SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of February, 2005
CRESUD SOCIEDAD ANONIMA COMERCIAL INMOBILIARIA
FINANCIERA Y AGROPECUARIA
(Exact name of Registrant as specified in its charter)
CRESUD INC.
(Translation of registrants name into English)
Republic of Argentina
(Jurisdiction of incorporation or organization)
Moreno 877, 23rd Floor, (C1091AAQ)
Buenos Aires, Argentina
(Address of principal executive offices)
Form 20-F x Form 40-F ¨
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
CRESUD S.A.C.I.F. and A
(THE COMPANY)
REPORT ON FORM 6-K
Attached is a copy of the English translation of the Unaudited Financial Statements for the six-month period ended on December 31, 2004 and 2003.
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera
y Agropecuaria
Unaudited Financial Statements
corresponding to the six-month period
ended December 31, 2004 and 2003
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Financial Statements
Presentation |
||
Name of the Company: |
Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria | |
Legal Address: |
Moreno 877, 23rd Floor Ciudad Autónoma de Buenos Aires | |
Principal Activity: |
Agriculture and livestock and real-estate |
Financial statements for the period ended December 31, 2004 presented in
comparative form with the previous year and with the same period of the previous year
Financial year Nº 70 started on July 1, 2004
DATES OF REGISTRATION AT THE PUBLIC REGISTRY OF COMMERCE
Of the by-laws: |
February 19,1937 | |
Of the latest amendment: |
June 2, 1997 | |
Duration of the Company: |
June 6, 2082 |
Information on controlled companies in Note 2 to the unaudited consolidated Financial Statements
CAPITAL STATUS ( Note 3 of unaudited basic financial statements)
SHARES
Type of stock |
Authorized |
Subscribed |
Paid-in | |||
pesos | pesos | pesos | ||||
Ordinary certified shares of $1 face value and 1 vote each |
155,650,742 | 155,650,742 | 155,650,742 |
Comerical, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Unaudited Consolidated Balance Sheet as at December 31, 2004, June 30, 2004 and December 31, 2003
December 31, 2004 (Notes 1, 2 and 3) |
June 30, 2004 (Notes 1, 2 and 3) |
December 31, 2003 (Notes 1, 2 and 3) |
December 31, 2004 (Notes 1, 2 and 3) |
June 30, 2004 (Notes 1, 2 and 3) |
December 31, 2003 (Notes 1, 2 and 3) | ||||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | ||||||||||||
ASSETS |
LIABILITIES |
||||||||||||||||
Current Assets |
Current Liabilities |
||||||||||||||||
Cash and banks (Note 4.a.) |
27,085,469 | 12,749,766 | 20,556,016 | Debts: |
|||||||||||||
Investments (Note 4.b.) |
2,358,471 | 1,874,997 | 2,472,098 | Trade accounts payable (Note 4.f.) |
11,675,837 | 10,840,177 | 7,678,783 | ||||||||||
Trade accounts receivable (Note 4.c.) |
6,483,785 | 5,354,858 | 6,269,391 | Loans (Note 4.g.) |
38,606,380 | 8,090,261 | 1,383,511 | ||||||||||
Other receivables and prepaid expenses (Note 4.d.) |
7,413,206 | 15,019,353 | 7,857,643 | Salaries and social security payable (Note 4.h.) |
895,492 | 1,475,373 | 780,615 | ||||||||||
Inventories (Note 4.e.) |
45,751,060 | 35,441,885 | 32,367,196 | Taxes payable (Note 4.i.) |
4,494,052 | 2,206,532 | 1,394,101 | ||||||||||
Total current assets |
89,091,991 | 70,440,859 | 69,522,344 | Other debts (Note 4.j.) |
10,758,911 | 6,689,562 | 1,283,383 | ||||||||||
Total Debts |
66,430,672 | 29,301,905 | 12,520,393 | ||||||||||||||
Total current liabilities |
66,430,672 | 29,301,905 | 12,520,393 | ||||||||||||||
Non-current assets |
|||||||||||||||||
Other receivables and prepaid expenses (Note 4.d.) |
5,358,746 | 3,948,778 | 3,961,539 | ||||||||||||||
Inventories (Note 4.e.) |
50,872,903 | 44,740,030 | 39,315,176 | Non-current liabilities |
|||||||||||||
Investments (Note 4.b.) |
291,220,422 | 260,419,568 | 206,067,742 | Taxes payable (Note 4.i.) |
28,774,261 | 26,213,217 | 24,181,231 | ||||||||||
Other investments (Note 4.b.) |
134,949,064 | 132,962,608 | 146,354,259 | Loans (Note 4.g.) |
123,285,777 | 125,880,874 | 127,670,143 | ||||||||||
Fixed assets, net (Schedule A) |
163,458,765 | 160,026,473 | 149,839,384 | Other debts (Note 4.j.) |
39,327 | 39,327 | 39,327 | ||||||||||
Intangible assets (Schedule B) |
| | 123,212 | Total non-current liabilities |
152,099,365 | 152,133,418 | 151,890,701 | ||||||||||
Subtotal Non-Current Assets |
645,859,900 | 602,097,457 | 545,661,312 | Total Liabilities |
218,530,037 | 181,435,323 | 164,411,094 | ||||||||||
Goodwill (Note 4.b.) |
(36,326,481 | ) | (25,869,346 | ) | (19,931,610 | ) | Minority interest |
5,366 | 65,451 | 104,178 | |||||||
Total Non-Current Assets |
609,533,419 | 576,228,111 | 525,729,702 | SHAREHOLDERS EQUITY |
480,090,007 | 465,168,196 | 430,736,774 | ||||||||||
Total Assets |
698,625,410 | 646,668,970 | 595,252,046 | Total Liabilities and Shareholders Equity | 698,625,410 | 646,668,970 | 595,252,046 | ||||||||||
The accompanying notes and schedules are an integral part of these financial statements
Saúl Zang First Vice-Chairman serving as Acting Chairman |
Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Unaudited Consolidated Statement of Income
Corresponding to the periods beginning as from July 1, 2004 and 2003
and ended on December 31, 2004 and 2003
December 31, 2004 (Notes 1, 2 and 3) |
December 31, 2003 (Notes 1, 2 and 3) |
|||||
Pesos | Pesos | |||||
Sales |
||||||
Crops |
11,236,161 | 8,793,868 | ||||
Beef cattle |
18,690,480 | 12,165,707 | ||||
Milk |
1,567,574 | 1,831,837 | ||||
Feed Lot |
1,390,251 | 4,398,817 | ||||
Others |
2,358,210 | 2,208,215 | ||||
Total Sales |
35,242,676 | 29,398,444 | ||||
Cost of sales (Schedule F) |
||||||
Crops |
(11,391,820 | ) | (7,143,937 | ) | ||
Beef cattle |
(14,691,109 | ) | (9,124,948 | ) | ||
Milk |
(876,965 | ) | (396,276 | ) | ||
Feed Lot |
(1,258,982 | ) | (3,851,046 | ) | ||
Others |
(580,398 | ) | (671,997 | ) | ||
Total cost of sales |
(28,799,274 | ) | (21,188,204 | ) | ||
Gross income |
6,443,402 | 8,210,240 | ||||
Selling expenses (Schedule H) |
(2,506,807 | ) | (2,192,027 | ) | ||
Administrative expenses (Schedule H) |
(3,132,965 | ) | (3,546,056 | ) | ||
Net gain on sale of farms |
| 1,669,470 | ||||
Gain from inventory holdings (Schedule F) |
6,254,786 | 1,345,036 | ||||
Operating income |
7,058,416 | 5,486,663 | ||||
Financial results |
||||||
Generated by assets: |
||||||
Exchange differences and discounts |
6,847 | 8,181,406 | ||||
Interest income |
222,693 | 122,269 | ||||
Bad debts (Schedule E) |
| 29,928 | ||||
Reference stabilization index (CER) |
| (302,619 | ) | |||
Tax on debts and credits |
(673,530 | ) | (558,327 | ) | ||
Convertible Bonds purchase interest |
5,473,411 | 5,846,354 | ||||
Others |
159,180 | 7,138 | ||||
5,188,601 | 13,326,149 | |||||
Generated by liabilities: |
||||||
Reference stabilization index (CER) |
1,653 | (2,795 | ) | |||
Interest expense |
(102,488 | ) | (4,734 | ) | ||
Financial expenses |
||||||
Convertible Bonds issued interest |
(5,160,478 | ) | (5,625,121 | ) | ||
Others |
(1,158,260 | ) | (778,532 | ) | ||
Exchange differences and discounts |
(963,859 | ) | (6,312,762 | ) | ||
(7,383,432 | ) | (12,723,944 | ) | |||
Other expenses |
||||||
Gains from others fixed assets sales |
22,061 | 251,561 | ||||
Others |
(3,328,555 | ) | 5,434 | |||
(3,306,494 | ) | 256,995 | ||||
Income from related companies |
14,087,524 | 2,102,625 | ||||
Management fees |
(1,059,305 | ) | (529,129 | ) | ||
Income before income tax and minority interest |
14,585,310 | 7,919,359 | ||||
Income tax expense |
(5,111,658 | ) | (3,259,735 | ) | ||
Minority interest |
60,085 | 102,532 | ||||
Net income for the period |
9,533,737 | 4,762,156 | ||||
The accompanying notes and schedules are an integral part of these financial statements
Saúl Zang First Vice-Chairman serving as Acting Chairman |
Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Unaudited Consolidated Statement of Cash Flow
Corresponding to the periods beginning as from July 1, 2004 and 2003
and ended on December 31, 2004 and 2003
December 31, 2004 (Notes 1, 2 and 3) |
December 31, 2003 (Notes 1, 2 and 3) |
|||||
Pesos | Pesos | |||||
Changes in funds |
||||||
Funds at the beginning of the year |
13,138,533 | 21,837,823 | ||||
Funds at the end of the period |
27,831,763 | 21,376,305 | ||||
Net increase (decrease) in funds |
14,693,230 | (461,518 | ) | |||
Causes of changes in funds |
||||||
Operations activities |
||||||
Income for the period |
9,533,737 | 4,762,156 | ||||
Liabilities interest |
5,911,384 | 5,625,120 | ||||
Income tax |
5,111,658 | 3,047,982 | ||||
Adjustments made to reach net funds from operations activities |
||||||
Results from interest in related companies |
(14,087,524 | ) | (2,102,625 | ) | ||
Minority interest |
(60,085 | ) | (102,532 | ) | ||
Increase in allowances and reserves |
3,648,938 | 2,306,749 | ||||
Amortization and depreciation |
1,765,735 | 1,837,383 | ||||
Results from inventory holdings |
(6,254,786 | ) | (1,345,036 | ) | ||
Financial results |
(4,817,103 | ) | (4,677,012 | ) | ||
Result from sale of fixed assets |
(22,061 | ) | (1,921,031 | ) | ||
Changes in operating assets and liabilities |
||||||
Increase in current investments |
5,362,711 | 5,707,778 | ||||
(Decrease) increase in trade accounts receivable |
(1,128,927 | ) | 1,496,244 | |||
Increase in other receivables |
6,368,304 | (4,567,719 | ) | |||
Decrease in inventories |
(10,691,110 | ) | (9,272,155 | ) | ||
Decrease in social securities contributions and taxes payable and advances to customers |
(842,975 | ) | (3,206,887 | ) | ||
Decrease in trade accounts payable |
(1,753,973 | ) | (2,618,599 | ) | ||
Dividends collected |
981,315 | 1,104,139 | ||||
Increase (decrease) in other debts |
3,010,044 | (2,696,206 | ) | |||
Net fund provided by (applied to) operations activities |
2,035,282 | (6,622,251 | ) | |||
Investment activities |
||||||
Increase in permanent investments |
(1,502,678 | ) | (1,199,672 | ) | ||
Increase in interest in related companies |
(7,418,437 | ) | (5,204,531 | ) | ||
Acquisition and upgrading of fixed assets |
(4,919,680 | ) | (3,217,599 | ) | ||
Sale of fixed assets |
247,562 | 4,677,982 | ||||
Net funds applied to investment activities |
(13,593,233 | ) | (4,943,820 | ) | ||
Financing activities |
||||||
Exercise of Warrant |
4,474,246 | 19,258,074 | ||||
Dividends paid |
(3,000,000 | ) | (1,500,000 | ) | ||
Exercise of rights offering on treasury stock |
173,200 | 319,437 | ||||
Increase in financial loans |
36,468,450 | | ||||
Decrease in financial loans |
(11,864,715 | ) | (5,667,108 | ) | ||
Issuance expenses of Convertible Bonds |
| (1,305,850 | ) | |||
Net funds provided by financing activities |
26,251,181 | 11,104,553 | ||||
Net increase (decrease) in funds |
14,693,230 | (461,518 | ) | |||
Items not involving changes in funds |
||||||
Transfer of inventory to fixed assets |
503,848 | 37,228 | ||||
Repayment of financial loans through issue of stock by exercise of conversion right |
3,740,628 | 16,097,982 | ||||
Complementary information |
||||||
Interest paid |
5,108,487 | 5,669,516 | ||||
Income tax expense paid |
385,077 | 854,224 |
The accompanying notes and schedules are an integral part of these financial statements
Saúl Zang First Vice-Chairman serving as Acting Chairman |
Comercial, Inmobiliaria, Financiera y Agropecuaria
and Subsidiaries
Notes to the Unaudited Consolidated Financial Statements
Corresponding to the periods beginning as from July 1, 2004 and 2003
and ended on December 31, 2004 and 2003
NOTE 1: | BASIS OF PRESENTATION OF THE FINANCIAL STATEMENTS |
As a consequence of the application of General Resolutions No. 368/01, 434/03, 441/03 and 459/04 of the Comisión Nacional de Valores, which require that consolidated Financial Statements be presented as established by Technical Resolution No. 21 of the Federación Argentina de Consejos Profesionales de Ciencias Económicas, the Balance Sheet as of December 31, 2004 and 2003 and the Statements of Income and the Statements of Cash Flows for the fiscal periods then ended were consolidated on a line by line basis with the financial statements of such companies in which it holds a majority of the voting shares, by application of the new rules, discontinuation of adjustment for inflation and application of proportional consolidation for investments in which it has joint control (see Note 1.b and 1.c to the unaudited basic financial statements).
As from this period, the Company has applied Technical Resolution No. 21 as concerns the proportional consolidation with Cactus Argentina S.A. on a 50% basis on account of the joint control held, and applied the same percentage for elimination of balances existing between them.
The financial statements of the subsidiary companies Inversiones Ganaderas S.A., Futuros y Opciones.Com S.A. and Cactus Argentina S.A. as of December 31, 2004 and 2003 have been used in order to determine the investment at its equity value, line by line consolidation and proportional consolidation.
For purposes of comparability, reclassifications have been made on the information at December 31, 2003 and June 30, 2004.
These Financial Statements and the corresponding notes and schedules are prepared in Argentine Pesos.
NOTE 2: | CORPORATE CONTROL |
The Companys interest in other companies is shown in the following table.
COMPANY |
PERCENTAGE OF VOTING SHARES OWNED | |
Inversiones Ganaderas S.A. |
99.99 | |
Futuros y Opciones.Com S.A. |
70.00 | |
JOINT CONTROL |
||
Cactus Argentina S.A. |
50.00 |
NOTE 3: | SIGNIFICANT ACCOUNTING POLICIES |
The Financial Statements of the Subsidiary Companies mentioned in Note 2 have been prepared based on accounting principles consistent with those followed by Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria for the preparation of its Financial Statements, as detailed in Note 2 of the unaudited basic financial statements.
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Notes to the Unaudited Consolidated Financial Statements (Continued)
NOTE 4: | Details of consolidated balance sheet and consolidated statement of income accounts |
a. | Cash and banks |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | ||||
Pesos | Pesos | Pesos | ||||
Cash |
65,568 | 77,971 | 74,323 | |||
Foreign currency (Schedule G) |
294,718 | 54,211 | 37,820 | |||
Patacones currency |
73 | 39 | | |||
Local currency checking account |
631,400 | 4,961,714 | 1,207,040 | |||
Patacones currency checking account |
22 | 22 | 22 | |||
Foreign currency checking account (Schedule G) |
9,055,590 | 1,220,084 | 18,970,354 | |||
Local currency saving account |
9,897 | 12,295 | 18,855 | |||
Foreign currency saving account (Schedule G) |
16,610,427 | 5,949,506 | 32,424 | |||
Checks to be deposited |
417,774 | 473,924 | 215,178 | |||
27,085,469 | 12,749,766 | 20,556,016 | ||||
b. | Investments and Goodwill |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
|||||||
Pesos | Pesos | Pesos | |||||||
Investment |
|||||||||
Investment (Schedule C and G) |
2,358,471 | 1,874,997 | 2,472,098 | ||||||
2,358,471 | 1,874,997 | 2,472,098 | |||||||
Investment |
|||||||||
Investment from related companies (Schedule C) |
291,220,422 | 260,419,568 | 206,067,742 | ||||||
291,220,422 | 260,419,568 | 206,067,742 | |||||||
Other investments |
|||||||||
Other investments (Schedule C and G) |
134,949,064 | 132,962,608 | 146,354,259 | ||||||
134,949,064 | 132,962,608 | 146,354,259 | |||||||
Goodwill |
|||||||||
Goodwill (Schedule C) |
(36,326,481 | ) | (25,869,346 | ) | (19,931,610 | ) | |||
(36,326,481 | ) | (25,869,346 | ) | (19,931,610 | ) | ||||
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Notes to the Unaudited Consolidated Financial Statements (Continued)
NOTE 4: | (Continued) |
c. | Trade accounts receivable |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
|||||||
Pesos | Pesos | Pesos | |||||||
Current |
|||||||||
Accounts receivable in local currency |
5,885,829 | 5,579,474 | 6,510,559 | ||||||
Less: |
|||||||||
Provision for defaulting debtors (Schedule E) |
(373,535 | ) | (412,067 | ) | (449,197 | ) | |||
Accounts receivable in foreign currency (Schedule G) |
956,193 | 3,983 | 78,202 | ||||||
Subsidiaries, related companies Law Nº 19,550 Section 33 and related parties: |
|||||||||
Cactus Argentina S.A. |
15,298 | 95,472 | 71,453 | ||||||
Alto Palermo S.A. |
| 87,359 | 40,003 | ||||||
IRSA Inversiones y Representaciones Sociedad Anónima |
| 637 | 18,371 | ||||||
6,483,785 | 5,354,858 | 6,269,391 | |||||||
d. | Other receivables and prepaid expenses |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | ||||
Pesos | Pesos | Pesos | ||||
Current |
||||||
Prepaid leases |
30,727 | 4,465,136 | 32,016 | |||
Tax on Minimum Hypothetical Income (Note 2.p.) |
8,368 | 61,086 | 61,607 | |||
Guarantee deposits and premiums (Schedule G) |
315,433 | 2,188,998 | 1,448,794 | |||
Secured by mortgage (Schedule G) |
1,055,695 | 1,033,997 | 1,061,931 | |||
Prepaid expenses |
1,113,756 | 897,192 | 446,759 | |||
Expenses to recover |
| | 39,387 | |||
Deferred tax |
| | 30,377 | |||
Tax prepayments (net of accrual) |
3,610,634 | 3,793,343 | 2,966,567 | |||
Subsidiaries, related companies Law Nº 19,550 Section 33 and related parties: |
||||||
Cactus Argentina S.A. |
677,164 | 673,200 | 668,993 | |||
Agro-Uranga S.A. |
234,279 | | | |||
Credits to employees |
35,542 | 37,751 | 43,020 | |||
Shareholders |
| 1,711,833 | 455,583 | |||
Others (Schedule G) |
331,608 | 156,817 | 602,609 | |||
7,413,206 | 15,019,353 | 7,857,643 | ||||
Non-current |
||||||
Secured by mortgage (Schedule G) |
| | 1,008,000 | |||
Value Added Tax |
5,180,327 | 3,847,020 | 2,129,515 | |||
Tax on Minimum Hypothetical Income |
99,148 | 56,450 | 815,556 | |||
Deferred tax |
76,668 | 40,193 | | |||
Others |
2,603 | 5,115 | 8,468 | |||
5,358,746 | 3,948,778 | 3,961,539 | ||||
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Notes to the Unaudited Consolidated Financial Statements (Continued)
NOTE 4: | (Continued) |
e. | Inventories |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | ||||
Pesos | Pesos | Pesos | ||||
Current |
||||||
Livestock |
16,954,543 | 18,829,580 | 15,664,891 | |||
Crops |
4,803,409 | 8,639,910 | 3,782,649 | |||
Unharvested crops |
20,090,681 | 1,603,897 | 9,374,173 | |||
Seeds and fodder |
170,057 | 241,516 | 139,344 | |||
Materials and others |
3,410,623 | 4,686,649 | 2,141,665 | |||
Advances to suppliers |
321,747 | 1,440,333 | 1,264,474 | |||
45,751,060 | 35,441,885 | 32,367,196 | ||||
Non-Current |
||||||
Livestock |
50,872,903 | 44,740,030 | 39,315,176 | |||
50,872,903 | 44,740,030 | 39,315,176 | ||||
f. | Trade accounts payable |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | ||||
Pesos | Pesos | Pesos | ||||
Current |
||||||
Suppliers in local currency |
4,178,801 | 4,746,787 | 2,732,591 | |||
Suppliers in foreign currency (Schedule G) |
2,839,943 | 1,133,055 | 993,622 | |||
Subsidiaries, related companies Law Nº 19,550 Section 33 and related parties: |
||||||
Inversora Bolívar S.A. |
6,341 | 5,349 | | |||
Alto Palermo S.A. |
44,233 | 175,133 | 38,931 | |||
IRSA Inversiones y Representaciones S.A. |
116,259 | 1,108 | 35,378 | |||
Cactus Argentina S.A. |
265,108 | 943,989 | 224,345 | |||
Estudio Zang, Bergel & Viñes |
23,486 | 81,646 | 15,757 | |||
Fundación IRSA |
1,177,988 | 1,177,988 | 460,642 | |||
Directors |
43,543 | 3,471 | 967 | |||
Accrual for other expenses (Schedule G) |
2,685,005 | 2,358,474 | 2,975,595 | |||
Accrual for cereal expenses |
295,130 | 213,177 | 200,955 | |||
11,675,837 | 10,840,177 | 7,678,783 | ||||
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Notes to the Unaudited Consolidated Financial Statements (Continued)
NOTE 4: | (Continued) |
g. | Loans |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
|||||||
Pesos | Pesos | Pesos | |||||||
Current |
|||||||||
Local financial loans (Note 16) (Schedule G) |
37,220,355 | 6,757,677 | | ||||||
Convertible Bonds 2007 Interest payable (Schedule G) |
592,928 | 589,239 | 612,819 | ||||||
Subsidiaries, related companies Law Nº 19,550 Section 33 and related parties: |
|||||||||
Shareholders |
792,845 | 740,021 | 767,329 | ||||||
Directors |
252 | 3,324 | 3,363 | ||||||
38,606,380 | 8,090,261 | 1,383,511 | |||||||
Non Current |
|||||||||
Convertible Bonds 2007 (Schedule G) |
53,363,537 | 56,416,538 | 57,451,821 | ||||||
Subsidiaries, related companies Law Nº 19,550 Section 33 and related parties: |
|||||||||
Shareholders |
71,356,061 | 70,853,048 | 71,937,067 | ||||||
