Edgar Filing: CRESUD INC

form6k.htm

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 December, 2014

Cresud Sociedad Anónima, Comercial, Inmobiliaria,

Financiera y Agropecuaria

(Exact name of Registrant as specified in its charter)

Cresud Inc.

(Translation of registrant´s name into English)

Republic of Argentina

(Jurisdiction of incorporation or organization)

Moreno 877

(C1091AAQ)

Buenos Aires, Argentina

(Address of principal executive offices)

Form 20-F x Form 40-F o

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 o No x

CRESUD S.A.C.I.F y A.

(THE “COMPANY”)

REPORT ON FORM 6-K

Attached is an English translation of the Financial Startements for the three-month period ended on September 30, 2014 and on September 30, 2013 filed by the Company with the Comisión Nacional de Valores and the Bolsa de Comercio de Buenos Aires:

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2014 and for the three-month periods ended September 30, 2014 and 2013

Legal Information

Denomination: Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria

Fiscal year N°: 82, beginning on July 1, 2014

Legal address: Moreno 877, 23rd floor – Ciudad Autónoma de Buenos Aires, Argentina

Company activity: Real state, agricultural, commercial and financial activities

Date of registration of the By-laws in the Public Registry of Commerce: February 19, 1937

Date of registration of last amendment of the by-laws in the Public Registry of Commerce: February 25, 2013

Expiration of Company charter: June 6, 2082

Common Stock subscribed, issued and paid up: 501,562,730 common shares.

Majority shareholder’s: Inversiones Financieras del Sur S.A.

Legal address: Road 8, km 17,500, Zonamérica Building 1, store 106, Montevideo, Uruguay

Parent company Activity: Investment

Capital stock: 190,681,047 common shares

	CAPITAL STATUS
Type of stock	Authorized to be offered publicly (Shares)		Subscribed, Issued and Paid-in (Ps.)
Ordinary certified shares of Ps. 1 face value and 1 vote each		501,562,730		501,562,730

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Financial Position

as of September 30, 2014 and June 30, 2014

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note		September 30, 2014			June 30, 2014
ASSETS
Non-current assets
Investment properties		10		3,472,951			3,454,616
Property, plant and equipment		11		2,354,029			2,381,956
Trading properties		12		127,183			132,555
Intangible assets		13		174,209			175,007
Biological assets		14		410,112			444,853
Investments in associates and joint ventures		8, 9		2,533,950			2,375,339
Deferred income tax assets		26		925,401			852,642
Income tax credit				162,852			177,547
Restricted assets		17		45,262			50,897
Trade and other receivables		18		428,104			475,349
Investment in financial assets		19		375,918			275,012
Derivative financial instruments		20		11,714			233
Total non-current assets				11,021,685			10,796,006
Current Assets
Trading properties		12		4,204			4,596
Biological assets		14		137,209			195,830
Inventories		15		423,136			439,771
Restricted assets		17		8,742			-
Income tax credit				27,131			19,694
Assets held for sale				-			1,357,866
Trade and other receivables		18		1,539,611			1,438,408
Investment in financial assets		19		481,236			495,633
Derivative financial instruments		20		21,689			32,897
Cash and cash equivalents		21		1,481,752			1,002,987
Total current assets				4,124,710			4,987,682
TOTAL ASSETS				15,146,395			15,783,688
SHAREHOLDERS’ EQUITY
Capital and reserves attributable to equity holders of the parent
Share capital				487,929			490,997
Treasury stock				13,634			10,566
Inflation adjustment of share capital				63,647			64,047
Inflation adjustment of treasury stock				1,778			1,378
Share premium				773,079			773,079
Cost of treasury stock				(87,074	)		(54,876	)
Share warrants				106,264			106,264
Changes in non-controlling interest				13,606			(15,429	)
Cumulative translation adjustment				625,232			633,607
Equity-settled compensation				82,097			70,028
Legal reserve				81,616			81,616
Reserve for new developments				17,065			17,065
Special reserve				633,940			633,940
Reserve for the acquisition of securities issued by the company				200,000			200,000
Retained earnings				(1,188,433	)		(1,066,428	)
Equity attributable to equity holders of the parent				1,824,380			1,945,854
Non-controlling interest				2,593,976			2,488,932
TOTAL SHAREHOLDERS’ EQUITY				4,418,356			4,434,786

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.


				Eduardo S. Elsztain President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Financial Position

as of September 30, 2014 and June 30, 2014 (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note		September 30, 2014		June 30, 2014
LIABILITIES
Non-current liabilities
Trade and other payables		22		228,321		216,760
Income tax liabilities				59,109		-
Borrowings		25		5,552,827		5,315,335
Deferred income tax liabilities		26		468,033		470,045
Derivative financial instruments		20		344,551		320,847
Payroll and social security liabilities		23		6,773		5,041
Provisions		24		261,740		220,489
Total non-current liabilities				6,921,354		6,548,517
Current liabilities
Trade and other payables		22		1,028,939		1,004,180
Income tax liabilities				179,453		73,429
Payroll and social security liabilities		23		126,739		202,546
Borrowings		25		2,425,373		2,639,491
Derivative financial instruments		20		25,111		53,419
Provisions		24		21,070		20,708
Liabilities held for sale				-		806,612
Total current liabilities				3,806,685		4,800,385
TOTAL LIABILITIES				10,728,039		11,348,902
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES				15,146,395		15,783,688

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.


				Eduardo S. Elsztain President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Income

for the three-month periods ended September 30, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note		September 30, 2014			September 30, 2013
Revenues		28		1,523,980			1,126,122
Costs		29		(1,252,370	)		(885,868	)
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest				282,227			126,252
Changes in the net realizable value of agricultural produce after harvest				(22,021	)		(8,012	)
Gross profit				531,816			358,494
Gain from disposal of investment properties				316,767			-
General and administrative expenses		30		(139,351	)		(111,654	)
Selling expenses		30		(122,306	)		(81,001	)
Other operating results		32		9,367			(4,190	)
Profit from operations				596,293			161,649
Share of (loss) / profit of associates and joint ventures		8, 9		(102,728	)		38,366
Profit from operations before financing and taxation				493,565			200,015
Finance income		33		55,418			73,492
Finance cost		33		(497,685	)		(459,509	)
Other financial results		33		101,449			51,605
Financial results, net		33		(340,818	)		(334,412	)
Profit / (loss) before income tax				152,747			(134,397	)
Income tax expense		26		(131,082	)		45,382
Profit / (loss) for the period				21,665			(89,015	)

Attributable to:
Equity holders of the parent				(122,005	)		(97,849	)
Non-controlling interest				143,670			8,834

Loss per share attributable to equity holders of the parent during the period:
Basic				(0.25	)		(0.20	)
Diluted			(i) (0.25)			(i) (0.20)

(i)

Due to the loss for the period, there is no diluted effect on this result.

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.


				Eduardo S. Elsztain President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Comprehensive Income

for the three-month periods ended September 30, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for the publication in Argentina

	September 30, 2014			September 30, 2013
Profit / (loss) for the period		21,665			(89,015	)
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Currency translation adjustment		(84,292	)		144,156
Currency translation adjustment from associates and joint ventures		30,334			(855	)
Other comprehensive (loss) / income for the period (i)		(53,958	)		143,301
Total comprehensive (loss) / income for the period		(32,293	)		54,286

Attributable to:
Equity holders of the parent		(130,380	)		(26,259	)
Non-controlling interest		98,087			80,545

(i)

Components of other comprehensive income have no impact on income tax.

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.


				Eduardo S. Elsztain President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity

for the three-month periods ended September 30, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Share Capital			Treasury Stock		Inflation adjustment of Share Capital			Inflation adjustment of Treasury Stock		Share premium		Cost of Treasury Stock			Share warrants		Subtotal			Changes in non-controlling interests			Cumulative translation adjustment			Equity-settled compensation		Legal reserve		Reserve for new developments		Special reserve (1)		Reserve for the acquisition of securities issued by the company		Retained earnings			Subtotal			Non-controlling interest			Total shareholders’ equity
Balance as of July 1, 2014		490,997			10,566		64,047			1,378		773,079		(54,876	)		106,264		1,391,455			(15,429	)		633,607			70,028		81,616		17,065		633,940		200,000		(1,066,428	)		1,945,854			2,488,932			4,434,786
(Loss) / income for the period		-			-		-			-		-		-			-		-			-			-			-		-		-		-		-		(122,005	)		(122,005	)		143,670			21,665
Other comprehensive income for the period		-			-		-			-		-		-			-		-			-			(8,375	)		-		-		-		-		-		-			(8,375	)		(45,583	)		(53,958	)
Total comprehensive (loss) / income for the period		-			-		-			-		-		-			-		-			-			(8,375	)		-		-		-		-		-		(122,005	)		(130,380	)		98,087			(32,293	)
Equity-settled compensation		-			-		-			-		-		-			-		-			-			-			12,069		-		-		-		-		-			12,069			3,660			15,729
Purchase of Treasury stock		(3,068	)		3,068		(400	)		400		-		(32,198	)		-		(32,198	)		-			-			-		-		-		-		-		-			(32,198	)		-			(32,198	)
Changes in non- controlling interest		-			-		-			-		-		-			-		-			29,035			-			-		-		-		-		-		-			29,035			7,578			36,613
Cash dividends		-			-		-			-		-		-			-		-			-			-			-		-		-		-		-		-			-			(772	)		(772	)
Capital contribution of non-controlling interest		-			-		-			-		-		-			-		-			-			-			-		-		-		-		-		-			-			275			275
Capital reduction		-			-		-			-		-		-			-		-			-			-			-		-		-		-		-		-			-			(3,784	)		(3,784	)
Balance as of September 30, 2014		487,929			13,634		63,647			1,778		773,079		(87,074	)		106,264		1,359,257			13,606			625,232			82,097		81,616		17,065		633,940		200,000		(1,188,433	)		1,824,380			2,593,976			4,418,356

(1)	Related to CNV General Resolution No. 609/12. See Note 27.

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.


				Eduardo S. Elsztain President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity

for the three-month periods ended September 30, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Share Capital		Treasury Stock		Inflation adjustment of Share Capital		Inflation adjustment of Treasury Stock		Share premium		Share warrants		Subtotal		Changes in non-controlling interests			Cumulative translation adjustment		Equity- settled compensation			Legal reserve		Reserve for new developments		Special reserve (1)		Retained earnings			Subtotal			Non-controlling interest			Total shareholders’ equity
Balances as of 1 July, 2013		496,562		5,001		64,773		652		773,079		106,264		1,446,331		(21,996	)		2,284		8,345			46,835		337,065		695,628		(26,522	)		2,487,970			2,231,096			4,719,066
(Loss) / income for the period		-		-		-		-		-		-		-		-			-		-					-		-		(97,849	)		(97,849	)		8,834			(89,015	)
Other comprehensive income for the period		-		-		-		-		-		-		-		-			71,590		-			-		-		-		-			71,590			71,711			143,301
Total comprehensive income / (loss) for the period		-		-		-		-		-		-		-		-			71,590		-			-		-		-		(97,849	)		(26,259	)		80,545			54,286
Equity-settled compensation		-		-		-		-		-		-		-		-			-		5,860			-		-		-		-			5,860			2,638			8,498
Changes in non-controlling interest		-		-		-		-		-		-		-		(208	)		-		-			-		-		-		-			(208	)		(2,995	)		(3,203	)
Cancellation of Brasilagro warrants		-		-		-		-		-		-		-		-			-		(288	)		-		-		-		-			(288	)		-			(288	)
Cash dividends		-		-		-		-		-		-		-		-			-		-			-		-		-		-			-			(509	)		(509	)
Capital contribution of non-controlling interest		-		-		-		-		-		-		-		-			-		-			-		-		-		-			-			347			347
Capital distribution		-		-		-		-		-		-		-		-			-		-			-		-		-		-			-			(712	)		(712	)
Balances as of 30 September, 2013		496,562		5,001		64,773		652		773,079		106,264		1,446,331		(22,204	)		73,874		13,917			46,835		337,065		695,628		(124,371	)		2,467,075			2,310,410			4,777,485

(1)	Related to CNV General Resolution No. 609/12. See Note 27.

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.


				Eduardo S. Elsztain President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Consolidated Statements of Cash Flows

for the three-month periods ended September 30, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note		September 30, 2014			September 30, 2013
Operating activities:
Cash generated from operations		21		381,238			420,589
Income tax paid				(54,448	)		(48,778	)
Net cash generated from operating activities				326,790			371,811
Investing activities:
Acquisition of associates and joint ventures				(268,975	)		(13,259	)
Capital contributions to associates and joint ventures				(52,479	)		(1,220	)
Acquisition of derivative financial instruments				-			(2,000	)
Suppliers advances				-			(13,120	)
Purchases of investment properties				(62,414	)		(71,698	)
Proceeds from sale of subsidiaries				19,139			274
Proceeds from sale of investment properties				1,507,067			119,000
Purchases of property, plant and equipment				(67,404	)		(29,858	)
Proceeds from sale of property, plant and equipment				92			650
Proceeds from sale of farmlands				23,693			15,504
Purchases of intangible assets				(1,889	)		(281	)
Acquisition of Investment in financial assets				(1,423,566	)		(915,896	)
Proceeds from disposals of Investment in financial assets				1,471,551			380,089
Loans granted to associates and joint ventures				49			(14,280	)
Loans repayments received from associates and joint ventures				1,694			445
Proceeds from sale of joint ventures				-			7,736
Interest received from financial assets				2,286			-
Dividends received				3,081			15,878
Net cash generated from (used in) investing activities				1,151,925			(522,036	)
Financing activities:
Purchase of treasury stock				(32,198	)		(3,478	)
Proceeds from issuance of non-convertible notes				455,038			-
Payment of non-convertible notes				(538,081	)		(151,538	)
Borrowings				442,551			248,760
Payment of trust debt titles				(9,733	)		-
Payment of seller financing of shares				(105,861	)		(1,640	)
Repayments of borrowings				(351,733	)		(215,887	)
Payments of borrowings from associates and joint ventures				-			(186	)
Proceeds from borrowings from associates and joint ventures				13,009			2,000
Cancellation of liabilities held for sale				(603,021	)		-
Cancellation of Brasilagro warrants				-			(288	)
Payment of seller financing				(690	)		(438	)
Acquisition of non-controlling interest in subsidiaries				(1,094	)		-
Dividend paid to non-controlling interest				(14,640	)		(5,790	)
Payments of derivative financial instruments				(63,514	)		-
Proceeds from derivative financial instruments				131			-
Capital reduction				(3,784	)		(712	)
Sale of equity in subsidiaries to non-controlling interest				55,314			-
Capital contributions of non-controlling interest				275			347
Interest paid				(260,343	)		(174,249	)
Net cash used in financing activities				(1,018,374	)		(303,099	)
Net increase / (decrease) in cash and cash equivalents				460,341			(453,324	)
Cash and cash equivalents at beginning of period		21		1,002,987			1,047,586
Foreign exchange gain on cash and cash equivalents				18,424			40,497
Cash and cash equivalents at end of period				1,481,752			634,759

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.


				Eduardo S. Elsztain President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

1.	General information

1.1	The Group’s business and general information

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (“Cresud” or the “Company”) was founded in 1936 as a subsidiary of Credit Foncier, a Belgian company primarily engaged in providing rural and urban loans in Argentina and administering real estate holdings foreclosed by Credit Foncier. Credit Foncier was liquidated in 1959, and as part of such liquidation, the shares of Cresud were distributed to Credit Foncier’s shareholders. From the 1960s through the end of the 1970s, the business of Cresud shifted exclusively to agricultural activities.

In 2002, Cresud acquired a 19.85% interest in IRSA Inversiones y Representaciones Sociedad Anónima (“IRSA”), a real estate company related to certain shareholders of Cresud. In 2009, Cresud increased its ownership percentage in IRSA to 55.64% and IRSA became Cresud’s principal subsidiary.

Cresud and its subsidiaries are collectively referred to hereinafter as the Group. See Note 2.3 to the Consolidated Financial Statements as of June 30, 2014 and 2013 for a description of the Group’s companies.

As of September 30, 2014, the Group operates in two major lines of business: (i) Agricultural business, (ii) Urban Properties and Investments business. See Note 7 to the Unaudited Condensed Interim Consolidated Financial Statements as of June 30, 2014 and 2013 for a description of the Group’s segments.

The Group’s Agricultural business operations are comprised of crop production, cattle feeding, raising and fattening, milk production, sugarcane production and brokerage activities. Fattening is carried out in specialized feedlots that provide accommodation, health care and animal feeding services based on specialized diets. The Group currently has agricultural operations and investments in Argentina, Brazil, Uruguay, Paraguay and Bolivia.

The Urban Properties and Investments business operations are conducted primarily through IRSA and IRSA’s principal subsidiary, Alto Palermo S.A. (“APSA”). Through APSA and IRSA, the Group owns, manages and develops shopping centers across Argentina, a portfolio of office and other rental properties in the Autonomous City of Buenos Aires, capital of Argentina, and since 2009 it entered into the US real estate market, mainly through the acquisition of non-controlling interests in office buildings and hotels. Through IRSA or APSA, the Group also develops residential properties for sale. The Group, through IRSA, is also involved in the operation of branded hotels. The Group uses the term “real estate” indistinctively in these condensed interim consolidated financial statements to denote investment, development and/or trading properties activities.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

1.	General information (Continued)

During fiscal year 2014, the Group made an investment in the Israeli market, through Dolphin, in IDB Development Corporation (IDBD) -an Israeli company-, with an initial interest of 26.65%. As of September 30, 2014, the equity interest in IDBD amounts to a non-diluted 28.99% and a fully-diluted 31.37%. IDBD is one of the Israeli biggest and most diversified investment groups, which is involved, through its subsidiaries, in several markets and industry, including real estate, retail, agribusiness, insurance, telecommunications, etc.; controlling companies as: Clal Insurance (Insurance Company), Cellcom (Mobile phone services), Adama (Agrochemicals), Super-Sol (supermarket), PBC (Real Estate), among others. IDBD went public in Tel Aviv Exchange in May, 2014.

The activities of the Group’s segment “Financial operations and others” is carried out mainly through Banco Hipotecario S.A. (“BHSA”), where it has a 29.77% interest (without considering treasury shares). BHSA is a commercial bank offering a wide variety of banking activities and related financial services to individuals, small, medium-sized and large corporations, including the provision of mortgaged loans. BHSA’s shares are listed on the Buenos Aires Stock Exchange. Additionally, the Group has a 42.95% interest in Tarshop S.A (“Tarshop”) whose main business comprises credit cards activities and the provision of loans.

Cresud’s and APSA’s shares are listed and traded on both the Buenos Aires Stock Exchange (“BCBA”) and the National Association of Securities Dealers Automated Quotation (“NASDAQ”). IRSA´s shares are listed and traded on both the BCBA and the New York Stock Exchange (“NYSE”).

Cresud is the ultimate parent company and is a corporation incorporated and domiciled in the Republic of Argentina. The address of its registered office is Moreno 877, 23rd Floor, Buenos Aires, Argentina.

These consolidated financial statements have been approved for issue by the Board of Directors on November 11, 2014.

2.	Basis of preparation of the Unaudited Condensed Interim Consolidated Financial Statements

2.1.	Basis of preparation

The present Unaudited Condensed Interim Consolidated Financial Statements for the three-month periods ended September 30, 2014 and 2013 (the “Unaudited Condensed Interim Consolidated Financial Statements”) have been prepared in accordance with IAS 34 “Interim Financial Reporting”.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation of the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

These Unaudited Condensed Interim Consolidated Financial Statements should be read together with the annual consolidated financial statements of the Company as of June 30, 2014. These Unaudited Condensed Interim Consolidated Financial Statements are expressed in thousands of Argentine Pesos.

The Condensed Interim Consolidated Financial Statements corresponding to the three-month periods ended as of September 30, 2014 and 2013 have not been audited. The Company´s management believes they include all necessary adjustments to fairly present the results of each period. Results for the three-month periods ended September 30, 2014 and 2013 do not necessarily reflect proportionally the Company’s results for the complete fiscal years.

2.2	Accounting Policies

The accounting policies applied in the preparation of these Unaudited Condensed Interim Consolidated Financial Statements are consistent with those applied in the preparation of the information under IFRS as of June 30, 2014. Most significant accounting policies are described in note 2 included in the Consolidated Financial Statements as of June 30, 2014 and 2013.

2.3	Use of estimates

The preparation of financial statements at a certain date requires the Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual results might differ from the estimates and evaluations made at the date of preparation of these financial statements.

In the preparation of these Unaudited Condensed Interim Consolidated Financial Statements, the significant judgments made by Management in applying the Group’s accounting policies and the main sources of uncertainty were the same applied by the Group in the preparation of the annual consolidated financial statements for the year ended as of June 30, 2014, save for changes in accrued income tax, provision for legal claims and allowance for doubtful accounts.

2.4	Comparative information

Amounts as of September 30, 2013 and June 30, 2014, which are disclosed for comparative purposes have been taken from the Consolidated Financial Statements as of such dates. The financial statements originally issued have been subject to certain reclassifications required in order to present these figures comparatively with this period.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation of the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

During the period beginning on September 30, 2013 and ended September 30, 2014, the Argentine Peso devalued against the US$ and other currencies by around 45.5%, which has an impact in comparative information presented in these Financial Statements, due mainly to the currency exposure of our income and costs of Agricultural Business and of income from urban property and investments business line, especially from the “office and other rental properties” segment, and our net assets and liabilities in foreign currency as detailed in Note 39.

3.	Seasonal effects on operations

The operations of the Group’s agricultural business are also subject to seasonal effects. The harvests and sale of grains (corn, soybean and sunflower) generally take place between February and June every year. Wheat is generally harvested between November and January. In Bolivia, weather conditions make it possible to have two soybeans, corn and barley seasons and, therefore, these crops are harvested in April and October, whereas wheat and sunflower are harvested in August and September, respectively. Other segments of the agricultural business, such as beef cattle and milk production tend to be more stable. However, beef cattle and milk production is generally larger during the second quarter, when conditions are more favorable. In case of sugar cane, harvest and sale take place between May and November of each year. As a result, there may be material fluctuations in the agricultural business results across quarters.

The operations of the Group’s shopping centers are also subject to seasonal effects, which affect the level of sales recorded by lessees. During summer time (January and February), the lessees of shopping centers experience the lowest sales levels in comparison with the winter holidays (July) and year-end celebrations (December) when they tend to record peaks of sales. Apparel stores generally change their collections during the spring and the fall, which impacts positively on shopping mall sales. Sale discounts at the end of each season also impact the business. As a consequence, a higher level of revenues is generally expected in the second half of the year rather than the first in shopping center operations.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

4.	Acquisitions and disposals

For the three-month period ended as of September 30, 2014

Investment in IDBD

On July 1°, 2014 Dolphin Netherlands B.V. exercised the rights to purchase additional shares of IDBD.

As a result of exercising the granted rights as mentioned above, DN B.V. received 17.32 million shares and 11.99 million warrants of Series 1, 2 and 3. ETH received the same amount of rights and, as a result, acquired the same amount of shares and warrants as DN B.V. Additionally, upon exercising the rights purchased, DN B.V. acquired 5.79 million shares and 4.01 million warrants of Series 1, 2, and 3. ETH also acquired the same amount of shares and warrants as DN B.V.

Between July 9 and July 14, 2014, DN B.V. acquired 0.42 million shares and 0.34 million warrants (series 2) through open market operations in the amount of NIS 1.77 million (equal to approximately US$ 0.52 million). Fifty percent of such shares and warrants Series 2 were sold to ETH in accordance with the terms and conditions of the agreement entered into between the parties, as indicated above.

As of September 30, 2014, DN B.V. held an aggregate amount of 76,620,163 shares, 15,998,787 warrants Series 1, 16,170,392 warrants Series 2 and 15,998,787 warrants Series 3 of IDBD, which make up a non-diluted equity interest of 28.99% in IDBD and a fully-diluted interest of 31.37%. IDBD’s Board of Directors consists of nine members, three of whom have been designated by DN B.V., Eduardo Elsztain, Alejandro Elsztain and Saúl Zang.

Sale of investment properties

On July 7, 2014, IRSA signed the transfer deed for the sale of the 19th and 20th floors of the Building Maipú 1300. The total price of the transaction was Ps. 24.7 (US$ 3.0 million). Such transaction generated a profit before tax of approximately Ps. 21.0 million.

On September 29, 2014, the Group finalized the sale of the Madison 183 Building through the subsidiary Rigby 183 LLC (“Rigby 183”), in the city of New York, United States, in the sum of US$ 185 million, thus discharging the mortgage levied on the asset in the amount of US$ 75 million.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

4.	Acquisitions and disposals (Continued)

Decreased shareholding in Avenida Inc.

Even though on July 18, 2014, the Group – through Torodur S.A. - had increased its share in Avenida Inc. by exercising the warrant held, the Group’s indirect holding was reduced to 23.01% as a result of the acquisition of 35.12% interest in the Company by a new investor in the amount of Ps.120.9 million (US$ 15 million).

Moreover, on September 2, 2014, Torodur S.A. sold 1,430,000 shares representing 5% of the Company’s capital stock in the amount of Ps. 19.1 million (US$ 2.3 million), thus reducing the Group’s indirect share to 17.68%.

Disposal of financial assets

During August 2014, IRSA has sold through its subsidiary REIG IV the balance of 1 million shares in Hersha Hospitality Trust, at an average price of US$ 6.74 per share.

Transactions with non-controlling interests

IRSA

During the three-month period ended September 30, 2014, the Group sold a 0.59% interest in IRSA for a total amount of Ps. 55.31 million. This resulted in an increase in non-controlling interests of Ps. 11.88 million and an increase in equity attributable to owners of the parent of Ps. 25.8 million, net of tax effect. The effect of changes in the ownership interest of IRSA on the equity attributable to owners of the Group is summarized as follows:

	Ps. (million)
Carrying amount of the non-controlling interests sold by the Group	(11.9)
Consideration collected	55.3
Tax effect	(17.6)
Reserve recorded in within parent’s equity	25.8

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

4.	Acquisitions and disposals (Continued)

APSA

During the three-month period ended September 30, 2014, the Group, through IRSA, acquired an additional 0.02% interest in APSA for a total consideration of Ps. 1.1 million. This resulted in a decrease in non-controlling interests of Ps. 0.2 million and a decrease in equity attributable to the owners of the parent of Ps. 0.9 million. The effect of changes in the ownership interest of APSA on the equity attributable to owners of the Group is summarized as follows:

	Ps. (million)
Carrying amount of group’s interest acquired of	157
Consideration paid for non-controlling interests	(1,094)
Reserve recorded in within parent’s equity	(937)

Sale of Cresca farmland

On April 3, 2014, Cresca S.A. signed a bill of sale whereby it sells an area of 24,624 hectares located in Chaco Paraguayo. The total price is US$ 14.7 million, which amount shall be collectable as follows US$ 1.8 million were collected upon execution of the bill of sale, US$ 4.3 million upon execution of the conveyance deed; US$ 3.7 million interest-free in July, 2015; US$ 4.9 million interest-free in July, 2016. Possession was delivered upon execution of the conveyance deed of title and constitution of a mortgage to secure payment of the balance, on July 14, 2014.

Dolphin

During the period, the Group’s interest in Dolphin decreased from 86.16 % to 85.92 %. Consequently, the Company recognized a decrease in non-controlling interest for an amount of Ps. 5.9 million and an increase in equity attributable to holders of the parent.

5.	Financial risk management

The group´s diverse activities are exposed to a variety of financial risk: market risk (including foreign currency risk, interest rate risk and price risk) credit risk, liquidity risk and capital risk.

