Edgar Filing: CRESUD INC

Form 6-K

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 May, 2011

CRESUD SOCIEDAD ANONIMA 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, 23^rd Floor, (C1091AAQ)

Buenos Aires, Argentina

(Address of principal executive offices)

Form 20-F x Form 40-F ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

CRESUD S.A.C.I.F. and A

(THE “COMPANY”)

REPORT ON FORM 6-K

Attached is a copy of the English translation of the Financial Statements for the nine-month period ended on March 31, 2011 and on March 31, 2010 filed by the Company with the Bolsa de Comercio de Buenos Aires and with the Comisión Nacional de Valores.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria,

Financiera y Agropecuaria

Free Translation of the Unaudited Financial Statements

Corresponding to the nine-month periods

ended March 31, 2011 and 2010

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Financial Statements

Index


Presentation

Consolidated Balance Sheet			7

Consolidated Statement of Income			8

Consolidated Statement of Cash Flow			9

Notes to the Consolidated Financial Statements			12

Balance Sheet			86

Statement of Income			87

Statement of Changes in Shareholders’ Equity			88

Statement of Cash Flow			89

Notes to the Financial Statements			91

Schedules			139

Additional Information to the Notes to the Financial Statements required by section 68 of the Buenos Aires Stock Exchange Regulations			150

Business Highlights			157

Report of Independent Auditors			167

Cresud Sociedad Anónima,

Comercial, Inmobiliaria,

Financiera y Agropecuaria

Free Translation of the Unaudited

Consolidated Financial Statements

corresponding to the nine-month periods

ended March 31, 2011 and 2010

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Fiscal year No. 76 started on July 1, 2010

Unaudited Financial Statements for the period ended March 31, 2011

In comparative format with previous fiscal year (Note 1 - Consolidated Statements)

(in thousands of pesos)


Legal Address:		Moreno 877, 23 Floor
		Ciudad Autónoma de Buenos Aires

Principal Activity:		Agriculture, livestock and real-estate

DATES OF REGISTRATION AT THE PUBLIC REGISTRY OF COMMERCE

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


Of the by-laws:		February 19, 1937

Of the latest amendment:		July 28, 2008

Duration of the Company:		June 6, 2082

Information on controlled companies in Note 2 to the Consolidated Financial Statements

CAPITAL STATUS (Note 3 of basic financial statements)

Type of stock

Authorized to be
offered publicly

Subscribed

Paid-in

Ordinary certified shares of Ps. 1 face value and 1 vote each

501,561,060

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Unaudited Consolidated Balance Sheet as of March 31, 2011 and 2010 and June 30, 2010

(in thousands of pesos)

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


	March 31, 2011 (Notes 1 y 2)			June 30, 2010 (Notes 1 y 2)			March 31, 2010 (Notes 1 y 2)				March 31, 2011 (Notes 1 y 2)		June 30, 2010 (Notes 1 y 2)		March 31, 2010 (Notes 1 y 2)
ASSETS										LIABILITIES
Current Assets										Current Liabilities
Cash and banks (Note 4.a.)		219,459			80,919			83,302		Trade accounts payable (Note 4.i.)		310,241		403,743		373,713
Investments (nota 4.b)		286,073			278,968			237,272		Short-term debt (Note 4.j.)		1,047,682		1,059,736		912,169
Trade accounts receivable, net (Note 4.c.)		323,107			441,065			377,193		Salaries and social security payable (Note 4.k.)		48,394		61,484		43,581
Other receivables (Note 4.d.)		218,005			251,908			256,556		Taxes payable (Note 4.l.)		102,622		108,558		113,933
Inventories (Note 4.e.)		551,476			400,521			369,303		Customer advances (Note 4.m.)		254,656		216,464		197,225

Total Current Assets		1,598,120			1,453,381			1,323,626		Other liabilities (Note 4.n.)		191,441		75,842		106,619

										Provisions for lawsuits and contingencies (Note 4.o.)		2,845		2,890		4,212

										Total Current Liabilities		1,957,881		1,928,717		1,751,452

										Non-Current Liabilities
										Trade accounts payable (Note 4.i.)		58		23,368		11,425
Non-Current Assets										Customer advances (Note 4.m.)		90,651		90,393		93,507
Trade accounts receivable (Note 4.c.)		13,282			42,123			25,333		Long-term debt (Note 4.j.)		2,088,865		853,166		948,363
Other receivables (Note 4.d.)		226,265			248,315			236,552		Salaries and social security payable (Note 4.k.)		689		—		—
Inventories (Note 4.e.)		276,371			204,218			203,238		Taxes payable (Note 4.l.)		274,729		273,963		255,454
Investments on equity investees (Note 4.b.)		2,655,591			1,881,135			1,960,493		Other liabilities (Note 4.n.)		16,363		65,372		70,118
Other investments (Note 4.b.)		328			18,935			5,301		Provisions for lawsuits and contingencies (Note 4.o.)		12,398		9,708		7,507

Property and Equipment, net (Note 4.f.)		3,347,915			3,290,221			3,219,856		Total Non-Current Liabilities		2,483,753		1,315,970		1,386,374

Intangible assets, net (Note 4.g.)		74,355			88,585			72,471		Total Liabilities		4,441,634		3,244,687		3,137,826

Subtotal Non-Current Assets		6,594,107			5,773,532			5,723,244

Goodwill, net (Note 4.h.)		(226,116	)		(389,025	)		(366,557	)	Minority interest		1,423,532		1,625,008		1,577,679

Total Non-Current Assets		6,367,991			5,384,507			5,356,687		SHAREHOLDERS’ EQUITY		2,100,945		1,968,193		1,964,808

Total Assets		7,966,111			6,837,888			6,680,313		Total Liabilities and Shareholders’ Equity		7,966,111		6,837,888		6,680,313

The accompanying notes are an integral part of the consolidated financial statements

Fernando A. Elsztain

Director acting as President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Unaudited Consolidated Statements of Income

Corresponding to the nine-month periods beginning on July 1, 2010 and 2009

and ended March 31, 2011 and 2010

(in thousands of pesos)

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


	March 31, 2011			March 31, 2010
Agricultural production income (Note 5)		156,423			80,337
Cost of agricultural production (Note 5)		(113,719	)		(78,801	)

Production gain – Agricultural		42,704			1,536

Sales – crops, beef cattle, milk and others (Note 5)		238,866			159,411
Sales of farm (Note 5)		71,096			—
Cost of sales – crops, beef cattle, milk and others (Note 5)		(208,991	)		(144,580	)
Cost of sales of farms (Note 5)		(21,652	)		—

Sales profit – Agricultural business		79,319			14,831

Sales of slaughtering and feed lot (Note 5)		59,531			—
Cost of slaughtering and feed lot (Note 5)		(62,429	)		—

Sales (loss) – Slaughtering and feed lot business		(2,898	)		—

Sales and development of properties (Note 5)		188,738			155,132
Income from lease and service of offices, shopping centers, hotels, consumer financing and others (Note 5)		824,797			809,011
Cost of sales and development of properties (Note 5)		(147,491	)		(64,843	)
Cost of lease and service offices, shopping centers, hotels, consumer financing and others (Note 5)		(263,742	)		(294,137	)

Sales profit – Real estate business		602,302			605,163

Gross profit - Agricultural business		122,023			16,367

Gross loss - Slaughtering and Feed lot Business		(2,898	)		—

Gross profit - Real estate Business		602,302			605,163

Gross profit		721,427			621,530

Selling expenses (Note 5)		(123,980	)		(150,858	)
Administrative expenses (Note 5)		(187,891	)		(171,801	)
Gain from recognition of inventories at net realizable value (Note 5)		39,629			18,704
Unrealized gain (Note 4.p)		58,710			64,210
Net gain from retained interest in consumer finance trusts (Note 5)		4,707			34,824

Operating gain		512,602			416,609

Amortization of goodwill		27,806			38,758
Financial results
Generated by assets
Exchange gain		16,448			9,039
Interest income (Note 4.q)		17,729			14,052
Other unrealized gain (Note 4.q)		5,647			52,920

Subtotal		39,824			76,011

Generated by liabilities:
Exchange gain		(60,473	)		(24,931	)
Loans and convertible notes		(207,685	)		(139,482	)
Other unrealized loss (Note 4.q)		(6,106	)		(3,243	)

Subtotal		(274,264	)		(167,656	)

Financial results, net		(234,440	)		(91,645	)

Gain on participation in equity investees		98,949			140,218
Other income and expenses, net (Note 4.r)		(14,738	)		(17,811	)
Management fee		(15,751	)		(20,446	)

Net income before income tax and minority interest		374,428			465,683

Income tax and minimum presumed income tax		(89,149	)		(105,271	)
Minority interest		(143,517	)		(175,755	)

Net income for the period		141,762			184,657

Earnings per share :
Basic net gain per share (Note 9 to the basic financial statements)		0.29			0.38
Diluted net gain per share (Note 9 to the basic financial statements)		0.25			0.34

The accompanying notes are an integral part of the consolidated financial statements

Fernando A. Elsztain

Director acting as President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Unaudited Consolidated Statements of Cash Flows

Corresponding to the nine-month periods beginning on July 1, 2010 and 2009

and ended March 31, 2011 and 2010

(in thousands of pesos)

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


	March 31, 2011			March 31, 2010
Changes in cash and cash equivalents
Cash and cash equivalents at the beginning of the year		175,653			211,676
Cash and cash equivalents at the end of the period		450,354			120,801

Increase (decrease) net in cash and cash equivalents		274,701			(90,875	)

Causes of changes in cash and cash equivalents Operating activities
Income for the period		141,762			184,657
Income tax		89,149			105,271
Accrued Interest		183,646			141,131
Adjustments made to reach net cash flow from operating activities
Gain on equity investees		(98,949	)		(140,218	)
Minority interest		143,517			175,828
Increase in allowances and provisions		50,583			51,786
Depreciation and amortization		133,317			135,989
Unrealized loss on Inventories		(58,710	)		(64,210	)
Financial results		37,446			(85,389	)
Loss from sales of fixed assets and undeveloped parcels of land		18,978			18,984
Adjustment valuation to net realizable value in other assets		(39,629	)		(18,704	)
Amortization of goodwill		(27,806	)		(38,758	)
Gain on exchange of inventories		(19,332	)		—
Changes in operating assets and liabilities
Increase in trade accounts receivable, leases and services		(87,429	)		(88,842	)
Increase in other receivables		(43,264	)		(3,857	)
Increase in inventories		(26,984	)		(60,570	)
Increase in intangible assets		(2,549	)		(2,635	)
Decrease in social security payables, taxes payable and customer advances		(55,447	)		(82,766	)
Decrease in trade accounts payable		(33,167	)		(50,512	)
(Decrease) increase in other liabilities		(13,212	)		18,244

Cash flows provided by operating activities		291,920			195,429

Investing activities
Dividends collected		11,170			4,186
Increase in interest on equity investments		(954,093	)		(338,390	)
Income from sale of companies, net of funds		68,616			—
Payment for subsidiary acquired, net of cash acquired		(34,300	)		(8,622	)
Advances for purchase of shares		(1,473	)		(23,028	)
Advance sale of shares		—			19,952
Acquisition and upgrading of fixed assets		(105,762	)		(98,165	)
Sale of fixed assets		—			1,035
Increase of Intangible assets		—			(4,691	)
Decrease of investment		85,450			112,001
Purchase of undeveloped parcels of lands		(159	)		(29,937	)
Collection of loans granted		41			309
Loans granted to related companies Law No. 19,550 Section 33 and related parties		(24,300	)		—
Collection of loans granted of Subsidiaries, related companies Law No. 19,550 Section 33 and related parties		34,283			—
Collection of receivables of Subsidiaries, related companies Law No. 19,550 Section 33 and related parties		—			6,598

Cash flows applied to investing activities		(920,527	)		(358,752	)

Fernando A. Elsztain

Director acting as President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Unaudited Consolidated Statements of Cash Flows (continued)

Corresponding to the nine-month periods beginning on July 1, 2010 and 2009

and ended March 31, 2011 and 2010

(in thousands of pesos)

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


	March 31, 2011			March 31, 2010
Financing activities
Exercise of warrants and options		3			128
Expenses for repurchase of non-convertible notes		—			(12,000	)
Issuance of non-convertible notes		966,103			129,204
Increase in loans		344,018			482,676
Cash Dividends paid		(132,060	)		(95,291	)
Decrease in loans		(295,638	)		(235,350	)
Proceeds from issuance of short-term negotiable values		—			22,720
Acquisition of minority interest		—			(23,919	)
Loans from Subsidiaries		—			1,235
Payment on financial interest		(140,247	)		(143,974	)
Payment of Non-convertible Notes		(35,251	)		—
Contributions from minority shareholders		812			25,807
Proceeds from sale of Negotiable Obligations, net of expenses		281,882			—
Canceling financed purchases		(31,065	)		(78,788	)
Outlays by repurchase of Non-convertible Notes		(55,249	)		—

Cash flows provided by financing activities		903,308			72,448

Net increase (decrease) in cash and cash equivalents		274,701			(90,875	)

The accompanying notes are an integral part of the consolidated financial statements.


	March 31, 2011		March 31, 2010
Items not involving changes in cash and cash equivalents
Inventory transferred to property and equipment		1,043		1,661
Increase in non-current investment through an increase in other debts		—		12,300
Increase in property and equipment through an increase in trade accounts payable		432		5,623
Increase in permanent investments by transitory conversion differences		72,626		—
Undeveloped parcels of land transferred to inventories		3,030		—
Issuance of certificaties of participation		—		13,070
Decrease in inventories through an increase in customer advances		—		3,110
Decrease in inventories through a decrease in customer advances		1,920		—
Increase in non-current investment through an decrease in other receivables		39,770		8,838
Increase in non-current investment throgh an increase in other liabilities		139,136		—
Decrease in other investments through an increase in inventories		64,150		—
Increase in minority interest through a decrease in current other liabilities		20,557		14,512
Increase in non-current investment through a decrease in inventories		—		1,076
Property and equipment transferred to Inventories		—		39,144
Decrease in non-current investment through an increase in other receivables		—		25,711
Decrease in non-current investment through an increase in other receivables		—		6,359
Increase in inventories through a decrease in permanent investments		14,541		—
Complementary information
Income tax paid		33,649		61,402

Fernando A. Elsztain

Director acting as President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Consolidated Statements of Cash Flows (continued)

Corresponding to the nine-months periods beginning on July 1, 2010 and 2009

and ended March 31, 2011 and 2010

(in thousands of pesos)

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


	March 31, 2011			March 31, 2010
Acquisition of subsidiaries companies
Trade Accounts Receivables, net		17,727			11
Other receivables		(25,318	)		1,022
Investments		47,189			395
Inventories		17,454			—
Non-Current Investments		—			289
Property and equipment, net		22,899			11,278
Intangible assets		—			—
Goodwill		—			(2,718	)
Trade accounts payable		(40,737	)		—
Financial loans		(23,170	)		—
Salaries and social security payable		(4,508	)		(87	)
Taxes payable		(1,732	)		(27	)
Provisions for lawsuits		(1,288	)		—
Minority interest		(10,151	)		(5,294	)
Other liabilities		(2	)		—

Acquired assets that do not affect cash, net value		(1,637	)		4,869

Acquired funds		4,366			13

Net value of assets acquired		2,729			4,882

Minority interest		28,946			(897	)
Equity method before of consolidation		10,307			—
Goodwill generated by the purchase		(3,316	)		21,478

Purchase value of subsidiaries companies		38,666			25,463

Acquires funds		(4,366	)		(13	)
Amount funded by sellers		—			(14,574	)
Advanced amount		—			(2,254	)

Purchase value of subsidiaries companies, net of cash acquired		34,300			8,622


	March 31, 2011			March 31, 2010
Sale of Subsidiaries
Trade Accounts Receivables, net		254,345			—
Other receivables		28,606			—
Investment		138,930			—
Goodwill		7,827			—
Property and equipment		(92,022	)		—
Financial liabilities		(91,173	)		—
Trade accounts payable		(174,102	)		—
Salaries and social security payable		(10,703	)		—
Tax payables		(10,084	)		—
Other liabilities		(62	)		—
Provisions for lawsuits		214			—

Net value of sale assets not affecting cash		51,776			—

Advance funds		7,238			—
Impairment and sale of investment		(15,326	)		—
Remaining investment		(28,968	)		—
Amount financed by sellers		53,896			—

Income from sale of companies, net of funds transferred		68,616			—

Fernando A. Elsztain

Director acting as President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 1:

BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

Basis of consolidation

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (“Cresud” or “the Company”) consolidated on a line by line basis the Balance Sheet as of March 31, 2011 and 2010 and June 30, 2010, the Statements of Income and the Statements of Cash Flows for the periods ended as of March 31, 2011 and 2010 with the financial statements of subsidiaries, following procedures established by Technical Resolution No. 21 of the Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE), aproved by Consejo Profesional de Ciencias Económicas de la Ciudad Autónoma de Buenos Aires and Comisión Nacional de Valores.

Significant transactions and balances with subsidiaries have been eliminated from the consolidation.

The financial statements as of March 31, 2011 and 2010 and June 30, 2010 of the subsidiary companies Northagro S.A. (“Northagro”), Futuros y Opciones.Com S.A. (“FyO.Com”), Agrotech S.A. (“Agrotech”), Pluriagro S.A. (“Pluriagro”), FyO Trading S.A. (“FyO Trading”), Agrology S.A. (Agrology), Cactus Argentina S.A. (Cactus) and IRSA Inversiones y Representaciones Sociedad Anónima (“IRSA”) have been used in order to determine line by line consolidation.

These Financial Statements and the corresponding notes are presented in thousand of Argentine Pesos.

On December 23, 2010, Cresud made a capital contribution to Cactus in the amount of Ps. 16 million, including additional paid in capital. As a result of such capital contribution, our shareholding interest increased to 80% as of December 31, 2010.

As from December 31, 2010 Cresud consolidates its financial statements with those of Cactus, pursuant to the provisions of Accounting Standard Technical Resolution N° 21. Consequently, the consolidated financial statements of the Company as of June 30, 2010 and March 31, 2010 do not include consolidated information with Cactus.

The consolidated income statement as of March 31, 2011 includes income made by Cactus between January 1 and March 31, 2011.

On September 13, 2010, Alto Palermo S.A. (“APSA”) sold its 80% interest in Tarshop S.A. Consequently, the unaudited consolidated balance sheet as of this closing does not include Tarshop and the unaudited Statements of Income and the unaudited Statement of Cash Flows include such company only for the two-month period when APSA held control over it. Therefore, the compatibility of consolidated financial statements is affected.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 1: (Continued)

Relevant totals from the Company’s consolidated financial statements assuming that the sale of share of Tarshop S.A. had taken place on June 30, 2010 and March 31, 2010 disclosed comparatively are shown in the following chart:

Balance Sheet as of June 30, 2010


Item	Published Financial Statement as of June 30, 2010 (in pesos)		Tarshop S.A. as of June 30, 2010 (in pesos)			Financial Statements in the event of sale as of June 30, 2010 (in pesos)
Currents assets		1,453,381		(268,982	)		1,184,399
Non-current assets		5,384,507		28,881			5,413,388

Total assets		6,837,888		(240,101	)		6,597,787

Current liabilities		1,928,717		242,802			1,685,915
Non-current liabilities		1,315,970		(2,701	)		1,318,671

Total liabilities		3,244,687		240,101			3,004,586

Minority Interest		1,625,008		—			1,625,008

Shareholders’ Equity		1,968,193		—			1,968,193

Balance Sheet as of March 31, 2010


Item	Published Financial Statement as of March 31, 2010 (in pesos)		Tarshop S.A. as of March 31, 2010 (in pesos)			Financial Statements in the event of sale as of March 31, 2010 (in pesos)
Currents assets		1,323,626		(284,315	)		1,039,311
Non-current assets		5,356,687		17,632			5,374,319

Total assets		6,680,313		(266,683	)		6,413,630

Current liabilities		1,751,452		(244,060	)		1,507,392
Non-current liabilities		1,386,374		(22,623	)		1,363,751

Total liabilities		3,137,826		(266,683	)		2,871,143

Minority Interest		1,577,679		—			1,577,679

Shareholders’ Equity		1,964,808		—			1,964,808

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 1: (Continued)

Statement of income as of March 31, 2010


Item	Published Financial Statement as of March 31, 2010 (in pesos)		Tarshop S.A. as of March 31, 2010 (in pesos)			Financial Statements in the event of sale as of March 31, 2010 (in pesos)
Production profit – Agricultural		1,536		—			1,536
Sales profit – Agricultural Business		14,831		—			14,831
Sales profit – Real State Business		605,163		(106,791	)		498,372

Gross profit		621,530		(106,791	)		514,739

Operating gain		416,609		(31,344	)		385,265

Net income for the period		184,657		—			184,657

Statement of cash flows as of March 31, 2010


Item	Published Financial Statement as of March 31, 2010 (in pesos)			Tarshop S.A. as of March 31, 2010 (in pesos)			Financial Statements in the event of sale as of March 31, 2010 (in pesos)
Net cash provided by operating activities		195,429			77,638			273,067
Net cash used in investing activities		(437,540	)		(23,419	)		(460,959	)
Net cash provided by (used in) financing activities		72,448			(53,799	)		18,649

Comparative information

Certain reclassifications have been made on the Financial Statements as of June 30, 2010 and March 31, 2010 and originally issued for the purpose of your presentation with comparative figures as of March 31, 2011.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 2:

CORPORATE CONTROL

The Company’s interest in other companies is shown in the following table:


Company	Consolidated direct and indirect percentage of voting shares owned
IRSA		57.49	(1)
FyO.Com		65.85
Agrology S.A.		100.00
FyO Trading		67.09	(2)
Agrotech S.A.		100.00	(3)
Pluriagro S.A.		100.00	(3)
Northagro S.A.		100.00	(3)
Cactus S.A.		80.00
EAASA		79.98	(4)

(1)	Includes interests of 6.89% of Agrology S.A.

(2)	Includes interests of 63.46% of FyO.Com

(3)	Includes interests of 3% of Agrology S.A

(4)	Includes interests of 99.94% of Cactus S.A.

NOTE 3:

SIGNIFICANT ACCOUNTING POLICIES

The Financial Statements of the Subsidiaries mentioned in Note 2 have been prepared based on accounting principles consistent with those followed by the Company for the preparation of its financial statements, as detailed in Note 2 of the basic financial statements.

High relevant valuation and disclosure criteria applied in preparing the financial statements of consolidated companies and not explained in the valuation criteria note of the holding company are as follows:

Inventories

•

Slaughtering business

Slaughtering and meat processing in cold chambers:

They are stated at their net realizable value, net of any additional selling costs.

•

Real Estate Business

A property is classified as inventories upon determination by the Board of Directors that the property is to be marketed for sale in the normal course of business over the next several years.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 3: (continued)

Properties classified as inventories have been valued at acquisition or construction cost restated as mentioned in Note 1.b. to the basic financial statements or estimated market value, whichever is lower. Costs include land and land improvements, direct construction costs, construction overhead costs, financial costs and real estate taxes.

Inventories on which advance payments that establish price have been received, and the operation’s contract terms and conditions assure that the sale will be effectively accomplished and that the income will be realized, are valued at net realizable value. Profits arising from such valuation are shown in the “Gain from valuation of assets at net realizable value” caption of the Statements of Income.

Properties held for sale are classified as current or non-current based on the estimated date of sale and the time at which the related receivable is expected to be collected by the Company.

The amount recorded in inventories, net of allowances set up, does not exceed their estimated recoverable value at the end of the period/year.

Property units to receive:

IRSA has rights to receive certain property units to be built. The units have been valued according to the accounting measuring standards corresponding to inventories receivables (the price established in the deed or net realizable value, as applicable) and there have been disclosed under “Inventories”.

Current investments

•

Real Estate Business

As of June 30, 2010, current investments included retained interests in securitized receivables pursuant to the securitization programs of Tarshop S.A. and Metroshop S.A. with a realization term not exceeding twelve months, which have been accounted for under the equity method, net of the corresponding allowances for impairment. In addition, it includes public bonds, mutual funds and mortgage bonds carried at market value at the end of the year.

Non-current investments

•

Real Estate Business

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 3: (continued)

Investments on equiry investees and other non-current investments

As of June 30, 2010, included retained interests in securitized receivables of Tarshop S.A., which have been accounted for under the equity method, net of the corresponding allowances for impairment, if applicable. In addition, the interests held in entities over which the Company does not exert control, joint control or significant influence have been measured for accounting purposes at cost plus any declared dividends.

Given the sale of 80% of Tarshop S.A.’s shares described in Note 8 B.2.b, as of the date of issuance of these financial statements, APSA maintains a 20% investment in Tarshop S.A. which has been recognized by application of the equity method on account of the economic group being able to exercise significant influence on its decisions and of the economic group’s intention to maintain it as a long-term investment.

The equity investments in TGLT S.A. and Hersha Hospitality Trust were valued at their acquisition cost.

The equity interest in Rigby 183 LLC, New Lipstick LLC and the acquisition of the additional ownership interest in APSA are currently undergoing the analysis of the fair value of the identifiable assets and liabilities that have been acquired in accordance with the guidelines under Technical Resolution No. 21, paragraph 1.3.1.

Banco Hipotecario S.A. and Banco de Crédito & Securitización S.A.:

The Financial Statements of Banco Hipotecario S.A. and Banco de Credito & Securitización S.A. are prepared in accordance with the Central Bank of the Argentine Republic (“BCRA”) standards. For the purpose of the valuation of the investment in IRSA, adjustments necessary to adequate the financial statements to the professional accounting standards have been considered.

In accordance with the regulations of the BCRA, there are certain restrictions on the distribution of profits by Banco Hipotecario S.A. to IRSA.

Tyrus S.A. and Torodur S. A.:

Uruguay-based Tyrus S.A. and Torodur S.A. have been classified as not integrated into the IRSA’s operations in relation to its subsidiaries whose operations are carried out fully abroad.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 3: (continued)

Tyrus’s and Torodur’s assets and liabilities were converted into Pesos at the exchange rate in force at the closing of the fiscal period/year. The Statement of Income accounts have been converted into Pesos at the exchange rates in force at the time of each transaction. Foreign exchange gains/losses arising from the conversion have been charged to the Shareholders’ equity caption in the line “Translation Differences”.

Undeveloped parcels of lands:

IRSA acquires undeveloped land in order to provide an adequate and well-located supply for its residential and office building operations. IRSA’s strategy for land acquisition and development is dictated by specific market conditions where IRSA conducts its operations.

Land held for development and sale and improvements are stated at cost restated as mentioned in Note 1.b. to the basic financial statements or market value, whichever is lower.

Land and land improvements are transferred to inventories or fixed assets when construction and/or trade commence.

The obtained values, do not exceed their respective estimated recoverable values at the end of the period/year.

Business combinations

•

Real Estate Business

Significant entities on net asset acquired by the Company were recorded in line “purchased method” set forth in Technical Resolution No. 18. and Technical Resolution No. 21. All assets and liabilities acquired to third independent parties were adjusted to show their fair value. IRSA identified the assets and liabilities acquired including intangible assets such as: lease agreements acquired for prices and terms that are either higher or lower than in the market; costs of executing and delivering the lease agreements in force (costs that IRSA avoids incurring as a result of acquiring effective lease agreements); the value of acquired brands, the value of any deposits associated to the investment and the intangible value inherent in customer relations.

The process of identification and the determination of the purchased price paid is a matter that requires complex judgments and significant estimates.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 3: (continued)

IRSA uses the information contained in valuations estimated by independent appraisers as primary base for assigning the price paid for the land, the building and the shopping centers. The amounts assigned to all the other assets and liabilities are based on independent valuations or on the IRSA´s own analysis on comparable assets and liabilities. The current value of tangible assets acquired considers the property value as if it was empty.

If the price paid is larger than the value of tangible and intangible assets and liabilities as identified, the excess is considered to be goodwill.

Property and equipment, net

•

Real Estate Business

Fixed assets comprise primarily of rental properties and other properties and equipment held for use by IRSA.

Fixed assets value, net of allowances set up, does not exceed estimated recoverable value at the end of the period/year.

Rental properties

Rental properties are carried at acquisition and/or construction cost, restated as mentioned in Note 1.b. to the basic financial statements, less accumulated depreciation and allowance for impairment at the end of the period/year. IRSA capitalizes the financial accrued costs associated with long-term construction projects.

Accumulated depreciation had been computed under the straight-line method over the estimated useful lives of each asset, applying annual rates in order to extinguish their values at the end of its useful life.

IRSA has allowances for impairment of certain rental properties.

Significant renewals and improvements, which improve or extend the useful life of the asset are capitalized and depreciated over its estimated remaining useful life. At the time depreciable assets are retired or otherwise disposed of, the cost and the accumulated depreciation of the assets are eliminated from the accounts and the resulting gain or loss is disclosed in the Statement of Income.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 3: (continued)

Other properties and equipment

Other properties and equipment properties are carried at cost, restated as mentioned in Note 1.b. to the basic financial statements, less accumulated depreciation at the end of the period/year. Accumulated depreciation is computed under the straight-line method over the estimated useful lives of the assets.


Assets	Estimated useful life (years) on contract basis
Leasehold improvements		According to the duration of the lease
Furniture and fixtures		10
Vehicles		5
Machinery and equipment		10
Computer equipment		3

The cost of maintenance and repairs is charged to expense as incurred.

The cost of significant renewals and improvements are added to the carrying amount of the respective assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts.

Intangible assets

•

Real Estate Business

Intangible assets are carried at restated cost as mentioned in Note 1.b. to the basic financial statements, less accumulated amortization and corresponding allowances for impairment in value, if it applicable. Included in the Intangible assets caption are the following:

Concession

Intangible assets include Arcos del Gourmet S.A.´s concession right, which will be amortized over the life of the concession agreement once it opens to the public (see Note 8.2.c.).

Trademarks

Trademarks include the expenses and fees related to their registration.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 3: (Continued)

Pre-operating expenses and organizational

Those expenses were amortized by the straight-line method in 3 years, beginning as from the date of opening.

The value of the intangible assets does not exceed their estimated recoverable value at the end of the period/year.

Non-Compete Agreement

These expenses were amortized by the straight-line method in 28 months period starting upon December 1^st, 2009.

In the framework of the agreement executed with Banco Hipotecario S.A. for the sale of Tarshop S.A.’s shares, APSA has signed a non-compete agreement in favor of BHSA and has thus has written off this intangible asset.

Goodwill, net

•

Real Estate Business

Amortizations were calculated through the straight line method on the basis of an estimated useful life considering the weighted average of the remaining useful life of the assets acquired.

The residual value of goodwill arising from the acquisition of net assets and shares in companies has been shown in the “Goodwill, net” caption. Amortizations were classified in the “Amortization of goodwill” caption of the statement of income. Goodwills related to the acquisition of interests in subsidiaries is included in non-current investments.

Values thus obtained do not exceed the respective estimated recoverable values at the end of the period/year.

Customer advances

•

Real Estate Business

Customer advances represent payments received in connection with the sale and rent of properties and has been valued according to the amount of money received.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 3: (continued)

Allowances

•

Real Estate Business

Allowance for doubtful accounts: IRSA allows for losses relating to trade receivables, leases and other accounts receivable. The allowance for losses is recognized when, based on current information and events, it is probable that IRSA will be unable to collect all amounts due according to the terms of the agreements. The allowance is determined on a one-by-one basis considering the present value of expected future cash flows. When it comes to its mortgage-secured receivables, the Company applies the collateral’s realization value upon analyzing the recoverability of receivables with hints of uncollectibility.

While Management uses the information available to make assessments, future adjustments to the allowance may be necessary if future economic conditions differ substantially from the assumptions used in making the assessments. Management has considered all events and/or transactions that are subject to reasonable and normal methods of estimations.

For impairment of assets: IRSA regularly asses its non-current assets for recoverability at the end of every period.

IRSA has estimated the recoverable value of rental properties based on their economic use value, which is determined based on estimated future cash flows discounted. For the rest of the assets (inventories and undeveloped parcels of land) IRSA makes a comparison with market values based on values of comparable properties. If the recoverable value of assets, which had been impaired in prior years, increases, IRSA records the corresponding reversals of impairment loss as required by accounting standards.

For lawsuits: IRSA has certain contingent liabilities with respect to existing or potential claims, lawsuits and other proceedings, including those involving labor issues. IRSA accrues liabilities when it is probable that future costs will be incurred and such costs can be reasonably estimated. Such accruals are based on developments to date, IRSA’s estimates of the outcomes of these matters and IRSA’s lawyers’ experience in contesting, litigating and settling other matters.