Directors |
22,640 | 318,281 | 315,268 | ||||||
Convertible Bonds 2007 expenses |
(1,456,461 | ) | (1,706,993 | ) | (2,034,013 | ) | |||
123,285,777 | 125,880,874 | 127,670,143 | |||||||
h. | Salaries and social security payable |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | ||||
Pesos | Pesos | Pesos | ||||
Current |
||||||
Vacation, statutory annual bonus allowance |
687,495 | 1,070,155 | 482,590 | |||
Social security administration |
192,804 | 196,017 | 163,380 | |||
Salaries payable |
1,642 | 192,632 | 125,796 | |||
Health care scheme |
2,657 | 2,533 | 1,979 | |||
Others |
10,894 | 14,036 | 6,870 | |||
895,492 | 1,475,373 | 780,615 | ||||
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Notes to the Unaudited Consolidated Financial Statements (Continued)
NOTE 4: | (Continued) |
i. | Taxes payable |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
|||||||
Pesos | Pesos | Pesos | |||||||
Current |
|||||||||
Accrual for income tax |
2,669,428 | 4,648,244 | 258,129 | ||||||
Advances to Income tax |
| (2,808,338 | ) | | |||||
Tax on Minimum Hypothetical Income |
102,270 | 24,135 | 788,336 | ||||||
Value added tax |
21,445 | 17,962 | 106,181 | ||||||
Property tax payable |
80,613 | 103,284 | 89,746 | ||||||
Taxes withheld for income tax |
68,500 | 188,125 | 35,059 | ||||||
Sales tax payable |
(183,098 | ) | 91,306 | 170,066 | |||||
Taxes withheld-Gross sales tax payable |
128,575 | (80,728 | ) | (87,300 | ) | ||||
Taxes withheld-Value added tax payable |
57 | 18,932 | 31,485 | ||||||
Others (1) |
1,606,262 | 3,610 | 2,399 | ||||||
4,494,052 | 2,206,532 | 1,394,101 | |||||||
Non-current |
|||||||||
Deferred tax |
28,774,261 | 26,213,217 | 24,181,231 | ||||||
28,774,261 | 26,213,217 | 24,181,231 | |||||||
(1) | Including Personal Assets Tax of shareholders. |
j. | Other debts |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | ||||
Pesos | Pesos | Pesos | ||||
Current |
||||||
Advances to customers (Schedule G) |
8,718,400 | 4,432,500 | | |||
Accrual for Management fees |
1,059,305 | 1,537,173 | 529,129 | |||
Loan to FYO minority shareholders |
134,196 | 134,196 | 134,196 | |||
Cactus Argentina S.A. |
102,865 | | | |||
Cactus Feeders Inc. |
512,092 | 550,177 | 610,057 | |||
Others |
232,053 | 35,516 | 10,001 | |||
10,758,911 | 6,689,562 | 1,283,383 | ||||
Non-current |
||||||
Guarantee deposit |
1,000 | 1,000 | 1,000 | |||
Allowances |
38,327 | 38,327 | 38,327 | |||
39,327 | 39,327 | 39,327 | ||||
Cresud Sociedad Anonina
Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Notes to the Unaudited Consolidated Financial Statements (Continued)
NOTE 5:
a) | Assets based on their estimated collection or payment term (in pesos) |
Based on their estimated collection or payment term |
Current and non-current investment |
Trade accounts receivable |
Other receivables and prepaid expenses | ||||||||||||||||
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | |||||||||||
3rd quarter 2004/2003 financial |
| | 1,560,891 | | | 6,125,771 | | | 3,939,610 | ||||||||||
4th quarter 2004/2003 financial |
| | | | | | | | 1,618 | ||||||||||
1st quarter 2005/2004 financial |
| | | | 4,246,050 | | | 3,271,016 | 1,642 | ||||||||||
2nd quarter 2005/2004 financial |
| 1,388,504 | | | | | | 100,699 | 66,043 | ||||||||||
3rd quarter 2005/2004 financial |
| | | 6,451,657 | | | (40,648 | ) | 296,954 | 1,016,118 | |||||||||
4th quarter 2005/2004 financial |
1,499,204 | | | | | | 623,767 | 307,543 | | ||||||||||
1st quarter 2006/2005 financial |
| | | | | | 7,090 | | | ||||||||||
2nd quarter 2006/2005 financial |
| | | | | | 1,828,422 | | | ||||||||||
3rd quarter 2006/2005 financial |
| | | | | | 1,703 | | | ||||||||||
4th quarter 2006/2005 financial |
| | | | | | 99,148 | 17,154 | 781,368 | ||||||||||
1st quarter 2007/2006 financial |
| | | | | | | 4,765 | | ||||||||||
2nd quarter 2007/2006 financial |
| | | | | | | | | ||||||||||
3rd quarter 2007/2006 financial |
| | | | | | | | | ||||||||||
4th quarter 2007/2006 financial |
| | | | | | | | | ||||||||||
2nd quarter 2008/2007 financial |
134,928,347 | 132,941,891 | 146,333,542 | | | | | | | ||||||||||
Overdue |
| | | | | | | | | ||||||||||
With no stated current term |
859,267 | 486,493 | 911,207 | 32,128 | 1,108,808 | 143,620 | 4,994,575 | 11,043,141 | 3,848,730 | ||||||||||
With no stated non-current term |
20,717 | 20,717 | 20,717 | | | | 5,257,895 | 3,926,859 | 2,164,053 | ||||||||||
Total |
137,307,535 | 134,837,605 | 148,826,357 | 6,483,785 | 5,354,858 | 6,269,391 | 12,771,952 | 18,968,131 | 11,819,182 | ||||||||||
b) | Assets classified according to the interest rate that they accrued (in pesos) |
Interest rate that |
Current and non-current investment |
Trade accounts receivable |
Other receivables and prepaid expenses | |||||||||||||||
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | ||||||||||
At fixed interest rate |
134,928,347 | 132,941,891 | 146,333,542 | | | | 870,069 | 3,535,277 | 2,328,050 | |||||||||
At variable interest rate |
859,267 | 486,493 | 911,207 | | | | 1,912,383 | 2,307,257 | 571,094 | |||||||||
Non-interest bearing |
1,519,921 | 1,409,221 | 1,581,608 | 6,483,785 | 5,354,858 | 6,269,391 | 9,989,500 | 13,125,597 | 8,920,038 | |||||||||
Total |
137,307,535 | 134,837,605 | 148,826,357 | 6,483,785 | 5,354,858 | 6,269,391 | 12,771,952 | 18,968,131 | 11,819,182 | |||||||||
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Notes to the Unaudited Consolidated Financial Statements (Continued)
NOTE 5:
a) | Liabilities based on their estimated collection or payment term (in pesos) |
Based on their estimated collection or payment term |
Trade accounts payable |
Loans |
Salaries and social security payable |
Taxes payable |
Other debts | ||||||||||||||||||||||||||
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 | |||||||||||||||||
3rd qtr. 04/03 financial year |
| | 7,656,361 | | | 1,383,511 | | | 780,615 | | | 1,118,847 | | | 545,969 | ||||||||||||||||
4th qtr. 04/03 financial year |
| | | | | | | | | | | | | | 2,643 | ||||||||||||||||
1st qtr. 05/04 financial year |
| 11,750,406 | | | 6,757,677 | | | 1,406,519 | | | 342,491 | | | 1,552,956 | 2,643 | ||||||||||||||||
2nd qtr. 05/04 financial year |
| 3,471 | 967 | | 1,332,584 | | | 68,854 | | | 1,864,041 | 265,098 | | 11,498 | 2,643 | ||||||||||||||||
3rd qtr. 05/04 financial year |
11,207,197 | | | 22,353,572 | | | 531,148 | | | 227,040 | | | 1,948,431 | 7,666 | | ||||||||||||||||
4th qtr. 05/04 financial year |
| | | 1,386,025 | | | 23,670 | | | 1,594,461 | | | 5,663,591 | 4,585,412 | | ||||||||||||||||
1st qtr. 06/05 financial year |
| | | 14,866,783 | | | 340,674 | | | | | | | | | ||||||||||||||||
2nd qtr. 06/05 financial year |
| | | | | | | | | 2,672,551 | | | 1,747,984 | | | ||||||||||||||||
3rd qtr. 06/05 financial year |
| | | | | | | | | | | | | | | ||||||||||||||||
4th qtr. 06/05 financial year |
| | | | | | | | | | | | | | | ||||||||||||||||
1st qtr. 07/08 financial year |
| | | | | | | | | | | | | | | ||||||||||||||||
2nd qtr. 07/06 financial year |
| | | | | | | | | | | | | | | ||||||||||||||||
3rd qtr. 07/06 financial year |
| | | | | | | | | | | | | | | ||||||||||||||||
4th qtr. 07/06 financial year |
| | | | | | | | | | | | | | | ||||||||||||||||
2nd qtr. 08/07 financial year |
| | | 123,285,777 | 125,880,874 | 127,670,143 | | | | | | | | | | ||||||||||||||||
Overdue |
| | | | | | | | | | | 10,156 | | 37,448 | 32,617 | ||||||||||||||||
With no stated current term |
468,640 | (913,700 | ) | 21,455 | | | | | | | | | | 1,398,905 | 494,582 | 696,868 | |||||||||||||||
With no stated non-current term |
| | | | | | | | | 28,774,261 | 26,213,217 | 24,181,231 | 39,327 | 39,327 | 39,327 | ||||||||||||||||
Total |
11,675,837 | 10,840,177 | 7,678,783 | 161,892,157 | 133,971,135 | 129,053,654 | 895,492 | 1,475,373 | 780,615 | 33,268,313 | 28,419,749 | 25,575,332 | 10,798,238 | 6,728,889 | 1,322,710 | ||||||||||||||||
b) | Liabilities classified according to the interest rate that they accrued (in pesos) |
Interest rate that they accrued |
Trade accounts payable |
Loans |
Salaries and social security payable |
Taxes payable |
Other debts | ||||||||||||||||||||||||||
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 | |||||||||||||||||
At fixed interest rate |
| | | 161,962,593 | 132,638,551 | 127,670,143 | | | | | | | 1,904,861 | 2,349,579 | 148,706 | ||||||||||||||||
At variable interest rate |
| | | | | | | | | | | | 100,133 | ||||||||||||||||||
Non-interest bearing |
11,675,837 | 10,840,177 | 7,678,783 | (70,436 | ) | 1,332,584 | 1,383,511 | 895,492 | 1,475,373 | 780,615 | 33,268,313 | 28,419,749 | 25,575,332 | 8,793,244 | 4,379,310 | 1,174,004 | |||||||||||||||
Total |
11,675,837 | 10,840,177 | 7,678,783 | 161,892,157 | 133,971,135 | 129,053,654 | 895,492 | 1,475,373 | 780,615 | 33,268,313 | 28,419,749 | 25,575,332 | 10,798,238 | 6,728,889 | 1,322,710 | ||||||||||||||||
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Notes to the Unaudited Consolidated Financial Statements (Continued)
NOTE 6: | EARNINGS PER SHARE |
Following is a conciliation between the average appraised ordinary stock in circulation and the average appraised diluted ordinary stock. The last one has been determined considering the possibility that the bearers of convertible bonds into companys ordinary stock for up to an amount of US$ 50,000,000 mentioned in Note 14 of the basic financial statements, exercise their right to convert into stock the tittles they bear.
December 31, 2004 |
December 31, 2003 |
|||||
Average appraised stock in circulation |
151,044,430 | 126,260,350 | ||||
Average appraised diluted ordinary stock |
321,214,392 | 321,214,392 | ||||
December 31, 2004 |
December 31, 2003 |
|||||
Earnings for the calculation of basic earnings per share |
9,533,737 | 4,762,156 | ||||
Exchange differences |
895,000 | 6,351,172 | ||||
Financing expenses |
5,401,152 | 6,385,641 | ||||
Income tax |
(2,055,220 | ) | (4,157,613 | ) | ||
Management fees |
(424,093 | ) | (857,920 | ) | ||
Earnings for the calculation of diluted earnings per share |
13,350,576 | 12,483,436 | ||||
BASIC Earnings per share |
December 31, 2004 |
December 31, 2003 |
||||
Earnings |
9,533,737 | 4,762,156 | ||||
Number of shares |
151,044,430 | 126,260,350 | ||||
Earnings per share |
0.06 | 0.04 | ||||
DILUTED Earnings per share |
December 31, 2004 |
December 31, 2003 |
||||
Earnings |
13,350,576 | 12,483,436 | ||||
Number of shares |
321,214,392 | 321,214,392 | ||||
Earnings per share |
0.04 | 0.04 |
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Notes to the Unaudited Consolidated Financial Statements (Continued)
NOTE 7: | SEGMENT INFORMATION |
As of December 31, 2004:
Description |
Crops |
Beed Cattle |
Milk |
Feed Lot |
Others |
Without especific allocation |
Total | |||||||
Sales |
11,236,161 | 18,690,480 | 1,567,574 | 1,390,251 | 2,358,210 | | 35,242,676 | |||||||
Assets |
90,698,881 | 124,725,397 | 10,625,415 | 4,299,093 | 885,413 | 467,391,211 | 698,625,410 | |||||||
Liabilities |
6,225,253 | 1,635,917 | 132,597 | 1,106,071 | 324,540 | 209,105,659 | 218,530,037 | |||||||
Fixed asset additions |
1,005,637 | 675,197 | 1,084,530 | 104,821 | 28,354 | 2,021,141 | 4,919,680 | |||||||
Depreciation of fixed assets |
696,971 | 495,815 | 94,141 | 149,890 | 34,469 | 294,449 | 1,765,735 | |||||||
Income from related companies |
387,458 | 12,777 | 55,212 | | 254,052 | 13,378,025 | 14,087,524 |
As of December 31, 2003:
Description |
Crops |
Beed Cattle |
Milk |
Feed Lot |
Others |
Without especific allocation |
Total | ||||||||
Sales |
8,793,868 | 12,165,707 | 1,831,837 | 4,398,817 | 2,208,215 | | 29,398,444 | ||||||||
Assets |
93,874,367 | 133,351,330 | 10,086,765 | 5,580,174 | 1,259,864 | 351,099,546 | 595,252,046 | ||||||||
Liabilities |
4,063,420 | 1,573,546 | 9,024 | 2,001,098 | 973,166 | 155,790,840 | 164,411,094 | ||||||||
Fixed asset additions |
2,291,544 | 453,614 | 66,356 | 175,677 | 63,103 | 167,305 | 3,217,599 | ||||||||
Depreciation of fixed assets |
728,932 | 582,124 | 48,862 | 113,826 | 25,699 | 91,515 | 1,590,958 | ||||||||
Amortization of intangible assets |
| | | | 246,425 | | 246,425 | ||||||||
Income from related companies |
514,687 | 23,415 | 70,977 | | (329,840 | ) | 1,823,386 | 2,102,625 |
NOTE 8: | SALE OF FARMS |
On July 29, 2003, Inversiones Ganaderas S.A. sold to Las Rejas S.A. three properties owned by it located in the district of Santo Domingo, department of La Paz, Province of Catamarca, with a total area of 5,997 hectares, for an amount of US$ 430,000, fully paid as of the date of execution of the deed. This sale generated a gain of Ps. 583,406 (Pesos Five hundred eighty three thousand four hundred and six).
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Unaudited Consolidated Fixed Assets
Corresponding to the period beginning as from July 1, 2004 and ended on December 31, 2004
comparative with the year ended on June 30, 2004 and with the period ended on December 31, 2003
(Notes 1, 2, and 3)
Schedule A
Principal Account |
Value at the beginning of the year |
Additions and/or |
Deductions and/or |
Value at period/year |
Depreciation |
Net carrying |
Net carrying 2004 |
Net carrying value at 2003 | ||||||||||||||||
Rate% |
Accumulated at the beginning of the year |
Decrease of the period/ year |
Current period/ year |
Accumulated at the end of period/year |
||||||||||||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | ||||||||||||||
Real estate |
124,620,756 | 352,353 | | 124,973,109 | | | | | | 124,973,109 | 124,620,756 | 121,966,864 | ||||||||||||
Wire fences |
5,253,545 | | | 5,253,545 | 3 | 1,228,003 | | 86,213 | 1,314,216 | 3,939,329 | 4,025,542 | 4,111,781 | ||||||||||||
Watering troughs |
3,712,614 | 999 | | 3,713,613 | 5 | 1,032,887 | | 90,391 | 1,123,278 | 2,590,335 | 2,679,727 | 2,735,601 | ||||||||||||
Alfalfa fields and meadows |
2,169,597 | 316,797 | | 2,486,394 | 12-25-50 | 1,443,928 | | 225,494 | 1,669,422 | 816,972 | 725,669 | 907,638 | ||||||||||||
Buildings and constructions |
5,676,309 | 118,986 | | 5,795,295 | 2 | 1,980,142 | | 50,466 | 2,030,608 | 3,764,687 | 3,696,167 | 3,644,152 | ||||||||||||
Machinery |
8,432,336 | 9,335 | 34,177 | 8,407,494 | 10 | 5,722,682 | 29,397 | 392,031 | 6,085,316 | 2,322,178 | 2,709,654 | 3,113,984 | ||||||||||||
Vehicles |
1,345,118 | 249,588 | 105,098 | 1,489,608 | 20 | 695,065 | 62,006 | 129,803 | 762,862 | 726,746 | 650,053 | 417,933 | ||||||||||||
Tools |
193,361 | 1,450 | | 194,811 | 10 | 130,040 | | 7,350 | 137,390 | 57,421 | 63,321 | 66,181 | ||||||||||||
Furniture and equipment |
1,048,119 | 41,473 | | 1,089,592 | 10 | 669,664 | | 54,305 | 723,969 | 365,623 | 378,455 | 357,270 | ||||||||||||
Corral and leading lanes |
652,931 | 3,667 | | 656,598 | 3 | 131,165 | | 10,833 | 141,998 | 514,600 | 521,766 | 519,547 | ||||||||||||
Roads |
1,191,255 | 2,146 | | 1,193,401 | 10 | 668,531 | | 59,692 | 728,223 | 465,178 | 522,724 | 585,164 | ||||||||||||
Facilities |
7,485,195 | 19,163 | 32,946 | 7,471,412 | 10-20-33 | 3,589,058 | | 390,334 | 3,979,392 | 3,492,020 | 3,896,137 | 2,878,137 | ||||||||||||
Computer equipment |
1,393,473 | 210,751 | 296 | 1,603,928 | 20 | 1,110,169 | 296 | 92,708 | 1,202,581 | 401,347 | 283,304 | 278,213 | ||||||||||||
Silo plants |
1,169,114 | | | 1,169,114 | 5 | 315,645 | | 31,537 | 347,182 | 821,932 | 853,469 | 882,114 | ||||||||||||
Feed Lot |
3,815,528 | 104,821 | | 3,920,349 | | 1,176,189 | | 144,578 | 1,320,767 | 2,599,582 | 2,639,339 | 2,480,935 | ||||||||||||
Constructions in progress |
11,585,564 | 3,487,918 | | 15,073,482 | | | | | | 15,073,482 | 11,585,564 | 4,876,039 | ||||||||||||
Advances to suppliers |
174,826 | 504,081 | 144,683 | 534,224 | | | | | | 534,224 | 174,826 | 17,831 | ||||||||||||
Total at December 31, 2004 |
179,919,641 | 5,423,528 | 317,200 | 185,025,969 | 19,893,168 | 91,699 | 1,765,735 | 21,567,204 | 163,458,765 | |||||||||||||||
Total at June 30, 2004 |
170,555,220 | 15,571,176 | 6,206,755 | 179,919,641 | 19,622,754 | 3,297,090 | 3,567,504 | 19,893,168 | 160,026,473 | |||||||||||||||
Total at December 31, 2003 |
170,555,220 | 3,254,827 | 4,851,337 | 168,958,710 | 19,622,754 | 2,094,386 | 1,590,958 | 19,119,326 | 149,839,384 | |||||||||||||||
19
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Unaudited Consolidated Intangible Assets
Corresponding to the period beginning as from July 1, 2004 and ended on December 31, 2004
comparative with the year ended on June 30, 2004 and with the period ended on December 31, 2003
(Notes 1, 2, and 3)
Schedule B
Principal Account |
Value at the beginning of the year and end of the period |
Amortization |
Net carrying value at December 31, 2004 |
Net carrying value at June 30, 2004 |
Net carrying | |||||||||||
Accumulated at the beginning of the year |
Current year |
Accumulated at the end of the period/ year |
||||||||||||||
Rate % |
Amount |
|||||||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | ||||||||||
Development expenditures |
1,410,368 | 1,410,368 | 33.33 | | 1,410,368 | | | 117,532 | ||||||||
Organization expenses |
448,818 | 448 818 | | 448 818 | | | | |||||||||
Brands and patents |
18,938 | 18,938 | | 18,938 | | | 5,680 | |||||||||
Total at December 31, 2004 |
1,878,124 | 1,878,124 | | 1,878,124 | | |||||||||||
Total at June 30, 2004 |
1,878,124 | 1,508,487 | 369,637 | 1,878,124 | | |||||||||||
Total at December 31, 2003 |
1,878,124 | 1,508,487 | 246,425 | 1,754,912 | 123,212 | |||||||||||
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Unaudited Consolidated Investments
Corresponding to the period beginning as from July 1, 2004
and ended on December 31, 2004
comparative with the year ended on June 30, 2004 and with the period ended on December 31, 2003
(Notes 1, 2, and 3)
Schedule C
INFORMATION ON THE ISSUER | |||||||||||||||||||||
Latest financial statements | |||||||||||||||||||||
Type and characteristics of the securities |
Amount |
Value at 31, 2004 |
Value at June 30, 2004 |
Value at 31, 2003 |
Market value |
Principal activity |
Capital |
Income for the period |
Shareholders Equity | ||||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | |||||||||||||||
Current Investments |
|||||||||||||||||||||
Mutual Funds |
|||||||||||||||||||||
Fondo especial Banco Rio in pesos |
369,108 | 83,626 | 57,122 | | 0.223842 | ||||||||||||||||
Fondo plazo fijo Banco Rio in dollars |
1,862 | 2,523 | 4,081 | 3,999 | 2.295653 | ||||||||||||||||
86,149 | 61,203 | 3,999 | |||||||||||||||||||
Notes and Convertible Bonds |
|||||||||||||||||||||
Interest of Convertible Bonds 2007- IRSA (US$) |
|||||||||||||||||||||
Subsidiaries, related companies Law N° 19,550 Section 33 and related parties |
|||||||||||||||||||||
IRSA Inversionesy Representaciones SA |
1,499,204 | 1,388,504 | 1,560,891 | ||||||||||||||||||
Bonos Global 2010 |
110,000 | 112,343 | 97,096 | 90,288 | 1.021300 | ||||||||||||||||
Bocon Pro 1 |
157,647 | 630 | 630 | 630 | 0.003996 | ||||||||||||||||
1,612,177 | 1,486,230 | 1,651,809 | |||||||||||||||||||
Deposits in local banks in pesos |
| | 816,290 | ||||||||||||||||||
| | 816,290 | |||||||||||||||||||
Deposits in foreign banks in dollars |
660,145 | 327,564 | | ||||||||||||||||||
660,145 | 327,564 | | |||||||||||||||||||
Total current investments |
2,358,471 | 1,874,997 | 2,472,098 | ||||||||||||||||||
Non-current investments |
|||||||||||||||||||||
Related companies Law N° 19,550 Section 33 AGRO-URANGA S. A. |
unlisted | Agricultural and livestock |
2,500,000 | 1,551,749 | 13,035,586 | ||||||||||||||||
Shares |
893,069 | 4,523,238 | 5,230,031 | 4,313,051 | |||||||||||||||||
Contribution on account of future subscriptions of shares |
7,865 | 7,865 | 7,865 | ||||||||||||||||||
Higher value of property |
11,179,150 | 11,179,150 | 11,179,150 | ||||||||||||||||||
15,710,253 | 16,417,046 | 15,500,066 | |||||||||||||||||||
IRSA Inversiones y Representaciones S.A. |
|||||||||||||||||||||
Shares |
69,242,276 | 275,510,169 | 244,002,522 | 190,567,676 | listed | Real state | 261,520,248 | 56,756,060 | 1,040,570,752 | ||||||||||||
275,510,169 | 244,002,522 | 190,567,676 | |||||||||||||||||||
Subtotal | 291,220,422 | 260,419,568 | 206,067,742 | ||||||||||||||||||
Other Investments |
|||||||||||||||||||||
Convertible Bonds 2007 - IRSA (US$) |
|||||||||||||||||||||
Subsidiaries, related companies Law N° 19,550 Section 33 and related parties. |
|||||||||||||||||||||
IRSA Inversiones y Representaciones S.A. |
45,293,168 | 134,928,347 | 132,941,891 | 146,333,542 | |||||||||||||||||
Coprolan |