The Unaudited Condensed Interim Consolidated Financial Statements do not include all the information and disclosures of the risk management, so they should be read together with the annual consolidate financial statements as of June 30, 2014. There have been no changes in the risk management or risk management policies applied by the Group since the fiscal year-end.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

5.	Financial risk management (Continued)

Since June 30, 2014, to the balance sheet date, there have been no significant changes in business or economic circumstances affecting the fair value of the Company's financial assets or liabilities (either measured at fair value or amortized cost). Neither have been transfers between the several tiers used in estimating the fair value of the Company’s financial instruments.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

Segment information

Below is a summarized analysis of the lines of business of the Group for the three-month period ended September 30, 2014:

	Agricultural business (I)			Urban properties and investments business (II)			Total
Revenues		770,868			799,575			1,570,443
Costs		(931,947	)		(361,167	)		(1,293,114	)
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest		283,992			-			283,992
Changes in the net realizable value of agricultural produce after harvest		(22,021	)		-			(22,021	)
Gross profit		100,892			438,408			539,300
Gain from disposal of investment properties		-			316,767			316,767
Gain from disposal of farmlands		16,363			-			16,363
General and administrative expenses		(61,084	)		(80,287	)		(141,371	)
Selling expenses		(86,883	)		(38,052	)		(124,935	)
Other operating results		6,546			2,948			9,494
(Loss) / Profit from operations		(24,166	)		639,784			615,618
Share of loss of associates and joint ventures		(1,160	)		(117,236	)		(118,396	)
Segment (Loss) / Profit		(25,326	)		522,548			497,222

Investment properties		213,881			3,558,491			3,772,372
Property, plant and equipment		2,112,418			243,605			2,356,023
Trading properties		-			137,276			137,276
Goodwill		9,792			24,784			34,576
Rights to receive future units under barter agreements		-			85,077			85,077
Biological assets		554,047			-			554,047
Inventories		411,015			18,429			429,444
Investments in associates and joint ventures		31,352			2,166,887			2,198,239
Total segment assets		3,332,505			6,234,549			9,567,054

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

Below is a summarized analysis of the lines of business of the Group for the three-month period ended September 30, 2013:

	Agricultural business (I)			Urban properties and investments business (II)			Total
Revenues		517,128			639,526			1,156,654
Costs		(603,326	)		(308,559	)		(911,885	)
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest		126,604			-			126,604
Changes in the net realizable value of agricultural produce after harvest		(8,012	)		-			(8,012	)
Gross Profit		32,394			330,967			363,361
General and administrative expenses		(53,651	)		(59,145	)		(112,796	)
Selling expenses		(50,417	)		(31,853	)		(82,270	)
Other operating results		5,206			(10,006	)		(4,800	)
(Loss) / Profit from operations		(66,468	)		229,963			163,495
Share of profit of associates and joint ventures		2			34,356			34,358
Segment (Loss) / Profit		(66,466	)		264,319			197,853

Investment properties		24,150			4,360,536			4,384,686
Property, plant and equipment		1,778,459			229,373			2,007,832
Trading properties		-			121,203			121,203
Goodwill		6,872			79,691			86,563
Rights to receive future units under barter agreements		-			93,225			93,225
Biological assets		371,554			-			371,554
Inventories		230,024			15,362			245,386
Investments in associates and joint ventures		27,893			1,217,520			1,245,413
Total segment assets		2,438,952			6,116,910			8,555,862

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

(I)

Agriculture line of business:

The following tables present the reportable segments of the agriculture line of business of the Group:

	September 30, 2014
	Agriculture
	Crops			Cattle			Dairy			Sugarcane			Agricultural Rental and services			Agricultural Subtotal			Land Transformation and Sales			Agro-industrial			Other segments			Total Agricultural business (i)
Revenues		330,404			62,348			17,467			100,181			4,794			515,194			-			215,927			39,747			770,868
Costs		(438,166	)		(82,743	)		(32,836	)		(151,158	)		(5,210	)		(710,113	)		(2,666	)		(188,820	)		(30,348	)		(931,947	)
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest		167,270			29,177			17,211			70,334			-			283,992			-			-			-			283,992
Changes in the net realizable value of agricultural produce after harvest		(22,021	)		-			-			-			-			(22,021	)		-			-			-			(22,021	)
Gross Profit / (Loss)		37,487			8,782			1,842			19,357			(416	)		67,052			(2,666	)		27,107			9,399			100,892
Gain from disposal of farmlands		-			-			-			-			-			-			16,363			-			-			16,363
General and administrative expenses		(31,556	)		(5,907	)		(1,077	)		(13,111	)		(478	)		(52,129	)		(244	)		(5,846	)		(2,865	)		(61,084	)
Selling expenses		(50,414	)		(7,134	)		(671	)		(4,644	)		(187	)		(63,050	)		(1,326	)		(19,368	)		(3,139	)		(86,883	)
Other operating results		4,914			(465	)		(85	)		39			(38	)		4,365			(19	)		73			2,127			6,546
(Loss) / Profit from Operations		(39,569	)		(4,724	)		9			1,641			(1,119	)		(43,762	)		12,108			1,966			5,522			(24,166	)
Share of loss of associates		(1,018	)		(1	)		-			-			-			(1,019	)		-			-			(141	)		(1,160	)
Segment (Loss) / Profit		(40,587	)		(4,725	)		9			1,641			(1,119	)		(44,781	)		12,108			1,966			5,381			(25,326	)

Investment properties		164,417			10,495			-			-			38,969			213,881			-			-			-			213,881
Property, plant and equipment		1,454,877			140,130			20,404			377,382			1,064			1,993,857			54,893			17,158			46,510			2,112,418
Goodwill		6,317			-			-			2,832			-			9,149			-			-			643			9,792
Biological assets		110,240			293,066			37,567			113,174			-			554,047			-			-			-			554,047
Inventories		224,474			62,008			705			2,182			-			289,369			-			29,084			92,562			411,015
Investments in associates		28,666			19			-			-			-			28,685			-			-			2,667			31,352
Total segment assets		1,988,991			505,718			58,676			495,570			40,033			3,088,988			54,893			46,242			142,382			3,332,505

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

	September 30, 2013
	Agriculture
	Crops			Cattle			Dairy			Sugarcane			Agricultural Rental and services			Agricultural Subtotal			Land Transformation and Sales			Agro-industrial			Other segments			Total Agricultural business (i)
Revenues		271,079			31,401			11,763			66,735			2,124			383,102			-			108,909			25,117			517,128
Costs		(295,301	)		(56,388	)		(22,895	)		(107,124	)		(2,573	)		(484,281	)		(1,763	)		(96,951	)		(20,331	)		(603,326	)
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest		63,658			10,860			11,482			40,604			-			126,604			-			-			-			126,604
Changes in the net realizable value of agricultural produce after harvest		(8,012	)		-			-			-			-			(8,012	)		-			-			-			(8,012	)
Gross Profit / (Loss)		31,424			(14,127	)		350			215			(449	)		17,413			(1,763	)		11,958			4,786			32,394
General and administrative expenses		(28,192	)		(7,486	)		(1,577	)		(10,720	)		(715	)		(48,690	)		(310	)		(3,417	)		(1,234	)		(53,651	)
Selling expenses		(32,296	)		(4,163	)		(438	)		(339	)		(137	)		(37,373	)		(147	)		(10,454	)		(2,443	)		(50,417	)
Other operating results		5,583			(851	)		(178	)		-			(81	)		4,473			(35	)		(924	)		1,692			5,206
(Loss) / Profit from Operations		(23,481	)		(26,627	)		(1,843	)		(10,844	)		(1,382	)		(64,177	)		(2,255	)		(2,837	)		2,801			(66,468	)
Share of (loss) / profit of associates		(37	)		-			-			-			-			(37	)		-			-			39			2
Segment (Loss) / Profit		(23,518	)		(26,627	)		(1,843	)		(10,844	)		(1,382	)		(64,214	)		(2,255	)		(2,837	)		2,840			(66,466	)

Investment properties		-			-			-			-			24,150			24,150			-			-			-			24,150
Property, plant and equipment		1,189,688			139,824			21,262			324,994			481			1,676,249			57,684			20,006			24,520			1,778,459
Goodwill		4,745			-			-			2,127			-			6,872			-			-			-			6,872
Biological assets		67,694			186,806			27,935			86,059			-			368,494			-			442			2,618			371,554
Inventories		93,388			18,204			339			1,354			-			113,285			-			13,635			103,104			230,024
Investments in associates		25,488			-			-			-			-			25,488			-			-			2,405			27,893
Total segment assets		1,381,003			344,834			49,536			414,534			24,631			2,214,538			57,684			34,083			132,647			2,438,952

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

(II)

Urban properties and investments

The following tables present the reportable segments of the Urban Properties and Investments line of business of the Group:

	September 30, 2014
	Shopping Center Properties			Offices and others			Sales and developments			Hotels			International			Financial operations and others			Total Urban Properties and Investment business (II)
Revenues		568,916			100,842			4,804			96,827			28,131			55			799,575
Costs		(250,711	)		(30,786	)		(3,576	)		(66,488	)		(9,379	)		(227	)		(361,167	)
Gross Profit / (Loss)		318,205			70,056			1,228			30,339			18,752			(172	)		438,408
Gain from disposal of investment properties		-			-			20,258			-			296,509			-			316,767
General and administrative expenses		(25,938	)		(11,289	)		(10,070	)		(17,289	)		(15,701	)		-			(80,287	)
Selling expenses		(18,939	)		(3,981	)		(1,922	)		(13,092	)		-			(118	)		(38,052	)
Other operating results		(2,874	)		(1,397	)		(756	)		(335	)		(249	)		8,559			2,948
Profit / (Loss) from Operations		270,454			53,389			8,738			(377	)		299,311			8,269			639,784
Share of profit / (loss) of associates and joint ventures		-			4,619			1,296			345			(183,674	)		60,178			(117,236	)
Segment Profit / (Loss)		270,454			58,008			10,034			(32	)		115,637			68,447			522,548

Investment properties		2,270,452			847,481			433,249			-			-			7,309			3,558,491
Property, plant and equipment		26,836			36,327			3,840			175,149			1,453			-			243,605
Trading properties		1,484			-			135,792			-			-			-			137,276
Goodwill		8,582			11,661			4,541			-			-			-			24,784
Rights to receive future units under barter agreements		9,264			-			75,813			-			-			-			85,077
Assets held for sale		-			-			-			-			-			-			-
Inventories		12,100			-			618			5,711			-			-			18,429
Share of profit of associates and joint ventures		-			27,868			39,585			22,474			763,443			1,313,517			2,166,887
Total segment assets		2,328,718			923,337			693,438			203,334			764,896			1,320,826			6,234,549

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

6.	Segment information (Continued)

	September 30, 2013
	Shopping Center Properties			Offices and others			Sales and developments			Hotels			International			Financial operations and others			Total Urban Properties and Investment business (II)
Revenues		456,357			74,637			16,060			72,927			19,361			184			639,526
Costs		(205,768	)		(29,181	)		(11,871	)		(49,745	)		(11,745	)		(249	)		(308,559	)
Gross Profit / (Loss)		250,589			45,456			4,189			23,182			7,616			(65	)		330,967
Gain from disposal of investment properties		-			-			-			-			-			-			-
General and administrative expenses		(25,210	)		(8,161	)		(7,325	)		(14,071	)		(4,323	)		(55	)		(59,145	)
Selling expenses		(14,044	)		(6,968	)		(2,532	)		(8,706	)		-			397			(31,853	)
Other operating results		(5,882	)		(664	)		(1,147	)		(106	)		(135	)		(2,072	)		(10,006	)
Profit / (Loss) from Operations		205,453			29,663			(6,815	)		299			3,158			(1,795	)		229,963
Share of profit / (loss) of associates and joint ventures		-			1,173			632			129			(23,437	)		55,859			34,356
Segment Profit / (Loss)		205,453			30,836			(6,183	)		428			(20,279	)		54,064			264,319

Investment properties		2,200,121			919,375			438,909			-			794,211			7,920			4,360,536
Property, plant and equipment		18,723			28,825			4,010			177,611			204			-			229,373
Trading properties		1,484			99			119,620			-			-			-			121,203
Goodwill		8,582			11,661			4,540			-			54,908			-			79,691
Rights to receive future units under barter agreements		9,264						83,961												93,225
Inventories		8,102			-			508			6,752			-			-			15,362
Share of profit of associates and joint ventures		-			25,268			33,391			21,468			974			1,136,419			1,217,520
Total segment assets		2,246,276			985,228			684,939			205,831			850,297			1,144,339			6,116,910

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

Segment information (Continued)

At the time of assessing the performance of business segments and deciding upon the allocation of resources, the Executive Committee uses information on operating income assets and liabilities of each such segment In the Unaudited Condensed Consolidated Financial Statements, the transactions and balances between related parties which may affect more than one segment are eliminated. In order to obtain clear information that may be useful for Management’s decision making, the Group has defined that, as from the three-month period ending September 30, 2014, such transactions will not be eliminated for segment reporting purposes.

The comparative information presented as from such period has been adjusted retrospectively for the sake of comparability.

The following tables present a reconciliation between the total results of segment operations and the results of operations as per the income statements. The adjustments relate to the presentation of the results of operations of joint ventures accounted for under the equity method under IFRS and the non-elimination of the inter-segment transactions as explained in the preceding paragraph.

	September 30, 2014
	Total segment information			Adjustment for share of profit / (loss) of joint ventures			Adjustment to income for elimination of inter-segment transactions			Total Income statements
Revenues		1,570,443			(12,452	)		(34,011	)		1,523,980
Costs		(1,293,114	)		11,765			28,979			(1,252,370	)
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest		283,992			(1,765	)		-			282,227
Changes in the net realizable value of agricultural produce after harvest		(22,021	)		-			-			(22,021	)
Gross Profit / (Loss)		539,300			(2,452	)		(5,032	)		531,816
Gain from disposal of investment properties		316,767			-			-			316,767
Gain from disposal of farmlands		16,363			(20,957	)		4,594			-
General and administrative expenses		(141,371	)		1,350			670			(139,351	)
Selling expenses		(124,935	)		2,521			108			(122,306	)
Other operating results		9,494			213			(340	)		9,367
Profit / (Loss) from operations		615,618			(19,325	)		-			596,293
Share of (loss) / profit of associates and joint ventures		(118,396	)		15,668			-			(102,728	)
Profit / (Loss) from Operations before Financing and Taxation		497,222			(3,657	)		-			493,565

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

Segment information (Continued)

	September 30, 2013
	Total segment information			Adjustment for share of profit / (loss) of joint ventures			Adjustment to income for elimination of inter-segment transactions			Total Income statements
Revenues		1,156,654			(18,582	)		(11,950	)		1,126,122
Costs		(911,885	)		14,315			11,702			(885,868	)
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest		126,604			(352	)		-			126,252
Changes in the net realizable value of agricultural produce after harvest		(8,012	)		-			-			(8,012	)
Gross Profit / (Loss)		363,361			(4,619	)		(248	)		358,494
General and administrative expenses		(112,796	)		695			447			(111,654	)
Selling expenses		(82,270	)		1,237			32			(81,001	)
Other operating results		(4,800	)		841			(231	)		(4,190	)
Profit / (Loss) from operations		163,495			(1,846	)		-			161,649
Share of profit of associates and joint ventures		34,358			4,008			-			38,366
Profit from operations before Financing and Taxation		197,853			2,162			-			200,015

Total segment assets are allocated based on the operations of the segment and the physical location of the asset. According to the analysis above, segment assets include the proportionate share of the assets of joint ventures. The statement of financial position under IFRS shows the net investment in these joint ventures as a single item.

Total reportable segments’ assets are reconciled to total assets as per the statement of financial position as follows:

	September 30, 2014			September 30, 2013
Total reportable assets as per Segment Information		9,567,054			8,555,862
Deconsolidation of investment properties		(299,421	)		(138,517	)
Deconsolidation of property, plant and equipment		(1,994	)		(72,248	)
Deconsolidation of trading properties		(5,889	)		(11,484	)
Deconsolidation of goodwill		(5,221	)		(5,234	)
Deconsolidation of biological assets		(6,726	)		(1,585	)
Deconsolidation of inventories		(6,308	)		(3,549	)
Deconsolidation of investments in associates and joint ventures		335,711			308,136
Total assets as per the Statement of Financial Position		9,577,206			8,631,381

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

Information about principal subsidiaries

The Group conducts its business through several operating and holding subsidiaries. See breakdown of Group, their percentage of ownership interest, materiality criteria and other relevant information on the Group’s subsidiaries in Note 2.3.a) of the Consolidated Financial Statements as of June 30, 2014 and 2013.

Set out below is the summarized financial information for each subsidiary that has non-controlling interests that are material to the Group:

Summarized statements of financial position

	IRSA		Brasilagro
	September 30, 2014	June 30, 2014	September 30, 2014	June 30, 2014
Assets
Non-current assets	7,349,645	6,851,085	1,966,540	2,049,257
Current assets	2,253,462	2,959,021	652,128	879,255
Total assets	9,603,107	9,810,106	2,618,668	2,928,512
Liabilities
Non-current liabilities	4,799,458	4,513,239	202,580	239,790
Current liabilities	2,060,732	2,419,424	479,212	655,174
Total liabilities	6,860,190	6,932,663	681,792	894,964
Net assets	2,742,917	2,877,443	1,936,876	2,033,548

Summarized income statements and statements of comprehensive income

	IRSA		Brasilagro
	September 30, 2014	September 30, 2013	September 30, 2014	September 30, 2013
Revenues	790,069	621,447	185,037	93,474
Profit / (Loss) before income tax	312,130	48,216	20,697	(12,592)
Income tax expense	(176,331)	(12,948)	(7,090)	2,656
Profit / (Loss) for the period	135,799	35,268	13,607	(9,936)
Other comprehensive income / (loss)	45,063	23,293	(110,580)	96,476
Total other comprehensive income / (loss)	180,862	58,561	(96,973)	86,540
Profit / (Loss) attributable to non-controlling interest	140,948	(11,268)	-	-

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

7.	Information about principal subsidiaries (Continued)

Summarized cash flows

	IRSA						Brasilagro
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
Cash flow from operating activities
Net cash generated from operating activities		299,032			203,441			3,342			104,398
Cash flow from investing activities
Net cash generated from (used in) investing activities		1,059,872			(493,797	)		(104,463	)		(12,324	)
Cash flow from financing activities
Net cash used in financing activities		(711,352	)		(246,189	)		(111,210	)		(18,872	)
Net increase (decrease) in cash and cash equivalents		647,552			(536,545	)		(212,331	)		73,202
Cash and cash equivalents at beginning of period / year		609,907			796,902			320,349			197,113
Foreign exchange (loss) / gain on cash and cash equivalents		(11,963	)		20,831			(9,271	)		18,015
Cash and cash equivalents at end of period / year		1,245,496			281,188			98,747			288,330

The information above is the corresponding to balances and transactions before inter-company eliminations.

8.	Interests in joint ventures

As of June 30, 2014 the joint ventures of the Group were Cresca, Cyrsa S.A., Puerto Retiro S.A., Baicom Networks S.A., Quality Invest S.A., Nuevo Puerto Santa Fe S.A. (NPSF), Entertainment Holdings S.A. and ENUSA (indirectly through investment in EHSA). The shares in these joint ventures are not publicly traded.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

8.	Interests in joint ventures (Continued)

Changes in the Group’s investments in joint ventures for the three-month period ended September 30, 2014 and for the year ended June 30, 2014 were as follows:

	September 30, 2014	June 30, 2014
Beginning of the period / year	395,243	324,194
Capital contribution	51,008	43,583
Capital reduction	(110,860)	-
Dividends distribution (i)	(4,475)	-
Share of profit	20,287	15,742
Currency translation adjustment	12,331	11,724
End of the period / year (ii)	363,534	395,243

(i)

During the three-month period ended September 30, 2014, the Group cashed dividends from Nuevo Puerto Santa Fe in the amount of Ps. 2.6 million and from Cyrsa in the amount of Ps. 1.9 million.

(ii)

Includes a balance of Ps. (41) and Ps. (59) reflecting interests in companies with negative equity as of September 30, 2014 and June 30, 2014, respectively, which is reclassified to “Provision”. See Note 24.

9.	Interests in associates

As of June 30, 2014, the associates of the Group were New Lipstick LLC, IDBD, BHSA, Tarshop S.A., Manibil S.A., Lipstick Management LLC, Banco de Crédito and Securitización S.A. ("BACS"), Bitania 26 S.A., Agrouranga S.A., Agromanagers S.A. and Avenida Inc.

The evolution of the Group’s investments in associates for the three-month period ended September 30, 2014 and for the year ended June 30, 2014 was as follows:

	September 30, 2014	June 30, 2014
Beginning of the period / year	1,803,114	1,123,577
Acquisition of associates	268,975	1,131,806
Capital contribution	1,471	16,716
Share of (loss) / profit	(1,151)	92,568
Currency translation adjustment	18,003	(29,133)
Dividends distribution (i)	(4,714)	(15,459)
Acquisition of non-controlling interest	(10,381)	-
Unrealized gain from investments at fair value	(121,864)	(516,961)
End of the period / year (ii)	1,953,453	1,803,114

(i)

As of September 30, 2014, the Group cashed dividends from Agro-Uranga S.A., Manibil and BHSA in the amount of Ps. 0.5 million, Ps. 0.8 million and Ps. 9.2 million, respectively. During the year ended on 2014, the Group cash dividends from Agro-Uranga S.A., Manibil and BHSA in the amount of Ps. 5.5 million, Ps. 9.2 million and Ps. 0.8 million, respectively.

(ii)

Includes a balance of Ps. (216,922) and Ps. (176,923) reflecting interests in companies with negative equity as of September 30, 2014 and June 30, 2014, respectively, which is reclassified to “Provisions” (see Note 24).

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

9.	Interests in associates (Continued)

Restrictions, commitments and other matters related to associates

IDBD

As part of the purchase agreement, DN B.V. and ETH have agreed to participate jointly and severally in capital increases resolved by the Board of Directors of IDBD to carry out their business plan during 2014 and 2015, in amounts of at least NIS 300 million in 2014 and NIS 500 million in 2015 (approximately equal to US$ 81.45 million and US$ 135.8 million at the exchange rate prevailing on September 30, 2014). On the balance sheet date, DN B.V. and ETH have contributed an amount of NIS 407.08 million of assumed commitments.

Furthermore, under the purchase agreement, DN B.V. and ETH have agreed jointly and severally to make one or more tender offers for the purchase of shares in IDBD for an aggregate amount of NIS 512.09 million (equal to approximately US$ 139.0 million at the exchange rate prevailing on September 30, 2014), based on the following scheme: (i) before December 31, 2015, an amount of at least NIS 249.8 million at a share price of NIS 8.344 (subject to adjustments) and (ii) before December 31, 2016 in the amount of at least NIS 512.09 million less the tender offer conducted in 2015, at a share price of NIS 8.7612 (subject to adjustments). To secure compliance with the tender offers, an aggregate amount of 28,020,191 shares of IDBD held by DN B.V. were pledged upon closing the transaction. On the balance sheet date, no tender offers had been made.

On the other hand, the purchase agreement provides that DN B.V. and ETH shall jointly and severally pay to creditors who participate in the restructuring arrangement indicated above the additional sum of NIS 100 million (equal approximately to US$ 27.1 million at the exchange rate prevailing on September 30, 2014), in the event that IDBD executes the sale of its equity interest in the subsidiary Clal Insurance Enterprises Holdings Ltd. before December 31, 2014 and provided that: (i) the sale price shall not be lower than NIS 4,200 million (equal to approximately US$ 1,140.4 million at the exchange rate prevailing on September 30, 2014) and (ii) the transaction is closed before June 30, 2015, provided that IDBD has received by the latter date a payment of at least NIS 1,344 million (gross) (equal to approximately US$ 364.9 million at the exchange rate prevailing on September 30, 2014). As of the date of issuance of these financial statements, any of the conditions previously mentioned have been fulfilled.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

9.	Interests in associates (Continued)

On May 12, 2014, shares of IDBD started to trade in the Tel Aviv Stock Exchange, Israel; as a result, all of the shares (including pledged shares) were held in trust at Bank Leumi Le-Israel to secure compliance with lock-up provisions of Chapter D of the Tel Aviv Stock Exchange Rules, whereby shares listed under an IPO (initial public offering) may not be freely disposed of for a term of 18 months, which are then released at a rate of 2.5% per month beginning on the fourth month of the IPO date.

Hence, in accordance with Tel Aviv Rules applicable to September 30, 2014, 51,095,676 shares and 335,715 warrants of each of the Series 1, 2 and 3 were still subject to lock-up provisions under the terms described above.

BHSA

On October 31, 2014 the Bank was notified of Ruling 685 dated October 29, 2014 issued by the Superintendency of Financial Entities and Exchange Offices in proceedings conducted pursuant to Financial Investigation Case Number 1320, whereby the Bank and its officers were charged with alleged infringements to rulings on assistance to Non-Financial Public Sector, excess credit risk exposure to non-financial public sector, excess collateralization, failure to comply with minimum capital requirements and objections to the accounting treatment afforded to the transaction “Cer Swap Linked to PG08 and External Debt”; and moreover, delays in communicating the appointment of new members of the board and to file documentation related to new members of the board designated by the Shareholders’ Meetings.

Such a ruling assessed a fine in the amount of Ps. 4.04 million to Banco Hipotecario S.A. and fines of diverse amounts to incumbent and former members of the Board, statutory auditors and managers.

The Bank, its incumbent and former directors, statutory auditors and managers intend to file an appeal against such decision with the National Court of Appeals in Administrative Litigation Matters.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

10.	Investment properties

Changes in the Group’s investment properties for the three-month period ended September 30, 2014 and for the year ended June 30, 2014 were as follows:

	Shopping Center Properties			Office buildings and other rental properties portfolio			Undeveloped parcels of land			Leased out farmland			Properties under development			Total
Year ended June 30, 2014
Opening net book amount		1,890,531			1,630,509			421,240			42,998			186,123			4,171,401
Additions		61,108			23,988			454			7,069			156,927			249,546
Reclassification to available for sale		-			(1,098,990	)		-			-			-			(1,098,990	)
Reclassification to property, plant and equipment		-			(12,231	)		-			(3,657	)		-			(15,888	)
Reclassifications of trading properties		-			251			1,550			-			(803	)		998
Capitalized borrowing costs		-			-			-			-			22,376			22,376
Disposals		(35	)		(51,457	)		-			(1,080	)		(766	)		(53,338	)
Depreciation charge (i)		(134,325	)		(68,529	)		-			(2,134	)		-			(204,988	)
Currency translation adjustment		-			375,261			-			8,238			-			383,499
Transfers		(25,332	)		27,056			(1,724	)		-			-			-
Closing net book amount		1,791,947			825,858			421,520			51,434			363,857			3,454,616
At June 30, 2014
Cost		3,166,103			1,077,824			421,520			51,434			363,857			5,080,738
Accumulated depreciation		(1,374,156	)		(251,966	)		-			-			-			(1,626,122	)
Net book amount		1,791,947			825,858			421,520			51,434			363,857			3,454,616
Period ended September 30, 2014
Opening net book amount		1,791,947			825,858			421,520			51,434			363,857			3,454,616
Additions		8,451			2,113			-			148			51,702			62,414
Reclassification of property, plant and equipment		-			-			9,820			-			-			9,820
Reclassification to property, plant and equipment		-			-			-			(5,021	)		-			(5,021	)
Disposals		-			(3,599	)		-			(8	)		-			(3,607	)
Depreciation charge (i)		(28,564	)		(9,124	)		-			(94	)		-			(37,782	)
Currency translation adjustment		-			-			-			(7,489	)		-			(7,489	)
Closing net book amount		1,771,834			815,248			431,340			38,970			415,559			3,472,951
At September 30, 2014
Cost		3,040,229			1,010,336			431,340			38,970			415,559			4,936,434
Accumulated depreciation		(1,268,395	)		(195,088	)		-			-			-			(1,463,483	)
Net book amount		1,771,834			815,248			431,340			38,970			415,559			3,472,951

(i)	Depreciation charge of investment property has been charged in “Costs” in the income statements (Note 30).

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

10.	Investment properties (Continued)

The following amounts have been recognized in the income statements:

	September 30, 2014	September 30, 2013
Rental and service income	689,599	546,152
Direct operating expenses	286,818	(245,217)
Gain from disposal of investment properties	316,767	-

Properties under development mainly comprise works in Shopping Neuquén S.A. (Alto Comahue) and Arcos del Gourmet S.A. (Distrito Arcos). As of September 30, 2014 and June 30, 2014 works in Alto Comahue amount to Ps. 177.9 million and Ps. 126.8 million, respectively. Works in Distrito Arcos as of September 30, 2014 and June 30, 2014 amount to Ps. 237.2 million and Ps. 236.2 million, respectively.

As of September 30, 2014 contractual obligations mainly correspond to constructions regarding to both projects. In Alto Comahue contractual obligations amount to Ps. 205 million and the Project is expected to be completed in March, 2015. In respect of Distrito Arcos, on December 10, 2013, the Judicial Branch confirmed an injunction order that suspends the opening of the shopping center on the grounds that it does not have certain governmental permits. Even though the construction has all regulatory permits in place, the Company is carrying out specific actions, has challenged the ruling, and has requested that the injunction be lifted and has reasonable expectations of a favorable result. On April 1, 2014 the Government of the City of Buenos Aires granted a new environmental clearing certificate.

On the other hand, in one of the two judicial processes (amparos – actions intended to protect constitutional rights) currently being heard, “Charlon, Marcelo Alejandro and others VS. GCBA on/ Amparo”, the Court of Appeals referred above confirmed the decision rendered by the lower court whereby the action was abated, as per notice served upon us on September 1, 2014. This means the process has concluded with the decision being favorable to us.

As to the other process entitled “Federación de Comercio e Industria de la Ciudad de Buenos Aires (FECOBA) and others vs. GCBA on/ Amparo”, on August 29, 2014 the lower court rendered a decision rejecting the case.

This judgment was appealed and following the corresponding service of notices between the parties, the record of proceedings was submitted to the Court of Appeals in September 2014. Following the corresponding notification of the Court’s Prosecutor, the record of proceedings was docketed for a decision on October 8, 2014. No decision has yet been rendered by the Court as of the balance sheet date.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

11.	Property, plant and equipment

Changes in the Group’s property, plant and equipment for the three-month period ended September 30, 2014 and for the year ended June 30, 2014 were as follows:

	Owner occupied farmland			Hotel buildings and facilities			Other buildings and facilities			Furniture and fixtures			Machinery and equipment			Vehicles			Total
Year ended June 30, 2014
Opening net book amount		1,538,708			180,348			57,239			7,178			52,961			5,020			1,841,454
Currency translation adjustment		518,869			-			3,363			1,238			13,751			240			537,461
Additions		96,785			9,980			4,633			3,953			15,581			3,247			134,179
Reclassifications to investment properties		3,657			-			12,231			-			-			-			15,888
Reclassifications to intangibles assets		-			-			(30	)		-			-			-			(30	)
Disposals		(56,763	)		(24	)		(133	)		(7	)		(2,589	)		(497	)		(60,013	)
Depreciation charge (i)		(44,062	)		(14,559	)		(10,559	)		(1,524	)		(14,519	)		(1,760	)		(86,983	)
Closing net book amount		2,057,194			175,745			66,744			10,838			65,185			6,250			2,381,956
At June 30, 2014
Cost		2,261,176			402,647			141,704			25,144			191,561			12,578			3,034,810
Accumulated depreciation		(203,982	)		(226,902	)		(74,960	)		(14,306	)		(126,376	)		(6,328	)		(652,854	)
Net book amount		2,057,194			175,745			66,744			10,838			65,185			6,250			2,381,956
Period ended September 30, 2014
Opening net book amount		2,057,194			175,745			66,744			10,838			65,185			6,250			2,381,956
Currency translation adjustment		(62,437	)		-			(624	)		(137	)		(2,258	)		19			(65,437	)
Additions		53,426			3,201			963			1,551			6,141			2,923			68,205
Reclassifications of investment properties		5,021			-			-			-			-			-			5,021
Reclassifications to investment properties		(9,820	)		-			-			-			-			-			(9,820	)
Disposals		(380	)		-			(307	)		(157	)		(39	)		(49	)		(932	)
Depreciation charge (i)		(14,812	)		(3,797	)		(1,137	)		(518	)		(4,179	)		(521	)		(24,964	)
Closing net book amount		2,028,192			175,149			65,639			11,577			64,850			8,622			2,354,029
As of September 30, 2014
Cost		2,283,210			391,289			136,126			25,771			194,115			15,383			3,045,894
Accumulated depreciation		(255,018	)		(216,140	)		(70,487	)		(14,194	)		(129,265	)		(6,761	)		(691,865	)
Net book amount		2,028,192			175,149			65,639			11,577			64,850			8,622			2,354,029

(i)

For the three-month period ended as of September 30, 2014, depreciation charges of property, plant and equipment were included as follows: Ps. 2,334 under the line item “General and administrative expenses”, Ps. 308 under the line item “Selling expenses” and Ps. 22,322 under the line item “Cost” in the income statements. For the fiscal year ended June 30, 2014, depreciation charges of property, plant and equipment were included as follows: Ps. 9,973 under the line item “General and administrative expenses”, Ps. 1,808 under the line item “Selling expenses” and Ps. 285,138 under the line item “Cost” in the income statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

12.

Trading properties

Changes the Group’s trading property for the three-month period ended September 30, 2014 and for the year ended June 30, 2014 were as follows:

	Completed properties			Properties under development			Undeveloped sites			Total
At June 30, 2013		8,659			88,879			11,979			109,517
Additions		1,400			2,694			-			4,094
Currency translation adjustment		-			27,630			-			27,630
Reclassifications of investment properties and intangible assets		7,897			-			(747	)		7,150
Disposals		(11,225	)		(15	)		-			(11,240	)
At June 30, 2014		6,731			119,188			11,232			137,151
Additions		-			56			-			56
Currency translation adjustment		-			(4,787	)		-			(4,787	)
Disposals		(1,033	)		-			-			(1,033	)
At September 30, 2014		5,698			114,457			11,232			131,387

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

13.	Intangible assets

Changes in the Group’s intangible assets for the three-month period ended September 30, 2014 and for the year ended June 30, 2014 was as follows:

	Goodwill			Computer software			Rights of use			Units to be received			Others			Contracts			Total
Year ended June 30, 2014
Opening net book amount		77,052			8,189			39,939			93,225			132			-			218,537
Currency translation adjustment		29,352			2,955			-			-			-			-			32,307
Additions		658			2,947			-			-			10,954			-			14,559
Disposals		-			(245	)		-			-			-			-			(245	)
Reclassifications to trading properties		-			-			-			(8,148	)		-			-			(8,148	)
Reclassification to assets held for sale		(77,085	)		-			-			-			-			-			(77,085	)
Reclassification of Property, plant and equipment		-			30			-			-			-			-			30
Amortization charge (i) (Note 30)		-			(4,116	)		(752	)		-			(80	)		-			(4,948	)
Closing net book amount		29,977			9,760			39,187			85,077			11,006			-			175,007
At June 30, 2014
Cost		29,977			36,680			40,691			85,077			11,861			-			204,286
Accumulated amortization		-			(26,920	)		(1,504	)		-			(855	)		-			(29,279	)
Net book amount		29,977			9,760			39,187			85,077			11,006			-			175,007
Period ended September 30, 2014
Opening net book amount		29,977			9,760			39,187			85,077			11,006			-			175,007
Currency translation adjustment		(622	)		(543	)		-			-			-			-			(1,165	)
Additions		-			1,889			-			-			-			-			1,889
Disposals		-			(311	)		-			-			-			(692	)		(1,003	)
Amortization charge (i) (Note 30)		-			(311	)		(188	)		-			(20	)		-			(519	)
Closing net book amount		29,355			10,484			38,999			85,077			10,986			(692	)		174,209
At September 30, 2014
Cost		29,355			37,712			40,692			85,077			11,861			(692	)		204,005
Accumulated amortization		-			(27,228	)		(1,693	)		-			(875	)		-			(29,796	)
Net book amount		29,355			10,484			38,999			85,077			10,986			(692	)		174,209

(i)	Amortization charges are included in “General and administrative expenses” in the Income statements. (Note 30). There is no impairment charges for any of the periods presented.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

14.