As the scope of the liabilities becomes better defined, there may be changes in the estimates of future costs, which could have an effect on IRSA’s future results of operations and financial condition or liquidity.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 3: (Continued)

At the date of issuance of these financial statements, IRSA’s Management understands that there are no elements to foresee other potential contingencies having a negative impact on these financial statements.

Liabilities in kind related to barter transactions

•

Real Estate Business

Liabilities in kind corresponding to obligations to deliver units to be built are valued considering the cost of the assets received or the cost of construction of the units to deliver plus necessary additional costs to transfer the assets to the creditor, the major. Liabilities in kind have been shown in the “Trade accounts payable”.

Revenue recognition

•

Real Estate Business

Revenue recognition of IRSA

Sales of properties

IRSA records revenue from the sale of properties when all of the following criteria are met:

•

The sale has been consummated.

•

There is sufficient evidence to demonstrate the buyer’s ability and commitment to pay for the property.

•

The Company’s receivable is not subject to future subordination.

•

The Company has transferred the property to the buyer.

The Company uses the percentage-of-completion method of accounting with respect to sales of development properties under construction. Under this method, revenue is recognized based on the ratio of costs incurred to total estimated costs according to budgeted costs. The Company does not recognize results until construction activities have begun. The percentage-of-completion method of accounting requires the Company’s Management to prepare budgeted costs in connection with sales of properties/units. All changes to estimated costs of completion are incorporated into revised estimates during the contract period.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 3: (Continued)

Revenues from leases

Revenues from leases are recognized considering its term and conditions and over the life of the related lease contracts.

Hotel operations

IRSA recognizes revenues from its rooms, catering and restaurant facilities as accrued on the close of each business day.

Net operating results from each business unit are disclosed in Note 5.

Revenue recognition of Alto Palermo S.A. (APSA)

Revenues for admission rights and rental of stores and stands

Leases with tenants are accounted for as operating leases. Tenants are generally charged a rent, which consists of the higher of (i) a monthly base rent (the “Base Rent”) and (ii) a specified percentage of the tenant’s monthly revenues (the “Percentage Rent”) (which generally ranges between 4% and 10% of tenant’s gross revenues).

Furthermore, pursuant to the rent escalation clause in most leases, the tenant’s Base Rent generally increases between 7% and 12% each year during the term of the lease. Minimum rental income is recognized following on the accrued criteria.

Certain lease agreements contain provisions, which provide for rents based on a percentage of revenues or based on a percentage of revenues volume above a specified threshold. APSA determines the compliance with specific targets and calculates the additional rent on a monthly basis as provided in the contracts. Thus, these contingent rents are not recognized until the required thresholds are exceeded.

Generally, APSA’s lease agreements vary from 36 to 120 months. Law No. 24,808 provides that tenants may rescind commercial lease agreements after the initial six months, upon not less than 60 days’ written notice, subject to penalties which vary from one to one and a half months rent if the tenant rescinds after the first year of its lease, and one month of rent if the tenant rescinds after the first year of its lease.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 3: (Continued)

Additionally, APSA charges its tenants monthly administration fees related to the administration and maintenance of the common area and the administration of contributions made by tenants to finance promotional efforts for the overall shopping centers operations. The administration fees are prorated among the tenants according to their leases which vary from shopping center to shopping center. Administration fees are recognized monthly when earned.

In addition to rent, tenants are generally charged “admission rights”, a non refundable admission fee, that tenants may be required to pay upon entering into a lease or upon lease renewal. Admission right is normally paid in one lump sum or in a small number of monthly installments. Admission rights are recognized in earnings using the straight-line method over the life of the respective lease agreements.

Credit card operations “Consumer Financing”

Revenues derived from credit card transactions consist of commissions and financing income, charges to clients for life and disability insurance and for statements of account, among other. Commissions are recognized at the time the merchants’ transactions are processed, while the rest financial income is recognized when accrued. Income generated from granting consumer loans mainly includes financial interests, which are recognized by the accrued method during the period whether collection has or has not been made.

Lease agent operations

Fibesa S.A., company in which APSA has an interest of 99.999%, acts as the leasing agent for APSA bringing together the Company and potential lessees for the retail space available in certain of APSA’s shopping centers. Fibesa S.A.’s revenues are derived primarily from collected commissions calculated as a percentage of the final rental income value, admission´s rights and commissions for rental of advertising space. Revenues are recognized at the time that the transaction is successfully concluded.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

Details of consolidated balance sheet and consolidated statement of income accounts

As of March 31, 2011 and 2010, and as of June 30, 2010 the principal items of the financial statements are as follows:

a.	Cash and banks

The breakdown for this item is as follow:


	March 31, 2011		June 30, 2010		March 31, 2010
Cash		2,430		5,005		5,534
Foreign currency		81		77		108
Banks in local currency		192,295		64,435		61,038
Banks in foreign currency		16,199		5,458		5,308
Checks to be deposited		8,454		5,944		11,314

		219,459		80,919		83,302

b.	Investments

The breakdown for this item is as follow:


	March 31, 2011		June 30, 2010			March 31, 2010
Current
Investments
Mutual Funds (2)		283,633		153,699			94,115
Government Bonds, Bonds and Notes (1)
- Participation trust certificates		—		2,846			4,820
-Certificates of participation - Tarshop S.A.		—		124,671			143,414
-Allowance for impairment of investments		—		(7,423	)		(8,984	)
-Global 2010 bonds		—		132			202
-Mortgage Bonds		479		918			1,098
Public shares (1)		1,944		4,075			2,552
Others investments (1)		17		50			55

		286,073		278,968			237,272

(1)	Not considered as cash equivalents in Cash Flow Statements.

(2)	As of March 31, 2011 and 2010 and June 30, 2010 includes Ps. 52,738, Ps. 56,616 and Ps. 58,965 respectively, related to mutual funds not considered as cash equivalents in Cash Flow Statement.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)

Non-current

Investments on equity investees:


	March 31, 2011			June 30, 2010			March 31, 2010
Agro-Uranga S.A.
Shares		11,585			10,191			9,534
Higher property value		11,179			11,179			11,179

		22,764			21,370			20,713

Cactus Argentina S.A. (“Cactus”)
Shares		—			2,071			15,701
Goodwill		—			4,978			4,015
Allowance for impairment of Cactus goodwill		—			(4,978	)		—

		—			2,071			19,716

Exportaciones Agroindustriales Argentinas S.A.
Shares		—			5			76

		—			5			76

BrasilAgro – Companhia Brasileira de Propriedades Agrícolas (“BrasilAgro”)
Shares		558,217			290,832			300,250
Higher values (1)		49,645			6,887			6,887
Goodwill		6,965			6,965			6,965
Negative Goodwill		(9,790	)		(14,765	)		(16,140	)
Warrants		27,199			—			—

		632,236			289,919			297,962

Banco Hipotecario
Shares		891,606			791,632			778,888
Higher values (2)		6,566			10,570			9,368
Goodwill		9,777			13,278			16,379

		907,949			815,480			804,635

Banco Crédito & Securitización S.A.
Shares		6,300			5,996			5,927

		6,300			5,996			5,927

Manibil S.A.
Shares		27,423			27,228			26,591
Goodwill		10			10			10

		27,433			27,238			26,601

Hersha Hospitality Trust
Shares		283,586			204,553			224,339

		283,586			204,553			224,339

(1)	Corresponds to Ps. 53,354 of higher value property and equipment and Ps. (3,709) of higher tax effect value.

(2)	Corresponds to Ps. 241 of higher value intangible assets, Ps. 15,687 of lower value trade account payables and (Ps. 13,757) of higher value trade account receivable which belongs to the business combinations of Cresud and Agrology S.A., and Ps. 4,395 of IRSA.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)


	March 31, 2011		June 30, 2010		March 31, 2010
Tarshop S.A.
Shares		51,149		—		—
Higher values		332		—		—

		51,481		—		—

RIGBY 183 LLC
Shares		94,553		—		—

		94,553		—		—

TGLT S.A.
Shares		48,464		—		—

		48,464		—		—

New Lipstick
Share		116,758		—		—

		116,758		—		—

Advances for shares purchases		1,862		23,735		23,028

		1,862		23,735		23,028

Undeveloped parcels of land :
- Santa Maria del Plata		222,540		204,420		204,382
- Puerto Retiro (1)		66,223		66,551		66,375
- Plot of Land Berutti (2)		—		54,237		54,204
- Plot of Land Caballito		40,670		40,630		40,626
- Patio Olmos (3)		33,218		33,218		33,218
- Pereiraola		—		—		24,157
- Torres de Rosario plot of land		2,809		14,230		19,154
- Coto Air Space (5)		14,672		14,672		14,672
- Zetol Plot of Land (4)		31,089		14,348		13,443
- Canteras Natal Crespo		6,479		6,465		6,467
- Pilar		4,066		4,066		4,066
- Torres Jardin IV		—		3,038		3,038
- Vista al Muelle Plot of Land (4)		21,654		8,292		7,570
- Advances Catalinas Norte		—		—		22,259
- Other undeveloped parcels on land		18,785		26,601		23,865

		462,205		490,768		537,496

		2,655,591		1,881,135		1,960,493

(1)	Note 7 B.1.a. to the consolidated financial statements.

(2)	Note 9.B.2.c. to the consolidated financial statements.

(3)	Note 9.B.2.a. to the consolidated financial statements.

(4)	Note 8.B.1.e. to the consolidated financial statements.

(5)	Note 9.B.2.d. to the consolidated financial statements.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)

Other Investments

The breakdown for this item is as follow:


	March 31, 2011		June 30, 2010			March 31, 2010
Certificates of participation – Tarshop S.A. Trust		—		18,458			3,929
Allowance for impairment of investments		—		(1,165	)		(254	)
MAT		90		90			90
Coprolán		21		21			21
Other investments		217		1,531			1,515

		328		18,935			5,301

c.	Trade accounts receivable

The breakdown for this item is as follow:


	March 31, 2011			June 30, 2010			March 31, 2010
Current
Debtors from consumer financing		74,966			245,538			207,490
Leases, services and real estate receivables		78,755			76,565			83,103
Checks to be deposited		78,174			67,920			51,444
Debtors from expenses and collective promotion fund		30,589			19,917			34,422
Leases, services and real estate receivables under legal proceedings		47,238			42,117			35,607
Trade accounts receivable – agricultural business		100,816			73,399			44,736
Trade accounts receivable – real estate agricultural business		—			3,162			—
Debtors from hotel activities		15,179			11,186			17,023
Documents receivable		5,783			4,207			6,534
Debtors from consumer financing – collection agents		5,032			4,532			6,099
Credit cards receivable		279			877			258
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties (note 4.s.)		7,359			6,500			7,481
Less:
Allowance for doubtful accounts		(121,063	)		(114,855	)		(117,004	)

		323,107			441,065			377,193

Non Current
Debtors from consumer financing		—			25,824			24,026
Leases, services and real estate receivables		13,129			15,553			2,143
Documents receivable		153			399			660
Trade accounts receivable – real estate agricultural business		—			1,597			—
Less:
Allowance for doubtful accounts		—			(1,250	)		(1,496	)

		13,282			42,123			25,333

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)

d.	Other receivables

The breakdown for this item is as follow:


	March 31, 2011		June 30, 2010		March 31, 2010
Current
Call Option Metropolitan 885 Third Ave. LLC		—		48,461		46,826
Receivables from the sale of shares (1)		—		35,772		35,290
VAT receivables, net		76,982		50,994		74,541
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties (Note 4.s.)		44,369		10,876		11,715
Prepaid expenses		49,164		41,003		32,048
Income tax advances and tax credit (net of provision for income tax)		8,322		9,992		6,921
Guarantee deposits re. securitization programs		—		5,427		6,522
Loans granted		942		859		860
Gross sales tax credit and others		8,927		9,013		6,821
Receivable for services of consumer financing		—		4,880		4,105
Guarantee deposits		793		2,611		1,590
Pre-paid insurance		27		79		316
Minimum presumed income tax		2,752		1,056		3,188
Premiums collected		604		—		—
Guarantee deposits for investment purchase		638		—		—
Financial operations to liquidate		597		512		4,945
Other tax credits		214		745		789
Prepaid leases		23		4,823		124
VAT withholdings		952		—		—
Transfer VAT debtors		719		—		—
Gross sales withholdings		374		—		—
Withholding income tax		751		—		—
Financial derivatives instruments		524		—		—
Expenses to be recovered		190		235		265
Others		20,141		24,570		19,690

		218,005		251,908		256.556

(1)	Note 8.B.1.j

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)

		226,265			226,265			226,265
	March 31, 2011			June 30, 2010			March 31, 2010
Non- current
Deferred tax		42,549			66,245			66,261
Minimum presumed income tax		113,292			97,025			86,597
VAT receivables, net		56,989			65,088			57,252
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties (note 4.s.)		9,222			15,010			20,724
Prepaid expenses		1,321			2,609			3,166
Mortgages receivables under legal proceeding		2,208			2,208			2,208
Allowance for doubtful accounts		(2,208	)		(2,208	)		(2,208	)
Gross sales tax credit and others		1,014			935			944
Others		1,878			1,403			1,608

		226,265			248,315			236,552

e.	Inventories

The breakdown for this item is as follow:

		226,265		226,265		226,265
	March 31, 2011		June 30, 2010		March 31, 2010
Current
Agricultural business
Crops		48.290		51.660		18.750
Materials and others		39.745		37.619		33.710
Beef cattle		26.271		16.053		30.927
Unharvested crops		127.069		26.807		86.384
Seeds and fodder		2.692		3.664		2.719
Slaughtered stock		10.877		—		—
Real estate business
Credit from barter transaction of Terreno Caballito (Koad)		8.779		27.115		12.040
Abril		1.114		1.839		1.148
Inventories (hotel business)		3.516		3.141		3.394
El Encuentro		4.756		5.777		890
Horizons		244.928		211.397		176.888
Credit from barter transaction of Terreno Rosario		28.375		3.379		—
Other inventories		3.482		2.841		1.182
San Martin de Tours		424		433		132
Torres Jardin		32		68		23
Torres Rosario		1.126		8.728		—
Terrenos Mendoza		—		—		1.116

		551.476		400.521		369.303

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)

		1,600,714		1,600,714		1,600,714
	March 31, 2011		June 30, 2010		March 31, 2010
Non-Current
Agricultural Business
Beef cattle		196,274		141,602		125,847
Real estate business
Credit from barter transaction of Terreno Caballito (Cyrsa)		—		25,155		25,155
Credit from barter of transaction of Terreno Caballito (Koad)		2,429		6,991		20,700
Credit from barter transaction of Terreno Rosario		—		7,742		11,121
El Encuentro		5,273		6,222		11,172
Terrenos de Caballito		—		6,794		6,754
Terrenos Caballito		30,679		—		—
Torres Jardín		—		—		45
Beruti		23,309		—		—
Lands to receive Pereiraola		8,200		8,200		—
Abril		256		—		690
Torres Rosario		9,897		—		—
Other inventories		54		1,512		1,754

		276,371		204,218		203,238

f.	Property and equipment, net

The breakdown for this item is as follows:

		1,600,714		1,600,714		1,600,714
	March 31, 2011		June 30, 2010		March 31, 2010
Agricultural business		513,502		464,164		457,817
Real estate business
Shopping Center		1,600,714		1,505,363		1,593,172
Office buildings		893,449		979,778		926,696
Hotels		205,519		204,721		207,792
Other fixed assets		134,731		136,195		34,379

		3,347,915		3,290,221		3,219,856

g.	Intangible assets, net

The breakdown for this item is as follow:

		1,600,714		1,600,714		1,600,714
	March 31, 2011		June 30, 2010		March 31, 2010
Concession rights		20,760		41,483		21,512
Saving expenses of contracts in acquired leases		9,487		10,625		11,846
Pre-operating expenses		22,868		24,040		25,265
Tarshop’s customers		—		2,610		2,683
Concession Arcos del Gourmet S.A.		20,873		—		—
Non-compete agreement		—		9,131		10,435
Trademarks		317		646		675
Others		50		50		55

		74,355		88,585		72,471

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)

h.	Goodwill, net

The breakdown for this item is as follow:


	March 31, 2011			June 30, 2010			March 31, 2010
Goodwill
IRSA		13,040			13,040			40.597
APSA		159,582			10,866			26.505
Torre BankBoston		4,910			5,033			5.742
Della Paolera 265 and Museo Renault		2,653			2,755			3.154
Fibesa S.A.		—			47			856
Conil S.A.		506			506			506
Arcos del Gourment S.A.		—			—			20.873
Baicom Network S.A.		—			—			174
Negative goodwill		—
IRSA		(337,104	)		(360,477	)		(365.472	)
APSA		(25,284	)		(26,443	)		(44.128	)
Palermo Invest S.A.		(23,790	)		(24,503	)		(40.733	)
Empalme S.A.I.C.F.A, y G.		(4,468	)		(4,757	)		(8.608	)
Mendoza Plaza Shopping S.A.		(4,791	)		(5,002	)		(5.743	)
Unicity S.A.		(3,601	)		—			—
Soleil Factory		(7,727	)		—			—
Emprendimiento Recoleta S.A.		(42	)		(90	)		(280	)

		(226.116	)		(389,025	)		(366,557	)

i.	Trade accounts payable

The breakdown for this item is as follow:


	March 31, 2011		June 30, 2010		March 31, 2010
Current
Suppliers		166,941		224,236		210,078
Provisions for inputs and other expenses		75,264		99,593		88,712
Debt related to purchase of farms		505		25,181		22,441
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties (Note 4.s.)		3,620		2,815		3,889
Liabilities in kind “Horizons”		47,559		46,451		46,451
Provisions for harvest expenses		3,589		3,284		1,460
Checks deferred		10,474		—		—
Others		2,289		2,183		682

		310,241		403,743		373,713

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)

	1,047,682	1,047,682	1,047,682
Non-Current
Suppliers	58	11,210	11,425
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties (Note 4.s.)	—	12,158	—

	58	23,368	11,425

j.	Short-term and long-term debts

The breakdown for this item is as follow:

		1,047,682		1,047,682		1,047,682
	March 31, 2011		June 30, 2010		March 31, 2010
Current
Bank loans		277,224		253,990		281,542
Bank Overdrafts		581,542		609,075		467,651
Short-term debt		—		23,019		22,720
Foreign financial entities		8,160		4,921		3,528
Debt for purchase of shares		—		—		19,386
Seller- financed debt		15,643		15,920		23,421
Non-convertible Notes - IRSA 2017		7,740		15,393		5,545
Non-convertible Notes Class I		—		—		15,547
Non-convertible Notes Class II		—		35,324		34,740
Non-convertible Notes Class III		12,319		—		—
Non-convertible Notes Class IV		18,274		—		—
Non-convertible Notes Class V		915		—		—
Non-convertible Notes Class VI		566		—		—
Non-convertible Notes Class VII		19		—		—
Non-convertible Notes – IRSA 2020		12,887		—		—
Non-convertible Notes – APSA US$ 120 M.		13,173		2,702		8.037
Convertible Notes – APSA 2014 US$ 50 M. (Note 4.s)		1		2,719		1,185
Non-convertible Notes – APSA 2011 Ps. 55 M.		44,652		44,165		240
Non-convertible Notes – APSA 2011 US$ 6 M.		26,802		25,813		11
Non-convertible Notes – APSA 2012 Ps. 154 M.		27,765		26,695		28,616

		1,047,682		1.059.736		912.169

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)


	March 31, 2011		June 30, 2010		March 31, 2010
Non-Current
Foreign financial entities		8,917		—		—
Non-convertible Notes-Class III		23,756		—		—
Non-convertible Notes-Class IV		54,150		—		—
Non-convertible Notes Class V		106,501		—		—
Non-convertible Notes Class VI		130,701		—		—
Non-convertible Notes Class VII		8,391		—		—
Non-convertible Notes – 2017 IRSA		590,509		440,670		433,745
Non-convertible Notes – APSA US$ 120 M.		420,395		261,663		257,416
Bank loans		73,144		52,767		78,087
Non-convertible Notes – IRSA 2020		589,283		—		—
Convertible Notes – 2014 APSA US$ 50 M. (Note 4.s.)		70		60,782		59,954
Non-convertible Notes – 2011 APSA Ps. 55 M.		—		—		43,771
Non-convertible Notes – 2011 APSA US$ 6 M.		—		—		25,393
Non-convertible Notes – 2012 APSA 154 M.		13,127		24,848		37,878
Seller-financed debt		69,921		12,436		12,119

		2,088,865		853,166		948,363

k.	Salaries and social security payable

The breakdown for this item is as follow:


	March 31, 2011		June 30, 2010		March 31, 2010
Current
Provisions for vacation and bonuses		35,969		47,967		34,910
Social security payable		8,822		11,994		8,208
Salaries payable		3,075		1,019		205
Facilities for payment plan social security		225		—		—
Others		303		504		258

		48,394		61,484		43,581

Not current
Facilities for payment plan social security		689		—		—

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)

l.	Taxes payable

The breakdown for this item is as follow:


	March 31, 2011		June 30, 2010		March 31, 2010
Current
VAT payable, net		15,918		17,308		43,502
Tax payment facilities plan for VAT		—		13,235		—
Income tax payable moratorium		—		—		1,509
Minimum presumed income tax		16,545		14,127		10,384
Income tax provision, net		36,541		38,213		31,900
Tax on shareholders` personal assets		11,738		4,360		11,683
Provisions – Gross sales tax payable		3,553		4,729		4,989
Tax payment facilities plan for income tax		1,789		1,559		—
Tax withholdings		8,869		12,482		4,490
Gross revenue tax moratorium		3,785		485		477
Others		3,884		2,060		4,999

		102,622		108,558		113,933


	March 31, 2011		June 30, 2010		March 31, 2010
Non-current
Deferred income tax		250,185		248,722		227,920
Income tax payable moratorium		19,620		19,145		21,830
Tax on shareholders` personal assets moratorium		3,391		2,392		3,724
Gross revenue tax moratorium		1,316		1,320		1,952
Tax moratorium – ABL		—		2,372		—
Others		217		12		28

		274,729		273,963		255,454

m.	Customer advances

The breakdown for this item is as follow:


	March 31, 2011		June 30, 2010		March 31, 2010
Current
Admission rights		57,666		51,194		50,787
Advanced payments from customers		163,814		134,889		122,660
Leases and service advances (1)		33,176		30,381		23,778

		254,656		216,464		197,225

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)


	March 31, 2011		June 30, 2010		March 31, 2010
Non-current
Admission rights		63,808		59,469		61,382
Leases and service advances (1)		26,843		30,924		32,125

		90,651		90,393		93,507

(1)	See note 12.A.2.a to the consolidated financial statements.

(a)

Includes balances owed to NAI INTERNATIONAL II. INC., due to the financing agreement enclosed by Empalme S.A.I.C.F.A. y G.

(b)

As of March 31, 2011 and June 30, 2010 includes advances of Ps. 7,642 and Ps. 9,501 respectively, received from Wall - Mart Argentina S.R.L. in the context of a rent contract entered into with Panamerican Mall S.A. (APSA´s Subsidiary), for a 30 years´ term.

n.	Other liabilities

The breakdown for this item is as follow:


	March 31, 2011		June 30, 2010		March 31, 2010
Current
Lower value of acquired contracts		—		1,929		4,724
Payables to Nationals Park Administration		1,100		2,589		12,632
Debt to purchase of investments		127,214		—		4,793
Other debts		16,004		—		—
Guarantee deposits		6,457		5,243		5,051
Additional capital contribution payable		—		—		2.295
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties (Note 4.s.)		21,938		26,117		28,373
Premiums collected		2,659		595		23
Debt former minority shareholder Tashop S.A.		—		3,529		3,481
Provision for contract management (Nota 4.s.)		3,866		7,267		11,421
Forward contracts		—		178		—
Profits to be made and improvements made by others to earn		375		516		524
Dividends payable		5,768		—		1,971
Advance sale of shares of S.A. Tarshop (Note 4.s.)		—		21,070		20,840
Others		6,060		6,809		10,491

		191,441		75,842		106,619

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)


	March 31, 2011		June 30, 2010		March 31, 2010
Non-current
Loans with shareholders of related parties		246		19,989		48,047
Contributed leasehold improvements to be accrued and unrealized gains		9,236		9,687		9,810
Guarantee deposits		3,088		4,073		3,930
Debt to the former minority shareholders of Tarshop S.A.		—		3,322		4,064
Hersha´s Option payable		—		16,693		—
Additional capital contribution payable		—		5,897		3,462
Advanced on assignment of rights		3,299		3,166		—
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties (Note 4.s.)		20		20		20
Others		474		2,525		785

		16,363		65,372		70,118

o.	Provisions for lawsuits and contingencies

The breakdown for this item is as follow:


	March 31, 2011		June 30, 2010		March 31, 2010
Current
Lawsuits and contingencies		2,845		2,890		4,212

		2,845		2,890		4,212

Non-current
Lawsuits and contingencies		12,398		9,708		7,507

		12,398		9,708		7,507

p.	Unrealized gain

The breakdown for this item is as follow:


	March 31, 2011			March 31, 2010
Unrealized gain on inventories – Beef cattle		71,516			64,531
Unrealized loss on inventories – Crops, raw materials and MAT		(12,806	)		(321	)

Total unrealized gain		58,710			64,210

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)

q.	Financial results, net

The breakdown for this item is as follow:


	March 31, 2011			March 31, 2010
Generated by assets
Income interest
Income interest		17,319			14,052
Interest for asset discount		410			—

Sub-total		17,729			14,052

Other Unrealized gain
Conversion differences		2,295			1,211
Gain on hedging operations		2,005			5,285
Tax on bank account operations		(5,988	)		(4,617	)
(Loss) gain on financial operations		(964	)		51,311
Others		8,299			(270	)

Sub-total		5,647			52,920

Generated by Liabilities
Other Unrealized loss
Others		(6,106	)		(3,243	)

Sub-total		(6,106	)		(3,243	)

r.	Other income and expenses, net

The breakdown for this item is as follow:


	March 31, 2011			March 31, 2010
Other incomes:
Recovery of allowances		—			145
Gains on the sales of other fixed assets		—			35
Lawsuits and contingencies		90			—
Sale of consumer relationships		6,902			—
Management fee		541			652
Others		1,047			958

Sub-total Other Income		8,580			1,790

Other expenses:
Tax on shareholders´ personal assets		(10,234	)		(10,036	)
Lawsuits and contingencies		(1,870	)		(138	)
Unrecoverable VAT receivable		(1,032	)		(4,633	)
Donations		(5,622	)		(4,252	)
Others		(4,560	)		(542	)

Sub-total Other expenses		(23,318	)		(19,601	)

Total Other income and expenses, net		(14,738	)		(17,811	)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)

s.	Subsidiaries related companies Law No. 19,550 Section 33 and others related parties:

Balances as of March 31, 2011, compared to the balances as of June 30, 2010 and March 31, 2010, held with related companies, persons and shareholders are as follows:

As of March 31, 2011


	Current Trade accounts receivable		Current Other receivables		Non-current Other receivable		Current Trade accounts payable			Current Other liabilities			Non-current Other liabilities
Agro-Uranga S.A. (2)		195		327		—		(35	)		—			—
Banco Hipotecario S.A. (2)		225		—		—		(51	)		—			—
Baicom Networks S.A. (2)		56		7		405		—			—			—
BrasilAgro (2)		16		—		—		—			—			—
Canteras Natal Crespo S.A. (4)		387		39		—		(25	)		—			—
Consorcio Dock del Plata S.A. (3)		269		—		—		—			—			—
Consorcio Libertador S.A. (3)		145		106		—		(70	)		(4	)		—
Consorcio Torre Boston .S.A. (3)		967		402		—		(1,158	)		—			—
Consultores Asset Management S.A. (3)		1,148		28		—		(10	)		(3,866	)		—
CAM Communications LP Delawar (3)		—		4,845		—		—			—			—
Cresca S.A. (4)		341		772		8,817		—			—			—
Cyrsa S.A. (4)		1,492		272		—		(1,082	)		(23	)		—
Directors (3)		18		230		—		—			(15,891	)		(20	)
Elsztain Managing Partners Lim (3)		—		109		—		—			(51	)		—
Elsztain Reality Partner Master Fund I (3)		—		—		—		—			(1,373	)		—
Elsztain Reality Partner Master Fund II (3)		—		—		—		—			(614	)		—
Elsztain Reality Partner Master Fund III (3)		—		—		—		—			(165	)		—
Estudio Zang, Bergel & Viñes (3)		—		23		—		(899	)		(442	)		—
Fundación IRSA (3)		30		1		—		(138	)		(1,073	)		—
Inversiones Financieras del Sur S.A. (1)		—		17,056		—		—			—			—
IRSA Developments LP (3)		—		6		—		—			(4	)		—
IRSA Real Estate Strategies LP (3)		—		22		—		—			(8	)		—
Hersha Hospitality Trust (2)		—		2,252		—		—			—			—
Museo de los niños S.A. (3)		1,601		—		—		(6	)		—			—
New Lipstick LLC (2)		—		363		—		—			—			—
Lipstick Management LLC (2)		—		214		—		—			—			—
Credits to employees (3)		8		3,325		—		(141	)		(2,290	)		—
Puerto Retiro S.A. (2)		58		64		—		(5	)		—			—
Tarshop S.A. (2)		403		13,906		—		—			—			—

Total		7,359		44,369		9,222		(3,620	)		(25,804	)		(20	)

(1)	Shareholder

(2)	Related companies

(3)	Related parties

(4)	Direct or Indirect common control

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)

As of June 30, 2010


	Current Trade accounts receivable		Current Other receivables		Non-current Other receivables		Inventories Receivable Caballito plot of land barter		Current Trade accounts payable			Non- current Trade accounts payable			Short-term debt			Long-term debt			Current Other liabilities			Non-current Other liabilities
Agro-Uranga S.A. (2)		7		39		—		—		(36	)		—			—			—			—			—
Banco Hipotecario S.A. (2)		354		—		—		—		(168	)		—			—			—			(21,070	)		—
Baicom Networks S.A. (2)		—		1		323		—		—			—			—			—			—			—
BrasilAgro (2)		—		—		—		—		(8	)		—			—			—			—			—
Cactus (2)		304		—		—		—		(632	)		—			—			—			—			—
Canteras Natal Crespo S.A. (4)		318		50		—		—		—			—			—			—			—			—
Consorcio Dock del Plata S.A. (3)		883		2		—		—		(10	)		—			—			—			(3	)		—
Consorcio Libertador S.A. (3)		—		20		—		—		(66	)		—			—			—			(4	)		—
Consorcio Torre Boston .S.A. (3)		595		205		—		—		—			—			—			—			—			—
Consultores Asset Management S.A. (3)		918		29		—		—		(7	)		—			—			—			(7,267	)		—
Cresca S.A. (4)		182		5,219		—		—		—			—			—			—			—			—
Cyrsa S.A. (4)		1,669		8		—		25,155		(1,006	)		—			—			—			—			—
Directors (3)		2		169		—		—		(36	)		—			—			—			(24,994	)		(20	)
Estudio Zang, Bergel & Viñes (3)		—		22		—		—		(708	)		—			—			—			—			—
Fundación IRSA (3)		41		5		—		—		—			—			—			—			(1,073	)		—
Inversiones Financieras del Sur S.A. (1)		—		95		—		—		—			—			—			—			—			—
Hersha Hospitality Trust (2)		—		2,087		—		—		—			—			—			—			—			—
Metroshop S.A. (4)		—		—		14,687		—		—			(12,158	)		—			—			—			—
Museo de los niños S.A. (3)		1,111		—		—		—		(5	)		—			—			—			—			—
Parque Arauco S.A. (3)		—		—		—		—		—			—			(2,716	)		(60,822	)		—			—
Credits to employees (3)		57		2,894		—		—		(128	)		—			—			—			—			—
Puerto Retiro S.A. (2)		59		31		—		—		(5	)		—			—			—			—			—
IRSA Developments LP (3)		—		—		—		—		—			—			—			—			(8	)		—
IRSA Real Estate Strategies LP (3)		—		—		—		—		—			—			—			—			(8	)		—
Elsztain Managing Partners Lim (3)		—		—		—		—		—			—			—			—			(27	)		—

Total		6,500		10,876		15,010		25,155		(2,815	)		(12,158	)		(2,716	)		(60,822	)		(54,454	)		(20	)

(1)	Shareholder

(2)	Related companies

(3)	Related parties

(4)	Direct or Indirect common control

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)

