in the province of La Pampa, Argentina.
 
The result of the segment increased by ARS 310 million, going from a gain of ARS 841 million for the nine-month period of fiscal year 2020 to a gain of ARS 1,151 million for the same period of 2021, mainly due to:
 
A gain of ARS 662 million from the sale of Carnes Pampeanas meatpacking facilities.
 
A decrease in the operating profit of FyO, originated mainly by lower results from commissions of stockpiling operations and consignment of grains and lower margins in grain brokerage commissions.
 
A negative variation in associates results corresponding to Agrofy S.A.
 
In ARS Million
  9M 21 
  9M 20 
 
YoY Var
 
Revenues
  3,095 
  2,839 
  9.0%
Costs
  (2,200)
  (1,850)
  18.9%
Gross profit
  895 
  989 
  (9.5)%
General and administrative expenses
  (191)
  (120)
  59.2%
Selling expenses
  (257)
  (349)
  (26.4)%
Other operating results, net
  760 
  161 
  372.0%
Profit from operations
  1,207 
  681 
  77.2%
Profit from associates
  (56)
  160 
  (135.0)%
Segment Profit
  1,151 
  841 
  36.9%
EBITDA
  1,268 
  737 
  72.0%
Adjusted EBITDA
  1,268 
  737 
  72.0%
 
IV) Corporate Segment
 
The negative result of the segment increased by ARS 1 million, from a loss of ARS 218 million in the nine-month period of fiscal year 2020 to a loss of ARS 219 million in the same period of fiscal year 2021.
 
In ARS Million
  9M 21 
  9M 20 
 
YoY Var
 
General and administrative expenses
  (219)
  (218)
  0.5%
Loss from operations
  (219)
  (218)
  0.5%
Segment loss
  (219)
  (218)
  0.5%
EBITDA
  (214)
  (215)
  (0.5)%
Adjusted EBITDA
  (214)
  (215)
  (0.5)%
 
 
 
81
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Summary as of March 31, 2021
 
 
 
 
Urban Properties and Investments Business (through our subsidiary IRSA Inversiones y Representaciones Sociedad Anónima)
 
We develop our Urban Properties and Investments segment through our subsidiary IRSA. As of March 31, 2021, our direct and indirect equity interest in IRSA was 62.3% over stock capital.
 
Consolidated Results of our Subsidiary IRSA Inversiones y Representaciones S.A.
 
In ARS million
  9M 21 
  9M 20 
 
YoY Var
 
Revenues
  9,151 
  17,336 
  (47.2)%
Results from operations
  (5,434)
  10,313 
  (152.7)%
EBITDA
  (4,829)
  11,363 
  (142.5)%
Adjusted EBITDA
  11,666 
  7,324 
  59.3%
Segment Result
  (7,334)
  11,107 
  (166.0)%
 
Consolidated revenues from sales, rentals and services decreased by 47.2% in the nine-month period of fiscal year 2021 compared to the same period in 2020, while adjusted EBITDA, which excludes the effect of the result from changes in the unrealized fair value of investment properties adding the realized one reached ARS 11,666 million, 59.3% higher than the same period of fiscal year 2020, mainly explained by the office sales made during the period.
 
Financial Indebtedness and Other
 
The following tables contain a breakdown of company’s indebtedness:
 
Agricultural Business
 
Description
Currency
 
Amount (USD MM)(2)
 