Biological assets

Changes in the Group’s biological assets for the three-month period ended September 30, 2014 and for the year ended June 30, 2014 were as follows:

	September 30, 2014			June 30, 2014
Beginning of the period / year		640,683			400,692
Purchases		1,345			37,823
Initial recognition and changes in the fair value of biological assets		266,833			1,075,567
Decrease due to harvest		(296,164	)		(915,871	)
Decrease due to sales		(54,206	)		(76,394	)
Consume		(397	)		(477	)
Currency translation adjustment		(10,773	)		119,343
End of the period / year		547,321			640,683

Biological assets as of September 30, 2014 and June 30, 2014 were as follows:

	Classification	September 30, 2014		June 30, 2014
Non-current
Cattle for dairy production	Production		37,384		37,217
Breeding cattle	Production		249,498		254,398
Sugarcane fields	Production		113,174		142,873
Other cattle	Production		5,595		5,682
Others biological assets	Production		4,461		4,683
Non-current biological assets			410,112		444,853
Current
Cattle for dairy production	Consumable		183		46
Cattle for sale	Consumable		29,055		47,767
Crops fields	Consumable		107,263		147,356
Other cattle	Consumable		708		661
Current biological assets			137,209		195,830
Total biological assets			547,321		640,683

The fair value less estimated point of sale costs of agricultural produce at the point of harvest amount to Ps. 312,042 and Ps. 966,754 for the three-month period ended September 30, 2014 and for the year ended June 30, 2014, respectively.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

14.	Biological assets (Continued)

The following tables present the Group’s biological assets measured at fair value as of September 30, 2014 and June 30, 2014 and their allocation to the fair value hierarchy:

	September 30, 2014
	Level 1		Level 2	Level 3	Total
Cattle for dairy production	-		37,567	-	37,567
Breeding cattle and cattle for sale	-		278,553	-	278,553
Sugarcane	-		-	113,174	113,174
Other cattle	-		6,303	-	6,303
Others biological assets	4,461		-	-	4,461
Crops fields	106,743	(i)	-	520	107,263
Total	111,204		322,423	113,694	547,321

(i)

Biological assets that has no significant growth, valued at cost, since it is considered that this value is similar to fair value.

	June 30, 2014
	Level 1		Level 2	Level 3	Total
Cattle for dairy production	-		37,263	-	37,263
Breeding cattle and cattle for sale	-		302,165	-	302,165
Sugarcane	-		-	142,873	142,873
Other cattle	-		6,343	-	6,343
Others biological assets	4,683		-	-	4,683
Crops fields	10,736	(i)	-	136,620	147,356
Total	15,419		345,771	279,493	640,683

(i)

Biological assets that has no significant growth, valued at cost, since it is considered that this value is similar to fair value.

The following table presents the changes in Level 3 instruments for the three-month period ended September 30, 2014 and the year ended June 30, 2014:

	Crops fields with significant biological growth	Sugarcane
At June 30, 2013	43,770	111,063
Initial recognition and changes in the fair value of biological assets (i)	813,631	82,778
Harvest	(789,630)	(100,791)
Currency translation adjustment	68,849	49,823
At June 30, 2014	136,620	142,873
Initial recognition and changes in the fair value of biological assets (i)	59,878	76,464
Harvest	(195,978)	(93,498)
Currency translation adjustment	-	(12,665)
At September 30, 2014	520	113,174

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

14.	Biological assets (Continued)

When no quoted prices in an active market are available, values are based on recognized valuation methods. The company uses a range of valuation models for the measurement of Level 2 and Level 3 biological assets. The following table presents models and main parameters:

Level 2

Description		Pricing model		Parameters
Cattle		Comparable market		Price per livestock head/kg and per category

Level 3

Description	Pricing model	Pricing method	Parameters	Range
Crops	Discounted cash flows	-	Yields – Operating cost –Selling expenses - Future of sale prices	Argentina:
				Yields 0.5 - 0.6 tn/ha
				Future of sale prices: 2,313 Ps./tn
				Selling expenses: 594 - 614 Ps./tn
				Operating cost: 420 -642 Ps./ha
Sugarcane	Discounted cash flows	-	Yields – Operating cost –Selling expenses - Future of sale prices Discount rate	Brazil:
		-		Yields 97.62 tn/ha
				Future of sale prices: 73.1 Rs./tn
				Operating cost: 50.12 Rs./tn
				Bolivia:
				Yields 50 - 105 tn/ha
				Future of sale prices: 22.42 – 25.84 US$/tn
				Selling expenses: 4.2 US$/tn
				Operating cost: 275 – 524 US$/tn
				Discount rate: 13.83%

During years ended June 30, 2014 and 2013, there have been no transfers between the several tiers used in estimating the fair value of the Group’s biological assets, or reclassifications among their respective categories.

See information on valuation processes used by the entity and on the sensitivity of fair value valuation to changes in material non-observable input data in Note 5.c.

As of June 30, 2014 and 2013, the better and maximum use of biological assets shall not significantly differ from the current use.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

15.

Inventories

Breakdown of Group’s inventories as of September 30, 2014 and June 30, 2014 were as follows:

	September 30, 2014		June 30, 2014
Crops		135,238		241,061
Materials and inputs		194,397		141,495
Seeds and fodders		61,714		28,329
Hotel supplies		5,711		6,011
Beef		26,076		22,875
Total inventories		423,136		439,771

16.	Financial instruments by category

Determining fair values

IFRS 9 defines the fair value of a financial instrument as the amount for which a financial asset could be exchanged, or a financial liability settled, between knowledgeable, willing parties in an arm’s length transaction. All financial instruments recognized at fair value are allocated to one of the valuation hierarchy levels of IFRS 7. This valuation hierarchy provides for three levels. The initial basis for the allocation is the “economic investment class”. Only if this does not result in an appropriate allocation the Company deviates from such an approach in individual cases. The allocation reflects which of the fair values derive from transactions in the market and where valuation is based on models because market transactions are lacking.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

16.	Financial instruments by category (Continued)

In the case of Level 1, valuation is based on non-adjusted quoted prices in active markets for identical financial assets or liabilities that the Group can refer to at the date of the statement of financial position. A market is deemed active if transactions take place with sufficient frequency and in sufficient quantity for price information to be available on an ongoing basis. Since a quoted price in an active market is the most reliable indicator of fair value, this should always be used if available. The financial instruments the Group has allocated to this level mainly comprise equity investments, mutual funds, government bonds and corporate bonds for which quoted prices in active markets are available. In the case of shares, the Group allocates them to this level when either a stock market price is available or prices are provided by a price quotation on the basis of actual market transactions.

In the case of Level 2, fair value is determined by using valuation methods based on inputs directly or indirectly observable in the market. If the financial instrument concerned has a fixed contract period, the inputs for valuation must be observable for the whole of this period. The financial instruments the Group has allocated to this level mainly comprise interest rate swaps and foreign currency contracts.

In the case of Level 3, the Group uses valuation techniques not based on inputs observable in the market. This is only permissible insofar as that information is not available. The inputs used reflect the Group’s assumptions regarding the factors which any market player would consider in their pricing. The Group uses the best available information for this, including internal company data. The financial instruments that the Group has allocated to this level mainly comprise shares and warrants of Supertel and Arcos del Gourmet S.A. stock option (its fair value at the end of the period is zero).

As of September 30, 2014, the Group has determined that Arcos del Gourmet S.A.’s stock option is a Level 3 financial instrument and its fair value at the end of the period is zero.

Since June 30, 2014, there have been no transfers between the several tiers used in estimating the fair value of the Group’s financial instruments, or reclassifications among their respective categories.

The Group’s Finance Division has a team in place in charge of estimating valuation of financial assets required to be reported in the financial statements, including the fair value of Level 3 instruments. The team directly reports to the Chief Financial Officer (CFO).

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

16.	Financial instruments by category (Continued)

The CFO and the valuation team discuss the valuation methods and results upon the acquisition of an asset and, if necessary, on a quarterly basis, in line with the Group’s quarterly reports.

According to the Group’s policy, transfers among the several categories of valuation tiers are recognized when occurred, or when there are changes in the prevailing circumstances requiring the transfer.

The following tables present the Group’s financial assets and financial liabilities that are measured at fair value as of September 30, 2014 and June 30, 2014 and their allocation to the fair value hierarchy:

	September 30, 2014
	Level 1	Level 2	Level 3	Total
Assets
Financial assets at fair value through profit or loss:
- Investment in equity securities in TGLT	57,526	-	-	57,526
- Other equity securities in public shares	13,850	-	-	13,850
- Corporate bonds	1,499	-	-	1,499
- Government bonds	8,554	-	-	8,554
- Mutual funds	457,617	-	-	457,617
- Shares of Supertel	-	-	318,108	318,108
Derivative financial instruments:
- Commodity derivatives	14,586	-	-	14,586
- Warrants of IDBD	9,963	-	-	9,963
- Foreign-currency contracts	-	2,999	-	2,999
- Warrants of Supertel	-	-	5,855	5,855
Cash and cash equivalents	46,863	-	-	46,863
Investment in associates:
- IDBD	756,395	-	-	756,395
Total assets	1,366,853	2,999	323,963	1,693,815
Liabilities
Derivative financial instruments:
- Commitment to tender offer shares in IDBD	-	-	344,551	344,551
- Swaps	-	323	-	323
- Foreign-currency contracts	-	21,914	-	21,914
- Commodity derivatives	2,874	-	-	2,874
Total liabilities	2,874	22,237	344,551	369,662

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

16.	Financial instruments by category (Continued)

	June 30, 2014
	Level 1	Level 2	Level 3	Total
Assets
Financial assets at fair value through profit or loss:
- Investment in equity securities in TGLT	63,546	-	-	63,546
- Investment in equity securities in Hersha	53,901	-	-	53,901
- Corporate bonds	1,438	-	-	1,438
- Government bonds	203,216	-	-	203,216
- Mutual funds	222,760	-	-	222,760
- Other equity securities in public companies	14,614	-	-	14,614
- Shares of Supertel	-	-	211,170	211,170
Derivative financial instruments:
- Commodity derivatives	4,750	-	-	4,750
- IDBD Rights (i)	10,986	-	-	10,986
- Foreign-currency contracts	-	16,305	-	16,305
- Swaps	-	1,089	-	1,089
Cash and cash equivalents	24,590	-	-	24,590
Investment in associates:
- IDBD	595,342	-	-	595,342
Total assets	1,195,143	17,394	211,170	1,423,707
Liabilities
Derivative financial instruments:
- Foreign-currency contracts	-	52,666	-	52,666
- Commodity derivatives	753	-	-	753
- Commitment to tender offer shares in IDBD	-	-	320,847	320,847
- Borrowings	22,901	51,443	-	74,344
Total liabilities	23,654	104,109	320,847	448,610

(i)

On July 3 rights for the purchase of additional shares and warrants of IDBD were exercised.

The following table presents the changes in Level 3 instruments for the three-month period ended September 30, 2014:

	Warrants of Supertel	Shares of Supertel	Commitment to tender offer shares in IDBD	Total
Balance at June 30, 2014	-	211,170	(320,847)	(109,677)
Acquisition	-	-	12,401	12,401
Total gain and losses for the period (i)	5,855	106,938	(36,105)	76,688
Balance at September 30, 2014	5,855	318,108	(344,551)	(20,588)

(i)

The gain / (loss) is not realized as of September 30, 2014 and is accounted for under “Other financial results” in the income statements (Note 33).

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

16.	Financial instruments by category (Continued)

Upon initial recognition (January, 2012), the consideration paid for the Shares and Warrants was assigned to both instruments based on the relative fair values of those instruments upon acquisition. The fair value of these instruments exceeded the transaction price and were determined using a valuation technique that uses inputs not observable in the market. As a result of the use of this technique, the Group has not recognized a gain at the time of initial recognition in the amount of US$ 7.9 million. On June 30, 2014, the fair value of warrants of Supertel as determined pursuant to the indicated method was lower than the gain not recognized upon initial recording; therefore, warrants are valued at zero.

According to Group estimates, all factors being constant, a 10% decline in the price of the underlying assets of Level 3 Shares and Warrants of Supertel (data observed in the market) as of September 30, 2014, would reduce pre-tax income by Ps. 35 million.

According to Group estimates, all factors being constant, a 10% increase in the credit spread (data which is not observable in the market) of shares and warrants of Supertel used in the valuation model applied to Level 3 financial instruments as of September 30, 2014, would reduce pre-tax income by Ps. 0.06 million. The rate used as of September 30, 2014 was 14.02%.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

16.	Financial instruments by category (Continued)

When no quoted prices in an active market are available, fair values (particularly with derivatives) are based on recognized valuation methods. The Company uses a range of valuation models for the measurement of Level 2 and Level 3 instruments, details of which may be obtained from the following table:

Description	Pricing model	Pricing method	Parameters	Range
Foreign-currency contracts	Present value method	Theoretical price	Money market curve; interest curve; foreign exchange curve.	-
Derivative on tender offer IDBD	Black-Scholes	Theoretical price	Price of underlying asset, stock volatility (historic) and market interest rate (ILS rate curve).	Price of underlying asset 3.5 to 4.7 Stock volatility 30% to 40% Market interest rate 0.7% to 1%
Loan for the purchase of IDBD shares	Market price of underlying asset	Theoretical price	Price of underlying asset	-
Interest-rate swaps	Cash flows	Theoretical price	Interest rate futures and flows of funds.	-
Preferred shares of Supertel	Binomial tree	Theoretical price	Price of underlying asset (market price) and stock volatility (historic) and market interest rate (Libor curve).	Price of underlying assets 1.4 to 1.7 Stock volatility 55% to 75% Market interest rate 0.75% to 0.9%
Warrants of Supertel	Black-Scholes	Theoretical price	Price of underlying asset (market price) and stock volatility (historic) and market interest rate (Libor curve).	Price of underlying assets 1.4 to 1.7 Stock volatility 55% to 75% Market interest rate 0.75% to 0.9%
Call option of Arcos	Discounted cash flows	-	Projected income and discount rate.	-

17.	Restricted assets

The table below shows the restricted assets as of September 30, 2014 and June 30, 2014:

	September 30, 2014		June 30, 2014
Non-current
Escrow deposits		45,262		-
Mutual funds		-		50,897
Total non-current		45,262		50,897
Current
Escrow deposits		8,742		-
Total current		8,742		-
Total restricted assets		54,004		50,897

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

18.	Trade and other receivables

The table below shows trade and other receivables of the Group as of September 30, 2014 and June 30, 2014:

	September 30, 2014			June 30, 2014
Non-current
Leases and services receivable		59,624			55,105
Receivables from sale of agricultural products and farmlands leases		2,172			2,090
Property sales receivable (i)		109,217			154,582
Less: allowance for doubtful accounts		(2,208	)		(2,208	)
Non-current trade receivables		168,805			209,569
Trade receivables from disposal of joint ventures		3,332			3,213
Prepayments		15,826			14,332
VAT receivables		21,349			22,342
Other tax receivables		97,740			110,238
Guarantee deposits		16,412			17,150
Others		695			1,093
Non-current other receivables		155,354			168,368
Related parties (Note 35)		103,945			97,412
Non-current trade and other receivables		428,104			475,349
Current
Consumer financing receivables		14,787			14,861
Leases and services receivable		280,293			256,123
Receivables from sale of agricultural products and farmlands leases		190,580			281,711
Receivables from hotel operations		30,039			33,861
Deferred checks received		232,015			211,278
Debtors under legal proceedings		63,267			61,573
Property sales receivable (i)		127,289			131,573
Less: allowance for doubtful accounts		(93,436	)		(88,088	)
Trade receivables current		844,834			902,892
Contributions to be paid in by non-controlling interests		-			12,840
Prepayments		81,521			90,754
VAT receivables		67,880			61,030
Gross sales tax credit		6,867			4,957
Other tax receivables		33,512			33,457
Loans		13,625			12,751
Expenses and services to recover		2,093			3,024
Suppliers advances		199,969			144,656
Guarantee deposits		48,600			49,572
Dividends receivables		15,619			11,778
Others		28,081			24,892
Less: allowance for doubtful accounts		(252	)		(195	)
Current other receivables		497,515			449,516
Related parties (Note 35)		197,262			86,000
Current trade and other receivables		1,539,611			1,438,408
Total trade and other receivables		1,967,715			1,913,757

(i) Property sales receivables primarily comprise trading properties, investment properties and farmlands.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

18.	Trade and other receivables (Continued)

The fair values of current trade and other receivables approximate their respective carrying amounts due to their short-term nature.

The evolution of the Group’s provision for impairment of trade receivables were as follows:

	September 30, 2014			June 30, 2014
Beginning of the period / year		90,491			86,902
Creation		7,652			24,150
Charge of the period		(1,687	)		(13,689	)
Unused amounts reversed		-			(23	)
Used during the period / year		(91	)		(9,347	)
Receivables written off		(42	)		-
Currency translation adjustment		(427	)		2,498
End of the period / year		95,896			90,491

The creation and release of allowance for doubtful account have been included in “Selling expenses” in the income statements (Note 30). Amounts charged to the provision account are generally written off when there is no expectation of recovering additional cash.

19.	Investment in financial assets

Group’s investment in financial assets as of September 30, 2014 and June 30, 2014 were as follows:

	September 30, 2014		June 30, 2014
Non-current
Financial assets at fair value
Investment in equity securities in TGLT		57,526		63,546
Shares of Supertel		318,108		211,170
Other investment in equity securities		284		296
Total Investment in Financial Assets Non-current		375,918		275,012
Current
Financial assets at fair value
Mutual funds		457,617		222,760
Investment in equity securities in Hersha		-		53,901
Other investment in equity securities		13,566		14,318
Corporate bonds		1,499		1,438
Government bonds		-		203,216
Government securities		8,554		-
Total Investment in Financial Assets current		481,236		495,633
Total Investment in Financial Assets		857,154		770,645

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

20.	Derivative financial instruments

Group’s derivative financial instruments as of September 30, 2014 and June 30, 2014 were as follows:

	September 30, 2014		June 30, 2014
Assets
Non-current
Foreign-currency contracts		-		233
IDBD Warrants		5,859		-
Supertel Warrants (i)		5,855		-
Total non-current		11,714		233
Current
Commodities		14,586		4,750
IDBD Warrants		4,104		-
IDBD Rights		-		10,986
Foreign-currency contracts (Note 35)		2,999		16,072
Swaps		-		1,089
Total current		21,689		32,897
Total assets		33,403		33,130

Liabilities
Non-current
Commitment to tender offer shares in IDBD		344,551		320,847
Total non-current		344,551		320,847
Current
Commodities		2,874		753
Foreign-currency contracts		21,914		52,666
Swaps		323		-
Total current		25,111		53,419
Total liabilities		369,662		374,266

(i)

The balance represents the fair value of Supertel’s warrants, which were acquired in February 2012. The gain not recognized initially on the warrants amounted to US$ 1.1 million. As of June 30, 2014, their notional valuation was lower than the amount previously indicated, and thus was valued at zero.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

21.	Cash flow information

The following table shows the amounts of cash and cash equivalents as of September 30, 2014 and June 30, 2014:

	September 30, 2014		June 30, 2014
Cash at bank and on hand		1,427,917		724,900
Short-term bank deposits		6,498		251,822
Financial trust		474		1,675
Mutual funds		46,863		24,590
Total cash and cash equivalents		1,481,752		1,002,987

Following is a detailed description of cash flows generated by the Group’s operations for the three-month periods ended as of September 30, 2014 and 2013.

	Note	September 30, 2014			September 30, 2013
Profit / (loss) for the period			21,665			(89,015	)
Adjustments for:
Income tax expense			131,082			(45,382	)
Depreciation and amortization			63,265			68,235
Gain from disposal of investment property			(316,767	)		-
Loss on the revaluation of receivables arising from the sale of farmland			7,326			761
Loss from disposal of property, plant and equipment			577			8
Release of investment property and property, plant and equipment			1,496			155
Dividends income			(4,195	)		(3,061	)
Equity-settled compensation			15,464			8,498
Unrealized gain / (loss) on derivative financial instruments			58,343			(4,988	)
Changes in fair value of investments in financial assets			(149,400	)		(61,963	)
Interest expense, net			212,100			131,693
Unrealized initial recognition and changes in fair value of biological assets and agricultural produce at the point of harvest			(104,578	)		(48,193	)
Changes in the net realizable value of agricultural produce after harvest			22,021			8,012
Provisions			39,307			25,211
Share of profit / (loss) of associates and joint ventures			102,728			(38,366	)
Unrealized foreign exchange loss, net			161,875			227,720
Loss from disposal of subsidiaries and joint ventures			(8,758	)		-
Gain from purchase of joint venture			-			12
Gain from repurchase of Non-convertible Notes			-			14,271
Changes in operating assets and liabilities:
Decrease in biological assets			190,723			-
(Increase) decrease in inventories			(55,218	)		91,590
Decrease in restricted assets			-			5,638
Decrease in trading properties			977			533
Decrease in trade and other receivables			49,089			121,364
Decrease / (Increase) in derivative financial instruments			16,649			(1,098	)
Increase in trade and other payables			7,185			25,837
Decrease in payroll and social security liabilities			(77,821	)		(16,864	)
Decrease in provisions			(3,897	)		(19	)
Net cash generated from operating activities before income tax paid			381,238			420,589

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

21.

Cash flow information (Continued)

The following table shows a detail of non-cash transactions occurred for the three-month periods ended as of September 30, 2014 and 2013:

	September 30, 2014			September 30, 2013
Decrease in investment in associates and joint venture through an increase in trade and other receivables		111,181			(476	)
Decrease in borrowings trough a decrease in investment in associates and joint ventures		4,154			-
Increase in property, plant and equipment through an increase in trade and other payables		343			-
Dividends not collected		(4,199	)		-
Increase in property, plant and equipment through an increase in borrowings		458			-
Increase in trade and other receivables through a decrease in property, plant and equipment		485			-
Increase in investments in financial assets through a decrease in property, plant and equipment		48,217			-
Increase in restricted assets through an increase in borrowings		8,742			-

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

22.	Trade and other payables

Group’s trade and other payables as of September 30, 2014 and June 30, 2014 were as follows:

	September 30, 2014		June 30, 2014
Non-current
Admission rights		124,503		113,617
Sales, rent and services payments received in advance		54,883		51,638
Guarantee deposits		6,904		6,759
Total non-current trade payables		186,290		172,014
Other tax payables		6,300		9,166
Deferred income		7,790		7,914
Shareholders’ personal tax payable		1,094		1,170
Tax amnesty plan for payable taxes		13,987		15,014
Others		10,040		11,287
Total non-current other payables		39,211		44,551
Related parties (Note 35)		2,820		195
Total non-current trade and other payables		228,321		216,760
Current
Trade payables		353,605		289,825
Accrued invoices		177,819		173,193
Admission rights		117,968		111,024
Sales, rent and services payments received in advance		185,160		244,700
Guarantee deposits		15,607		13,413
Total current trade payables		850,159		832,155
Withholdings tax		5,245		3,020
VAT payables		29,858		28,521
Gross sales tax payable		1,443		1,150
Other tax payables		67,374		59,303
Deferred incomes		3,711		495
Dividends payable		12,433		24,032
Tax amnesty plan for payable taxes		280		306
Shareholders’ personal tax payable		6,935		5,076
Others		8,635		11,117
Total current other payables		135,914		133,020
Related parties (Note 35)		42,866		39,005
Total current trade and other payables		1,028,939		1,004,180
Total trade and other payables		1,257,260		1,220,940

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

22.

Trade and other payables (Continued)

The fair values of current trade and other payables approximate their respective carrying amounts due to their short-term nature.

23.	Payroll and social security liabilities

Group’s Salaries and social security liabilities as of September 30, 2014 and June 30, 2014 were as follows:

	September 30, 2014		June 30, 2014
Non-current
Social security payable		6,446		4,598
Others		327		443
Non-current payroll and social security liabilities		6,773		5,041
Current
Provision for vacation and bonuses		96,828		166,276
Social security payable		22,929		28,600
Salaries payable		1,381		2,247
Others		5,601		5,423
Current payroll and social security liabilities		126,739		202,546
Total payroll and social security liabilities		133,512		207,587

24.	Provisions

The table below shows the movements in the Group's provisions for other liabilities categorized by type of provision:

	Labor and legal claims			Tax and social security claims			Investments in associates and joint ventures (i)			Total
At June 30, 2014		62,623			1,592			176,982			241,197
Additions		7,813			159			34,461			42,433
Used during period		(7,786	)		(175	)		-			(7,961	)
Contributions		-			-			(1,467	)		(1,467	)
Currency translation adjustment		1,621			-			6,987			8,608
At September 30, 2014		64,271			1,576			216,963			282,810

(i)

Corresponds to equity interests in associates and joint ventures with negative equity, mainly New Lipstick LLC.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

24.	Provisions (Continued)

The analysis of total provisions is as follows:

	September 30, 2014		June 30, 2014
Non-current		261,740		220,489
Current		21,070		20,708
		282,810		241,197

25.	Borrowings

Group’s borrowings as of September 30, 2014 and June 30, 2014 were as follows:

						Book value
	Secured/ unsecured	Currency	Fixed/ floating	Effective interest rate %	Nominal value (in million)	September 30, 2014	June 30, 2014
Non-current
CRESUD NCN Class XIV due 2018	Unsecured	US$	Fixed	1.50%	32	268,696	259,192
CRESUD NCN Class XV due 2015	Unsecured	Ps.	Floating	23.67%	176	58,715	117,299
CRESUD NCN Class XVI due 2018	Unsecured	US$	Fixed	1.50%	109	927,951	896,032
CRESUD NCN Class XVII due 2016	Unsecured	Ps.	Floating	Badlar + 250 bps	176	170,932	-
CRESUD NCN Class VIII due 2016	Unsecured	US$	Fixed	4.00%	34	285,864	-
IRSA NCN Class I due 2015	Unsecured	Ps.	Floating	Badlar + 395 bps	209	-	209,297
IRSA NCN Class II due 2017	Unsecured	Ps.	Floating	Badlar + 450 bps	10.8	10,723	10,734
IRSA NCN Class I due 2017	Unsecured	US$	Fixed	8.50%	150	1,254,831	1,210,359
IRSA NCN Class II due 2020	Unsecured	US$	Fixed	11.50%	150	1,111,034	1,070,428
APSA NCN Class I due 2017	Unsecured	US$	Fixed	7.87%	110	871,283	839,081
Syndicated loan (I)	Unsecured	Ps.	Fixed	-	177.3	49,731	74,964
Long term loans	Unsecured	US$	Floating	Libor + 300 bps or 6% (the higher)	15	115,442	111,363
Long term loans	Unsecured	Ps.	Floating	Rate Survey PF 30-59 days	20	13,196	16,665
Long term loans	Unsecured	Ps.	Fixed	15.01%	24	6,820	6,804
Long term loans	Secured	Rs.	Floating	TJLP + 1.95 to 3.10 and 5.5 to 8.7	20.5	2,362	9,846
Long term loans	Secured	Rs.	Fixed	7.23% and SELIC/TJLP + 4.45	98.7	177,253	204,012
Seller financing	Secured	US$	Fixed	3.50%	7.2	64,582	121,256
Finance leases	Secured	US$	Fixed	10.75% and 7.5%	0.3	1,248	1,187
Other long term loans	Unsecured	Ps.	Fixed	15.25% (ii)	27.8	9,043	13,359
Other long term loans	Secured	Bol.	Floating	7%	13.5	6,160	5,799
Related parties (Note 35)	Secured					146,961	137,658
Non-current borrowings						5,552,827	5,315,335

(i)

On November 16, 2012, the Company subscribed a syndicated loan for Ps. 118,000. Principal will be payable in nine quarterly consecutive installments and shall accrue interest at rate of 15.01%. On June 12, 2013 the Company subscribed a new syndicated loan for Ps. 111,000. Principal will be payable in nine quarterly consecutive installments and shall accrue interest at rate of 15.25%. Both loans have been entered into with various banking institutions, one of which is Banco Hipotecario (Note 35).

(ii)

On December 12, 2012, the Group subscribed a loan with Banco Provincia de Buenos Aires for Ps. 29 million. Principal will be repaid in nine quarterly consecutive installments beginning in December 2013. Additionally, on February 3, 2014 a new loan has been subscribed for Ps. 20 million. As of the date of these financial statements, the mentioned capital is fully canceled.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

25.

Borrowings (Continued)

						Book value
	Secured/ unsecured	Currency	Fixed/ floating	Effective interest rate %	Nominal value (in million)	September 30, 2014	June 30, 2014
Current
CRESUD NCN Class VIII due 2014	Unsecured	US$	Fixed	7.50%	60	-	499,113
CRESUD NCN Class XI due 2015	Unsecured	Ps.	Floating	Badlar + 375 bps	80.5	39,725	39,647
CRESUD NCN Class XII due 2014	Unsecured	Ps.	Floating	Badlar + 410 bps	102	34,929	69,971
CRESUD NCN Class XIII due 2015	Unsecured	US$	Fixed	1.90%	79	669,322	644,965
CRESUD NCN Class XIV due 2018	Unsecured	US$	Fixed	1.50%	32	254	150
CRESUD NCN Class XV due 2015	Unsecured	Ps.	Floating	23.67%	176	122,107	63,883
CRESUD NCN Class XVI due 2018	Unsecured	US$	Fixed	1.50%	109	4,702	4,222
CRESUD NCN Class XVII due 2016	Unsecured	Ps.	Floating	Badlar + 250 bps	176	419	-
CRESUD NCN Class XVIII due 2019	Unsecured	US$	Fixed	4.00%	34	985	-
IRSA NCN Class I due 2017	Unsecured	US$	Fixed	8.50%	150	16,327	41,472
IRSA NCN Class I due 2015	Unsecured	Ps.	Floating	Badlar + 395 bps	209	213,016	4,325
IRSA NCN Class II due 2017	Unsecured	Ps.	Floating	Badlar + 450 bps	10.80	234	255
IRSA NCN Class II due 2020	Unsecured	US$	Fixed	11.50%	150	24,779	55,494
APSA NCN Class I due 2017	Unsecured	US$	Fixed	7.88%	110	26,590	8,732
Bank overdrafts	Unsecured	Ps.	Fixed	-	-	72,625	153,330
Bank overdrafts	Unsecured	Ps.	Floating	-	-	576,630	401,963
Short term loans	Unsecured	US$	Floating	Libor + 300 bps or 6% (the higher)	15	7,862	9,267
Short term loans	Unsecured	Ps.	Floating	Rate Survey PF 30-59 days	20	7,090	4,285
Short term loans	Unsecured	Rs.	Floating	TJLP + 3.00 to 3.10	84.1	10,097	11,024
Short term loans	Unsecured	Rs.	Fixed	10.69%	19.1	76,481	165,121
Short term loans	Unsecured	Ps.	Fixed	15.01%	24	7,412	6,880
Short term loans	Secured	Rs.	Fixed	7.23%	11.9	43,484	47,056
Short term loans	Secured	US$	Fixed	7.50%	-	56,833	74,344
Short term loans	Secured	Rs.	Floating	5.5 a 8.00	5.5	6,245	6,699
Short term loans	Secured	Bol.	Fixed	7%	13.5	2,725	2,603
Syndicated loans (i)	Unsecured	Ps.	Fixed	15.01%	203	101,431	101,339
Seller financing	Secured	US$	Fixed	3.50%	2.6	2,407	28,670
Seller financing	Unsecured	Rs.	Floating	IGPM/CDI	102	156,920	165,521
Finance leases	Secured	US$	Fixed	10.75% and 7.50%	325	2,268	2,102
Other short term loans	Unsecured	Ps.	Fixed	(II)		127,521	25,492
Related parties (Note 35)						13,953	1,566
Current borrowings						2,425,373	2,639,491
Total borrowings						7,978,200	7,954,826

(i)

(ii)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

25.

Borrowings (Continued)

Notes issued by Cresud

Classes XVII and XVIII NCN

On September 12, 2014, the Ninth Series of simple corporate notes was issued in the equivalent amount of Ps. 455.3 million, in two classes.

Class XVII Non-Convertible Notes, for a face value of 171.79 million and falling due 15 months after the issuance date, will accrue interest at a variable rate (Badlar plus 250 basis points). Interest will be payable quarterly in arrears whereas the principal will be amortized in one payment 6 months following the issuance date.

Class XVIII Non-Convertible Notes, for a face value of US$ 33.71 million (equivalent to Ps. 283.51 million) and falling due 60 months after the issuance date, will accrue interest at fixed annual rate of 4%. Interest will be payable quarterly in arrears whereas the principal will be amortized in two consecutive payments on the 54 and 60 months following the issuance date.

26.

Taxation

The details of the provision for the Group’s income tax are as follows:

	September 30, 2014			September 30, 2013
Current income tax		(266,470	)		(73,623	)
Deferred income tax		136,592			119,209
Minimum Presumed Income Tax		(1,204	)		(204	)
Income tax expense		(131,082	)		45,382

The gross movement on the deferred income tax account was as follows:

	September 30, 2014			June 30, 2014
Beginning of the period / year		382,597			(351,035	)
Currency translation adjustment		(10,871	)		24,150
Reserve for changes in non-controlling interest		(17,604	)		-
Reclassification to assets held for sale		(33,346	)		-
Additions for business combination		-			33,346
Charged / (Credited) to the income statements		136,592			676,136
End of the period / year		457,368			382,597

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

26.