As of March 31, 2010


	Current Trade accounts receivable		Current Other receivables		Non-current Other receivables		Inventories Receivable Caballito plot of land barter		Current Trade accounts payable			Short-term debt			Long-term debt			Current Other liabilities			Non-current Other liabilities
Agro-Uranga S.A. (2)		—		215		—		—		(594	)		—			—			—			—
Banco Hipotecario S.A. (2)		340		—		—		—		—			—			—			(20,840	)		—
Baicom Networks S.A. (2)		—		—		277		—		—			—			—			—			—
BrasilAgro (2)		53		—		—		—		—			—			—			—			—
Cactus (2)		114		12		—		—		(32	)		—			—			—			—
Canteras Natal Crespo S.A. (4)		243		1,102		—		—		—			—			—			—			—
Consorcio Dock del Plata S.A. (3)		1,382		16		—		—		(53	)		—			—			—			—
Consorcio Libertador S.A. (3)		841		111		—		—		(265	)		—			—			(4	)		—
Consultores Asset Management S.A. (3)		692		1		—		—		(7	)		—			—			(11,421	)		—
Cresca S.A. (4)		20		3,637		—		—		—			—			—			—			—
Cyrsa S.A. (4)		2,565		32		—		25,155		(998	)		—			—			—			—
Directors (3)		2		161		—		—		(29	)		—			—			(24,273	)		(20	)
Dolphin Fund PLC (3)		—		—		—		—		—			—			—			(3,023	)		—
Estudio Zang, Bergel & Viñes (3)		—		20		—		—		(1,403	)		—			—			—			—
Fundación IRSA (3)		31		3		—		—		(474	)		—			—			(1,073	)		—
Inversiones Financieras del Sur S.A. (1)		—		69		—		—		—			—			—			—			—
Hersha Hospitality Trust (2)		—		1,928		—		—		—			—			—			—			—
Metroshop S.A. (4)		—		2,265		20,443		—		—			—			—			—			—
Museo de los niños S.A. (3)		1,082		—		—		—		(5	)		—			—			—			—
Parque Arauco S.A. (3)		—		—		—		—		—			(1,185	)		(60,002	)		—			—
Credits to employees (3)		64		2,046		4		—		(29	)		—			—			—			—
Puerto Retiro S.A. (2)		52		97		—		—		—			—			—			—			—

Total		7,481		11,715		20,724		25,155		(3,889	)		(1,185	)		(60,002	)		(60,634	)		(20	)

(1)	Shareholder

(2)	Related companies

(3)	Related parties

(4)	Direct or Indirect common control

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)

The results for the fiscal years ended March 31, 2011 and 2010, held with related companies, persons and shareholders are as follows:

As of March 31, 2011


	Gain from leases		Beef cattle expenses			Fees			Interest Income (loss)			Other income and expenses and current personal asset’s tax		Administration services		Sales and fees for shared services		Donations
Agro-Uranga S.A. (2)		—		—			—			—			989		—		—		—
Cactus (2)		—		(215	)		—			—			4		24		—		—
Canteras Natal Crespo S.A. (4)		—		—			—			3			—		—		36		—
Consorcio Torre Boston (3)		—		—			—			—			—		—		241		—
Consorcio Libertador S.A. (3)		9		—			—			—			—		—		92		—
Consorcio Dock del Plata S.A. (3)		—		—			—			—			—		—		78		—
Consultores Asset Management S.A. (3)		14		—			(47,394	)		—			—		—		—		—
Cresca S.A. (4)		—		—			—			—			—		492		—		—
Cyrsa S.A. (4)		3		—			—			—			—		—		—		—
Directors (3)		—		—			(35,547	)		(3	)		—		—		—		—
EAASA (2)		—		—			—			—			—		—		226		—
Estudio Zang, Bergel & Viñes (3)		—		—			(5,785	)		—			—		—		—		—
Fundación IRSA (3)		—		—			(2,317	)		—			—		—		—		(2,530	)
Inversiones Financieras del Sur S.A. (1)		—		—			—			2,021			—		—		—		—
Parque Arauco S.A. (3)		—		—			—			(315	)		—		—		—		—
Credits to employees (3)		—		—			—			201			—		—		—		—
Tarshop S.A. (2)		2,884		—			—			80			—		—		533		—

Total		2,910		(215	)		(91,043	)		1,987			993		516		1,206		(2,530	)

(1)	Shareholder

(2)	Related companies

(3)	Related parties

(4)	Direct or Indirect common control

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)

As of March 31, 2010


	Gain from leases		Beef cattle expenses			Fees			Interest Income/ (loss)			Other			Other income and expenses and current tax on shareholders’ personal assets			Administration services		Salaries and wages			Sales and fees for shared services		Donations
Shareholders in general (1)		—		—			—			—			—			(328	)		—		—			—		—
Agro-Uranga S.A. (2)		—		—			—			9			437			—			—		—			—		—
Cactus (2)		—		(1,199	)		—			9			(797	)		—			111		—			—		—
Canteras Natal Crespo S.A. (4)		—		—			—			74			—			—			—		—			36		—
Consorcio Libertador S.A. (3)		8		—			—			—			—			—			—		—			92		—
Consorcio Dock del Plata S.A. (3)		—		—			—			—			—			—			—		—			169		—
Consultores Asset Management S.A. (3)		—		—			(20,446	)		—			—			—			—		—			—		—
Cresca S.A. (4)		—		—			—			—			—			—			541		—			—		—
Cyrsa S.A. (4)		47		—			—			—			—			—			—		—			146		—
Directors (3)		—		—			(40,177	)		—			—			—			—		(428	)		—		—
Estudio Zang, Bergel & Viñes (3)		—		—			(3,502	)		(6	)		—			—			—		—			—		—
Fundación IRSA (3)		—		—			—			—			—			—			—		—			—		(409	)
Parque Arauco S.A. (3)		—		—			—			(5,697	)		—			—			—		—			—		—
Credits to employees (3)		—		—			—			99			—			—			—		—			—		—

Total		55		(1,199	)		(64,125	)		(5,512	)		(360	)		(328	)		652		(428	)		443		(409	)

(1)	Shareholder

(2)	Related companies

(3)	Related parties

(4)	Direct or Indirect common control

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 5:

SEGMENT REPORTING

As of March 31, 2011:


	Agricultural																							Slaugh- tering			Real estate
	Crops												Sale								Subtotal Agri -			Slaugh- tering			Develop - ment and sale			Office												Financial operations		Subtotal real
Descripción	Local			Interna- cional			Beef cattle			Milk			of farms			Others			Non Operating		cultural business			/ Feed Lot			of properties			and Others			Shopping Centers			Hotel operations			Consumer financing			and others		estate business			Total
Production income		72,653			28,392			30,797			24,581			—			—			—		156,423			—			—			—			—			—			—			—		—			156,423
Cost of production		(56,063	)		(21,087	)		(18,413	)		(18,156	)		—			—			—		(113,719	)		—			—			—			—			—			—			—		—			(113,719	)

Production profit		16,590			7,305			12,384			6,425			—			—			—		42,704			—			—			—			—			—			—			—		—			42,704

Sales		104,228			31,947			44,040			22,274			71,096			36,377			—		309,962			59,531			188,738			122,243			482,757			154,015			65,782			—		1,013,535			1,383,028
Cost of sales		(87,472	)		(29,472	)		(43,074	)		(22,274	)		(21,652	)		(26,699	)		—		(230,643	)		(62,429	)		(147,491	)		(25,432	)		(124,063	)		(91,792	)		(22,455	)		—		(411,233	)		(704,305	)

Sales profit		16,756			2,475			966			—			49,444			9,678			—		79,319			(2,898	)		41,247			96,811			358,694			62,223			43,327			—		602,302			678,723

Gross profit		33,346			9,780			13,350			6,425			49,444			9,678			—		122,023			(2,898	)		41,247			96,811			358,694			62,223			43,327			—		602,302			721,427

Selling expenses		(24,706	)		(3,540	)		(1,810	)		(1,090	)		—			(3,739	)		—		(34,885	)		(4,118	)		(8,231	)		(7,090	)		(29,011	)		(15,859	)		(24,786	)		—		(84,977	)		(123,980	)
Administrative expenses		(13,013	)		(4,334	)		(10,106	)		(1,592	)		(4,299	)		(2,320	)		—		(35,664	)		(2,280	)		(31,296	)		(32,813	)		(48,705	)		(30,846	)		(6,287	)		—		(149,947	)		(187,891	)
Gain from recognition of inventories at net realizable value		—			—			—			—			—			—			—		—			—			39,629			—			—			—			—			—		39,629			39,629
Unrealized (loss) gain on inventories		(14,235	)		1,391			71,101			—			—			37			—		58,294			416			—			—			—			—			—			—		—			58,710
Net gain from retained interest in consumer finance trusts		—			—			—			—			—			—			—		—			—			—			—			—			—			4,707			—		4,707			4,707

Operating result		(18,608	)		3,297			72,535			3,743			45,145			3,656			—		109,768			(8,880	)		41,349			56,908			280,978			15,518			16,961			—		411,714			512,602

Assets		375,860			835,388			338,483			56,975			—			60,129			193,041		1,859,876			71,703			748,979			1,302,267			2,003,292			242,372			35,286			1,702,336		6,034,532			7,966,111
Liabilities		90,809			867			516			1,978			—			7,596			1,043,578		1,145,344			16,056			466,365			515,691			1,762,276			241,408			31,112			263,382		3,280,234			4,441,634
Non-current investments in other companies (1)		19,056			632,236			185			3,522			—			—			—		654,999			—			287,208			—			—			283,586			51,481			914,250		1,536,525			2,191,524
Increases and transfers of property and equipment and intangible assets		20,862			4,666			17,281			252			—			183			7,094		50,338			22,904			14			14,820			32,125			6,549			2,960			—		56,408			129,710
Amortization and depreciation		3,717			248			1,832			335			—			185			223		6,540			—			154			21,120			93,592			11,011			900			—		126,777			133,317

(1)	The balance corresponds to equity interest in BrasilAgro, Agro – Uranga S.A., Banco Hipotecario S.A., Banco Crédito and Securitización S.A., Manibil S.A., Tarshop S.A. and Hersha Hospitality Trust, Rigby 183 LLC, New Lipstick y TGLT S.A.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 5:

(Continued)

As of March 31, 2010:


	Agricultural																						Slaughtering		Real estate
	Crops						Beef						Sale of					Non		Subtotal Agricultural			Slaughtering		Development and sale of			Office and			Shopping			Hotel			Consumer			Financial operations and		Subtotal real estate
Description	Local			Internacional			cattle			Milk			Farms		Other			Operating		business			/ Feed Lot		properties			Others			Centers			operations			financing			others		business			Total
Production income		29,093			20,165			13,458			17,621			—		—			—		80,337			—		—			—			—			—			—			—		—			80,337
Cost of production		(30,726	)		(18,629	)		(15,261	)		(14,185	)		—		—			—		(78,801	)		—		—			—			—			—			—			—		—			(78,801	)

Production (loss) Profit		(1,633	)		1,536			(1,803	)		3,436			—		—			—		1,536			—		—			—			—			—			—			—		—			1,536

Sales		60,637			22,918			21,141			16,366			—		38,349			—		159,411			—		155,132			119,030			384,907			123,100			181,974			—		964,143			1,123,554
Cost of sales		(56,820	)		(20,575	)		(20,060	)		(16,366	)		—		(30,759	)		—		(144,580	)		—		(64,843	)		(26,678	)		(116,669	)		(76,056	)		(74,734	)		—		(358,980	)		(503,560	)

Sales profit		3,817			2,343			1,081			—			—		7,590			—		14,831			—		90,289			92,352			268,238			47,044			107,240			—		605,163			619,994

Gross profit (loss)		2,184			3,879			(722	)		3,436			—		7,590			—		16,367			—		90,289			92,352			268,238			47,044			107,240			—		605,163			621,530

Selling expenses		(10,435	)		(3,549	)		(973	)		(345	)		—		(1,736	)		—		(17,038	)		—		(1,774	)		(338	)		(26,186	)		(11,832	)		(93,690	)		—		(133,820	)		(150,858	)
Administrative expenses		(12,437	)		(3,777	)		(10,324	)		(2,364	)		—		(2,055	)		—		(30,957	)		—		(27,114	)		(34,403	)		(37,114	)		(26,143	)		(16,070	)		—		(140,844	)		(171,801	)
Gain from recognition of inventories at net realizable value		—			—			—			—			—		—			—		—			—		18,704			—			—			—			—			—		18,704			18,704
Unrealized gain (loss) on Inventories		(147	)		(91	)		64,531			—			—		(83	)		—		64,210			—		—			—			—			—			—			—		—			64,210
Net gain from retained interest in consumer finance trusts		—			—			—			—			—		—			—		—			—		—			—			—			—			34,824			—		34,824			34,824

Operating results		(20,835	)		(3,538	)		52,512			727			—		3,716			—		32,582			—		80,105			57,611			204,938			9,069			32,304			—		384,027			416,609

Assets		498,268			323,578			270,131			47,498			7,642		14,635			134,995		1,296,747			19,823		674,482			972,991			1,884,867			239,449			254,420			1,337,534		5,363,743			6,680,313
Liabilities		30,733			35,901			1,874			643			—		4,947			625,628		699,726			28		304,031			414,103			1,030,486			256,605			295,422			137,425		2,438,072			3,137,826
Non current investments in other companies (1)		17,195			297,962			113			2,144			—		—			1,337		318,751			19,716		26,602			—			—			—			—			1,034,900		1,061,502			1,399,969
Increases and transfers of property and equipment		22,309			—			10,118			584			—		844			4		33,859			—		7			480			67,593			3,517			1,696			—		73,293			107,152
Amortization and depreciation		3,447			—			1,422			507			—		431			501		6,308			—		14,956			18,469			78,448			12,774			5,034			—		129,681			135,989

(1)	The balance corresponds to equity interest in BrasilAgro, Cactus, Agro Uranga S.A., Exportaciones Agroindustriales Argentinas S.A., Banco Hipotecario S.A., Banco Crédito and Securitización S.A. Manibil S.A. and Hersha Hospitality Trust.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 6:

LAWSUITS AND CLAIMS IN COURSE

Agricultural Business

Ongoing litigation with the city of Villa Mercedes.

The Misdemeanours Court Judge to the city of Villa Mercedes issued resolution No. 2980/08 about the situation of Cactus in such city, determining that the Company had a 36-month term to stop operating and transferring the establishment located on the Provincial Route 2B.

In such 36-month period, the Company shall not host over 18,500 head of cattle.

Such brief was appealed by Cactus before the Municipality, which was negatively answered on April 7, 2009, by means of Decree No. 0662/09, thus ratifying the Misdemeanour Court Judge’s ruling. Under the administrative justice of the city of Villa Mercedes, Cactus would have until April 7, 2012 to conclude its operations and transfer the establishment.

Cactus has filed appeals with the High Court of Justice of the Province of San Luis, objecting the lawfulness of the rulings entered by the Misdemeanours Court Judge of Villa Mercedes. The appeals are pending and the High Court has not ruled on them.

The Company’s legal advisors are optimistic about the possibilities of reversing the Misdemeanours Court Judge’s ruling.

Irrespective of the above, Cactus is carrying out a plan to improve its relationship with the community of Villa Mercedes, seeking to strengthen the company’s position as a valuable member in the social and economic activity in the region, whose purpose is that the scheduled moving be reconsidered by municipal authorities.

Real Estate Business

Provision for unexpired claims against Llao Llao Holding S.A.

The Llao Llao Holding S.A. (“LLH”) Company (in liquidation process following the merger with and into the Company), predecessor of Llao Llao Resorts S.A. (“LLR”) as operator of the Llao Llao Hotel, was sued in 1997 by the National Parks Administration seeking collection of the unpaid balance of the additional sale price, in Argentine External Debt Bond (“EDB”) amounting to US$ 2.9 million. A ruling of the court of original jurisdiction sustained the claim. That ruling was appealed and the Court of Appeals confirmed the judgment of the court of original jurisdiction, demanding payment from the company of US$ 3.8 million, plus interest accrued through payment, punitive interest and attorney’s fees. In March 2004, LLH paid Ps. 9,156 in cash and EDB.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 6:

(Continued)

The plaintiff requested the court of original jurisdiction to initiate an incidental procedure for execution of sentence by performing a settlement through the Ministry of Economy, the procedure has been questioned by LLR. In view of the fact that the information provided was not sufficient to evaluate the amount settled by the Ministry of Economy, it was requested that the execution be suspended until there is a sentence on the complaint recourse filed to the National Supreme Court for the denial of the extraordinary recourse soliciting that the debt be converted to pesos.

In July 2008, the Court of Appeals notified LLR that by means of a resolution dated June 18, 2008 it had confirmed the settlement approved by the court of original jurisdiction.

On March 17, 2009, the National Supreme Court admitted the incidental procedure and decided to suspend the enforcement of the judgment in so far as the extraordinary appeal lodged by LLR is not resolved.

On February 23, 2010, the Supreme Court of Justice dismissed the action, which rendered the judgment final and compelled LLR to pay the amount calculated by the State. On April, 2010 LLR paid Ps. 13,122 in cash and bonds.

After LLR’s filing was duly notified to the plaintiff, the latter in turn stated that the amounts deposited were in line with the settlement that, having taken place on June 30, 2007, was eventually approved in the framework of these proceedings on December 5, 2007. As a result, the Argentine Agency of National Parks argued that the interest accrued until actual payment were to be adjusted by application of the Argentine Central Bank’s borrowing interest rate. As estimated by the Argentine Agency of National Parks, the outstanding balance, to be deposited by LLR would amount to US$ 659.

On June 10, 2010, LLR was notified of the newly-performed settlement: LLR filed an objection against it in due time and manner. On June 17, 2010, the court ordered that the plaintiff was to be served notice of the objection.

On August 6, 2010, the plaintiff filed a response to the most recent service of process. On September 10, 2010, the trial court judge resolved that the amount deposited by Llao Llao Resorts S.A. is not sufficient to cover the amount of the payment order. An appeal against this resolution was filed on behalf of Llao Llao Resorts S.A. alleging that there has been a material error incurred by the trial court.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 6:

(Continued)

In addition, on September 22, 2010, the judge calculated that the fees payable to the auctioneer who took part in the proceedings amount to Ps. 1.8 million. LLR lodged an appeal against the award for considering the amount excessively high. The auctioneer, in turn, lodged his appeal against the award for considering the amount excessively low. On November 26, 2010 the case was elevetad to the Court of Appeals. On November 29, 2010 the proceedings were brought to a settlement stage between the parties. On February 3, 2011 the Court of Appeals granted the appeal filed by LLR as regards the restatement of interest in the amount of US$ 659. As a result, the judgment rendered by the trial court was reversed and LLR’s debt was considered paid off as regards the settlement amount approved in the proceedings, with court costs being awarded to the plaintiff. Furthermore, the appeal remedy regarding fees awarded to the auctioneer, which were reduced from Ps. 1.8 million to Ps. 1.1 million.

Since LLR had a credit balance as regards the deposit made pursuant to settlement approved in the proceedings, on February 18, 2011 LLR filed a remedy for relief whereby it requested that the Court of Appeal issue a decision on the amount deposited in excess and order the eventual repayment to the defendant.

The case was remanded to the Court of Appeals on February 22, 2011 and is awaiting a decision.

Based on the information provided by the legal advisors litigating these proceedings, LLR has booked under “Other current liabilities – Payables to National Parks Administration”, the fees that refer in the previous paragraph.

NOTE 7:

RESTRICTED ASSETS

Agricultural Business

Pledge on BrasilAgro’s shares and warrants

Based on Note 8.A.1, as guarantee for the payment of the outstanding balance from the acquisition of BrasilAgro’s shares and warrants, 3,864,086 shares and 37,325 warrants from the first issue are pledged. (See note 16)

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 7:

(Continued)

Real Estate Business

IRSA

Puerto Retiro S.A.

On April 18, 2000, Puerto Retiro S.A (indirect subsidiary of IRSA) was notified of a filing made by the National Government, through the Ministry of Defense, to extend the petition in bankruptcy of Inversora Dársena Norte S.A. (Indarsa) to Puerto Retiro S.A. At the request of plaintiff, the bankruptcy court granted an order restraining the ability of Puerto Retiro S.A. to sell or dispose in any manner the acquired real estate property from Tandanor S.A. in June 1993.

Indarsa had acquired 90% of the capital stock of Tandanor S.A. to a formerly estate owned company privatized in 1991, engaged in the shipyard industry.

Indarsa did not comply with the payment of the outstanding price for the acquisition of the stock of Tandanor, and therefore the Ministry of Defense requested the bankruptcy of Indarsa, pursuing to extend the bankruptcy to Puerto Retiro S.A.

The evidence steps of the legal procedures have been completed. Puerto Retiro S.A. appealed the precautionary measure, being the same confirmed by the Court on December 14, 2000. The parties have submitted their claims in due time. The file was passed for the judge to issue a pronouncement, the judge issued a decree adjourning the summoning of decisions to pronouncement in the understanding that there exists pre-judgment in respect of the penal cause filed against ex-officers of the Ministry of Defense and ex-directors of the Company. Consequently, the matter will not be solved until there is final judgment in penal jurisdiction.

The Management and legal advisors of Puerto Retiro S.A. estimate that there are legal and technical issues sufficient to consider that the request for bankruptcy will be denied by the court. However, taking the circumstances into account and the progress of the legal action, this position cannot be considered final.

Mortgage guaranteed loan Hoteles Argentinos S.A.

In March 2005, Credit Suisse First Boston (“CSFB”) acquired the debt for US$ 11.1 million of Hoteles Argentinos S.A. (“HASA”), which had been in non-compliance since January 2002. In April 2006 HASA made a payment reducing the capital amount payable to US$ 6.0 million. The balance accrued interests at a LIBO rate six months plus 7.0%, being the last of US$ 5.07 due in March 2010.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 7:

(Continued)

Jointly, IRSA subscripted a credit default swap for 80% of the restructured debt value in order to protect CSFB in case of non-compliance with HASA’s obligations. As compensation, IRSA will receive a payment of a coupon on a periodical basis. In addition, to support the obligations assumed, IRSA deposited as guarantee the amount of US$ 1.2 million.

With the last installment of the loan received having been repaid on March 15, 2010, CSFB reimbursed the deposit to IRSA. In connection with this matter, HASA borrowed funds from Standard Bank Argentina again, in the amount of Ps. 19,000, which will accrue interest at a fixed nominal 16.25% interest rate per annum, payable on a quarterly basis and with principal becoming due on March 15, 2011.

As a security interest for this transaction, IRSA entered into a put option agreement with Standard Bank whereby the Bank receives the right to sell to IRSA, which in turn agrees to purchase, 80% of the credit rights arising from the loan in the event of HASA’s default.

IRSA and its subsidiaries has mortgaged on the following properties:


Property	Book value as of March 31, 2011
República Building		216,336
Terreno Caballito		40,670
Terreno Bariloche		27,051
Terreno Zetol		31,089
Suipacha 652		17,716
Terreno Vista al Muelle		21,654

IRSA maintains a pledge over Metropolitan 885 Third Avenue Leasehold LLC’s shares

To guarantee due compliance with all the covenants assumed by Liveck S.A., and the minority shareholder of Zetol S.A.’s and Vista al Muelle S.A.’s pursuant to the stock purchase agreement for Vista al Muelle S.A.’s shares executed on June 11, 2009 and the Addendums to the Agreement, as well as payment of any possible damages and associated expenses, the parties have reciprocally tendered a security interest consisting in a possessory pledge over the shares in Vista al Muelle S.A. and Zetol S.A.

IRSA has raised a mortgage over the property designated as “Suipacha 652” to secure compliance with its obligation to erect a building and to convey the units to be constructed in the building as this obligation represents the balance outstanding for the acquisition of a plot of land in Av. Del Libertador 1755.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 7:

(Continued)

In May 2008, IRSA bought a 49% shareholding in Manibil S.A. from Land Group S.A. Manibil S.A. had been created to transact business in real estate and construction and to carry out financial transactions and made contributions proportional to its shareholder possession for Ps. 23.9 million. By virtue of the contracts signed, IRSA agreed not to transfer its shares or any rights related thereto for a term of three years.

IRSA carries a mortgage on the property designated as “Edificio República” in connection with the loan granted by Banco Macro for the acquisition of said property.

APSA

As of March 31, 2010 under other current receivables, APSA has deposits that are restricted under due to different court attachments.

The accounts receivable guarantee deposits in Other current receivables and programs included the contingency and expenses funds of financial trust as credit protection for investors that as of June 30, 2010 amounted to Ps. 4,749. They were restricted availability credits until settlement in accordance with the respective prospectus.

As regards the case “Alto Palermo S.A. (APSA) with Dirección General Impositiva in re: Appeal”, Case file No. 25.030-I, currently heard by Room A, Office of the 3rd Nomination, the property located at Av. Olegario Andrade 367, Caballito, Buenos Aires City has been encumbered, and its value as of March 31, 2011 amounts to Ps. 36,785 (disclosed in other “Non-current investments- Undeveloped parcels of land”).

Other current investments account, as of June 30, 2010 included BONTE 2006 bonds for Ps. 34; which were deposited as rental guarantee.

As of June 30, 2010, Tarshop S.A. had granted a pledge over Certificates of Participation related to the Fideicomisos Financieros Tarjeta Shopping, (CP) according to the following detail:

•

To Standard Bank Argentina S.A., CP related to the Fideicomisos Financieros Tarjeta Shopping Series XLI, XLIV, XLVII, LVII and LIX (loan of Ps. 15,371).

•

To Banco Itaú Buen Ayre S.A., CP related to the Fideicomisos Financieros Tarjeta Shopping Series XXXIX and XL (loan of Ps. 3,724).

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 7:

(Continued)

•

To Banco Supervielle S.A., CP related to the Fideicomisos Financieros Tarjeta Shopping Series XXXII, XXXVIII y L, (loan of Ps. 7).

•

To Banco Hipotecario S.A., CP related to Fideicomisos Financieros Tarjeta Shopping Series XLVII, XLIX y LVI, (loan of Ps. 20,149).

As regards the case styled “Case File N° 88.390/03 with María del Socorro Pedano; for Tres Ce S.A. o Alto Palermo S.A.” (“APSA”), the building located at Av. Virrey Toledo 702, Salta, has been encumbered for an amount of Ps. 180 (disclosed in “Property and equipment”).

Guarantee Tarshop S.A.: On May 13, 2009, the Board of Directors of Alto Palermo S.A. resolved to approve that APSA stands as surety before Banco Itaú for the payment of emerging obligations for Tarshop S.A. as regards the organization of a new financial trust with such bank for up to a maximum amount equivalent to 10% of the face value of VDG’s (trust debt securities) subscribed by Banco Itaú. The total maximum amount of this surety stands at Ps. 5,000 and extended through the actual settlement of VDF’s. Likewise, it was resolved that APSA assumes the obligation to act as Substitute Manager in the eventual case that Tarshop were removed from its function as Manager under the trust agreement.

On September 30, 2010, the last payment of the VDF’s issued by the Financial Trust was made. At present, such Financial Trust is liquidated and with it the accessory obligation assumed at the time by APSA in the process of liquidation.

As of June 30, 2010 included cash as guarantee for leases granted by Tarshop S.A., related to the stores where its branches operated, which were included in other non current receivables for an amount of Ps. 217.

Under the agreement executed with Banco Hipotecario S.A. for the sale of Tarshop S.A.’s shares, APSA granted to Banco Hipotecario S.A. a two-year security agreement over the Company’s Class III Notes, issued on November 13, 2009, for a face value of Ps. 5.0 million, which will work as guarantee upon any price adjustment that may result in favor of Banco Hipotecario S.A. as provided by the purchase agreement.

NOTE 8:

ACQUISITION, CONSTITUTION AND RESTRUCTURING OF COMPANIES

Agricultural Business

Purchase of shares and warrant BrasilAgro

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

On October 20 and December 23, 2010, the Company and its subsidiary Helmir executed with Tarpon an addendum to the Share Purchase Agreement of April 28, 2010, under which the Company either directly or indirectly acquired 9,581,750 shares of common stock of BrasilAgro, representing 16.40% of the outstanding stock and 64,000 warrants from the First Issue and 64,000 warrants from the Second Issue. Consequently, Cresud paid Rs. 25.2 million on October 20, 2010, Rs. 50.8 million on December 23, 2010 and the price remainder equivalent to Rs. 52.5 million should be paid on April 27, 2011, which is guaranteed by a security interest over 3,864,086 shares and 37,325 warrants from the First Issue. It should be noted that this balance was paid following the end of these financial statements (See Note 16 to the financial statements).

Consequently, Cresud is either directly or indirectly the owner of 20,883,916 shares or 35.75% of the Company’s outstanding stock as of March 31, 2011 (see note 13.1.a to the Basic Financial Statement). It should be noted that acquiring shares does not imply a change in the control over BrasilAgro; and that BrasilAgro’s Shareholders’ Agreement will remain effective with the amendments that may be required to sell all shares owned by Tarpon and its affiliates.

Likewise, due to the transaction, Cresud owns directly and indirectly 168,902 BrasilAgro’s First Issuance Warrants and 168,902 BrasilAgro’s Second Issuance Warrants.

As of March 31, 2011 the Company registered an asset for Ps. 27,199 for the acquisition of these warrants (Note 4.b).

Expanding business into the Republic of Paraguay

Under the framework of a series of transactions that constitute for Cresud a new expansion of the agricultural and livestock businesses in South America, Cresud participates together with Carlos Casado (with a 50% interest each) in Cresca S.A. a stock company organized under the law of the Republic of Paraguay, under which Cresud will assume the capacity of advisor under an advisory agreement, for the agricultural, livestock and forestry exploitation of an important rural area in Paraguay and possibly of up to 100,000 hectares, which are derived from the purchase option granted by Carlos Casado to Cresca S.A. It should be mentioned that this option was exercised on September 3, 2008. The option will be in force for a term of 10 years and will be automatically extended for two additional ten-year terms, and it may also be renewed.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

Cresud has additionally executed a pre-purchase agreement as committed to acquire for a 50% interest in 41,931 hectares in Paraguay, owned by Carlos Casado S.A. for a total and agreed-upon amount of US$ 5.2 million in turn, to be contributed in kind to the Company aiming at developing the agricultural and forestry business in the neighboring country.

On January 23, 2009, Agrology S.A. directly and indirectly controlled by 99.99% by Cresud made a contribution in kind to the Paraguayan company, Cresca S.A. Such contribution is made up of undivided 50% of five plots of land with whatever they have on, located in Mariscal José Félix Estigarribia, Dept. of Boquerón, Chaco Paraguayo, Republic of Paraguay, for 41,931 hectares, acquired from the Company Carlos Casado S.A.

Consequently, together with Carlos Casado S.A.’s contribution, the total contribution to Cresca S.A. stands at US$ 10.5 million.

On February 3, 2009, the amount of US$ 5.1 million was paid for the balance of the price originated by the capital contribution made by Carlos Casado S.A. to Cresca S.A. on behalf of Agrology S.A.

Finally, on June 29, 2010 a notarial deed was executed for the conveyance of title on the real property subject to the option for an amount of 3,646 hectares which were transferred to Cresca S.A. (1,807 of which corresponds to Agrology).

As agreed in the Option Agreement, Cresca S.A. paid Carlos Casado S.A. US$ 350 per hectare, the last payment was made on March 4, 2011.

Real Estate Business

IRSA

Constitution of CYRSA – Horizons Project

In January 2007, IRSA acquired two adjacent plots of land adjacent located in Vicente López, Province of Buenos Aires (one of them through the acquisition of the total share of Rummaala S.A, actually merged with CYRSA). The purchase price was US$ 36.2 million, from which US$ 30.3 million will be canceled by handing over certain units of the building to be constructed. As security for compliance, Rummaala S.A. shares were pledged and the Building located in Suipacha 652 (owned property) was mortgaged.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

In April, 2007, IRSA constituted CYRSA S.A. (“CYRSA”), and in August 2007, CYRELA was incorporated with the ownership of 50% of CYRSA capital stock. IRSA contributed with the plots of land and the liability in kind related in the amount of Ps. 21,495 and CYRELA contributed Ps. 21,495 in cash.

Then, a major real estate development known as “Horizons” was launched on the two plots of land mentioned.

From May 2008, CYRSA continued the marketing process of the building units to be constructed on the plot referred to above. Certain clients had made advances by means of signing preliminary sales contracts, reaching 100% of the units to be marketed, which are disclosed in “Customer advances”.

The purchase-sale price set forth in these preliminary sales contracts are made of a fixed and determined portion and another portion to be determined in line with the future construction expenses.

The buyer can choose from the following purchase plans:

•

The balance will be cancelled in installments and will be fully paid at the time of transfer and signature of deeds, or,

•

Partial cancellation will be on installments payable up to the time of transfer/signatures of deeds, and remaining balance will be financed during 90 months´ term with units having mortgaged guarantees.