20,717 | 20,717 | 20,717 | unlisted | |||||||||||||||||
Subtotal | 134,949,064 | 132,962,608 | 146,354,259 | ||||||||||||||||||
Goodwill |
|||||||||||||||||||||
Goodwill |
329,838 | 659,676 | 989,514 | ||||||||||||||||||
IRSA negative goodwill |
(36,656,319 | ) | (26,529,022 | ) | (20,921,124 | ) | |||||||||||||||
Subtotal | (36,326,481 | ) | (25,869,346 | ) | (19,931,610 | ) | |||||||||||||||
Total non-current investments |
389,843,005 | 367,512,830 | 332,490,391 | ||||||||||||||||||
Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Unaudited Consolidated Allowances
Corresponding to the period beginning as from July 1, 2004 and ended on December 31, 2004
comparative with the year ended on June 30, 2004 and with the period ended on December 31, 2003
(Notes 1, 2, and 3 )
Schedule E
Item |
Opening balances |
Deductions |
Value at December 31, 2004 |
Value at 30, 2004 |
Value at December 31, 2003 | ||||||
Pesos | Pesos | Pesos | Pesos | Pesos | |||||||
Deducted from asset |
|||||||||||
Defaulting debtors |
412,067 | (38,532 | ) | 373,535 | 412,067 | 449,197 | |||||
Included in liabilities |
|||||||||||
Allowances |
|||||||||||
For pending lawsuits (1) |
38,327 | | 38,327 | 38,327 | 38,327 | ||||||
Total at December 31, 2004 |
450,394 | (38,532 | ) | 411,862 | |||||||
Total at June 30, 2004 |
517,452 | (67,058 | ) | 450,394 | |||||||
Total at December 31, 2003 |
517,452 | (29,928 | ) | 487,524 | |||||||
(1) | Included in Non-Current Other debts |
Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Unaudited Consolidated Cost of sales
Corresponding to the periods beginning as from July 1, 2004 and 2003
and ended on December 31, 2004 and 2003
(Notes 1, 2, and 3)
Schedule F
Crops |
Beef cattle |
Milk |
Others |
Others |
Total |
|||||||||||||||||||||||||||||||||||||
December 31, 2004 |
December 31, 2003 |
December 31, 2004 |
December 31, 2003 |
December 31, 2004 |
December 31, 2003 |
December 31, 2004 |
December 31, 2003 |
December 31, 2004 |
December 31, 2003 |
December 31, 2004 |
December 31, 2003 |
|||||||||||||||||||||||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | |||||||||||||||||||||||||||||||
Inventories at the beginning of the year |
||||||||||||||||||||||||||||||||||||||||||
Beef cattle |
| | 59,418,980 | 48,848,045 | 4,150,630 | 2,294,684 | | | | | 63,569,610 | 51,142,729 | ||||||||||||||||||||||||||||||
Crops |
8,639,910 | 6,301,776 | | | | | | | | | 8,639,910 | 6,301,776 | ||||||||||||||||||||||||||||||
Unharvested crops |
1,603,897 | 1,112,230 | | | | | | | | | 1,603,897 | 1,112,230 | ||||||||||||||||||||||||||||||
Seeds and fodder |
| | 134,870 | 112,516 | 103,508 | 58,969 | | | 3,138 | 241,516 | 171,485 | |||||||||||||||||||||||||||||||
Materials |
3,842,219 | 1,222,255 | | | 44,982 | 33,362 | 601,626 | 145,137 | 197,822 | 246,069 | 4,686,649 | 1,646,823 | ||||||||||||||||||||||||||||||
14,086,026 | 8,636,261 | 59,553,850 | 48,960,561 | 4,299,120 | 2,387,015 | 601,626 | 145,137 | 200,960 | 246,069 | 78,741,582 | 60,375,043 | |||||||||||||||||||||||||||||||
Holding results |
| | 5,995,616 | 1,115,586 | 259,170 | 229,450 | | | | | 6,254,786 | 1,345,036 | ||||||||||||||||||||||||||||||
Commodities market results |
2,088,522 | 753,010 | | | | | 57,784 | | | | 2,146,306 | 753,010 | ||||||||||||||||||||||||||||||
Transfer of Inventories to expenses |
(149,403 | ) | (164,529 | ) | (35 | ) | 33,580 | | | | (64,832 | ) | (23,501 | ) | | (172,939 | ) | (195,781 | ) | |||||||||||||||||||||||
Transfer of Inventories to fixed assets |
(464,153 | ) | (35,860 | ) | | | | | | | (39,695 | ) | (1,367 | ) | (503,848 | ) | (37,227 | ) | ||||||||||||||||||||||||
Transfer of Unharvested crops to expenses |
(6,646,273 | ) | (2,783,694 | ) | (136,871 | ) | (149,777 | ) | (376,780 | ) | (204,552 | ) | | | (262,674 | ) | (283,890 | ) | (7,422,598 | ) | (3,421,913 | ) | ||||||||||||||||||||
Recovery of Inventories |
| | 101,950 | 139,734 | (101,950 | ) | (139,734 | ) | | | | | | | ||||||||||||||||||||||||||||
Purchases |
25,562,280 | 11,876,012 | 3,118,043 | 4,153,319 | 398,128 | 563,961 | 537,075 | 3,942,326 | 416,257 | 277,057 | 30,031,783 | 20,812,675 | ||||||||||||||||||||||||||||||
Operating expenses (Schedule H) |
4,562,016 | 3,397,918 | 9,535,065 | 6,660,866 | 976,650 | 933,330 | 389,831 | 331,666 | 562,856 | 651,479 | 16,026,418 | 11,975,259 | ||||||||||||||||||||||||||||||
Less: |
||||||||||||||||||||||||||||||||||||||||||
Inventories at the end of the period |
||||||||||||||||||||||||||||||||||||||||||
Beef cattle |
| | (63,387,666 | ) | (51,726,196 | ) | (4,439,780 | ) | (3,253,871 | ) | | | | | (67,827,446 | ) | (54,980,067 | ) | ||||||||||||||||||||||||
Crops |
(4,803,409 | ) | (3,782,649 | ) | | | | | | | | | (4,803,409 | ) | (3,782,649 | ) | ||||||||||||||||||||||||||
Unharvested crops |
(20,090,681 | ) | (9,374,173 | ) | | | | | | | | | (20,090,681 | ) | (9,374,173 | ) | ||||||||||||||||||||||||||
Seeds and fodder |
| | (88,843 | ) | (62,725 | ) | (78,055 | ) | (76,619 | ) | | | (3,159 | ) | | (170,057 | ) | (139,344 | ) | |||||||||||||||||||||||
Materials |
(2,753,105 | ) | (1,378,359 | ) | | | (59,538 | ) | (42,704 | ) | (327,334 | ) | (503,251 | ) | (270,646 | ) | (217,351 | ) | (3,410,623 | ) | (96,302,216 | ) | (2,141,665 | ) | (70,417,898 | ) | ||||||||||||||||
Cost of Sales |
11,391,820 | 7,143,937 | 14,691,109 | 9,124,948 | 876,965 | 396,276 | 1,258,982 | 3,851,046 | 580,398 | 671,997 | 20,799,274 | 21,188,204 | ||||||||||||||||||||||||||||||
Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Unaudited Consolidated Foreign currency assets and liabilities
Corresponding to the period beginning as from July 1, 2004
and ended on December 31, 2004
comparative with the year ended on June 30, 2004 and with the period ended on December 31, 2003
(Notes 1, 2, and 3)
Schedule G
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | |||||||||||||||
Item |
Type and amount of foreign currency |
Current exchange rate |
Amount in |
Type and amount currency |
Amount in local currency |
Type and amount of foreign | |||||||||||
Pesos | Pesos | Pesos | currency | Pesos | |||||||||||||
Current Assets |
|||||||||||||||||
Cash and banks |
|||||||||||||||||
Cash and banks |
US$ | 8,833,186 | 2.94 | 25,960,735 | US$ | 2,475,600 | 7,223,801 | US$ | 6,611,319 | 19,040,598 | |||||||
Investments: |
|||||||||||||||||
Mutual funds |
US$ | 858 | 2.94 | 2,523 | US$ | 1,399 | 4,081 | US$ | 1,389 | 3,999 | |||||||
Interest of Convertible Bonds 2007-IRSA |
|||||||||||||||||
Subsidiaries, related companies Law N° 19,550 Section 33 and related parties: |
|||||||||||||||||
IRSA Inversiones y Representaciones Sociedad Anónima |
US$ | 503,257 | 2.98 | 1,499,204 | US$ | 469,406 | 1,388,504 | US$ | 541,976 | 1,560,891 | |||||||
Deposits in local banks |
US$ | | 2.94 | | US$ | 112,256 | 327,564 | US$ | 175,210 | 504,605 | |||||||
Deposits in foreign banks |
US$ | 224,616 | 2.94 | 660,145 | US$ | | | US$ | | | |||||||
Trade accounts receivable |
|||||||||||||||||
Accounts receivable |
US$ | 325,346 | 2.94 | 956,193 | US$ | 1,365 | 3,983 | US$ | 27,153 | 78,202 | |||||||
Other receivables and prepaid expenses: |
|||||||||||||||||
Secured by mortgages |
US$ | 359,202 | 2.94 | 1,055,695 | US$ | 354,351 | 1,033,997 | US$ | 368,726 | 1,061,931 | |||||||
Guarantee deposits |
US$ | 107,327 | 2.94 | 315,433 | US$ | 750,171 | 2,188,998 | US$ | 502,324 | 1,446,694 | |||||||
Non Current Assets |
|||||||||||||||||
Other receivables and prepaid expenses: |
|||||||||||||||||
Secured by mortgages |
US$ | | | US$ | | | US$ | 350,000 | 1,008,000 | ||||||||
Investments: |
|||||||||||||||||
Convertible Bonds 2007-IRSA |
|||||||||||||||||
Subsidiaries related companies Law N° 19,550 Section 33 and related parties: |
|||||||||||||||||
IRSA Inversiones y Representaciones Sociedad Anónima |
US$ | 45,293,168 | 2.98 | 134,928,347 | US$ | 44,943,168 | 132,941,891 | US$ | 49,943,188 | 146,333,542 | |||||||
Total Assets |
US$ | 55,646,960 | 165,378,275 | US$ | 49,107,716 | 145,112,819 | US$ | 58,521,285 | 171,038,462 | ||||||||
Current liabilities |
|||||||||||||||||
Trade account payable: |
|||||||||||||||||
Suppliers |
US$ | 953,321 | 2.98 | 2,839,943 | US$ | 383,048 | 1,133,055 | US$ | 339,120 | 993,622 | |||||||
Accrual for other expenses |
US$ | 870,929 | 2.98 | 2,129,666 | US$ | 499,662 | 1,477,683 | US$ | 155,191 | 454,710 | |||||||
Loans: |
|||||||||||||||||
Local financial loans |
US$ | 4,068,000 | 2.98 | 12,118,572 | US$ | | | US$ | | | |||||||
Interest of Convertible Bonds 2007 |
US$ | 199,036 | 2.98 | 592,928 | US$ | 199,202 | 589,239 | US$ | 209,153 | 612,819 | |||||||
Subsidiaries, related companies Law N° 19,550 Section 33 and related parties: |
|||||||||||||||||
Shareholders |
US$ | 266,145 | 2.98 | 792,845 | US$ | 250,176 | 740,021 | US$ | 261,887 | 767,329 | |||||||
Directors |
US$ | 85 | 2.98 | 252 | US$ | 1,124 | 3,324 | US$ | 1,148 | 3,363 | |||||||
Other debts |
|||||||||||||||||
Advances to customers |
US$ | 1,411,516 | 2.98 | 4,204,906 | US$ | 1,500,000 | 4,432,500 | US$ | | | |||||||
Subsidiaries, related companies Law N° 19,550 Section 33 and related parties: |
|||||||||||||||||
Cactus Argentina S.A. |
US$ | 70,000 | 2.94 | 205,730 | US$ | | | US$ | | | |||||||
Cactus Feeders Inc. |
US$ | 13,961 | 2.98 | 41,590 | US$ | 13,263 | 39,231 | US$ | 9,076 | 35,670 | |||||||
Non-current liabilities |
|||||||||||||||||
Loans: |
|||||||||||||||||
Convertible Bonds 2007 |
US$ |
17,913,238 |
2.98 | 53,363,537 | US$ | 19,072,528 | 56,416,538 | US$ | 19,608,130 | 57,451,821 | |||||||
Subsidiaries, related companies Law N° 19,550 Section 33 and related parties: |
|||||||||||||||||
Shareholders |
US$ | 23,953,025 | 2.98 | 71,356,061 | US$ | 23,953,025 | 70,853,048 | US$ | 24,551,900 | 71,937,067 | |||||||
Directo rs |
US$ | 7,600 | 2.98 | 22,640 | US$ | 107,600 | 318,281 | US$ | 107,600 | 315,268 | |||||||
Total Liabilities |
US$ |
49,726,856 |
147,668,670 | US$ | 45,979,628 | 136,002,920 | US$ | 45,243,205 | 132,571,669 | ||||||||
US$: US dollars
Cresud Sociedud Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria and Subsidiaries
Unaudited Consolidated Information submitted in compliance with Section 64, subsection B of Law N° 19,550
Corresponding to the periods beginning as from July 1, 2004 and 2003
and ended on December 31, 2004 and 2003
(Notes 1, 2, and 3)
Schedule H
Items |
Total December 31, 2004 |
Operating Expenses |
Expenses |
Total December 31, 2003 | ||||||||||||||||
Total |
Crops |
Beef cattle |
Milk |
Feed Lot |
Others |
Selling |
Administrative |
|||||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | |||||||||||
Directors fees |
46,408 | | | | | | | | 46,408 | 3,730 | ||||||||||
Fees and payments for services |
608,422 | 132,330 | 5,726 | 84,599 | 6,875 | | 35,130 | | 476,092 | 759,431 | ||||||||||
Salaries and wages |
3,183,508 | 1,569,861 | 249,754 | 830,780 | 146,061 | | 343,266 | 39,431 | 1,574,216 | 3,612,925 | ||||||||||
Social security contributions |
494,327 | 202,965 | 81,521 | 108,932 | 12,512 | | | | 291,362 | 438,033 | ||||||||||
Taxes, rates and contributions |
217,611 | 191,547 | 54,344 | 114,950 | 15,370 | | 6,883 | | 26,064 | 221,269 | ||||||||||
Gross sales taxes |
286,533 | | | | | | | 286,533 | | 288,287 | ||||||||||
Office and administrative expenses |
352,376 | 73,903 | | 1,824 | | | 72,079 | 1,320 | 277,153 | 165,577 | ||||||||||
Bank commissions and expenses |
15,466 | 15,466 | 1,891 | 4,466 | 182 | | 8,927 | | | 22,107 | ||||||||||
Depreciation of fixed assets |
1,765,735 | 1,613,438 | 759,378 | 574,844 | 100,400 | 137,349 | 41,467 | | 152,297 | 1,590,958 | ||||||||||
Vehicle and travelling expenses |
331,332 | 175,735 | 58,029 | 88,155 | 6,901 | | 22,650 | 8,026 | 147,571 | 259,172 | ||||||||||
Spare parts and repairs |
617,545 | 614,368 | 311,710 | 265,241 | 36,717 | | 700 | | 3,177 | 521,117 | ||||||||||
Insurance |
123,954 | 33,496 | 13,667 | 14,317 | 1,372 | | 4,140 | | 90,458 | 161,729 | ||||||||||
Employees benefits |
183,077 | 134,766 | 21,643 | 101,090 | 4,468 | | 7,565 | 144 | 48,167 | 80,941 | ||||||||||
Amortization of intangible assets |
| | | | | | | | | 246,425 | ||||||||||
Livestock expenses |
7,866,754 | 7,260,478 | | 7,260,478 | | | | 606,276 | | 5,005,637 | ||||||||||
Dairy farm expenses |
643,214 | 636,126 | | | 636,126 | | | 7,088 | | 584,715 | ||||||||||
Agricultural expenses |
4,465,418 | 2,929,287 | 2,929,287 | | | | | 1,536,131 | | 3,040,597 | ||||||||||
Feed lot expenses |
252,482 | 252,482 | | | | 252,482 | | | | 223,531 | ||||||||||
Silo expenses |
41,963 | 41,963 | 41,963 | | | | | | | 123,395 | ||||||||||
Coal expenses |
| | | | | | | | | 8,060 | ||||||||||
Firewood expenses |
| | | | | | | | | 338 | ||||||||||
FyO expenses |
25,984 | 4,500 | | | | | 4,500 | 21,484 | | 76,680 | ||||||||||
General expenses |
144,081 | 143,707 | 33,103 | 85,389 | 9,666 | | 15,549 | 374 | | 278,688 | ||||||||||
Total at December 31, 2004 |
21,666,190 | 16,026,418 | 4,562,016 | 9,535,065 | 976,650 | 389,831 | 562,856 | 2,506,807 | 3,132,965 | | ||||||||||
Total at December 31, 2003 |
11,975,259 | 3,397,918 | 6,660,866 | 933,330 | 331,666 | 651,479 | 2,192,027 | 3,546,056 | 17,713,342 | |||||||||||
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Balance Sheet as at December 31, 2004, June 30, 2004 and December 31, 2003
December 31, 2004 (Notes 1 and 2) |
June 30,2004 (Notes 1 and 2) |
December 31, 2003 (Notes 1 and 2) |
December 31,2004 (Notes 1 and 2) |
June 30, 2004 (Notes 1 and |
December 31, 2003 (Notes 1 and 2) | ||||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | ||||||||||||
ASSETS |
LIABILITIES |
||||||||||||||||
Current Assets |
Current Liabilities |
||||||||||||||||
Cash and banks (Note 8.a.) |
26,578,404 | 12,522,961 | 19,903,682 | Debts: |
|||||||||||||
Investments (Note 8.b.) |
1,639,729 | 1,490,311 | 1,655,808 | Trade accounts payable (Note 8.f.) |
11,649,093 | 11,051,036 | 5,995,956 | ||||||||||
Trade accounts receivable (Note 8.c.) |
6,298,620 | 3,577,620 | 3,941,177 | Loans (Note 8.g.) |
38,606,380 | 8,090,261 | 1,383,511 | ||||||||||
Other receivables and prepaid expenses (Note 8.d.) |
7,845,706 | 15,915,028 | 8,542,617 | Salaries and social security payable (Note 8.h.) |
765,705 | 1,359,719 | 689,109 | ||||||||||
Inventories (Note 8.e.) |
45,284,709 | 34,330,261 | 31,429,530 | Taxes payable (Note 8.i.) |
4,372,111 | 1,722,271 | 959,654 | ||||||||||
Total Current Assets |
87,647,168 | 67,836,181 | 65,472,814 | Other debts (Note 8.j.) |
11,857,335 | 8,170,624 | 2,913,384 | ||||||||||
Total Debts |
67,250,624 | 30,393,911 | 11,941,614 | ||||||||||||||
Non-Current Assets |
Total Current Liabilities |
67,250,624 | 30,393,911 | 11,941,614 | |||||||||||||
Other receivables and prepaid expenses (Note 8.d. ) |
5,279,475 | 4,138,826 | 3,918,883 | ||||||||||||||
Inventories (Note 8.e.) |
46,102,732 | 40,982,536 | 35,852,040 | Non-Current Liabilities |
|||||||||||||
Investments (Note 8.b.) |
305,920,570 | 274,977,554 | 220,366,049 | Loans (Note 8.g.) |
123,285,777 | 125,880,874 | 127,670,143 | ||||||||||
Other investments (Note 8.b. ) |
134,949,064 | 132,962,608 | 146,354,259 | Taxes payable (Note 8.i.) |
27,491,943 | 25,132,570 | 23,111,814 | ||||||||||
Fixed assets, net (Schedule A) |
155,026,463 | 151,547,192 | 141,427,910 | Other debts (Note 8.j.) |
480,640 | | | ||||||||||
Subtotal Non-Current Assets |
647,278,304 | 604,608,716 | 547,919,141 | Total Non-Current Liabilities |
151,258,360 | 151,013,444 | 151,781,957 | ||||||||||
Goodwill (Note 8.b.) |
(36,326,481 | ) | (25,869,346 | ) | (19,931,610 | ) | Total liabilities |
218,508,984 | 181,407,355 | 162,723,571 | |||||||
Total Non-Current Assets |
610,951,823 | 578,739,370 | 527,987,531 | SHAREHOLDERS EQUITY (as per corresponding statement) |
480,090,007 | 465,168,196 | 430,736,774 | ||||||||||
Total Assets |
698,598,991 | 646,575,551 | 593,460,345 | Total Liabilities and Shareholders Equity |
698,598,991 | 646,575,551 | 593,460,345 | ||||||||||
The accompanying notes and schedules are an integral part of these financial statements.
Saúl Zang First Vice-Chairman serving as Acting Chairman |
26
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Statement of Income
Corresponding to the periods beginning as from July 1, 2004 and 2003
and ended on December 31, 2004 and 2003
December 31, 2004 (Notes 1 and 2) |
December 31, 2003 (Notes 1 and 2) |
|||||
Pesos | Pesos | |||||
Sales |
||||||
Crops |
11,236,161 | 8,793,868 | ||||
Beef cattle |
18,129,885 | 11,071,481 | ||||
Milk |
1,567,574 | 1,831,837 | ||||
Other |
1,923,693 | 1,822,775 | ||||
Total Sales |
32,857,313 | 23,519,961 | ||||
Cost of sales (Schedule F) |
||||||
Crops |
(11,391,820 | ) | (7,143,937 | ) | ||
Beef cattle |
(14,531,019 | ) | (8,386,427 | ) | ||
Milk |
(876,965 | ) | (396,276 | ) | ||
Other |
(8,554 | ) | (1,418 | ) | ||
Total cost of sale |
(26,808,358 | ) | (15,928,058 | ) | ||
Gross income |
6,048,955 | 7,591,903 | ||||
Selling expenses (Schedule H) |
(2,408,431 | ) | (2,102,952 | ) | ||
Administrative expenses (Schedule H) |
(2,822,516 | ) | (3,236,153 | ) | ||
Net gain on sale of farms |
| 1,085,345 | ||||
Gain from inventory holdings (Schedule F) |
5,744,136 | 1,240,082 | ||||
Operating income |
6,562,144 | 4,578,225 | ||||
Financial results |
||||||
Generated by assets: |
||||||
Exchange differences and discounts |
38,496 | 8,182,662 | ||||
Interest income |
223,891 | 94,913 | ||||
Bad debts (Schedule E) |
| 29,928 | ||||
Reference stabilization index (CER) |
| (302,136 | ) | |||
Tax on debts and credits |
(585,499 | ) | (443,589 | ) | ||
Convertible Bonds purchase interest |
5,473,411 | 5,846,354 | ||||
Others |
82,666 | 6,625 | ||||
5,232,965 | 13,414,757 | |||||
Generated by liabilities: |
||||||
Financial expenses |
||||||
Convertible Bonds issued interest |
(5,160,478 | ) | (5,625,121 | ) | ||
Others |
(1,152,651 | ) | (817,230 | ) | ||
Exchange differences and discounts |
(947,991 | ) | (6,305,896 | ) | ||
(7,261,120 | ) | (12,748,247 | ) | |||
Other income and expenses: |
||||||
Gains from others fixed assets sales |
20,061 | 251,561 | ||||
Others |
(3,315,633 | ) | 1,656 | |||
(3,295,572 | ) | 253,217 | ||||
Gain from controlled and related companies |
14,229,684 | 2,483,250 | ||||
Management fees (Note 5) |
(1,059,305 | ) | (529,129 | ) | ||
Income before income tax |
14,408,796 | 7,452,073 | ||||
Income tax expense (Note 6) |
(4,875,059 | ) | (2,689,917 | ) | ||
Net income for the period |
9,533,737 | 4,762,156 | ||||
The accompanying notes and schedules are an integral part of these financial statements.
Saúl Zang First Vice-Chairman serving as Acting Chairman |
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Statement of Changes in Shareholders Equity
Corresponding to the periods beginning as from July 1, 2004 and 2003
and ended on December 31, 2004 and 2003
(Notes 1 and 2)
Shareholders contributions |
Retained earnings |
|||||||||||||||||||||
Capital (Note 3) |
Inflation of Common |
Paid-in capital |
Total |
Legal reserve |
Unappropriated earnings |
Total at 2004 |
Total at December 31, 2003 |
|||||||||||||||
Items |
Common stock |
Treasury stock |
||||||||||||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | ||||||||||||||
Balances at the beginning of the year |
150,532,819 | 240,000 | 166,218,124 | 106,323,100 | 423,314,043 | 6,087,440 | 35,766,713 | 465,168,196 | 391,799,125 | |||||||||||||
Subscription of incentive plan (Note 12) |
173,200 | (173,200 | ) | | 173,200 | 173,200 | 319,437 | |||||||||||||||
Conversion of bonds in common stock (Note 13) |
2,479,890 | 1,260,738 | 3,740,628 | 3,740,628 | 16,097,982 | |||||||||||||||||
Exercise of Warrants (Note 13) |
2,464,833 | 2,009,413 | 4,474,246 | 4,474,246 | 19,258,074 | |||||||||||||||||
Appropriation of profits resolved by Shareholders Meeting held on October 31, 2004 |
||||||||||||||||||||||
Increase in legal reserve |
1,605,151 | (1,605,151 | ) | | | |||||||||||||||||
Cash dividends |
(3,000,000 | ) | (3,000,000 | ) | (1,500,000 | ) | ||||||||||||||||
Net income for the period |
9,533,737 | 9,533,737 | 4,762,156 | |||||||||||||||||||
Balances at December 31, 2004 |
155,650,742 | 66,800 | 166,218,124 | 109,593,251 | 431,528,917 | 7,692,591 | 40,868,499 | 480,090,007 | | |||||||||||||
Balances at December 31, 2003 |
146,121,345 | 253,000 | 166,218,124 | 103,644,018 | 416,236,487 | 6,087,440 | 8,412,847 | 430,736,774 | ||||||||||||||
The accompanying notes and schedules are an integral part of these financial statements.