Taxation (Continued)

The Group did not recognize deferred income tax assets of Ps. 57.2 million and Ps. 57.1 million as of September 30, 2014 and June 30, 2014, respectively. Although management believes that it will become profitable in the foreseeable future, as a result of the history of recent losses incurred during the development phase of the different Group’s business operations and the lack of verifiable and objective evidence due to the limited operating history of the Group itself, the Board of Directors has determined that there is sufficient uncertainty as to the generation of sufficient income to utilize the losses within a reasonable timeframe, therefore, no deferred tax asset is recognized in relation to these losses.

The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated entities as follows:

	September 30, 2014			September 30, 2013
Tax calculated at the tax rates applicable to profits in the respective countries		(66,147	)		43,583
Permanent differences:
Share of (loss) / profit of associates and joint ventures		(58,432	)		13,428
Unrecognized tax losses		(4,121	)		-
Non-deductible expenses		(9,422	)		(8,968	)
Others		7,040			(2,661	)
Income tax expense		(131,082	)		45,382

27.	Shareholders’ Equity

Special Reserve

Pursuant to CNV General Ruling No. 609/12, the Company set up a special reserve, to reflect the positive difference between the balance at the beginning of retained earnings disclosed in the first financial statements prepared according to IFRS and the balance at closing of retained earnings disclosed in the last financial statements prepared in accordance with previously effective accounting standards. This reserve may not be used to make distributions in kind or in cash, and may only be reversed to be capitalized, or otherwise to absorb potential negative balances in Retained Earnings.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

27.	Shareholders’ Equity (Continued)

Treasury stock

During the three-month period ended September 30, 2014 Cresud repurchased 37,657 common, registered shares of own stock of Ps. 1 nominal value and 1 vote per share, in exchange for Ps. 0.5 million and 303.018 American Depositary Shares or ADRs representing 10 shares each for a total amount of US$ 3.9 million, thus completing the terms and conditions of the share repurchase plan. On the balance sheet date, no deadline has been established for the sale of repurchased shares.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

28.

Revenues

	September 30, 2014								September 30, 2013
	Urban properties and investments		Agricultural		Agroindustrial		Total		Urban properties and investments		Agricultural		Agroindustrial		Total
Trading properties		4,748		-		-		4,748		4,286		-		-		4,286
Crops		-		325,820		-		325,820		-		270,022		-		270,022
Cattle		-		29,975		-		29,975		-		23,906		-		23,906
Dairy		-		17,467		-		17,467		-		11,763		-		11,763
Sugarcane		-		100,181		-		100,181		-		66,735		-		66,735
Beef		-		-		215,241		215,241		-		-		105,089		105,089
Supplies		-		18,426		-		18,426		-		12,626		-		12,626
Revenues or sales income		4,748		491,869		215,241		711,858		4,286		385,052		105,089		494,427
Base rent		304,460		1,160		-		305,620		239,807		2,102		-		241,909
Contingent rent		86,610		-		-		86,610		71,744		-		-		71,744
Admission rights		34,600		-		-		34,600		28,508		-		-		28,508
Parking fees		24,844		-		-		24,844		19,653		-		-		19,653
Commissions		14,135		-		-		14,135		8,330		-		-		8,330
Property management fee		7,483		-		-		7,483		6,365		-		-		6,365
Expenses and Collective Promotion Funds		204,300		-		-		204,300		160,908		-		-		160,908
Flattening of tiered lease payments		9,663		-		-		9,663		7,541		-		-		7,541
Agricultural services		-		3,634		686		4,320		-		22		-		22
Advertising and brokerage fees		-		18,091		-		18,091		-		12,009		-		12,009
Others		2,344		3,230		-		5,574		1,194		401		-		1,595
Leases and service income		688,439		26,115		686		715,240		544,050		14,534		-		558,584
Consumer financing		55		-		-		55		184		-		-		184
Hotel operations		96,827		-		-		96,827		72,927		-		-		72,927
Other revenues		96,882		-		-		96,882		73,111		-		-		73,111
Total Group revenue		790,069		517,984		215,927		1,523,980		621,447		399,586		105,089		1,126,122

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

29.

Costs

	September 30, 2014								September 30, 2013
	Urban properties and investments		Agricultural		Agroindustrial		Total		Urban properties and investments		Agricultural		Agroindustrial		Total
Cost of leases and services		-		5,210		-		5,210		-		2,573		-		2,573
Other operative costs		-		11,565		-		11,565		-		1,763		-		1,763
Cost of property operations		-		16,775		-		16,775		-		4,336		-		4,336
Crops		-		431,332		-		431,332		-		293,390		-		293,390
Cattle		-		82,240		-		82,240		-		51,683		-		51,683
Dairy		-		32,836		-		32,836		-		22,895		-		22,895
Sugarcane		-		151,158		-		151,158		-		107,124		-		107,124
Supplies		-		14,006		-		14,006		-		10,118		-		10,118
Beef		-		-		156,616		156,616		-		-		85,893		85,893
Agricultural services		-		-		-		-		-		-		4,079		4,079
Advertising and brokerage operations		-		12,037		-		12,037		-		7,281		-		7,281
Others		-		-		-		-		-		2,953		-		2,953
Cost of agricultural sales and services		-		723,609		156,616		880,225		-		495,444		89,972		585,416
Cost of sale of trading properties		2,907		-		-		2,907		3,189		-		-		3,189
Cost from hotel operations		66,291		-		-		66,291		49,548		-		-		49,548
Cost of leases and services		286,098		-		-		286,098		243,283		-		-		243,283
Other costs		74		-		-		74		96		-		-		96
Total Group costs		355,370		740,384		156,616		1,252,370		296,116		499,780		89,972		885,868

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30.	Expenses by nature

For the three-month period ended as of September 30, 2014:

	Group costs
	Cost of property operations		Cost of agricultural sales and services		Cost of agriculture production		Cost of sale of trading properties		Cost from Consumer Financing		Cost from hotel operations		Other operative costs		General and administrative expenses		Selling expenses		Total
Leases, services charges and vacant property costs		4,398		720		281		93		-		250		13		2,450		414		8,619
Depreciation and amortization		40,229		14,032		2,056		208		-		2,838		741		2,853		308		63,265
Allowance for doubtful accounts		-		-		-		-		-		-		-		-		5,965		5,965
Advertising, publicity and other selling expenses		31,889		-		-		-		-		1,540		-		-		9,206		42,635
Taxes, rates and contributions		25,638		780		1,359		684		-		-		8,589		4,491		40,572		82,113
Maintenance and repairs		76,220		3,247		4,961		912		-		8,306		330		8,145		341		102,462
Fees and payments for services		7,992		52,695		639		5		65		402		614		25,508		2,190		90,110
Director´s fees		-		-		-		-		-		-		-		27,350		-		27,350
Payroll and social security expenses		91,333		30,356		15,330		165		-		37,264		656		56,449		9,609		241,162
Cost of sale of properties		-		-		-		828		-		-		-		-		-		828
Food, beverage and other lodging expenses		-		-		-		-		-		15,550		-		1,887		1,297		18,734
Others		8,399		6,302		2,869		12		9		141		198		8,693		-599		26,024
Changes in biological assets and agricultural produce		-		333,960		-		-		-		-		-		-		-		333,960
Supplies and labor		-		180,650		229,687		-		-		-		7		-		659		411,003
Freights		-		465		3,434		-		-		-		-		15		42,069		45,983
Commissions and bank expenses		-		1,918		104		-		-		-		-		1,510		1,755		5,287
Conditioning and clearance		-		-		7		-		-		-		-		-		8,520		8,527
Total expenses by nature		286,098		625,125		260,727		2,907		74		66,291		11,148		139,351		122,306		1,514,027

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30.

Expenses by nature (Continued)

For the three-month period ended as of September 30, 2013:

	Group costs
	Cost of property operations		Cost of Agricultural sales and services		Cost of agriculture production		Cost of sale of trading properties		Cost from Consumer Financing		Cost from hotel operations		Other operative costs		General and administrative expenses		Selling expenses		Total
Leases, services charges and vacant property costs		3,789		322		300		363		-		206		30		2,842		284		8,136
Depreciation and amortization		53,316		7,208		1,535		143		-		2,729		659		2,576		69		68,235
Allowance for doubtful accounts		-		-		-		-		-		-		-		29		5,394		5,423
Advertising, publicity and other selling expenses		26,152		-		-		-		-		-		-		-		4,961		31,113
Taxes, rates and contributions		18,520		433		1,210		805		-		106		4		1,867		30,375		53,320
Maintenance and repairs		58,199		4,307		3,840		847		-		6,221		26		5,770		199		79,409
Fees and payments for services		7,059		28,237		1,067		13		93		209		33		11,531		1,648		49,890
Director´s fees		-		-		-		-		-		-		-		34,197		-		34,197
Payroll and social security expenses		71,686		18,487		9,808		38		-		28,168		921		46,479		7,655		183,242
Cost of sale of properties		-		-		-		974		-		2,713		-		-		-		3,687
Food, beverage and other lodging expenses		-		-		-		-		-		8,176		-		1,422		772		10,370
Changes in biological assets and agricultural produce		-		355,551		-		-		-		-		-		-		-		355,551
Supplies and labor		-		13,921		135,484		-		-		-		-		-		154		149,559
Freights		13		310		2,550		-		-		-		5		13		21,762		24,653
Commissions and bank expenses		-		888		5		1		-		925		-		1,660		1,201		4,680
Conditioning and clearance		-		-		-		-		-		-		-		-		5,524		5,524
Others		4,549		1,452		1,074		5		3		95		85		3,268		1,003		11,534
Total expenses by nature		243,283		431,116		156,873		3,189		96		49,548		1,763		111,654		81,001		1,078,523

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

31.	Employee costs

	September 30, 2014		September 30, 2013
Salaries, bonuses and social security costs		215,011		162,082
Share-based payments		15,464		8,498
Pension costs – defined contribution plan		238		882
Others		10,449		11,780
		241,162		183,242

32.	Other operating results

	September 30, 2014			September 30, 2013
Gain from commodity derivative financial instruments		9,693			8,970
Gain from disposal of interest in associates		8,758			-
Loss from disposal of other property items		(577	)		(8	)
Tax on personal assets		(4,367	)		(4,350	)
Management fee		-			188
Contingencies (i)		(3,452	)		(4,796	)
Donations		(3,896	)		(2,871	)
Project Analysis and Assessment		13			(1,176	)
Unrecoverable VAT		(118	)		(493	)
Others		3,313			346
Total other operating results		9,367			(4,190	)

(i)

Including costs and legal expenses.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

33.	Financial results, net

	September 30, 2014			September 30, 2013
Finance income:
- Interest income		17,905			16,788
- Foreign exchange gains		33,318			53,582
- Dividends income		4,195			3,061
- Others		-			61
Finance income		55,418			73,492

Finance costs:
- Interest expense		(230,005	)		(148,481	)
- Foreign exchange losses		(230,934	)		(289,528	)
- Other financal costs		(38,780	)		(27,890	)
Finance costs		(499,719	)		(465,899	)
Less Finance costs capitalized		2,034			6,390
Total financial costs		(497,685	)		(459,509	)
Other finance results:
- Fair value gains of financial assets at fair value through profit or loss		149,400			69,719
- Gain from derivative financial instruments (except commodities)		(40,625	)		(3,082	)
- Gain on the revaluation of receivables arising from the sale of farmland		(7,326	)		(761	)
- Loss from repurchase of Non-convertible Notes		-			(14,271	)
Total other finance results		101,449			51,605
Total financial results, net		(340,818	)		(334,412	)

34.	Share-based payments

Established by the Company and subsidiaries

Equity Incentive Plan

For the three-month periods ended September 30, 2014 and 2013 the Group incurred in a charge of Ps. 15.2 million and Ps. 7.7 million, respectively, related to the awards granted under the Equity Incentive Plan.

Movements in the number of equity-settled options outstanding under the Equity Incentive Plan were as follows:

	September 30, 2014			June 30, 2014
At the beginning		10,333,785			3,232,474
Granted		-			6,801,311
Canceled		(9,764	)		(1,695,221	)
At the end		10,324,021			8,338,564

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

34.	Share-based payments (Continued)

Established only by subsidiary undertakings

Brasilagro Stock Option Plan

For the three-month periods ended September 30, 2014 and 2013, the Group incurred in a charge of Ps. 0.3 million and Ps. 0.8 million, respectively, related to the awards granted under the Brasilagro Stock Option Plan.

Movements in the number of equity-settled options outstanding and their related weighted average exercise prices under the Brasilagro Stock Option Plan are as follows:

	September 30, 2014
	First tranche				Second tranche				Third tranche
	Option’s Exercise price		Options		Option’s Exercise price		Options		Option’s Exercise price		Options
At the beginning	Ps. 8.97			301,848	Ps. 8.25			260,952	Ps. 8.52			260,952
Granted		-		-		-		-		-		-
Forfeited		-		-		-		-		-		-
Exercised		-		-		-		-		-		-
Expired		-		-		-		-		-		-
At the end	Ps. 8.97			301,848	Ps. 8.25			260,952	Ps. 8.52			260,952

	June 30, 2014
	First tranche				Second tranche				Third tranche
	Option’s Exercise price		Options		Option’s Exercise price		Options		Option’s Exercise price		Options
At the beginning	Ps. 8.97			370,007	Ps. 8.25			315,479	Ps. 8.52			315,479
Granted		-		-		-		-		-		-
Cancelled		-		-		-		(54,527)		-		(54,527)
Exercised		-		-		-		-		-		-
Expired		-		(68,159)		-		-		-		-
At the end	Ps. 8.97			301,848	Ps. 8.25			260,952	Ps. 8.52			260,952

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

35.

Related party transactions

See description of the main transactions conducted with related parties in Note 39 to the Consolidated Financial Statements as of June 30, 2014 and 2013.

The following is a summary of the balances with related parties as of September 30, 2014:

Related party	Description of transaction	Investments in Financial Assets Non-current		Investments in Financial Assets Current		Trade and other receivables Non-current		Trade and other receivables Current		Trade and other payables Non-current			Trade and other payables Current			Borrowings Non-current			Borrowings Current			Derivative financial instruments
Associates
Tarshop S.A.	Reimbursement of expenses		-		-		-		700		-			-			-			-			-
	Leases and/or rights of use		-		-		-		-		(62	)		(654	)		-			-			-
New Lipstick LLC	Reimbursement of expenses		-		-		-		2,382		-			-			-			-			-
Lipstick Management LLC	Reimbursement of expenses		-		-		-		793		-			-			-			-			-
Llao Llao Resorts	Purchase of goods and/or services		-		-		-		-		-			(642	)		-			-			-
Agro-Uranga S.A	Dividends receivables								4,238
	Purchase of goods and/or services		-		-		-		-		-			(540	)		-			-			-
	Receivables from futures and options		-		-		-		-		-			(92	)		-			-			-
	Brokerage		-		-		-		-		-			(48	)		-			-			-
Agro Managers S.A.	Reimbursement of expenses		-		-		-		208		-			-			-			-			-
Banco Hipotecario S.A.	Reimbursement of expenses		-		-		-		139		-			(406	)		-			-			-
	Commission per supermarket aisle		-		-		-		59		-			-			-			-			-
	Borrowings		-		-		-		-		-			-			(11,049	)		(27,534	)		-
	Leases and/or rights of use		-		-		-		114		-			-			-			-			-
Banco de Crédito y Securitización	Leases and/or rights of use		-		-		-		47		-			-			-			-			-
Manibil S.A.	Other liabilities		-		-		-		7,350		-			-			-			-			-
Total Associates			-		-		-		16,030		(62	)		(2,382	)		(11,049	)		(27,534	)		-

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

35.

Related party transactions (Continued)

Related party	Description of transaction	Investments in Financial Assets Non-current		Investments in Financial Assets Current		Trade and other receivables Non-current		Trade and other receivables Current		Trade and other payables Non-current		Trade and other payables Current			Borrowings Non-current			Borrowings Current			Derivative financial instruments
Joint Ventures
Cresca S.A.	Management fees		-		-		-		9		-		-			-			-			-
Cresca S.A.	Loans granted		-		-		102,758		-		-		-			-			-			-
Puerto Retiro S.A.	Reimbursement of expenses		-		-		-		216		-		-			-			-			-
	Borrowings		-		-		-		1,862		-		-			-			-			-
Nuevo Puerto Santa Fe S.A.	Reimbursement of expenses		-		-		-		191
	Borrowings		-		-		-		-		-		-			-			(4,794	)		-
	Share-based payments		-		-		-		366		-		-			-			-			-
	Leases’ collections		-		-		-		86		-		(4	)		-			-			-
	Leases and/or rights of use		-		-		-		-		-		(848	)		-			-			-
	Management fees		-		-		-		1,581		-		-			-			-			-
Quality Invest S.A.	Management fee		-		-		-		22		-		(45	)		-			-			-
Quality Invest S.A.	Reimbursement of expenses		-		-		-		95		-		-			-			-			-
Baicom Networks S.A.	Management fees		-		-		-		5		-		-			-			-			-
	Borrowings		-		-		1,187		-		-		-			-			-			-
	Contributions to be paid in		-		-		-		10		-		-			-			-			-
	Reimbursement of expenses		-		-		-		350		-		-			-			-			-
Cyrsa S.A.	Borrowings		-		-		-		-		-		-			(143,399	)		-			-
	Leases’ collections		-		-		-		302		-		-			-			-			-
	Other receivables		-		-		-		110,860		-		-			-			-			-
	Reimbursement of expenses		-		-		-		91		-		(13	)		-			-			-
Boulevard Norte S.A.	Reimbursement of expenses		-		-		-		894		-		-			-			-			-
	Borrowings		-		-		-		4		-		-			-			-			-
Entertainment Holding S.A.	Reimbursement of expenses		-		-		-		201		-		-			-			-			-
	Borrowings		-		-		-		63		-		-			-			-			-
Total Joint Ventures			-		-		103,945		117,208		-		(910	)		(143,399	)		(4,794	)		-

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

35.

Related party transactions (Continued)

Related party	Description of transaction	Investments in Financial Assets Non-current		Investments in Financial Assets Current		Trade and other receivables Non-current		Trade and other receivables Current		Trade and other payables Non-current			Trade and other payables Current			Borrowings Non-current			Borrowings Current			Derivative financial instruments
Other related parties
Consultores Asset Management S.A. (CAMSA)	Advances to be recovered		-		-		-		1,466		-			-			-			-			-
Consultores Asset Management S.A. (CAMSA)	Reimbursement of expenses		-		-		-		3,188		-			(145	)		-			-			-
Estudio Zang, Bergel & Viñes	Advances		-		-		-		4		-			-			-			-			-
Estudio Zang, Bergel & Viñes	Legal services		-		-		-		25		-			(300	)		-			-			-
Fundación IRSA	Reimbursement of expenses		-		-		-		82		-			-			-			-			-
Inversiones Financieras del Sur S.A.	Financial operations		-		-		-		57,607		-			(5	)		-			-			-
Museo de los Niños	Reimbursement of expenses		-		-		-		-		-			(178	)		-			-			-
Museo de los Niños	Leases and/or rights of use		-		-		-		795		-			-			-			-			-
Austral Gold	Reimbursement of expenses		-		-		-		3		-			(1	)		-			-			-
Entretenimiento Universal S.A.	Reimbursement of expenses		-		-		-		123		-			-			-			-			-
	Borrowings		-		-		-		71		-			-			-			-			-
Ogden Argentina S.A.	Reimbursement of expenses		-		-		-		278		-			-			-			-			-
	Borrowings		-		-		-		4		-			-			-			-			-
IRSA Real Estate Strategies LP	Capital contribution		-		-		-		-		-			(8	)		-			-			-
IRSA Developments LP	Capital contribution		-		-		-		-		-			(13	)		-			-			-
Elsztain Managing Partners	Management fees		-		-		-		-		-			(32	)		-			-			-
Total Other related parties			-		-		-		63,646		-			(682	)		-			-			-
Directors and Senior Management
Directors and Senior Management	Fees		-		-		-		-		(2,750	)		(38,882	)		-			-			-
	Guarantee deposits		-		-		-		-		(8	)		-
	Reimbursement of expenses		-		-		-		378		-			(10	)
Total Directors and Senior Management			-		-		-		378		(2,758	)		(38,892	)		-			-			-
Total			-		-		103,945		197,262		(2,820	)		(42,866	)		(154,448	)		(32,328	)		-

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

35.	Related party transactions (Continued)

The following is a summary of the balances with related parties as of June 30, 2014:

Related party	Description of transaction	Trade and other receivables Non-current		Trade and other receivables Current		Trade and other payables Non-current			Trade and other payables Current			Borrowings Non-current			Borrowings Current			Derivative financial instruments
Associates
Tarshop S.A.	Reimbursement of expenses		-		689		-			-			-			-			-
	Commisions per supermarket aisle		-		19		-			-			-			-			-
	Leases and/or rights of use		-		-		(175	)		(677	)		-			-			-
New Lipstick LLC	Reimbursement of expenses		-		2,297		-			-			-			-			-
Lipstick Management LLC	Reimbursement of expenses		-		765		-			-			-			-			-
Agro-Uranga S.A	Dividends receivables		-		39		-			-			-			-			-
	Purchase of goods and/or services		-		-		-			(112	)		-			-			-
	Brokerage		-		29		-			(70	)		-			-			-
	Sale of inputs		-		425		-			-			-			-			-
Agro Managers S.A.	Reimbursement of expenses		-		303		-			-			-			-			-
Banco Hipotecario S.A.	Reimbursement of expenses		-		12		-			(1,547	)		-			-			-
	Commisions per supermarket aisle		-		59		-			-			-			-			-
	Borrowings		-		-		-			-			(18,376	)		(23,530	)		-
	Derivatives		-		-		-			-			-			-			(5,225	)
	Leases and/or rights of use		-		200		-			-			-			-			-
Banco de Crédito y Securitización	Leases and/or rights of use		-		19		-			(80	)		-			-			-
Total Associates			-		4,856		(175	)		(2,486	)		(18,376	)		(23,530	)		(5,225	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

35. Related party transactions (Continued)

Related party	Description of transaction	Trade and other receivables Non-current		Trade and other receivables Current		Trade and other payables Non-current		Trade and other payables Current			Borrowings Non-current			Borrowings Current			Derivative financial instruments
Joint Ventures
Cresca S.A.	Management fees		-		38		-		-			-			-			-
Cresca S.A.	Loans granted		96,269		-		-		-			-			-			-
Puerto Retiro S.A.	Contributions to be paid in		-		160		-		-			-			-			-
	Reimbursement of expenses		-		213		-		-			-			-			-
	Financial operations		-		3,230		-		-			-			-			-
Nuevo Puerto Santa Fe S.A.	Reimbursement of expenses		-		223		-		(72	)		-			-			-
	Borrowings		-		-		-		-			-			(71	)		-
	Share-based payments		-		304		-		-			-			-			-
	Leases’ collections		-		-		-		(18	)		-			-			-
	Leases and/or rights of use		-		-		-		(630	)		-			-			-
	Management fees		-		1,338		-		-			-			-			-
Quality Invest S.A.	Management fees		-		22		-		(45	)		-			-			-
Quality Invest S.A.	Reimbursement of expenses		-		64		-		-			-			-			-
Baicom Networks S.A.	Management fees		-		2		-		-			-			-			-
	Borrowings		1,143		-		-		-			-			-			-
	Contributions to be paid in		-		10		-		-			-			-			-
	Reimbursement of expenses		-		193		-		-			-			-			-
Cyrsa S.A.	Borrowings		-		-		-		-			(133,314	)		-			-
Cyrsa S.A.	Reimbursement of expenses		-		140		-		(9	)		-			-			-
Boulevard Norte S.A.	Reimbursement of expenses		-		864		-		-			-			-			-
	Borrowings		-		4		-		-			-			-			-
Entertainment Holding S.A.	Reimbursement of expenses		-		165		-		-			-			-			-
	Borrowings		-		20		-		-			-			-			-
Total Joint Ventures			97,412		6,990		-		(774	)		(133,314	)		(71	)		-

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

35.	Related party transactions (Continued)

Related party	Description of transaction	Trade and other receivables Non-current		Trade and other receivables Current		Trade and other payables Non-current			Trade and other payables Current			Borrowings Non-current			Borrowings Current			Derivative financial instruments
Other related parties
CAMSA	Advances to be recovered		-		1,468		-			-			-			-			-
	Management fees		-		11,595		-			(11,098	)		-			-			-
	Reimbursement of expenses		-		4,713		-			(1	)		-			-			-
Estudio Zang, Bergel & Viñes	Advances		-		4		-			-			-			-			-
Estudio Zang, Bergel & Viñes	Legal services		-		-		-			(739	)		-			-			-
Fundación IRSA	Reimbursement of expenses		-		75		-			-			-			-			-
Inversiones Financieras del Sur S.A.	Financial operations		-		54,724					(5	)
Museo de los Niños	Reimbursement of expenses		-		767					(9	)
Austral Gold	Reimbursement of expenses		-		8		-			(1	)		-			-			-
Entretenimiento Universal S.A.	Reimbursement of expenses		-		103		-			-			-			-			-
	Borrowings		-		68		-			-			-			-			-
Ogden Argentina S.A.	Reimbursement of expenses		-		228		-			-			-			-			-
	Borrowings		-		4		-			-			-			-			-
IRSA Real Estate Strategies LP	Capital contribution		-		-		-			(8	)		-			-			-
IRSA Developments LP	Capital contribution		-		-		-			(13	)		-			-			-
EMP	Management fees		-		-		-			(31	)		-			-			-
Total Other related parties			-		73,757		-			(11,905	)		-			-			-
Directors and Senior Management
Directors and Senior Management	Management fees		-		301		-			(23,830	)		-			-			-
	Guarantee deposits		-		-		(20	)		-			-			-			-
	Reimbursement of expenses		-		96		-			(10	)		-			-			-
Total Directors and Senior Management			-		397		(20	)		(23,840	)		-			-			-
Total			97,412		86,000		(195	)		(39,005	)		(151,690	)		(23,601	)		(5,225	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

35.	Related party transactions (Continued)

The following is a summary of the transactions with related parties for the three-month period ended as of September 30, 2014:

Related party	Leases and/or rights to use			Management fees		Sale of goods and/or services		Compensation of Directors and senior management			Legal services			Financial operations			Donations
Associates
Agro-Uranga S.A.		-			-		2,129		-			-			-			-
Tarshop S.A.		2,219					-		-			-			-			-
Banco Crédito y Securitización S.A.		915			-		-		-			-			-			-
Banco Hipotecario S.A.		148			-		-		-			-			(696	)		-
Total Associates		3,282			-		2,129		-			-			(696	)		-
Joint Ventures
Cyrsa S.A.		-			-		-		-			-			(5,606	)		-
Baicom Networks S.A.		-			3		-		-			-			34			-
Nuevo Puerto Santa Fe S.A.		(239	)		310		-		-			-			(300	)		-
Puerto Retiro S.A.		-			-		-		-			-			277			-
Quality Invest S.A.		-			54		-		-			-			-			-
Total Joint Ventures		(239	)		367		-		-			-			(5,595	)		-
Other related parties
Consultores Asset Management S.A. (CAMSA)		-			79		-		-			-			-			-
Inversiones Financieras del Sur S.A.		-			-		-		-						3,298			-
Fundación IRSA		-			-		-		-			-			-			(1,159	)
Estudio Zang, Bergel & Viñes		-			-		-		-			(971	)		-			-
Hamonet S.A.		(123	)		-		-		-			-			-			-
Isaac Elsztain e Hijos S.C.A.		(237	)		-		-		-			-			-			-
Total Other related parties		(360	)		79		-		-			(971	)		3,298			(1,159	)
Directors and Senior Management
Directors		-			-		-		(20,745	)		-			-			-
Senior Management		-			-		-		(3,973	)		-			-			-
Total Directors and Senior Management		-			-		-		(24,718	)		-			-			-
Total		2,683			446		2,129		(24,718	)		(971	)		(2,993	)		(1,159	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

35. Related party transactions (Continued)

The following is a summary of the transactions with related parties for the three-month period ended as of September 30, 2013:

Related party	Leases and/or rights to use			Management fees		Sale of goods and/or services		Compensation of Directors and senior management			Legal services			Financial operations			Donations
Associates
Agro-Uranga S.A.		-			-		1,914		-			-			-			-
Tarshop S.A.		1,598			-		-		-			-			-			-
Banco Hipotecario S.A.		120			-		-		-			-			(676	)		-
Total Associates		1,718			-		1,914		-			-			(676	)		-
Joint Ventures
Cresca S.A.		-			14		-		-			-			1,135			-
Cyrsa S.A.		-			-		-		-			-			(4,027	)		-
Baicom Networks S.A.		-			3		-		-			-			28			-
Nuevo Puerto Santa Fe S.A.		(126	)		117		-		-			-			-			-
Puerto Retiro S.A.		-			-		-		-			-			231			-
Quality Invest S.A.		-			54		-		-			-			-			-
Total Joint Ventures		(126	)		188		-		-			-			(2,633	)		-
Other related parties
Inversiones Financieras del Sur S.A.		-			-		-		-			-			3,434			-
Fundación IRSA		-			-		-		-			-			-			(550	)
Estudio Zang, Bergel & Viñes		-			-		-		-			(745	)		-			-
Dolphin Fund Ltd.		-			-		-		-			-			14,296			-
Hamonet S.A.		(83	)		-		-		-			-			-			-
Isaac Elsztain e Hijos S.C.A.		(157	)		-		-		-			-			-			-
Total Other related parties		(240	)		-		-		-			(745	)		17,730			(550	)
Directors and Senior Management
Directors and Senior Management		-			-		-		(29,989	)		-			-			-
Total Directors and Senior Management		-			-		-		(29,989	)		-			-			-
Total		1,352			188		1,914		(29,989	)		(745	)		14,421			(550	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

36.	CNV General Resolution No. 622

As required by Section 1°, Chapter III, Title IV of CNV General Resolution No. 622, below there is a detail of the notes to the Unaudited Condensed Interim Consolidated Financial Statements that disclosure the information required by the Resolution in Exhibits.