As of March 31, 2011, the total percentage of completion of the Horizons project was 94.28%. Two of the six towers included in the project have already been completed and are currently going through the process of signature of deeds. Furthermore, the work on the other towers is in the last stage and delivery and signature of deeds is expected in the following months.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

Acquisition of shares in Hersha Hospitality Trust (“Hersha”)

On August 4, 2009, IRSA, through Real Estate Investment Group L.P. (REIG) acquired 5.7 million shares representing approximately 10.4% of Hersha´s common stock and a call option that matures on August 4, 2014 to purchase an additional 5.7 million shares at an exercise price of US$ 3.00 per share. Under the agreement, if starting on August 4, 2011 the quoted market price of Hersha´s share were to exceed US$ 5.00 per share during 20 consecutive trading sessions, Hersha may settle the call option by issuing and delivering a variable amount of shares to be determined in accordance with certain market values.

The total purchase price paid was US$ 14.3 million. As part of the agreement, IRSA´s Chairman and CEO, Mr. Eduardo S. Elsztain, has been appointed to Hersha’s Board of Trustees.

In January 2010, March 2010, and October 2010, REIG purchased 11,606,542 additional shares of Hersha’s common stock for an aggregate purchase price of US$ 47.9 million. (4,789,917 for US$ 3.00 per share and 3,864,000 for US$ 4.25 per share and 2,952,625 a US$ 5.80 per share).

During December 2010 and March 2011, IRSA through its subsidiaries sold 1,500,000 and 738,800 common shares, respectively, in Hersha for a total of US$ 14.3 million, which resulted in approximately US$ 10.1 million gain.

As of March 31, 2011 IRSA´s direct and indirect interest in Hersha represents 9.39%. On the other hand, upon exercise of the call option and assuming any Company´s interest is not diluted due to newly issued shares, IRSA´s interest in Hersha would be 12.34%. IRSA accounts for its investment in Hersha at cost while the call option has been accounted for at its fair value.

Hersha is a Real Estate Investment Trust (REIT) listed in the New York Stock Exchange (NYSE) under the “HT” symbol that holds majority interests in 78 hotels throughout the United States of America totaling approximately 10,443 rooms. These hotels are rated as “select service” and “upscale hotels” and they are mainly located in the Northeast coast of the US, including New York, New Jersey, Boston, Washington D.C. and Philadelphia, whilst a few are located in northern California and some others in Arizona. These properties are operated under franchises that are leaders and enjoy widespread recognition in their markets, such as Marriot International, Intercontinental Hotel Group, Starwood Hotels, Hilton Hotels Corporation, Global Hyatt Corporation and Choice Hotels International.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

Acquisition Lipstick, New York Building

In July 2008, IRSA (through its subsidiaries) acquired a 30% interest in Metropolitan 885 “Metropolitan 885 Third Avenue. LLC” (o “Metropolitan”), through its subsidiaries which main asset is a rental office building in New York City known as the “Lipstick Building” and debt related to that asset. The transaction included the acquisition of (i) a put right exercisable until July 2011 to sell a 50% of the interest acquired at the same value paid plus interest at 4.5% per annum and (ii) a right of first offer to acquire a 60% portion of the 5% interest of the shareholding. The total price paid was US$ 22.6 million.

During 2009, Metropolitan incurred significant losses, which resulted in negative equity mainly due to an impairment recognized in connection with the building. Since IRSA’s share in Metropolitan’s losses exceeded its equity interest; IRSA recognized a zero value on its investment although a liability of US$ 1.5 million was booked representing it’s maximum commitment to fund Metropolitan’s operations.

In December 2010 the negotiations geared towards restructuring the amounts owed under mortgage to Royal Bank of Canada came to a successful conclusion. The debt was reduced from US$ 210.0 million to US$ 130.0 million (excluding accrued interest) at a Libor plus 400 bp rate, which may not exceed a maximum rate of 6.25% and with a maturity date fixed at seven years. The junior indebtedness to Goldman, Sachs & Co., which had amounted to US$ 45.0 million (excluding accrued interest), was cancelled through a US$ 2.25 million payment.

Metropolitan 885 Third Avenue Leasehold LLC (“Metropolitan Leasehold”) will maintain the existing ground leases in the same terms and conditions in which they had been initially agreed upon, for a remaining 66 years’ term. The final consent to this restructuring has already been tendered by all the parties concerned and the closing was consummated on December 30, 2010, as that is when the company New Lipstick LLC (“New Lipstick”), a new Metropolitan Leasehold holding company, made a US$ 15.0 million principal payment as repayment of the newly restructured mortgage debt, thus reducing it from US$ 130.0 million to US$ 115.0 million.

As a consequence of said closing, the Company has indirectly – through New Lipstick – increased its ownership interest in the Lipstick Building to 49%. This increase originated in a US$ 15.3 million capital contribution and in the fact that the put option for 50% of the shareholding initially acquired in Metropolitan, which had amounted to approximately US$ 11.3 million plus accrued interest, has been rendered ineffectual. Besides, the above-mentioned commitment, for US$ 1.5 million, ceased to be in effect.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

Acquisition of shares in Banco Hipotecario S.A.

During the last fiscal years and in the current fiscal year, IRSA has been conducting different purchase and sale transactions of BHSA shares, as a result of which, as of March 31, 2011, IRSA´s ownership interest in BHSA is 29.77% of BHSA´s capital stock (without considering treasury shares).

Acquisition of companies in the Oriental Republic of Uruguay

During the fiscal year ended June 30, 2009, IRSA (through Tyrus) acquired by a minimum payment a 100% stake in Liveck S.A. (Liveck), a company organized under the laws of the Oriental Republic of Uruguay.

At the same time Liveck acquired, a 90% interest over the shares of the companies Zetol S.A (Zetol) and Vista al Muelle S.A. (Vista al Muelle), both property owners in Uruguay´s Canelones Department. The remaining 10% ownership interest in the capital stock of both companies is held by Banzey S.A. (Banzey).

IRSA and its shareholders intend to develop an urban project that will consist in the construction of apartment buildings to be subsequently sold. The project has already been conferred the “Urban Feasibility” status by Canelones’ Mayor’s Office and its Legislative Council.

The total price for the purchase of Zetol was US$ 7.0 million, of which US$ 2.0 million were paid, the balance will be paid in 5 installments of US$ 1.0 million each with anannual 3.5% compensatory interest calculated on the total outstanding amount tied to the consummation of the release to the market of the real estate projects or within a maximum term of 93 months counted as from the date of acquisition of IRSA. The sellers of the shares of Zetol may choose to receive, in lieu of the amounts outstanding in cash (capital plus interest) the ownership rights to the units to be built in the real estate owned by Zetol representative of 12% of the total marketable square meters to built.

The total price for the purchase of all the shares in Vista al Muelle amounted to US$ 0.83 million, and accrued an annual 8% interest on the total outstanding amount. As of September 10, 2010 this operation was completely paid.

To guarantee compliance with the duties agreed by Liveck in the above transactions, Ritelco S.A. has tendered a surety bond guaranteeing payment of 45% of the outstanding balance, interest thereon and the option rights of the sellers.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

In the framework of the purchase agreement of Zetol and Vista al Muelle and their respective addenda, Liveck has agreed to buy the shares held by Banzey (or by Ernesto Kimelman or by a company owned by Ernesto Kimelman, as applicable), of Vista al Muelle and Zetol and the latter have agreed to sell them, in exchange for the amount of US Dollars or Uruguayan Pesos, as the case may be, that Banzey (or by Ernesto Kimelman or by a company owned by Ernesto Kimelman, as applicable), would have actually contributed to Zetol and Vista al Muelle until the execution of the transaction.

Both parties have agreed that all the obligations mentioned above shall be rendered ineffectual if the parties entered into a shareholder agreement no later than July 1^st, 2011. If no such shareholder agreement is signed, this sale shall be executed and delivered on July 11, 2011.

Later, in June 2009, IRSA sold 50% of its stake in Liveck to Cyrela Brazil Realty S.A. (Cyrela) for a price of US$ 1.3 million.

In December 2009, Vista al Muelle acquired other properties totaling US$ 2.7 million in exchange for a US$ 0.3 million down payment, with the balance to be cancelled through the delivery of home units and/or stores to be built and equivalent to 12% out of 65.54% of the sum of the prices of all of the units covered by the Launching Price List for Sector B (the parties have already signed a plat of subdivision to this end).

In February 2010, it acquired additional real estate for a total of US$ 1.0 million in exchange for a down payment of US$ 0.15 million with the balance to be paid in 3 consecutive and equal installments maturing on December 31, 2011, June 30, 2013 and December 31, 2014 and accruing an annual 3% interest rate on the outstanding balance, payable quarterly and on arrears as from December 31, 2009.

On December 17, 2010, IRSA and Cyrela signed a stock purchase agreement whereby a 50% interest in Liveck’s capital stock was reacquired from Cyrela for US$ 2.7 million. This amount is equivalent to the contributions made in Liveck by Cyrela. Therefore, IRSA´s interest in Liveck amounted to 100% (through Tyrus).

As part of the agreement, IRSA agreed to hold Cyrela harmless in the event of claims asserted by Zetol’s sellers. Besides, if within a term of 24 months as from the date of the agreement Cyrela were not released from the guarantee tendered in favor of the above-mentioned sellers, IRSA will be obliged to post a new guarantee in favor of Cyrela, equivalent to 45% of the price balance, interest thereon and the option rights to which Zetol’s sellers are entitled.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

Merger and spin-off/merger between IRSA and Patagonian Investment S.A.; and spin-off/merger with Palermo Invest S.A. and Inversora Bolívar S.A. (IBOSA)

IRSA’s shareholders’ meeting held on November 27, 2009 approved, amongst other decisions, the corporate reorganization consisting in the merger by absorption of Patagonian Investment S.A. into IRSA, and the spin-off of Palermo Invest S.A. to be subsequently merged with Inversora Bolívar S.A. as well as all the documentation concerning these transactions. Afterwards, on January 22, 2010, a public deed was drawn to formalize the Final Merger Agreement (“the Merger Agreement”) in due time filed with the oversight authorities.

Option to acquire an interest in APSA

In January, 2010, Parque Arauco S.A. accepted the bid submitted by IRSA, and acquired, through a purchase option, the 29.55% interest in APSA and the held of face value of US$ 15.5 million of “APSA’s Convertible Notes 2014”.

The acceptance of the bid grants IRSA the right to exercise the purchase option mentioned above until August 31, 2010, which term may be extended until November 30, 2010 subject to compliance with certain conditions.

The strike price has been fixed at the total and final amount of US$ 126 million. IRSA transferred US$ 6 million to Parque Arauco S.A., non refundable, as payment in exchange for the option, to be computed towards cancellation of the final price.

On September 21, 2010, IRSA’s Board of Directors resolved to exercise the option, which was consummated on October 15, 2010 through the payment of the price balance and the transfer of the shares. According to the terms of the option, the dividends paid by APSA for the fiscal year ended on June 30, 2010 were deducted from the price.

As a consequence of the transaction, as of March 31, 2011, IRSA’s interest in APSA rises to 94.89%.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

Sale of ownership interest in Pereiraola S.A.I.C.I.F. y A. (Pereiraola).

In June 2010, IRSA closed the sale and transfer of Pereiraola shares for US$ 11.8 million, for which it has collected US$ 1.94 million. The balance shall be paid through a transfer to the name of IRSA of the higher of 6% of the marketable lots, or 39,601 square meters in the gated neighborhood that the buyer has agreed to develop in the property owned by Pereiraola, equivalent to US$ 2.1 million and four consecutive, half-yearly installments of US$ 1.94 million each plus an annual 14% interest rate on the balances, which interest shall be paid in the same conditions as principal, the first installment of which has already been paid in December 2010.

Acquisition of Torodur S.A.

In May 2010 IRSA acquired a 100% stake in Torodur S.A.’s capital stock for US$ 0.01 million. Later on, IRSA transferred a 2% ownership interest to CAM Communications LP, at cost.

Acquisition of Unicity S.A.

On September 1, 2010, and through E-Commerce Latina S.A. (subsidiary of IRSA) acquired a 100% stake in Unicity S.A. (Unicity) for US$ 2.53 million. Unicity’s main asset consists in 31,491,932 shares representative of 10% of the capital stock of Solares de Santa María S.A. and for which it carries a liability to IRSA on the purchase price balance, which as of the date hereof is US$ 9.1 million. On September 28, the debt was capitalized and IRSA received 36,036,000 shares representing 88.61% of Unicity, being held by E-Commcerce the remaining 11.39%

Sale of Torres Jardín IV

On October 25, 2010, IRSA executed a preliminary sales agreement whereby it sold the lot that fronts, at 220/254/256 Gurruchaga street, at the intersection with Murillo street in the Autonomous City of Buenos Aires (Torres Jardín IV) designated as “lot 2”. The total price of the transaction had been fixed at US$ 2.9 million and the terms of payment were: US$ 0.9 million to be collected upon signing the preliminary sales agreement and the price balance, US$ 2.0 million, to be collected when possession is conveyed and the title deed over the property is executed, which took place in January 2011.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

Purchase of TGLT S.A.’s shares

In December 2010, IRSA acquired 9,598 non-endorsable common shares in book entry form of 1 vote each, representing 0.01% of TGLT S.A.’s capital stock. The total price paid was Ps. 0.1 million.

Sale of interest stake in Quality

On March 31, 2011, IRSA and Palermo Invest S.A. sold to EFESUL S.A. (“EFESUL”) 50% of the capital stock of Quality. As a result of such sale, Quality became jointly controlled by IRSA and EFESUL.

Purchase of BACS shares

On March 10, 2011, IRSA signed an stock purchase agreement with International Finance Corporation (IFC) for a total of 796,875 common shares, which represents a 1.28% of BACS capital stock in an aggregate amount of US$ 0.32 million, US$ 0.06 million of which were paid upon execution of the agreement, and the balance of US$ 0.26 million (supported by respective promissory notes) are to be repaid at the time of closing of the transaction, that is within 12 business days as from approval of the transaction by the BCRA, which is still pending.

APSA

Capital increase and capital contributions to Tarshop S.A.

On October 30, 2009, Tarshop S. A., capitalized irrevocable contributions made by APSA, thus APSA’s participation increased to 98.5878%.

During January 2010, APSA acquired the minority interest (1.4122%) property of the minority shareholder for US$ 0.54 million, reaching the 100% of share interest.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

Sales of the equity interest in Tarshop S.A.

On December 22, 2009, APSA reported the approval by its Board of Directors of the sale assignment and transfer of the 80% of the equity interest in Tarshop S.A. to Banco Hipotecario S.A. Such interest represents 80% of the capital stock issued and outstanding, this is 107,037,152 registered, nonendorsable shares of common stock with a face value of Ps. 1 and entitled to 1 vote each.

In this line of thought, on December 29, 2009, contractual documents related to the transaction were executed, which was subject to the approval by the Argentine Central Bank granted on August 30, 2010. Consequently, on September 13, 2010, the respective memorandum of closure was executed. The total price paid for the purchase of shares stood at US$ 26.8 million. Under this transaction, APSA granted Banco Hipotecario S.A. a two-year security agreement over APSA Class III Notes, issued on November 13, 2009, for a face value of Ps. 5 million, which will work as guarantee upon any price adjustment that may result in favor of Banco Hipotecario S.A. as provided by the purchase agreement.

In compliance with the conditions defined in the agreement in question, APSA committed itself to not competing for 5 years in the credit card and/or consumer loan business in which Tarshop S.A. has a presence.

Additionally, under this transaction, receivables and payables between APSA and Tarshop S.A. have been compensated.

Acquisition of Arcos del Gourmet S.A.’s shares

On November 27, 2009, APSA acquired 7,916,488 shares of common stock with a face value of Ps. 1 each, entitled to 1 vote per share, representing 80% of the capital stock of Arcos del Gourmet S.A. The price was established at fixed amount of US$ 5.14 million plus a variable amount equal to the 20% of the investment required in order to develop the project, up to a maximum of US$ 6.9 million. The remaining unpaid balance as of March 31, 2011 is made up as follows: (i) one US$ 1 million installment, falling due on November 27, 2011 disclosed in “Short-term debt” and (ii) 100% of the variable amount which will be paid off upon the possible increase of the capital required to develop the project.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

A Consultative Opinion request was filed by APSA with the Argentine Competition Defense Commission, still pending resolution, seeking to issue an opinion on the obligation or lack thereof to notify the sale. Such commission opinion was that the operation should be notified. Accordingly, on December 16, 2010, the sale was notified.

On February 17, 2010, Arcos del Gourmet S.A. held a shareholders’ meeting that approved a capital increase of US$ 2.7 million, equivalent to Ps. 10.4 million. Consequently, 3,515,596 registered non-endorsable shares of common stock will be issued, with a face value of Ps. 1 and entitled to one vote per share, with a subscription price of Ps. 2.9622 per share, of which Ps. 1 is the face value and Ps. 1.9622 is additional paid-in capital, of which APSA is entitled to 80% thereof. The issue has been fully subscribed and paid in on the balance sheet date.

On June 25, 2010, APSA (purchaser) and Eduardo Giana, Pablo Bossi, Patricio Tobal and Abuam S.A. (sellers) subscribed an agreement for the option to purchase shares of Arcos del Gourmet S.A., for the total number of shares owned by them, which represent at least 17.54% of capital stock and votes of Arcos del Gourmet S.A. The exercise of the option was subject to the condition that the grantor of the Use Concession Agreement calls a bidding process whose purpose will be the sale of the real estate properties involved, assumption under which Arcos del Gourmet S.A. holds the preemptive right. The price of the shares owned by the sellers was established at US$ 1.4 million. The option price of US$ 0.4 million was fully cancelled. In the event APSA exercised the option, its price will be considered towards the share price.

Acquisition of a commercial center goodwill

On December 28, 2007, APSA signed an agreement for Partial transfer of goodwill with INCSA for acquiring one of the part of the Goodwill established by a commercial center where “Soleil Factory” currently develops activities. The total price of the operation was of US$ 20.7 million of which US$ 7.1 million were paid at the time the preliminary purchase contract was entered into.

Once the signature of the definitive instrument took place on July 1, 2010, the remaining amount of US$ 13.6 million will accrue 5% annual interest plus VAT. The interest will be repaid in 7 annual and consecutive installments maturing the first installment on July 1, 2011. Principal will be settled as follows: i) US$ 1 millon with the delivery of the title deed and ii) US$ 12.6 million upon paying the last interest installment or upon delivering the title deed, whichever later.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

On July 1, 2010, APSA and INCSA executed the definitive instrument for the partial transfer of the goodwill and memorandum of closure by which INCSA transferred the goodwill of the commercial center known as “Soleil Factory”; becoming operational on such date. The Commercial Center “Soleil Factory” includes a building and real properties. Possession thereof was handed over upon execution. Considering the goodwill value structure, the Company has booked in as fixed assets until the process to allocate the price paid for the assets and liabilities acquired is completed. Guidelines provide that INCSA does not transfer APSA its receivables or its payables originated before executing the agreement. Within 30 working days as from registering the co-ownership and administration regulations with the Argentine Real Property Registry, INCSA will grant APSA the title deed of the building. It should be noted that the goodwill and the building related to the hypermarket transaction located on the same premises are excluded from the transaction.

On April 12, 1011, the National Antitrust Commission notified us of its authorization of this transaction.

Furthermore, APSA signed an offering letter for acquiring, building and running a commercial centre in a real estate owned by INCSA located in the City of San Miguel de Tucumán, Province of Tucumán. The price of this transaction is US$ 1.3 million, of which US$ 0.05 million were paid on January 2, 2008. Such disbursement was recorded as suppliers advances. This transaction was subject to certain conditions precedent, among which APSA should acquire from INCSA the goodwill constituted by the commercial center operating in Soleil Factory. Having complied with such condition, on July 1, 2010, APSA shall start the works i) 12 months after complying with such conditions, or ii) on May 2, 2011, whichever earlier. However, before starting with the works, INCSA should have: i) granted the title deeds to APSA’s future units to APSA, and ii) transferred to APSA the rights to the registered architectural project and the effective permits and authorizations to be carried out in APSA’s future units. On the balance sheet date the situations described under subsection i) or ii) have not occurred.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

Acquisition of Metroshop S.A.’s shares

On May 21, 2010, APSA and Tarshop S.A. executed an agreement to formalize the transfer of shares by which Tarshop S.A. has sold APSA 18,400,000 registered nonendorsable shares of common stock with a face value of Ps. 1 each and entitled to 1 vote per Class “A” share representing 50% of Metroshop S.A.’s capital stock. The transaction price was set at Ps. 0.001 for the total shares.

On January 13, 2011, and as an action subsequent to the purchase of the remaining 50% of Metroshop S.A.’s shares by APSA, Metroshop S.A. made two offers to Tarshop S.A., later accepted by Tarshop S.A., to grant the following assets:

i) Receivables from consumption transactions carried out through December 31, 2010 and that are performing or in default for not more than 60 days (both those in Metroshop S.A.’s own portfolio and those assigned to Fideicomiso Financiero Metroshop S.A. Serie XV – previous return of them).

ii) The contractual position in the credit card issuance agreements whose customers did not have as of December 31, 2010 a default for over 60 days in complying with their obligations.

iii) All credit card customers or accounts and consumer loans.

iv) Lease agreements on certain branches and their personal property.

v) Labor agreements for payroll personnel.

APSA is currently analyzing the different possibilities to define the future operations of Metroshop S.A.

Purchase of TGLT S.A.’s shares

On November 4, 2010, APSA acquired 5,214,662 registered, non-endorsable shares of common stock, entitled to one vote per shares, issued by the Company TGLT S.A. for a total amount equivalent to Ps. 47.1 million under the initial public offering of the latter.

In December, 2010, the company acquired 42,810 shares for the price of Ps. 0.4 million.

Later, during January 2011, there was a new purchase of 98,000 shares for a total amount of Ps. 0.9 million.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 9:

PURCHASE, SALE AND BARTER OF PROPERTIES

Agricultural Business

Acquisitions of land in the Republic of Bolivia

On July 28, 2008, the Company acquired “Las Londras” farm, a 4,566 hectare property located in the Province of Guarayos, Bolivia for an aggregate purchase price of US$ 11.4 million, of which US$ 1.1 million was paid upon executing the purchase agreement, US$ 3.8 million on January 22, 2009 date in which the contracts’ protocol was signed and US$ 4.0 million on November 9, 2009 and US$ 2.5 million on February 15, 2011.

On July 28, 2008, the Company acquired “San Cayetano” and “San Rafael” farms, a 883 hectare and a 2,969 hectare properties located in the Province of Guarayos, Bolivia for an aggregate purchase price of US$ 8.9 million out of which US$ 0.9 million was paid upon executing the purchase agreement, US$ 2.9 million in November 19, 2008 date in which the contracts’ protocol was signed and US$ 3.1 million in November 9, 2009 and US$ 2.0 million in November 11, 2010.

On July 28, 2008, the Company acquired “La Fon Fon” farm, a 3,748 hectare property located in the Province of Obispo Santiesteban, Bolivia for an aggregate purchase price of US$ 8.6 million out of which US$ 1.4 million was paid upon executing the purchase agreement, US$ 2.3 million in November 19, 2008 date in which the contracts’ protocol was signed and US$ 3.0 million in November 9, 2009 and US$ 1.9 million in November 11, 2010.

Real Estate Business

IRSA

Acquisition of Catalinas Norte plots of land

On December 2009 IRSA acquired by public sale a plot of land of 3,649 square meters and located in the area known as Catalinas Norte in the Autonomous City of Buenos Aires.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 9:

(continued)

The total amount payed was Ps. 95.0 million, of which: Ps. 19.0 million was paid together with the sign to the preliminary sales agreement and the outstanding balance of Ps. 76.0 million was paid at the time of executing and delivering the corresponding title deed, which took place during May, 2010.

Acquisition of a building located at 183 Madison Avenue, New York, NY

On August 26, 2010, IRSA together with some U.S. partners, executed an acquisition of a real estate property located at 183 Madison Avenue, New York, NY, through Rigby 183 LLC (“Rigby 183”).

The transaction was closed on December 15, 2010 and the price paid by Rigby 183 was US$ 85.1 million, such payment has been structured through a financing of US$ 40.0 million obtained by Rigby 183 and the amount of US$ 45.1 million paid in cash. Moreover, Rigby 183 has obtained and additional financing of US$ 10.0 million, in order to perform refurbishments and improvements on the building, which is being disbursed according to the works progress.

On March 31, 2011, the Company sold 8% of its interest in Rigby 183, owned by Real Estate Strategies LLC (“RES”), a company indirectly controlled through Tyrus, in the amount of US$ 3.8 million. As a result, the Company has a 49% interest in Rigby 183 through IMadison LLC (“IMadison”).

The building is located in a Manhattan area known as “Midtown South”, at the intersection of Madison Avenue and 334th Street. There are several landmark buildings in the area, such as the Empire State Building, Macy’s Herald Square and Madison Square Garden. This commercial property will be used for rentals of office space and retail stores in the lowest of its 18 stories. Its net leasable area is approximately 22,000 square meters. Based on what has already been discussed, the implicit value per square meter as acquired has been US$ 3,717.

Preliminary sales agreement

On March 31, 2011 Quality Invest S.A. executed a preliminary sales agreement for the purchase of a plot of land located in the province of Buenos Aires, for a total consideration of US$ 33,0 million, US$ 6.6 million of which had already been paid as of the balance sheet date.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 9:

(Continued)

APSA

•

Acquisition of the building known as ex-escuela Gobernador Vicente de Olmos (City of Córdoba)

On November 20, 2006, APSA acquired, through a public bidding, the building known as Ex Escuela Gobernador Vicente de Olmos (Patio Olmos) located in the city of Córdoba for the amount of Ps. 32,522.

The building is under a concession agreement, effective for 40 years, falling due in February 2032, which grants the concession holder the commercial exploitation of the property. Such agreement provides for paying a staggered fee in favor of the concession principal which shall be increased by Ps. 2.5 every 47 months. As of the issuance date of these financial statements, the concession is at the 229 month, with a current monthly fee of Ps. 12.6 while the next increase is scheduled for the 234 month.

On September 25, 2007, the transfer deed the buiding was signed with the Government of the Province of Córdoba and the transference of the respective concession contract. This transaction was recorded as Non-current investments.

•

Barter with Condominios del Alto S.A.

On October 11, 2007, APSA subscribed with Condominios del Alto S.A. a barter contract in connection with an own plot of land (plot 2 G), located in the City of Rosario, Province of Santa Fe.

As partial consideration for such barter, Condominios del Alto S.A. agreed to transfer the full property, possession and dominium in favor of APSA of the following future Real Estate: (i) fifteen (15) Functional Housing Units (apartments), with an own constructed surface of 1,504.45 square meters, which represent and will further represent jointly 14.85% of the own covered square meters of housing (apartments) of the building that Condominios del Alto S.A. will build in Plot G, and (ii) fifteen (15) parking spaces, which represent and will further represent jointly 15% of the own covered square meters of parking spaces in the same building.

On March 17, 2010, APSA and Condominios del Alto S.A. subscribed a supplementary deed specifically determining the units committed for bartering that will be transferred to APSA and the ownership title to 15 parking spaces.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 9:

(Continued)

The parties have determined that the value of each undertaking is of US$ 1.1 million.

APSA also granted Condominios del Alto S.A. an acquisition option through barter of plot 2 H. On November 27, 2008, the title deed for the plot of land 2 H was executed for US$ 2.3 million, a value that the parties have determined for each of their considerations.

As partial consideration for the above-mentioned barter, Condominios del Alto S.A. agreed to transfer the full property, possession and ownership in favor of APSA of the following future real estates: (i) forty two (42) Functional Housing Units (apartments), which represent and will further represent jointly 22% of the own covered square meters of housing (apartments) of the building that Condominios del Alto S.A. will construct in Plot H; and (ii) forty seven (47) parking spaces, which represent and will further represent jointly 22% of the own covered square meters of parking spaces units in the same building.

•

Beruti plot of land

On October 13, 2010, TGLT S.A. (TGLT) and APSA subscribed an agreement of purchase by which APSA sells a plot of land located on Beruti 3351/59. The transaction was agreed upon at US$ 18.8 million. TGLT plans to construct a department building with residential and commercial parking. In consideration, TGLT S.A. commits to transferring APSA: (i) a number to be determined of departments representing altogether 17.33% of proprietary square meters that may be sellable in departments in the building to be constructed; (ii) a number to be determined of complementary/functional parking units representing altogether 15.82% of square meters in parking in the same building; (iii) all units earmarked for commercial parking and the amount of US$ 10.7 million payable upon granting the title deed. Such amount has been paid as of the date of these unaudited financial statements.

In compliance with what was agreed upon in the previously mentioned agreement of sale, on December 16, 2010, it was executed the title deed by which APSA transfer the entire ownership and title to TGLT S.A. to the previously mentioned plot of land.

The above is disclosed in the accounts Inventories and Property an equipment.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 9:

(Continued)

•

Barter with Cyrsa S.A.

On July 31, 2008, a conditioned barter commitment was executed by which APSA would transfer Cyrsa S.A. (“Cyrsa”) 112 parking spaces and the rights to increase the height of the property to build a two tower in preserve on the air space COTO.

On December 17, 2010, APSA and Cyrsa signed an agreement in order to finish off the barter agreement.

•

Plot of land Paraná:

On June 30, 2009, APSA subscribed a “Letter of Intent”, by which it stated its intention to acquire a plot of land of about 10,022 square meters located in Paraná, Province of Entre Ríos, to be used to build, develop and exploit a shopping center or mall.

On August 12, 2010, the agreement of purchase was executed. The purchase price stood at US$ 0.5 million to be paid as follows:

i) US$ 0.05 million was settled as prepayment on July 14, 2009,

ii) US$ 0.1 million was settled upon executing such agreement, and

iii) US$ 0.35 million will be paid upon executing the title deed.

The title deed, at the same time of surrendering ownership, will be executed within 60 days running as from: i) the date on which APSA obtains the municipal clearance, or ii) the date on which the seller obtain the lot subdivision, whichever later. On March 18, 2011 the Municipality of Paraná granted the municipal clearance for constructing the shopping mall.

APSA will be the only party in charge of carrying out administrative formalities before the Municipality and/or other agency to obtain the municipal clearance for using the shopping mall. It will bear all costs and expenses related to obtaining the municipal clearance.

•

Plot of land Guaymallén

On March 26, 2010, APSA executed an agreement of purchase without possession by which the Company sold a building located in the district of Guaymallén, Province of Mendoza. The total agreed-upon price stood at US$ 0.3 million, which has been full cancelled.

•

Plot of land Rosario

APSA has subscribed the following acceptance offers for the plot of land of the building located in the District of Rosario, City of Rosario, Province of Santa Fe.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 9:

(Continued)


Lots	Offer acceptance		Agreed price (in thousands of US$)		Collected amount (in thousands of US$)		Title deed’s date
2 A		04/14/2010		4,200		1,050		—
2 E		05/03/2010		1,430		1,430		09/29/10
2 F		11/10/2010		1,931		917		—
2 B		12/03/2010		1,507		1,507		—
2 C		12/03/2010		1,507		1,507		—
2 D		12/03/2010		1,539		256		—

The lots subject to these transactions have been recorded to the inventory account.

NOTE 10: GRANTED GUARANTEES OF FYO.COM

By means of brokerage of agreement with guarantee, FyO.Com assumes before the purchaser the obligation to comply with the agreement in the event the seller did not deliver the merchandise. This compliance is implemented by returning the amounts agreed upon by such transaction that may be pending delivery, as well as the price difference that may arise between the price at which the agreement was executed and the price of the merchandise on the date the agreement is cancelled.

As of March 31, 2011 and June 30, 2010, the balance of brokerage transactions carried out by means of such agreement with guarantee, which was pending delivery, within the established contractual terms, amounted to Ps. 11,165 and Ps. 9,498 respectively.

As of March 31, 2011 and June 30, 2010, there are no agreements that failed to be complied with for which FyO.Com may have been claimed in its capacity of guarantor.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 11:

CONVERTIBLE AND NON CONVERTIBLE NOTES PROGRAM

Real Estate Business

IRSA

Convertible Notes – Due date 2017

In February 2007, IRSA issued non-convertible Notes (Non convertible notes-2017”) for US$ 150 million to become due in February 2017 under the framework of the Global Program for Issuing Non convertible notes (“the Program”) in a face value of up to US$ 200 million authorized by the National Securities Commission. Non convertible notes-2017 accrues an annual fixed interest rate of 8.5%, payable every six months, starting in August, 2007. The principal will be fully paid on maturity. Non convertible notes-2017 contains customary covenants including restrictions to pay dividends in accordance with certain limits.