Saúl Zang First Vice-Chairman serving as Acting Chairman |
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Statement of Cash Flow
Corresponding to the periods beginning as from July 1, 2004 and 2003
and ended on December 31, 2004 and 2003
December 31, 2004 (Notes 1 and 2) |
December 31, 2003 (Notes 1 and 2) |
|||||
Pesos | Pesos | |||||
Changes in funds |
||||||
Funds at the beginning of the year |
12,527,042 | 20,739,345 | ||||
Funds at the end of the period |
26,605,956 | 19,907,681 | ||||
Net increase (decrease) in funds |
14,078,914 | (831,664 | ) | |||
Causes of changes in funds |
||||||
Operation activities |
||||||
Income for the period |
9,533,737 | 4,762,156 | ||||
Liabilities interest |
5,911,384 | 5,625,120 | ||||
Income tax |
4,875,059 | 2,478,164 | ||||
Adjustments made to reach net cash flow from operation activities |
||||||
Results from interest in controlled and related companies |
(14,229,684 | ) | (2,483,250 | ) | ||
Increase in allowances and reserves |
3,648,938 | 2,306,749 | ||||
Depreciation |
1,501,016 | 1,358,544 | ||||
Results from inventory holdings |
(5,744,136 | ) | (1,240,082 | ) | ||
Financial results |
(4,817,103 | ) | (4,677,012 | ) | ||
Result from sale of fixed assets |
(20,061 | ) | (1,336,906 | ) | ||
Changes in operating assets and liabilities |
||||||
Decrease in current investments |
5,362,711 | 5,707,778 | ||||
(Increase) decrease in trade accounts receivable |
(2,721,637 | ) | 486,106 | |||
Decrease (increase) in other receivables |
7,101,433 | (3,119,130 | ) | |||
Increase in inventories |
(10,834,356 | ) | (9,044,234 | ) | ||
Decrease in social securities charges & taxes payable and advances to customers |
(459,860 | ) | (3,198,756 | ) | ||
Decrease in trade accounts payable |
(1,991,576 | ) | (3,536,008 | ) | ||
Dividends collected |
981,315 | 1,104,139 | ||||
Increase (decrease) in other debts |
3,108,046 | (1,195,455 | ) | |||
Net funds provided by (applied to) operation activities |
1,205,226 | (6,002,077 | ) | |||
Investment activities |
||||||
Increase in permanent investments |
(1,502,678 | ) | (1,199,670 | ) | ||
Increase in interest in related companies |
(7,418,437 | ) | (5,204,531 | ) | ||
Acquisition and upgrading of fixed assets |
(4,701,940 | ) | (3,043,197 | ) | ||
Sale of fixed assets |
245,562 | 3,513,258 | ||||
Net funds applied to investment activities |
(13,377,493 | ) | (5,934,140 | ) | ||
Financing activities |
||||||
Exercise of Warrants |
4,474,246 | 19,258,074 | ||||
Dividends paid |
(3,000,000 | ) | (1,500,000 | ) | ||
Exercise of rights offering on treasury stock |
173,200 | 319,437 | ||||
Increase in financial loans |
36,468,450 | | ||||
Decrease in financial loans |
(11,864,715 | ) | (5,667,108 | ) | ||
Issuance expenses of Convertible Bonds |
| (1,305,850 | ) | |||
Net funds provided by financing activities |
26,251,181 | 11,104,553 | ||||
Net increase (decrease) in funds |
14,078,914 | (831,664 | ) | |||
Items not involving changes in funds |
||||||
Transfer of inventory to fixed assets |
503,848 | 37,227 | ||||
Repayment of financial loans through issue of stock by exercise of conversion right |
3,740,628 | 16,097,982 | ||||
Complementary information |
||||||
Interest paid |
5,107,038 | 5,667,108 | ||||
Income tax paid |
244,857 | 727,313 |
Saúl Zang First Vice-Chairman serving as Acting Chairman |
Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements
Corresponding to the periods beginning as from July 1, 2004 and 2003
and ended on December 31, 2004 and 2003
NOTE 1: | STANDARDS ACCOUNTING |
Below is a description of the most relevant accounting standards used by the Company in the preparation of these Financial Statements, which have been applied on a consistent basis from the previous fiscal year.
a. | Presentation standards |
These financial statements are stated in Argentine pesos, and have been prepared in accordance with the disclosure and valuation accounting standards contained in the Technical Resolutions issued by the Federación Argentina de Consejos Profesionales de Ciencias Económicas, as approved, with resolutions issued by the Consejo Profesional de Ciencias Económicas de la Ciudad Autónoma de Buenos Aires and the Comisión Nacional de Valores.
b. | New Accounting Standards |
The Consejo Profesional de Ciencias Económicas de la Ciudad Autónoma de Buenos Aires enacted the following technical resolutions: N° 16: Conceptual regime for professional accounting regulations; N° 17: Professional accounting regulations: development of matters of general application, N° 18: Professional accounting regulations: development of some matters of particular application and N° 19 Modifications to technical resolutions N° 6, 8, 9, 11 and 14 and N° 20 Derivative instruments and hedging transactions, through Resolutions C 238/01, C 243/01,C 261/01, C 262/01 and C 187/02, respectively; establishing that such technical resolutions and the modifications incorporated, will be in force for fiscal years initiated as from July 1, 2002 (other than Technical Resolution No. 20, which shall become effective for fiscal years beginning as from January 1, 2003).
The Comisión Nacional de Valores, through Resolution N° 434/03 has adopted such technical resolutions with some exceptions and modifications, which have been in force for fiscal years initiated as from January 1, 2003.
The main changes basically result from the registration of income tax under the deferred tax method, as concerns agreements involving derivative instruments at their current value and the valuation of receivables and payables with no stated rate at their discounted value.
As at February 19, 2003, the Consejo Profesional de Ciencias Económicas de la Ciudad Autónoma de Buenos Aires, enacted Technical Resolution N° 21 Proportional value- merge of financial statements- information to provide on related parties through Resolution M.D. N° 5/2003.
The above mentioned Technical Resolution and the amendments introduced became effective for fiscal years ended as from April 1, 2003. Furthermore, The Comisión Nacional de Valores has adopted such Technical Resolution, through Resolution Nª 459/04 introducing some modifications, which will be in force for fiscal years started as from April 1, 2004, consequently the Company has considered their application.
Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 1: | (Continued) |
Financial statements corresponding to the six month economic periods ended to December 31, 2004 and 2003 have not been audited yet. The management believes they include all necessary settlements to reasonably show the results of each period. Results for the six month economic periods ended to December 31, 2004 and 2003 do not necessarily reflect the proportion of the companys result for such complete years.
c. | Accounting for inflation |
The Companys financial statements have been prepared in accordance with Resolution M.D. 3/02 of the Consejo Profesional de Ciencias Económicas de la Ciudad Autónoma de Buenos Aires, which has established the application of Technical Resolution No. 6, as amended by Technical Resolution No. 19 of the Federación Argentina de Consejos Profesionales de Ciencias Económicas, as from fiscal years or interim periods ended on or after March 31, 2002.
On March 25, 2003, the Poder Ejecutivo Nacional issued Decree No. 664 establishing that financial statements for fiscal years ended as from that date should be stated in nominal currency. Therefore, in accordance with Resolution No. 441 issued by the Comisión Nacional de Valores on April 8, 2003, the Company discontinued restatement of its financial statements effective March 1, 2003. This criteria does not comply with Resolution M.D. 041/2003, enacted by the Consejo Profesional de Ciencias Económicas de la Ciudad Autónoma de Buenos Aires, by means of which the restatement of financial statements as of October 1, 2003 is no longer compulsory. However, as of December 31, 2004, this deviation did not have a material effect on the Companys financial statements.
As a consequence of the above, the initial balances at the Companys financial statements are presented in constant currency as of February 28, 2003, having considered the accounting measurements restated by the changes in the purchasing power of the currency until interruption of the adjustment and those arising in the period of stability, restated into currency of December 2001. Transactions subsequent to February 28, 2003 have been recorded at their historical values.
The coefficients prepared based on the domestic wholesale price index, published by the Instituto Nacional de Estadísticas y Censos, have been applied for purposes of the abovementioned restatement of comparative information.
d. | Comparative Information |
For comparison purposes, reclassifications have been made as of December 21, 2003 and June 30, 2004.
Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 2: | SIGNIFICANT ACCOUNTING POLICIES |
a. | Use of estimates |
The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Estimates are used when accounting for the allowance for doubtful accounts, depreciation, amortization, impairment of current and non-current assets, income taxes, deferred liabilities and allowances for contingencies, accrual for expenses and assets recoverable value. Actual results could differ from those estimates.
b. | Local currency assets and liabilities |
The local currency assets and liabilities are stated at period-end nominal currency.
c. | Foreign currency assets and liabilities |
Assets and liabilities denominated in foreign currency have been valued at the amount of such currency as of the closing of the financial statements, converted at the buying and selling exchange rate, respectively, prevailing at year-end.
d. | Temporary investments |
Mutual funds and notes are carried at market value as of period-end.
Temporary investments do not exceed their recoverable value estimated at fiscal period-end.
e. | Trade accounts receivable and payable |
Trade accounts receivable and payable have been valued at their cash price estimated at the time of the transaction, plus interest and implied financial components accrued on the basis of the internal rate of return determined at such time, provided they are significant.
f. | Credits and loans |
Credits and loans have been valued in accordance with the sum of money delivered and received, respectively, net of transaction costs, plus financial results accrued on the basis of the rate estimated at such time as of period-end.
g. | Futures and Options |
Futures relate to cereal commitments deliverable at a previously agreed price (see Note 4). Premiums collected or paid correspond to options bought or written.
Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 2: | (Continued) |
The assets or liabilities originated in derivatives instruments have been valued at their market value at the closing of the period.
Differences generated by the application of the above mentioned valuation criteria to assets and liabilities from derivative instruments have been recognized under net income.
h. | Other receivables and payables |
Other receivables and payables have been valued on the basis of the agreed values plus interest accrued as of the closing of the financial statements.
Other receivables and payables in foreign currency have been valued at their amount in such currency at the fiscal period-end closing date, converted to the buyer and seller exchange rate, respectively, prevailing at the fiscal period-end closing date.
i. | Balances with related parties |
Receivables and payables with related parties have been valued in accordance with the conditions agreed between the parties involved.
j. | Inventories |
1. | Livestock for raising and grazing cattle have been stated at their market value at the end of the period, net of estimated selling expenses. The livestock for dairy production and other purposes not related to direct sale over the next 12 months were valued at replacement cost. |
2. | Crops: at their quoted market value at the end of the period, less estimated sale expenses. |
3. | Sown lands: Sown lands are valued at the replacement cost of the supplies used, plus expenses accrued as of the closing of the financial statements. |
4. | The remaining inventories were valued at replacement value. |
The carrying values of inventories, which are determined as discussed above, do not exceed their estimated recoverable values at the end of the period.
k. | Long term investments in other companies |
1. | Investments in subsidiaries and affiliates |
The investments in subsidiaries and affiliates in which the Company has significant influence have been accounted for under the equity method, as required by Technical Resolution No. 21of the Federación Argentina de Consejos Profesionales de Ciencias Económicas approved by Comisión Nacional de Valores.
Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 2: | (Continued) |
Holdings at December 31, 2004 are as follows:
Subsidiaries and affiliates |
% Equity interest | |
Inversiones Ganaderas S.A. |
99.99 | |
Futuros y Opciones.Com S.A. |
70.00 | |
Cactus Argentina S.A. |
50.00 | |
Agro Uranga S.A. |
35.72 | |
IRSA Inversiones y Representaciones Sociedad Anónima |
26.48 |
Consolidated financial statements with Inversiones Ganaderas S.A., Futuros y Opciones.Com and Cactus Argentina S.A. in proportional consolidation of 50% at December 31, 2004 and 2003 are presented as complementary information.
Current valuations and economic conditions reduce the risks inherent to long-term investment opportunities and increase the possibility of obtaining significant return in the long term. In view of these circumstances: (i) the value of the investment was set at market value; (ii) the value of the investment was calculated by the equity method of accounting; and (iii) the difference between (i) and (ii) was recognized as negative goodwill to be amortized over 20 years.
As of December 31, 2004, the Company recorded as negative goodwill the difference between the prices of conversions of warrants into IRSAs shares and the value assigned according to the calculation of the proportional equity value. In such negative goodwill the impact of IRSAs results from third-party dilutions resulting from the exercise of conversion and warrants for shares will be recognized. Therefore, such amount will not be subject to amortization.
2. | Other Investments |
| Investments in debt securities |
IRSAs Convertible Bonds were valued taking into account the amount existing at period-end in dollars, at the sellers exchange rate plus interest accrued as of the closing date of these financial statements.
| Other investments |
The remaining investments correspond to non-listed securities, which were valued at their restated cost as of February 28, 2003 (Note 1.c.).
| Goodwill |
The goodwill relating to the purchase of the subsidiary Futuros y Opciones.Com S.A. has been valued at its restated cost as of February 28, 2003, calculated as the difference between the price paid for such investment and its equity value calculated at the time of purchase, which was also restated as of that date (Note. 1.c.).
Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 2: | (Continued) |
Depreciation is calculated in accordance with the estimated useful life, which is 5 years and has been classified under Result from interest in subsidiaries and related companies in the statement of income.
l. | Fixed assets |
| Purchase value: |
Valued at cost restated into period-end currency applying the coefficients mentioned in Note 1. c., based on the corresponding dates of origin.
| Depreciation |
Calculated by the straight-line method based on the estimated useful lives of the assets as from the period of addition.
| The carrying value |
The carrying value of fixed assets does not exceed their estimated recoverable value at the end of the period.
m. | Shareholders equity |
Initial balances have been restated into period-end currency following the criteria set forth in Note 1.c. Movements for the period are recorded at their historical values.
n. | Results for the period |
The results for the period are disclosed in the paid cost.
The income statement shows the financial results, discriminating those generated by assets and those generated by liabilities.
o. | Income Tax |
The Company has recognized the income tax liability on the basis of the deferred tax liability method, thus considering temporary differences between registration of assets and liabilities for accounting and tax purposes. The principal temporary differences originate in the valuation of livestock and the sale and replacement of fixed assets.
In order to determine deferred assets and liabilities the tax rate expected to be in effect at the temporary of reversal or use has been applied on the temporary differences identified and tax loss carryforwards, considering the laws enacted as of the date of issuance of these financial statements (35%).
Assets and liabilities generated by the application of the deferred tax method have been valued at face value.
Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 2: | (Continued) |
p. | Tax on minimum hypothetical income |
The Company determines the tax on minimum hypothetical income applying the prevailing rate of 1% on computable assets at fiscal period-end. This tax is supplementary to the income tax. The Companys tax liability for each period will be the higher of these two taxes. However, if the tax on minimum hypothetical income exceeds the income tax in any fiscal year, such excess may be computed as payment on account of the income tax that may be payable in any of the following ten fiscal years.
q. | Revenue recognition |
Revenue is recognized on sales of products when the customer receives title to the goods, generally upon delivery.
NOTE 3: | COMMON AND TREASURY STOCK |
The activity in the Companys shares during the last three financial years was as follows:
Authorized |
Subscribed |
Paid in | ||||
Pesos | Pesos | Pesos | ||||
Common and treasury stock at June 30, 2001 |
119,669,749 | 119,669,749 | 119,669,749 | |||
Preferred offering |
||||||
Fiscal year ended June 30, 2002 (Note 12) |
2,353 | 2,353 | 2,353 | |||
Incentive Plan |
||||||
Fiscal year 02 (Note 12) |
480,000 | 480,000 | 480,000 | |||
Incentive Plan |
||||||
Fiscal year 03 (Note 12) |
3,559,853 | 3,559,853 | 3,559,853 | |||
Conversion of bonds in common stock (Note 13)-Fiscal year 2003 |
386,140 | 386,140 | 386,140 | |||
Incentive Plan (Note 12) - Fiscal year 04 |
332,437 | 332,437 | 332,437 | |||
Conversion of bonds in common stock (Note 13)-Fiscal year 2004 |
13,136,577 | 13,136,577 | 13,136,577 | |||
Exercise of Warrants (Note13)-Fiscal year 2004 |
12,965,710 | 12,965,710 | 12,965,710 | |||
Incentive Plan (Note 12)-Fiscal year 05-1st and 2nd quarter |
173,200 | 173,200 | 173,200 | |||
Conversion of bonds in common stock (Note 13)-Fiscal year 2005-1st and 2nd quarter |
2,479,890 | 2,479,890 | 2,479,890 | |||
Exercise of Warrants (Note13)-Fiscal year 2005-1st and 2nd quarter |
2,464,833 | 2,464,833 | 2,464,833 | |||
Common and treasury stock at December 31, 2004 |
155,650,742 | 155,650,742 | 155,650,742 | |||
Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 3: | (Continued) |
As of December 31, 2004, the capital authorized to be publicly offered is formed of 155,650,742 common, book-entry shares of $ 1 par value each and entitled to one vote per share, all of which were outstanding.
NOTE 4: | FUTURES |
At December 31, 2004 the Company had arranged futures and options on the futures market as follows:
OPTIONS C.B.O.T. SELL CALL SEASON 2004/2005
Cereal |
Tons |
Average price US$ (1) |
Premium US$ (2) |
||||
Soybean |
5,440 | 227.81 | (37,979 | ) | |||
Corn |
12,700 | 98.42 | (10,874 | ) |
OPTIONS C.B.O.T. - PURCHASE CALL SEASON 2004/2005
Cereal |
Tons |
Average price US$ (1) |
Premium US$ (2) | |||
Corn |
12,700 | 86.61 | 39,248 |
OPTIONS C.B.O.T. PURCHASE PUT SEASON 2004/2005
Cereal |
Tons |
Average price US$ (1) |
Premium US$ (2) | |||
Soybean |
2,720 | 205.77 | 37,979 |
FUTURES C.B.O.T. SEASON 2004/2005
Cereal |
Tons |
Average price US$ (1) |
Premium US$ (2) |
||||
Corn-sell |
12,700 | 93.57 | (1,188,312 | ) |
As of December 2004 and 2003, the Company charged to income Ps. 2,088,522 and Ps. 753,010, respectively, in connection with the transactions closed during such periods. These results are disclosed combining the cost of grains in one line of Schedule F.
At December 31, 2003 the Company had arranged futures and options on the forward market as follows:
OPTIONS C.B.O.T. SELL CALL SEASON 2003/2004
Cereal |
Tons |
Average price US$ (1) |
Premium US$ (2) |
||||
Soybean |
13,600 | 323.35 | (99,944 | ) | |||
Corn |
17,780 | 106.29 | (33,598 | ) | |||
Wheat |
14,960 | 168.35 | (58,467 | ) |
Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 4: | (Continued) |
OPTIONS C.B.O.T. PURCHASE CALL - SEASON 2003/2004
Cereal |
Tons |
Average price US$ (1) |
Premium US$ (2) | |||
Soybean |
10,880 | 293.95 | 135,124 | |||
Corn |
45,720 | 90.55 | 305,984 | |||
Wheat |
14,960 | 146.64 | 176,900 |
OPTIONS C.B.O.T. SELL PUT - SEASON 2003/2004
Cereal |
Tons |
Average price US$ (1) |
Premium US$ (2) |
||||
Soybean |
10,880 | 252.62 | (127,928 | ) | |||
Corn |
45,720 | 94.48 | (102,595 | ) | |||
Wheat |
14,960 | 142.63 | (56,468 | ) |
OPTIONS C.B.O.T.-PURCHASE PUT - SEASON 2003/2004
Cereal |
Tons |
Average price US$ (1) |
Premium US$ (2) | |||
Soybean |
13,600 | 264.56 | 199,887 |
OPTIONS SELL CALL SEASON 2003/2004
Cereal |
Tons |
Average price US$ (1) |
Premium US$ |
||||
Corn |
3,100 | 100.26 | (14,923 | ) |
OPTIONS SELL PUT SEASON 2003/2004
Cereal |
Tons |
Average price US$ (1) |
Premium US$ (2) |
||||
Wheat |
200 | 100.00 | (630 | ) |
FUTURES C.B.O.T. - SEASON 2003/2004
Cereal |
Tons |
Average price US$ (1) |
Total amount US$ (2) | |||
Corn-purchase |
3,100 | 89.00 | 287,959 |
(1) | Strike price without deducting expenses. |
(2) | Premiums paid (collected). |
NOTE 5: | MANAGEMENT AGREEMENT |
The Company signed a management agreement with Dolphin Fund Management S.A. (formerly called Consultores Asset Management S.A.), for consulting in relation to livestock and farming activities serving as an intermediary in transactions and investment consulting in relation to security investments.
Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 5: | (Continued) |
In exchange for its services, such company will receive a payment equivalent to 10% of the net income resulting from the annual or the special financial statements.
Since certain directors of Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria are also executive directors and shareholders of Dolphin Fund Management S.A., the above-mentioned agreement was approved by the Extraordinary Shareholders´ Meeting held on October 25, 1994, in compliance with Article N° 271 of Law N° 19,550.
On November 2003, Dolphin Fund Management S.A. was divided into two companies: Consultores Asset Management S.A. and Dolphin Fund Management S.A. As from that moment the management contract is held by Consultores Asset Management S.A.
In relation to this issue, the financial statements as of December 31, 2004 and December 31, 2003 includes a charge in the Statement of Income of Ps. 1,059,305 and a Ps. 529,129 respectively and the same provision for this periods.
NOTE 6: | INCOME TAX DEFERRED TAX |
The following tables show the development and composition of deferred tax Assets and Liabilities.
| Deferred assets as of December 31, 2004: |
Cumulative tax loss carryforwards |
Provisions |
Other |
TOTAL | ||||||
Initial Balance |
2,224,649 | 20 | 1,191 | 2,225,860 | |||||
Charge to results |
(20,840 | ) | | 80,289 | 59,449 | ||||
Closing Balance |
2,203,809 | 20 | 81,480 | 2,285,309 | |||||
| Deferred liabilities as of December 31, 2004: |
Fixed Assets |
Inventories |
Investments |
Accrual |
TOTAL |
|||||||||||
Initial Balance |
(13,522,161 | ) | (11,545,458 | ) | (1,220,989 | ) | (1,069,822 | ) | (27,358,430 | ) | |||||
Charge to results |
106,320 | (1,062,968 | ) | (1,509,122 | ) | 46,947 | (2,418,823 | ) | |||||||
Closing Balance |
(13,415,841 | ) | (12,608,426 | ) | (2,730,111 | ) | (1,022,875 | ) | (29,777,253 | ) | |||||
As of December 31, 2004, net liabilities at period-end as per the information included in the preceding tables amount to Ps. 27,491,944.
Below is a conciliation between the Income Tax charged to Income and that which would result from applying the prevailing tax rate on the Income for accounting purposes:
Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 6: | (Continued) |
Description |
December 31, 2004 |
December 31, 2003 |
||||
Income before income tax |
14,408,796 | 7,452,073 | ||||
Tax rate |
35 | % | 35 | % | ||
Net results at tax rates: |
5,043,079 | 2,608,226 | ||||
Permanent differences at tax rate: |
||||||
Restatement into constant currency |
62,175 | 724,011 | ||||
Penalties |
159 | 847 | ||||
Donations |
| (92,333 | ) | |||
Amortization FYO Goodwill |
55,643 | 55,066 | ||||
Result from purchase and sale of stock |
2,066,984 | 244,230 | ||||
Loss from controlled and related companies |
(4,980,389 | ) | (869,138 | ) | ||
Personal asset tax |
1,157,197 | | ||||
Conversion of bonds in common stock |
1,509,585 | | ||||
Miscellaneous permanent differences |
(39,374 | ) | 19,008 | |||
4,875,059 | 2,689,917 | |||||
During this period the Income Tax rate was 35%.
Cumulative tax loss carryforwards recorded by the Company pending utilization at period-end amount to approximately Ps. 2,203,809 and may be offset against taxable income of future fiscal years, as follows:
Origination year |
Amount |
Expiration Year | ||
2003 |
2,003,809 | 2008 |
| Deferred assets as of December 31, 2003: |
Cumulative tax loss carryforwards |
Provisions |
Other |
TOTAL |
||||||||
Initial Balance |
2,257,116 | (6,335 | ) | 250,802 | 2,501,583 | ||||||
Charge to income |
66,425 | (10,475 | ) | (253,313 | ) | (197,363 | ) | ||||
Closing Balance |
2,323,541 | (16,810 | ) | (2,511 | ) | 2,304,220 | |||||
Cresud Sociedad Anónima, Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 6: | (Continued) |
| Deferred liabilities as of December 31, 2003: |
Fixed Assets |
Inventories |
Investments |
Provisions |
TOTAL |
|||||||||||
Initial Balance |
(13,019,043 | ) | (10,355,850 | ) | (2,705 | ) | (1,001,793 | ) | (24,379,391 | ) | |||||
Charge to income |
(672,657 | ) | (126,040 | ) | 2,269 | (240,215 | ) | (1,036,643 | ) | ||||||
Closing Balance |
(13,691,700 | ) | (10,481,890 | ) | (436 | ) | (1,242,008 | ) | (25,416,034 | ) | |||||
As of December 31, 2003, net liabilities at period-end as per the information included in the preceding tables amount to Ps. 23,111,814.