Exhibit A - Property, plant and equipment	Note 10 - Investment properties
	Note 11 - Property, plant and equipment
Exhibit B - Intangible assets	Note 13 - Intangible assets
Exhibit C - Equity investments	Note 37 - Investments in associates and joint ventures
Exhibit D - Other investments	Note 16 - Financial instruments by category
	Note 17 - Restricted assets
Exhibit E - Provisions	Note 18 - Trade and other receivables
	Note 24 - Provisions
Exhibit F - Cost of sale and services	Note 38 - Cost of sales and services provided
Exhibit G - Foreign currency assets and liabilities	Note 39 - Foreign currency assets and liabilities
Exhibit H – Exhibit of expenses	Note 30 - Expenses by nature

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

37.	Investments in associates and joint ventures

Issuer and type of securities	Class	Amount	Value recorded as of 09.30.14	Value recorded as of 06.30.14	Market value as of 09.30.14	Issuer´s information					% of ownership interest in common stock
						Main activity	Place of business / country of incorporation	Last financial statement issued
						Main activity	Place of business / country of incorporation	Common stock (nominal value)	Income (loss) for the period	Shareholders' equity
Associates

Avenida Inc.	Shares	3,703,704	24,520	2,023	Not publicly traded	Investment	United States	(2) 2,001	(2) 211	1,596	24.79%
	Higher value		5,570	9,073
			30,090	11,096

Agromanagers S.A.	Shares	981,029	1,871	2,011	Not publicly traded	Investment	Argentina	2,094	(300)	3,994	46.84%
	Higher value		796	796
			2,667	2,807

Agrouranga S.A.	Shares	893,069	17,506	23,239	Not publicly traded	Agricultural	Argentina	2,500	(2,840)	49,004	35.72%
	Higher value		11,179	11,179
			28,685	34,418

Banco Crédito y Securitización S.A.	Shares	3,984,375	13,780	13,610	Not publicly traded	Financing	Argentina	62,500	(1) (2) 50,782	235,212	6.38%
			13,780	13,610

Banco Hipotecario S.A.	Shares	446,515,208	1,256,100	1,212,781	4.25	Financing	Argentina	1,500,000	503,677	4,350,612	29.77%
	Higher value	446,515,208	(1,932)	(2,613)
			1,254,168	1,210,168

Bitania 26 S.A.	Shares	4,724,203	12,765	12,308	Not publicly traded	Real Estate	Argentina	20,000	933	26,051	49.00%
	Goodwill		1,736	1,736
	Higher value		7,973	8,085
			22,474	22,129

IDB Development Corporation Ltd.	Shares	N/A	756,395	595,342	Not publicly traded	Management company	United States	N/A	112	410	49.00%
			756,395	595,342

Lipstick Management LLC	Shares	N/A	2,031	1,689	Not publicly traded	Management company	United States	N/A	(2) 112	(2) 410	49.00%
	Irrevocable contribution		-	50
			2,031	1,739

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

37.	Investments in associates and joint ventures (Continued)

Issuer and type of securities	Class	Amount	Value recorded as of 09.30.14	Value recorded as of 06.30.14	Market value as of 09.30.14	Issuer´s information					% of ownership interest in common stock
						Main activity	Place of business / country of incorporation	Last financial statement issued
						Main activity	Place of business / country of incorporation	Common stock (nominal value)	Income (loss) for the period	Shareholders' equity

Manibil S.A.	Shares	30,397,880	39,575	38,279	Not publicly traded	Real Estate	Argentina	62,037	2,645	80,766	49.00%
	Goodwill		10	10
			39,585	38,289

New Lipstick LLC	Shares	N/A	(218,389)	(193,590)	Not publicly traded	Real Estate	United States	N/A	(25,425)	(69,127)	49.87%
	Irrevocable contribution		1,467	16,667
			(216,922)	(176,923)

Supertel	Shares	N/A	5,017	31,577	Not publicly traded	Management company	United States	N/A	(2) 112	(2) 410	49.00%
			5,017	31,577

Tarshop S.A.	Shares	26,759,288	19,915	23,530	Not publicly traded	Consumer financing	Argentina	133,796	(18,098)	99,550	20.00%
	Higher value	26,759,288	(4,432)	(4,668)
			15,483	18,862
Total Associates			1,953,453	1,803,114

Joint Ventures

Baicom Networks S.A.	Shares	4,701,455	3,122	2,950	Not publicly traded	Real Estate	Argentina	9,403	(334)	6,245	50.00%
	Irrevocable contribution		-	340
	Higher value		276	276
			3,398	3,566

Cresca S.A.	Shares	N/A	85,822	23,630	Not publicly traded	Agricultural	Paraguay	67,979	(2,930)	486,036	50.00%
	Irrevocable contribution		49,199	40,251
			135,021	63,881

Cyrsa S.A.	Shares	8,748,269	43,436	152,229	Not publicly traded	Real Estate	Argentina	17,497	7,833	86,871	50.00%
	Higher value	8,748,269	2,753	2,753
			46,189	154,982

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

37.	Investments in associates and joint ventures (Continued)

Issuer and type of securities	Class	Amount	Value recorded as of 09.30.14	Value recorded as of 06.30.14	Market value as of 09.30.14	Issuer´s information					% of ownership interest in common stock
						Main activity	Place of business / country of incorporation	Last financial statement issued
						Main activity	Place of business / country of incorporation	Common stock (nominal value)	Income (loss) for the period	Shareholders' equity
Entertainment Holdings S.A.	Shares	22,395,574	24,414	19,092	Not publicly traded	Investment	Argentina	44,791	10,802	48,904	50.00%
	Irrevocable contribution		40	721
	Goodwill		26,647	26,647
	Higher value		(23,192)	(23,192)
			27,909	23,268

Entretenimiento Universal S.A.	Shares	300	(41)	(59)	Not publicly traded	Event organization and others	Argentina	(i) 12	679	(1,548)	50.00%
			(41)	(59)

Nuevo Puerto Santa Fe S.A.	Shares	138,750	20,179	21,566	Not publicly traded	Commercial	Argentina	27,750	2,476	40,359	50.00%
	Goodwill		1,323	3,980		real estate
	Higher value		3,936	1,323
			25,438	26,869

Puerto Retiro S.A.	Shares	23,067,250	15,192	13,868	Not publicly traded	Real Estate	Argentina	46,135	(906)	33,930	50.00%
	Irrevocable contribution		1,773	1,781
	Higher value		41,160	41,160
			58,125	56,809

Quality Invest S.A.	Shares	70,314,342	66,471	64,402	Not publicly traded	Real Estate	Argentina	140,629	3,138	132,941	50.00%
	Irrevocable contribution		-	500
	Goodwill		3,911	3,911
	Higher value		(2,887)	(2,886)
			67,495	65,927
Total Joint Ventures			363,534	395,243
Total investments in associates and joint ventures as of 09.30.14			(*) 2,316,987	-
Total investments in associates and joint ventures as of 06.30.14			-	(*) 2,198,357

(*) Include a balance of Ps. (216,963) and Ps. (176,982) reflecting interests in companies with negative equity as of September 30, 2014 and June 30, 2014, respectively, which is reclassified to “Provisions” (see Note 24).

(1)

Amounts correspond to the Financial Statements of Banco Hipotecario S.A. and Banco Crédito y Securitización S.A. prepared in accordance with the Central Bank of the Argentine Republic (“BCRA”) standards. For the purpose of the valuation of the investment in the Company, the adjustments necessary to adequate the financial statements to IFRS have been considered.

(2) Amounts stated in dollar US$.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

38.	Cost of sales and services provided

	Agricultural business												Urban properties and investments business
Description	Biological assets			Inventories			Agricultural services			Subtotal Agricultural business			Services and other operating costs		Trading properties			Hotels			Others		Subtotal Urban properties and investments business			Total as of 09.30.14			Total as of 09.30.13
Inventories as of 06.30.14		345,771			420,387			-			766,158			-		137,151			6,011			-		143,162		(i) (909,320)			(ii) 582,555

Initial recognition and changes in the fair value of biological assets and agriculture produce at the point of harvest		29,689			6,431			-			36,120			-		-			-			-					36,120			27,347

Changes in the net realizable value of agriculture produce after harvest		-			(22,021	)		-			(22,021	)		-		-			-			-		-			(22,021	)		(8,012	)

Decrease due to harvest		-			302,000			-			302,000			-		-			-			-		-			302,000			108,912
Acquisitions and classifications		1,345			367,475			(32,203	)		336,617			-		-			-			-		-			336,617			306,364
Consume		(176	)		(93,977	)		-			(94,153	)		-		-			-			-		-			(94,153	)		(57,412	)
Additions		-			-			-						-		57			-			-		57			57			1,378
Disposals		-			-			-						-		(795	)		114			-		(681	)		(681	)		(1,041	)
Expenses incurred		-			22,263			14,001			36,264			286,098		2,666			65,877			74		354,715			390,979			326,008
Currency translation adjustment		-			(8,434	)		-			(8,434	)		-		(4,785	)		-			-		(4,785	)		(13,219	)		(2,523	)
Inventories as of 09.30.14		(322,423	)		(405,003	)		-			(727,426	)		-		(131,387	)		(5,711	)		-		(137,098	)	(iii) (864,524)			(iv) (556,344)
Costs as of 09.30.14		54,206			589,121			(18,202	)		625,125			286,098		2,907			66,291			74		355,370			980,495			-
Costs as of 09.30.13		27,958			390,499			12,659			431,116			243,284		3,189			49,548			95		296,116			-			727,232

(i) Includes Ps. (10,952) corresponding to materials and inputs of IRSA as of June 30, 2014.

(ii) Includes Ps. (10,358) corresponding to materials and inputs of IRSA as of June 30, 2013.

(iii) Includes Ps. (12,422) corresponding to materials and inputs of IRSA as of September 30, 2014.

(iv) Includes Ps. (8,486) corresponding to materials and inputs of IRSA as of September 30, 2013.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

39.	Foreign currency assets and liabilities

Book amounts of foreign currency assets and liabilities as of September 30, 2014 and June 30, 2014 are as follows:

Items (3)	Amount of foreign currency (2)		Prevailing exchange rate (1)		Total as of 09.30.14		Amount of foreign currency (2)		Prevailing exchange rate (1)		Total as of 06.30.14
Assets
Restricted assets
US Dollar		6,783		8.33		56,504		6,372		8.033		51,189
Total restricted assets						56,504						51,189
Trade and other receivables
Uruguayan Peso		831		0.361		300		1,162		0.356		414
US Dollar		26,107		8.33		217,472		29,646		8.033		238,144
Euros		3		10.510		28		2		10.991		26
Swiss francs		27		9.051		242		27		9.051		242
Total trade and other receivables						218,042						238,826
Investment in financial assets
US Dollar		41,399		8.33		344,852		67,062		8.033		538,710
New Israel Shekel		-		-		-		5		2.377		13
Uruguayan Peso		1,052		13.498		14,206		39,905		0.356		14,206
Total Investment in financial assets						359,058						552,929
Derivative financial instruments
US Dollar		2,906		8.33		24,205		3,839		8.033		30,841
New Israel Shekel		4,406		2.261		9,964		-		-		-
Total Derivative financial instruments						34,169						30,841
Cash and cash equivalents
Uruguayan Peso		701		0.361		253		101		0.356		36
US Dollar		38,640		8.33		321,870		19,605		8.033		157,484
Euros		111		10.510		1,167		121		10.991		1,329
Swiss francs		-		-		-		1		9.051		1
New Israel Shekel		1,829		2.261		4,136		116,210		2.377		276,235
Pounds		2		13.498		31		2		13.913		32
Yenes		53		0.076		4		2		2.377		4
Brazilian Reais		1		3.350		4		3		3.550		9
Total Cash and cash equivalents						327,465						435,130

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

39.	Foreign currency assets and liabilities (Continued)

Items (3)	Amount of foreign currency (2)		Prevailing exchange rate (1)		Total as of 09.30.14		Total as of 06.30.14		Prevailing exchange rate (1)		Amount of foreign currency (2)
Liabilities
Trade and other payables
Uruguayan Peso		21,064		0.382		8,036		1,520		0.382		580
US Dollar		16,456		8.43		138,725		18,030		8.133		146,635
Euros		1		10.657		3		1		11.148		3
Total trade and other payables						146,764						147,218
Borrowings
US Dollar		675,593		8.43		5,695,251		712,773		8.133		5,796,986
Total borrowings						5,695,251						5,796,986
Derivative financial instruments
US Dollar		1,470		3.8		5,587		204		3.69		753
New Israel Shekel		152,389		2.261		344,551		134,980		2.377		320,847
Total Derivative financial instruments						350,138						321,600
Provisions
US Dollar		200		8.43		1,686		200		8.133		1,627
Total provisions						1,686						1,627

(1)	Exchange rate as of September 30, 2014 and June 30, 2014 according to Banco Nación Argentina records.

(2)	Considering foreign currencies those that differ from Company’s functional currency at each period/year-end.

(3)	The Company uses derivative instruments as complement in order to reduce its exposure to exchange rate movements. See Note 20.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

40.	CNV General Ruling No. 629/14 – Storage of documentation

On August 14, 2014, the CNV issued General Ruling N° 629 whereby it introduced amendments to rules related to storage and conservation of corporate books, accounting books and commercial documentation. In this sense, it should be noted that the Group has entrusted the storage of certain non-sensitive and old information to the following providers:

Documentation storage provider		Location
Bank S.A.		Gral. Rivas 401, Avellaneda, Province of Buenos Aires
		Ruta Panamericana Km 37,5, Garín, Province of Buenos Aires
		Av. Fleming 2190, Munro, Province of Buenos Aires
		Carlos Pellegrini 1401, Avellaneda, Province of Buenos Aires

Iron Mountain Argentina S.A.		Av. Amancio Alcorta 2482, Autonomous City of Buenos Aires
		Pedro de Mendoza 2143, Autonomous City of Buenos Aires
		Saraza 6135, Autonomous City of Buenos Aires
		Azara 1245, Autonomous City of Buenos Aires
		Polígono industrial Spegazzini, Autopista Ezeiza Km 45, Cañuelas, Province of Buenos Aires
		Cañada de Gomez 3825, Autonomous City of Buenos Aires

It is further noted that a detailed list of all documentation held in custody by providers, as well as documentation required in section 5 a.3) of section I, Chapter V, Title II of the RULES (2013 as amended) are available at the registered office.

On February 5, 2014 there was a widely known fire in Iron Mountain’s warehouse. To the date of these financial statements, the Group is waiting for the company that experienced the fire to report whether the documentation submitted has been actually affected by the fire and its condition after the accident. Nevertheless, based on the internal review carried out by the Group, duly reported to the CNV on February 12, 2014, the information kept at the Iron Mountain premises that were on fire do not appear to be sensitive or capable of affecting normal operations.

41.	Group of assets held for sale

Assets and liabilities related to the operation of the building located in 183 Madison Av., NY, United States, owned by the subsidiary of the Group, Rigby 183 LLC, and that form part of the international business segment, have been reported in the balance sheet as of June 30, 2014 as available for sale as per the contract for the sale of the building entered on May 16, 2014. The transaction is subject to compliance with certain conditions which are expected to be complied with in September 2014. Upon completion of such conditions, the company should deposit in an escrow account the amount of US$ 1 million for a term of six months to cover potential hidden defects.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

41.	Group of assets held for sale (Continued)

Pursuant to IFRS 5, assets and liabilities available for sale have been valued at the lower of their book value or fair value less selling cost. Since fair value is higher than book value of the pool of assets available for sale including some goodwill related to the acquisition, no impairment has been recorded as of June 30, 2014.

The following table shows the main assets and liabilities held for sale:

Group’s assets held for sale

			06.30.14
Investment properties			1,098,990
Intangible assets - Goodwill			77,086
Restricted assets			163,501
Trade and other receivables			17,990
Derivative financial instruments			299
Total			1,357,866

Group’s liabilities directly associated to assets classified as held for sale

			06.30.14
Trade and other payables			170,245
Deferred income tax liabilities			33,346
Borrowings			603,021
Total			806,612

As indicated in Note 4, on September 29, 2014, the sale of the Madison 183 Building was finalized in the amount of US$ 185 million. Proceeds from the sale were Ps. 1,535 million, while associated costs amounted to Ps. 1,238 million, thus making a gain on the transaction of Ps. 296.5 million, included in the line item Gain from disposal of investment properties in the Income Statement.

Upon the sale, the Company deposited Ps. 8.7 million under escrow to cover for potential additional costs that may arise in relation to the transaction, which amount is accounted for under Restricted assets.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

42.	Subsequent events

· On October 8, 2014, the Group through IRSA signed the transfer deed for the sale of the 22th and 23th floors of the Building Bouchard 551. The total price of the transaction was Ps. 168.7 million. Such transaction generated a gain before tax of approximately Ps. 151.4 million.

· On October 17, 2014, Rigby 183 LLC reduced its capital stock by distributing among existing shareholders, proportionally to their shareholdings, the gain made on the sale of the Madison building. The total amount distributed is US$ 103.8 million, of which the Group received US$ 77.4 million (US$ 26.5 million through IRSA International and US$ 50.9 million through IMadison LLC) and US$ 26.4 were distributed to other shareholders.

· On October 22, 2014, the Group through IRSA signed the transfer deed for the sale of the 10th floor and two parking units of the Building Maipú 1300 and one parking unit of the building Libertador 498. The total price of the transaction was US$ 1.4 million.

· On October 24, 2014, the Tel Aviv Stock Exchange allowed Dolphin Netherlands B.V. to release additional shares of IDBD; therefore, 50,061,592 IDBD shares and 335,715 warrants of Series 2 and 3 remained subject to the lock-up arrangement indicated above.

· On October 28, 2014, the Group through IRSA signed the transfer deed for the sale of 9th, 10th and 11th floors of the building Bouchard 551. The total price of the transaction was Ps. 279.4 million. Such transaction generated a gain before tax of approximately Ps. 243.3 million.

· On October 30, 2014, the Group – through its subsidiaries — subscribed an additional sum of US$ 21 million in Dolphin Fund Ltd. (“Dolphin”). Such amount will be allocated to increase Dolphin’s investment in IDB Development Corporation Ltd.

· On October 31, 2014, the Annual Shareholders’ Meeting of the Company was held for the fiscal year ended June 30, 2014 where it was unanimously approved to adjourn the meeting to November 14, 2014.

· During October, Cresud, through various open market transactions, has acquired 37,159 ADRs, representing 10 common shares, for a total amount of Ps. 0.49 million.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

42.	Subsequent events (Continued)

· On November 2, 2014, Dolphin Netherlands B.V. exercised 15,998,797 warrants of Series 1 of IDBD. As a result of this exercise, as of the date of these consolidated financial statements, DN B.V. held an aggregate amount of 92,618,950 shares, 16,170,392 warrants Series 2 and 15,998,787 warrants Series 3 of IDBD, with a non-diluted equity interest in IDBD of 31.26% and a fully diluted equity interest of 32.38%.

· On November 5, 2014, the Group executed a conveyance deed evidencing a barter and mortgage transaction in favor of Darío Palombo (acting as Trustee of “Fideicomiso Esquina Guemes”) to convey title on four plots of land located in Avellaneda district. The agreement provides for the development by the Trust of two building construction undertakings. In consideration for such work, the compensation agreed included the amount of US$ 0.01 million and delivery, within 24 months as from such agreement execution, of two functional units for commercial purposes and one functional unit for office purposes (the non-monetary compensation was valued at US$ 0.7 million).

· On November 7, 2014, the Group through IRSA signed the transfer deed for the sale of the 21th floor of the Building Bouchard 551. The total price of the transaction was Ps. 75.6 million. Such transaction generated a gain before tax of approximately Ps. 63.9 million.

· Due to changes in the business framework Tarshop is going through a restructuring process involving its operations, with the addition of a Visa / Tarshop marketing scheme to its financial product range. In this respect, on September 5, 2014, it entered into an agreement with Visa Argentina S.A. to roll out the card indicated above, which forms part of the business plan approved by the Board, in force as from this year. In line with the descriptions above, the Group, through APSA, approved, together with our associate Banco Hipotecario S.A., a capitalization in the total amount of Ps. 110 million, to be carried out in proportion to their respective shareholdings, with an initial irrevocable capital contribution for such amount.

Free translation from the original prepared in Spanish for publication in Argentina

REVIEW REPORT ON THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

To the Shareholders, President and Directors of

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria

Legal address: Moreno 877 – 23° floor

Autonomous City Buenos Aires

Tax Code No. 30-50930070-0

Introduction

We have reviewed the unaudited condensed interim consolidated financial statements attached of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria and its subsidiaries (hereinafter “the Company”) which included the unaudited condensed interim consolidated statements of financial position as of September 30, 2014, the unaudited condensed interim consolidated statement of income and comprehensive income for the three-month period ended September 30, 2014, the unaudited condensed interim consolidated statement of changes in shareholders’ equity and the unaudited condensed interim consolidated statement of cash flows for the three-month period ended September 30, 2014 and selected explanatory notes.

The balances and other information corresponding to the fiscal year ended June 30, 2014 and the interim periods within that fiscal period are an integral part of these financial statements and, therefore, they should be considered in relation to these financial statements.

Management responsibility

The Board of Directors of the Company is responsible for the preparation and presentation of these unaudited condensed interim consolidated financial statements in accordance with the International Financial Reporting Standards , adopted by the Argentine Federation of Professional Councils in Economic Sciences (FACPCE) as professional accounting standards and added by the National Securities Commission (CNV) to its regulations as approved by the International Accounting Standard Board (IASB) and , for this reason, is responsible for the preparation and presentation of the unaudited condensed interim consolidated financial statements mentioned in first paragraph according to the International Accounting Standard No 34 "Interim Financial Reporting" (IAS 34). Our responsibility is to express a conclusion based on the review that we have performed with the scope detailed in paragraph “Scope of our review”.

Free translation from the original prepared in Spanish for publication in Argentina

REVIEW REPORT ON THE AUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

Scope of our review

Our review was limited to the application of the procedures established in the International Standard on Review Engagements ISRE 2410 "Review of interim financial information performed by the independent auditor of the entity", which was adopted as a review standard in Argentina through Technical Resolution No. 33 of the FACPCE as approved by the International Auditing and Assurance Standards Board (IAASB). A review of interim financial information consists of making inquiries of persons responsible for the preparation of the information included in the unaudited condensed interim consolidated financial statements, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the unaudited condensed interim consolidated statement of financial position, the unaudited condensed interim consolidated statement of income and comprehensive income, the unaudited condensed interim consolidated statement of changes in shareholders’ equity and the unaudited condensed interim consolidated statement of cash flow of the Company.

Conclusion

Nothing came to our attention as a result of our review that caused us to believe that these unaudited condensed interim consolidated financial statements mentioned in the first paragraph of this report have not been prepared in all material respects in accordance with the regulations of the International Accounting Standard No. 34.

Report on compliance with current regulations

In accordance with current regulations, we report about Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria that:

the unaudited condensed interim consolidated financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria are recorded in the "Inventory and Balance Sheet Book", and comply, as regards those matters that are within our competence, with the provisions set forth in the Commercial Companies Law and in the corresponding resolutions of the National Securities Commission;

the unaudited condensed interim separate financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria arise from accounting records carried in all formal aspects in conformity with the applicable legal provisions;

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Consolidated Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

we have read the Business Summary (“Reseña Informativa”) on which, as regards these matters that are within our competence, we have no observations to make;

as of September 30, 2014, the debt of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria owed in favor of the Argentina Integrated Pension System which arises from accounting records and submissions amounted to Ps. 3,327,425 which was no callable at that date.

Autonomous City of Buenos Aires, November 11, 2014

PRICE WATERHOUSE & Co. S.R.L.

(Partner)

C.P.C.E.C.A.B.A. Tº 1 Fº 17

Dr. Carlos Martín Barbafina

Public Accountant (U.C.A.)

C.P.C.E.C.A.B.A. Tº 175 Fº 65

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Separate Financial Statements as of September 30, 2014 and June 30, 2014 and for the three-month periods ended September 30, 2014 and 2013

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Separate Statements of Financial Position

as of September 30, 2014 and June 30, 2014

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note		09.30.14		06.30.14
ASSETS
Non-current assets
Investment properties		7	15,210		20,184
Property, plant and equipment		8	431,009		422,113
Intangible assets		9	18,188		18,355
Biological assets		10	296,938		301,980
Investments in subsidiaries, associates and joint ventures		6	2,617,558		2,901,451
Deferred income tax assets		21	347,113		302,991
Income tax and minimum presumed income tax credits			51,935		66,052
Trade and other receivables		13	12		-
Total Non-current assets			3,777,963		4,033,126
Current assets
Biological assets		10	75,121		188,231
Inventories		11	239,502		217,078
Income tax and minimum presumed income tax credits			9,805		165
Trade and other receivables		13	302,356		341,158
Derivative financial instruments		15	2,229		405
Investment in financial assets		14	292,044		258,774
Cash and cash equivalents		16	120,899		53,472
Total Current assets			1,041,956		1,059,283
TOTAL ASSETS			4,819,919		5,092,409
SHAREHOLDERS’ EQUITY
Share capital			487,929		490,997
Treasury stock			13,634		10,566
Inflation adjustment of share capital			63,647		64,047
Inflation adjustment of treasury stock			1,778		1,378
Share premium			773,079		773,079
Cost of treasury stock			(87,074	)	(54,876	)
Share warrants			106,264		106,264
Changes in interest in subsidiaries			13,606		(15,429	)
Cumulative translation adjustment			625,232		633,607
Equity-settled compensation			82,097		70,028
Legal reserve			81,616		81,616
Reserve for new developments			17,065		17,065
Special reserve			633,940		633,940
Reserve for the acquisition of securities issued by the Company			200,000		200,000
Retained earnings			(1,188,433	)	(1,066,428	)
TOTAL SHAREHOLDERS’ EQUITY			1,824,380		1,945,854
LIABILITIES
Non-current liabilities
Trade and other payables		17	1,094		1,170
Borrowings		20	1,847,994		1,407,570
Provisions		19	3,303		1,687
Total Non-current liabilities			1,852,391		1,410,427
Current Liabilities
Trade and other payables		17	147,030		116,702
Payroll and social security liabilities		18	24,709		52,774
Borrowings		20	951,885		1,522,853
Derivative financial instruments		15	19,515		38,441
Provisions		19	9		80
Minimum Presumed Income tax			-		5,278
Total Current liabilities			1,143,148		1,736,128
TOTAL LIABILITIES			2,995,539		3,146,555
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES			4,819,919		5,092,409

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.


				Eduardo S. Elsztain President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Separate Statements of Income

for the three-month periods ended September 30, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note		09.30.14			09.30.13
Revenues		23	321,382			265,720
Costs		24	(408,842	)		(299,764	)
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest			144,537			50,975
Changes in the net realizable value of agricultural produce after harvest			(14,822	)		(4,284	)
Gross profit			42,255			12,647
Gain from disposal of farmlands			195,875			-
General and administrative expenses		25	(24,677	)		(31,422	)
Selling expenses		25	(54,227	)		(32,909	)
Other operating results, net		27	8,995			(2,689	)
Profit / (Loss) from operations			168,221			(54,373	)
Share of (loss) / profit of subsidiaries, associates and joint ventures		6	(208,060	)		18,490
Loss before financing and taxation			(39,839	)		(35,883	)
Finance incomes		28	10,585			12,163
Finance costs		28	(145,558	)		(149,681	)
Other financial results		28	(9,317	)		14,297
Financial results, net		28	(144,290	)		(123,221	)
Loss before Income tax			(184,129	)		(159,104	)
Income tax gain		21	62,124			61,255
Loss for the period			(122,005	)		(97,849	)


Loss per share for the period:
Basic			(0.25	)		(0.20	)
Diluted			(0.25	)	(i)	(0.20	)

(i) Due to the loss for the period, there is no diluted effect on this result.

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.


				Eduardo S. Elsztain President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Separate Statements of Comprehensive Income

for the three-month periods ended September 30, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	09.30.14		09.30.13
Loss for the period	(122,005	)	(97,849	)
Other Comprehensive Income:
Items that may be reclassified subsequently to profit or loss:
Currency translation adjustment from subsidiaries, associates and joint ventures	(8,375	)	71,590
Other comprehensive (loss) / income for the period (i)	(8,375	)	71,590
Total comprehensive loss for the period	(130,380	)	(26,259	)

(i)

Items included in other comprehensive income do not generate any impact on the income tax.

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.


				Eduardo S. Elsztain President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Separate Statements of Changes in Shareholders’ Equity

for the three-month periods ended September 30, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Share capital			Treasury stock		Inflation adjustment of share capital			Inflation adjustment of treasury stock		Share premium		Cost of treasury stock			Share warrants		Subtotal			Changes in interest in subsidiaries			Cumulative translation adjustment			Equity-settled compensation		Legal reserve		Reserve for new developments		Special reserve (1)		Reserve for the acquisition of securities issued by the Company		Retained earnings			Total shareholders’ equity
Balance as of July 1, 2014		490,997			10,566		64,047			1,378		773,079		(54,876	)		106,264		1,391,455			(15,429	)		633,607			70,028		81,616		17,065		633,940		200,000		(1,066,428	)		1,945,854
Loss for the period		-			-		-			-		-		-			-		-			-			-			-		-		-		-		-		(122,005	)		(122,005	)
Other comprehensive loss for the period		-			-		-			-		-		-			-		-			-			(8,375	)		-		-		-		-		-		-			(8,375	)
Total comprehensive loss for the period		-			-		-			-		-		-			-		-			-			(8,375	)		-		-		-		-		-		(122,005	)		(130,380	)
Equity-settled compensation		-			-		-			-		-		-			-		-			-			-			12,069		-		-		-		-		-			12,069
Purchase of treasury stock		(3,068	)		3,068		(400	)		400		-		(32,198	)		-		(32,198	)		-			-			-		-		-		-		-		-			(32,198	)
Changes in interest in subsidiaries		-			-		-			-		-		-			-		-			29,035			-			-		-		-		-		-		-			29,035
Balance as of September 30, 2014		487,929			13,634		63,647			1,778		773,079		(87,074	)		106,264		1,359,257			13,606			625,232			82,097		81,616		17,065		633,940		200,000		(1,188,433	)		1,824,380

(1) Corresponding to General Resolution 609/12 of the National Securities Commission. See Note 22.

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.


				Eduardo S. Elsztain President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Separate Statements of Changes in Shareholders’ Equity

for the three-month periods ended September 30, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Share capital		Treasury stock		Inflation adjustment of share capital		Inflation adjustment of treasury stock		Share premium		Cost of treasury stock		Share warrants		Subtotal		Changes in interest in subsidiaries			Cumulative translation adjustment		Equity-settled compensation			Legal reserve		Reserve for new developments		Special reserve (1)		Retained earnings			Total shareholders’ equity
Balance as of July 1, 2013		496,562		5,001		64,773		652		773,079		-		106,264		1,446,331		(21,996	)		2,284		8,345			46,835		337,065		695,628		(26,522	)		2,487,970
Loss for the period		-		-		-		-		-		-		-		-		-			-		-			-		-		-		(97,849	)		(97,849	)
Other comprehensive income for the period		-		-		-		-		-		-		-		-		-			71,590		-			-		-		-		-			71,590
Total comprehensive income / (loss) for the period		-		-		-		-		-		-		-		-		-			71,590		-			-		-		-		(97,849	)		(26,259	)
Equity-settled compensation		-		-		-		-		-		-		-		-		-			-		5,860			-		-		-		-			5,860
Changes in interest in subsidiaries		-		-		-		-		-		-		-		-		(208	)		-		-			-		-		-		-			(208	)
Cancellation of BrasilAgro warrants		-		-		-		-		-		-		-		-		-			-		(288	)		-		-		-		-			(288	)
Balance as of September 30, 2013		496,562		5,001		64,773		652		773,079		-		106,264		1,446,331		(22,204	)		73,874		13,917			46,835		337,065		695,628		(124,371	)		2,467,075

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.


				Eduardo S. Elsztain President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Condensed Interim Separate Statements of Cash Flows

for the three-month periods ended September 30, 2014 and 2013

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note		09.30.14		09.30.13
Operating activities:
Cash generated from operations		16	70,279		71,179
Net cash generated from operating activities			70,279		71,179
Investing activities:
Proceeds from sale of interest in companies			55,314		274
Capital contribution to subsidiaries, associates and joint ventures			-		(3,918	)
Purchases of investment properties		7	(148	)	(878	)
Proceeds from sale of investment properties			7		64
Purchases of property, plant and equipment		8	(14,504	)	(11,092	)
Proceeds from sale of property, plant and equipment			92		633
Proceeds from sale of farmlands			161,712		-
Purchase of intangible assets		9	(27	)	(17	)
Purchase of investment in financial assets			(1,076,727	)	(125,326	)
Proceeds from disposals of investments in financial assets			1,112,566		136,500
Loans granted to subsidiaries, associates and joint ventures			-		(14,280	)
Loans repayments received from subsidiaries, associates and joint ventures			38,460		734
Dividends received			38,115		2,738
Cash incorporated by merger			508		-
Net cash generated from (used in) investing activities			315,368		(14,568	)
Financing activities:
Purchase of treasury stock			(32,198	)	-
Proceeds from issuance of non-convertible notes			455,038		-
Repayment of non-convertible notes			(538,081	)	(53,651	)
Proceeds from borrowings			84		72,655
Repayment of derivative financial instruments			(47,170	)	-
Repayment of borrowings			(99,957	)	(22,368	)
Repayment of borrowings from subsidiaries, associates and joint ventures			-		(186	)
Repayment of warrants			-		(288	)
Repayment of seller financing			(98	)	(48	)
Interest paid			(56,929	)	(50,268	)
Net Cash flows used in financing activities			(319,311	)	(54,154	)
Net increase in cash and cash equivalents			66,336		2,457
Cash and cash equivalents at beginning of the period		16	53,472		36,739
Foreign exchange gain on cash and cash equivalents			1,091		1,146
Cash and cash equivalents at the end of the period			120,899		40,342

The accompanying notes are an integral part of these Unaudited Condensed Interim Separate Financial Statements.


				Eduardo S. Elsztain President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

1.	General information

1.1	The Company’s business and general information

Cresud is a company organized and domiciled in the Republic of Argentina. The address of its registered office is Moreno 877, 23rd Floor, Buenos Aires, Argentina.

These Unaudited Condensed Interim Separate Financial Statements have been approved for issue by the Board of Directors on November 11, 2014.