 
Interest Rate
 
 
Maturity
 
Bank overdrafts
ARS
  23.1 
 
Variable
 
 
< 360 days
 
Series XVIII NCN
USD
  27.5 
  9.00%
 
Apr-21
 
Series XXV NCN
USD
  59.6 
  9.00%
 
Jul-21
 
Series XXVII NCN
USD
  5.7 
  7.45%
 
Jul-21
 
Series XXIX NCN
USD
  83.0 
  3.50%
 
Dec-21
 
Series XXXII NCN
USD
  34.3 
  9.00%
 
Nov-22
 
Series XXIII NCN (1)
USD
  113.0 
  6.50%
 
Feb-23
 
Series XXX NCN
USD
  25.0 
  2.00%
 
Ago-23
 
Series XXXI NCN
USD
  1.2 
  9.00%
 
Nov-23
 
Other debt
 
  40.8 
  - 
  - 
CRESUD’s Total Debt (3)
USD
  413.2 
    
    
Cash and cash equivalents (3)
USD
  35.8 
    
    
CRESUD’s Net Debt
USD
  377.4 
    
    
Brasilagro’s Total Net Debt
USD
  69.3 
    
    
(1) Net of repurchases
(2) Principal amount stated in USD (million) at an exchange rate of 92.00 ARS/USD and 5.632 BRL/USD, without considering accrued interest or elimination of balances with subsidiaries.
(3) Helmir & CRESUD stand-alone.
 
 
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Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Summary as of March 31, 2021
 
 
 
 
Urban Properties and Investments Business
 
The following table describes our total indebtedness as of March 31, 2021:
 
Description
Currency
 
Amount (USD MM) (1)
 
 
Interest Rate
 
Maturity
Bank overdrafts
ARS
  4.0 
 
Floating
 
< 360 days
Series IV NCN
USD
  46.5 
  7.0%
May-21
Series VI NCN
ARS
  3.7 
 
Floating
 
Jul-21
Series VII NCN
USD
  33.7 
  4.0%
Jan-22
Series X NCN
ARS
  7.6 
 
Floating
 
Mar-22
Series V NCN
USD
  9.2 
  9.0%
May-22
Series IX NCN
USD
  80.7 
  10.0%
Mar-23
Series I NCN
USD
  3.1 
  10.0%
Mar-23
Series VIII NCN
USD
  31.8 
  10.0%
Nov-23
Series XI NCN
USD
  15.8 
  5,0%
Mar-24
Series XII NCN
ARS
  42.0 
 
Floating
 
Mar-24
Loan with IRSA CP(3)
ARS
  72.1 
  - 
Mar-22
Other debt
USD
  13.7 
  - 
Feb-22
IRSA’s Total Debt
USD
  363.9 
    
 
Cash & Cash Equivalents + Investments
USD
  32.0 
    
 
IRSA’s Net Debt
USD
  331.9 
    
 
Bank loans and overdrafts
ARS
  62.5 
  - 
 < 360 days
PAMSA loan
USD
  22.5 
 
Fixed
 
Feb-23
IRSA CP NCN Class II(4)
USD
  358.5 
  8.75%
Mar-23
IRSA CP’s Total Debt
USD
  448,5 
    
 
Cash & Cash Equivalents + Investments (2)
USD
  95.5 
    
 
Intercompany Credit
ARS
  72.2 
    
 
IRSA CP’s Net Debt
USD
  275.8 
    
 
(1) 
Principal amount in USD (million) at an exchange rate of ARS 92.00/USD, without considering accrued interest or eliminations of balances with subsidiaries.
(2) 
Includes Cash and cash equivalents, Investments in Current Financial Assets and related companies notes holding.
(3) 
Includes amounts taken by IRSA and subsidiaries.
(4) Net of repurchases.
 
Comparative Summary Consolidated Balance Sheet Data
 
In ARS million
 
Mar-21
 
 
Jun-20
 
Current assets
  57,963 
  312,742 
Non-current assets
  242,043 
  617,189 
Total assets
  300,006 
  929,931 
Current liabilities
  76,326 
  234,007 
Non-current liabilities
  120,351 
  530,562 
Total liabilities
  196,677 
  764,569 
Total capital and reserves attributable to the shareholders of the controlling company
  35,950 
  34,060 
Minority interests
  67,379 
  131,302 
Shareholders’ equity
  103,329 
  165,362 
Total liabilities plus minority interests plus shareholders’ equity
  300,006 
  929,931 
 
Comparative Summary Consolidated Statement of Income Data
 
In ARS million
 
Mar-21
 
 
Mar-20
 
Gross profit
  16,000 
  18,291 
Profit from operations
  2,530 
  17,016 
Share of profit of associates and joint ventures
  (2,059)
  836 
Profit from operations before financing and taxation
  471 
  17,852 
Financial results, net
  1,324 
  (22,870)
Loss before income tax
  1,795 
  (5,018)
Income tax expense
  (2,924)
  (4,503)
Result of the period of continuous operations
  (1,129)
  (9,521)
Result of discontinued operations after taxes
  (8,102)
  (1,068)
Result for the period
  (9,231)
  (10,589)
Controlling company’s shareholders
  (3,997)
  (14,529)
Non-controlling interest
  (5,234)
  3,940 
 