On February 25, 2010, the IRSA´s Board of Directors approved the extension of the maximum nominal value of the program by an additional US$ 200 million, reaching a total amount of US$ 400 million, as approved by the Ordinary Meeting of Shareholders held on October 29, 2009.

Within this framework, on July 20, 2010, IRSA issued non-convertible notes for a face value of US$ 150 million (“Non-convertible Notes Class II”) maturing on July 20, 2020. The issuance price was 97.838% of par value and they accrue interest at a nominal interest rate of 11.5% per annum, to be paid semi-annually on January 20 and June 20 each year, starting on January 20, 2011. The expenses related to the issuance amounted to Ps. 7.1 million.

On November 2, 2010, the General Shareholders’ Meeting approved a new expansion of the Program in force for up to a further US$ 50 million bringing it to US$ 450 million.

APSA

Issuance of convertible notes

On July 19, 2002, APSA issued Series I of Convertible Notes (“ONC”) for up to US$ 50 million with a face value of Ps. 0.1 each. That series was fully subscribed and paid-up.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 11:

(Continued)

This issuance was resolved at the Ordinary and Extraordinary Meeting of Shareholders held on December 4, 2001, approved by the National Securities Commission Resolution No. 14,196 dated March 15, 2002 and authorized to list for trading on the Buenos Aires Stock Exchange on July 8, 2002.

The main issue terms and conditions of the Convertible Notes are as follows:

•

Issue currency: US dollars.

•

Due date: On July 19, 2014.

•

Interest: at a fixed nominal rate of 10% per annum. Interest is payable semi-annually.

•

Payment currency: US dollars or its equivalent in pesos.

•

Conversion right: the notes can be converted at any time at the option of each holder into ordinary shares at a conversion price equivalent to the higher of the result from dividing the face value of the Company’s shares (Ps. 0.1) by the exchange rate and US$ 0.0324, which means that each note is potentially exchangeable for 30.864 shares of Ps. 0.1 par value each.

•

Right to collect dividends: the shares underlying the conversion of the convertible notes will be entitled to the same right to collect any dividends to be declared after the conversion as the shares outstanding at the time of the conversion.

On October 7, 2010, the holders of Notes convertible into APSA’s shares exercised the conversion right, issuing 477,544,197 shares of common stock, with a face value of Ps. 0.1 each and retiring Notes for a face value for US$ 15.5 million. As from the conversion, the number of APSA’S shares went from 782,064,214 to 1,259,608,411.

Thus, the holders of APSA’s Notes (convertible into ordinary shares) exercised conversion rights for a total amount of US$ 18.3 million, issuing ordinary shares with a face value of Ps. 0.1 each.

As of March 31, 2011, APSA’s Convertible Notes amounts to US$ 31.8 million.

Issuance of non-convertibles notes

On May 11, 2007, APSA issued two series of notes for a total amount of US$ 170 million.

Series I corresponds to the issuance of US$ 120 million maturing on May 11, 2017, which accrue interest at a fixed rate of 7.875% paid semiannually on May 11 and November 11 of each year as from November 11, 2007.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 11:

(Continued)

Series II corresponds to the issuance of Ps. 154,020 (equivalent to US$ 50 million). Principal will be settled in seven, equal and consecutive semi- annual installments as from June 11, 2009, and accrues interest at 11% per annum, maturing on June 11, and December 11 of each year as from December 11, 2007.

As of March 31, 2011 total Series I and Series II Notes repurchased by APSA amount to US$ 5.0 million and US$ 4.8 million, respectively. Such notes had been valued at face value and are disclosed netting the current and non-current capital and interest owed.

On October 12, 2010, the Company sold APSA’s Series I negotiable obligations through the secondary market for a face value of US$ 39.6 million that it had acquired in the course of fiscal year 2009. The total amount collected from the transaction was US$ 38.1 million. The difference has been treated as an implicit financial cost of the transaction, which shall accrue and be amortized against income over the term of the Non-Convertible.

IRSA holds Non-Convertible Series II in the face amount of Ps. 33.2 million. Moreover, Cresud S.A.C.I.F. y A. holds Non-Convertible Series I for a face value of US$ 5.0 million.

These issuances correspond to Classes 1 and 2 within the Global Program for Issuing Negotiable Obligations, having a face value of up to US$ 200 million authorized by the National Securities Commission Resolution No. 15,614 dated April 19, 2007.

The APSA´s Shareholders Meeting held on October 29, 2009 approved the increase in the amount of the Global Program for the Issuance of Notes in place up to US$ 200 million. It also approved the creation of the Global Program for the issuance of securities representing short-term debt (“VCP”) in the form of simple notes not convertible into shares, denominated in pesos, US dollars or any other currency with unsecured, special, floating and/or any other guarantee, including third party guarantee, either subordinated or not, for a maximum outstanding amount at any time that may not exceed the equivalent in Ps. of US$ 50 million.

Under such Global Issuance Program of Notes, on November 10, 2009, the placement of the Second Series of Notes for a total value of Ps. 80.7 million, was completed in two series.

Series III relates to the issuance of Ps. 55.8 million maturing on May 12, 2011, which accrue interest at variable BADLAR plus a 3% margin payable on a quarterly basis.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 11:

(Continued)

Series IV relates to the issuance of Ps. 24.9 million (equivalent to US$ 6.6 million) maturing on May 12, 2011, which accrues interest at a fixed 6.75% rate applied to the principal in US dollars, payable on a quarterly basis.

As of March 31, 2011 Emprendimiento Recoleta S.A. holds Series III Notes for Ps. 12 million in face value.

NOTE 12: SIGNIFICANT EVENTS

Real Estate Business

IRSA

Investment in Banco Hipotecario S.A.

Exposure to the non-financial public sector

As of March 31, 2011, Banco Hipotecario S.A. has assets with the non-financial public sector for Ps. 1,113,068 booked in its financial statements.

The exposure of Banco Hipotecario S.A. to the Public Sector originated in compensations granted by the National Government as a result of year 2002 crisis, principally related to the asymmetric “pesification” of assets and liabilities, through Communication “A” 4546 of July 9, 2006, regarding the assistance to the Public Sector, it was established that as from July 1, 2007, such limit was 35% (average measured) of total Assets of the last day of the previous month.

As of March 31, 2011 and June 30, 2010 the assistance to the Public Sector reaches 9.7% and 20.2% from total Assets, respectively.

Banco Hipotecario S.A.’s Treasury Shares

In the course of fiscal year ended June 30, 2009 and with the Total Return Swap dated January 29, 2004 having expired, Banco Hipotecario S.A. received treasury shares Class D totaling 71.1 million.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 12:

(Continued)

On April 30, 2010, the Extraordinary General Shareholders’ Meeting of the Banco Hipotecario S.A. resolved to delegate upon the Board of Directors of the bank the decision to pay with the treasury shares in portfolio the DAA or StAR coupons resulting from the debt restructuring as advisable based on the contractually agreed valuation methods and their actual market value after allowing the shareholders to exercise their preemptive rights on an equal footing.

On June 16, 2010, the Board of Directors of Banco Hipotecario offered to sell 36 million of its treasury Class D shares to its existing shareholders. On July 26, 2010, in the framework of the offering, the Bank sold approximately 26.9 million of its treasury Class D shares. On August 3, 2010, the Bank applied the proceeds from the offering and the remaining Class D shares to the cancellation of the StAR coupons maturing on that date.

On April 13, 2011, the Special Shareholders’ Meeting of Banco Hipotecario decided to authorize the Board of Directors to sell treasury shares in the open market, reducing to ten days the term established for the exercise of pre-emptive rights, which term is not applicable where the sale of shares does not exceed 1% of the Company’s capital stock in any given period of 12 months.

The Company’s Banco Hipotecario treasury shares still in its portfolio amount to 36.64 million and entail an increase in the IRSA’s ownership interest. As considered for valuation purposes, they have risen from 29.77% to 31.51%.

Transactions pending solution by the Argentine Antitrust Commission (“CNDC”)

On November 20, 2009, after the sale of the building Edificio Costeros (Dock II), IRSA applied to the CNDC for a consultative opinion on whether IRSA had to notify that transaction or not. The CNDC found that there was an obligation to notify the same, but IRSA appealed that decision. As of the date of issuance of these financial statements, the CNDC had not yet handed down a resolution.

In addition, as regards the acquisition of Torre Bank Boston, on August 30, 2007 IRSA applied to the CNDC for a consultative opinion as to whether IRSA had to notify the transaction. On November 22, 2007 the CNDC stated that there was indeed a duty to notify the transaction. IRSA filed an appeal against this decision. The resolution from the matter in court was favorable to the CNDC. On November 3, 2010 was notified to the CNDC. As of the date of issuance of these financial statements, the autorization is in process of notificating the operation.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 12:

(Continued)

APSA interim dividend

On March 30, 2011, the Board of Directors of APSA informed shareholders that it shall pay, as from April 11, 2011, an interim cash dividend in the amount of Ps. 130.8 million, for the fiscal year beginning July 1, 2010 for income made as of December 31, 2010.

On April 11, 2011, APSA paid the interim dividend as indicated in the previous paragraph.

APSA

Financing and occupation agreement with NAI INTERNATIONAL II, INC.

On August 12, 1996 Empalme S.A.I.C.F.A. y G. (merged into Shopping Alto Palermo S.A. as from January 1st, 2009) executed an agreement with NAI INTERNATIONAL II, INC. (subsequently transferred to NAI INTERNACIONAL II, INC. – Branch Argentina) by means of which the latter granted a loan for an original principal of up to US$ 8.2 million for the construction of a multiplex cinema and part of the parking lot located in the premises of Córdoba Shopping, Villa Cabrera which are disclosed in Property and Equipment, net.

According to the agreement of occupation related to the loan contract, the amounts due are set off against payments generated by the occupation held by NAI INTERNATIONAL II, INC. of the building and the area known as cinema. The agreement provides that if after October 2027, there still is an unpaid balance of the loan plus respective interest thereon, the agreement will be extended for a final term established as the shorter of the term required to fully repay the unpaid loan amount, or ten years.

If once the last term has elapsed and there still is an unpaid balance, APSA will be released from any and all obligation to pay the outstanding debt.

On July 1st, 2002 a new amendment to the agreement was established, whose most important resolutions are as follows:

•

The outstanding debt was de-dollarized (Ps. 1 = US$ 1)

•

An antichresis right was created and it was established that all obligations assumed by Empalme S.A.I.C.F.A. y G. under the agreement by which the normal use and operation of the cinema center is warranted to NAI INTERNATIONAL II, INC., including those obligations involving restrictions on the use or title to property by Empalme S.A.I.C.F.A. y G. or third parties, shall be comprised in the previously mentioned property right.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 12:

(Continued)

Principal owed as of March 31, 2011 and interest accrued unpaid through that date, due to the original loan agreement and respective amendments are disclosed under Customer advances – Lease advances together with other advances not included in this agreement.

Neuquén Project

The main asset of Shopping Neuquén S.A., controlled by APSA, is a plot of land of 50,000 square meters approximately, in which a mixed use center would be built. The project includes the building of a shopping center, cinemas, a hypermarket, apartments, private hospital and other compatible purposes.

On December 13, 2006, Shopping Neuquén S.A. entered into an agreement with the Municipality and with the Province of Neuquén by which, mainly, the terms to carry out the commercial and residential venture were rescheduled and authorized Shopping Neuquén S.A. to transfer to third parties the title to the plots of land into which the property is divided, provided that it is not that one on which the shopping center will be built.

Such agreement put an end to the case Shopping Neuquén S.A. vs. Municipalidad de Neuquén in re: procedural administrative action”, lodged at the High Court of Neuquén. Lawyers’ fees shall be borne by the company, which although they have been established are not yet final.

On June 12, 2009, Shoppping Neuquén S.A. and the Municipality of Neuquén executed a new agreement by which Shoppping Neuquén S.A. committed itself to presenting a new road project and to making those amendments that may be necessary to the general project. On October 19, 2009, the respective amendments to the previously mentioned projects were filed. Subsequently, the Municipality of Neuquén made some remarks to them, which were duly replied. On January 18, 2010, the Municipality of Neuquén requested changes to the plans filed, granting a 30-day term to be filed.

Finally, on July 5, 2010, Shopping Neuquen S.A. began the committed works for the first stage, which should be completed at a maximum 22 month terms starting upon beginning construction. In the case of failing to comply the conditions established in the agreement, the Municipality of Neuquén is entitled to terminate the agreement and carry out the actions that may be considered necessary for such respect, among them, to request the return of the Company´s plots acquired to the Municipality of Neuquén.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 12:

(Continued)

On April 15, 2011 the Company entered into an agreement with Gensar S.A. whereby the latter is entitled to buy one of the plots of land that form part of the commercial undertaking of mixed use, next to which the Company is building a shopping center. In this plot of 14,792.68 square meters, Gensar S.A. agreed to build and operate a hypermarket that initially will be of the Coto chain. To such effect, Gensar S.A. has taken possession of the above indicated plot of land.

Contributed leasehold improvements - Other liabilities

In March 1996 Village Cinema S.A. inaugurated ten multiplex system cinema theatres, with an approximate surface of 4,100 square meters. This improvement of the building of Mendoza Plaza Shopping S.A. was capitalized with a balancing entry as a fixed asset, recognizing the depreciation charges and the profits over a 50-year period. The lease is for a time limit of 10 years to be renewed every four equivalent and consecutive periods, at the option of Village Cinema S.A. At the end of period / year the remaining pending accrual shown under other liabilities, in line improvements made by others to be accrued.

Agreement with the former minority shareholder of Tarshop S.A.

During January 2010, APSA executed an agreement with Mr. León Halac (“LH”), by which the latter assumed the obligation to abstain during 28 running months from performing any role or developing and participating in any manner whatsoever in any new credit card companies other than those existing on the market, or in the regions in which at present Tarjeta Shopping is developed. Such agreement also contemplates the impossibility by the same period of time that LH participates in developing, under any method, shopping malls or commercial center of over 20,000 square meters within the territory of Buenos Aires City, Argentine Republic. APSA, shall pay in consideration of the obligations assumed by the other party a total and definitive price of US$ 2.2 million payable. On the balance sheet date, there is no outstanding balance due.

NOTE 13:

SALES OF BUILDINGS

Real Estate Business

During the nine-month period ended March 31, 2011 and 2010, IRSA conducted several transactions for the sale of some office rental properties that made up its portfolio, representative of a gross leasable area of 620 square meters and 13,330 square meters, respectively, for a total of Ps. 10.5 million and Ps. 149.7 million, respectively. The gross income generated by these transactions amounted to Ps. 8.1 million and 105.8 million, respectively.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 14:

CAPITALIZATION PROGRAM FOR EXECUTIVE MANAGEMENT

As of March 31, 2011 Cresud and IRSA had made contributions to the capitalization program for executive management that amount Ps. 4,596.

NOTE 15:

DERIVATIVE FINANCIAL INSTRUMENTS

Real Estate Business

Futures contracts – Ritelco S.A.

In the course of the period, Ritelco S. A. conducted certain shorting and covering transactions involving futures. According to the Company’s risk management policies, these deals are used for speculative purposes.

In connection with the futures transactions that took place during de fiscal year, the Company booked realized loss for US$ 29 (equivalent to Ps. 115) in the “Other holding results” line of its Income statement.

On March 31, 2011 Ritelco had open interests in derivatives which resulting in an unrealized loss of US$ 3 (equal to Ps. 13).

Futures – IRSA

The table below lists the financial derivative transactions conducted during the period and the corresponding gains/losses thereon

Futures

Bank

Amount
US$

Due date

Gain

Open operations

Sale of dollar

Santander Río BankS.A.

7,987

04/14/2011

316

Sale of dollar

Itaú Argentina Bank S.A.

2,210

04/29/2011

Sale of dollar

Standard Bank Argentina S.A.

10,291

06/15/2011

152

Subtotal

486

Closing operations

909

Result for derivaties instruments

1,395

Futures – HASA

In order to reduce financing costs related to loans granted by Standard Bank Argentina S.A., HASA entered into non-deliverable forwards (“NDF”) for the purchase of US Dollars. The Company has recognized a gain on such transactions that amounts to Ps. 953 included under “Other holding gains/losses” of the income statement.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 16:

SUBSEQUENT EVENTS

Agricultural business

Stock purchase agreement and warrants to Tarpon

In relation to the acquisition of shares and warrants of BrasilAgro mentioned in Note 8.A.1, Cresud has paid the outstanding balance due and, as a result, the shares pledge as security thereof have been released.

Real Estate Business

APSA

Purchase of TGLT S.A.´s shares

On April 4, 2011, APSA acquired 876,474 registered, nonendorsable shares of common stock entitled to one vote per share, issued by TGLT S.A., for the price of Ps. 7.9 million, reaching an 8.86% in TGLT’s common capital stock.

Call to General Shareholders’ Meeting

On April 28, 2011, the Board of Directors of APSA decided to call a General Regular and Special Shareholders’ Meeting to be held on May 26, 2011, at 2pm, at Moreno 809, to transact the following businesses:

•

Increase of capital stock by up to Ps. 205 million through the issuance of up to 2,050,000,000 new common shares in book-entry form of 0.10 pesos par value each, in one or more tranches, with our without additional paid in capital and a right to one vote each, with dividend rights pari passu the shares then outstanding, to be placed through public offerings in the domestic and/or foreign markets.

•

Delegation onto the Board of Directors to define the terms and conditions for the issuance of one or more tranches, not expressly determined by the shareholders’ meeting, with powers to delegate such functions in one or more directors or managers of the Company, or any designee.

•

Reduction of the term for exercising the pre-emptive rights and rights of first refusal to a term of up to 10 running days for each issue, pursuant to section 194 of Act 19.550 and applicable regulations.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria and Subsidiaries

Notes to the Unaudited Consolidated Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 16:

(Continued)

•

Consideration of disposition alternatives for Non-Convertible convertible into common shares at an annual rate of 10% currently outstanding in the amount of US$ 31,755,502 nominal value, issued on July 19, 2002, contingent upon the effective capital increase being considered in this meeting, including without limitation, the repurchase offer, the call to a meeting of note holders to modify one or more terms and conditions of issue.

Given the capital increase to be considered by APSA Shareholders’ Meeting, the Board of Directors decided to call a Regular and Special Shareholders’ Meeting to be held on May 26, 2011, at 12 pm, outside the registered office, at Moreno 809 to transact the following businesses:

•

Alternatives available for the disposition of convertible Non-Convertible issued by APSA due in 2014, contingent upon the effective increase of APSA capital stock. Consideration, if applicable, of such alternatives including without limitation, repurchase offer and determination of minimum and maximum thresholds for sale, potential actions in the event of a call to note holders meeting for the amendment of one or more terms and conditions of issue.

•

Procedure to be followed by the Company as to its current pre-emptive right and right of first refusal, in order to facilitate a new public offering without losing its controlling shareholder quality. Alternatives to be considered for the use, assignment and any other form of disposition, whether or not for valuable consideration, and the different forms or methods, as to the exercise of pre-emptive rights and rights of first refusal, in order to make a new public offering of APSA capital stock effective.

•

Delegation of powers on the Board of Directors to structure motions and mandate to be granted in APSA Shareholders’ Meeting and a possible adjournment thereof, as indicated in the item and in respect to the capital increase of the company.

•

Consideration of payment of a dividend only in cash out of retained earnings as of June 30, 2010 and/or total or partial reversal of optional reserves, as provided for in the Shareholders’ Meeting.

Cresud Sociedad Anónima,

Comercial, Inmobiliaria,

Financiera y Agropecuaria

Free translation from the original prepared in Spanish for

publication in Argentina

Unaudited Basic Financial Statements

Corresponding to the nine-month periods

ended March 31, 2011 and 2010

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Balance Sheet as of March 31, 2011 and 2010 and June 30, 2010

(in thousands of pesos)

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


	March 31, 2011 (Notes 1 and 2)		June 30, 2010 (Notes 1 and 2)		March 31, 2010 (Notes 1 and 2)			March 31, 2011 (Notes 1 and 2)		June 30, 2010 (Notes 1 and 2)		March 31, 2010 (Notes 1 and 2)
ASSETS							LIABILITIES
Current Assets							Current Liabilities
Cash and banks (Note 8 a.)		20,606		3,810		4,158	Trade accounts payable (Note 8 f.)		68,523		83,126		56,059
Investments (Note 8 b.)		6,936		24,631		6,856	Short-term debt (Note 8 g.)		341,435		449,311		440,977
Trade accounts receivable, net (Note 8 c.)		60,939		85,492		56,585	Salaries and social security payable (Note 8 h.)		19,086		23,330		13,777
Other receivables (Note 8 d.)		112,712		61,916		99,968	Taxes payable (Note 8 i.)		11,080		4,659		7,757
Inventories (Note 8 e.)		215,741		100,454		146,566	Customer advances (Nota 8.j.)		—		—		1,939

Total Current Assets		416,934		276,303		314,133	Other liabilities (Note 8 k.)		29,211		42,612		46,427

							Total Current Liabilities		469,335		603,038		566,936

							Non-Current Liabilities
Non-Current Assets							Long-term debt (Note 8.g.)		333,634		—		—
Other receivables (Note 8 d.)		53,838		60,214		30,911	Taxes payable (Note 8 i.)		95,356		75,822		69,676
Inventories (Note 8 e.)		196,274		141,602		125,847	Other liabilities (Note 8 k.)		5,571		3,166		—
Investments on equity investees (Note 8 b.)		1,966,260		1,800,764		1,762,590	Provisions for pending lawsuits (Schedule E)		1,678		1,768		1,791

Other investments (Note 8 b.)		11,282		82,042		78,418	Total Non-Current Liabilities		436,239		80,756		71,467

Property and equipment, net (Schedule A)		340,327		289,991		290,165	Total Liabilities		905,574		683,794		638,403

Intangible assets, net (Schedule B)		21,604		1,071		1,147

Total Non-Current Assets		2,589,585		2,375,684		2,289,078	SHAREHOLDERS’ EQUITY		2,100,945		1,968,193		1,964,808

Total Assets		3,006,519		2,651,987		2,603,211	Total Liabilities and Shareholders’ Equity		3,006,519		2,651,987		2,603,211

The accompanying notes and schedules are an integral part of the financial statements.

Femando A. Elsztain

Director acting as President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Statement of Income

Corresponding to the nine-month periods beginning as from July 1, 2010 and 2009 and

ended March 31, 2011 and 2010

(in thousands of pesos)

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


	March 31, 2011			March 31, 2010
Production income:
Crops		72,653			28,106
Beef cattle		29,622			13,458
Milk		24,581			17,621

Total production income		126,856			59,185

Cost of production (Schedule F.2)
Crops		(56,326	)		(27,258	)
Beef cattle		(17,736	)		(15,261	)
Milk		(18,156	)		(14,185	)

Total cost of production		(92,218	)		(56,704	)

Production gain		34,638			2,481

Sales:
Crops		104,228			57,471
Beef cattle		44,387			21,141
Milk		22,274			16,366
Establishments		71,096			—
Other		10,144			10,973

Total sales		252,129			105,951

Cost of sales:
Crops (Schedule F.1)		(87,472	)		(54,231	)
Beef cattle (Schedule F.1)		(43,102	)		(20,060	)
Milk (Schedule F.1)		(22,274	)		(16,366	)
Establishments		(21,652	)		—
Other (Schedule F.1)		(2,507	)		(5,261	)

Total cost of sales		(177,007	)		(95,918	)

Sales profit		75,122			10,033

Gross profit		109,760			12,514

Selling expenses (Schedule H)		(29,652	)		(11,211	)
Administrative expenses (Schedule H)		(30,491	)		(27,284	)
Unrealized gain on inventories-beef cattle (Schedules F.1 and F.2)		70,970			64,531
Unrealized loss on inventories-crops, raw materials and MAT		(14,440	)		302

Operating gain (loss)		106,147			38,852

Financial results:
Generated by assets:
Exchange gains		4,625			1,701
Interest income (Note 8.l)		8,740			13,049
Other unrealized gain (Note 8.l)		261			10,471

		13,626			25,221

Generated by liabilities:
Exchange gains		(8,343	)		(5,437	)
Interest loss (Note 8.l)		(37,352	)		(28,679	)
Other unrealized loss		(1,699	)		(335	)

		(47,394	)		(34,451	)

Other income and expenses, net:
Shareholders’ Personal asset tax		(6,900	)		(6,166	)
Others		1,183			1,180

		(5,717	)		(4,986	)

Gain on equity investees (Note 8 m.)		111,909			181,881
Management agreement fee (Note 5)		(15,751	)		(20,446	)

Net income before income tax		162,820			186,071

Income tax (Note 6)		(21,058	)		(1,414	)

Net income for the period		141,762			184,657

Earnings per share:
Basic (Note 9)		0.29			0.38
Diluted (Note 9)		0.25			0.34

The accompanying notes and schedules are an integral part of the financial statements.

Femando A. Elsztain

Director acting as President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Statement of Changes in Shareholders’ Equity

Corresponding to the nine-month periods beginning as from July 1, 2010 and 2009 and

ended March 31, 2011 and 2010 (Notes 1 and 2)

(in thousands of pesos)

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


Items	Shareholders’ contributions														Retained earnings
	Capital (Note 3)					Inflation adjustment									Retained earnings										Total as of
	Common stock		Treasury stock			Common stock		Treasury Stock			Paid-in capital (1)		Subtotal		Legal Reserve		New Projects Reserve			Retained earnings			Translation differences		March 31, 2011
Balances as of June 30, 2009		471,539		30,000			156,276		9,942			879,218		1,546,975		16,792		85,543			126,893			36,681		1,812,884

Exercise of Options		21		—			—		—			107		128		—		—			—			—		128
Shareholders meeting held on 10.29.2009:
-Legal Reserve		—		—			—		—			—		—		6,231		—			(6,231	)		—		—
-Cash Dividends		—		—			—		—			—		—		—		—			(60,000	)		—		(60,000	)
-Reserve for new developments		—		—			—		—			—		—		—		58,385			(58,385	)		—		—
-Atribution of proprietary treasury shares		24,999		(24,999	)		8,285		(8,285	)		—		—		—		—			—			—		—
Transitory conversion differences for the period		—		—			—		—			—		—		—		—			—			27,139		27,139
Net income for the period		—		—			—		—			—		—		—		—			184,657			—		184,657

Balances as of March 31, 2010		496,559		5,001			164,561		1,657			879,325		1,547,103		23,023		143,928			186,934			63,820		1,964,808

Balances as of June 30, 2010		496,560		5,001			164,561		1,657			879,331		1,547,110		23,023		143,928			187,683			66,449		1,968,193

Exercise of Options		—		—			—		—			3		3		—		—			—			—		3
Shareholders meeting held on 10.29.2010:
-Legal Reserve		—		—			—		—			—		—		9,270		—			(9,270	)		—		—
-Reserve for new developments		—		—			—		—			—		—		—		176,136			(176,136	)		—		—
Shareholders meeting held on 12.9.2010:
-Cash Dividends		—		—			—		—			—		—		—		(69,000	)		—			—		(69,000	)
The Board of Director Meeting held on 03.11.11
Reallocation of the dividend approved by the Shareholders’ Meeting held on December 9, 2010 as dividend advances for the current year (Note 23)		—		—			—		—			—		—		—		69,000			(69,000	)		—		—
Transitory conversion differences for the period		—		—			—		—			—		—		—		—			—			59,987		59,987
Net income for the period		—		—			—		—			—		—		—		—			141,762			—		141,762

Balances as of March 31, 2011		496,560		5,001			164,561		1,657			879,334		1,547,113		32,293		320,064			75,039			126,436		2,100,945

(1)	See notes 2.q. and 16.

The accompanying notes and schedules are an integral part of the financial statements.

Femando A. Elsztain

Director acting as President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Statement of Cash Flow

Corresponding to the nine-month periods beginning as from July 1, 2010 and 2009 and

ended March 31, 2011 and 2010 (Notes 1 and 2)

(in thousands of pesos)

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


	March 31, 2011			March 31, 2010
Changes in cash and cash equivalents
Cash and cash equivalents at the beginning of the fiscal year		18,364			15,991
Cash and cash equivalents at the end of the period		23,628			8,196

Net increase (decrease) in cash		5,264			(7,795	)

Causes of changes in cash and cash equivalents
Operating activities
Net Income for the period		141,762			184,657
Income tax		21,058			1,414
Accrued interest during the period		36,266			27,180
Adjustments made to reach net cash flows from operating activities
Gain on equity investees		(111,909	)		(181,881	)
Increase in allowances and provisions		7,903			(4,544	)
Depreciations of Property and Equipment		5,147			4,334
Depreciations of Intangible Assets		564			—
Unrealized loss on Inventories		(56,530	)		(64,833	)
Financial results		(7,511	)		(13,232	)
Gain on the sale of fixed assets		18,144			31
Changes in operating assets and liabilities
Decrease (increase) in trade accounts receivable		30,161			(9,970	)
(Increase) decrease in other receivables		(4,536	)		3,095
Increase in inventories		(100,067	)		(44,305	)
Increase in social security payable and taxes payable and customer advances		136			12,233
(Decrease) increase in trade accounts payable		(25,875	)		10,724
Increase in other debts		15,707			13,998

Cash flows applied to operating activities		(29,580	)		(61,099	)

Investing activities
Increase in interest on equity method investees (except IRSA)		(67,317	)		(107,158	)
Decrease in investments		143,954			4,874
Increase in interest in IRSA		—			(5,736	)
Increase in related companies loans		(160,859	)		(38,723	)
Collection of loans from related companies		8,019			—
Dividends collected		63,436			18,344
Acquisition and upgrading of fixed assets		(34,962	)		(12,104	)
Incorporated cash by merger		579			1,161

Cash flows applied to investing activities		(47,150	)		(139,342	)

Financing activities
Cash Dividends paid		(69,000	)		(60,000	)
Increase in financial loans		147,817			228,048
Decrease in financial loans		(255,503	)		(33,711	)
Cancellation of financial interests		(31,186	)		(21,826	)
Loans granted to controlled companies		—			30,585
Payment of loans taken to subsidiaries		(33,540	)		—
Issuance of Non-convertible Notes (Note 20)		358,654			49,422
Cancellation of Non-convertible Notes		(35,251	)		—
Exercise of Warrants and Options		3			128

Cash flows provided by financing activities		81,994			192,646

Net increase (decrease) in cash and cash equivalents		5,264			(7,795	)

The accompanying notes and schedules are an integral part of the financial statements.

Femando A. Elsztain

Director acting as President

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Unaudited Statement of Cash Flow (Continued)

Corresponding to the nine-month periods beginning as from July 1, 2010 and 2009 and

ended March 31, 2011 and 2010 (Notes 1 and 2)

(in thousands of pesos)

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


	March 31, 2011			March 31, 2010
Operations not involving changes in cash and cash equivalents
Inventories transferred to property and equipment		1,043			1,661
Increase in related companies interest by transitoty conversion differences		(59,987	)		(27,139	)
Increase in related companies interest by a decrease in trade account receivables		(3,541	)		—
Increase in non-current investments through a decrease in other receivables		(122,601	)		(6,593	)

	March 31, 2011			March 31, 2010
Complementary information
Income tax paid		4,632			5,948

	March 31, 2011			March 31, 2010
Balances incorporated by merger (Note 14)
- Trade account receivables		9,134			1,632
- Other receivables		9,431			1,360
- Inventories		14,408			3,214
- Property and equipment		37,622			5,835
- Intangible assets		1,511			—
- Non-current Investments		(63,631	)		(10,777	)
- Trade account payables		(7,132	)		(408	)
- Loans		(1,145	)		—
- Salaries and social security payable		(111	)		(37	)
- Tax payables		(408	)		(523	)
- Provisions		(258	)		(1,457	)

Incorporated cash		(579	)		(1,161	)

Femando A. Elsztain

Director acting as President

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

Corresponding to the nine-month periods beginning as from July 1, 2010 and 2009 and

ended March 31, 2011 and 2010

(in thousands of pesos)

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

NOTE 1:

ACCOUNTING STANDARDS

Below there is a description of the most relevant accounting standards used by the Company in the preparation of these Financial Statements, which have been applied on a consistent basis from the previous period.

Presentation standards

These financial statements are stated in Argentine Pesos (Ps.) and have been prepared in accordance with the disclosure and valuation accounting standards contained in the Technical Resolutions issued by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE), as approved, with resolutions issued by the Consejo Profesional de Ciencias Económicas de la Ciudad Autónoma de Buenos Aires (CPCECABA) and the Comisión Nacional de Valores (CNV).