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 7: | BALANCES AND RESULTS WITH SUBSIDIARIES, RELATED COMPANIES LAW N° 19,550 SECTION 33 AND RELATED PARTIES: |
a. | Balances at December 31, 2004, June 30, 2004 and December 31, 2003 with Subsidiaries, related companies and related parties: |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | ||||
IRSA Invesiones v Representaciones S.A.(3) |
||||||
Current Investments |
||||||
- Interest of Convertible Bonds 2007 -IRSA (US$) |
1,499,204 | 1,388,504 | 1,560,891 | |||
Non-Current Investments |
||||||
- Convertible Bonds 2007 -IRSA (US$) |
134,928,347 | 132,941,891 | 146,333,542 | |||
Current Trade accounts receivable |
| 637 | 18,371 | |||
Current Trade accounts payable |
116,259 | 1,108 | 35,378 | |||
Inversiones Ganaderas S.A.(1) |
||||||
Current Trade accounts receivable |
29,195 | 9,216 | 78,555 | |||
Current Other debts |
1,747,984 | 2,196,666 | 2,384,255 | |||
Non-Current Other debts |
480,640 | | | |||
Futuros y opciones.Com S.A(1) |
||||||
Current Trade accounts receivable |
424,147 | | | |||
Current Other receivables and prepaid expenses |
23,603 | 738,735 | 321,310 | |||
Current Trade accounts payable |
| 3,720 | 14,033 | |||
Cactus Argentina S.A.(3) |
||||||
Current Trade accounts receivable |
30,261 | 29,845 | 13,709 | |||
Current Other receivables and prepaid expenses |
1,354,328 | 1,346,401 | 1,337,986 | |||
Current Trade accounts payable |
530,217 | 1,853,969 | 434,578 | |||
Current Other debts |
205,730 | | | |||
Agro-Uranga S.A.(3) |
||||||
Current Other receivables and prepaid expenses |
234,279 | | | |||
Fundación IRSA (4) |
||||||
Current Trade accounts payable |
1,177,988 | 1,177,988 | 460,642 | |||
Inversora Bolivar (4) |
||||||
Current Trade accounts payable |
6,341 | 5,349 | | |||
Alto Palermo S.A.(4) |
||||||
Current Trade accounts receivable |
| 87,359 | 40,003 | |||
Current Trade accounts payable |
44,233 | 175,133 | 38,931 | |||
Credits to employees (4) |
||||||
Current credits to Senior management, directors and staff of the company |
15,362 | 37,751 | 43,020 | |||
Estudio Zang, Bergel & Viñes(4) |
||||||
Current Trade accounts payable |
23,486 | 81,646 | 15,757 | |||
Directors(4) |
||||||
Current Trade accounts payable |
43,543 | 3,471 | 967 | |||
Current Loans |
||||||
Convertible Bonds 2007 Interest payable (Schedule G) |
||||||
Directors |
252 | 3,324 | 3,363 | |||
Non-Current Loans |
||||||
Convertible Bonds 2007 (Schedule G) |
22,640 | 318,281 | 315,268 | |||
Directors |
||||||
Shareholders (2) |
||||||
Current Loans |
||||||
Convertible Bonds 2007 Interest payable (Schedule G) |
592,928 | 589,239 | 612,819 | |||
Directors |
792,845 | 740,021 | 767,329 | |||
Non-Current Loans |
||||||
Convertible Bonds 2007 (Schedule G) |
53,363,537 | 56,416,538 | 57,451,821 | |||
Directors |
71,356,061 | 70,853,048 | 71,937,067 |
(1) | Controlled company |
(2) | Shareholder |
(3) | Related company |
(4) | Related party |
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 7: | (Continued) |
b. | Results provided by Subsidiaries, related companies and related parties corresponding to the periods ended at December 31, 2004 and 2003: |
Subsidiaries, related companies |
Year |
Sales and Fees for shared services |
Interest paid |
Salaries and social securities |
Fees |
Livestock expenses |
Interest income |
Administrative services |
Others |
|||||||||||||||
Shareholders |
2004 | | (2,951,938 | ) | | | | | | | ||||||||||||||
2003 | | (3,119,828 | ) | | | | | | | |||||||||||||||
Agro-Uranga S.A. |
2004 | | | | | | | | 106,780 | |||||||||||||||
2003 | | | | | | | | | ||||||||||||||||
Alto Palermo S.A. |
2004 | (8,765 | ) | | | | | | | | ||||||||||||||
2003 | (50,887 | ) | | | | | | | | |||||||||||||||
Cactus Argentina S.A. |
2004 | | | | | (3,002,994 | ) | 10,634 | 83,520 | 26,353 | ||||||||||||||
2003 | | | | | (3,035,337 | ) | 9,273 | 92,960 | 7,048 | |||||||||||||||
Directors |
2004 | | (937 | ) | (131,053 | ) | (46,408 | ) | | 9,859 | | | ||||||||||||
2003 | | (13,673 | ) | (158,841 | ) | (3,730 | ) | | 11,226 | | | |||||||||||||
Estudio Zang, Bergel & Viñes |
2004 | | | | (62,024 | ) | | | | | ||||||||||||||
2003 | | | | (24,058 | ) | | | | | |||||||||||||||
Fundación IRSA |
2004 | | | | | | | | | |||||||||||||||
2003 | | | | | | | | | ||||||||||||||||
Futuros y opciones.Com S.A. |
2004 | | | | | | | 19,200 | (608 | ) | ||||||||||||||
2003 | | | | | | | 19,200 | (25,052 | ) | |||||||||||||||
Inversiones Ganaderas S.A. |
2004 | | (70,093 | ) | | | | | 43,289 | 80,744 | ||||||||||||||
2003 | | (63,213 | ) | | | | | | (653 | ) | ||||||||||||||
Inversora Bolívar |
2004 | | | | | | | | (82,317 | ) | ||||||||||||||
2003 | | | | | | | | | ||||||||||||||||
IRSA Inversiones y Representaciones S.A. |
2004 | (43,787 | ) | | | | | | | (16,487 | ) | |||||||||||||
2003 | (54,058 | ) | | | | | | | | |||||||||||||||
Credits to employees |
2004 | | | | | | 14,042 | | | |||||||||||||||
2003 | | | | | | 12,971 | | | ||||||||||||||||
Senior Management |
2004 | | | (864,019 | ) | | | | | | ||||||||||||||
2003 | | | (758,667 | ) | | | | | | |||||||||||||||
Total at December 31, 2004 |
(52,552 | ) | (3,022,968 | ) | (995,072 | ) | (108,432 | ) | (3,002,994 | ) | 34,535 | 146,009 | 114,465 | |||||||||||
Total at December 31, 2003 |
(104,945 | ) | (3,196,714 | ) | (917,508 | ) | (27,788 | ) | (3,035,337 | ) | 33,470 | 112,160 | (18,657 | ) | ||||||||||
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 8: | Details of balance sheet and income statement accounts |
a. | Cash and banks |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | ||||
Pesos | Pesos | Pesos | ||||
Cash |
59,966 | 69,859 | 58,924 | |||
Foreign currency (Schedule G) |
293,009 | 46,431 | 36,870 | |||
Patacones currency |
39 | 39 | | |||
Local currency checking account |
162,493 | 4,781,351 | 675,868 | |||
Patacones currency checking account |
22 | 22 | 22 | |||
Foreign currency checking account (Schedule G) |
9,055,590 | 1,220,084 | 18,898,279 | |||
Local currency saving account |
9,897 | 12,295 | 18,541 | |||
Foreign currency saving account (Schedule G) |
16,610,427 | 5,949,506 | | |||
Checks to be deposited |
386,961 | 443,374 | 215,178 | |||
26,578,404 | 12,522,961 | 19,903,682 | ||||
b. | Investments and Goodwill |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
|||||||
Pesos | Pesos | Pesos | |||||||
Investment |
|||||||||
Investment (Schedule C and G) |
1,639,729 | 1,490,311 | 1,655,808 | ||||||
1,639,729 | 1,490,311 | 1,655,808 | |||||||
Investment |
|||||||||
Investment from controlled and related companies (Schedule C) |
305,920,570 | 274,977,554 | 220,366,049 | ||||||
305,920,570 | 274,977,554 | 220,366,049 | |||||||
Other investments |
|||||||||
Other investments (Schedule C and G) |
134,949,064 | 132,962,608 | 146,354,259 | ||||||
134,949,064 | 132,962,608 | 146,354,259 | |||||||
Goodwill |
|||||||||
Goodwill (Schedule C) |
(36,326,481 | ) | (25,869,346 | ) | (19,931,610 | ) | |||
(36,326,481 | ) | (25,869,346 | ) | (19,931,610 | ) | ||||
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 8: | (Continued) |
c. | Trade accounts receivable |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
|||||||
Pesos | Pesos | Pesos | |||||||
Current |
|||||||||
Accounts receivable in local currency |
5,207,564 | 3,833,851 | 4,151,088 | ||||||
Less: |
|||||||||
Provision for defaulting debtors (Schedule E) |
(348,535 | ) | (387,067 | ) | (424,197 | ) | |||
Accounts receivable in foreign currency (Schedule G) |
955,988 | 3,779 | 63,648 | ||||||
Subsidiaries, related companies Law Nº 19,550 Section 33 and related parties: |
|||||||||
Inversiones Ganaderas S.A. |
29,195 | 9,216 | 78,555 | ||||||
Futuros y Opciones.Com S.A. |
424,147 | | | ||||||
Cactus Argentina S.A. |
30,261 | 29,845 | 13,709 | ||||||
Alto Palermo S.A. |
| 87,359 | 40,003 | ||||||
IRSA Inversiones y Representaciones Sociedad Anónima |
| 637 | 18,371 | ||||||
6,298,620 | 3,577,620 | 3,941,177 | |||||||
d. | Other receivables and prepaid expenses |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | ||||
Pesos | Pesos | Pesos | ||||
Current |
||||||
Prepaid leases |
30,727 | 4,465,136 | 32,016 | |||
Guarantee deposits and premiums (Schedule G) |
232,112 | 2,188,998 | 1,446,694 | |||
Secured by mortgage (Schedule G) |
1,055,695 | 1,033,997 | 1,061,931 | |||
Prepaid expenses |
1,102,780 | 897,192 | 446,759 | |||
Tax prepayments (net of provisions) |
3,491,577 | 3,368,062 | 2,817,630 | |||
Subsidiaries, related companies Law Nº 19,550 Section 33 and related parties: |
||||||
Cactus Argentina S.A. |
1,354,328 | 1,346,401 | 1,337,986 | |||
Futuros y Opciones.Com S.A. |
23,603 | 738,735 | 321,310 | |||
Agro-Uranga S.A. |
234,279 | | | |||
Credits to employees |
15,362 | 37,751 | 43,020 | |||
Shareholders |
| 1,711,833 | 455,583 | |||
Others |
305,243 | 126,923 | 579,688 | |||
7,845,706 | 15,915,028 | 8,542,617 | ||||
Non-current |
||||||
Secured by mortgage (Schedule G) |
| | 1,008,000 | |||
Value Added Tax |
5,180,327 | 4,121,672 | 2,129,515 | |||
Tax on Minimum Hypothetical Income |
99,148 | 17,154 | 781,368 | |||
5,279,475 | 4,138,826 | 3,918,883 | ||||
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 8: | (Continued) |
e. | Inventories |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | ||||
Pesos | Pesos | Pesos | ||||
Current |
||||||
Livestock |
16,877,063 | 18,366,149 | 15,535,226 | |||
Crops |
4,803,409 | 8,639,910 | 3,782,649 | |||
Unharvested crops |
20,090,681 | 1,603,897 | 9,374,173 | |||
Seeds and fodder |
166,898 | 238,378 | 139,344 | |||
Materials and others |
3,024,911 | 4,041,594 | 1,580,539 | |||
Advances to suppliers |
321,747 | 1,440,333 | 1,017,599 | |||
45,284,709 | 34,330,261 | 31,429,530 | ||||
Non-Current |
||||||
Livestock |
46,102,732 | 40,982,536 | 35,852,040 | |||
46,102,732 | 40,982,536 | 35,852,040 | ||||
f. | Trade accounts payable |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | ||||
Pesos | Pesos | Pesos | ||||
Current |
||||||
Suppliers in local currency |
4,071,023 | 4,339,383 | 1,880,406 | |||
Suppliers in foreign currency (Schedule G) |
2,709,862 | 1,110,314 | 924,954 | |||
Subsidiaries, related companies Law Nº 19,550 Section 33 and related parties: |
||||||
Inversora Bolívar S.A. |
6,341 | 5,349 | | |||
Alto Palermo S.A. |
44,233 | 175,133 | 38,931 | |||
IRSA Inversiones y Representaciones S.A. |
116,259 | 1,108 | 35,378 | |||
Cactus Argentina S.A. |
530,217 | 1,853,969 | 434,578 | |||
Futuros y Opciones.Com S.A. |
| 3,720 | 14,033 | |||
Estudio Zang, Bergel & Viñes |
23,486 | 81,646 | 15,757 | |||
Fundación IRSA |
1,177,988 | 1,177,988 | 460,642 | |||
Directors |
43,543 | 3,471 | 967 | |||
Accrual for other expenses (Schedule G) |
2,631,011 | 2,085,778 | 1,989,355 | |||
Accrual for cereal expenses |
295,130 | 213,177 | 200,955 | |||
11,649,093 | 11,051,036 | 5,995,956 | ||||
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 8: | (Continued) |
g. | Loans |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
|||||||
Pesos | Pesos | Pesos | |||||||
Current |
|||||||||
Local financial loans (Note 16) (Schedule G) |
37,220,355 | 6,757,677 | | ||||||
Convertible Bonds 2007 Interest payable (Schedule G) |
592,928 | 589,239 | 612,819 | ||||||
Subsidiaries, related companies Law Nº 19,550 Section 33 and related parties: |
|||||||||
Shareholders |
792,845 | 740,021 | 767,329 | ||||||
Directors |
252 | 3,324 | 3,363 | ||||||
38,606,380 | 8,090,261 | 1,383,511 | |||||||
Non-Current |
|||||||||
Convertible Bonds 2007 (Schedule G) |
53,363,537 | 56,416,538 | 57,451,821 | ||||||
Subsidiaries, related companies Law Nº 19,550 Section 33 and related parties: |
|||||||||
Shareholders |
71,356,061 | 70,853,048 | 71,937,067 | ||||||
Directors |
22,640 | 318,281 | 315,268 | ||||||
Convertible Bonds 2007 expenses |
(1,456,461 | ) | (1,706,993 | ) | (2,034,013 | ) | |||
123,285,777 | 125,880,874 | 127,670,143 | |||||||
h. | Salaries and social security payable |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | ||||
Pesos | Pesos | Pesos | ||||
Current |
||||||
Vacation, statutory annual bonus allowance |
594,686 | 1,001,301 | 436,826 | |||
Social security administration |
161,927 | 166,415 | 135,266 | |||
Salaries payable |
1,263 | 180,340 | 111,956 | |||
Health care scheme |
1,891 | 2,533 | 1,979 | |||
Others |
5,938 | 9,130 | 3,082 | |||
765,705 | 1,359,719 | 689,109 | ||||
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 8: | (Continued) |
i. | Taxes payable |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
|||||||
Pesos | Pesos | Pesos | |||||||
Current |
|||||||||
Accrual for income tax |
2,617,633 | 4,246,881 | | ||||||
Advances to Income tax |
| (2,808,338 | ) | | |||||
Tax on Minimum Hypothetical Income (Note 2.p.) |
99,147 | 17,154 | 781,367 | ||||||
Value Added Tax |
| | 7,317 | ||||||
Property tax payable |
80,613 | 103,284 | 79,590 | ||||||
Taxes withheld for income tax |
47,534 | 163,926 | 26,427 | ||||||
Gross sales taxes |
(196,384 | ) | 80,085 | 152,265 | |||||
Taxes withheld-Gross sales taxes |
128,575 | (81,215 | ) | (87,312 | ) | ||||
Others (1) |
1,594,993 | 494 | | ||||||
4,372,111 | 1,722,271 | 959,654 | |||||||
Non-Current |
|||||||||
Deferred tax |
27,491,943 | 25,132,570 | 23,111,814 | ||||||
27,491,943 | 25,132,570 | 23,111,814 | |||||||
(1) | Including Personal Assets Tax of shareholders |
j. | Other debts |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | ||||
Pesos | Pesos | Pesos | ||||
Current |
||||||
Advances to customers (Schedule G) |
8,718,400 | 4,432,500 | | |||
Accrual for Management fees (Note 5) |
1,059,305 | 1,537,173 | 529,129 | |||
Subsidiaries, related companies Law Nº 19,550 Section 33 and related parties: |
||||||
Inversiones Ganaderas S.A. |
1,747,984 | 2,196,666 | 2,384,255 | |||
Cactus Argentina S.A. (Schedule G) |
205,730 | | | |||
Others |
125,916 | 4,285 | | |||
11,857,335 | 8,170,624 | 2,913,384 | ||||
Non-current |
||||||
Subsidiaries, related companies Law Nº 19,550 Section 33 and related parties: |
||||||
Inversiones Ganaderas S.A. |
480,640 | | | |||
480,640 | | | ||||
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiers y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 9: |
a) | Assets based on their estimated collection or payment term (in pesos) |
Current and non-current investment |
Trade accounts receivable |
Other receivables and prepaid expenses | ||||||||||||||||
Based on their estimated collection or payment term |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | |||||||||
3rd quarter 2004/2003 financial year |
| | 1,560,891 | | | 3,941,177 | | | 3,875,503 | |||||||||
4th quarter 2004/2003 financial year |
| | | | | | | | | |||||||||
1st quarter 2005/2004 financial year |
| | | | 3,577,620 | | | 3,250,227 | | |||||||||
2nd quarter 2005/2004 financial year |
| 1,388,504 | | | | | | | | |||||||||
3rd quarter 2005/2004 financial year |
| | | 6,298,620 | | | 2,411,856 | 1,033,997 | 1,008,000 | |||||||||
4th quarter 2005/2004 financial year |
1,499,204 | | | | | | 597,727 | 305,826 | | |||||||||
1st quarter 2006/2005 financial year |
| | | | | | | | | |||||||||
2nd quarter 2006/2005 financial year |
| | | | | | | | | |||||||||
3rd quarter 2006/2005 financial year |
| | | | | | | | | |||||||||
4th quarter 2006/2005 financial year |
| | | | | | 99,148 | 17,154 | 781,368 | |||||||||
1st quarter 2007/2006 financial year |
| | | | | | | | | |||||||||
2nd quarter 2007/2006 financial year |
| | | | | | | | | |||||||||
3rd quarter 2007/2006 financial year |
| | | | | | | | | |||||||||
4th quarter 2007/2006 financial year |
| | | | | | | | | |||||||||
2nd quarter 2008/2007 financial year |
134,928,347 | 132,941,891 | 146,333,542 | | | | | | | |||||||||
Overdue |
| | | | | | | | | |||||||||
With no stated current term |
140,525 | 101,807 | 94,917 | | | | 4,836,123 | 11,324,978 | 4,667,114 | |||||||||
With no stated non-current term |
20,717 | 20,717 | 20,717 | | | | 5,180,327 | 4,121,672 | 2,129,515 | |||||||||
Total |
136,588,793 | 134,452,919 | 148,010,067 | 6,298,620 | 3,577,620 | 3,941,177 | 13,125,181 | 20,053,854 | 12,461,500 | |||||||||
b) | Assets classified according to the interest rate that they accrued (in pesos) |
Current and non-current investment |
Trade accounts receivable |
Other receivables and prepaid expenses | ||||||||||||||||
Interest rate that they accrue |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 |
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | |||||||||
At fixed interest rate |
134,928,347 | 132,941,891 | 146,333,542 | | | | 1,342,403 | 1,327,126 | 2,313,411 | |||||||||
At variable interest rate |
140,525 | 101,807 | 94,917 | | | | 153,498 | 2,307,893 | 571,094 | |||||||||
Non-interest bearing |
1,519,921 | 1,409,221 | 1,581,608 | 6,298,620 | 3,577, 620 | 3,941,177 | 11,629,280 | 16,418,835 | 9,576,995 | |||||||||
Total |
136,588,793 | 134,452,919 | 148,010,067 | 6,298,620 | 3,577,620 | 3,941,177 | 13,125,181 | 20,053,854 | 12,461,500 | |||||||||
Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 9: |
a) | Liabilities based on their estimated collection or payment term (in pesos) |
Based on their |
Trade accounts payable |
Loans |
Salaries and social security payable |
Taxes payable |
Other debts | |||||||||||||||||||||||||
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31 2004 |
June 30, 2004 |
Dec. 31, 2003 | ||||||||||||||||
3rd quarter 2004/2003 financial year |
| | 5,994,989 | | | 1,383,511 | | | 689,109 | | | 959,654 | | | 529,129 | |||||||||||||||
4th quarter 2004/2003 financial year |
| | | | | | | | | | | | | | 265,353 | |||||||||||||||
1st quarter 2005/2004 financial year |
| 11,047,565 | | | 6,757,677 | | | 1,359,719 | | | 266,574 | | | 1,541,458 | | |||||||||||||||
2nd quarter 2005/2004 financial year |
| 3,471 | 967 | | 1,332,584 | | | | | | 1,455,697 | | | 2,196,666 | 2,118,902 | |||||||||||||||
3rd quarter 2005/2004 financial year |
11,649,093 | | | 22,353,572 | | | 444,433 | | | 160,017 | | | 4,396,907 | | | |||||||||||||||
4th quarter 2005/2004 financial year |
| | | 1,386,025 | | | | | | 1,594,461 | | | 5,506,714 | 4,432,500 | | |||||||||||||||
1st quarter 2006/2005 financial year |
| | | 14,866,783 | | | 321,272 | | | | | | | | | |||||||||||||||
2nd quarter 2006/2005 financial year |
| | | | | | | | | 2,617,633 | | | 1,747,984 | | | |||||||||||||||
3rd quarter 2006/2005 financial year |
| | | | | | | | | | | | | | ||||||||||||||||
4th quarter 2006/2005 financial year |
| | | | | | | | | | | | | | | |||||||||||||||
1st quarter 2007/2006 financial year |
| | | | | | | | | | | | | | | |||||||||||||||
2nd quarter 2007/2006 financial year |
| | | | | | | | | | | | 480,640 | | | |||||||||||||||
3rd quarter 2007/2006 financial year |
| | | | | | | | | | | | | | | |||||||||||||||
4th quarter 2007/2006 financial year |
| | | | | | | | | | | | | | | |||||||||||||||
2nd quarter 2008/2007 financial year |
| | | 123,285,777 | 125,880,874 | 127,670,143 | | | | | | | | | | |||||||||||||||
Overdue |
| | | | | | | | | | | | | | | |||||||||||||||
With no stated current term |
| | | | | | | | | | | | 205,730 | | | |||||||||||||||
With no stated non-current term |
| | | | | | | | | 27,491,943 | 25,132,570 | 23,111,814 | | | | |||||||||||||||
Total |
11,649,093 | 11,051,036 | 5,995,956 | 161,892,157 | 133,971,135 | 129,053,654 | 765,705 | 1,359,719 | 689,109 | 31,864,054 | 26,854,841 | 24,071,468 | 12,337,975 | 8,170,624 | 2,913,384 | |||||||||||||||
b) | Liabilities classified according to the interest rate that they accrued (in pesos) |
Interest rate that |
Trade accounts payable |
Loans |
Salaries and social security payable |
Taxes payable |
Other debts | ||||||||||||||||||||||||||
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 |
Dec. 31, 2004 |
June 30, 2004 |
Dec. 31, 2003 | |||||||||||||||||
At fixed interest rate |
| | | 161,962,593 | 132,638,551 | 127,670,143 | | | | | | | 2,228,624 | 2,196,666 | | ||||||||||||||||
At variable interest rate |
| | | | | | | | | | | | | | | ||||||||||||||||
Non-interest bearing |
11,649,093 | 11,051,036 | 5,995,956 | (70,436 | ) | 1,332,584 | 1,383,511 | 765,705 | 1,359,719 | 689,109 | 31,864,054 | 26,854,841 | 24,071,468 | 10,109,351 | 5,973,958 | 2,913,384 | |||||||||||||||
Total |
11,649,093 | 11,051,036 | 5,995,956 | 161,892,157 | 133,971,135 | 129,053,654 | 765,705 | 1,359,719 | 689,109 | 31,864,054 | 26,854,841 | 24,071,468 | 12,337,975 | 8,170,624 | 2,913,384 | ||||||||||||||||
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 10: | RESTRICTIONS ON DISTRIBUTION OF PROFITS |
In accordance with the Argentine Corporations Law, the Companys by-laws and Resolution N° 368/2001 of the Comisión Nacional de Valores (C.N.V.), 5% of the net and realized profit for the year plus (less) prior year adjustments must be appropriated by resolution of shareholders to a legal reserve until such reserve equals 20% of the Companys outstanding capital.