2.	Basis of preparation of the Unaudited Condensed Interim Separate Financial Statements

2.1.	Basis of preparation

These Unaudited Condensed Interim Separate Financial Statements of the Company have been prepared in accordance with Technical Resolutions No. 26 (RT 26) of Argentine Federation of Professional Councils of Economic Sciences (“F.A.C.P.C.E.”, as per its Spanish acronym) and IAS 34 “Interim Financial Reporting”.

Furthermore, some additional issues were included as required by the Business Companies Act and/or regulations of the CNV, including supplementary information provided in the last paragraph of article 1, Chapter III, Title IV of General Ruling 622/13. Such information is included in the Notes to the Unaudited Condensed Interim Separate Financial Statements according to IFRS.

These Unaudited Condensed Interim Separate Financial Statements should be read together with the annual audited Separate Financial Statements of the Company as of June 30, 2014. These Unaudited Condensed Interim Separate Financial Statements are expressed in thousands of Argentine Pesos.

The Unaudited Condensed Interim Separate Financial Statements for the three-month periods ended September 30, 2014 and 2013 have not been audited. The Company´s management believes they include all necessary adjustments to fairly present the results of each period. Results for the three-month periods ended September 30, 2014 and 2013 do not necessarily reflect proportionally the Company’s results for the complete fiscal years.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation of the Unaudited Condensed Interim Separate Financial Statements (Continued)

2.2.	Significant accounting policies

The accounting policies applied in the preparation of these Unaudited Condensed Interim Separate Financial Statements are consistent with those applied in the preparation of the information under RT 26 as of June 30, 2014 and are based on those IFRS in force as of June 30, 2014 (except for the accounting of investments in subsidiaries, associates and joint ventures, which are accounted for under the equity method as required in RT 26). Furthermore, the most significant accounting policies are described in the annual Consolidated Financial Statements.

2.3.	Use of estimates

The preparation of financial statements at a certain date requires the Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Future results might differ from the estimates and evaluations made at the date of preparation of these financial statements.

In the preparation of these Unaudited Condensed Interim Separate Financial Statements, the significant judgments made by Management in applying the Company’s accounting policies and the main sources of uncertainty were the same applied by the Company in the preparation of the annual separate financial statements for the fiscal year ended June 30, 2014, except for changes in provisions for income tax, for legal claims and for doubtful accounts.

2.4.	Merger with Cactus Argentina S.A.

During September 2014, the Company entered into a pre-merger commitment with its wholly-owned subsidiary Cactus Argentina S.A. whereby the Company would be the absorbent Company and Cactus would be the absorbed Company.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

2.	Basis of preparation of the Unaudited Condensed Interim Separate Financial Statements (Continued)

The following table shows a summary of the effect that Cactus Argentina S.A.'s merge would have had on the Statements of financial position as of June 30, 2014.

Caption	Issued Financial Statements as of 06.30.14 Ps.		Cactus as of 06.30.14 Ps.		Eliminations / Reclassifications as of 06.30.14 Ps.			Financial Statements considering the merger as of 06.30.14 Ps.
Non-current assets		4,033,126		56,430		(113,876	)		3,975,680
Current assets		1,059,283		68,547		(34,483	)		1,093,347
Total assets		5,092,409		124,977		(148,359	)		5,069,027
Non-current liabilities		1,410,427		777		(398	)		1,410,806
Current liabilities		1,736,128		7,299		(31,060	)		1,712,367
Total liabilities		3,146,555		8,076		(31,458	)		3,123,173
Shareholders’ Equity		1,945,854		116,901		(116,901	)		1,945,854

The following table shows a summary of the effect that Cactus Argentina S.A.'s merge would have had on the Statements of Income and Cash Flows as of September 30, 2013.

	Issued Financial Statements as of 09.30.13 Ps.			Cactus as of 09.30.13 Ps.			Eliminations / Reclassifications as of 09.30.13 Ps.			Financial Statements considering the merger as of 09.30.13 Ps.
Caption	Information about profit / (loss) for the three-month period
Revenues		265,720			3,906			(3,820	)		265,806
Costs		(299,764	)		(4,079	)		3,820			(300,023	)
Gross Profit		12,647			(173	)		-			12,474
Loss from Operations		(54,373	)		(460	)		-			(54,833	)
Loss for the period		(97,849	)		(1,795	)		1,795			(97,849	)
	Information about cash flow for the three-month period
Net cash generated from operating activities		71,179			(4,466	)		-			66,713
Net cash used in investing activities		(14,568	)		(1,605	)		1,520			(14,653	)
Net cash used in financing activities		(54,154	)		6,120			(1,520	)		(49,554	)

2.5.	Comparative information

Amounts as of September 30, 2013 and June 30, 2014, which are disclosed for comparative purposes have been taken from the separate financial statements as of such dates. The financial statements originally issued have been subject to certain reclassifications required in order to present these figures comparatively with this period.

During the period beginning on September 30, 2013 and ended September 30, 2014, the Argentine Peso devalued against the US$ and other currencies by around 45.5%, which has an impact in comparative information presented in these Financial Statements, due mainly to the currency exposure of our income and costs, and our assets and liabilities, in foreign currency as detailed in Note 34.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

3.	Seasonal effects on operations

The operations of the Company are also subject to seasonal effects. The harvests and sale of grains (corn, soybean and sunflower) generally take place between February and June every year. Wheat is generally harvested between November and January every year. However, milk production is generally larger during the second quarter, when conditions are more favorable. As a result, there may be material fluctuations in the agricultural business results each quarter.

4.	Acquisitions and disposals

On September 30, 2013, the Company sold receivables from Agropecuaria Acres de Sud S.A., Yuchán Agropecuaria S.A., Yatay Agropecuaria S.A. and Ombú Agropecuaria S.A. for a total amount of US$ 12.4 million, which were capitalized on that same date.

On July 31, 2014 the Company transferred to IRSA an area of 1,058 hectares located in Luján, in Buenos Aires Province. The amount of the transaction was Ps. 210 million, which has already been paid in full.

See summary of acquisitions and additional disposals of the Company for the three-month period ended September 30, 2014 in Note 4 to Unaudited Condensed Interim Consolidated Financial Statements.

5.	Financial risk management and fair value estimates

5.1.

Financial risk

The Company’s activities are exposed to several financial risks, namely: market risk (including exchange rate risk, interest rate risk and price risk), credit risk, liquidity risk and capital risk.

Note 5 to the annual Consolidated Financial Statements provide information on financial risk management as of June 30, 2014 and 2013. Since June 30, 2014 there have been no changes in the risk management or risk management policies applied by the Company.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

5.	Financial risk management and fair value estimates (Continued)

5.2. Fair value estimates

Since June 30, 2014 there have been no significant changes in business or economic circumstances affecting the fair value of the Company's financial assets or liabilities (either measured at fair value or amortized cost). Nor there have been transfers between the several tiers used in estimating the fair value of the Company’s financial instruments, or reclassifications among their respective categories.

6.	Information about principal subsidiaries, associates and joint ventures

The Company conducts its business through several subsidiaries, associates and joint ventures.

Set out below are the changes in Company’s investment in subsidiaries, associates and joint ventures for the three-month period ended September 30, 2014 and for the fiscal year ended June 30, 2014:

	September 30, 2014			June 30, 2014
Beginning of the period / year		2,901,451			2,872,627
Incorporated by merger with Cactus		(63,671	)		-
Acquisition of subsidiaries (i)		6,629			(8,657	)
Capital contribution		-			79,411
Disposal of interest in subsidiaries		(11,879	)		14,862
Share of loss		(208,060	)		(528,037	)
Currency translation adjustments		(8,375	)		631,323
Equity-settled compensation		6,703			30,571
Dividends distributed		(5,852	)		(210,299	)
Reimbursement of expired dividends		-			1,067
Intergroup transactions		612			18,583
End of the period / year		2,617,558			2,901,451

(i)

Includes the effect of changes in subsidiaries as consequence of repurchase of equity interest.

See changes in Company’s investment in associates and joint ventures for the three-month period ended September 30, 2014 and for the year ended June 30, 2014 in Notes 8 and 9 to the Unaudited Condensed Interim Consolidated Financial Statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

7.	Investment properties

Changes in Company’s investment properties for the three-month period ended September 30, 2014 and for the year ended June 30, 2014 were as follows:

	September 30, 2014			June 30, 2014
Beginning of the period / year		20,184			25,838
Additions		148			2,106
Reclassification to property, plant and equipment		(5,021	)		(7,293	)
Disposals		(7	)		(79	)
Depreciation charges (i)		(94	)		(388	)
End of the period / year		15,210			20,184

(i)

Depreciation charges of investment property were included in “Costs” in the Income Statement (Note 25).

The following amounts have been recognized in the income statement:

	September 30, 2014		September 30, 2013
Rental and service incomes		3,634		2,124
Direct operating expenses		1,871		1,158

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

8.	Property, plant and equipment

Changes in Company’s property, plant and equipment ("PPE") for the three-month period ended September 30, 2014 and for the fiscal year ended June 30, 2014 were as follows:

	Owner-occupied farmland (ii)			Other buildings and facilities			Furniture and fixtures			Machinery and equipment			Vehicles			Total
As of June 30, 2013:
Costs		408,158			819			1,280			23,020			6,655			439,932
Accumulated depreciation		(32,596	)		(658	)		(876	)		(14,630	)		(3,185	)		(51,945	)
Net book amount		375,562			161			404			8,390			3,470			387,987
Year ended June 30, 2014:
Opening net book amount		375,562			161			404			8,390			3,470			387,987
Additions		32,369			10			122			2,883			2,371			37,755
Reclassifications to investment properties		7,293			-			-			-			-			7,293
Disposals		(665	)		-			(3	)		(5	)		(220	)		(893	)
Depreciation charges (i)		(7,108	)		(51	)		(73	)		(1,757	)		(1,040	)		(10,029	)
Closing net book amount		407,451			120			450			9,511			4,581			422,113
Period ended September 30, 2014:
Opening net book amount		407,451			120			450			9,511			4,581			422,113
Residual value from merger with Cactus		1,713			-			5			172			-			1,890
Additions		13,718			15			20			1,034			60			14,847
Reclassifications of investment properties		5,021			-			-			-			-			5,021
Disposals		(9,854	)		-			-			(10	)		(49	)		(9,913	)
Depreciation charges (i) (Note 25)		(2,092	)		(9	)		(19	)		(504	)		(325	)		(2,949	)
Closing net book amount		415,957			126			456			10,203			4,267			431,009
As of September 30, 2014:
Costs		459,964			844			1,722			28,359			8,549			499,438
Accumulated depreciation		(44,007	)		(718	)		(1,266	)		(18,156	)		(4,282	)		(68,429	)
Net book amount		415,957			126			456			10,203			4,267			431,009

(i)

For the three-month period ended September 30, 2014, the depreciation expense of property, plant and equipment has been charged as follows: Ps. 398 under the line item “General and administrative expenses”, Ps. 22 under the line item “Selling expenses” and Ps. 2,529 under the line item “Cost” in the Income Statement. For the fiscal year ended June 30, 2014, the depreciation expense of property, plant and equipment has been charged as follows: Ps. 1,480 under the line item “General and administrative expenses”, Ps. 75 under the line item “Selling expenses” and Ps. 8,474 under the line item “Cost” in the Income Statement.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

9.	Intangible assets

Changes in the Company’s intangible assets for the three-month period ended September 30, 2014 and for the year ended June 30, 2014 were as follows:

	Computer software			Rights of use			Total
Opening net book amount		91			19,065			19,156
Additions		37			-			37
Amortization charges (i)		(86	)		(752	)		(838	)
Net book amount as of June 30, 2014		42			18,313			18,355
Additions		27			-			27
Amortization charges (i)		(6	)		(188	)		(194	)
Net book amount as of September 30, 2014		63			18,125			18,188
Costs		436			19,818			20,254
Accumulated depreciation		(373	)		(1,693	)		(2,066	)
Net book amount as of September 30, 2014		63			18,125			18,188

(i)

Amortization charges are included in “General and administrative expenses” in the Income Statement. There is no impairment charges for any of the periods presented.

10.	Biological assets

Changes in the Company’s biological assets for the three-month period ended as of September 30, 2014 and for the year ended June 30, 2014 were as follows:

	September 30, 2014			June 30, 2014
Beginning of the period / year		490,211			274,834
Increase due to purchases		1,345			37,482
Initial recognition and changes in the fair value of biological assets		128,660			610,162
Decrease due to harvest		(193,619	)		(355,887	)
Decrease due to sales		(54,206	)		(75,900	)
Decrease due to consumption		(397	)		(480	)
Incorporated by merger		65			-
End of the period / year		372,059			490,211

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

10. Biological assets (Continued)

Biological assets as of September 30, 2014 and June 30, 2014 were as follows:

	Classification	September 30, 2014		June 30, 2014
Non-current
Cattle for dairy production	Production		37,384		37,217
Breeding cattle	Production		249,498		254,398
Other cattle	Production		5,595		5,682
Others biological assets	Production		4,461		4,683
Non-current biological assets			296,938		301,980
Current
Cattle for dairy production	Consumable		183		46
Cattle for sale	Consumable		29,055		47,702
Crops fields	Consumable		45,175		139,822
Other cattle	Consumable		708		661
Current biological assets			75,121		188,231
Total biological assets			372,059		490,211

The following tables present the Company’s biological assets that are measured at fair value as of September 30, 2014 and June 30, 2014 and their allocation to the fair value hierarchy:

	September 30, 2014
	Level 1		Level 2	Level 3	Total
Cattle for dairy production	-		37,567	-	37,567
Breeding cattle and cattle for sale	-		278,553	-	278,553
Other cattle	-		6,303	-	6,303
Other biological assets (i)	4,461		-	-	4,461
Crops fields	44,655	(i)	-	520	45,175
Total	49,116		322,423	520	372,059

(i)

Biological assets that have no significant growth, are valued at cost, since it is considered that this value is similar to fair value.

	June 30, 2014
	Level 1		Level 2	Level 3	Total
Cattle for dairy production	-		37,263	-	37,263
Breeding cattle and cattle for sale	-		302,100	-	302,100
Other cattle	-		6,343	-	6,343
Other biological assets (i)	4,683		-	-	4,683
Crops fields	8,561	(i)	-	131,261	139,822
Total	13,244		345,706	131,261	490,211

(i)

Biological assets that have no significant growth, are valued at cost, since it is considered that this value is similar to fair value.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

10. Biological assets (Continued)

Changes in Level 3 biological assets for the three-month period ended September 30, 2014 and for the year ended June 30, 2014 are included in the following table:

	Crop fields with significant biological growth
As of June 30, 2013		37,400
Initial recognition and changes in the fair value of biological assets		424,298
Harvest		(330,437	)
As of June 30, 2014		131,261
Initial recognition and changes in the fair value of biological assets		59,878
Harvest		(190,619	)
As of September 30, 2014		520

Level 2

Description		Pricing model			Parameters
Cattle		Comparable market prices			Price per livestock head/kg and per category

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

10. Biological assets (Continued)

Level 3

Description	Pricing model	Pricing method	Parameters	Range
Crop fields	Discounted cash flows	-	Yields – Operating cost –Selling expenses - Future sale prices	Argentina:
				Yields 0.5 - 0.6 tn/ha
				Future sale prices: 2,313 - 2,313 Ps./tn
				Selling expenses: 594 - 614 Ps./tn
				Operating cost: 420 -642 Ps./ha

During the period ended September 30, 2014 and the year ended June 30, 2014 there have been no transfers between the several tiers used in estimating the fair value of the Company’s biological assets, or reclassifications among their respective categories.

See information on valuation processes used by the entity and on the sensitivity of fair value valuation to changes in material non-observable input data in Note 5.c. to the consolidated financial statements as of June 30, 2014.

As of September 30, 2014 and June 30, 2014, the better and maximum use of biological assets shall not significantly differ from the current use.

11.	Inventories

Company’s inventories as of September 30, 2014 and June 30, 2014 were as follows:

	September 30, 2014		June 30, 2014
Current
Crops		110,523		131,975
Materials and inputs		67,265		56,774
Seeds and fodders		61,714		28,329
Total inventories		239,502		217,078

As of September 30, 2014 and June 30, 2014 the cost of inventories recognized as expense amounted to Ps. 205,384 and Ps. 425,687, respectively and they have been included in “Costs”.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

12.	Financial instruments by category

Determining fair values

See determination of the fair value of the Company in Note 16 to the Unaudited Condensed Interim Consolidated Financial Statements.

The following tables present the Company’s financial assets and financial liabilities that are measured at fair value as of September 30, 2014 and June 30, 2014 and their allocation to the fair value hierarchy:

	September 30, 2014
	Level 1	Level 2	Level 3	Total
Assets
Investment in financial assets:
- Mutual funds	228,409	-	-	228,409
- Corporate bonds related parties	63,635	-	-	63,635
Derivative financial instruments:
- Commodities	2,218	-	-	2,218
- Foreign-currency contracts	-	11	-	11
Cash and cash equivalents	2,556	-	-	2,556
Total Assets	296,818	11	-	296,829

	September 30, 2014
	Level 1	Level 2	Level 3	Total
Liabilities
Derivative financial instruments:
- Swaps	-	22	-	22
- Foreign-currency contracts	-	19,493	-	19,493
Total Liabilities	-	19,515	-	19,515

	June 30, 2014
	Level 1	Level 2	Level 3	Total
Assets
Investment in financial assets:
- Mutual funds	3,147	-	-	3,147
- Corporate bonds related parties	62,687	-	-	62,687
- Government bonds	192,940	-	-	192,940
Derivative financial instruments:
- Swaps	-	405	-	405
Cash and cash equivalents	2,605	-	-	2,605
Total Assets	261,379	405	-	261,784

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

12.

Financial instruments by category (Continued)

	June 30, 2014
	Level 1	Level 2	Level 3	Total
Liabilities
Derivative financial instruments:
- Foreign-currency contracts	-	38,441	-	38,441
Total Liabilities	-	38,441	-	38,441

13.	Trade and other receivables

The detail of the Company’s trade and other receivables as of September 30, 2014 and June 30, 2014 were as follows:

	September 30, 2014			June 30, 2014
Non-current
Others		12			-
Total Non-current other receivables		12			-
Total Non-current trade and other receivables		12			-
Current
Receivables from sale of agricultural products and services		47,498			64,378
Deferred checks received		1,370			3,624
Debtors under legal proceedings		1,497			556
Less: allowance for doubtful accounts		(2,401	)		(893	)
Current trade receivables		47,964			67,665
Prepayments		30,145			35,864
VAT receivables		21,262			14,206
Personnel Loans		3,772			3,557
Gross sales tax credit		2,312			1,556
Other tax receivables		3,381			1,538
Advance payments		4,006			2,659
Expenses and services to recover		2,093			2,219
Others		159			2,198
Less: allowance for doubtful accounts		(20	)		-
Total Current other receivables		67,110			63,797
Related parties (Note 30)		187,282			209,696
Total Current trade and other receivables		302,356			341,158
Total trade and other receivables		302,368			341,158

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

13.	Trade and other receivables (Continued)

The fair values of current trade and other receivables are approximate of their respective carrying amounts due to their short-term nature.

Movements on the Company’s allowance for doubtful accounts are as follows:

	September 30, 2014			June 30, 2014
Beginning of the period / year		893			415
Balances as a result of the merger with Cactus		1,434			-
Charges		111			481
Recoveries / uses		(17	)		(3	)
End of the period / year		2,421			893

The addition and release of allowance for doubtful account have been included in “Selling expenses” in the income statement (Note 25). Amounts charged to the provision account are generally written off when there is no expectation of recovering additional cash.

14.	Investment in financial assets

Company’s investments in financial assets as of September 30, 2014 and June 30, 2014 were as follows:

	September 30, 2014		June 30, 2014

Current
Corporate bonds related parties (Note 30)		63,635		62,687
Government bonds		-		192,940
Mutual funds		228,409		3,147
Total Current		292,044		258,774
Total Investment in Financial Assets		292,044		258,774

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

15.	Derivative financial instruments

Derivative financial instruments of the Company as of September 30, 2014 and June 30, 2014 are as follows:

	September 30, 2014		June 30, 2014
Assets
Current
Commodities		2,218		-
Foreign-currency contracts		11		-
Swaps		-		405
Total current assets		2,229		405
Total assets		2,229		405

Liabilities
Current
Foreign-currency contracts		19,493		38,441
Swaps		22		-
Total current liabilities		19,515		38,441
Total liabilities		19,515		38,441

16.	Cash flow information

The following table shows the amounts of cash and cash equivalents as of September 30, 2014 and June 30, 2014:

	September 30, 2014		June 30, 2014
Cash on hand and at banks		118,343		50,867
Mutual funds		2,556		2,605
Total cash and cash equivalents		120,899		53,472

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

16.	Cash flow information (Continued)

Following is a detailed description of cash flows used in the Company’s operations for the three-month periods ended September 30, 2014 and 2013:

	September 30, 2014			September 30, 2013
Loss for the period		(122,005	)		(97,849	)
Adjustments for:
Income tax expense		(62,124	)		(61,255	)
Depreciation		3,043			2,512
Amortization		194			231
Gain from disposal of farmlands		(195,875	)		-
(Gain)/Loss from disposal and release of investment property and property, plant and equipment		(87	)		21
Increase of interest in subsidiaries, associates and joint ventures through an increase in equity-settled compensation		2,971			1,808
Unrealized loss from derivative financial instruments		28,655			1,513
Changes in fair value of financial assets at fair value through profit or loss		(19,827	)		(14,896	)
Accrued interest, net		40,421			41,149
Unrealized initial recognition and changes in the fair value of biological assets		(80,496	)		(31,360	)
Changes in the net realizable value of agricultural produce after harvest		14,822			4,284
Provisions		16,662			2,720
Share of loss / (profit) of subsidiaries, associates and joint ventures		208,060			(18,490	)
Unrealized foreign exchange loss, net		80,180			98,436
Changes in operating assets and liabilities:
Decrease in biological assets		198,713			71,040
(Increase) / Decrease in inventories		(37,246	)		26,772
Decrease in trade and other receivables		19,011			14,578
Increase in derivative financial instruments		(2,235	)		(914	)
Increase in trade and other payables		5,612			35,763
Decrease in payroll and social security liabilities		(28,170	)		(4,884	)
Net cash generated from operating activities before income tax paid		70,279			71,179

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

16.	Cash flow information (Continued)

The following table shows a detail of non-cash transaction occurred during the three-month periods ended as of September 30, 2014 and 2013:

	September 30, 2014			September 30, 2013
Non-cash activities
Dividends not collected		(4,199	)		(1,373	)
Decrease (Increase) of investment in subsidiaries, associates and joint ventures by currency translation adjustment		8,375			(71,588	)
Increase of investment in subsidiaries, associates and joint ventures through an increase in trade and other payables		876			-
Increase of investment in subsidiaries, associates and joint ventures through a decrease in trade and other receivables		-			71,941
Decrease in investments in subsidiaries, associates and joint ventures through an increase in trade and other receivables		(2,547	)		(476	)
Increase in property, plant and equipment through an increase in trade payables		343			-
Increase in investment in financial assets through a decrease in property, plant and equipment		48,217			-
Equity-settled compensation		9,098			4,052
Increase in trade and other receivables through a decrease in property, plant and equipment		485			-
Repayment of loan as a result of merger		(25,243	)		-

Cash incorporated by merger

	September 30, 2014
Assets
Property, plant and equipment		1,889
Investments in associates and joint ventures		(63,670	)
Income tax credit		2,372
Biological assets		65
Trade and other receivables		66,912
Total assets		7,568

Liabilities
Deferred income tax liabilities		(398	)
Provisions		(379	)
Trade and other payables		(3,847	)
Income tax and minimum presumed income tax		(679	)
Payroll and social security liabilities		(130	)
Borrowings		(2,017	)
Provisions		(626	)
Total liabilities		(8,076	)
Cash incorporated by merger		(508	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

17.	Trade and other payables

The detail of the Company’s trade and other payables as of September 30, 2014 and June 30, 2014 were as follows:

	September 30, 2014		June 30, 2014
Non-current
Tax on shareholders’ personal assets		1,094		1,170
Total non-current other payables		1,094		1,170
Total non-current trade and other payables		1,094		1,170
Current
Trade payables		58,727		38,490
Provisions		56,161		45,419
Total current trade payables		114,888		83,909
Sales, rent and services payments received in advance		1,904		2,084
Guarantee deposits		500		3,428
Gross sales tax payable		1,105		717
Tax amnesty plan for payable taxes		267		306
Withholdings tax		2,142		1,762
Tax on shareholders’ personal assets		6,935		5,067
Others		783		638
Total current other payables		13,636		14,002
Related parties (Note 30)		18,506		18,791
Total current trade and other payables		147,030		116,702
Total trade and other payables		148,124		117,872

The values of current trade and other payables are approximate of their respective carrying amounts due to their short-term nature.

18.	Payroll and social security liabilities

The detail of the Company’s salaries and social security liabilities as of September 30, 2014 and June 30, 2014 were as follows:

	September 30, 2014		June 30, 2014
Current
Provision for vacations and bonuses		17,027		43,080
Social security payable		3,850		6,026
Salaries payable		204		40
Social security payable of equity-settled compensation		3,628		3,628
Total payroll and social security liabilities		24,709		52,774

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

19.	Provisions

The table below shows the movements in Company's provisions categorized by type of provision:

	Labor, legal and other claims			Tax and social security			Total
As of June 30, 2013		1,617			5			1,622
Additions		148			-			148
Used during period		-			(3	)		(3	)
As of June 30, 2014		1,765			2			1,767
Balances as a result of the merger with Cactus		1,006						1,006
Additions		589			-			589
Used during period		(48	)		(2	)		(50	)
As of September 30, 2014		3,312			-			3,312

The analysis of total provisions was as follows:

	September 30, 2014		June 30, 2014
Non-current		3,303		1,687
Current		9		80
		3,312		1,767

20.	Borrowings

The detail of the Company’s borrowings as of September 30, 2014 and June 30, 2014 were as follows:

						Value as of
	Secured/ unsecured	Currency	Fixed/ Floating	Effective interest rate %	Nominal Value (in million)	September 30, 2014	June 30, 2014
Non-current
CRESUD NCN Class XIV due 2018	Unsecured	US$	Fixed	1.50 %	32	268,696	259,192
CRESUD NCN Class XV due 2015	Unsecured	Ps.	Floating	23.67 %	176	58,715	117,299
CRESUD NCN Class XVI due 2018	Unsecured	US$	Fixed	1.50 %	109	927,951	896,032
CRESUD NCN Class XVII due 2016	Unsecured	Ps.	Floating	Badlar + 250 bps	176	170,932	-
CRESUD NCN Class XVIII due 2019	Unsecured	US$	Fixed	4.00 %	34	285,864	-
Loan from Banco Ciudad	Unsecured	US$	Floating	Libor + 300 bps or 6% (the higher)	15	115,442	111,363
Loan from Banco de La Pampa	Unsecured	Ps.	Floating	Rate Survey PF 30-59 days	20	13,196	16,665
Loan from Banco de la Provincia de Buenos Aires	Unsecured	Ps.	Fixed	15.01%	24	6,820	6,804
Finance lease obligations	Secured	US$	Fixed	10.75%	-	378	215
Non-current borrowings						1,847,994	1,407,570

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

20.	Borrowings (Continued)

						Value as of
	Secured/ unsecured	Currency	Fixed/ Floating	Effective interest rate %	Nominal Value (in million)	September 30, 2014	June 30, 2014
Current
CRESUD NCN Class VIII due 2014	Unsecured	US$	Fixed	7.5%	60	-	499,113
CRESUD NCN Class XI due 2015 (i)	Unsecured	Ps.	Floating	Badlar + 375 bps	80.5	53,803	53,726
CRESUD NCN Class XII due 2014	Unsecured	Ps.	Floating	Badlar + 410 bps	102	34,929	69,971
CRESUD NCN Class XIII due 2015	Unsecured	US$	Fixed	1.90 %	79	669,322	644,965
CRESUD NCN Class XIV due 2018	Unsecured	US$	Fixed	1.50 %	32	254	150
CRESUD NCN Class XV due 2015	Unsecured	Ps.	Floating	23.67 %	176	122,107	63,883
CRESUD NCN Class XVI due 2018	Unsecured	US$	Fixed	1.50 %	109	4,702	4,222
CRESUD NCN Class XVII due 2016	Unsecured	Ps.	Floating	Badlar + 250 bps	176	419	-
CRESUD NCN Class XVIII due 2019	Unsecured	US$	Fixed	4.00 %	34	985	-
Loan from Banco Ciudad	Unsecured	US$	Floating	Libor + 300 bps or 6% (the higher)	15	7,862	9,267
Loan from Banco de La Pampa	Unsecured	Ps.	Floating	Rate Survey PF 30-59 days	20	7,090	4,285
Loan from Banco de la Provincia de Buenos Aires	Unsecured	Ps.	Fixed	15.01%	24	7,412	6,880
Loan from Cactus	Unsecured	Ps.	Floating	Badlar	23	-	25,243
Finance lease obligations	Secured	US$	Fixed	10.75%	-	439	323
Bank overdrafts	Unsecured	Ps.	Fixed	-	-	42,561	140,825
Current borrowings						951,885	1,522,853
Total borrowings						2,799,879	2,930,423

(i)	Includes an outstanding balance of Ps. 5,068 and Ps. 9,010 with ERSA and PAMSA, respectively, as of 09.30.14. Includes an outstanding balance of Ps. 5,068 and Ps. 9,010 with ERSA and PAMSA, respectively, as of 06.30.14.

The fair value of current borrowings at fixed-rate and current and non-current borrowings at floating-rate equals their carrying amount, as the impact of discounting is not significant. Fair values are based on discounted cash flows (Level 2 of fair value hierarchy).

	September 30, 2014		June 30, 2014
CRESUD Class XIII NCN due 2015		670,832		647,198
CRESUD Class XIV NCN due 2018		270,192		260,673
CRESUD Class XVI NCN due 2018		921,381		888,920
CRESUD Class XVIII NCN due 2019		284,704		-
Long-term loans		16,770		20,206
Total		2,163,879		1,816,997

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

21.

Taxation

The details of the provision for the Company’s income tax were as follows:

	September 30, 2014		September 30, 2013
Deferred income tax		62,124		61,255
Income tax		62,124		61,255

The gross movements on the deferred income tax account were as follows:

	September 30, 2014			June 30, 2014
Beginning of the period / year		302,991			15,212
Balance from merger with Cactus		(398	)		-
Reserve for changes in investment in subsidiaries		(17,604	)		-
Charged to the income statement		62,124			287,779
End of the period / year		347,113			302,991

The Company´s income tax expense charge differs from the theoretical amount that would arise using the weighted average tax rate applicable to Company´s profit before tax as follows:

	September 30, 2014			September 30, 2013
Tax calculated at the tax applicable tax rate in effect		64,445			55,686
Permanent differences:
Share of (profit) / loss of subsidiaries, associates and joint ventures		(1,150	)		6,471
Tax on personal assets		(1,351	)		(949	)
Others		180			47
Income tax expense		62,124			61,255

22.	Shareholders’ Equity

Special reserve

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

23.

Revenues

	September 30, 2014		September 30, 2013
Crops		237,307		220,491
Cattle		62,179		30,885
Dairy		17,467		11,763
Supplies		795		457
Leases and agricultural services		3,634		2,124
Total revenues		321,382		265,720

24.

Costs

	September 30, 2014		September 30, 2013
Crops		289,575		218,445
Cattle		82,240		55,503
Dairy		32,836		22,895
Leases and agricultural services		1,871		1,158
Other costs		2,320		1,763
Total costs		408,842		299,764

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

25.	Expenses by nature

For the three-month period ended as of September 30, 2014:

	Costs
	Cost of sales and agricultural services		Cost of agricultural production		Others operating costs		General and administrative expenses		Selling expenses		Total
Supplies and labor		224		117,732		7		-		142		118,105
Leases and expenses		3		281		13		716		26		1,039
Amortization and depreciation (i)		529		1,643		741		398		22		3,333
Doubtful accounts		-		-		-		-		94		94
Changes in biological assets and agricultural produce		258,561		-		-		-		-		258,561
Advertising, publicity and other selling expenses		-		-		-		-		384		384
Maintenance and repairs		569		4,234		330		679		39		5,851
Payroll and social security expenses		717		14,259		656		14,128		950		30,710
Fees and payments for services		58		583		352		1,706		179		2,878
Freights		5		2,831		-		9		36,577		39,422
Bank commissions and expenses		-		161		-		890		1,582		2,633
Conditioning and clearance		-		-		-		-		5,722		5,722
Director’s fees		-		-		-		4,014		-		4,014
Taxes, rates and contributions		65		1,359		23		1,294		8,489		11,230
Others		-		2,708		198		843		21		3,770
Total expenses by nature		260,731		145,791		2,320		24,677		54,227		487,746

(i)

Includes Ps. 96 corresponding to shared services amortization.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

25.