The Company’s results for the nine-month periods ended March 31, 2011 and 2010 have not been audited. The Company’s management estimates that they include all the adjustments necessary to present fairly the results for each period.

The Company’s nine-month periods ended March 31, 2011 and 2010 results do not necessarily reflect the proportion of the Company’s full-year results.

The effects of inflation

The financial statements have been prepared in constant currency units recognizing the effects of inflation up to August 31, 1995. As from this date and under professional accounting standards and as required by the enforcement agency, financial statements as of December 31, 2001 were no longer restated. As from January 1st, 2002 and under professional accounting standards, effects for inflation restarted to be recognized considering that accounting measurements restated for the change in the currency purchasing power until August 31, 1995, as those whose original date fell between such date and December 31, 2001, were stated in pesos as of such last date.

On March 25, 2003, the Federal Executive issued Decree No. 664, which established that the financial statements for year ended after such date should be stated in nominal currency. Consequently, in conformity with Resolution No. 441/03 issued by the CNV, the Company discontinued the restatement of financial statements as from March 1, 2003. Such method does not agree with current professional accounting standards, which require that financial statements should be restated until September 30, 2003. However, given the little significance of inflation rates from March through September 2003, this departure has not generated a significant effect on the financial statements taken as a whole.

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 1:

(Continued)

The rate used for restatement of items until February 28, 2003 was the domestic whole revenue price index published by the National Institute of Statistics and Census.

Comparative Information

Amounts as of June 30, 2010 and March 31, 2010, and the results for the period ended March 31, 2010, which are disclosed in these financial statements for comparative purposes have been taken from the financial statements as of such dates.

The financial statements as of June 30, 2010 and March 31, 2010 originally issued have been subject to certain reclassifications required in order to present these figures comparatively with this period.

These financial statements have been prepared giving effect to the spin-off—merger mentioned in Note 14.2; consequently, the stand-alone financial statements as of March 31, 2011 are not comparable with those issued as of June 30, 2010 and March 31, 2010.

Use of estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assessments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at that date and the reported amounts of revenues and expenses during the period.

Estimates are used when accounting for the allowance for doubtful accounts, depreciations and amortizations, income taxes, deferred liabilities, translation differences, provisions for lawsuits and contingencies, accrual for expenses and assets’ recoverable value and classification of the current and non-current assets and the current value of the assets and liabilities acquired in business combinations. Actual results could differ from these estimates.

Adoption of the International Financial Reporting Standards

The National Securities Commission, through the Resolution 562, has mandated that the Technical Resolution No. 26 of the FACPCE is to be applied by the companies admitted to the public offering system under Law No. 17,811 in connection with either their capital stock and/or negotiable obligations, and/or by the companies that have applied for admission to the public offering system. FACPCE’s Technical Resolution No. 26 adopts the International Financial Reporting Standards issued by the International Accounting Standards Board. The Company shall apply the IFRS as from the fiscal year beginning on July 1st, 2012.

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 1:

(Continued)

On April 29, 2010, the Company´s Board of Director has approved the specific implementation plan to the application of IFRS which is currently under way.

NOTE 2:

MORE RELEVANT ACCOUNTING POLICIES

Cash and banks

Cash on hand has been valued at face value.

Foreign currency assets and liabilities

Assets and liabilities denominated in foreign currency have been valued at the exchange rates prevailing at the end of the period/ fiscal year.

Temporary investments

The units of ownership of mutual funds, the mortgage certificates and bonds were valued at quotation value net of sales expenses as of the end of the period/ fiscal year. Therefore, interests to collect corresponding to non-convertible notes of IRSA and APSA which are measured according to the mentioned in Note 2.k. are included. Temporary investments do not exceed their recoverable value at the date of the financial statements.

Trade accounts receivable and payable

Trade accounts receivable and payable have been valued at nominal value. Values obtained by this do not differ significantly from those that had been valued at their cash price estimated at the time of the transaction, plus interest and implied financial components accrued on the basis of the internal rate of return determined at such time.

Credits and short-term debts

Credits and short-term debts have been valued at nominal value plus accrued interest at the end of the period/fiscal year. Values obtained by this do not differ significantly from those obtained from the sum of money delivered and/or received, respectively, net of transaction costs, plus financial results accrued at the internal rate of return determined at the moment of the initial measurement.

Derivates financial instruments

Forwards relate to cereal commitments deliverable and receivable at a previously agreed price and to purchase and sale of US Dollars and interest rate swaps agreements.

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 2:

(Continued)

Premiums collected or paid correspond to options bought or written, respectively, and are included in Other debts and Other receivables, respectively, until its due date.

The assets and liabilities originated in derivatives instruments have been valued at their market value at the date of the financial statements and/or at the best possible estimate of the amount receivable of payable, discounted by applying a rate that reflects the market the time value of money and the specific risks of the assets.

Differences generated by the application of the above mentioned valuation criteria to assets and liabilities and derivative instruments corresponding to crops have been recognized under net income of the period under “Unrealized gain on inventories – Crops, raw materials and MAT”.

Results of purchases and sales of forward transactions with US dollars operations, as well as any gain/loss resulting from interest rate swaps are included under the Financial Results.

Other receivables and liabilities

Other current receivables (except VAT receivables) have been valued at face value plus the financial results accrued at the end of the corresponding period/fiscal year. The figures thus obtained are not significantly different from those that would have been obtained if valued on the basis of the best possible estimate of the amounts receivable and payable, respectively, discounted by application of a rate that reflects the time value of money and the specific risks inherent in the transaction estimated at the time of recognizing the item in assets and liabilities, respectively.

The VAT receivables have been valued based on the best possible estimate of the discounted amount using a rate that reflects the time value of money and the specific risks inherent in the transaction estimated as of the date of these financial statements.

Balances corresponding to financial transactions and receivables and payables with related parties

Receivables and payables with related parties generated by financial transactions and other transactions were valued in accordance with the terms agreed by the parties.

Inventories

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 2:

(Continued)

1. Biological Assets (under development): Unharvested crops and Cattle: have been measured at replacement cost of goods and services needed to obtain a similar asset, which does not exceed the net realization value as of each period/fiscal year-end.

Include:

•

Unharvested crops

•

Calves

2. Biological Assets (in production): Cattle: Have been measured at the direct replacement cost of a similar asset, acquired to third parties in the markets in which the Company regularly operates, and do not exceed the net realization value as of each period/fiscal year-end.

Include:

•

Dairy cattle

•

Breeding cows

3. Biological Assets (finished): Cattle: have been measured at their net realization value (NRV) represented by the respective quotations as of each period/fiscal year-end in the markets in which the Company regularly operates, net of additional costs generated by marketing.

Include:

•

Steers and heifers

•

Cattle round-up and mares

4. Farming Products: Crops: have been measured at their net realization value, representing the different quotations as of each period/fiscal year-end in the markets in which the Company regularly operates, net of additional costs generated by marketing.

Include

•

Harvested crops

5. Farming Products - Raw material: Seeds and different goods: have been measured at reproduction or replacement cost as of each period/fiscal year-end, which does not exceed the net realization value.

Include:

•

Seeds

•

Agrochemicals

•

Semen - Cattle raising and dairy

•

Food and by-products

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 2:

(Continued)

•

Packs and bundles

•

Poles

•

Bags and blankets

•

Silos raw materials

6. The remaining inventories were valued at their replacement cost.

The carrying values of inventories, which are determined as discussed above, do not exceed their estimated recoverable values as of each period/fiscal year-end.

Long term investments in other companies

1. Investments in equity investees

The investments in subsidiaries and affiliates in which the Company has control or significant influence have been accounted under the equity method, as required by Technical Resolution No. 21 of the FACPCE approved by CNV.

The accounting standards used by the subsidiaries to prepare their financial statements are the same as those used by the Company.

The values thus obtained, do not exceed their respective estimated recoverable values at the end of the period/fiscal year.

Interests in subsidiaries and affiliates as of March 31, 2011 are as follows:


Subsidiaries and affiliates	% Equity interest
Agrology S.A. (Note13.1.b)		100.00
FyO.Com (Note13.2.f) (1)		65.85
Cactus (Note13.2.a) (2)		80.00
Agro – Uranga S.A.		35.72
IRSA (Note13.2.b)		50.60
BrasilAgro (Note13.1.a)		29.13
FyO Trading		3.63
Exportaciones Agroindustriales Argentinas S.A. (“EAASA”)		0.03
Agrotech S.A. (Note13.2.e)		97.00
Pluriagro S.A. (Note13.2.e)		97.00
Northagro S.A. (Note13.2.e)		97.00

(1)	It´s the owner of the 96.37% of the FyO Trading shares.

(2)	It´s the owner of the 99.94% of the Exportaciones Agroindustriales Argentinas S.A.

2. Acquisitions of equity interests in companies

The significant acquisitions of companies are booked according to the “acquisition method” as established by Technical Resolution No. 18 and Technical Resolution No. 21. This implies identifying and determining the current values of assets and liabilities acquired, a process requiring complex judgments and significant estimations.

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 2:

(Continued)

As regards the acquisition of BrasilAgro’s shares and the increase in the interest in Cactus during the current year, the Company is in the process of analyzing the current values of the assets and liabilities acquired identifiable as provided by Technical Resolution No. 21, point 1.3.1.

3. Goodwill

•

Goodwill

The goodwill represents the excess acquisition cost above the market value of net assets from those subsidiaries acquired at the equity percentage.

The residual value of the goodwill generated by acquiring interests in the companies has been disclosed in the Investments on controlled and related companies account (Schedule C).

Upon defining the useful life, the following factors have been considered: (i) nature and expected life of acquired businesses; (ii) stability and expected life of the respective industry branch; (iii) effects that the obsolescence of products, changes in demand and other economic factors may have on the acquired business; (iv) feasibility of maintaining the required disbursement value to obtain future economic benefits from the acquired business and (v) the control period over the acquired business and legal or contractual provisions that may affect its useful life.

Based on these factors, the Company has estimated that it is not possible to estimate the specific useful life for the goodwill generated by applying the “acquisition method” provided by Technical Resolution No. 18, and it has therefore determined that they shall have an undefined useful life.

The values thus obtained, do not exceed their respective estimated recoverable values at the end of the period/fiscal year.

•

Negative goodwill

The negative goodwill represents the excess market value of net assets from those subsidiaries acquired at the equity percentage above the acquisition cost. Negative goodwill has been restated following the guidelines mentioned in Note 1.b. to the financial statements and amortization has been calculated by the straight-line method based on estimated useful life, considering the weighted-average of the reaming useful life of identifiable assets acquired subject to depreciation, or in an accelerated way the proporcional parts corresponds to the negative goodwill, when the subsidiaries required disposed theirs issues.

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 2:

(Continued)

The useful lives of negative goodwill generated by IRSA acquisition was established between 20 to 30 years. The useful life for the negative goodwill generated by the acquisition of an interest in BrasilAgro was established at 5 years.

Amortizations have been classified in the account “Gain on equity investees” in the Statement of Income.

The residual value of the goodwill generated by acquiring interests in the companies has been disclosed in the Investments on controlled and related companies account (Schedule C).

Other investments

•

Investments in debt securities

IRSA and APSA’s non-convertible notes were valued based on the best estimate of the discounted amount receivable, applying the corresponding internal rate of return estimated at the time of incorporation to assets.

Property and Equipment

Property and equipment were valued at its acquisition cost, restated as mentioned in Note 1.b., less accumulated depreciation.

Depreciations have been calculated by the straight-line method based on the estimated useful lives of each asset, applying annual rates sufficient to extinguish their values at the end of its useful life.

The value of these assets does not exceed its economic use value as of period/fiscal year-end.

Intangible assets

Pre-operating expenses resulted from developing new activities in Bolivia and Paraguay. Such expenses were valued at acquisition cost less the respective accumulated amortization, as disclosed in Schedule B.

Amortizations were calculated through the straight-line method on the basis of an estimated useful life of five years.

Amortizations were classified in “Gain on equity investees” in the statement of income.

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 2:

(Continued)

The company, through the merger into ANTA mentioned in Note 14.2. among other goods and rights, has the concession planning and execution of an integral development project including: biological, economical and social issues on several real estates located in the department of Anta, province of Salta. The company is also duty authorized to perform a significant agricultural, cattle farming and forestry project which was awarded under Resolution No. 190/99 and Bidding No. 58/98 of the Ministry of Production and Employment.

Such concession was granted for a 35 year term with a postponement option of 29 additional years by ANTA.

The amortization of the concession right of ANTA is calculated according to its duration, whose remaining time is 29 years.

On July 2, 2008, a memorandum of understanding was executed by which the concession agreement mentioned in Note 21 was renegotiated.

The value of these assets does not exceed their estimated recoverable value at the end of the period/fiscal year.

Provisions

•

Allowance for doubtful accounts: this allowance was booked on the basis of a case-by-case analysis of the receivables portfolio recoverability.

•

Provision for lawsuits and contingencies: it was booked to cover possible labor and commercial contingencies and other risks that could generate obligations for the Company. The Company’s external legal counsel’s opinion was taken into account to estimate the amounts and possibility of occurrence. In addition, the insurance purchased by the Company has also been taken into account.

The evolution of provisions during the period/fiscal year is detailed in Schedule E.

At the date of issuance of these financial statements, the Company´s Management understands that there are no elements to foresee other potential contingencies having a negative impact in these financial statements.

Shareholders’ equity

Amounts of shareholders’ equity accounts have been restated following the guidelines detailed in Note 1.b.

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 2:

(Continued)

The “Capital Stock” account has been stated at historical nominal value. The difference between the value restated in constant pesos and the historical nominal value has been disclosed in the account “inflation adjustment to capital stock” in the shareholders’ equity.

Treasury stock

The acquisition cost of treasury stock has been debited from the account “Reserve for new developments” as provided by sec. 220, subsec. 2, Law No. 19,550.

Likewise, the “Common stock account” was debited for the face value of purchased shares and the “Inflation adjustment of common stock account”, for the proportional portion of the adjustment for inflation related to the shares acquired. In turn, the accounts “Treasury stock” and “Inflation adjustment of treasury stock” were respectively credited (Note 19).

Paid-in capital

•

Subsidiaries, related companies Law No. 19,550 Section 33 and related parties: Increases or decreases of the equity value of investment in IRSA generated on the basis of changes in their shareholders’ equity, arising from transactions of shareholders different from the Company and its subsidiaries, were included in this caption as established in caption 9 second part of Technical Resolution No. 17 of the FACPCE and Resolution CD No. 243/01 of the CPCECABA.

•

Options issued: the value of options issued by the Company, which was determined as provided in Note 16, has been allocated to the account Paid-in Capital.

Conversion of financial statements of companies located abroad

•

Not integrated companies

Assets and liabilities of the companies located abroad were converted to Argentine pesos using the exchange rate effective as of the period/year-end. Income statement accounts have been converted by using the average exchange rate for the period. Exchange differences have been appropriated to the shareholders’ equity in the “Translation differences” account.

BrasilAgro and the indirect interests in companies located in Bolivia and Paraguay are considered to be not integrated.

100

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 2:

(Continued)

The foreign companies previously mentioned have been classified as not integrated to the Company’s operations because they are engaged in agricultural exploitation, developing its operations entirely carried out abroad, with a considerable degree of autonomy from the Company.

Likewise, the conversion difference resulting from our indirect interest in foreign companies through our subsidiary IRSA is included.

•

Integrated companies

Assests and liabilities denominated in foreign-currency at the closing date of the company located abroad were converted into Argentine pesos using the exchange rate prevailing as of the period/year-end. Assets and liabilities denominated in foreign currency prior-year end of the company located abroad were converted into Argentine pesos using the respective historical exchange rates. Income statement accounts have been converted by using the average exchange rate for the period. Translation differences have been allocated to the “Gain on equity investees” from the Statements of Income.

The indirect interest in the company located in Uruguay is considered to be integrated.

The foreign company previously mentioned has been qualified as integrated with the Company transactions because it conducts its operations with a considerable degree of dependence and they are financed by funds from the Company.

Results for the period

Production income has been determined based on quantitative and qualitative changes of stocks subject to the biological transformation process measured from the beginning of the year to the closing date of these financial statements.

Grain, cattle and milk production cost is calculated to reflect production income is reflected in Schedule F.2.

The sales revenues are booked when the products are liquidated by the customers.

Cost of sales is determined considering the NRV of products in the month in which they are sold.

101

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 2:

(Continued)

The adjustment for valuation to NRV of grain has been calculated as the difference between the production value at NRV upon harvesting and the value of the same production valued at NRV as of the closing date of these financial statements.

Unrealized gain (loss) on inventories – Beef Cattle is disclosed in a line of the Statements of Income and Schedules F.1 and F.2.

The results generated by futures and options on the Futures Market are recognized under “Unrealized gain (loss) on inventories – Crops, raw materials and MAT” on the Statements of Income. The results of closed positions are recognized as a difference between the exercise price and their close year; and the results of open positions are recognized at the period-end, as the difference between their exercise price and the market price for futures, and as a difference between the exercise premium and the market price for options in the same condition.

The charges for consumption of assets were determined based on the values of such assets. The rest of the results for the period is disclosed at incurred cost.

Financial results, segregated into that generated by assets and by liabilities, are disclosed in the Statements of Income.

Income tax

The Company has recognized the income tax on the basis of the deferred tax method, thus considering temporary differences between registration of assets and liabilities for accounting and tax purposes. The principal temporary differences originate in the valuation of beef cattle and the sale and replacement of fixed assets.

In order to determine deferred assets and liabilities the tax rate expected to be in effect at the temporary of reversal or use has been applied on the temporary differences identified and tax loss carryforwards, considering the laws enacted as of the date of issuance of these financial statements (35%) (Note 6).

Assets and liabilities generated by the application of the deferred tax method have been valued at face value.

102

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 2:

(Continued)

Minimum presumed income tax

The Company determines the minimum presumed income tax applying the prevailing rate of 1% on computable assets at period-end. This tax is supplementary to the income tax. The Company’s tax liability for each period/year will be the higher of these two taxes.

However, if the minimum presumed income tax exceeds the income tax in any fiscal year, such excess may be computed as payment on account of the income tax that may be payable in any of the following 10 (ten) fiscal years.

The Company has recognized the minimum presumed income tax accrued in the period and paid in previous years as a credit, because it considers that it may be computed as payment on account of income tax in future periods.

Issuance of debt expenses

Expenses incurred in connection with the issuance of debt are amortized over the life of the related issuances. In the case of redemption or conversion of these notes, the related expenses are amortized using the accelerated amortization method.

Amortizations have been recorded under “Financial results, net” in the Statements of Income as a greater financing expense.

NOTE 3:

COMMON AND TREASURY STOCK

The activity in the Company’s shares during the last three financial years was as follows:


	Authorized Face value		Subscribed Face value		Paid-in Face value
Common and treasury stock as of June 30, 2008		501,531,865		501,531,865		501,531,865
Exercise of Options (Note 16) - Fiscal Year 2009		6,745		6,745		6,745
Exercise of Options (Note 16) - Fiscal Year 2010		21,898		21,898		21,898
Exercise of Options (Note 16) - Fiscal Year 2011		552		552		552

Common and treasury stock as of March 31, 2011 (1)		501,561,060		501,561,060		501,561,060

(1)	As of March 31, 2011, there are 5,000,754 own treasury shares that were acquired during the fiscal year 2009.

As of March 31, 2011, the capital authorized to be publicly offered is formed of 501,561,060 common, book-entry shares of Ps. 1 par value each and entitled to one vote per share.

103

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

DERIVATIVE FINANCIAL INSTRUMENTS

As of March 31, 2011 the Company had arranged futures and options on the Futures Market as follows:


Cereal / Currency	Tons		Margins			Premium paid or (collected)			Premium at fair value			Gain (loss) for valuation at period-end at fair value
Futures
Purchase
Rice		720		—			—			—			163
Sell
Corn		12,500		366			—			—			(2,267	)
Soybean		2,900		116			—			—			(771	)
US$				—			—			—			(a) 597
Options
Sell Put
Corn		7,620		—			407			255			(152	)
Soybean		17,000		(19	)		651			348			(303	)
Sell Call
Soybean		8,200		330			(235	)		(2,356	)		(2,121	)
Purchase Put
Corn		8,890		—			(109	)		(68	)		41
Swap
Interes rate		—		—			—			—			(b) 524

Total		57,830		793			714			(1,821	)		(4,289	)

(a)

Corresponds to: a future sale of 35,3 million US$ dollars consists of: (i) US$ 12.8 million with Standard Bank maturing on April 29, 2011, (ii) US$ 10.1 million, US$ 10.2 million and US$ 2.2 million with Banco Santander Rio maturing on April 11, 2011, April 12, 2011 and April 14, 2011, respectively. The profit generated by March 31, 2011 is included in the financial results of the Income Statement.

(b)

Corresponds to an interest rate swap for a notional amount of Ps. 80 million structured as follows: (i) Ps. 30 million entered into with Standard Bank due on December 10, 2012 whereby the Company agrees to pay a fixed rate of 14% and the counterparty the Badlar variable rate; (ii) Ps. 20 million entered into with Standard Bank due on December 10, 2012 whereby the Company agrees to pay a fixed rate of 14.1% and the counterparty the Badlar variable rate; (iii) Ps. 30 million entered into with Banco Santander Río due on December 10, 2012 whereby the Company agrees to pay a fixed rate of 14.25% and the counterparty the Badlar variable rate.

104

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 4:

(Continued)

As of March 31, 2010 the Company had arranged futures and options on the Futures Market as follows:


Cereal / Currency	Tons		Margins		Premium paid or (collected)			Premium at fair value			Gain (loss) for valuation at period-end at fair value
Futures
Purchase
Wheat		5,000		134		—			—			(149	)
US$		—		—								(a) (1,724)
Sell
Corn		8,700		234		—			—			272
Soybean		28,200		1,082		—			—			1,212
US$		—		—		—			—			(b) 4,944
Options
Purchase Call
Soybean		5,440				443			1			(442	)
Corn		2,540				85			—			(85	)
Sell Call
Soybean		9,400		140		(278	)		(23	)		255

Total		59,280		1,590		250			(22	)		4,283

(a)

Corresponds to a future to purchase US$ 25.9 million composed: (i) US$ 10.3 million and US$ 2.7 million in Standard Bank with mature date on May 31, 2010 y July 30, 2010 respectively; (ii) US$ 2 million and US$ 3 million in Banco Itaú with mature date on April 30, 2010 y May 31, 2010 respectively; (iii) US$ 3.5 million and US$ 4.4 million in Banco Santander Río with mature date on April 30, 2010 y June 30, 2010 respectively. Losses generated as of March 31, 2010 are included in Financial Results, net of the Statement of Income.

(b)

Corresponds to a future to sell US$ 25.9 million composed: (i) US$ 3.5 million, two of US$ 2.7 million and US$ 2.7 million in Standard Bank with mature date on April 30, 2010, May 31, 2010 and May 31, 2010 respectively; (ii) US$ 2 million and US$ 7 million in Banco Itaú with mature date el April 30, 2010 and May 31, 2010 respectively; and (iii) US$ 1 million and US$ 4.3 million in Banco Santander Río with mature date on May 31, 2010 and June 30 2010 respectively. Gain generated as of March 31, 2010 is included in Financial Results, net of the Statement of Income

Crops: As of March 31, 2011 and 2010 the Company recognized results of Ps. 27,466 (loss) and Ps. 858 (gain), respectively, to reflect the closing of the transactions carried out during such periods. This results are disclosed as part of the line “Unrealized gain (loss) on inventories – Crops, raw materials and MAT” in the Statements of Income.

US Dollars: As of March 31, 2011 and 2010 the Company recognized results Ps. 2,005 (gain) and Ps. 7,867 (gain), respectively, for those transactions carried out during such periods. These results are disclosed as part of the line “Financial Results – Generated by assets – Other unrealized gain” in the Statements of Income.

105

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 5:

MANAGEMENT AGREEMENT

The Company signed a management agreement with Dolphin Fund Management S.A. (now called Consultores Asset Management S.A.), for consulting in relation to livestock and farming activities, serving as an intermediary in transactions and investment consulting in relation to security investments.

In exchange for its services, such company will receive a payment equivalent to 10% of the net income resulting from the annual or the special financial statements.

Since certain directors of Cresud are also executive directors and shareholders of Dolphin Fund Management S.A., the above-mentioned agreement was approved by the Extraordinary Shareholders’ Meeting held on October 25, 1994, in compliance with Section No. 271 of Law No. 19,550.

In November 2003, Dolphin Fund Management S.A. was divided into two companies: Consultores Asset Management S.A. and Dolphin Fund Management S.A. As from that moment the management agreement is held by Consultores Asset Management S.A.

The financial statements as of March 31, 2011 and 2010 include a charge in the Statements of Income by this concept for Ps. 15,751 and Ps. 20,446 respectively.

NOTE 6:

INCOME TAX – DEFERRED TAX

The evolution and composition of deferred tax assets and liabilities, during the nine-month period ended March 31, 2011 are detailed in the following table:


	Cumulative tax loss carry- forwards		Cash in foreign currency			Investments		Fixed Assets			Inventories			Provisions		Total
Balance as of June 30, 2010		13,365		(38	)		—		(49,091	)		(42,214	)		4,548		(73,430	)
Incorporated by merger		638		496			—		161			—			—		1,295
Gain (loss) recognized		14,669		(111	)		—		(19,058	)		(17,198	)		640		(21,058	)

Balance as of March 31, 2011		28,672		347			—		(67,988	)		(59,412	)		5,188		(93,193	)

As of March 31, 2011, net liabilities at period-end as per the information included in the preceding table amount to Ps. 93,193.

106

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 6:

(Continued)

The evolution and composition of deferred tax assets and liabilities, during the fiscal year ended June 30, 2010 are detailed in the following table:


	Cumulative tax loss carry- forwards		Cash in foreign currency			Investments			Fixed Assets			Inventories			Provisions		Total
Balance as of June 30,2009		261		(437	)		—			(43,603	)		(21,795	)		302		(65,272	)
Incorporated by merger		—		—			(8	)		(95	)		(929	)		510		(522	)
Gain (loss) recognized		13,104		399			8			(5,393	)		(19,490	)		3,736		(7,636	)

Balance as of June 30,2010		13,365		(38	)		—			(49,091	)		(42,214	)		4,548		(73,430	)


As of June 30, 2010, net liabilities at year-end as per the information included in the preceding tables amount to Ps. 73,430. The Company in accordance with the accounting standards has decided not to recognize the deferred income tax liability generated by the effect of the adjustment for inflation on the fixed assets and other non-monetary assets, which as of the end of the period amounts to Ps. 78,742 The above-mentioned liability would probably be reverted according to the detail that follows:

Term	Total
1 year		4,688
2 years		5,120
3 years		4,089
Over 3 years		54,152
No term		10,693
Total		78,742

Cumulative tax loss carryforwards recorded by the Company which are pending of utilization at present period-end amount to approximately Ps. 81,916 and may be offset by taxable income of future years, as follows:

Origination year	Amount		Expiration year
2010		36,247		2015
2011		45,669		2016

Minimum presumed income tax credits booked by the Company, which were pending to use as of the present period-end, amount to Ps. 38,007 and under current regulations, they may be offset by taxable income for future years according to the following detail:

107

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 6:

(Continued)


Origination year	Amount		Expiration Year
2005		2		2015
2006		1,964		2016
2007		5,401		2017
2008		10,796		2018
2009		6,247		2019
2010		7,535		2020
2011		6,062		2021

Below there is a reconciliation between the income tax recognized and that which would result from applying the prevailing tax rate on the Net Income for accounting purposes:


Description	March 31, 2011			March 31, 2010
Net income before income tax		162,820			186,071
Tax rate		35	%		35	%

Net income at tax rate		56,987			65,125
Permanent differences at tax rate:
Inflation adjustment		1,995			91
Donations		79			8
Results from equity investees companies		(40,612	)		(66,011	)
Shareholders´ personal asset tax		2,415			2,158
Miscellaneous permanent differences		194			43

Income tax expense		21,058			1,414

During this period the income tax rate was 35%.

A reconciliation between the tax recognized and that which was determined tax for fiscal purposes is as follows:


Description	March 31, 2011			March 31, 2010
Total income tax expense		21,058			1,414
Transitory differences
- Additions
Cumulative tax loss carry-forwards		14,669			13,313
Cash in foreign currency		(111	)		457
Investments		—			8
Fixed assets		(19,058	)		207
Inventories		(17,198	)		(18,162	)
Provisions		640			2,763

Total income tax determined for fiscal purposes		—			—

108

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 7:

BALANCES AND RESULTS WITH SUBSIDIARIES, RELATED COMPANIES LAW No. 19,550 SECTION 33 AND RELATED PARTIES:

a.	Balances as of March 31, 2011 and 2010 and June 30, 2010 with subsidiaries, related companies and related parties are as follows:

As of March 31, 2011:


	Current Investments		Non-current Investments		Current Trade accounts receivables		Current Other receivables		Current Trade accounts payable			Short term debts			Long-term debt			Current Other liabilities
Acres (1)		—		—		669		4,808		—			—			—			—
Agro-Uranga S.A. (2)		—		—		195		327		(7	)		—			—			—
APSA (1)		621		11,261		—		9,453		—			—			—			(13,807	)
BrasilAgro (2)		—		—		16		—		—			—			—			—
Cactus (2)		—		—		198		—		(124	)		—			—			—
Consultores Asset Management S.A. (3)		—		—		—		—		—			—			—			(3,866	)
Cresca S.A. (4)		—		—		682		—		—			—			—			—
Cyrsa S.A. (4)		—		—		21		—		—			—			—			(46	)
Directors (3)		—		—		16		60		—			—			—			(293	)
EAASA (1)		—		—		415		24		—			—			—			—
Emprendimento Recoleta S.A. (1)		—		—		—		50		—			(44	)		(10,135	)		—
Estudio Zang, Bergel & Viñes (3)		—		—		—		—		—			—			—			(442	)
Fundación IRSA (3)		—		—		—		—		—			—			—			(1,073	)
FyO.Com (1)		—		—		21,641		—		(9,976	)		—			—			—
Helmir S.A. (4)		—		—		—		9,949		—			—			—			—
IRSA (1)		—		—		—		4,188		—			—			—			(7,197	)
Northagro S.A. (1)		—		—		—		317		—			—			—			—
Nuevas Fronteras S.A. (1)		—		—		—		—		—			—			—			(4	)
Ombú (1)		—		—		—		17,617		—			—			—			—
Panamerican Mall (1)		—		—		—		—		—			—			—			(5	)
Pluriagro S.A. (1)		—		—		—		317		—			—			—			—
Credits to employees (3)		—		—		—		1,089		—			—			—			—
Tarshop S. A. (1)		—		—		—		191		—			—			—			—
Yatay (1)		—		—		—		8,337		—			—			—			—
Yuchán (1)		—		—		—		9,426		—			—			—			—

Total		621		11,261		23,853		66,153		(9,807	)		(44	)		(10,135	)		(26,733	)

(1)	Direct or indirect subsidiary.

(2)	Related companies.

(3)	Related parties.

(4)	Direct or indirect common control.

109

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 7:

(Continued)

As of June 30, 2010:


	Current Investments		Non-current Investments		Current Trade accounts receivables		Current Other receivables		Non-Current Other receivables		Current Trade accounts payable			Current Other liabilities
Acres (1)		—		—		61		—		—		—			—
Agro-Uranga S.A. (2)		—		—		—		39		—		(3	)		—
Aguaribay (1)		—		—		—		—		131		—			—
ANTA (1)		—		—		1,574		—		—		(1	)		—
APSA (1)		215		9,847		—		16,230		—		(6,019	)		—
Banco Hipotecario S.A. (2)		—		—		—		—		—		(9	)		—
BrasilAgro (2)		—		—		—		—		—		(8	)		—
Cactus (2)		—		—		286		—		—		(542	)		—
Caldén (1)		—		—		—		—		131		—			—
Consultores Asset Management S.A. (3)		—		—		101		—		—		—			(7,267	)
Cresca S.A. (4)		—		—		364		—		—		—			—
Cyrsa S.A. (4)		—		—		21		—		—		(46	)		—
Directors (3)		—		—		—		—		—		—			(582	)
Estudio Zang, Bergel & Viñes (3)		—		—		—		—		—		(132	)		—
Fundación IRSA (3)		—		—		—		—		—		—			(1,073	)
FyO.Com (1)		—		—		28,645		24		—		(9,649	)		—
IGSA (1)		—		—		30		—		—		—			—
IRSA (1)		4,616		72,174		—		6,748		—		(3,604	)		(32,917	)
Itín (1)		—		—		—		—		2,926		—			—
Nuevas Fronteras S.A. (1)		—		—		—		—		—		(3	)		—
Ñandubay (1)		—		—		—		—		2,396		—			—
Ombú (1)		—		—		—		—		2,177		—			—
Credits to employees (3)		—		—		—		551		—		—			—
Tarshop S. A. (1)		—		—		678		—		—		—			—
Yatay (1)		—		—		—		—		3,857		—			—
Yuchán (1)		—		—		—		—		5,157		—			—

Total		4,831		82,021		31,760		23,592		16,775		(20,016	)		(41,839	)

(1)	Direct or indirect subsidiary.