NOTE 11: | SALE OF FARMS |
On June 30, 2004 a bill of sale was signed for the farm San Enrique, of 977 hectares, located in the Department of General López, Province of Santa Fe. The price for the sale of the farm was of US$ 5,000,000 (US Dollars five million). The title deed had not been executed as of the closing of the financial statements. This sale will generate a profit of US$ 4,300,000 (US Dollars four million and three hundred) approximately.
On August 25, 2004, a preliminary sales agreement was signed for the Ñacurutú farm, and on February 1, 2005 the title deed was signed. Ñacurutú is a 30,353-hectare property located in the Departments of Gral. Obligado and Vera in the Province of Santa Fe. The price was agreed at US$ 5,615,256 (US Dollars five million six hundred and fifteen thousand, tow thousand and fifty six). This sale will provide a profit of approximately US$ 2,600,000.
NOTE 12: | STOCK OPTION PLAN |
As resolved upon at the General Extraordinary Shareholders Meeting at second call held on November 19, 2001 and in accordance with the resolutions adopted by the Board of Directors at its meeting dated December 7, 2001, the shareholders approved a Stock Option Plan (the Plan) relating to the shares that would remain after the shareholders exercised their pre-emptive rights to acquire treasury stock (the Shares), covering 4,614,643 shares.
The stock balance remaining after expiration of the preemptive and accretion periods is intended to be offered under the Incentive Plan approved at the above mentioned Shareholders Meeting, at Ps. 1 (one peso) par value, plus interest accrued as from actual exercise at a six-months LIBOR rate per annum. In accordance with the terms approved at the referred Shareholders Meeting, from a legal standpoint the implementation of the Plan is made by means of the transfer of the Shares in trust. From this balance, two thirds of the options relating to the Shares under the Plan were allocated for distribution by the Companys Board of Directors among certain executive officers. The remaining third was set aside for allotment by the Companys Board of Directors among any employees or executives at the time of allotment and 6 (six) months after the initial allotment, and up to 3 (three) months before the expiration of the exercise period.
In January 2002 an aggregate of 2,353 shares of Ps. 1 par value each were issued under the preferred offering of treasury stock.
In April and June 2002, an aggregate of 480,000 shares of Ps. 1 par value each were issued to executive officers of the Company under the preferred offering of treasury stock.
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 12: | (Continued) |
During the fiscal year ended on June 30, 2003, an aggregate of 3,559,853 shares of Ps. 1 per value each were issued to directors and executive officers of the Company under the preferred offering of treasury stock.
During the fiscal year ended on June 30, 2004, an aggregate of 332,437 shares of Ps. 1 per value each were issued to directors and executive officers of the Company under the preferred offering of treasury stock.
During the current period, an aggregate of 173,200 shares of Ps. 1 per value each were issued to directors and executive officers of the Company under the preferred offering of treasury stock.
After the exercise of the preference offer above mentioned, the remaining balance is 66,800 shares, at the end of the current period.
After the closing of the period, an aggregate of 66,800 shares of Ps. 1 per value each were issued to directors and executive officers of the Company under the preferred offering of treasury stock. As of January 15, 2005, the deadline for exercising the Stock Purchase Option, there was no pending exercise balance.
NOTE 13: | ISSUANCE OF CONVERTIBLE BONDS |
The Shareholders meeting held on March 8, 2002 approved:
a) | The issue of simple convertible bonds, non-convertible into shares of the Company, for an amount of up to US$ 50,000,000 (or its equivalent in other currencies) for a maximum term of 5 years, accruing interest at a fixed rate not to exceed 12%; and/or, |
b) | the issuance of convertible bonds into companys common stock, for a total amount of US$ 50,000,000 (or its equivalent in other currency) with a maturity date in a term of 5 years or more according to the managements decision and a fix rate not exceeding 12% or floating rate with a reference rate such as LIBOR plus a spread not exceeding 10%. |
c) | the subscription option, for the holders of convertible bonds, with a premium determined by the management, between 20 and 30% over the conversion price of the convertible bond, with a value that will remain constant in terms of US currency. The exercise of the above mentioned would occur quarterly, only for the holders of the convertible bonds who have exercised their conversion rights. |
Authorization for the public offer and quotation of convertible bonds has been approved by Resolution N° 14,320 of the Argentine Securities and Exchange Commission dated October 1, 2002 and by the Buenos Aires Stock Exchange, authorizing the issue up to US$ 50,000,000 in securities composed by convertible bonds into common stock with an 8% annual interest rate due in the year 2007, granting the right at the moment of conversion to achieve 50,000,000 common stock subscription options. Likewise, the conversion price and the Warrants price established are as follows:
a) | The conversion price is US$ 0.5078 stocks (US$ 5.0775 ADS), while the Warrant price is US$ 0.6093 stocks (US$ 6.0930 ADS). |
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 13: | (Continued) |
b) | For each of Cresuds convertible bond the holder has the right to convert it to US$ 1.96928 stocks (US$ 0.1969 ADS) and has an option to purchase the same amount of stock at the price of the Warrant. |
Convertible bonds and options will be due on November 14, 2007.
Convertible bonds were paid in cash and the proceeds will be destined to the subscription of IRSAs Convertible Bonds and for the generation of working capital.
During the fiscal year ended on June 30, 2003, 196,084 Convertible Bonds were converted into 386,140 ordinary shares, which resulted in a Ps. 593,038 increase in the Companys net shareholders equity.
During the fiscal year ended on June 30, 2004, 6,670,763 Convertible Bonds were converted into 13,136,577 ordinary shares, which resulted in a Ps. 19,364,974 increase in the Companys net shareholders equity. During the same year, 6,583,995 Warrants were exercised, resulting in the issuance of 12,965,710 ordinary shares for Ps. 23,068,638.
During the current period, 1,259,290 Convertible Bonds were converted into 2,479,890 ordinary shares, which resulted in a Ps. 3,740,628 increase in the Companys net shareholders equity. In the same period, 1,251,644 warrants were exercised, resulting in the issuance of 2,464,833 common shares for Ps. 4,474,246.
NOTE 14: | PURCHASE OF CONVERTIBLE BONDS |
During November and December 2002 49,692,688 convertible bonds issued by IRSA were purchased; these can be converted into common stock with an 8% annual interest rate and due in 2007, and grant the holder at the time of conversion to 49,692,688 options to subscribe common stock. The conversion price and the warrants price established are as follows:
a) | The conversion price is US$ 0.5571 stocks (US$ 5.5713 GDS), while the warrant price is US$ 0.6686 stocks (US$ 6.6856 GDS) |
b) | For each of IRSAs convertible bond the holder has the right to convert it to 1.7949 stocks (0.1795 GDS) and has an option to purchase the same amount of stock at the price of the warrant. |
Due to the distribution of 4,587,285 stocks of the companys portfolio, IRSA has re stated the conversion price of its convertible bonds according to the subscription clauses.
The conversion price of the convertible bonds went from US$ 0.5571 to US$ 0.54505 and the warrants price went from US$ 0.6686 to US$ 0.6541. Such adjustment was effective as from December 20, 2002.
Convertible bonds and options are due on November 14, 2007.
During the months of July and November 2003 the Company purchased 250,500 Notes, and in May 2004 it converted 5,000,000 Notes into 9,174,312 common shares. Therefore, as of June 30, 2004, the Company held 44,943,168 Notes.
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTE 14: | (Continued) |
During the fiscal year ended on June 30, 2004, third parties bearers of convertible bonds into IRSAs ordinary stock have exercised their conversion and warrant rights for a total amount of Ps. 62,8 million originating the issuance of 27,616,878 ordinary shares with a nominal value of Ps. 1 each. As a consequence of the exercise of such conversion rights, the company has registered a Ps. 10.3 million loss originated by the dilution of their equity share in IRSA, which is shown in Results of subsidiaries Law 19,550 and related companies in the Statements of Income.
As of June 30, 2004, this effect was reverted due to the exercise of share conversion rights mentioned above.
In July 2004 the Company purchased 350,000 Notes issued by IRSA Inversiones y Representaciones Sociedad Anónima for US$ 511,115.
During this period, third parties holders of Notes Convertible into common shares of IRSA have exercised their conversion and have effective their exercise of warrants for a total of Ps. 6.3 million, resulting in the issuance of 3,542,943 common shares of Ps. 1 par value each. On the other hand, the Company exercised warrants for a total of Ps. 17.7 million, resulting in the issuance of 9,174,311 common shares of Ps. 1 par value each. As a result of these transactions, as of December 31, 2004 the Company recorded Ps. 12.6 million as negative goodwill against which the impact of losses for dilutions due to the exercise of conversions and/or warrants from third party holders of IRSAs Convertible Notes will be recognized.
NOTE 15: | IRSA Inversiones y Representaciones Sociedad Anónima (IRSA) INCREASE TO INVESMENT IN BANCO HIPOTECARIO S.A. (BHSA) |
On December 30, 2003, IRSA Group purchased 4,116,267 shares of Banco Hipotecario S.A. at US$ 2.3868 each and 37,537 options at US$ 33.86 each, achieving the right to purchase an additional amount totaling 3,753,700 shares. Such transaction implied a disburse amounting US$ 11.1 million.
Furthermore, on February 2, 2004, IRSA Group exercised a substantial portion of the options acquired mentioned above, jointly with the options held before the end of the year. In this respect, 4,773,853 shares were acquired for a total amount of Ps. 33.4 million.
During the last quarter of fiscal year 2004, the IRSA Group sold a portion of its shareholding in Banco Hipotecario S.A. (2,487,571 shares) to IFIS S.A. (indirect shareholder of the Company) for a unit price of Ps. 7 (market value). The total amount of the transaction was US$ 6.1 million and generated a loss of Ps. 1.61 million.
At the date of issuance of the present financial statements, IRSA´s ownership of BHSA shares amounts 17,641,015.
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Notes to the Unaudited Financial Statements (Continued)
NOTA 16: | LOANS |
During this semester, the Company has developed an external funding strategy to raise working capital for the crop season at convenient rates and terms consisting in the pre-financing of exports, which allow us to develop new businesses optimizing risks and have the liquidity required to take advantage of any investment opportunities that may arise.
Therefore, as of December 31, 2004, current loans with local financial institutions amounted to Ps. 37.2 million. This allowed us to promote new production projects and generate a more efficient capital structure for the Company.
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Fixed Assets
Corresponding to the period beginning as from July 1, 2004
and ended on December 31, 2004
comparative with the year ended on June 30, 2004 and with the period ended on December 31, 2003
(Notes 1 and 2)
Schedule A
Depreciation |
||||||||||||||||||||||||
Principal Account |
Value at the beginning of the year |
Additions and/or transfers |
Deductions and/or transfers |
Value at the end of |
Rate % |
Accumulated at the beginning of the year |
Decrease of the period/ year |
Current period/ |
Accumulated at the end of period/year |
Net carrying December 31, |
Net June 30, |
Net carrying December 31, | ||||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | ||||||||||||||
Real estate |
120,668,102 | 352,353 | | 121,020,455 | | | | | | 121,020,455 | 120,668,102 | 118,017,185 | ||||||||||||
Wire fences |
4,176,054 | | | 4,176,054 | 3 | 834,294 | | 62,897 | 897,191 | 3,278,863 | 3,341,760 | 3,404,788 | ||||||||||||
Watering troughs |
3,136,281 | | | 3,136,281 | 5 | 895,579 | | 80,020 | 975,599 | 2,160,682 | 2,240,702 | 2,288,833 | ||||||||||||
Alfalfa fields and meadows |
1,686,488 | 316,797 | | 2,003,285 | 12-25-50 | 1,105,794 | | 198,255 | 1,304,049 | 699,236 | 580,694 | 735,424 | ||||||||||||
Buildings and constructions |
5,431,487 | 118,986 | | 5,550,473 | 2 | 2,063,502 | | 45,270 | 2,108,772 | 3,441,701 | 3,367,985 | 3,310,883 | ||||||||||||
Machinery |
8,285,123 | 9,335 | 34,177 | 8,260,281 | 10 | 5,633,188 | 29,397 | 384,284 | 5,988,075 | 2,272,206 | 2,651,935 | 3,041,996 | ||||||||||||
Vehicles |
1,304,710 | 224,475 | 105,098 | 1,424,087 | 20 | 654,956 | 62,006 | 127,142 | 720,092 | 703,995 | 649,754 | 419,320 | ||||||||||||
Tools |
193,361 | 1,450 | | 194,811 | 10 | 130,040 | | 7,350 | 137,390 | 57,421 | 63,321 | 66,185 | ||||||||||||
Furniture and equipment |
996,477 | 35,046 | | 1,031,523 | 10 | 644,610 | | 44,671 | 689,281 | 342,242 | 351,867 | 329,474 | ||||||||||||
Corral and leading lanes |
608,664 | | | 608,664 | 3 | 111,773 | | 9,078 | 120,851 | 487,813 | 496,891 | 493,303 | ||||||||||||
Roads |
1,093,420 | 2,146 | | 1,095,566 | 10 | 603,155 | | 54,800 | 657,955 | 437,611 | 490,265 | 547,837 | ||||||||||||
Facilities |
7,414,628 | 6,080 | 32,946 | 7,387,762 | 10-20-33 | 3,567,870 | | 385,078 | 3,952,948 | 3,434,814 | 3,846,758 | 2,818,428 | ||||||||||||
Computer equipment |
1,199,977 | 196,375 | 296 | 1,396,056 | 20 | 969,121 | 296 | 70,634 | 1,039,459 | 356,597 | 230,856 | 207,175 | ||||||||||||
Silo plants |
1,169,114 | | | 1,169,114 | 5 | 315,645 | | 31,537 | 347,182 | 821,932 | 853,469 | 882,178 | ||||||||||||
Constructions in progress |
11,568,150 | 3,408,521 | | 14,976,671 | | | | | | 14,976,671 | 11,568,150 | 4,847,070 | ||||||||||||
Advances to suppliers |
144,683 | 534,224 | 144,683 | 534,224 | | | | | | 534,224 | 144,683 | 17,831 | ||||||||||||
Total at December 31, 2004 |
169,076,719 | 5,205,788 | 317,200 | 173,965,307 | 17,529,527 | 91,699 | 1,501,016 | 18,938,844 | 155,026,463 | |||||||||||||||
Total at June 30, 2004 |
159,535,365 | 14,880,715 | 5,339,361 | 169,076,719 | 17,652,983 | 3,116,505 | 2,993,049 | 17,529,527 | 151,547,192 | |||||||||||||||
Total at December 31, 2003 |
159,535,365 | 3,080,424 | 4,265,027 | 158,350,762 | 17,652,983 | 2,088,675 | 1,358,544 | 16,922,852 | 141,427,910 | |||||||||||||||
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Investments
Corresponding to the period beginning as from July 1, 2004 and ended on December 31, 2004
comparative with the year ended on June 30, 2004 and with the period ended on December 31, 2003
(Notes 1 and 2)
Schedule C
Type and characteristics of the |
Amount |
Value at December |
Value at June 30, 2004 |
Value at December |
Market Value |
INFORMATION ON THE ISSUER | ||||||||||||||||
Principal activity |
Latest financial statements | |||||||||||||||||||||
Capital |
Income (loss) |
Shareholders Equity | ||||||||||||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | ||||||||||||||||
Current Investments |
||||||||||||||||||||||
Mutual Funds |
||||||||||||||||||||||
Fondo especial Banco Rio in pesos |
110,475 | 25,029 | | | 0.226558 | |||||||||||||||||
Fondo plazo fijo Banco Rio in dollars |
1,.862 | 2,523 | 4,081 | 3,999 | 1.354995 | |||||||||||||||||
27,552 | 4,081 | 3,999 | ||||||||||||||||||||
Notes and Convertible Bonds |
||||||||||||||||||||||
Interest of Convertible Bonds 2007- IRSA(US$) |
||||||||||||||||||||||
Subsidiaries, related companies Law N° 19,550 Section 33 and related parties: |
||||||||||||||||||||||
IRSA Inversiones y Representaciones S.A. |
1,499,204 | 1,388,504 | 1,560,891 | |||||||||||||||||||
Bonos Global 2010 |
110, 000 | 112,343 | 97,096 | 90,288 | 1.021300 | |||||||||||||||||
Bocon Pro 1 |
157,647 | 630 | 630 | 630 | 0.003996 | |||||||||||||||||
1,612,177 | 1,486,230 | 1,651,809 | ||||||||||||||||||||
Total current investment |
1,639,729 | 1,490,311 | 1,655,808 | |||||||||||||||||||
Non-current investments |
||||||||||||||||||||||
Subsidiaries, related companies Law N° 19,550 Section 33 and related parties: |
||||||||||||||||||||||
AGRO-URANGA S.A. |
unlisted | Agricultural and livestock | 2,500,000 | 1,551,749 | 13,035,586 | |||||||||||||||||
Shares |
893,069 | 4,523,238 | 5,230,031 | 4,313,051 | ||||||||||||||||||
Contribution on account of future subscriptions of shares |
7,865 | 7,865 | 7,865 | |||||||||||||||||||
Higher value of property |
11,179,150 | 11,179,150 | 11,179,150 | |||||||||||||||||||
15,710,253 | 16,417,046 | 15,500,066 | ||||||||||||||||||||
INVERSIONES GANADERAS S.A. |
unlisted | Raising and grazing cattle | 5,326,589 | 351,644 | 11,477,885 | |||||||||||||||||
Shares |
5,326,588 | 10,748,274 | 10,396,631 | 10,253,055 | ||||||||||||||||||
Contribution on account of future subscriptions of shares |
729,585 | 729,585 | 729,584 | |||||||||||||||||||
11,477,859 | 11,126,216 | 10,982,639 | ||||||||||||||||||||
CACTUS ARGENTINA S.A. |
unlisted | Explotation and administration of agricultural and beef cattle products | 1,300,000 | (138,566 | ) | 6,419,664 | ||||||||||||||||
Shares |
650,000 | 1,074,214 | 1,143,497 | 937,100 | ||||||||||||||||||
Contribution on account of future subscriptions of shares |
2,135,618 | 2,135,618 | 2,135,543 | |||||||||||||||||||
3,209,832 | 3,279,115 | 3,072,643 | ||||||||||||||||||||
FUTUROS Y OPCIONES.COM S.A. |
unlisted | Gives information about markets and services of economic and financial consulting through internet | 12,000 | (200,285 | ) | 17,795 | ||||||||||||||||
Shares |
8,400 | (2,714,336 | ) | (2,574,138 | ) | (2,483,616 | ) | |||||||||||||||
Contribution on account of future subscriptions of shares |
2,726,793 | 2,726,793 | 2,726,641 | |||||||||||||||||||
12,457 | 152,655 | 243,025 | ||||||||||||||||||||
IRSA Inversiones y Representaciones S.A. |
||||||||||||||||||||||
Shares |
69,242,276 | 275,510,169 | 244,002,522 | 190,567,676 | listed | Real state | 261,520,248 | 56,756,060 | 1,040,570,752 | |||||||||||||
275,510,169 | 244,002,522 | 190,567,676 | ||||||||||||||||||||
Subtotal | 305,920,570 | 274,977,554 | 220,366,049 | |||||||||||||||||||
Other Investments |
||||||||||||||||||||||
Convertible Bonds 2007- IRSA (US$) |
||||||||||||||||||||||
Subsidiaries, related companies Law N° 19,550 Section 33 and related parties: |
||||||||||||||||||||||
IRSA Inversiones y Representaciones S.A. |
45,293,168 | 134,928,347 | 132,941,891 | 146,333,542 | ||||||||||||||||||
Coprolán |
20,717 | 20,717 | 20,717 | unlisted | ||||||||||||||||||
Subtotal | 134,949,064 | 132,962,608 | 146,354,259 | |||||||||||||||||||
Goodwill |
||||||||||||||||||||||
Goodwill |
329,838 | 659,676 | 989,514 | |||||||||||||||||||
IRSA negative goodwill |
(36,656,319 | ) | (26,529,022 | ) | (20,921,124 | ) | ||||||||||||||||
Subtotal | (36,326,481 | ) | (25,8f69,346 | ) | (19,931,610 | ) | ||||||||||||||||
Total non-current investments |
404,543,153 | 382,070,816 | 346,788,698 | |||||||||||||||||||
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Allowances
Corresponding to the period beginning as from July 1, 2004
and ended on December 31, 2004
comparative with the year ended on June 30, 2004 and with the period ended on December 31, 2003
(Notes 1 and 2)
Schedule E
Item |
Opening balances |
Deductions |
Value at December 31, 2004 |
Value at June 30, 2004 |
Value at December 31, 2003 | ||||||
Pesos | Pesos | Pesos | Pesos | Pesos | |||||||
Deducted from assets |
|||||||||||
Defaulting debtors |
387,067 | (38,532 | ) | 348,535 | 387,067 | 424,197 | |||||
Total at December 31, 2004 |
387,067 | (38,532 | ) | 348,535 | |||||||
Total at June 30, 2004 |
454,125 | (67,058 | ) | 387,067 | |||||||
Total at December 31, 2003 |
454,125 | (29,928 | ) | 424,197 | |||||||
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Cost of sales
Corresponding to the periods beginning as from July 1, 2004 and 2003
and ended on December 31, 2004 and 2003
(Notes 1 and 2)
Schedule F
Crops |
Beef cattle |
Milk |
Others |
Total |
||||||||||||||||||||||||||||||||
December 31, 2004 |
December 31, 2003 |
December 31, 2004 |
December 31, 2003 |
December 31, 2004 |
December 31, 2003 |
December 31, 2004 |
December 31, 2003 |
December 31, 2004 |
December 31, 2003 |
|||||||||||||||||||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | |||||||||||||||||||||||||
Inventories at the beginning of the year |
||||||||||||||||||||||||||||||||||||
Beef cattle |
| | 55,198,055 | 45,097,923 | 4,150,630 | 2,294,684 | | | 59,348,685 | 47,392,607 | ||||||||||||||||||||||||||
Crops |
8,639,910 | 6,301,776 | | | | | | | 8,639,910 | 6,301,776 | ||||||||||||||||||||||||||
Unharvested crops |
1,603,897 | 1,112,230 | | | | | | | 1,603,897 | 1,112,230 | ||||||||||||||||||||||||||
Seeds and fodder |
| | 134,870 | 106,386 | 103,508 | 58,969 | | | 238,378 | 165,355 | ||||||||||||||||||||||||||
Materials |
3,842,219 | 1,222,255 | | | 44,982 | 33,362 | 154,393 | 169,094 | 4,041,594 | 1,424,711 | ||||||||||||||||||||||||||
14,086,026 | 8,636,261 | 55,332,925 | 45,204,309 | 4,299,120 | 2,387,015 | 154,393 | 169,094 | 73,872,464 | 56,396,679 | |||||||||||||||||||||||||||
Holding results |
| | 5,484,966 | 1,010,632 | 259,170 | 229,450 | | | 5,744,136 | 1,240,082 | ||||||||||||||||||||||||||
Commodities market results |
2,088,522 | 753,010 | | | | | | | 2,088,522 | 753,010 | ||||||||||||||||||||||||||
Transfer of Inventories to expenses |
(149,403 | ) | (164,529 | ) | | | | | | | (149,403 | ) | (164,529 | ) | ||||||||||||||||||||||
Transfer of Inventories to fixed assets |
(464,153 | ) | (35,860 | ) | | | | | (39,695 | ) | (1,367 | ) | (503,848 | ) | (37,227 | ) | ||||||||||||||||||||
Transfer of Unharvested crops to expenses |
(6,646,273 | ) | (2,783,694 | ) | (136,871 | ) | (149,777 | ) | (376,780 | ) | (204,552 | ) | (262,674 | ) | (283,890 | ) | (7,422,598 | ) | (3,421,913 | ) | ||||||||||||||||
Recovery of Inventories |
| | 101,950 | 139,734 | (101,950 | ) | (139,734 | ) | | | | | ||||||||||||||||||||||||
Purchases |
25,562,280 | 11,876,012 | 3,097,849 | 4,009,929 | 398,128 | 563,961 | 335,654 | 277,057 | 29,393,911 | 16,726,959 | ||||||||||||||||||||||||||
Operating expenses (Schedule H) |
4,562,016 | 3,397,918 | 9,279,058 | 6,367,720 | 976,650 | 933,330 | 33,144 | | 14,850,868 | 10,698,968 | ||||||||||||||||||||||||||
Less: |
||||||||||||||||||||||||||||||||||||