Expenses by nature (Continued)

For the three-month period ended as of September 30, 2013:

	Costs
	Cost of sales and agricultural services		Cost of agricultural production		Others operating costs		General and administrative expenses		Selling expenses		Total
Supplies and labor		114		57,004		-		-		-		57,118
Leases and expenses		8		265		30		680		37		1,020
Amortization and depreciation		450		1,322		659		368		15		2,814
Doubtful accounts		-		-		-		-		274		274
Changes in biological assets and agricultural produce		220,901		-		-		-		-		220,901
Advertising, publicity and other selling expenses		-		-		-		-		72		72
Maintenance and repairs		190		2,485		26		556		16		3,273
Payroll and social security expenses		802		9,074		921		12,373		1,032		24,202
Fees and payments for services		25		1,012		33		969		72		2,111
Freights		8		2,224		5		1		18,244		20,482
Bank commissions and expenses		-		146		-		596		781		1,523
Conditioning and clearance		-		-		-		-		5,264		5,264
Director’s fees		-		-		-		15,216		-		15,216
Taxes, rates and contributions		55		1,007		4		116		7,055		8,237
Others		46		863		85		547		47		1,588
Total expenses by nature		222,599		75,402		1,763		31,422		32,909		364,095

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

26.	Employee costs

	September 30, 2014			September 30, 2013
Salaries, bonuses and social security costs		25,415			20,979
Other benefits and expenses		2,399			1,362
Share-based payments		2,971			1,808
Pension costs – defined contribution plan		(75	)		53
		30,710			24,202

27.	Other operating results, net

	September 30, 2014			September 30, 2013
Administration fee		455			528
Management fee		-			14
Gain from commodity derivative financial instruments		2,491			807
Gain / (Loss) from disposal of property, plant and equipment		87			(21	)
Tax on shareholders’ personal assets		(3,859	)		(2,712	)
Donations		(164	)		(113	)
Project analysis and assessment		13			(711	)
Contingencies		(618	)		(4	)
Transfer of consulting arrangement		10,627			-
Others		(37	)		(477	)
Total other operating results, net		8,995			(2,689	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

28.	Financial results, net

	September 30, 2014			September 30, 2013
Finance income:
- Interest income		4,457			3,342
- Foreign exchange gains		6,128			8,821
Finance income		10,585			12,163

Finance costs:
- Interest expense		(44,878	)		(44,491	)
- Foreign exchange losses		(90,538	)		(102,590	)
- Other finance costs		(10,142	)		(2,600	)
Finance costs		(145,558	)		(149,681	)
Other finance results:
- Fair value gains of financial assets at fair value through profit or loss		19,827			14,896
- Loss from derivative financial instruments (except commodities)		(29,144	)		(599	)
Total other finance results		(9,317	)		14,297
Total financial results, net		(144,290	)		(123,221	)

29.	Share-based payments

See Note 34 to the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2014 and June 30, 2014.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30.	Related party transactions

See description of the main transactions conducted with related parties in Note 39 to the Unaudited Condensed Interim Consolidated Financial Statements as of September 30, 2014 and 2013.

The following is a summary of the balances with related parties as of September 30, 2014:

Related party	Description of transaction	Investments in Financial assets current		Trade and other receivables current		Trade and other payables current			Borrowings current
Subsidiaries
IRSA Inversiones y Representaciones S.A.	Corporate services		-		7,305		-			-
	Share-based payments		-		4,214		-			-
	Non-convertible notes		40,595		-		-			-
	Leases		-		-		(104	)		-
	Sale of goods and/or services		-		-		(216	)		-
	Reimbursement of expenses		-		941		-			-
Brasilagro	Financial operations		-		34,782		-			-
Brasilagro	Reimbursement of expenses		-		992		(2,750	)		-
Sociedad Anónima Carnes Pampeanas S.A. (formerly EAASA)	Reimbursement of expenses		-		132		-			-
	Sale of goods and/or services		-		30,090		(154	)		-
	Financial operations		-		1,672		-			-
Helmir S.A.	Financial operations		-		-		(874	)		-
Ombú Agropecuaria S.A.	Administration fee		-		1,318		-			-
FyO Trading S.A.	Reimbursement of expenses		-		1		-			-
Agropecuaria Acres del Sud S.A.	Financial operations		-		8,432		-			-
	Administration fee		-		1,919		-			-
	Reimbursement of expenses		-		270		-			-
Yatay Agropecuaria S.A.	Administration fee		-		1,318		-			-

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30.	Related party transactions (Continued)

Related party	Description of transaction	Investments in Financial assets current		Trade and other receivables current		Trade and other payables current			Borrowings current
Yuchán Agropecuaria S.A.	Administration fee		-		1,318		-			-
Futuros y Opciones.Com S.A.	Brokerage		-		3,151		(420	)		-
	Reimbursement of expenses		-		94		-			-
	Others		-		-		(63	)		-
	Administration fee		-		46		-			-
Total Subsidiaries			40,595		97,995		(4,581	)		-

Associates
Agro Managers S.A.	Reimbursement of expenses		-		203		-			-
Agro-Uranga S.A.	Dividends receivable		-		4,238		-			-
	Purchase of goods and/or services		-		-		(542	)		-
Total Associates			-		4,441		(542	)		-

Subsidiaries of the subsidiaries
Alto Palermo S.A.	Share-based payments		-		14,124		(604	)		-
	Non-convertible Notes		23,040		-		-			-
	Corporate services		-		11,246		-			-
	Others		-		63		-			-
Emprendimiento Recoleta S.A.	Reimbursement of expenses		-		10		-			-
Emprendimiento Recoleta S.A.	Non-convertible Notes		-		-		-			(5,068	)
E-Commerce Latina S.A.	Reimbursement of expenses
Panamerican Mall S.A.	Reimbursement of expenses		-		23		-			-
	Non-convertible Notes		-		-		-			(9,010	)
Total Subsidiaries of the subsidiaries			23,040		25,466		(604	)		(14,078	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30.

Related party transactions (Continued)

Related party	Description of transaction	Investments in Financial assets current		Trade and other receivables current		Trade and other payables current			Borrowings current
Associates of the subsidiaries
Tarshop S.A.	Reimbursement of expenses		-		2		-			-
Total Associates of the subsidiaries			-		2		-			-

Joint Ventures of the subsidiaries
Cyrsa S.A.	Reimbursement of expenses		-		85		-			-
Total Joint Ventures of the subsidiaries			-		85		-			-

Other Related parties
Consultores Asset Management S.A. (CAMSA)	Advances to be recovered		-		1,466		-			-
Consultores Asset Management S.A. (CAMSA)	Reimbursement of expenses		-		140		-			-
Fundación IRSA	Reimbursement of expenses		-		3		-			-
Estudio Zang, Bergel & Viñes	Legal services		-		-		(235	)		-
Inversiones Financieras del Sur S.A.	Financial operations		-		57,607		-			-
Other Related parties			-		59,216		(235	)		-

Directors and Senior Management
Directors and Senior Management	Reimbursement of expenses		-		77		-			-
Directors and Senior Management	Directors’ fees		-		-		(12,544	)		-
Total Directors and Senior Management			-		77		(12,544	)		-
			63,635		187,282		(18,506	)		(14,078	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30.	Related party transactions (Continued)

The following is a summary of the balances with related parties as of June 30, 2014:

Related party	Description of transaction	Investments in financial assets current		Trade and other receivables current		Trade and other payables current			Borrowings current
Subsidiaries IRSA Inversiones y Representaciones S.A.
	Corporate services		-		12,492		-			-
	Leases		-		-		(1,598	)		-
	Non-convertible notes		40,781		-		-			-
	Sale of goods and/or services		-		-		(701	)		-
	Share-based payments		-		3,673		-			-
	Dividends receivable		-		36,462		-			-
	Reimbursement of expenses		-		814		-			-
Brasilagro	Financial operations		-		7,600		-			-
Brasilagro	Reimbursement of expenses		-		788		(2,727	)		-
Sociedad Anónima Carnes Pampeanas S.A. (formerly EAASA)	Reimbursement of expenses		-		331		-			-
Sociedad Anónima Carnes Pampeanas S.A. (formerly EAASA)	Sale of goods and/or services		-		9,802		(30	)		-
Helmir S.A.	Financial operations		-		10,069		-			-
Ombú Agropecuaria S.A.	Administration fee		-		1,190		-			-
Agropecuaria Acres del Sud S.A.	Administration fee		-		1,919		-			-
Agropecuaria Acres del Sud S.A.	Reimbursement of expenses		-		202		-			-
Cactus Argentina S.A.	Reimbursement of expenses		-		196		-			-
	Financial operations		-		1,671		-			(25,243	)
	Purchase of goods and/or services		-		-		(922	)		-
	Management fees		-		3,029		-			-
Yatay Agropecuaria S.A.	Administration fee		-		1,190		-			-

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30.

Related party transactions (Continued)

Related party	Description of transaction	Investments in financial assets current		Trade and other receivables current		Trade and other payables current			Borrowings current
Yuchán Agropecuaria S.A.	Administration fee		-		1,190		-			-
Futuros y Opciones.Com S.A.	Brokerage		-		6,840		(1,888	)		-
	Reimbursement of expenses		-		117		-			-
	Financial operations		-		16,540		-			-
	Administration fee		-		636		-			-
Total Subsidiaries			40,781		116,751		(7,866	)		(25,243	)

Associates
Agro Managers S.A.	Reimbursement of expenses		-		303		-			-
Agro-Uranga S.A.	Purchase of goods and/or services		-		-		(112	)		-
Agro-Uranga S.A.	Dividends receivable		-		39		-			-
Total Associates			-		342		(112	)		-

Subsidiaries of the subsidiaries
Nuevo Puerto Santa Fe S.A.	Reimbursement of expenses		-		-		(1	)		-
Nuevas Fronteras S.A.	Reimbursement of expenses		-		-		(2	)		-
Alto Palermo S.A.	Reimbursement of expenses		-		2,873		-			-
	Share-based payments		-		10,557		-			-
	Non-convertible Notes		21,906		-		-			-
	Corporate services		-		21,218		-			-
Emprendimiento Recoleta S.A.	Reimbursement of expenses		-		7		-			-
Emprendimiento Recoleta S.A.	Non-convertible Notes		-		-		-			(5,068	)
Panamerican Mall S.A.	Reimbursement of expenses		-		27		-			-
	Non-convertible Notes		-		-		-			(9,010	)
Fibesa S.A.	Reimbursement of expenses		-		2		-			-
Total Subsidiaries of the subsidiaries			21,906		34,684		(3	)		(14,078	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30.

Related party transactions (Continued)

Related party	Description of transaction	Investments in financial assets current		Trade and other receivables current		Trade and other payables current			Borrowings current
Associates of the subsidiaries
Tarshop S.A.	Reimbursement of expenses		-		2		-			-
Total Associates of the subsidiaries			-		2		-			-

Joint Ventures of the subsidiaries
Cyrsa S.A.	Reimbursement of expenses		-		74		-			-
Total Joint Ventures of the subsidiaries			-		74		-			-

Other Related parties
Consultores Asset Management S.A. (CAMSA)	Advances		-		1,468		-			-
Consultores Asset Management S.A. (CAMSA)	Reimbursement of expenses		-		1,930		-			-
Fundación IRSA	Reimbursement of expenses		-		3		-			-
Estudio Zang, Bergel & Viñes	Legal services		-		-		(205	)		-
Inversiones Financieras del Sur S.A.	Financial operations		-		54,346		-			-
Other Related parties			-		57,747		(205	)		-

Directors and Senior Management
Directors and Senior Management	Reimbursement of expenses		-		96		-			-
Directors and Senior Management	Fees		-		-		(10,605	)		-
Total Directors and Senior Management			-		96		(10,605	)		-
			62,687		209,696		(18,791	)		(39,321	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30.

Related party transactions (Continued)

The following is a summary of the transactions with related parties for the three-month period ended as of September 30, 2014:

Related party	Leases and/or rights of use	Administration and management fees	Sale of goods and/or services	Corporate services	Legal services	Financial operations	Compensation of Directors and Senior Management
Subsidiaries
IRSA Inversiones y Representaciones S.A.	(616)	-	-	7,609	-	2,305	-
BrasilAgro S.A.	-	-	-	-	-	11,343	-
Futuros y Opciones.Com S.A.	-	(71)	-	-	-	430	-
Sociedad Anónima Carnes Pampeanas S.A. (formerly EAASA)	-	-	32,204	-	-	(72)	-
Helmir S.A.	-	-	-	-	-	458	-
Agropecuaria Acres del Sud S.A.	-	-	-	-	-	2	-
Ombú Agropecuaria S.A.	-	128	-	-	-	-	-
Yuchán Agropecuaria S.A.	-	128	-	-	-	-	-
Yatay Agropecuaria S.A.	-	128		-	-	-	-
Total Subsidiaries	(616)	313	32,204	7,609	-	14,466	-

Associates
Agro-Uranga S.A.	-	-	2,107	-	-	-	-
Total Associates	-	-	2,107	-	-	-	-

Subsidiaries of the subsidiaries
Emprendimiento Recoleta S.A.	-	-	-	-	-	(320)	-
Panamerican Mall S.A.	-	-	-	-	-	(569)	-
Alto Palermo S.A.	21	-	-	13,842	-	1,258	-
Total Subsidiaries of the subsidiaries	21	-	-	13,842	-	369	-

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30. Related party transactions (Continued)

Related party	Leases and/or rights of use	Administration and management fees	Sale of goods and/or services	Corporate services	Legal services	Financial operations	Compensation of Directors and Senior Management
Other related parties
Estudio Zang, Bergel & Viñes	-	-	-	-	(163)	-	-
Inversiones Financieras del Sur S.A.	-	-	-	-	-	3,246	-
Hamonet S.A.	(41)	-	-	-	-	-	-
Isaac Elsztain e Hijos S.C.A.	(79)	-	-	-	-	-	-
Total Other Related parties	(120)	-	-	-	(163)	3,246	-

Directors and Senior Management
Directors	-	-	-	-	-	-	(4,014)
Senior Management	-	-	-	-	-	-	(1,640)
Total Directors and Senior Management	-	-	-	-	-	-	(5,654)
	(715)	313	34,311	21,451	(163)	18,081	(5,654)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30. Related party transactions (Continued)

The following is a summary of the transactions with related parties for the three-month period ended as of September 30, 2013:

Related party	Leases and/or rights of use			Administration and management fees		Sale of goods and/or services		Purchase of agricultural goods and/or services			Corporate services		Legal services		Financial operations			Compensation of Directors and Senior Management
Subsidiaries
IRSA Inversiones y Representaciones S.A.		(316	)		-		-		-			7,606		-		-			-
Cactus Argentina S.A.		-			-		-		(3,919	)		-		-		26			-
Futuros y Opciones.Com S.A.		-			29		-		-			-		-		(461	)		-
Sociedad Anónima Carnes Pampeanas S.A. (formerly EAASA)		-			-		6,979		-			-		-		-			-
Helmir S.A.		-			-		-		-			-		-		761			-
Agropecuaria Acres del Sud S.A.		-			-		-		-			-		-		1,489			-
Ombú Agropecuaria S.A.		-			166		-		-			-		-		2,779			-
Yuchán Agropecuaria S.A.		-			166		-		-			-		-		1,473			-
Yatay Agropecuaria S.A.		-			166		-		-			-		-		1,316			-
Total Subsidiaries		(316	)		527		6,979		(3,919	)		7,606		-		7,383			-

Associates																			-
Agro-Uranga S.A.		-					-		1,886			-		-		-			-
Total Associates		-					-		1,886			-		-		-			-

Joint Ventures																			-
Cresca S.A.		-			14		-		-			-		-		-			-
Total Joint Ventures		-			14		-		-			-		-		-			-

Subsidiaries of the subsidiaries																			-
Emprendimiento Recoleta S.A.		-			-		-		-			-		-		(853	)		-
Panamerican Mall S.A.		-			-		-		-			-		-		(915	)		-
Alto Palermo S.A.		-			-		-		-			20,245		-		-			-
Total Subsidiaries of the subsidiaries		-			-		-		-			20,245		-		(1,768	)		-

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

30. Related party transactions (Continued)

Related party	Leases and/or rights of use			Administration and management fees		Sale of goods and/or services		Purchase of agricultural goods and/or services			Corporate services		Legal services			Financial operations		Compensation of Directors and Senior Management
Other related parties
Estudio Zang, Bergel & Viñes		-			-		-		-			-		(36	)		-		-
Inversiones Financieras del Sur S.A.		-			-		-		-			-		-			3,373		-
Hamonet S.A.		(28	)		-		-		-			-		-			-		-
Isaac Elsztain e Hijos S.C.A.		(52	)		-		-		-			-		-			-		-
Total other Related parties		(80	)		-		-		-			-		(36	)		3,373		-

Directors and Senior Management
Directors and Senior Management		-			-		-		-			-		-			-		(15,216	)
Total Directors and Senior Management		-			-		-		-			-		-			-		(15,216	)
		(396	)		541		6,979		(2,033	)		27,851		(36	)		8,988		(15,216	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

31.	CNV General Resolution N°. 622

As required by Section 1°, Chapter III, Title IV of CNV General Resolution N°. 622, below there is a detail of the notes to the Unaudited Condensed Interim Separate Financial Statements that disclosure the information required by the Resolution in Exhibits.

Exhibit A - Property, plant and equipment	Note 7 - Investment properties
	Note 8 - Property, plant and equipment
Exhibit B - Intangible assets	Note 9 - Intangible assets
Exhibit C - Equity investments	Note 32 - Investments in subsidiaries, associates and joint ventures
Exhibit D - Other investments	Note 12 - Financial instruments by category
Exhibit E - Provisions	Note 13 - Trade and other receivables
	Note 19 – Provisions
Exhibit F - Cost of sales and services	Note 33 - Cost of sales and services provided
Exhibit G - Foreign currency assets and liabilities	Note 34 - Foreign currency assets and liabilities
Exhibit H - Exhibit of expenses	Note 25 - Expenses by nature

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

32.	Investments in subsidiaries, associates and joint ventures

Issuer and type of securities	Class	Amount	Value recorded as of 09.30.14	Value recorded as of 06.30.14	Market value as of 09.30.14	Issuer’s information					Interest in common stock
						Main activity	Place of business / country of incorporation	Last financial statement issued
						Main activity	Place of business / country of incorporation	Common stock (nominal value)	Income (loss) for the period	Shareholders’ equity
Subsidiaries

BrasilAgro Companhia	Shares	23,150,050	770,074	808,513	Rs. 9.0600	Agricultural	Brazil	875,381	13,607	1,936,876	39.76%
Brasileira de Propriedades	Higher value		107,636	107,636
Agrícolas	Goodwill		9,149	9,770
	Intergroup transactions		(1,389)	(1,389)
			885,470	924,530

Cactus Argentina S.A.	Shares	-	-	100,056	Not publicly traded	Agroindustrial	Argentina	-	-	-	-
			-	100,056

Doneldon	Shares	551,481	27,014	32,704	Not publicly traded	Agricultural	Uruguay	551	(12,508)	184,676	100.00%
	Intergroup transactions		157,662	157,662
			184,676	190,366

Futuros y Opciones S.A.	Shares	972,614	16,220	14,134	Not publicly traded	Brokerage	Argentina	1,632	5,409	27,218	59.59%
			16,220	14,134

FyO Trading S.A.	Shares	4,832	5	5	Not publicly traded	Brokerage	Argentina	220	(4)	208	2.20%
			5	5

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

32.

Investments in subsidiaries, associates and joint ventures (Continued)

Issuer and type of securities	Class	Amount	Value recorded as of 09.30.14	Value recorded as of 06.30.14	Market value as of 09.30.14	Issuer’s information					Interest in common stock
						Main activity	Place of business / country of incorporation	Last financial statement issued
						Main activity	Place of business / country of incorporation	Common stock (nominal value)	Income (loss) for the period	Shareholders’ equity

Helmir S.A.	Shares	548,230,675	215,594	209,133	Not publicly traded	Investment	Uruguay	90,624	4,283	219,152	100.00%
			215,594	209,133

IRSA Inversiones y Representaciones S.A.	Shares	375,359,190	1,349,758	1,307,667	20.500	Real Estate	Argentina	573,771	(3,063)	2,056,805	65.42%
	Intergroup transactions		(222,455)	(17,681)
	Higher value		106,269	107,527
	Goodwill		14,331	14,331
			1,247,903	1,411,844

Sociedad Anónima Carnes Pampeanas S.A.	Shares	30,000,432	36,221	14,119	Not publicly traded	Agroindustrial	Argentina	30,000	363	36,221	100%
			36,221	14,119
Total Subsidiaries			2,586,089	2,864,187

Associates

Agromanagers S.A.	Shares	981,029	1,871	2,011	Not publicly traded	Investment	Argentina	2,094	(300)	3,994	46.84%
	Goodwill		796	796
			2,667	2,807

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

32.

Investments in subsidiaries, associates and joint ventures (Continued)

Issuer and type of securities	Class	Amount	Value recorded as of 09.30.14	Value recorded as of 06.30.14	Market value as of 09.30.14	Issuer’s information					Interest in common stock
						Main activity	Place of business / country of incorporation	Last financial statement issued
						Main activity	Place of business / country of incorporation	Common stock (nominal value)	Income (loss) for the period	Shareholders’ equity

Agrouranga S.A.	Shares	893,069	17,506	23,239	Not publicly traded	Agricultural	Argentina	2,500	(2,840)	49,004	35.72%
	Higher value		11,179	11,179
			28,685	34,418

Granos Olavarría S.A.	Shares	264	102	24	Not publicly traded	Agricultural	Argentina	512	3,501	4,629	2.20%
	Goodwill		15	15
			117	39
Total Associates			31,469	37,264
Total investments in subsidiaries, associates and joint ventures as of 09.30.14			2,617,558	-
Total investments in subsidiaries, associates and joint ventures as of 06.30.14			-	2,901,451

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

33.

Cost of sales and services provided

Description	Biological assets			Inventories			Others		Total as of 09.30.14			Total as of 09.30.13
Beginning of the period / year		345,706			217,078			-		562,784			375,176
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest		29,689			-			-		29,689			22,136

Changes in the net realizable value of agricultural produce after harvest		-			(14,822	)		-		(14,822	)		(4,284	)

Increase due to harvest		-			209,496			-		209,496			51,017
Purchases and classifications		1,345			84,407			-		85,752			134,244
Consume		(176	)		(52,302	)		-		(52,478	)		(30,631	)
Incorporated by merger		65			-			-		65			-
Expenses incurred		-			299			1,871		2,170			1,698
End of the period / year		(322,423	)		(239,502	)		-		(561,925	)		(326,757	)
Cost as of 09.30.14		54,206			204,654			1,871		260,731			-
Cost as of 09.30.13		28,334			193,111			1,154		-			222,599

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

34.

Foreign currency assets and liabilities

Book amounts of foreign currency assets and liabilities are as follows:

Items	Amount of foreign currency		Prevailing exchange rate (1)		Total as of 09.30.14		Amount of foreign currency		Prevailing exchange rate (2)		Total as of 06.30.14
Assets
Cash and cash equivalents
US Dollar		3,245		8.330		27,030		3,489		8.033		28,029
Brazilian Reais		-		-		-		1		3.350		3
Euro		5		10.510		49		5		10.991		51
Yenes		53		0.076		4		50		0.079		4
Total cash and cash equivalents						27,083						28,087

Trade and other receivables
US Dollar		13,312		8.330		110,887		12,265		8.033		98,523
Total trade and other receivables						110,887						98,523

Investment in financial assets
US Dollar		7,639		8.330		63,635		31,822		8.033		255,627
Total investment in financial assets						63,635						255,627

Derivative financial instruments
US Dollar		266		8.330		2,218		-		-		-
Total derivative financial instruments						2,218						-

Trade and other payables
US Dollar		4,054		8.430		34,177		673		8.133		5,470
Brazilian Reais		724		3.800		2,750		718		3.800		2,727
Euros		0.28		10.657		3		0.27		11.148		3
Total trade and other payables						36,930						8,200

Borrowings
US Dollar		270,687		8.430		2,281,895		298,149		8.133		2,424,842
Total borrowings						2,281,895						2,424,842

(1)	Exchange rate as of September 30, 2014 according to Banco Nación Argentina records.

(2)	Exchange rate as of June 30, 2014 according to Banco Nación Argentina records.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

35.

CNV General Ruling No. 629/14 – Storage of documentation

Documentation storage provider		Location
Bank S.A.		Gral. Rivas 401, Avellaneda, Province of Buenos Aires
		Ruta Panamericana Km 37,5, Garín, Province of Buenos Aires
		Av. Fleming 2190, Munro, Province of Buenos Aires
		Carlos Pellegrini 1401, Avellaneda, Province of Buenos Aires

Iron Mountain Argentina S.A.		Av. Amancio Alcorta 2482, Autonomous City of Buenos Aires
		Pedro de Mendoza 2143, Autonomous City of Buenos Aires
		Saraza 6135, Autonomous City of Buenos Aires
		Azara 1245, Autonomous City of Buenos Aires
		Polígono industrial Spegazzini, Autopista Ezeiza Km 45, Cañuelas, Province of Buenos Aires
		Cañada de Gomez 3825, Autonomous City of Buenos Aires

36.	Negative working capital

At the end of the period, the Company carried a working capital deficit of Ps. 101,192 whose treatment is being considered by the Board of Directors and the respective Management.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Condensed Interim Separate Financial Statements (Continued)

(All amounts in thousands of Argentine Pesos, except shares and per share data and as otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

37.

Subsequent events

See subsequent events in Note 41 to the Unaudited Condensed Interim Consolidated Financial Statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations

and Section 12, Chapter III, Title IV of Resolution 622/13

Unaudited Condensed Interim Statement of Financial Position as of September 30, 2014

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

1.	Specific and significant legal systems that imply contingent lapsing or rebirth of benefits envisaged by such provisions.

None.

Significant changes in the Company´s activities or other similar circumstances that occurred during the fiscal years included in the financial statements, which affect their comparison with financial statements filed in previous fiscal years, or that could affect those to be filed in future fiscal years.

Are detailed in the Business Review.

3.	Receivables and liabilities by maturity date.

		Falling due (Point 3.a.)		Without term (Point 3.b.)		Without term (Point 3.b.)		To be due (Point 3.c.)
	Items 09.30.14			Current		Non-current		Up to 3 months		From 3 to 6 months		From 6 to 9 months		From 9 to 12 months		From 1 to 2 years		From 2 to 3 years		From 3 to 4 years		From 4 years on		Total
Accounts receivables	Trade and other receivables		-		12,550		12		288,116		-		-		1,690		-		-		-		-		302,368
	Income tax credit and deferred income tax		-		-		399,048		9,805		-		-		-		-		-		-		-		408,853
	Total		-		12,550		399,060		297,921		-		-		1,690		-		-		-		-		711,221
Liabilities	Trade and other payables		-		-				147,030		-		-		-		305		305		305		179		148,124
	Borrowings		-		-		-		117,067		338,333		426,702		69,782		251,792		22,610		751,809		821,784		2,799,879
	Payroll and social security liabilities		-		-		-		10,726		-		7,513		6,470		-		-		-		-		24,709
	Provisions		-		9		3,303		-		-		-		-		-		-		-		-		3,312
	Total		-		9		3,303		274,823		338,333		434,215		76,252		252,097		22,915		752,114		821,963		2,976,024

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations

and Section 12, Chapter III, Title IV of Resolution 622/13

Unaudited Condensed Interim Statement of Financial Position as of September 30, 2014

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

4.a.

Breakdown of accounts receivable and liabilities by currency and maturity.

Items		Current			Non-current			Total
		Local currency	Foreign currency	Total	Local currency	Foreign currency	Total	Local currency	Foreign currency	Total
		Local currency	Foreign currency	Total	Local currency	Foreign currency	Total	Local currency	Foreign currency	Total
Accounts receivables	Trade and other receivables	191,469	110,887	302,356	12	-	12	191,481	110,887	302,368
	Income tax credit and deferred income tax	9,805	-	9,805	399,048	-	399,048	408,853	-	408,853
	Total	201,274	110,887	312,161	399,060	-	399,060	600,334	110,887	711,221
Liabilities	Trade and other payables	110,100	36,930	147,030	1,094	-	1,094	111,194	36,930	148,124
	Borrowings	268,318	683,566	951,884	249,664	1,598,331	1,847,995	517,984	2,281,895	2,799,879
	Payroll and social security liabilities	24,709	-	24,709	-	-	-	24,709	-	24,709
	Provisions	9	-	9	3,303	-	3,303	3,312	-	3,312
	Total	403,136	720,496	1,123,632	254,061	1,598,331	1,852,392	657,199	2,318,825	2,976,024

4.b.

Breakdown of accounts receivable and liabilities by adjustment clause.

On September 30, 2014 there are no receivable and liabilities subject to adjustment clause.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations

and Section 12, Chapter III, Title IV of Resolution 622/13

Unaudited Condensed Interim Statement of Financial Position as of September 30, 2014

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

4.c.	Breakdown of accounts receivable and liabilities by interest accrual.

Items		Current				Non-current				Accruing interest		Non Accruing interest	Total
		Accruing interest		Non-accruing interest	Subtotal	Accruing interest		Non-accruing interest	Subtotal	Accruing interest
		Fixed	Floating	Non-accruing interest	Subtotal	Fixed	Floating	Non-accruing interest	Subtotal	Fixed	Floating
Accounts receivables	Trade and other receivables	34,782	66,869	200,705	302,356	-	-	12	12	34,782	66,869	200,717	302,368
	Income tax credit and deferred income tax	-	-	9,805	9,805	-	-	399,048	399,048	-	-	408,853	408,853
	Total	34,782	66,869	210,510	312,161	-	-	399,060	399,060	34,782	66,869	609,570	711,221
Liabilities	Trade and other payables	-	-	147,030	147,030	-	-	1,094	1,094	-	-	148,124	148,124
	Borrowings	725,558	212,156	14,170	951,884	1,493,888	346,596	7,511	1,847,995	2,219,446	558,752	21,681	2,799,879
	Payroll and social security liabilities	-	-	24,709	24,709	-	-	-	-	-	-	24,709	24,709
	Provisions	-	-	9	9	-	-	3,303	3,303	-	-	3,312	3,312
	Total	725,558	212,156	185,918	1,123,632	1,493,888	346,596	11,908	1,852,392	2,219,446	558,752	197,826	2,976,024

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations

and Section 12, Chapter III, Title IV of Resolution 622/13

Unaudited Condensed Interim Statement of Financial Position as of September 30, 2014

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

Companies under section 33 of law N° 19,550 and other related parties.

Interest in companies under section 33 of law N° 19,550.

Name of the entity	Place of business / country of incorporation	Principal activity (*)	% of ownership interest held by the Group
Direct equity interest:
BrasilAgro-Companhía Brasileira de Propiedades Agrícolas (1)	Brazil	Agricultural	39.63%(2)
Doneldon S.A.	Uruguay	Investment	100%
Futuros y Opciones.Com S.A.	Argentina	Brokerage	59.59%
Helmir S.A.	Uruguay	Investment	100.00%
IRSA	Argentina	Real Estate	64.87%(2)
FyO Trading S.A.	Argentina	Brokerage	2.20%
Sociedad Anónima Carnes Pampeanas	Argentina	Agro-industrial	100.00%
Agromanagers S.A.	Argentina	Financing	46.84%
Agrouranga S.A.	Argentina	Agricultural	35.72%
Granos de Olavarría S.A.	Argentina	Warehousing and brokerage	2.20%

(*)

All companies whose principal activity is “investment” do not have significant assets and liabilities other than their respective interest holdings in operating entities.

(1)

The Group has consolidated the investment in BrasilAgro-Companhía Brasileira de Propiedades Agrícolas (“BrasilAgro”) considering that the Company exercises “de facto control” over it.

(2)

The effect of treasury shares as of September 30, 2014 was not considered.

Related parties debit / credit balances. See Note 30.

6.	Loans to directors.

See Note 30.