 
 
 
 
83
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Summary as of March 31, 2021
 
 
  
Comparative Summary Consolidated Statement of Cash Flow Data
 
In ARS million
 
Mar-21
 
 
Mar-20
 
Net cash generated by operating activities
  (5,081)
  36,886 
Net cash generated by investment activities
  59,540 
  22,974 
Net cash used in financing activities
  (39,658)
  (95,781)
Total net cash (used in) / generated during the fiscal period
  14,801 
  (35,921)
 
Ratios
 
In ARS million
 
Mar-21
 
 
Mar-20
 
Liquidity (1)
  0.759 
  1.336 
Solvency (2)
  0.525 
  0.216 
Restricted capital (3)
  0.807 
  0.664 
(1) Current Assets / Current Liabilities
(2) Total Shareholders’ Equity/Total Liabilities
(3) Non-current Assets/Total Assets
 
Material events of the quarter and subsequent events
 
February 2021: Brasilagro - Capital Increase
 
On February 3, 2021, Brasilagro has concluded a public share offering for a total amount of approximately BRL 500 million by issuing 20 million shares in a primary offering and 2.73 million in a secondary offering.
 
The company participated in the primary issuance by acquiring, directly or through subsidiaries, 6,971,229 shares. The consideration for the shares was materialized with the sale, which agreement was informed to the market on December 23, 2020, of 100% of the shares of its indirectly controlled subsidiaries, Agropecuaria Acres del Sud SA, Ombu Agropecuaria SA, Yatay Agropecuaria SA and Yuchan Agropecuaria S.A. owners of approximately 9,900 agricultural hectares in the corn belt of ​​Bolivia.
 
After this transaction, CRESUD's stake in Brasilagro, net of treasury shares, increased from 33.8% to 34.1% of its capital stock.
 
February 2021: Sale of meatpacking facility Carnes Pampeanas
 
On February 24, the Company sold 100% of the shares of Sociedad Anónima Carnes Pampeanas S.A., owner of the Carnes Pampeanas meatpacking facility in the province of La Pampa, Argentina.
 
The price of the operation was agreed at USD 10 million, which has already been fully paid.
 
The accounting result of the operation is a gain of approximately ARS 662 million, recognized in the Company's Financial Statements for the third quarter of fiscal year 2021.
 
Carnes Pampeanas S.A. was acquired by CRESUD in 2007 in partnership with Tyson Foods and Cactus Feeders. Subsequently we have increased our participation in the business, reaching all the shares of the company since 2011.
 
 
 
84
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Summary as of March 31, 2021
 
 
 
 
March 2021: CRESUD’s Capital Increase
 
On February 17, 2021, the Company announced the launch of its public offering of shares for up to 90 million shares (or its equivalent 9 million ADS) and 90,000,000 warrants to subscribe for new common shares, to registered holders as of February 19, 2021. Each right corresponding to one share (or ADS) allowed its holder to subscribe 0.1794105273 new ordinary shares and receive free of charge an option with the right to subscribe 1 additional ordinary share in the future. The final subscription price for the new shares was ARS 70.31 or USD 0.472 and for the new ADS it was USD 4.72. The new shares, registered, of ARS 1 (one peso) of par value each and with the right to one vote per share gives the right to receive dividends under the same conditions as the current shares in circulation.
 
On March 5, 2021, having finished the pre emptive rights subscription period, the Company's shareholders have subscribed the amount of 87,264,898 new additional shares, that is 97% of the shares offered, and have requested through the accretion right 26,017,220 additional new shares, for which 2,735,102 new shares will be issued, completing the total issuance of 90,000,000 new shares (or their equivalent in ADSs) offered. Likewise, 90,000,000 options will be issued that will entitle the holders through their exercise to acquire up to 90,000,000 additional new shares.
 