Inventories at the end of the year |
||||||||||||||||||||||||||||||||||||
Beef cattle |
| | (58,540,015 | ) | (48,133,395 | ) | (4,439,780 | ) | (3,253,871 | ) | | | (62,979,795 | ) | (51,387,266 | ) | ||||||||||||||||||||
Crops |
(4,803,409 | ) | (3,782,649 | ) | | | | | | | (4,803,409 | ) | (3,782,649 | ) | ||||||||||||||||||||||
Unharvested crops |
(20,090,681 | ) | (9,374,173 | ) | | | | | | | (20,090,681 | ) | (9,374,173 | ) | ||||||||||||||||||||||
Seeds and fodder |
| | (88,843 | ) | (62,725 | ) | (78,055 | ) | (76,619 | ) | | | (166,898 | ) | (139,344 | ) | ||||||||||||||||||||
Materials |
(2,753,105 | ) | (1,378,359 | ) | | | (59,538 | ) | (42,704 | ) | (212,268 | ) | (159,476 | ) | (3,024,911 | ) | (91,065,694 | ) | (1,580,539 | ) | (66,263,971 | ) | ||||||||||||||
Cost of Sales |
11,391,820 | 7,143,937 | 14,531,019 | 8,386,427 | 876,965 | 396,276 | 8,554 | 1,418 | 26,808,358 | 15,928,058 | ||||||||||||||||||||||||||
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Foreign currency assets and liabilities
Corresponding to the period beginning as from July 1, 2004 and ended on December 31, 2004
comparative with the year ended on June 30, 2004 and with the period ended on December 31, 2003
(Notes 1 and 2)
Schedule G
December 31, 2004 |
June 30, 2004 |
December 31, 2003 | |||||||||||||||
Item |
Type and amount currency |
Current exchange rate |
Amount in local currency |
Type and amount currency |
Amount in local currency |
Type and amount currency |
Amount in local currency | ||||||||||
Pesos | Pesos | Pesos | Pesos | ||||||||||||||
Current Assets |
|||||||||||||||||
Cash and banks |
|||||||||||||||||
Cash and banks |
US$ | 8,832,605 | 2.94 | 25,959,026 | US$ | 2,472,934 | 7,216,021 | US$ | 6,574,705 | 18,935,149 | |||||||
Investments: |
|||||||||||||||||
Mutual funds |
US$ | 858 | 2.94 | 2,523 | US$ | 1,399 | 4,081 | US$ | 1,389 | 3,999 | |||||||
Interest of Convertible Bonds 2007 - IRSA |
|||||||||||||||||
Subsidiaries, related companies Law 19,550 Article 33 and related parties: |
|||||||||||||||||
IRSA Inversiones y Representaciones Sociedad Anónima |
US$ | 503,257 | 2.98 | 1,499,204 | US$ | 469,406 | 1,388,504 | US$ | 541,976 | 1,560,891 | |||||||
Trade accounts receivable: |
|||||||||||||||||
Trade accounts receivable |
US$ | 325,277 | 2.94 | 955,988 | US$ | 1,295 | 3,779 | US$ | 22,100 | 63,648 | |||||||
Other receivables and prepaid expenses: |
|||||||||||||||||
Secured by mortgages |
US$ | 359,202 | 2.94 | 1,055,695 | US$ | 354,351 | 1,033,997 | US$ | 368,726 | 1,061,931 | |||||||
Guarantee deposits |
US$ | 78,977 | 2.94 | 232,112 | US$ | 750,171 | 2,188,998 | US$ | 502,324 | 1,446,694 | |||||||
Non-Current Assets |
|||||||||||||||||
Other receivables and prepaid expenses: |
|||||||||||||||||
Secured by mortgages |
US$ | | US$ | | US$ | 350,000 | 1,008,000 | ||||||||||
Investments: |
|||||||||||||||||
Convertible Bonds 2007 - IRSA |
|||||||||||||||||
Subsidiaries, related companies Law 19,550 Article 33 and |
|||||||||||||||||
related parties: |
|||||||||||||||||
IRSA Inversiones y Representaciones Sociedad Anónima |
US$ | 45,293,168 | 2.98 | 134,928,347 | US$ | 44,943,168 | 132,941,891 | US$ | 49,943,188 | 146,333,542 | |||||||
Total Assets |
US$ | 55,393,344 | 164,632,895 | US$ | 48,992,724 | 144,777,271 | US$ | 58,304,408 | 170,413,854 | ||||||||
Current liabilities |
|||||||||||||||||
Trade accounts payable: |
|||||||||||||||||
Suppliers |
US$ | 909,655 | 2.98 | 2,709,862 | US$ | 375,360 | 1,110,314 | US$ | 315,684 | 924,954 | |||||||
Accrual for other expenses |
US$ | 714,893 | 2.98 | 2,129,666 | US$ | 499,662 | 1,477,683 | US$ | 155,191 | 454,710 | |||||||
Loans: |
|||||||||||||||||
Local financial loans |
US$ | 4,068,000 | 2.98 | 12,118,572 | US$ | | US$ | | |||||||||
Interest of Convertible Bonds 2007 |
US$ | 199,036 | 2.98 | 592,928 | US$ | 199,202 | 589,239 | US$ | 209,153 | 612,819 | |||||||
Subsidiaries, related companies Law 19,550 Article 33 and related parties: |
|||||||||||||||||
Shareholders |
US$ | 266,145 | 2.98 | 792,845 | US$ | 250,176 | 740,021 | US$ | 261,887 | 767,329 | |||||||
Directors |
US$ | 85 | 2.98 | 252 | US$ | 1,124 | 3,324 | US$ | 1,148 | 3,363 | |||||||
Other debts: |
|||||||||||||||||
Advances to customers |
US$ | 1,411,516 | 2.98 | 4,204,906 | US$ | 1,500,000 | 4,432,500 | US$ | | | |||||||
Subsidiaries, related companies Law 19,550 Article 33 and related parties: |
|||||||||||||||||
Cactus Argentina S.A. |
US$ | 70,000 | 2.94 | 205,730 | | | | | |||||||||
Non-current liabilities |
|||||||||||||||||
Loans: |
|||||||||||||||||
Convertible Bonds 2007 |
US$ | 17,913,238 | 2.98 | 53,363,537 | US$ | 19,072,528 | 56,416,538 | US$ | 19,608,130 | 57,451,821 | |||||||
Subsidiaries, related companies Law 19,550 Article 33 and related parties: |
|||||||||||||||||
Shareholders |
US$ | 23,953,025 | 2.98 | 71,356,061 | US$ | 23,953,025 | 70,853,048 | US$ | 24,551,900 | 71,937,067 | |||||||
Directors |
US$ | 7,600 | 2.98 | 22,640 | US$ | 107,600 | 318,281 | US$ | 107,600 | 315,268 | |||||||
Total Liabilities |
US$ | 49,513,192 | 147,496,999 | US$ | 45,958,677 | 135,940,948 | US$ | 45,210,693 | 132,467,331 | ||||||||
US$: US dollars
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Unaudited Infonnation submitted in compliance with Section 64, subsection B of Law N° 19,550
Corresponding to the periods beginning as from July 1, 2004 and 2003
and ended on December 31, 2004 and 2003
(Notes 1 and 2)
Schedule H
Items |
Total December 31, 2004 |
Operating Expenses |
Expenses |
Total December 31, 2003 | ||||||||||||||
Total |
Crops |
Beef cattle |
Milk |
Others |
Selling |
Administrative |
||||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | ||||||||||
Directors fees |
46,408 | 46,408 | 3,730 | |||||||||||||||
Fees and payments for services |
503,171 | 99,766 | 5,726 | 84,599 | 6,875 | 2,566 | | 403,405 | 632,450 | |||||||||
Salaries and wages |
2,554,573 | 1,117,629 | 249,754 | 721,814 | 146,061 | | | 1,436,944 | 3,223,972 | |||||||||
Social security contributions |
464,522 | 193,744 | 81,521 | 99,711 | 12,512 | | | 270,778 | 382,284 | |||||||||
Taxes, rates and contributions |
203,632 | 179,811 | 54,344 | 110,097 | 15,370 | | | 23,821 | 196,533 | |||||||||
Gross sales taxes |
260,488 | | | | | | 260,488 | | 266,305 | |||||||||
Office and administrative expenses |
219,318 | | | | | | | 219,318 | 79,991 | |||||||||
Bank commissions and expenses |
6,855 | 6,855 | 1,891 | 3,992 | 182 | 790 | | | 9,961 | |||||||||
Depreciation of fixed assets |
1,501,016 | 1,355,948 | 759,378 | 487,833 | 100,400 | 8,337 | | 145,068 | 1,358,544 | |||||||||
Vehicle and travelling expenses |
295,806 | 154,337 | 58,029 | 82,165 | 6,901 | 7,242 | | 141,469 | 233,684 | |||||||||
Spare parts and repairs |
598,008 | 598,008 | 311,710 | 248,881 | 36,717 | 700 | | | 503,317 | |||||||||
Insurance |
118,787 | 30,585 | 13,667 | 13,000 | 1,372 | 2,546 | | 88,202 | 160,596 | |||||||||
Employees maintenance |
174,362 | 127,259 | 21,643 | 101,090 | 4,468 | 58 | | 47,103 | 76,324 | |||||||||
Livestock expenses |
7,852,215 | 7,247,491 | | 7,247,491 | | | 604,724 | | 4,907,955 | |||||||||
Dairy farm expenses |
643,214 | 636,126 | | | 636,126 | | 7,088 | | 584,715 | |||||||||
Agricultural expenses |
4,465,418 | 2,929,287 | 2,929,287 | | | | 1,536,131 | | 3,058,699 | |||||||||
Silo expenses |
41,963 | 41,963 | 41,963 | | | | | | 123,395 | |||||||||
General expenses |
132,059 | 132,059 | 33,103 | 78,385 | 9,666 | 10,905 | | | 235,618 | |||||||||
Total at December 31, 2004 |
20,081,815 | 14,850,868 | 4,562,016 | 9,279,058 | 976,650 | 33,144 | 2,408,431 | 2,822,516 | | |||||||||
Total at December 31, 2003 |
10,698,968 | 3,397,918 | 6,367,720 | 933,330 | | 2,102,952 | 3,236,153 | 16,038,073 | ||||||||||
Comercial, Inmobiliaria, Financiera y Agropecuaria
Additional Information to the Notes to the Unaudited Financial Statements
for the period ended December 31, 2004
1. | LEGAL FRAMEWORK |
There are no specific significant legal regimes that would imply contingent suspension or application of the benefits included in these regulations.
2. | RELEVANT MODIFICATONS IN THE COMPANYS ACTIVITIES |
They are detailed in the Unaudited Business Highlight, which is attached to the present financial statements.
3. | CLASSIFICATION OF OUTSTANDING ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES ACCORDING TO THEIR MATURITY |
a. | Other Receivables without a due date at December 31, 2004. |
Intercompany Law Nº 19,550 Section 33 | ||||||||
FYO |
Agro-Uranga |
Cactus | ||||||
Other Receivables |
Other Receivables |
Other Receivables |
Other Receivables | |||||
Pesos | Pesos | Pesos | Pesos | |||||
Current |
3,537,666 | 23,603 | 234,279 | 1,040,575 |
b. | Accounts Receivable and other receivables to fall due at December 31, 2004 |
Intercompany Law Nº 19,550 Section 33 |
Intercompany Law Nº | |||||||||||
IGSA |
FYO |
Cactus |
Cactus | |||||||||
Trade Accounts Receivable |
Trade Accounts Receivable |
Trade Accounts Receivable |
Trade Accounts Receivable |
Other Receivables |
Other Receivables | |||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | |||||||
03.31.05 |
5,815,017 | 29,195 | 424,147 | 30,261 | 2,411,856 | | ||||||
06.30.05 |
| | | | 283,975 | 313,753 | ||||||
09.30.05 |
| | | | | | ||||||
06.30.06 |
| | | | 99,148 | |
4. | CLASSIFICATION OF OUTSTANDING DEBTS ACCORDING TO THEIR MATURITY |
a. | There are no past due debts at December 31, 2004. |
b. | Debts without a due date at December 31, 2004 amount to Ps. 205,730 current and Ps. 27,491,943 non-current. |
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Additional Information to the Notes to the Unaudited Financial Statements
(Continued)
4. | CLASSIFICATION OF OUTSTANDING DEBTS ACCORDING TO THEIR MATURITY (Continued) |
c. | Debts to fall due at December 31, 2004 |
Accounts Payable |
Intercompany Law Nº 19,550 |
Loans |
Salaries and Social Security Charges |
Tax Payable |
Other Debts |
Intercompany Law Nº 19,550 | ||||||||||
IRSA |
Cactus |
IGSA | ||||||||||||||
Accounts Payable |
Other Debts | |||||||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | |||||||||
03.31.05 |
11,002,617 | 116,259 | 530,217 | 22,353,572 | 444,433 | 160,017 | 4,396,907 | | ||||||||
06.30.05 |
| | | 1,386,025 | | 1,594,461 | 5,506,714 | | ||||||||
09.30.05 |
| | | 14,866,783 | 321,272 | | | | ||||||||
12.31.05 |
| | | | | 2,617,633 | | 1,747,984 | ||||||||
12.31.06 |
| | | | | | | 480,640 | ||||||||
12.31.07 |
| | | 123,285,777 | | | | |
5. | CLASSIFICATION OF OUTSTANDING ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES ACCORDING TO THEIR FINANCIAL EFFECTS |
a.
Intercompany Law Nº 19,550 Section 33 |
Intercompany Law Nº 19,550 Section 33 | |||||||||||||||
IGSA |
FYO |
Cactus |
Cactus |
FYO |
Agro- Uranga | |||||||||||
Trade Accounts Receivable |
Trade Accounts Receivable |
Trade Accounts Receivable |
Trade Accounts Receivable |
Other Receivables |
Other Receivables |
Other Receivables |
Other Receivables | |||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | |||||||||
In pesos |
4,859,029 | 29,195 | 424,147 | 30,261 | 5,044,837 | 1,354,328 | 23,603 | 234,279 | ||||||||
In US Dollars |
955,988 | | | | 1,287,807 | | | |
b. | All accounts receivable and other receivables are not subject to adjustment provisions. |
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Additional Information to the Notes to the Unaudited Financial Statements
(Continued)
c. |
Trade Accounts Receivable |
Intercompany Law Nº 19,550 Section 33 |
Other Receivables |
Intercompany Law Nº 19,550 Section 33 | |||||||||||||
IGSA |
FYO |
Cactus |
Cactus |
FYO |
IRSA | |||||||||||
Trade Accounts Receivables |
Trade Accounts Receivables |
Trade Accounts Receivables |
Other Receivables |
Other Receivables |
Other Receivables | |||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | |||||||||
Outstanding balances accruing interests |
| | | | 1,182,148 | 313,753 | | | ||||||||
Outstanding balances not accruing interests |
5,815,017 | 29,195 | 424,147 | 30,261 | 10,330,823 | 1,040,575 | 23,603 | 234,279 |
6. | CLASSIFICATION OF DEBTS ACCORDING TO THEIR FINANCIAL EFFECTS |
a. |
Accounts Payable |
Intercompany Law Nº 19,550 Section 33 |
Loans |
Salaries and Social Security Charges |
Taxes Payable |
Other Debts |
Intercompany Law Nº 19,550 Section 33 | ||||||||||||
IRSA |
Cactus |
IGSA |
Cactus | |||||||||||||||
Accounts Payable |
Other Debts | |||||||||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | |||||||||||
In pesos |
6.163.089 | 116.259 | 530.217 | 23.645.322 | 765.705 | 31.864.054 | 5.698.715 | 2.228.624 | | |||||||||
In US Dollars |
4.839.528 | | | 138.246.835 | | | 4.204.906 | | 205.730 |
b. | All debts outstanding are not subject to adjustment provisions. |
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Additional Information to the Notes to the Unaudited Financial Statements
(Continued)
c. |
Accounts Pesos |
Intercompany Section 33 |
Loans Pesos |
Salaries and Social Security Charges Pesos |
Taxes Payable Pesos |
Other Debts |
Intercompany Law Nº 19,550 Section 33 | |||||||||||||
IRSA |
Cactus |
Cactus |
IGSA | ||||||||||||||||
Accounts Payable |
Other Debts | ||||||||||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | Pesos | |||||||||||
Outstanding debts accruing Interests |
| | | 161.962.593 | | | | 2.228.624 | |||||||||||
Outstanding debts not accruing interests |
11.002.617 | 116.259 | 530.217 | (70.436 | ) | 765.705 | 31.864.054 | 9.903.621 | 205.730 | |
7. | INTEREST IN OTHER COMPANIES (Law Nº 19,550 Section 33) |
Interests in other companies capital and the number of votes held in those companies governed by Law Nº 19,550 Section 33 are explained in Note 2 to the unaudited consolidated financial statements and intercompany balances as of December 31, 2004 are described in points 4 and 5 above.
8. | RECEIVABLES FROM OR LOANS TO DIRECTORS AND SUPERVISORY COMMITTEE MEMBERS |
At December 31, 2004 there were advance payments to directors for Ps. 2,865, and there were no receivables due from or loans to syndics and relatives up to and including second degree, of directors and syndics.
9. | PHYSICAL INVENTORIES |
The company conducts physical inventories once a year in each property, covering all the assets under such account. There is no relevant immobilization of inventory.
10. | VALUATION OF INVENTORIES |
We further inform the sources for the information used to calculate the current value:
a. Cattle for fattening, valued at the market value net of estimated sale expenses: quotation in the Liniers Livestock Market (Mercado de Hacienda de Liniers).
b. Cattle for raising and daily production valued at its replacement cost: according to specific appraisals made by renowned experts.
c. Crops: official quotation of the Cámara Arbitral de Cereales for the port closest to the warehouse, published by media of wide circulation (La Nación Newspaper) net of estimated sale expenses.
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Additional Information to the Notes to the Unaudited Financial Statements
(Continued)
d. The remaining inventory stated at its replacement cost: seeds, forage and materials: replacement cost published by a well-known magazine (Revista Agromercado).
11. | TECHNICAL REVALUATION OF FIXED ASSETS |
There are no fixed assets subject to technical revaluation.
12. | OBSOLETE FIXED ASSETS |
There are no obsolete fixed assets with accounting value.
13. | MINORITY INTEREST |
There are no minority interests in other companies in excess of the provisions of Law Nº 19,550 Section 33.
14. | RECOVERABLE VALUES |
The recoverable value of the inventory under consideration is the net realizable value (selling price at the end of the year less estimated selling expenses). The recoverable value of fixed assets under consideration is the economic use value determined by the possibility of absorbing the amortizations with the income of the Company.
15. | INSURANCES |
The types of insurance used by the company are the following:
Insured property |
Risk covered |
Amount insured |
Account Value | |||
Pesos | Pesos | |||||
Buildings, machinery, silos and furniture | Theft. fire and technical insurance | 2.792.050 | 7.234.678 | |||
Vehicles | Theft, fire and civil and third parties liability | 1.420.707 | 703.995 |
16. | PROVISIONS |
There are no provisions in excess of 2% of the shareholders equity.
17. | CONTINGENCIES |
At December 31, 2004 there are no contingent situations that have not been accounted for.
18. | IRREVOCABLE CONTRIBUTIONS TO CAPITAL ON ACCOUNT OF FUTURE SUBSCRIPTIONS |
None.
19. | DIVIDENDS ON PREFERED STOCK |
There are no cumulative dividends not paid on preferred stock.
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
Additional Information to the Notes to the Unaudited Financial Statements
(Continued)
20. | LIMITATIONS OF PROFIT DISTRIBUTIONS |
See Note 10 to the Unaudited Financial Statements.
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
UNAUDITED BUSINESS HIGHLIGHTS
Comparative Shareholders Equity Structure
At December 31, 2004 |
At December 31, 2003 |
At December 31, 2002 |
At December 31, 2001 |
At December 31, 2000 | ||||||
Pesos | Pesos | Pesos | Pesos | Pesos | ||||||
Current Assets |
89,091,991 | 69,522,344 | 82,707,765 | 131,390,490 | 160,544,471 | |||||
Non Current Assets |
609,533,419 | 525,729,702 | 497,572,921 | 235,135,415 | 266,777,336 | |||||
Total Assets |
698,625,410 | 595,252,046 | 580,280,686 | 366,525,905 | 427,321,807 | |||||
Current Liabilities |
66,430,672 | 12,520,393 | 27,866,941 | 61,417,713 | 30,154,605 | |||||
Non Current Liabilities |
152,099,365 | 151,890,701 | 193,294,773 | 1,164,992 | 1,370,658 | |||||
Total Liabilities |
218,530,037 | 164,411,094 | 221,161,714 | 62,582,705 | 31,525,263 | |||||
Minority Interest |
5,366 | 104,178 | 318,671 | 347,591 | 126,600 | |||||
Shareholders Equity |
480,090,007 | 430,736,774 | 358,800,301 | 303,595,609 | 395,669,944 | |||||
698,625,410 | 595,252,046 | 580,280,686 | 366,525,905 | 427,321,807 | ||||||
Comparative Income Structure
At December 31, 2004 |
At December 31, 2003 |
At December 31, 2002 |
At December 31, 2001 |
At December 31, 2000 |
|||||||||||
Pesos | Pesos | Pesos | Pesos | Pesos | |||||||||||
Operating income |
7,058,416 | 5,486,663 | 20,659,485 | 1,312,814 | 6,227,497 | ||||||||||
Financial and holding results |
(2,194,831 | ) | 602,205 | (13,012,668 | ) | (83,463,137 | ) | 7,204,226 | |||||||
Other income and expenses and results from related companies |
10,781,030 | 2,359,620 | 39,728,645 | (589,446 | ) | (669,708 | ) | ||||||||
Management fees |
(1,059,305 | ) | (529,129 | ) | (3,419,171 | ) | | (1,104,648 | ) | ||||||
Operating net income (loss) |
14,585,310 | 7,919,359 | 43,956,291 | (82,739,769 | ) | 11,657,367 | |||||||||
Income tax |
(5,111,658 | ) | (3,259,735 | ) | (7,964,246 | ) | | (1,904,747 | ) | ||||||
Minority interest |
60,085 | 102,532 | 112,129 | 186,145 | 189,208 | ||||||||||
Net income (loss) |
9,533,737 | 4,762,156 | 36,104,174 | (82,553,624 | ) | 9,941,828 | |||||||||
Production volume
2Q December 31, 2004 |
Accumulated July 1, 2004 to December 31, 2004 |
2Q December 31, 2003 |
Accumulated July 1, 2003 to December 31, 2003 |
2Q December 31, 2002 |
Accumulated July 1, 2002 to December 31, 2002 |
2Q December 31, 2001 |
Accumulated July 1, 2001 to 2001 |
2Q December 31, 2000 |
Accumulated July 1, 2000 to December 31, 2000 | |||||||||||
Beef Cattle (in Kgs.) |
4,261,029 | 5,987,932 | 3,027,981 | 5,111,038 | 3,253,774 | 5,505,936 | 1,960,698 | 5,249,556 | 4,117,652 | 7,203,006 | ||||||||||
Butyraceous (in Kgs.) |
72,518 | 125,596 | 71,199 | 135,196 | 56,314 | 113,688 | 70,843 | 153,063 | 66,024 | 133,066 | ||||||||||
Crops (in quintals)* |
205,947 | 224,380 | 115,712 | 140,050 | 74,744 | 128,056 | 187,752 | 211,134 | 81,956 | 183,910 | ||||||||||
* | One quintals equals one hundred kilograms |
Saúl Zang |
First Vice-Chairman |
serving as Acting Chairman |
Cresud Sociedad Anónima
Comercial, Inmobiliaria, Financiera y Agropecuaria
UNAUDITED BUSINESS HIGHLIGHTS (Continued)
Sales volume
2Q December 31, 2004 |
Accumulated July 1, 2004 to December 31, 2004 |
2Q December 31, 2003 |
Accumulated July 1, 2003 to December 31, 2003 |
2Q December 31, 2002 |
Accumulated July 1, 2002 to December 31, 2002 |
2Q December 31, 2001 |
Accumulated July 1, 2001 to December 31.2001 |
2Q December 31, 2000 |
Accumulated July 1, 2000 to December 31, 2000 | |||||||||||
Beef Cattle (in Kgs.) |
4,037,087 | 8,952,625 | 3,454,520 | 6,621,506 | 2,250,703 | 4,855,825 | 4,448,217 | 9,531,526 | 4,544,073 | 8,519,132 | ||||||||||
Butyraceous (in Kgs.) |
72,518 | 125,596 | 71,199 | 135,196 | 56,314 | 113,688 | 70,843 | 153,063 | 66,024 | 133,066 | ||||||||||
Crops quintals)* |
125,556 | 319,058 | 113,710 | 236,011 | 338,738 | 711,420 | 80,809 | 506,789 | 506,077 | 1,008,238 | ||||||||||
* | One quintals equals one hundred kilograms |
Local Market
2Q December 31, 2004 |
Accumulated July 1, 2004 to December 31, 2004 |
2Q December 31, 2003 |
Accumulated July 1, 2003 to December 31, 2003 |
2Q December 31, 2002 |
Accumulated July 1, 2002 to December 31, 2002 |
2Q December 31, 2001 |
Accumulated July 1, 2001 to December 31, 2001 |
2Q December 31, 2000 |
Accumulated July 1, 2000 to December 31, 2000 | |||||||||||
Beef Cattle |
4,037,087 | 8,952,625 | 3,454,520 | 6,621,506 | 2,250,703 | 4,855,825 | 4,448,217 | 9,531,526 | 4,544,073 | 8,519,132 | ||||||||||
Butyraceous |
72,518 | 125,596 | 71,199 | 135,196 | 56,314 | 113,688 | 70,843 | 153,063 | 66,024 | 133,066 | ||||||||||
Crops |
125,556 | 319,058 | 113,710 | 236,011 | 338,738 | 711,420 | 80,809 | 506,789 | 506,077 | 1,008,238 | ||||||||||
* | One quintals equals one hundred kilograms |
Exports
2Q December 31, 2004 |
Accumulated July 1, 2004 to December 31, 2004 |
2Q December 31, 2003 |
Accumulated July 1, 2003 to December 31, 2003 |
2Q December 31, 2002 |
Accumulated July 1,2002 to December 31, 2002 |
2Q December 31, 2001 |
Accumulated July 1, 2001 to December 31, 2001 |
2Q December 31, 2000 |
Accumulated July 1, 2000 to December 31, 2000 | |||||||||||
Beef Cattle (in Kgs.) |
| | | | | | | | | | ||||||||||
Butyraceous |
| | | | | | | | | | ||||||||||
Crops |
| | | | | | | | | | ||||||||||
* | One quintals equals one hundred kilograms |
Ratios
At December 31, 2004 |
At December 31, 2003 |
At December 31, 2002 |
At December 31, 2001 |
At December 31, 2000 | |||||||
Pesos | Pesos | Pesos | Pesos | Pesos | |||||||
Liquidity |
1.341 | 5.553 | 2.968 | 2.139 | 5.324 | ||||||
Solvency |
2.197 | 2.620 | 1.622 | 4.851 | 12.551 | ||||||
Fixed of capital |
0.872 | 0.883 | 0.857 | 0.642 | 0.624 | ||||||
Return on Equity |
0.020 | 0.012 | 0.106 | (0.245 | ) | 0.026 |
Saúl Zang |
First Vice-Chairman |
serving as Acting Chairman |
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Unaudited Business Highlight
Buenos Aires, February 10, 2005 - Cresud S.A.C.I.F. y A. (Nasdaq: CRESY BASE: CRES), one of the leading agricultural companies in Argentina, announces today the results corresponding to the first semester of fiscal year 2005 ended on December 31, 2004.