7.	Inventories.

The company conducts physical inventories once a fiscal year in each property, covering all the assets under such account. There is no relevant immobilization of inventory.

8.	Current values.

See Note 2 to the Consolidated Financial Statements as of June 30, 2014 and 2013.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations

and Section 12, Chapter III, Title IV of Resolution 622/13

Unaudited Condensed Interim Statement of Financial Position as of September 30, 2014

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

9.	Appraisal revaluation of property, plant and equipment.

None.

10.	Obsolete unused property, plant and equipment.

None.

11.	Equity interest in other companies in excess of that permitted by section 31 of law N° 19,550.

None.

12.	Recovery values.

See Note 2 to the Consolidated Financial Statements as of June 30, 2014 and 2013.

13.	Insurances.

The types of insurance used by the company were the following:

Insured property	Risk covered	Amount insured Ps.	Book value Ps.
Buildings, machinery, silos, installation and furniture and equipment	Theft, fire and technical insurance	474,269	441,952
Vehicles	Third parties, theft, fire and civil liability	11,833	4,267

14.	Allowances and provisions that, taken individually or as a whole, exceed 2% of the shareholder’s equity.

None.

15.	Contingent situations at the date of the financial statements which probabilities are not remote and the effects on the Company’s financial position have not been recognized.

Not applicable.

16.	Status of the proceedings leading to the capitalization of irrevocable contributions towards future subscriptions.

Not applicable.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Information required by Section 68 of the Buenos Aires Stock Exchange Regulations

and Section 12, Chapter III, Title IV of Resolution 622/13

Unaudited Condensed Interim Statement of Financial Position as of September 30, 2014

Stated in thousands of pesos

Free translation from the original prepared in Spanish for publication in Argentina

17.

Unpaid accumulated dividends on preferred shares.

None.

18.

Restrictions on distributions of profits.

According to the Argentine laws, 5% of the profit of the year is separated to constitute legal reserves until they reach legal capped amounts (20% of total capital). These legal reserves are not available for dividend distribution.

In addition, according to CNV General Resolution No. 609/12, a special reserve was constituted which could not be released to make distributions in cash or in kind. See Note 27 to the Unaudited Condensed Interim Consolidated Financial Statements.

Free translation from the original prepared in Spanish for publication in Argentina

REVIEW REPORT ON THE UNAUDITED CONDENSED INTERIM SEPARATE FINANCIAL STATEMENTS

To the Shareholders, President and Directors of

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria

Legal address: Moreno 877 – 23° floor

Autonomous City Buenos Aires

Tax Code No. 30-50930070-0

Introduction

We have reviewed the unaudited condensed interim separate financial statements attached of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (hereinafter “the Company”) which included the unaudited condensed interim separate statements of financial position as of September 30, 2014, the unaudited condensed interim separate statements of income and comprehensive income for the three-month period ended September 30, 2014, the unaudited condensed interim separate statements of changes in shareholders’ equity and the unaudited condensed interim separate statements of cash flows for the three-month period ended September 30,2014 and selected explanatory notes.

Management responsibility

The Board of Directors of the Company is responsible for the preparation and presentation of these unaudited condensed interim separate financial statements in accordance with professional accounting standards of Technical Resolution No. 26 of the Argentine Federation of Professional Councils in Economic Sciences (FACPCE) added by the National Securities Commission (CNV) to its regulations. Those standards differ from the International Financial Reporting Standards (IFRS) and, especially, from the International Accounting Standard No 34 "Interim Financial Reporting" (IAS 34) approved by the International Accounting Standard Board (IASB) and used for the preparation of the unaudited condensed interim consolidated financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria with its subsidiaries as to the aspects mentioned in note 2.2 to the unaudited condensed interim separate financial statements attached. Our responsibility is to express a conclusion based on the review that we have performed with the scope detailed in paragraph “Scope of our review”.

Free translation from the original prepared in Spanish for publication in Argentina

Scope of our review

Our review was limited to the application of the procedures established in the International Standard on Review Engagements ISRE 2410 "Review of interim financial information performed by the independent auditor of the entity", which was adopted as a review standard in Argentina through Technical Resolution No. 33 of the FACPCE as approved by the International Auditing and Assurance Standards Board (IAASB). A review of interim financial information consists of making inquiries of persons responsible for the preparation of the information included in the unaudited condensed interim separate financial statements, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the unaudited condensed interim separate statement of financial position, the unaudited condensed interim separate statements of income and comprehensive income, the unaudited condensed interim separate statements of changes in shareholders’ equity and the unaudited condensed interim separate statement of cash flow of the Company.

Conclusion

Nothing came to our attention as a result of our review that caused us to believe that these unaudited condensed interim separate financial statements mentioned in the first paragraph of this report have not been prepared in all material respects in accordance with the regulations of Technical Resolution No. 26 of the Argentine Federation of Professional Councils in Economic Sciences for separate financial statements of a parent company.

Report on compliance with current regulations

In accordance with current regulations, we report about Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria that:

the unaudited condensed interim separate financial statements of Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria are recorded in the "Inventory and Balance Sheet Book", and comply, as regards those matters that are within our competence, with the provisions set forth in the Commercial Companies Law and in the corresponding resolutions of the National Securities Commission;

we have read the additional information to the notes to the unaudited condensed interim separate financial statements required by section 68 of the listing regulations of the Buenos Aires Stock Exchange and by section 12 of Chapter III Title IV of the text of the National Securities Commission, on which, as regards those matters that are within our competence, we have no observations to make;

Free translation from the original prepared in Spanish for publication in Argentina

Autonomous City of Buenos Aires, November 11, 2014

PRICE WATERHOUSE & Co. S.R.L.

(Partner)

C.P.C.E.C.A.B.A. Tº 1 Fº 17

Dr. Carlos Martín Barbafina

Public Accountant (U.C.A.)

C.P.C.E.C.A.B.A. Tº 175 Fº 65

Cresud S.A.C.I.F. y A.

Summary as of September 30, 2014

Buenos Aires, November 11, 2014 - Cresud S.A.C.I.F. y A. (NASDAQ: CRESY – BCBA: CRES), one of the leading agricultural companies in South America, announces today its results for the first three months of fiscal year 2015 ended September 30, 2014.

Results and highlights for the period

	IQ 2015		IQ 2014		YoY var			FY 2014		FY 2013		YoY var
Revenues		1,524.0		1,126.1		35.3	%		4,604.0		3,528.6		30.5	%
Costs		-1,252.4		-885.9		41.3	%		-3,914.6		-3,120.5		25.4	%
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest		282.2		126.3		123.5	%		1,152.7		886.7		30.0	%
Changes in the fair value of agricultural produce after harvest		-22.0		-8.0		174.9	%		-17.4		11.8		-
Gross Profit		531.8		358.5		48.3	%		1,824.6		1,306.6		39.7	%
Gain from disposal of investment properties		316.8		-		-			230.9		178.0		29.7	%
Gain from disposal of farmlands		-		-		-			91.4		149.6		-38.9	%
General and administrative expenses		-139.4		-111.7		24.8	%		-533.9		-346.4		54.1	%
Selling expenses		-122.3		-81.0		51.0	%		-352.7		-279.5		26.2	%
Other operating results, net		9.4		-4.2		-			-75.0		98.1		-
Profit from Operations		596.3		161.6		268.9	%		1,185.2		1,106.4		7.1	%
Share of (loss) / profit of associates and joint ventures		-102.7		38.4		-			-408.7		-9.8		4062.3	%
Profit from Operations before Financing and Taxation		493.6		200.0		146.8	%		776.6		1,096.5		-29.2	%
Financial results, net		-340.8		-334.4		1.9	%		-2,574.4		-908.8		183.3	%
Profit / (loss) before income tax		152.7		-134.4		-			-1,797.8		187.8		-
Income tax expense		-131.1		45.4		-			389.4		-33.5		-
Profit / (loss) for the period		21.7		-89.0		-			-1,408.4		154.3		-

Attributable to:
Cresud’s Shareholders		-122.0		-97.8		24.7	%		-1,067.9		-26.9		3,868.8	%
Non-controlling interest		143.7		8.8		1526.3	%		-340.5		181.2		-

►

During this quarter our revenues were 35.3% higher than in the same period of the previous fiscal year. This was mainly due to a 49.1% increase in the agricultural segment, explained by higher sales of grains, sugarcane, beef cattle and milk, along with a 25.0% increase in revenues from the urban segment.

►

Gross profit rose 48.3% during the first quarter of 2015, mainly due to higher revenues and higher recognition of the fair value of biological assets and agricultural products. Besides, profit from operations increased by 268.9% in the period under review, mainly explained by the sale of the Madison 183 building in New York by our subsidiary IRSA.

►	The net profit was positive for ARS 21.7 million, compared to a loss of ARS 89.0 million in the same quarter of 2014.

Cresud S.A.C.I.F. y A.

Summary as of September 30, 2014

Description of Operations by Segment

	IQ 2015						IQ 2014						Variation
	Agri		Urban		Total		Agri		Urban		Total		Agri			Urban			Total
Revenues		770.9		799.6		1,570.4		517.1		639.5		1,156.7		49.1	%		25.0	%		35.8	%
Costs		-931.9		-361.2		-1,293.1		-603.3		-308.6		-911.9		54.5	%		17.0	%		41.8	%
Changes in the fair value of biological assets and agricultural products at the point of harvest		284.0		-		284.0		126.6		-		126.6		124.3	%		-			124.3	%
Changes in the fair value of agricultural produce after harvest		-22.0		-		-22.0		-8.0		-		-8.0		174.9	%		-			174.9	%
Gross profit		100.9		438.4		539.3		32.4		331.0		363.4		211.5	%		32.5	%		48.4	%
Gain from disposal of investment properties		-		316.8		316.8		-		-		-		-			-			-
Gain from disposal of farmlands		16.4		-		16.4		-		-		-		-			-			-
General and administrative expenses		-61.1		-80.3		-141.4		-53.7		-59.1		-112.8		13.9	%		35.7	%		25.3	%
Selling expenses		-86.9		-38.1		-124.9		-50.4		-31.9		-82.3		72.3	%		19.5	%		51.9	%
Other operating results, net		6.5		2.9		9.5		5.2		-10.0		-4.8		25.7	%		-			-
(Loss) / Profit from Operations		-24.2		639.8		615.6		-66.5		230.0		163.5		-63.6	%		178.2	%		276.5	%
Share of loss of associates		-1.2		-117.2		-118.4		-		34.4		34.4		-			-			-
Segment (Loss) / Profit		-25.3		522.5		497.2		-66.5		264.3		197.9		-61.9	%		97.7	%		151.3	%

Grains and Sugarcane

After a neutral 2014 season in the region, with improved weather conditions in Argentina and Paraguay and greater problems in Brazil and Bolivia, better rainfall levels have been recorded at the start of this season as compared to the beginning of 2014 and there have been no signs of droughts, at least until to date. For 2015, we forecast regular weather conditions and a good season in terms of yields. In this sense, we expect to plant approximately 207,000 hectares in the set of countries of the region in which we operate and to reach a production comparable to the one obtained in the past season. We have still not started planting activities in most of the crops in Argentina, Paraguay and Brazil. We have only completed planting of winter crops in Bolivia. Price-wise, the sector is facing the juncture of a large American harvest and thus prices are still very depressed. We expect that the current price levels will be maintained during the following quarter.

Grains

in ARS MM	IQ 2015		IQ 2014		YoY var			FY 2014		FT 2013		YoY var
Revenues		330.4		271.1		21.9	%		836.8		750.4		11.5	%
Costs		-438.2		-295.3		48.4	%		-1,540.7		-1,227.8		25.5	%
Changes in the fair value of biological assets and agricultural products at point of harvest		167.3		63.7		162.8	%		868.4		572.1		51.8	%
Changes in the fair value of agricultural produce after harvest		-22.0		-8.0		174.9	%		-17.6		11.8		-249.3
Gross profit		37.5		31.4		19.3	%		146.9		106.4		38.0	%
General and administrative expenses		-31.6		-28.2		11.9	%		-149.0		-90.1		65.3	%
Selling expenses		-50.4		-32.3		56.1	%		-117.9		-116.1		1.5	%
Other operating results, net		4.9		5.5		-11.3	%		-28.3		-7.5		275.5	%
Loss from Operations		-39.6		-23.5		68.5	%		-148.3		-107.4		38.1	%
Share of profit /(loss) of associates		-1.0		-		2651.4	%		11.0		8.1		35.6	%
Segment Loss		-40.6		-23.5		72.6	%		-137.3		-99.2		38.3	%

Cresud S.A.C.I.F. y A.

Summary as of September 30, 2014

Sugarcane

In ARS MM	IQ 2015		IQ 2014		YoY var			FY 2014		FY 2013		YoY var
Revenues		100.2		66.7		50.1	%		123.9		160.3		-22.7	%
Costs		-151.2		-107.1		41.1	%		-206.8		-302.2		-31.6	%
Changes in the fair value of biological assets and agricultural produce at the point of harvest		70.3		40.6		73.2	%		96.2		197.3		-51.2	%
Changes in the fair value of agricultural produce after harvest		-		-		-			-		-		-
Gross Profit		19.4		0.2		8,903.3	%		13.3		55.4		-75.9	%
General and administrative expenses		-13.1		-10.7		22.3	%		-28.3		-24.2		17.0	%
Selling expenses		-4.6		-0.3		1,269.9	%		-4.9		-4.0		21.6	%
Other operating results, net		-		-		-			-0.6		-		1,944.4	%
Profit / (Loss) from Operations		1.6		-10.8		-			-20.4		27.2		-
Share of profit /(loss) of associates		-		-		-			-		-		-
Segment Profit / (Loss)		1.6		-10.8		-			-20.4		27.2		-

Operations

	Production							Sales
In tons	IQ 2015		IQ 2014		YoY var			IQ 2015		IQ 2014		YoY var
Corn		222,903		72,772		206.3	%		150,937		140,397		7.5	%
Soybean		837		975		-14.2	%		50,924		55,750		-8.7	%
Wheat		-		-		-			207		211		-2.1	%
Sorghum		2,131		3,649		-41.6	%		283		2,450		-88.5	%
Sunflower		208		-		-			1,686		5,741		-70.6	%
Other		1,801		536		236.0	%		50		375		-86.7	%
Total Grains and Other		227,880		77,933		192.4	%		204,086		204,923		-0.4	%
Sugarcane		417,577		437,407		-4.5	%		415,760		455,409		-8.7	%
Total Agricultural Production		645,457		515,340		25.2	%		619,846		660,332		-6.1	%

►	The Grains segment decreased mainly as a result of lower holding results, originated in a fall in commodity prices, and higher administrative and selling expenses, mainly due to foreign exchange differences arising from the conversion of Brasilagro’s expenses.

►

The sugarcane segment went up from a loss of ARS 10.8 million to profit for ARS 1.6 million, mainly reflecting a 372% increase in production income originated largely in Brazil as a result of the significant increase in expected and achieved yields, and higher commercial expenses due to a shortfall in the provision for expenses recorded in 2013.

Area in Operation – Grains (hectares) 1	IQ 2015		IQ 2014		YoY var
Own farms		127,041		129,825		-0.2	%
Leased farms		50,157		50,631		-0.9	%
Farms under concession		21,478		21,444		0.2	%
Own farms leased to third parties		8,752		5,059		73.0	%
Total Area Assigned to Grain Production		207,428		206,960		0.2	%

►	The area in operation for the Grains segment increased by only 0.2%, reaching 207,428 hectares.

1Includes surface area under double cropping, all the farms in Argentina, Bolivia and Brazil, and the proportional interest in Paraguay (Joint ventures – 50%) and AgroUranga (Subsidiary – 35.72%).

Cresud S.A.C.I.F. y A.

Summary as of September 30, 2014

Beef Cattle

in ARS MM	IQ 2015		IQ 2014		YoY var			FY 2014		FY 2013		YoY var
Revenues		62.3		31.4		98.6	%		90.3		82.9		8.9	%
Costs		-82.7		-56.4		46.7	%		-160.7		-147.3		9.1	%
Changes in the fair value of biological assets and agricultural produce at the point of harvest		29.2		10.9		168.7	%		145.3		79.3		83.2	%
Changes in the fair value of agricultural produce after harvest		-		-		-			0.2		-		-
Gross Profit / (Loss)		8.8		-14.1		-			75.2		14.9		403.0	%
Profit / (Loss) from Operations		-4.7		-26.6		-82.3	%		31.6		-12.0		-
Segment Profit / (Loss)		-4.7		-26.6		-82.3	%		31.6		-12.0		-

Beef Cattle (tons)	IQ 2015		IQ 2014		YoY var			FY 2014		FY 2013		YoY var
Beef cattle production		1,264		1,796		-29.6	%		7,380		8,196		-10.0	%
Beef cattle sales		4,151		4,225		-1.8	%		9,275		10,180		-8.9	%

►	Revenues increased by 98% compared to the same period of the previous year, mainly due to a strong increase of 100% in beef prices. The significant rise experienced by beef cattle during the period has led to higher holding results by ARS 16.5 million.

►

The variation of costs was lower than that of revenues, mainly due to lower costs of third-party feedlot livestock and lower feeding expenses due to the good pastures we had during this period compared to the previous year, when higher supplemental feeding had been required due to dry weather conditions.

Area in Operation – Beef Cattle (hectares)	IQ 2015		IQ 2014		YoY var
Own farms		76,976.6		75,482.4		2.0	%
Leased farms		13,501.0		12,635.0		6.9	%
Farms under concession		869.0		-		-
Own farms leased to third parties		5,078.2		5,495.2		-7.6	%
Total Area Assigned to Beef Cattle Production		96,424.8		93,612.6		3.0	%

►

We have increased the area of own farms assigned to beef cattle production. Besides, we have reduced the area of own farms with beef cattle production leased to third parties.

Stock of Cattle Heads	IQ 2015		IQ 2014		YoY var
Breeding stock		53,646		44,766		19.8	%
Winter grazing stock		6,157		8,952		-31.2	%
Milk farm stock		6,378		6,666		-4.3	%
Total Stock (heads)		66,181		60,384		9.6	%

Cresud S.A.C.I.F. y A.

Summary as of September 30, 2014

Dairy

in ARS MM	IQ 2015		IQ 2014		YoY var			FY 2014		FY 2013		YoY var
Revenues		17.5		11.8		48.5	%		53.9		38.8		38.9	%
Costs		-32.8		-22.9		43.4	%		-104.3		-74.8		39.4	%
Changes in the fair value of biological assets and agricultural produce at the point of harvest		17.2		11.5		49.9	%		62.8		40.7		54.2	%
Gross Profit		1.8		0.4		426.3	%		12.4		4.7		162.9	%
Profit / (Loss) from Operations		-		-1.8		-			3.7		-0.6		-
Segment Profit / (Loss)		-		-1.8		-			3.7		-0.6		-

Milk Production	IQ 2015		IQ 2014		YoY var			FY 2014		FY 2013		YoY var
Milk Production (liters)		4,560		4,771		-4.4	%		19,320		18,459		4.7	%
Milk sales (liters)		4,409		4,611		-4.4	%		18,787		17,870		5.1	%
Daily average milking cows (heads)		2,208		2,484		-11.1	%		2,588		2,439		6.1	%
Milk Production / Milking Cow / Day (liters)		22.4		20.9		7.5	%		20.5		20.7		-1.4	%

►

We have decreased milk production hand in hand with the number of milking cows per day. On the contrary, there has been an increase in the level of production per milking cow per day, surpassing our productivity target of 20 liters by milking cow per day following the consolidation of our operations in our “El Tigre” state-of-the-art milking facility.

►	There has been an increase in revenues from sales of this segment compared to the same quarter of the previous fiscal year, mainly due to a 51.4% increase in the price of milk.

►	Gross profit rose by 426%, mainly due to the higher price of milk, an increase in costs that was slightly lower than revenues and higher income from changes in the fair value of biological assets.

►	The increase in Gross Profit, coupled with contained selling and administrative expenses have led to profit of ARS 0.01 million in this segment, compared to a loss of ARS 1.8 million in the same period of the previous fiscal year.

Area in Operation – Milk (hectares)		IQ 2015				IQ 2014				YoY var
Own farms			2,864				2,864				0	%

►	We perform our milking business in El Tigre farm. There were no changes in the area assigned to milking cows.

Cresud S.A.C.I.F. y A.

Summary as of September 30, 2014

Leases and Agricultural Services

in ARS MM	IQ 2015		IQ 2014		YoY var			FY 2014		FY 2013		YoY var
Revenues		4.8		2.1		125.7	%		29.1		30.8		-5.5	%
Costs		-5.2		-2.6		102.5	%		-17.4		-12.1		44.2	%
Gross Loss		-0.4		-0.4		-7.3	%		11.8		18.8		-37.3	%
Profit / (Loss) from Operations		-1.1		-1.4		-19.0	%		8.0		12.1		-34.2	%
Segment Profit / (Loss)		-1.1		-1.4		-19.0	%		8.0		12.1		-34.2	%

►	Revenues increased 125%, mainly due to higher rental prices, a new lease agreement in the Chaparral farm (Brazil) and higher revenues from agricultural management services.

►	Costs increased in line with revenues. It should be noted that during this quarter, for seasonal reasons, the Company had to afford irrigation service expenses, which will generate income in the coming quarters.

►	Loss from this segment was ARS 1.1 million.

Sales and Transformation of Lands

in ARS MM	IQ 2015		IQ 2014		YoY var			FY 2014		FY 2013		YoY var
Revenues
Costs		-2.7		-1.8		51.2	%		-8.2		-5.7		45.0	%
Gross Loss		-2.7		-1.8		51.2	%		-8.2		-5.7		45.0	%
Gain from disposal of investment properties		-		-		-			-		-		-
Gain from sale of farmlands		16.4		-		-			91.4		149.6		-38.9	%
Profit / (loss) from Operations		12.2		-2.3		-			78.0		132.6		-41.2	%
Segment Profit / (Loss)		12.2		-2.3		-			78.0		132.6		-41.2	%

►

The result from the sale of farms relates to the sale of a fraction of 24,624 hectares in the field in Paraguay owned by Cresca, made by our subsidiary Brasilagro. Although the preliminary purchase agreement was executed on April 3, 2014, possession has been surrendered upon the execution of the deed of conveyance and security mortgage, signed on July 14, 2014.

Area under Development (hectares)	Developed in 2013/2014	Projected for 2014/2015
Argentina	2,378	1,678
Brazil	13,000	6,000
Paraguay (1)	-	4,192
Total	15,378	11,870

(1) Includes the farms owned by Cresca S.A. at a 100% rate.

►	During the previous season, we developed more than 15,000 hectares in the region, and we expect to develop 11,870 additional hectares during this season.

Agro-industrial activities

in ARS MM	IQ2015		IQ2014		YoY var			FY 2014		FY 2013		YoY var
Revenues		215.9		108.9		98.3	%		554.1		208.9		165.2	%
Costs		-188.8		-97.0		94.8	%		-479.7		-204.7		134.4	%
Gross Profit		27.1		12.0		126.7	%		74.4		4.2		1,654.6	%
Profit / (loss) from Operations		2.0		-2.8		-			1.9		-29.6		-
Segment Profit / (loss)		2.0		-2.8		-			1.9		-29.6		-

Cresud S.A.C.I.F. y A.

Summary as of September 30, 2014

►

In this segment we reported the results from our meat packing and feedlot business through our subsidiary Cactus. We have discontinued feedlot fattening activities, resulting in a contribution of ARS 1.4 million to this segment’s income. As concerns meat packing activities, we see an improvement as compared to the previous year, with positive segment results. We expect that the context of this industry will improve in the future, leading to higher results.

Other Segments

in ARS MM	IQ 2015	IQ 2014	YoY var	FY 2014	FY 2013	YoY var
Revenues	39.7	25.1	58.2%	124.0	83.3	48.8%
Costs	-30.3	-20.3	49.3%	-100.3	-71.2	40.8%
Changes in the fair value of biological assets and agricultural produce at the point of harvest	-	-	-	-	-1.0	-100.0%
Gross Profit	9.4	4.8	96.4%	23.7	11.1	113.9%
Management fee	-	-	-	-	-	-
Profit from Operations	5.5	2.8	97.1%	8.1	12.8	-36.5%
Segment Profit	5.4	2.8	89.5%	8.6	13.9	-38.2%

►	In this segment we report mainly the results from our controlled company Futuros y Opciones S.A. (“FyO”). There has been an operating improvement as compared to the same quarter of the previous fiscal year, and we expect this trend to continue during the current fiscal year.

Cresud S.A.C.I.F. y A.

Summary as of September 30, 2014

Urban Properties and Investments: IRSA Inversiones y Representaciones Sociedad Anónima

We develop our Urban Properties and Investments segment through our subsidiary IRSA. As of September 30, 2014, our equity interest in IRSA was 65.42%.

IRSA is one of Argentina’s leading real estate companies in terms of total assets. IRSA is engaged, directly or indirectly through subsidiaries and joint ventures, in a range of diversified real estate related activities in Argentina and abroad, including:

►

The acquisition, development and operation of shopping centers, through its interest of 95.73% in Alto Palermo S.A. (“APSA”) (Nasdaq: APSA, BCBA: APSA). APSA is one of Argentina’s leading operators of shopping centers and holds a controlling interest in 13 shopping centers with more than 310,000 square meters of Gross Leaseable Area.

►	The acquisition, development and exploitation of office buildings and other non-shopping center properties primarily for rental, for which purpose it has over 120,000 square meters of office leaseable space.

►	The acquisition and development of residential properties and the acquisition of undeveloped land reserves for future development or sale.

►	The acquisition and exploitation of luxury hotels.

►	Selective investments outside Argentina.

►	Financial investments, including IRSA’s current 29.77% equity interest in Banco Hipotecario, which is one of the leading financial institutions in Argentina.

The following information has been extracted from the financial statements of our controlled company IRSA as of September 30, 2014:

in ARS MM	IQ 15		IQ 14		Var (ARS)			var (%)
Revenues		790.1		621.4		168.7			27.1	%
Profit from Operations		640.1		229.1		411.0			179.4	%
Depreciation and amortization		42.8		55.1		(12.3	)		(22.3	)%
EBITDA[1]		682.9		284.2		398.7			140.3	%
Profit for the period		135.8		35.3		100.5			284.7	%

Our stake in IRSA has a high impact on our results, therefore we recommend the reading of detailed information on IRSA provided in its website (www.irsa.com.ar), in the Argentine Securities Commission website (www.cnv.gob.ar) and in the Securities and Exchange Commission website (www.sec.gov).

Cresud S.A.C.I.F. y A.

Summary as of September 30, 2014

Financial Indebtedness and Other

As of September 30, 2014 Cresud had a total net indebtedness equivalent to USD 740.1 million. The following table contains a breakdown of Cresud’s indebtedness:

Description	Currency	Amount (1)	Interest Rate	Maturity
Short Term	ARS	11.1	Float	< 365 days
Banco Ciudad Loan	USD	14.5	Libor 180days+300 bps; floor:6%	18-Jan-22
Banco de la Pampa Loan	ARS	2.4	variable [10.5% ; 14.5%]	03-Aug-17
Cresud’s’ 2015 Series XI Notes (3)	ARS	6.4	Badlar + 375 bps	22-Jun-15
Cresud’s 2014 Series XII Notes	ARS	4.0	Badlar + 410 bps	24-Nov-14
Cresud’s 2015 Series XIII Notes	USD	79.4	1.90%	22-May-15
Cresud’s 2018 Series XIV Notes	USD	32.0	1.50%	22-May-18
Cresud’s 2015 Series XV Notes	ARS	20.9	Badlar + 399 bps	18-Nov-15
Cresud’s 2018 Series XVI Notes	USD	109.1	1.50%	19-Nov-18
Cresud’s 2016 Series XVII Notes	ARS	20.4	Badlar +250 bps	14-Mar-16
Cresud’s 2019 Series XVIII Notes	USD	33.7	4.00%	12-Sep-19
Com. 5319 Loan	ARS	1.4	15.01%	05-Dec-15
FyO Com 5449 Mortgage Loan	ARS	0.1	15.25%	28-Dec-16
Bolivia Investment Loan	BOB	1.2	7.00%	25-May-17
Cresud’s Total Debt		336.6
IRSA’s 2017 Series I Notes (4)	USD	150.0	8.50%	02-Feb-17
IRSA’s 2020 Series II Notes (5)	USD	150.0	11.50%	20-Jul-20
Series V Notes	ARS	24.8	Badlar + 395 bps	26-Aug-15
Series VI Notes	ARS	1.3	Badlar + 450 bps	27-Feb-17
Short Term	ARS	44.9	Variable	< 180 days
HASA 5449 Mortgage Loan	ARS	0.6	15.25%	29-Dec-16
Llao Llao 5449 Mortgage Loan	ARS	0.5	15.25%	29-Dec-16
IRSA’s Total Debt		372.1
APSA’s 2017 Series I Notes (2)	USD	120.0	7.88%	11-May-17
Short Term Debt	ARS	37.2	Variable	< 30 days
Syndicated Loan - Arcos	ARS	7.8	15.01%	16-Nov-15
Com. 5319 Loan	ARS	1.9	15.01%	12-Dec-15
Syndicated Loan - Neuquen	ARS	10.2	15.25%	14-Jun-16
CAPEX Citi 5449	ARS	0.7	15.25%	23-Dec-16
NPSF 5449 Mortgage Loan	ARS	1.2	15.25%	29-Dec-16
APSA’s Total Debt		179.1
Brasilagro’s Total Debt		28.2
Cresud’s Total Consolidated Debt		915.9
Consolidated Cash		175.7
Repurchased debt		32.7
Net Consolidated Debt		740.1
1 Principal face value in USD (million) at an exchange rate of 8.43 ARS = 6.96 BOB = 2.447 BRL = 1 USD, without considering accrued interest or elimination of balances with subsidiaries.
2 As of September 30, 2014 the Company had repurchased a face value of USD 14.4 million.
3 As of September 30, 2014 the Company had repurchased a face value of USD 2.5 million.
4 As of September 30, 2014 the Company had repurchased a face value of USD 1.0 million.
5 As of September 30, 2014 the Company had repurchased a face value of USD 14.8 million.

Cresud S.A.C.I.F. y A.

Summary as of September 30, 2014

Material Events Occurred during the Period and Subsequent Events

Shareholders’ Meeting dated October 31, 2014

The Shareholders’ Meeting convened for October 31, 2014 was adjourned until November 14, which will resume discussion of the agenda.

Dividends receivable from FyO

Our subsidiary FyO approved the payment of a cash dividend to its shareholders for up to ARS 1.9 million, out of which Cresud is entitled to the sum of ARS 1.13 million. This dividend was collected on September 10, 2014.

Cresud S.A.C.I.F. y A.

Summary as of September 30, 2014

Prospects for the next fiscal year

After a neutral 2014 season in the region, with improved weather conditions in Argentina and Paraguay and greater problems in Brazil and Bolivia, better rainfall levels have been recorded at the start of this season as compared to the beginning of 2014 and there have been no signs of droughts, at least until to date. For 2015, we forecast regular weather conditions and a good season in terms of yields. In this sense, we expect to plant approximately 207,000 hectares in the set of countries of the region in which we operate and to reach a production comparable to the one obtained in the past season. Price-wise, the sector is facing the juncture of a large American harvest and thus prices are still very depressed. We expect that the current price levels will be maintained during the following quarter.

As concerns our beef cattle business in Argentina, we have observed positive results during the first quarter of 2015, combined with higher livestock production volumes, firm prices and controlled costs, a trend that we hope will continue throughout the year. On the other hand, we expect solid prices for the milk business and a competitive margin from our “El Tigre” dairy facility. In addition, we will continue to roll out our strategy of supplementing agriculture in our own farms with agriculture in leased farms and farms under concession. We expect to maintain the area of leased farms, yet relocating part of our portfolio in better areas. In this way, we will be able to obtain good results from this business if the weather proves to be favorable throughout the 2015 season.

As concerns land transformation and value-adding activities, we will make progress in the development of our farms in Argentina, Paraguay and Brazil, where we plan to transform approximately 12,000 hectares that will be placed into production during this fiscal year and in 2016. We remain watchful of sale opportunities that may arise, by disposing of those farms that have reached their highest degree of appreciation. In addition, we will continue to analyze opportunities in other countries of the region, as we plan to form a regional portfolio with high potential for development and valorization.

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 Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
December 22, 2014
	By:	/S/ Saúl Zang
		Saúl Zang
		Responsible for the relationship with the markets