The exercise price of the warrants will be USD 0.566. The warrants may be exercised quarterly from the 90th day of their issuance on the 17th to the 25th (inclusive) of the months of February, May, September, and November of each year (provided that dates are business days in the city of New York and in the Autonomous City of Buenos Aires) until their expiration 5 years from the date of issue.
 
As of the date of issuance of these financial statements, the Company received all the funds in the amount of USD 42.5 million and issued the new shares, increasing the capital stock to 591,642,804 million.
 
Mayo 2021: Capital Increase of our subsidiary IRSA
 
On April 12, 2021, our subsidiary IRSA announced the launch of its public offering of shares for up to 80 million shares (or its equivalent 8 million GDS) and 80 million warrants to subscribe for new common shares, to registered holders as of April 16, 2021. Each right corresponding to one share (or GDS) allowed its holder to subscribe 0.1382465082 new ordinary shares and receive free of charge an option with the right to subscribe 1 additional ordinary share in the future. The final subscription price for the new shares was ARS 58.35 or USD 0.36 and for the new GDS it was USD 3.60. The new shares, registered, of ARS 1 (one peso) of par value each and with the right to one vote per share gives the right to receive dividends under the same conditions as the current shares in circulation.
 
On May 6, 2021, having finished the preemptive rights subscription period, IRSA’s shareholders have subscribed the amount of 79,144,833 new additional shares, that is 99% of the shares offered, and have requested through the accretion right 15,433,539 additional new shares, for which 855,167 new shares will be issued, completing the total issuance of 80 million new shares (or their equivalent in GDS) offered. Likewise, 80 million options will be issued that will entitle the holders through their exercise to acquire up to 80 million additional new shares.
 
The exercise price of the warrants will be USD 0.432. The warrants may be exercised quarterly from the 90th day of their issuance on the 17th to the 25th (inclusive) of the months of February, May, September, and November of each year on the business day prior to maturity and on the date of maturity (if dates are business days in the city of New York and in the Autonomous City of Buenos Aires) until their expiration 5 years from the date of issue.
 
As of the date of issuance of these financial statements, IRSA is in the process of liquidating the capital increase, which upon completion will receive funds for USD 28.8 million, increasing the capital stock to 658,676,460.
 
Cresud, exercising its preemptive rights, has subscribed new shares according to its 62.3% stake.
 
 
85
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Summary as of March 31, 2021
 
 
 
May 2021: Brasilagro’s Warrants
 
On May 15, 2021, operates the maturity of Brasilagro's warrants, of which Cresud owns, directly and indirectly, 181,368 that entitle it to acquire 14,542,083 new shares. The intention of the Company is to exercise, partially or totally, said warrants. The exercise price is approximately R$ 22.12 per share.
 
EBITDA Reconciliation
 
In this summary report, we present EBITDA and Adjusted EBITDA. We define EBITDA as profit for the period excluding: (i) result of discontinued operations, (ii) income tax expense, (iii) financial results, net iv) results from participation in associates and joint ventures; and (v) depreciation and amortization. We define Adjusted EBITDA as EBITDA minus net profit from changes in the fair value of investment properties, not realized, excluding barter agreement results.
 
EBITDA and Adjusted EBITDA are non-IFRS financial measures that do not have standardized meanings prescribed by IFRS. We present EBITDA and adjusted EBITDA because we believe they provide investors supplemental measures of our financial performance that may facilitate period-to-period comparisons on a consistent basis. Our management also uses EBITDA and Adjusted EBITDA from time to time, among other measures, for internal planning and performance measurement purposes. EBITDA and Adjusted EBITDA should not be construed as an alternative to profit from operations, as an indicator of operating performance or as an alternative to cash flow provided by operating activities, in each case, as determined in accordance with IFRS. EBITDA and Adjusted EBITDA, as calculated by us, may not be comparable to similarly titled measures reported by other companies. The table below presents a reconciliation of profit for the relevant period to EBITDA and Adjusted EBITDA for the periods indicated:
 
 
For the nine-month period ended March 31 (in ARS million)
 
 
 