Results for the first semester of Fiscal Year 2005 showed a net profit of Ps. 9.5 million as compared to a Ps. 4.8 million profit registered during the same period of the previous Fiscal Year, denoting a 100.2% increase.
The increase in the net result is mainly a consequence of: (i) the higher results registered in our cattle stock holdings (generated by a stronger market value) which went from Ps. 1.3 million during the same period of fiscal year 2004 to Ps. 6.3 million for the current semester, (ii) and the performance of our share in IRSA Inversiones y Representaciones S. A. (NYSE: IRS) (BASE: IRSA) which went from Ps. 1.8 million for December 2003 to Ps. 14.0 million at December 31, 2004; partly offset by lower results from exchange differences generated by assets and liabilities which decreased from a Ps. 1.9 million profit during the first semester of fiscal year 2004 to a Ps. 1.0 million loss for the current semester.
Consolidated net sales for the period amounted Ps. 35.2 million, 19.9% higher than those registered during the same period of the previous Fiscal Year, mainly due to the higher volume of crops and cattle sold during the semester.
Gross Income during the first six months of FY 2005 amounted to Ps. 6.4 million as compared to Ps. 8.2 million gross profit registered during the same period of the previous year.
This reduction in gross profit is partly a consequence of crops lower prices. At the beginning of the first semester of FY 2004 the company had accumulated agricultural commodities that when appreciated generated profits due to their revalorization. On the contrary, the stocks accumulated at the beginning of the first semester of FY 2005 did not follow during the semester ended on December 31, 2004 similar trends.
On the other hand, milk sales decreased and at slightly lower prices, consequently decreasing the margins for such activity. Besides, the costs of this business unit increased as a result of the expenses incurred in the development of the milking facility located at the El Tigre farm, which does not generate revenues yet.
Operating Income showed for the six-month period ended on December 31, 2004 a Ps. 7.1 million profit, compared to a Ps. 5.5 million profits registered during the same period of the previous fiscal year.
Results from related companies generated a Ps. 14.1 million profit, mainly due to our 26.5% share ownership in IRSA Inversiones y Representaciones S.A.
Saúl Zang First Vice-Chairman serving as Acting Chairman |
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Unaudited Business Highlight (Continued)
Summary of operations
Crops
During the semester crop sales amounted Ps. 11.2 million, compared to Ps. 8.8 million registered during the previous year. Crop volume sold amounted 31,906 tons at an average price of Ps. 352 per ton compared to 23,601 tons sold at an average price of Ps. 373 during the same semester of the previous fiscal year.
The stock of grain as of the closing of the six-month period is 23,392 tons, consisting of 19,815 tons of wheat and 3,046 tons of corn.
Gross loss for the segment for the semester ended on December 31, 2004 amounted Ps. 0.2 million compared to a Ps. 1.6 million profit for the same period of the previous fiscal year. The drop registered in this item is partly consequence of crops lower prices. At the beginning of the first semester of FY 2004 the company had accumulated agricultural commodities that when appreciated generated profits due to their revalorization. On the contrary, the stocks accumulated at the beginning of the first semester of FY 2005 did not follow during the semester ended on December 31, 2004 similar trends.
For the current season we have destined 35,848 hectares to agriculture, of which 16,142 hectares were leased to third parties. As compared to the previous fiscal year we have increased the amount of total hectares destined to agriculture in 13,303 hectares, mainly due to the commencement of operations in El Tigre farm, which increased the companys area under production, and due to the higher amount of hectares leased to third parties.
Most of the leases were agreed with a fix payment prior to harvest and only small percentages were crop-sharing agreements.
The increase in the number of hectares leased from third parties for exploitation by the Company is explained by the fact that after the strong fall in the price of grains, many owners lowered leasehold prices, thus allowing higher potential yields. During the previous season, faced with the increase in land prices, the strategy was not to go along with market prices and lease lands only at those prices which enabled the Company to obtain adequate margins without having to speculate on future commodity prices.
Beef Cattle
As of December 31, 2004, the Companys cattle stock amounted to 99,797 heads (7% higher than at December 31, 2003) with 126,964 hectares destined to this activity.
Saúl Zang First Vice-Chairman serving as Acting Chairman |
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Unaudited Business Highlight (Continued)
Sale of livestock experienced a material increase of 53.6% from Ps. 12.2 million as of December 31, 2003 to Ps. 18.7 million as of December 31, 2004. During the semester a total of 8,953 tons were sold, while during the first six months of Fiscal Year 2004 tons sold amounted to 6,622. The sustained increase which beef cattle prices have been experiencing was also determinant for increasing Companys revenues within this business unit.
Gross profit for the cattle beef segment amounted to Ps. 4.0 million, as compared to Ps. 3.0 million profit registered during the first semester of the previous Fiscal Year. This increase in the gross profit was a consequence both of the increase in the cattle beef sales and of the rise in margins produced by higher market values.
Cattle beef production amounted 5,988 tons, representing a 17% increase compared to the previous fiscal year.
Livestock prices had a favourable evolution during the course of the first semester of Fiscal Year 2005. After the advance of the agriculture business over the cattle beef business, livestock offers experienced sever cuts, therefore helping to push up rising prices of livestock.
Additionally, there are promising perspectives for this market, mostly referring to reductions in commercial barriers worldwide, which would make for a better use of the cattle cuts and a higher final price for the cattle producer. After a year of the appearance of the last foot and mouth disease focus within the country, the country has obtained the free foot and mouth disease status with vaccination on behalf of the Animal Health Organization (OIE), which will grant an additional benefit to seek new markets, such as the US and Canada, were initial correspondence has taken place.
Saúl Zang First Vice-Chairman serving as Acting Chairman |
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Unaudited Business Highlight (Continued)
Furthermore, the export of thermo-processed cattle beef to China was approved, shortly enabling the opening of the commercialization of fresh meat market.
Likewise, the price of livestock in Argentina could result in similar prices to those found in Uruguay (which is actually 26% above local prices) whose evolution after the opening of international markets had a positive outcome. In that sense, and in order to sustain its offer, Uruguay started importing livestock from Argentina, therefore arbitrating cattle markets.
Milk
Milk production fell slightly by 8% during the semester from 3.9 million liters as of December 31, 2003 to 3.5 million liters as of December 31, 2004.
Gross profit at December 31, 2004, amounted Ps. 0.7 million, 52% lower than that registered during the same semester of the previous fiscal year. The main reason for this reduction was the increase of costs in this business unit as a consequence of the expenses incurred in the development of dairy facilities that due to their condition are not generating income yet.
It is worth mentioning that the company is currently developing oversize dairy facilities with state of the art technology in our El Tigre farm. In this sense, once the project is concluded, it would increase the actual productive capacity in approximately 36,000 litters daily. We are forecasting for this business unit yields above those of the agriculture segment. The estimated investment in this project amounts US$ 1.0 million approximately.
Currently the Companys only productive dairy farm is located at La Juanita, where the feeding system is based solely on pastures. This feeding system, of lower cost, allows an enhancement of milk margins as compared to systems based on grains.
The milk business in Argentina went through severe oscillations during the course of time, from the euphoria of 1997 and 1998 to the 2001 crisis. Currently, with firm prices, this segment is once again attractive.
Feed Lot
During the semester, our 170-hectare Feed Lot, located in the province of San Luis, where the Companys equity interest through Cactus Argentina S.A. is 50%, was affected by the seasonality of the business hence decreasing the occupation levels and revenues.
Saúl Zang First Vice-Chairman serving as Acting Chairman |
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Unaudited Business Highlight (Continued)
Due to these facts, income decreased from Ps. 10.7 million at December 31, 2003 to Ps. 5.9 million during the current semester. It is worth mentioning that draughts registered during the first semester of the fiscal year, had a positive effect rising the occupation levels of the feed lot and also reverting the trend generated during this time of the year.
The uniformity obtained in the final product of the feed lot cattle has granted buyers a high quality product, making its commercialization easy and obtaining higher prices at the moment of selling.
Due to the consistent occupation level the Feed Lot has been registering quarter after quarter we plan the development of a second enterprise of similar characteristics, which could be located within Argentina or abroad.
Regarding the above mentioned, during the semester closed December 31, 2004, Cactus Argentina S.A. registered a Ps. 0.1 million loss compared to a Ps. 0.4 million profit registered for the semester ended on December 31, 2003.
Sale of farms
At the end of Fiscal Year 2004 and commencement of Fiscal Year 2005 bills of sale for the farms Ñacurutu (sold after the closing of the semester) and San Enrique were signed which will result in profits for the Company amounting US$ 2.7 million and US$ 4,3 million respectively, thus positively impacting on future financial statements corresponding to the current Fiscal Year. The produce of such operations will suppose a yield close to 100 % in the first case and margin record of approximately 750 % in the second case. These transactions, besides confirming the excellent Companys background regarding such operations, are clear examples of the unrealized value of corporate assets.
Development of marginal lands
We believe that the businesss potential, as has happened in various countries worldwide, relies on the development of marginal land; using state of the art technology, yields comparable to those of the nucleus area can be obtained.
For the current season, to the 12,700 productive hectares destined to cattle in our Los Pozos farm, located in Salta, we have added 4,000 additional hectares, while 1,300 hectares are destined to agriculture.
Besides, clearing works on 6,000 additional hectares for cattle are being performed, and will enter into production next season. Currently, Los Pozos farm shows the highest returns in the cattle business for the Companys and is above the industrys average
Saúl Zang First Vice-Chairman serving as Acting Chairman |
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Unaudited Business Highlight (Continued)
Additionally, the 1,185 hectares already developed in our AgroRiego San Luis farm, located in the province of San Luis, for crop irrigation, will enter into production the current season.
Cresuds land reserves amount to 263,000 hectares which were acquired at very low prices. We believe that with the development of these areas, together with proper technology, the value of land will rise generating interesting returns for the Company.
Internet
Fyo.com, internet site where the Companys equity interest amounts 70%, maintains its position as leading agriculture site and has started to expand the scope of commercial services for the farming community through the direct sale of inputs and crop brokerage.
Currently, Futuros y Opciones.com S.A. has a database of 40,000 users and more than 5,000 farmers entitled to perform deals. Our strategy is focused in commercial services for farmers, using Cresuds expertise and operative capacity in the business, being FyO the link with the client.
During the semester ended on December 31, 2004, Futuros y Opciones.com S.A.s revenues amounted to Ps. 0.5 million, 38% higher than that registered during the same semester of the previous Fiscal Year. The net result for the semester showed a Ps. 0.2 million loss, lower than the Ps. 0.3 million loss registered during Fiscal Year 2004.
Saúl Zang First Vice-Chairman serving as Acting Chairman |
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Unaudited Business Highlight (Continued)
Principal indicators for the six-month period
ended December 31, 2004 and 2003:
6 months as of December 31, 2004 |
6 months as of December 31, 2003 |
% |
|||||||
Sales Volume |
|||||||||
Wheat (tons) |
950 | 2.490 | (62 | %) | |||||
Corn (tons) |
19.959 | 11.472 | 74 | % | |||||
Sunflowers (tons) |
| | 0 | % | |||||
Soybean (tons) |
9.994 | 9.611 | 4 | % | |||||
Others (tons) |
1.002 | 28 | 3479 | % | |||||
Total crops (tons) |
31.906 | 23.601 | 35 | % | |||||
Beef Cattle (tons) |
8.953 | 6.622 | 35 | % | |||||
Milk (Thousand of liters) |
3.525 | 3.851 | (8 | %) | |||||
Production |
|||||||||
Wheat (tons) |
20.595 | 11.571 | 78 | % | |||||
Corn (tons) |
1.765 | | |||||||
Sunflowers (tons) |
| | |||||||
Soybean (tons) |
79 | | |||||||
Beef Cattle (tons) |
5.988 | 5.111 | 17 | % | |||||
Milk (Thousand of liters) |
3.525 | 3.851 | (8 | %) | |||||
Exploited surface (hectares) |
|||||||||
Crops |
Owned Farms | 19.706 | 12.312 | 60 | % | ||||
Leased Farms | 16.142 | 9.755 | 65 | % | |||||
Beef Cattle |
Owned Farms | 126.964 | 126.190 | 1 | % | ||||
Leased Farms | | | |||||||
Dairy |
Owned Farms | 1.583 | 820 | 93 | % | ||||
Land Reserve (hectares) |
263.177 | 266.916 | (1 | %) | |||||
Surface under irrigation |
3.750 | 2.841 | 32 | % | |||||
Storage Capacity (tons) |
12.660 | 18.360 | (31 | %) | |||||
Total head of cattle |
99.797 | 92.954 | 7 | % | |||||
Dairy Farm Stock (heads) |
3.575 | 2.812 | 27 | % | |||||
Milking cows (heads) |
1.406 | 1.190 | 18 | % |
Saúl Zang |
First Vice-Chairman |
serving as Acting Chairman |
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Unaudited Business Highlight (Continued)
Results from IRSA Inversiones y Representaciones S.A.
The result derived from our equity interest in IRSA Inversiones y Representaciones S. A. (NYSE: IRS BASE: IRSA) showed a Ps. 14.0 million profit for the semester compared to a Ps. 1.8 million profit as of December 31, 2003.
IRSAs result was strongly influenced by an increase in the operative result which grew 142.4%, from Ps. 24.5 million for the first six months of Fiscal Year 2004 to Ps. 59.3 million for the same period of the current Fiscal Year, mainly due to the better performance of revenues, which grew 49.3% amounting Ps. 185.2 million compared to the previous Ps. 124.1 million. The following is the share of the different segments in revenues from net consolidated sales: sales and development Ps. 27.5 million, offices and other property for lease Ps. 8.9 million, shopping centers Ps. 103.6 million and hotels Ps. 45.3 million.
IRSA is Argentinas leading real estate company with a totally diversified portfolio of properties. IRSA participates in the following business segments:
| Office rental with more than 85,000 m2 for lease. |
| Operation of Shopping Centers through its 61% equity interest in Alto Palermo S.A. (APSA) (NASDAQ: APSA, BASE: APSA). APSA is one of the leading operators of shopping centers in Argentina and owns or has majority interest in 9 shopping centers with 195,132 m2 of gross leasable area. |
| Sale of residential properties |
| Holding and operation of luxury hotels through its equity interest in 3 five star hotels |
Besides, IRSA owns land reserves for current and future developments valued at Ps. 352.0 million.
IRSAs total Consolidated Assets amount to Ps. 2,346.1 million and its Shareholders Equity amounts Ps. 1,040.6 million.
At December 31, 2004 our ownership in IRSA amounted 26.5% of total shares in circulation. Additionally, we own u$ 45.3 million of convertible bonds issued by IRSA which contain a warrant attached to purchase additional shares of the company. If both the convertible notes and warrants are exercised like the rest of the bearers, Cresud would own 41% of IRSA equity. Currently, our equity interest in IRSA is valued through the proportional equity value method.
Saúl Zang |
First Vice-Chairman |
serving as Acting Chairman |
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Unaudited Business Highlight (Continued)
Other relevant highlights
Reduction of debt due to the conversion of notes and exercise of Warrants
During the semester, Cresuds debt under Convertible Notes was reduced by US$ 1,259,290 as a consequence of the exercise of conversion rights.
Likewise during the semester, 1,251,644 Warrants have been exercised, resulting in an inflow of US$ 1.5 million in the Company
In this way, considering all conversions and exercise of warrants, the number of outstanding Convertible Notes as of today has reached US$ 41,723,863 while the number of outstanding Warrants amounts to 42,164,361. Shares issued amounted 31,728,541, increasing the Companys total number of outstanding shares to 156,012,933.
It should be noted that since the Company holds Convertible Bonds issued by IRSA for a total 45.3 million, which bear interest at the same rate as those issued by us, funds to be collected from our holding in IRSA exceeds from those required to cover payment of our Convertible Notes.
The following graphics show past, actual and potential situation in the future of the Convertible Notes issued by Cresud on November 14, 2002, under New York Law, at an interest rate of 8% (paid semi-annually), due to November 14, 2007, which are convertible at a price of US$ 0.5078 per share of face value Ps. 1.00 (1.9693 shares of face value Ps. 1.00 per Note). Additionally, each Convertible Note holds a warrant which allows the holder to obtain for each Convertible Note 1.9693 shares, of face value Ps. 1.00, at a price of US$ 0.6093.
Notes:
| 1 ADR represents 10 common shares |
| Assuming Conversion (Fully Diluted) refers to the situation where all the holders of the Convertible Notes convert those securities into shares and where all the Warrants are exercised. |
Saúl Zang |
First Vice-Chairman |
serving as Acting Chairman |
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Unaudited Business Highlight (Continued)
Financial Structure
During the current semester, the Company has developed an external financing strategy of its working capital for the productive season, at convenient rates and terms through export pre financing, which allows us to develop new business units optimising risks and acquiring the necessary liquidity to take advantage of investment opportunities that could arise.
Hence, at December 31, 2004 current loans with local financial entities amounted Ps. 37.2 million, enabling the development of new productive projects and generating a more efficient capital structure for the Company.
Distribution of dividends
On November 17, 2004, and pursuant to the Ordinary and Extraordinary Shareholders Meeting held on October 22, 2004, cash dividends for a total amount of Ps. 3.0 million or Ps. 0.01983007 per common share of nominal value 1 each (Ps. 0.1983007 per ADR) were at shareholders availability.
Perspectives for the coming quarter
Perspectives for the upcoming quarter are highly promising with firm livestock prices, hence we are expecting an increase in our profits from this business unit. Additionally, the opening of new international markets could continue impacting positively on this business unit.
Besides, there are promising perspectives on the evolution of corn yields for the coming quarter, which are already above our budget. Notwithstanding the foregoing, price perspectives are conservative due to promising productive seasons in the U.S. and South America.
Regarding our investment in the dairy farm project, its opening will occur promptly. At the commencement, it will have 600 milking cows and will reach 2,000 heads within 18 months.
Saúl Zang |
First Vice-Chairman |
serving as Acting Chairman |
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
Unaudited Business Highlight (Continued)
According to our development of new agriculture project strategy, we will maintain evaluating different investment alternatives, which could be accomplished during the current fiscal period.
Saúl Zang |
First Vice-Chairman |
serving as Acting Chairman |
Free translation from the original prepared in Spanish for publication in Argentina
Report of Independent Auditors
To the Shareholders, President and Board of Directors of
Cresud Sociedad Anónima Comercial,
Inmobiliaria, Financiera y Agropecuaria
1. | We have reviewed the balance sheets of Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria at December 31, 2004 and 2003, and the related statements of income, of changes in shareholders equity and of cash flows for the six-month periods ended December 31, 2004 and 2003 and the complementary notes 1 to 16 and schedules A, C, E, F, G and H. Furthermore, we have reviewed the consolidated financial statements of Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria, which are presented as complementary information. These financial statements are the responsibility of the Companys management. |
2. | We conducted our review in accordance with standards established by Technical Resolution N° 7 of the Argentine Federation of Professional Councils of Economic Sciences for limited reviews of financial statements. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters, It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. |
3. | Based on our work and our examinations of the financial statements of this Company and the consolidated financial statements for the years ended June 30, 2004 and 2003, on which we issued our unqualified report dated September 7, 2004, we report that: |
a) | The financial statements of Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria at December 31, 2004 and 2003 and its consolidated financial statements at those dates, set out in point 1, prepared in accordance with accounting standards prevailing in the Autonomous City of Buenos Aires, include all significant facts and circumstances of which we are aware, and we have no observations to make on them. |
b) | The comparative information included in the basic and consolidated balance sheets and the suplementary notes and schedules to the attached financial statements arise from Company financial statements at June 30, 2004. |
4. | In accordance with current regulations, we report that: |
a) | the financial statements of Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria and its consolidated financial statements have been transcribed to the Inventory and Balance Sheet Book and comply, within the field of our competence, with the Corporations Law and pertinent resolutions of the National Securities Commission; |
b) | the financial statements of Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria arise from official accounting records carried in all formal respects in accordance with legal requirements; that maintain the security and integrity conditions based on which they were authorized by the National Securities Commission; |
c) | we have read the business highlights and the additional information to the notes to the financial statements required by section 68 of the Buenos Aires Stock Exchange Regulations, on which, as regards those matters that are within our competence, we have no observations to make; |
d) | At December 31, 2004, the debt accrued of Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria accrued in favor of the Integrated Pension and Survivors Benefit System according to the accounting records amounted to $ 108.211,60 which is not yet due. |
Autonomus City of Buenos Aires, February 10, 2005
PRICE WATERHOUSE & CO. S.R.L. |
(Partner) |
C.P.C.E.C.A.B.A. Tº 1 Fº 1 |
Dr. Andrés Suarez |
Public Accountant (UBA) |
C.P.C.E. Ciudad Autónoma de Buenos Aires |
Tomo 245 - Folio 61 |
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Buenos Aires, Argentina.
CRESUD SOCIEDAD ANONIMA COMERCIAL INMOBILIARIA
FINANCIERA Y AGROPECUARIA
By: | /S/ Saúl Zang | |||
Name: |
Saúl Zang | |||
Title: |
Vice Chairman of the Board of Directors |
Dated: February 18, 2005