(2)	Related companies.

(3)	Related parties.

(4)	Direct or indirect common control.

110

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 7:

(Continued)

As of March 31, 2010:


	Current investments		Non-current investments		Current Trade accounts receivables		Current Other receivables		Current Trade accounts payables			Current Other liabilities
Agrology S.A. (1)		—		—		142		—		—			—
Acres (1)		—		—		2,358		—		—			—
Agro-Uranga S.A. (2)		—		—		—		215		—			—
Aguaribay (1)		—		—		—		6,931		—			—
ANTA (1)		—		—		1,401		—		—			—
APSA (1)		594		9,363		3,360		1		—			—
BrasilAgro (2)		—		—		53		—		—			—
Cactus (2)		—		—		96		11		—			—
Caldén (1)		—		—		—		6,938		—			—
Consultores Asset Management S.A. (3)		—		—		—		—		—			(11,421	)
Cresca S.A. (4)		—		—		39		—		—			—
Cyrsa S.A. (4)		—		—		—		—		(26	)		—
Directors (3)		—		—		—		—		—			(158	)
Estudio Zang, Bergel & Viñes (3)		—		—		—		—		(693	)		—
Fibesa S.A. (1)		—		—		33		—		—			—
Fundación IRSA (3)		—		—		—		—		—			(1,073	)
FyO.Com (1)		—		—		10,476		24		—			—
Helmir S.A. (1)		—		—		23		—		—			—
IRSA (1)		1,821		69,034		3,468		—		—			(32,012	)
Itín (1)		—		—		—		4,794		—			—
Ñandubay (1)		—		—		—		4,268		—			—
Ombú (1)		—		—		—		5,212		—			—
Credits to employees (3)		—		—		—		301		—			—
Tarshop S.A. (1)		—		—		628		—		—			—
Yatay (1)		—		—		—		6,234		—			—
Yuchán (1)		—		—		—		5,732		—			—

Total		2,415		78,397		22,077		40,661		(719	)		(44,664	)

(1)	Direct or indirect subsidiary.

(2)	Related companies.

(3)	Related parties.

(4)	Direct or indirect common control.

111

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 7:

(Continued)

b.	Gain and losses provided by subsidiaries, related companies and related parties corresponding to the periods ended March 31, 2011 and 2010 are as follows:

As of March 31, 2011:


	Sales an fees for shared services		Fees			Beef cattle expenses			Interest income(losses)			Administration services		Others
Acres (1)		—		—			—			83			598		—
Agro-Uranga S.A. (2)		—		—			—			—			—		989
APSA (1)		28,824		—			—			1,176			—		—
Cactus (2)		—		—			(1,661	)		—			74		12
Consultores Asset Management S.A. (3)		—		(15,751	)		—			—			—		—
Cresca S.A. (4)		—		—			—			—			984		—
EAASA (1)		—		—			—			—			—		602
Emprendimiento Recoleta S.A. (3)		—		—			—			(44	)		—		—
Estudio Zang, Bergel & Viñes (3)		—		(1,453	)		—			—			—		—
FyO.Com (1)		—		—			—			51			—		1,319
Helmir S.A. (1)		—		—			—			119			—		—
Inversiones Financieras del Sur (3)		—		—			—			93			—		—
IRSA (1)		12,932		—			—			4,173			—		(511	)
Ombú (1)		—		—			—			790			—		—
Credits to employees (3)		—		—			—			9			—		—
Tarshop S.A. (1)		482		—			—			—			—		—
Yatay (1)		—		—			—			394			—		—
Yuchán (1)		—		—			—			462			—		—

Total		42,238		(17,204	)		(1,661	)		7,306			1,656		2,411

(1)	Direct or indirect subsidiaries.

(2)	Related companies.

(3)	Related parties.

(4)	Direct or indirect common control.

As of March 31, 2010:


	Sales an fees for shared services		Salaries and wages			Fees			Beef cattle expenses			Interest income(losses)		Administration services		Others
Aguaribay (1)		—		—			—			—			97		—		—
ANTA (1)		—		—			—			—			—		—		(3,529	)
APSA (1)		8,337		—			—			—			1,133		—		2,582
Cactus (2)		—		—			—			(1,199	)		9		111		7
Caldén (1)		—		—			—			—			97		—		—
Consultores Asset Management S.A. (3)		—		—			(20,446	)		—			—		—		—
Cresca S.A. (4)		—		—			—			—			—		1,082		—
Directors (3)		—		(428	)		—			—			—		—		—
Estudio Zang, Bergel & Viñes (3)		—		—			(425	)		—			—		—		—
FyO.Com (1)		—		—			—			—			249		—		(303	)
IRSA (1)		6,813		—			—			—			7,130		—		(790	)
Itín (1)		—		—			—			—			67		—		—
Ñandubay (1)		—		—			—			—			60		—		—
Ombú (1)		—		—			—			—			73		—		—
Credits to employees (3)		—		—			—			—			7		—		—
Tarshop S.A. (1)		350		—			—			—			—		—		—
Yatay (1)		—		—			—			—			87		—		—
Yuchán (1)		—		—			—			—			80		—		—

Total		15,500		(428	)		(20,871	)		(1,199	)		9,089		1,193		(2,033	)

(1)	Direct or indirect subsidiaries.

(2)	Related companies.

(3)	Related parties.

(4)	Direct or indirect common control.

112

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

DETAILS OF BALANCE SHEET AND STATEMENT OF INCOME ACCOUNTS

As of March 31, 2011 and 2010, and June 30, 2010 the principal items of the financial statements are as follows:

Cash and banks

The breakdown for this item is as follows:


	March 31, 2011		June 30, 2010		March 31, 2010
Cash in local currency		170		110		113
Cash in foreign currency (Schedule G)		34		55		63
Local currency checking account		9,366		2,884		2,113
Foreign currency checking account (Schedule G)		10,605		477		785
Local currency saving account		213		125		102
Foreign currency saving account (Schedule G)		218		159		689
Checks to be deposited		—		—		293

		20,606		3,810		4,158

Investments

The breakdown for this item is as follows:


	March 31, 2011		June 30, 2010		March 31, 2010
Temporary investments
Temporary investments (Schedules C and G)		6,936		24,631		6,856

		6,936		24,631		6,856

Long term investments in other companies
Investments on investees (Note 13 and Schedule C)		1,966,260		1,800,764		1,762,590

		1,966,260		1,800,764		1,762,590

Other investments
Other investments (Schedules C and G)		11,282		82,042		78,418

		11,282		82,042		78,418

Trade accounts receivable, net

The breakdown for this item is as follows:


	March 31, 2011			June 30, 2010			March 31, 2010
Current
Trade accounts receivable (Schedule G)		37,055			44,010			27,185
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties (Note 7 and Schedule G)		23,853			31,760			22,077
Trade accounts receivable – real estate (Schedule G)		—			2,821			7,642
Trade accounts receivable under legal proceedings		322			341			341
Checks to be deposited		326			7,190			—
Less:
Allowance for doubtful accounts (Schedule E)		(617	)		(630	)		(660	)

		60,939			85,492			56,585

113

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

Other Receivables

The breakdown for this item is as follows:


	March 31, 2011		June 30, 2010		March 31, 2010
Current
VAT receivables, net		26,074		15,506		44,605
Income tax credit and advances		7,126		6,444		4,762
Prepaid leases		23		4,823		124
Prepaid expenses		4,302		3,816		1,041
Guarantee deposits (Note 4 and Schedule G)		793		2,611		1,590
Subsidiaries, related companies Law No. 19,550
Section 33 and related parties (Note 7 and
Schedule G)		66,153		23,592		40,661
Operations to liquidate		597		512		4,945
Gross sales tax credit		3,036		469		375
Premiums paid (Note 4 and Schedule G)		603		—		1
Derivative financial instruments (Nota 4)		524		—		—
Others		3,481		4,143		1,864

		112,712		61,916		99,968

Non-current
Minimum presumed income tax		38,007		30,763		29,013
Subsidiaries, related companies Law No. 19,550
Section 33 and related parties (Note 7)		—		16,775		—
VAT receivables, net		15,831		12,676		1,898

		53,838		60,214		30,911

Inventories

The breakdown for this item is as follows:


	March 31, 2011		June 30, 2010		March 31, 2010
Current
Unharvested crops		113,248		11,166		71,447
Materials and others		29,257		28,222		23,535
Beef cattle		22,254		16,053		30,927
Crops		48,290		41,566		18,474
Seeds and fodder		2,692		3,447		2,183

		215,741		100,454		146,566

Non-Current
Beef cattle		196,274		141,602		125,847

		196,274		141,602		125,847

114

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

Trade accounts payable

The breakdown for this item is as follows:


	March 31, 2011		June 30, 2010		March 31, 2010
Current
Suppliers (Schedule G)		40,877		40,280		38,465
Provisions for inputs and other expenses (Schedule G)		14,250		20,503		15,420
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties (Note 7 and Schedule G )		9,807		20,016		719
Provision for harvest expenses		3,589		2,327		1,455

		68,523		83,126		56,059

Short-term debts

The breakdown for this item is as follows:


	March 31, 2011			June 30, 2010			March 31, 2010
Current
Bank loans (Schedule G)		149,104			118,123			182,123
Interests payable – Bank loans (Schedule G)		1,581			2,054			2,468
Bank overdrafts		155,258			292,781			203,849
Interests payable – Bank overdrafts		3,355			1,029			2,250
Non-convertible Notes Class I (Note 20)		—			—			15,500
Non-convertible Notes Class II (Note 20 and Schedule G)		—			35,251			34,775
Non-convertible Notes Class III (Note 20)		11,883			—			—
Non-convertible Notes Class IV (Note 20 and Schedule G)		18,083			—			—
Interest payable-Non-convertible Notes (Note 7 and 20 and Schedule G)		3,728			153			258
Expenses of Non-convertible Notes issuance (Note 20)		(1,557	)		(80	)		(246	)

		341,435			449,311			440,977

Non Current
Non-convertible Notes Class III (Note 20)		23,767			—			—
Non-convertible Notes Class IV (Note 20 and Schedule G)		54,249			—			—
Non-convertible Notes Class V (Note 20)		106,876			—			—
Non.convertible Notes Class VI (Note 7 and 20 and Schedule G)		141,274			—			—
Non-convertible Notes Class VII (Note 20 and Schedule G)		8,430			—			—
Expenses of Non-convertible Notes issuance (Note 20)		(962	)

		333,634			—			—

Salaries and social security payable

The breakdown for this item is as follows:


	March 31, 2011		June 30, 2010		March 31, 2010
Provision for vacations and annual bonus		16,230		20,467		11,712
Social security payable		2,254		2,683		1,857
Salaries payable		128		—		—
Health care payable		474		180		208

		19,086		23,330		13,777

115

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

Taxes payable

The breakdown for this item is as follows:


	March 31, 2011		June 30, 2010		March 31, 2010
Current
Minimum presumed income tax, net (Note 2.u.)		3,164		2,530		780
Gross sale tax payable		95		921		391
Taxes withheld for income tax		421		799		31
Tax on shareholders´ personal assets		7,205		305		6,471
Others		195		104		84

		11,080		4,659		7,757

Non-Current
Deferred income tax (Note 6)		93,193		73,430		67,208
Moratorium Tax on personal shareholder´s assets		2,163		2,392		2,468

		95,356		75,822		69,676

Customer Advances

The breakdown for this item is as follows:

March 31,
2011

June 30,
2010

March 31,
2010

Current

Customer advances (Schedule G)

—

1,939

Other liabilities

The breakdown for this item is as follows:


	March 31, 2011		June 30, 2010		March 31, 2010
Current
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties. (Note 7 and Schedule G)		22,867		34,572		33,243
Management fee provision (Notes 5 and 7)		3,866		7,267		11,421
Premiums collected (Note 4 and Schedule G)		2,424		595		23
Operations to liquidate		—		178		—
Others		54		—		1,740

		29,211		42,612		46,427

Non-Current
Advances for concession rights (Note 13.1.a. and Schedule G)		3,299		3,166		—
Equity interest in related companies (Schedule C)		2,128		—		—
Others		144		—		—

		5,571		3,166		—

116

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8:

(Continued)

Financial results


	March 31, 2011 Gain (loss)			March 31, 2010 Gain (loss)
Generated by assets
Interest Income
Interest income		8,339			11,103
Interest for discount of assets		401			1,946

		8,740			13,049

Other unrealized gain
Gain on hedging		2,005			7,867
Financial result of IRSA´s and APSA´s non-convertible notes		4,126			6,421
Tax on bank account operations		(5,961	)		(3,826	)
Unrealized gain and results of securities operations		91			9

		261			10,471

Generated by liabilities
Interest loss
Interest of bank loans and other liabilities		(27,818	)		(26,157	)
Interest of non-convertible notes		(9,534	)		(2,522	)

		(37,352	)		(28,679	)

117

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 8: (Continued)

Gain on equity investees

The breakdown for this item is as follows:


	March 31, 2011 Gain/(loss)			March 31, 2010 Gain/(loss)
IRSA
- Result equity method		112,918			150,658
- Amortization of negative goodwill		22,197			35,274
- Elimination of amortization of IRSA´s and APSA´s non- convertible notes issuance expenses (1)		1,288			179
- Accrued financial results of IRSA´s and APSA´s non-convertible notes (1)		(4,059	)		(6,421	)
- Elimination of exchange difference of IRSA´s and APSA´s non-convertible notes (1)		159			450
- Amortization of higher values		(12,734	)		(11,263	)
BrasilAgro
- Result equity method		(6,119	)		645
- Amortization of negative goodwill		4,975			3,644
Cactus
- Result equity method		(20,196	)		(2,483	)
Agro-Uranga S.A.
- Result equity method		4,398			3,092
IGSA
- Result equity method		—			(44	)
ANTA
- Result equity method		—			(1,436	)
- Amortization of concession right		—			(524	)
- Amortization of three plantations (wood)		—			(97	)
FyO.Com
- Result equity method		(727	)		(509	)
Agrology S.A.
- Result equity method		10,117			10,967
- Amortization of pre-operative expenses		(227	)		(227	)
EAASA
- Result equity method		(7	)		(24	)
Acres
- Result equity method		(57	)		—
Ombú
- Result equity method		(15	)		—
Yatay
- Result equity method		(9	)		—
Yuchán
- Result equity method		(12	)		—
Agrotech S.A.
- Result equity method		(25	)		—
Northagro S.A.
- Result equity method		22			—
Pluriagro S.A.
- Result equity method		22			—

		111,909			181,881

(1)	Corresponds to the acquisition of IRSA´s and APSA´s non-convertible notes acquired during the fiscal year ended June 30, 2009.

(2)	From July 1, 2010 takes effect the merger of Cresud with IGSA and Anta (see Note 14.2 to the financial statements).

118

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 9:

EARNINGS PER SHARE

Following is presented a reconciliation between the weighted average of outstanding shares of common stock and the diluted weighted average of shares of common stock. As of March 31, 2011 and 2010, it has been determined considering the possibility that the holders of options issued by the Company exercise them in shares of common stock of the Company (see Note 16).


	March 31, 2011		March 31, 2010
Weight average of outstanding shares of common stock		496,559,968		483,220,286
Diluted weighted average of shares of common stock		558,914,922		542,463,193

	March 31, 2011		March 31, 2010
Earnings for the calculation of basic earnings per share		141,762		184,657
Earnings for the calculation of diluted earnings per share		141,762		184,657

BASIC Earnings per share	March 31, 2011		March 31, 2010
Earnings		141,762		184,657
Number of shares		496,559,968		483,220,286
Earnings per share		0.29		0.38

DILUTED Earnings per share	March 31, 2011		March 31, 2010
Earnings		141,762		184,657
Number of shares		558,914,922		542,463,193
Earnings per share		0.25		0.34

119

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 10:

Assets based on their estimated collection term


Estimated collection term	Current and non-current investments						Trade accounts receivable						Other receivables
Estimated collection term	March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010
4th quarter 2010/2009		—		—		594		—		—		53,838		—		—		67,957
1st quarter 2011/2010		—		24,148		1,821		—		85,151		2,747		—		36,081		3,186
2nd quarter 2011/2010		—		215		—		—		—		—		—		7,354		15,788
3rd quarter 2011/2010		—		—		—		—		—		—				3,381		12,361
4th quarter 2011/2010		6,936		—		—		60,617		—		—		47,163		10,214		—
1st quarter 2012/2011		—		—		—		—		—		—		4,679		—		—
2nd quarter 2012/2011		—		—		—		—		—		—		44,743		16,775		—
3rd quarter 2012/2011		—		—		—		—		—		—		15,777		—		—
3rd quarter 2017/2016		—		72,174		69,034		—		—		—		—		—		—
4th quarter 2017/2016		11,261		9,847		9,363		—		—		—		—		—		—
With no stated current term		—		268		4,441		322		341		—		350		4,886		676
With no stated non-current term		21		21		21		—		—		—		53,838		43,439		30,911

Total		18,218		106,673		85,274		60,939		85,492		56,585		166,550		122,130		130,879

Assets classified according to interest rate that they accrue


Interest rate that they accrue	Current and non-current investments						Trade accounts receivable						Other receivables
Interest rate that they accrue	March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010
At fixed interest rate		11,261		82,021		78,397		—		2,696		7,324		10,919		551		301
At variable interest rate		6,315		19,800		4,441		—		—		—		39,812		16,509		44,545
Non-interest bearing		642		4,852		2,436		60,939		82,796		49,261		115,819		105,070		86,033

Total		18,218		106,673		85,274		60,939		85,492		56,585		166,550		122,130		130,879

120

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 10:

(Continued)

Liabilities based on their estimated payment term:


	Trade accounts payable						Short and long-term debts						Salaries and social security payable						Taxes payable						Customer advances						Other liabilities						Provisions
Estimated Payment term	March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010
4th quarter 2010/2009		—		—		56,059		—		—		178,956		—		—		4,170		—		—		6,749		—		—		1,939		—		—		45,196		—		—		—
1st quarter 2011/2010		—		83,126		—		—		139,956		55,922		—		21,337		9,607		—		1,901		76		—		—		—		—		8,622		158		—		—		—
2nd quarter 2011/2010		—		—		—		—		—		—		—		—		—		—		2,606		856		—		—		—		—		33,990		1,073		—		—		—
3rd quarter 2011/2010		—		—		—		—		—		—		—		1,993		—		—		76		76		—		—		—		—		—		—		—		—		—
4th quarter 2011/2010		68,523		—		—		133,948		15,545		—		4,491		—		—		7,688		76		—		—		—		—		24,230		—		—		—		—		—
1st quarter 2012/2011		—		—		—		19,686		—		—		11,372		—		—		76		—		—		—		—		—		3,880		—		—		—		—		—
2nd quarter 2012/2011		—		—		—		14,594		—		—		—		—		—		3,240		—		—		—		—		—		1,087		—		—		—		—		—
3rd quarter 2012/2011		—		—		—		14,594		—		—		3,223		—		—		76		—		—		—		—		—		14		—		—		—		—		—
4th quarter 2012/2011		—		—		—		121,540		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
1st quarter 2013/2012		—		—		—		97,784		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
2nd quarter 2013/2012		—		—		—		70,711		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
3rd quarter 2013/2012								43,599						—						—						—						—						—
With no stated current term		—		—		—		158,613		293,810		206,099		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
With no stated non-current term		—		—		—		—		—		—		—		—		—		95,356		75,822		69,676		—		—		—		5,571		3,166		—		1,678		1,768		1,791

Total		68,523		83,126		56,059		675,069		449,311		440,977		19,086		23,330		13,777		106,436		80,481		77,433		—		—		1,939		34,782		45,778		46,427		1,678		1,768		1,791

Liabilities classified according to interest rate that they accrue:


	Trade accounts payable						Short and long-term debts						Salaries and social security payable						Taxes payable						Customer Advances						Other liabilities						Provisions
Interest rate that they accrue	March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010		March 31, 2011		June 30, 2010		March 31, 2010
At fixed interest rate		—		—		—		478,963		415,413		375,753		—		—		—		—		—		—		—		—		—		—		31,448		31,024		—		—		—
At variable interest rate		—		—		—		187,442		30,662		60,248		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Non-interest bearing		68,523		83,126		56,059		8,664		3,236		4,976		19,086		23,330		13,777		106,436		80,481		77,433		—		—		1,939		34,782		14,330		15,403		1,678		1,768		1,791

Total		68,523		83,126		56,059		675,069		449,311		440,977		19,086		23,330		13,777		106,436		80,481		77,433		—		—		1,939		34,782		45,778		46,427		1,678		1,768		1,791

121

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 11:

RESTRICTIONS ON DISTRIBUTION OF PROFITS

In accordance with the Argentine Corporations Law, the Company’s by-laws and Resolution N° 368/2001 of the CNV, 5% of the net and realized profit for the fiscal year plus (less) prior fiscal year adjustments must be appropriated by resolution of shareholders to a legal reserve until such reserve equals 20% of the Company’s outstanding capital.

NOTE 12:

PURCHASE AND SALE OF FARMS

On May 30, 2008, IRSA signed, in commission, a purchase agreement with transfer of possession for the purchase of 115 hectares from an establishment located in the District of Lujan, Province of Buenos Aires. The transaction was agreed at US$ 3.0 million, paying the amount of US$ 1.2 million on such date.

On December 13, 2008, the Company was formalized as principal to the transaction, the balance of US$ 1.8 million was paid by this one by granting the title deed for such property, on March 11, 2010.

On September 30, 2009, the entire mortgage related to the purchase of the “San Pedro” farm was settled by paying US$ 1.8 million including interest.

On June 15, 2010, the title deed for the sale of the establishment “TALI SUMAJ” (12,701 has.) located in the Province of Catamarca was executed. The transaction was agreed upon at US$ 4.8 million, which was fully collected.

As to the closing date of these financial statements, the attachment-in-aid-of-execution in the case “EXAGRIND S.A. –Estancia San Rafael c/Tali Sumaj y Otros s/Daños y Perjuicios” (Exagrind S.A. – Estancia San Rafael vs. Tali Sumaj et al, in re: damages)”, had not been lifted (Note 17), the Company pledged to carry out all the formalities in its care to have the attachment lifted or replacement, assuming to carry out all obligations derived from the possible conviction, ensuing court expense and other procedural costs, once the ruling on the case is entered. For such purpose, the Company provided a performance bond to secure its obligations on behalf of the purchaser.

On September 3, 2010, the title deed and conveyance of ownership related to selling the establishment “La Juanita” located in the district of Trenque Lauquen, Province of Buenos Aires, with a surface of 4,302 hectares, was executed. The transaction was agreed upon at US$ 18.0 million of which: US$ 4.5 million was collected on August 6, 2010, upon executing the purchase agreement; US$ 12.5 million was collected upon executing the title deed and, the outstanding balance of US$ 1.0 million, secured by a first degree mortgage, was paid on January 4, 2010.

122

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 12:

(Continued)

Under this transaction, a loan for use agreement was executed in favor of the Company through January 10, 2011, on certain portion of the building, seeking to continue until such date with the productive activities carried out at the establishment.

On March 2, 2011, the Company acquired, in joint tenancy with Zander Express S.A., a rural property composed by thirteen plots of land located in the district of Perdriel, department of Luján de Cuyo, in the province of Mendoza. Following this acquisition, Cresud holds an undivided interest of 40% on each and every real estate asset whereas Zander Express S.A. holds the remaining 60%. The total price agreed upon for this transaction is US$ 4.0 million; as a result, Cresud has paid the amount of US$ 1.6 million which had already been paid before execution of the conveyance deed.

Additionally, the parties have entered into an assignment of rights and claims whereby Zander Express S.A. and Cresud assume and subrogate in any lititgation right or other rights, as well as claims, obligations and duties that the seller may have now or in the future in any judicial or administrative claim that may have been brought in relation to such real estate property.

NOTE 13:

INVESTMENTS IN COMPANIES

Cresud – International

BrasilAgro

The Company values the investment in BrasilAgro according to the equity method taking into account its significant influence that derives from its capacity to affect the operative and financial decisions considering their participation in the Board of Directors.

BrasilAgro was established in September 2005 to replicate the Cresud business in Brazil. The company’s activities consist mainly in four business segments while maintaining its focus on Real Estate Agriculture: (i) sugarcane (ii) grains and cotton (iii) forestry and (iv) livestock.

The BrasilAgro founder partners are Cresud S.A.C.I.F. y A., Cape Town LLC, Tarpon Investimentos S.A., Tarpon Agro LLC, Agro Managers S.A. and Agro Investment S.A.

The BrasilAgro shares started to be listed in the Novo Market of the Brazilian Stock Exchange (BOVESPA) under the symbol AGRO3 on May 2, 2006 in compliance with Brazil highest standards in terms of corporate governance.

123

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 13:

(Continued)

As compensation for having founded the Company, Cresud received at no cost 104,902 purchase options to subscribe additional shares of BrasilAgro during 15 years at the same price as that offered at the initial public offering of shares, that is to say Rs. 1,000 as adjusted by the IPCA inflation rate.

In addition, Cresud received with no cost a second series of options expiring in 2021 and totaling 104,902, which can only be exercised at the option of Cresud whenever a transfer of control occurs or an offer to purchase the BrasilAgro shares is received. The exercise price of these options will be the same price as the purchase offer referred to in the previous paragraph.

During fiscal year 2010, the Company acquired 2,395,400 shares issued by BrasilAgro and as a result of this acquisition, direct participation reached 23.24% at June 30, 2010.

Tarpon Agro LLC and Tarpon Investimentos S.A. (“Tarpon”)´s share purchase Agreement

On April 28, 2010 the Company entered into an agreement (“the agreement”) with Tarpon by which once certain conditions have been complied with, Tarpon will transfer for valuable consideration to Cresud S.A.C.I.F. y A. the following:

(a)

9,581,750 shares of common stock issued by BrasilAgro (either in shares or ADR’s, “Shares), and

(b)

64,000 first issue warrants from BrasilAgro and 64,000 second issue warrants from BrasilAgro.

Once the conditions established in the agreement have been complied with, the actual transfer of Tarpon’s shares and warrants to the Company will take place within 10 days since the implementation the ADR program that BrasilAgro is planning to launch.

The full price to be paid by the Company to Tarpon will be R$. 131.4 million, payable within 180 days since the actual transfer of the previously mentioned shares and warrants. Assuming that the price is paid off within the established term, it will not be subject to any monetary adjustment.

To ensure the payment of the transaction, a first degree pledge commitment for Tarpon was made on 9,581,750 common shares and 64,000 warrants of Series 1 BrasilAgro held by the Company.

124

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 13:

(Continued)

It should be noted that regardless of the departure of Tarpon from “BrasilAgro Project”, Mr. Elie Horn and Cape Town LLC have expressed their intentions to remain as shareholder of BrasilAgro with the company jointly.

Assignment of rights and pledge to sell shares

During last quarter of fiscal year 2010, an agreement was executed by which the Company assigned all equity and political rights related to 2,276,534 shares of BrasilAgro for two years. The agreement also provides a promise to sell, under which the assignee may at any time request the sale of BM&FBOVESPA’s shares or the transfer of shares on its behalf.

In consideration for granting such rights, the Company was paid a fixed value of US$ 0.8 million and additionally, in the event the assignee requested the sale or transfer of share, it should paid US$ 7.15 per share sold or transferred.

Executing two addendums to Agro LLC and Tarpon Investiments S.A. (“Tarpon”) shares purchase agreement

On October 20 and December 23, 2010, the Company and Tarpon executed an addendum to the shares purchase agreement dated on April 28, 2010, under wich the Company acquired 1,283,600 shares of common stock of BrasilAgro for an amount of Rs.19.7 millon, wich was paid on October 20, 2010. Also, it acquired 25,449 warrants from the First Issue and 25,449 from the Second Issue of BrasilAgro.

Additionally, on December 27, 2010, the Company received from its subsidiary Helmir S.A. 4,434,064 ordinary shares of BrasilAgro in consideration of a loan made by Cresud.

Consequently, Cresud is directly the owner of 17,019,830 shares or 29.13% of the Company’s outstanding stock as of March 31, 2011 (taking into account the concession of rights above-mentioned).

Likewise, due to the transaction, Cresud owns directly 130,531 BrasilAgro’s First Issuance Warrants and 130,351 BrasilAgro’s Second Issuance Warrants.

As of March 31, 2011 the Company registered an asset of Ps. 10,786 for the acquisition of these warrants (Schedule C).

125

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 13:

(Continued)

Agrology S.A.

Under a series of transactions that constituted for Cresud a new expansion in the agricultural and livestock business in South America as designed in their business plan, the Company, jointly with IGSA, made over previous fiscal year, irrevocable capital contributions in proportion to their holdings for an amount of Ps. 37,208 in Agrology S.A. which were capitalized on January 19, 2010. In addition, as of June 30, 2010 irrevocable contributions and receivables were capitalized for Ps. 29,249 in Agrology S.A., 97% on its own account and 3% on account of IGSA.

Cresud – Local

Cactus

On May 19, 2010, the Company acquired from Helmir S.A. 3,294,667 registered, non-endorsable shares of common stock with a face value of Ps. 1 each one, entitled to one vote per share of Cactus Argentina S.A., for an amount of US$ 1.6 million.

On June 30, 2010, the Company had settled the debt to Helmir S.A. for such transaction. With this acquisition, our direct interest in Cactus as of that date increased from 36% to 48%.

On December 23, 2010, Cresud made a capital contribution of Ps. 16 million to Cactus. Thus, our direct interest increased to 80% (Schedule C). On that same date, Cactus’s Shareholders Meeting approved the capitalization of this contribution as follows: capital increase of Ps. 6.9 million with an additional paid-in capital of Ps. 9.1 million.

IRSA

During fiscal year 2010, the Company acquired 2,114,360 shares amounting to US$ 2.3 million, increasing our direct interest to 50.60% as of June 30, 2010. Such interest remains unchanged at the end of the current period (Schedule C).

ANTA

During fiscal year 2010, the Company made irrevocable contributions for Ps. 8,100, 90% on its own behalf and 10% on behalf of IGSA, which were capitalized on January 19, 2010. In addition, on June 30, 2010, irrevocable contributions and receivables to ANTA for Ps. 10,228 were capitalized, 90% on its own behalf and 10% on behalf of IGSA. As from July 1, 2010, the incorporation by merger of ANTA is effective as described in Note 14.2.

126

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 13:

(Continued)

IGSA

During fiscal year 2010, Cresud made irrevocable contributions to IGSA of Ps. 1,926, which was capitalized on January 19, 2010. In addition, as of June 30, 2010, irrevocable contributions and receivables for Ps. 2,811 were capitalized in IGSA. From July 1, 2010 takes effect the merger of the Company with IGSA described in note 14.2.

Northagro S.A, Agrotech S.A. and Pluriagro S.A.

On September 21, 2010, Northagro S.A., Agrotech S.A. and Pluriagro S.A.´s by Laws were signed, the contributions for each one of the companies were made by Cresud and Agrology by 97% and by 3%, respectively, totaling Ps. 50,000; equivalent to 50,000 registered non-endorsable shares of common stock with a face value of Ps. 1 each, entitled to one vote per share.

FyO.Com

On September 30, 2010, the Ordinary Shareholders Meeting of FyO.Com decided to approve a capital increase for up to Ps. 5,925, related to issuing 538,613 registered, non-endorsable shares of common stock with a face value of Ps. 1, plus an additional paid-in capital for Ps. 5,386. In such sense, the Company subscribed shares for Ps. 4,467, of which Ps. 3,541 was made by the conversion of debt into equity and the difference for Ps. 926 to be paid-in in cash. As a result of the transaction the Company´s interest amounted to 65.85% since September 30, 2010 and remains unchanged at the end of this period.

NOTE 14:

SPIN-OFFS AND MERGERS

Spin-off of Inversiones Ganaderas S.A. (IGSA) and Merger into Cresud

On November 27, 2009, it was held the Company’s shareholders meeting that approved, among others, the corporate reorganization consisting in the spin-off – merger with IGSA, and all related documentation.