2021
 
 
2020
 
Result for the period
  (9,231)
  (10,589)
Result from discontinued operations
  8,102 
  1,068 
Income tax expense 
  2,924 
  4,503 
Net financial results 
  (1,324)
  22,870 
Share of profit of associates and joint ventures 
  2,059 
  (836)
Depreciation and amortization 
  1,732 
  1,775 
EBITDA (unaudited) 
  4,262 
  18,791 
Gain from fair value of investment properties, not realized - agribusiness
  (52)
  (17)
Gain from fair value of investment properties, not realized - Urban Properties Business
  16,495 
  (3,670)
Realized sale – Urban Properties and Investments Business
  - 
  (369)
Adjusted EBITDA (unaudited) 
  20,705 
  14,735 
 

 
 
86
 
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
 
 
Summary as of March 31, 2021
 
 
 
 
Brief comment on future prospects for the Fiscal Year
 
The year 2020 was dominated by the COVID-19 pandemic, which originated in China and subsequently spread to numerous countries, generating uncertainty and volatility in the markets, adversely impacting the global, Argentine and regional economy. Our agricultural operations continued their development normally as agricultural production was an essential activity to guarantee the supply of food.
 
The 2021 campaign is presented with radical changes from what was observed in the market at the end of the previous year. As of August, the United States reduced its intention to plant the main crops and South America began to show indicators of lack of water. With Chinese demand for grains recovering after its swine flu outbreak, and with the supply showing some warning signs (stagnant production and friction in international trade due to covid, among others), China accelerated its imports, mainly corn. This, added to the weakness of the dollar in the world, pushed the international prices of commodities upwards. Soybeans and corn recovered their prices so far this season between 80% and 120%, respectively. The challenge will be in the climatic evolution in the region in the coming months, where the last part of the soybean harvest and a large part of the corn harvest will take place. If the climatic conditions continue to accompany as in recent months and we achieve good agricultural yields, we hope to conclude a campaign with excellent results.
 
We also expect good results for the livestock activity driven by the Chinese demand for meat, a good level of production and local farm prices that have been growing steadily. We will continue to focus on improving productivity and controlling costs, working efficiently to achieve the highest possible operating margins. We will continue concentrating our production in our own fields, mainly in the Northwest of Argentina and consolidating our activity in Brazil.
 
Furthermore, as part of our business strategy, we will continue to sell the farms that have reached their highest level of appreciation in the region.
 
The urban properties and investments business, which we own through IRSA, presents challenges for the year 2021. After six months since its reopening in October 2020, where a gradual recovery of activity in terms of occupancy and tenant sales could be evidenced, the shopping malls of the Metropolitan Area of ​​Buenos Aires suspended their operations again from April 16 to May 21, 2021 by provision of decrees 241/2021 and 287/2021 of the national government. This situation leads to a new review of trade policy. To continue accompanying the tenants in this difficult context, prioritizing the long-term relationship, in April IRSA PC decided to waive the rent for the closed period to compliant tenants. The impacts of these new restrictions on the business will be reflected in the fourth quarter of fiscal year 2021.The office segment continues to operate normally despite the “home-office” modality and the slight increase in vacancies observed in the portfolio.
 
On the national and international framework above mentioned, the Board of Directors of the Company will continue evaluating financial, economic and / or corporate tools that allow the Company to improve its position in the market in which it operates and have the necessary liquidity to meet its obligations. Within the framework of this analysis, the indicated tools may be linked to corporate reorganization processes (merger, spin-off or a combination of both), implementation of financial and / or corporate efficiencies in international companies directly or indirectly owned by the Company through reorganization processes, disposal of assets in public and / or private form that may include real estate as well as negotiable securities owned by the Company, repurchase of shares and instruments similar to those described that are useful to the proposed objectives. All this as described in the Company's Annual Report for the fiscal year ending June 30, 2020.
 
The Company keeps its commitment to preserve the health and well-being of its clients, employees, tenants and the entire population, constantly reassessing its decisions in accordance with the evolution of events, the regulations that are issued and the guidelines of the competent authorities.
 
 
Alejandro Elsztain
Second Vice-President
 
 
 
Véase nuestro informe de fecha 09/11/18
PRICE WATERHOUSE & Co. S.R.L.
C.P.C.E.C.A.B.A. T° 1 F° 17
 
87