Subsequently, on January 21, 2010, the Definitive Merger Agreement (the “Agreement”) notarized into a public deed and filed with the enforcement agencies in due course. Under the Agreement, IGSA’s spin-off was resolved for 48.92% so that such spun-off percentage after having been merged into the Company, and IGSA Residual or Spun-off Company holds, but not limited to, the following assets:

127

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 14:

(Continued)


Company	Number of shares of IGSA
ANTA		4,315,811
Agrology S.A.		5,684,398
Agropecuaria Acres del Sud S.A.		2
Aguaribay Agropecuaria S.A.		2
Calden Agropecuaria S.A.		2
Itín Agropecuaria S.A.		2
Ñandubay Agropecuaria S.A.		2
Ombú Agropecuaria S.A.		2
Yatay Agropecuaria S.A.		2
Yuchán Agropecuaria S.A.		2

All of IGSA’s remaining rights, duties, assets and liabilities were transferred under the merger by absorption to the Company’s shareholders’ equity.

Cresud’s merger with IGSA and ANTA

On September 3, 2010, the Company’s Board of Directors resolved to merge with IGSA Residual and Anta, by which both companies merge into Cresud and are dissolved without liquidation. On September 25, a pre-merger agreement is executed, by which all assets, rights and obligations of Merged Companies (IGSA and ANTA) are transferred to the Merging Company (Cresud). Such assets and liabilities were transferred for the value at which they were registered in the Special Merger Financial Statements as of June 20, 2010, of IGSA and ANTA.

As from July 1, 2010, all transactions carried out by the merged companies are understood as if they had been made by and for Cresud.

NOTE 15:

NEGATIVE WORKING CAPITAL

At the end of the period, the Company carried a working capital deficit of Ps. 52,401 whose treatment is being considered by the Board of Directors and the respective Management.

NOTE 16:

CAPITAL INCREASE

During March 2008, the capital increase by 180 million shares with face value of Ps. 1 entitled to one vote per share was concluded. This capital increase was approved by the Shareholders Meeting of October 10, 2007. Thus, 180 million shares offered at the subscription price of US$ 1.60 or Ps. 5.0528 per share were fully subscribed, locally and internationally.

128

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 16:

(Continued)

After this capital increase, the Company’s outstanding shares amounted to 500,774,772.

Additionally, for each subscribed share, each shareholder received at no additional cost 1 option entitling the holder to purchase 0.33333333 new shares at a price of US$ 1.68 per each share to be acquired. That is to say, 180 million options entitling holder to purchase a total of 60 million additional shares at the previously mentioned price were granted. Options fall due on May 22, 2015 and may be exercised between the 17 and the 22 day of February, May, September and November. Options are listed on the Buenos Aires Stock Exchange under the symbol “CREW2” and on the Nasdaq under the symbol “CRESW”.

Funds obtained from increasing capital, net of issuance expenses, amounted to Ps. 881.1 million, while the tax effect of issuance expenses amounted to Ps. 9.9 million. As stated in the section “Allocation of funds” in the capital increase issuance prospectus, the funds brought into the Company were mainly used to organize companies and acquire plots of land for agricultural production in Bolivia and Paraguay, the purchase of shares of our subsidiaries IRSA and BrasilAgro, the acquisition of notes of our subsidiaries IRSA and APSA, the repurchase of proprietary shares, the settlement of payables and working capital.

As of June 30, 2009, 2,291,527 options were exercised; consequently, 763,838 shares of common stock were issued for Ps. 4,023.

During fiscal year 2010, 21,898 shares entitled with the right to be converted into 62,559 options and such transaction yielded Ps. 135.

During the nine-month period ended March 31, 2011, 552 ordinary shares were issue upon the exercise of conversion rights than 1,576 options, therefore, entered funds US$ 883. At the closing of this period, remain 177,644,338 outstanding options.

The terms and conditions of outstanding options (warrants) to subscribe the Company’s shares of common stock have been amended due to attributing proprietary shares on a prorate basis among its shareholders, made by the Company on November 23, 2009. Below are detailed the terms that have been modified:

•

The number of shares to be issued for warrants is, as a ratio previous to assignment 0.33333333 and as ratio resolved after assignment (current) 0.35100598.

•

The prices to call shares to be issued are: price previous to assignment US$ 1.68, while the current price after assignment US$ 1.5954.

The rest of terms and conditions of warrants remain unchanged.

129

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 17:

EXAGRIND S.A. LAWSUIT – SAN RAFAEL AGAINST TALI SUMAJ AND OTHER DAMAGES AND LOSSES

Because of the merge with IGSA, Note 14.1, the Company has been demanded by Exagrind S.A. on claims for damages and losses produced by a fire in “Estancia San Rafael”, which is close to Tali Sumaj farm, Province of Catamarca. The fire took place on September 6, 2000.

The estimated amount of the legal action is Ps. 2,915 at the date the claim was filed.

In turn, the Company has filed an extraordinary appeal to the High Court of the Province of Catamarca, requesting for a remainder term to answer the lawsuit as, at the time of revoking the first instance judge decision that postponed the terms to answer until a new notice was dispatched, such period had not yet expired. The management of the Company is awaiting the decision of the High Court of the Province of Catamarca.

Additionally, in March 2007 -under the request of Exagrind S.A.- the court in charge of the case seized an inhibition of assets. This decision was lifted in June 2007 and Tali Sumaj farm on attachment has been accepted in replacement.

It should be noted that during fiscal year 2010, it was executed the title deed for the sale of such establishment and because as of the closing date of these financial statements the attachment-in-aid-of-execution had not been lifted, the Company assumed certain obligations and provided a surety insurance to guarantee its obligation on behalf of the purchaser (Note 12).

NOTE 18:

COUNTING AT ESTANCIA LOS POZOS

During the annual cattle count held at Estancia Los Pozos, with the occasion of end of fiscal year 2010, it was detected that the number of head of cattle had decreased. As the Company had filed a report with Unidad Regional No. 5, in Joaquín V. González, Province of Salta, involving procedures by the Criminal Court No. 1, Metán, Province of Salta seeking to find out the reason for such decrease.

In this sense, the Company is currently providing the information and documentation requested by the judge hearing such case. Although such procedure is at the initial stage, the effects of the previously mentioned difference were recognized in the previous fiscal year.

130

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 19:

BUYBACK OF TREASURY STOCK

On August 26, 2008, the Company’s board of directors decided to acquire treasury stock under section 68, Law No. 17,811 and CNV regulations for a maximum amount of Ps. 30,000 and 10,000,000 shares of common book-entry shares of face value of Ps. 1 per share and entitled to 1 vote. Later, both the maximum amount and the number of shares were increased to Ps. 82,000 and 30,000,000, respectively

This decision was taken to contribute to the decrease in the draw down and reduction of fluctuations in the listed price of the Company’s shares aiming at contributing to strengthening the shares on the market, minimizing possible temporary imbalances that there may be between the supply and demand on the market, considering the excessive cost of capital that the current listed prices showed.

As of June 30, 2009, purchases of proprietary shares amounted to 2,935,641 ADRs and 643,590 shares of common stock paying an amount of US$ 21 million and Ps. 1,745, respectively.

In accordance with the law of commercial companies, the Board of Directors shall dispose of the shares acquired within a period of one year unless an extension is provided for a Shareholders meeting. On November 13, 2009, the Board of Directors seeking to comply with the mandate granted by the Shareholders meeting held on October 29, 2009, resolved to start attributing and assigning on a prorate basis 25,000,000 proprietary treasury shares with a face value of Ps. 1 entitled to 1 vote each. Such assignment was made as from November 23, 2009. As a result of this assigment, the Company keeps 754 treasury shares that have not been allocated that are added to the 5,000,000 treasury shares already held by the Company.

On October 29, 2010, the Regular and Special Shareholders’ Meeting decided, by majority of votes, to postpone the decision on the treatment to be afforded to treasury shares until the following Shareholders’ Meeting corresponding to the fiscal year ended June 30, 2011.

NOTE 20:

PRESENTATION OF THE GLOBAL PROGRAM FOR THE ISSUANCE OF NON-CONVERTIBLE NOTES FOR A FACE VALUE OF UP TO US$ 50,000,000

In the framework of the Global Program to Issue Corporate Bonds for a face value of up to US$ 50,000,000 (the “Program”), corporate bonds in one or more classes and/or series (the “ Corporate Bonds” or “CB”) may be issued. Corporate Bonds will be simple not convertible into share, with or without guarantee or guaranteed by third parties, whose face value may not exceed US$ 50,000,000 (or their equivalent in other currencies), with maturity dates not shorter than thirty days from the issuance date. The duration of the Program will be for five years as from its authorization by CNV (Argentines securities commission) on September 4, 2008, by means of resolution No. 15,972.

131

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 20:

(Continued)

The issuance of Corporate Bonds was approved by the Shareholders Meeting on October 31, 2006 and by the Board of Directors on June 19, 2008, April 24, 2009, July 3, 2009, August 19, 2009, July 1, 2010 and January 20, 2011.

The terms and conditions of such corporate bonds require that the Company complies with certain obligations that have been specified in the respective price supplements. In this sense, the Company periodically pays interest and amortization installments as provided for both series (see detail further below in this Note).

Issuance of Non-Convertible Notes - Class I and II

On August 19, 2009, based on the powers granted by the shareholders to the Board of Directors, the Company approved the issuance of the Company’s First Series of Non-convertible notes up to a face value of Ps. 50 million under the Global Program.

During the following months, the First Series of non-convertible notes was subscribed and issued for Ps. 50 million in two classes. Class I for Ps. 15.5 million at variable rate (average Badlar + 300 basis points) falling due 270 days from the issuance date and Class II for Ps. 34.5 million at a fixed rate of 7.2% falling due 365 after the issuance date.

The Company made quarterly interest payments and redemption fees for both classes, as follows:

•

On December 10, 2009, the first interest installments of Class I and Class II non-convertible notes were paid for Ps. 558 and US$ 159,201, respectively.

•

On March 10, 2010, the second interest installments of Class I and Class II non-convertible notes were paid for Ps. 487 and US$ 159,201, respectively.

•

On June 8, 2010, the third interest installments of Class I and Class II non-convertible notes were paid for Ps. 472 and US$ 159,201; respectively. Likewise, on such same date, Ps. 15.5 million related to the only amortization installment of Class I Corporate Bonds was paid.

•

On September 13, 2010, the last interest installment and the only amortization installment of Class II non-convertible notes were paid for US$ 171,583 and US$ 9.0 million, respectively.

132

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 20:

(Continued)

Issuance of Non-Convertible Notes – Class III and IV

On July 1, 2010, the Board of Directors approved the Price Supplement related to the issuance of Class III and Class IV Non-Convertible Notes, under the Global Program framework.

Later, between July 6 and 16, 2010, the Second Series of simple Corporate Bonds (not convertible into shares) was subscribed for a total value of Ps. 105.9 million. The issue was finally carried out on July 21, 2010.

Class III Non-Convertible Notes, for a face value of Ps. 35.7 million and falling due 21 months after the issuance date will accrue interest at a variable date (Badlar privada plus 400 basis points). These will be paid on a quarterly basis in arrears while amortization will be made in three consecutive payments 15, 18 and 21 from the issuance date.

Class IV Non-Convertible Notes, for a face value of US$ 17.8 million and falling due 24 months after the issuance date will accrue interest at fixed annual rate of 7.75%. These will be paid on a quarterly basis in arrears while amortization will be made in four equal and consecutive payments 15, 18, 21 and 24 from the issuance date.

Since the issuance date, the Company has made quarterly interest payments on both classes, as detailed below:

•

On October 19, 2010, the Company made the payment of the first interest installments of Class III and Class IV Non Convertibles Notes by the amount of Ps. 1,272 and US$ 340,954, respectively, for the period between July 21, and October 19, 2010.

•

On January 17, 2011, the Company made the second payment of interest on Class III and IV Non-Convertible notes in the amounts of Ps. 1,310 and US$ 340,954, respectively, for the period comprised between October 19, 2010 and January 17, 2011.

Following the balance sheet date, the Company made the third payment of interest on both classes of Non-Convertible. See Note 27 to the unaudited financial statements.

133

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 20:

(Continued)

Issue of Class V, VI y VII Non-Convertible notes

On February 18, 2011 the Board of Directors approved a Pricing Supplement for the issuance of Class Clase V, VI and VII Non-Convertible notes, under the Program.

Later on, between February 22 and March 3, 2011, the Third Series of simple (nonconvertible) Non-Convertible was subscribed. Finally, the Non-Convertible were issued on March 10, 2011.

Class V Non-Convertible notes, for a nominal value of Ps. 106.9 million due 21 months after the issue date, shall accrue interest at a variable rate (Badlar plus 375 basis points). Interest will be payable quarterly in arrears whereas the principal will be amortized in three consecutive equal payments on the 15, 18 and 21 months following the issue date.

Class VI Non-Convertiblen notes, for a nominal value of US$ 34.8 million due 24 months after the issue date shall be payable in pesos at the exchange rate prevailing on the payment date. Interest shall be payable quarterly in arrears while the principal will be amortized in four consecutive and equal payments on the 15, 18, 21 and 24 month following the issue date.

Class VII Non-Convertible notes, for a nominal value of US$ 2.1 million due 24 months after the issue date and payable in pesos at the exchange rate prevailing on the payment date. Interest will accrue at a fixed minimum rate of 4% per annum plus a Premium Factor (40% of the appreciation of the soyabean during the period), if applicable. Interest will be payable quarterly in arrears. Principal will be repaid at maturity.

NOTE 21:

MINUTE OF RENEGOTIATION OF CONCESSION AGREEMENT

On July 2, 2008, ANTA (incorporated by merge according to Note 14.2.) executed a memorandum of understanding renegotiating the concession agreements for the northern and southern areas of the real estate property of Salta Forestal S.A. The agreements establish that the concessionaire should pay as a concession fee the amount in US Dollars equivalent to a quintal of soybean per harvested hectare of any crop in the northern and southern areas per year. The concession fee is required to be paid on July 1 of each year starting in 2009.

For the purposes of determining the concession fee, 2,000 hectares in the southern area rented out to Compañía Argentina de Granos are excluded.

On August 29, 2008, the Memorandum of Understanding was approved by Decree No. 3,766 of the Executive Power of the Province of Salta. Consequently, the disposals contained in the mentioned decree will have effect from the referred date.

134

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 21:

(Continued)

Additionally, ANTA committed to reduce the concession area through the return of 30,000 hectares and its location will come up from a sketch agreed by the parties involved.

NOTE 22:

CAPITALIZATION PROGRAM FOR EXECUTIVE MANAGEMENT

The Company together with its related Company IRSA has developed a capitalization program for executive management staff through contributions made by employees and by the Company (the “Plan”).

The Plan is addressed to employees selected by those Companies with the purpose of keeping them in the company and increasing their total compensation through an extraordinary reward, provided that certain specific conditions are complied with.

Participation and contributions to the Plan are on a voluntary basis. Once the beneficiary (the “Participant”) has accepted, he will be able to make two types of contributions: a monthly one (based on the salary) and an extraordinary one (based on the annual bonus). The suggested contribution is up to 2.5% of the salary and up to 15% of the annual bonus. On the other hand, the Company contribution will be 200% of the monthly contributions and 300% of the employee´s extraordinary contributions.

Funds collected from participants´ contributions will initially be sent to an independent financial means especially created for such purpose and placed in Argentina as a Common Investment Fund, which will be approved by the C.N.V. Such funds will be freely redeemed under the requirement of the participants.

The funds arising from the Company contributions will flow to other independent financial means separated from the previous one.

In the future, the participants or their successors will have access to 100% of the Program Benefits (that is, including Company contributions made in favor of the financial means especially created) under the circumstances that follow:

•

ordinary retirement in line with the applicable working regulations

•

total or permanent disability or inability

•

death.

In case of resignation or dismissal without justifiable cause, the participant will be entitle to collect the amounts from the contributions made by Company only if the beneficiary has been in the program for at least five years, subject to certain conditions.

During the current period, the Company has made contributions to the Program for an amount of Ps. 2,234.

135

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 23:

SHAREHOLDERS’ AND THE BOARD OF DIRECTORS’ MEETINGS

The Ordinary and Extraordinary Shareholders Meeting held on October 29, 2010, approved, among others issues, the following:

•

Annual report and financial statements ended June 30, 2010;

•

Appropriating 5% income for the year ended June 30, 2010 to the legal reserve;

•

Posting the remainder to the new project reserve account, delegating to the Board of Directors the power to use it freely.

•

Ratification of the spin-off-merger between the Company and IGSA;

•

Corporate reorganization by merger into IGSA residual and ANTA;

•

Defer treatment until the next Shareholders Meeting that may consider the fiscal year that will end on June 30, 2011, of the destination of proprietary portfolio stock;

•

Renewal for another period the delegations made in the Board by the Shareholders meeting from the previous period as regards paying a bonus to the Company’s Managements of up to 1% of the outstanding capital stock; and

•

Extending the amount of the Global Program to Issue Corporate Bonds in place for up to a further US$ 100 million (or its equivalent in other currencies)

The General Shareholders meeting held on December 9, 2010 approved the following by majority of votes:

•

Distributing dividends exclusively in cash for Ps. 69 million to the shareholders in the proportion of their respective interests.

•

And reversing the “New Project Reserve”, prior to such distribution and previously provided by the shareholders meeting for Ps. 69 million.

On March 11, 2011, in view that the Company has realized net income as of December 31, 2010 and based on the financial statements prepared in accordance with applicable laws, the Company’s bylaws and applicable regulations governing listed companies, the Board of Directors unanimously approved the reallocation of the dividend approved by the Shareholdres’ Meeting held on December 9, 2010 as dividend in advance for the current year. This reallocation was ratified by the Regular Shareholders Meeting held on April 12, 2011.

136

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 24:

SALE OF IRSA CLASS I CORPORATE BONDS

During second quarter of fiscal year 2010, Cresud sold in two transactions on the secondary market, IRSA Class I Corporate Bonds that it held, which accrue interest at fixed rate and fall due in 2017.

On November 29, 2010, the Company sold corporate bonds for a face value of US$ 18,000,000 at an average price of 100.04%. As a result from such sale, Cresud received revenues for the principal and accrued interest for US$ 18,471,883.

On December 10, 2010, the Company sold corporate bonds for a face value of US$ 15,152,000 at an average price of 100.17%. As a result from such sale, Cresud received revenues for the principal and accrued interest for US$ 15,625,791.

It should be mentioned that as these are corporate bonds issued under Regulation S, US Securities Act, transactions were carried out complying with the requirements established in such regulation.

NOTE 25:

ASSIGNMENT OF RIGHTS AGREEMENT BETWEEN IRSA AND CRESUD

On October 15, 2010, the Company and IRSA entered into an agreement to assign rights, for a term of one year, whereby the Company assigned to Cresud the financial and voting economics and politics rights associated to 8,817,259 non-endorsable, registered, common shares of par value Ps. 1 per share and equivalent to 0.70% of APSA’s subscribed capital stock. In exchange, Cresud must pay, as from the third month counted from the date of execution of the agreement, interest equivalent to an annual LIBOR at three months plus 150 bp rate.

NOTE 26:

COMPLIANCE WITH CURRENTLY APPLICABLE ENVIRONMENTAL RULES AND REGULATION

The Company has assumed a permanent commitment to the sustainable conduct of business in line with currently applicable environmental rules and regulations.

NOTE 27:

SUBSEQUENT EVENTS

Credit facility with IRSA

On April 13, 2011, the Company entered into a credit facility with IRSA, under which it borrowed US$ 23,000,000 at a fixed rate of 7.50% for a term of 210 days.

137

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Notes to the Unaudited Financial Statements (Continued)

(in thousands of pesos)

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

NOTE 27:

(Continued)

Repurchase of APSA´s Non-Convertible Class I

On April 18, 2011, APSA repurchased its Class I Non-Convertible notes from Cresud in a nominal amount of US$ 5,000,000, held by Cresud in its investment portfolio, at a price of US$ 5.1 million for principal and accrued interest.

Class III and Class IV Negotiable Bonds

On April 18, 2011, the second interest installments of Class III and Class IV CB for Ps. 1,344 and US$ 344,743, respectively, related to the period January 17, 2011 and April 18, 2011 were paid.

138

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Property and equipment

Corresponding to the nine-month periods ended March 31, 2011 and 2010

and fiscal year ended June 30, 2010

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

(in thousands of pesos - Notes 1 and 2)

Schedule A


Principal account	Value at the the beginning of the year		Additions and/or Transfers (2)		Deductions and/or Transfers		Value at the end of the period /year		Depreciaciones												Net carrying Value as of March 31, 2011		Net carrying Value as of June 30, 2010		Net carrying Value as of March 31, 2010
Principal account	Value at the the beginning of the year		Additions and/or Transfers (2)		Deductions and/or Transfers		Value at the end of the period /year		Rate %		Accumulated at the beginning year		Additions (3)		Decrease of the period / year		Current period / year (1)		Accumulated at the end of the period / year		Net carrying Value as of March 31, 2011		Net carrying Value as of June 30, 2010		Net carrying Value as of March 31, 2010
Real estate		201,831		18,179		9,029		210,981		—		—		—		—		—		—		210,981		201,831		201,988
Wire fences		9,815		2,914		518		12,211		3		1,385		—		78		227		1,534		10,677		8,430		8,364
Watering troughs		8,072		3,960		1,187		10,845		5		1,890		—		345		279		1,824		9,021		6,182		6,209
Alfalfa fields and meadows		9,255		120		3,069		6,306		12-25-50		4,068		—		1,217		901		3,752		2,554		5,187		4,818
Buildings and constructions		39,748		7,857		5,273		42,332		2		5,687		—		449		1,507		6,745		35,587		34,061		35,276
Machinery		12,692		1,259		594		13,357		10		9,458		68		429		461		9,558		3,799		3,234		3,310
Vehicles		3,725		474		257		3,942		20		1,937		60		214		415		2,198		1,744		1,788		1,703
Tools		269		14		3		280		10		177		2		2		11		188		92		92		96
Furniture and equipment		1,271		46		19		1,298		10		901		8		7		32		934		364		370		376
Feeder and drinking troughs		238		38		66		210		20		11		—		4		7		14		196		227		230
Corral and leading lanes		1,531		320		200		1,651		3		241		—		56		32		217		1,434		1,290		1,294
Roads		3,105		470		272		3,303		10		1,344		—		113		177		1,408		1,895		1,761		1,759
Facilities		18,224		451		763		17,912		10-20-33		9,882		33		294		832		10,453		7,459		8,342		6,346
Computer equipment		2,357		350		33		2,674		20		2,142		1		25		101		2,219		455		215		158
Silo plants		1,350		—		112		1,238		5		691		—		76		57		672		566		659		656
Constructions in progress		15,135		16,342		14,538		16,939		—		—		—		—		—		—		16,939		15,135		16,623
Advances to suppliers		1,187		—		197		990		—		—		—		—		—		—		990		1,187		959
Improvement in third´s real estate		—		34,124		—		34,124		3		—		2,330		—		—		2,330		31,794		—		—
Tree plantations (wood)		—		4,320		—		4,320		3		—		432		—		108		540		3,780		—		—
Posts		—		58		58		—		—		—		—		—		—		—		—		—		—

Total as of March 31, 2011		329,805		91,296		36,188		384,913				39,814		2,934		3,309		5,147		44,586		340,327		—		—

Total as of June 30, 2010		309,468		30,548		10,211		329,805				34,540		2,234		2,702		5,742		39,814		—		289,991		—

Total as of March 31, 2010		309,468		22,682		1,076		331,074				34,540		2,234		199		4,334		40,909		—		—		290,165

(1)	Included in Schedule H.

(2)	It includes additions for Ps. 40,556 incorporated by merger with ANTA.

(3)	Incorporated by merger.

139

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Intangible Assets

Corresponding to the nine-month periods ended March 31, 2011 and 2010

and fiscal year ended June 30, 2010

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

(in thousands of pesos - Notes 1 and 2)

Schedule B


Principal account	Values at beginning of period		Additions of the period / year		Values at the end of the period / year		Depreciation										Net balance March 31, 2011		Net balance June 30, 2010		Net balance March 31, 2010
Principal account	Values at beginning of period		Additions of the period / year		Values at the end of the period / year		Rate %		Accumulated at the beginning of the year		Additions (1)		Amount (2)		Accumulated at the end of the period / year		Net balance March 31, 2011		Net balance June 30, 2010		Net balance March 31, 2010
Pre-operative expenses (Bolivia)		842		—		842		20		252		—		126		378		464		590		632
Pre-operative expenses (Paraguay)		671		—		671		20		190		—		101		291		380		481		515
Concession Rights		—		(1) 23,582		23,582		3		—		2,258		564		2,822		20,760		—		—

Total as of March 31, 2011		1,513		23,582		25,095				442		2,258		791		3,491		21,604		—		—

Total as of June 30, 2010		1,513		—		1,513				140		—		302		442		—		1,071		—

Total as of March 31, 2010		1,513		—		1,513				140		—		226		366		—		—		1,147

(1)	Incorporated by merger. See Note 14.2 to Financial Statements.

(2)	Preoperative expenses are included in gain on equity investees in the Statements of Income in the Statement of Income. Concession Rights are included in Depreciation of Intangible Assets in Schedule H.

140

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Investments

As of March 31, 2011 and 2010 and June 30, 2010

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

(in thousands of pesos - Notes 1 and 2)

Schedule C


Securities	Amount		% of Participation on the capital		Value as of March 31, 2011			Value as of June 30, 2010		Value as of March 31, 2010		Market Value as of March 31, 2011	INFORMATION ON THE ISSUER
Securities	Amount		% of Participation on the capital		Value as of March 31, 2011			Value as of June 30, 2010		Value as of March 31, 2010		Market Value as of March 31, 2011	Principal activity	Latest financial statements
													Principal activity	Capital		Income (loss) for the year			Shareholders’ Equity
CURRENT ASSET
Current Investments
Mutual Funds
Bony Hamilton Fund (US$)		14,126				57			14,554		680
Deutsche Managed Euro Fund (€) (1)		—				—			53		57
Deutsche Managed Dollar Fund (US$) (1)		820,447				3,293			4,925		3,301
Alpha pesos plus		10,390				1,081			—		—	104.08
Fima premium		1,359,233				1,884			—		—	1.39

Subtotal						6,315			19,532		4,038

Bonds and Notes (1)
Non-Convertible Notes IRSA 2017 (US$)- Interests		—				—			4,616		1,821
Non- Convertible Notes APSA 2017 (US$)-Interests		54,688				621			215		594
Global 2010 bonds		—				—			132		202
Bocon Pro 1 bonds		—				—			1		1
Mortgage bonds		—				—			135		200

Subtotal						621			5,099		2,818

Total current investments						6,936			24,631		6,856

NON-CURRENT ASSET
Investments on controlled and related companies
Agro-Uranga S.A. Shares		893,069		35.72		11,585			10,191		9,534	Unlisted	Agricultural livestock		2,500		12,451			32,430
Higher value of property						11,179			11,179		11,179

						22,764			21,370		20,713

IGSA (2)													Raising and grazing cattle		—		—			—
Shares		—		—		—			14,860		11,928
Irrevocable contributions						—			—		489

						—			14,860		12,417

Cactus Shares		8,973,684		80.00	(4)	(2,126)		(3)	2,071		11,776	Unlisted	Exploitation and administration of agriculture products and raising cattle		11,217		(22,971	)		(2,657	)

						(2,126	)		2,071		11,776

						6,302			2,723		2,063

FyO.Com Shares		987,426		65.85		6,302			2,723		2,063	Unlisted	Gives information about markets via internet, brokerage and Inmediation on spot and future markets		1,500		(590	)		9,570


ANTA (2)													Agricultural and forestal		—		—			—
Shares		—		—		—			56,234		45,078
Irrevocable contributions						—			—		3,780
Concession rights						—			19,813		19,988

						—			76,047		68,846

141

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Investments (Continued)

As of March 31, 2011 and 2010 and June 30, 2010

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

(in thousands of pesos - Notes 1 and 2)

Schedule C (Continued)


															Information about the issuer
																According to the latest balance sheet
Designation and features of the securities	Amount		% Interest on capital		Value March 31, 2011			Value June 30, 2010		Value March 31, 2010		Market value March 31, 2011			Main activity	Capital		Gain (loss) for the period			Shareholders’ Equity
Agrology S.A.													Unlisted		Investing		260,221		10,609			287,196
Shares		260,221,315		100.00		283,549			256,840		228,662
Irrevocable contributions						1,253			—		2,245

						284,802			256,840		230,907

FyO Trading													Unlisted		Brokerage		20		—			20
Shares		726		3.63		1			1		1

						1			1		1

EAASA													Unlisted		Meat packing industry		17,116		(22,851	)		(5,736	)
Shares		4,895		0.03	(4)	(2)		(3)	5		76

						(2	)		5		76

IRSA													5,83		Real Estate		578,676		223,158			2,518,353
Shares		292,811,013		50.60		1,283,168			1,282,481		1,261,949
Higher values (5)						165,414			178,148		181,670

						1,448,582			1,460,629		1,443,619

BrasilAgro													10.70	(6)	Agricultural and Real Estate		875,381		(18,094	)		1,408,318
Shares (10)		17,019,830		29.13		465,085			290,832		300,250
Higher values (7)						32,170			6,887		6,887
Warrants (10)		209,804				10,786			—		—

						508,041			297,719		307,137

Agrotech S.A.													Unlisted		Investing		50		(26	)		24
Shares		48,500		97.00		23			—		—

						23			—		—

Pluriagro S.A.													Unlisted		Investing		50		23			38
Shares		48,500		97.00		37			—		—

						37			—		—

Northagro S.A.													Unlisted		Investing		50		23			38
Shares		48,500		97.00		37			—		—

						37			—		—

						2,268,461			2,132,265		2,097,555

142

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Investments (continued)

As of March 31, 2011 and 2010 and June 30, 2010

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

(in thousands of pesos - Notes 1 and 2)

Schedule C (Continued)


															Information about the issuer
																According to the latest balance sheet
Designation and features of the securities	Amount		% Interest on capital	Value March 31, 2011			Value June 30, 2010			Value March 31, 2010			Market value March 31, 2011		Main activity	Capital	Gain (loss) for the period	Shareholders’ Equity
BrasilAgro negative goodwill (8)					(9,790	)		(14,765	)		(16,140	)
BrasilAgro goodwill					6,965			6,965			6,965
IRSA negative goodwill (9)					(308,216	)		(330,413	)		(334,024	)
IRSA goodwill					6,712			6,712			6,268
Cactus goodwill					4,978			4,978			1,966
Allowance for impairment of Cactus´s goodwill					(4,978	)		(4,978	)		—

					(304,329	)		(331,501	)		(334,965	)

Subtotal					1,964,132			1,800,764			1,762,590

Other Investments
Non-Convertible Notes IRSA 2017 (US$)		—			—			72,174			69,034
Non-Convertible Notes APSA 2017 (US$)		5,000,000			11,261			9,847			9,363
Coprolan					21			21			21			Unlisted

Subtotal					11,282			82,042			78,418

Total No Corriente					1,975,414			1,882,806			1,841,008

(1)	Not considered as cash equivalents for Statement of Cash Flow purpose.

(2)	Since July 1st, 2010, is effective the merger of Cresud with IGSA and Anta (See Note 14.2 to the financial statements)

(3)	Recovery estimated value as of June 30, 2010.

(4)	Included in Other liabilities.

(5)	Consist of Ps. 10,576 higher value of inventory, Ps. 72,614 higher value of investments, Ps. 109,887 higher value of fixed assets, Ps. 27,226 higher value of intangible assets, Ps. 20,812 less value of loans, and Ps. (75,701) higher value of tax effect

(6)	Total in reais.

(7)	Consist of Ps. 35,879 higher value of fixed assets and Ps. (3,709) higher value of tax effect.

(8)	The change as regards the previous year corresponds to amortization for Ps. 4,975.

(9)	The change as regards the previous year corresponds to amortization for Ps. 22,197.

(10)	See Note 13.1.a)

143

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Allowances

Corresponding to the nine-month periods

ended March 31, 2011 and 2010 and fiscal year ended June 30, 2010

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

(in thousands of pesos - Notes 1 and 2)

Schedule E


Item	Balances at beginning of the fiscal year		Increases		Decreases/ Applications			Value as of March 31, 2011		Value as of June 30, 2011		Value as of March 31, 2010
Deducted from assets		630		(1) 40		(1)(53)			617		630		660
For doubtful accounts
Included in liabilities
For pending lawsuits		1,768		(2) 7		(2)(97)			1,678		1,768		1,791

Total as of March 31, 2011		2,398		47		(150	)		2,295		—		—

Total as of June 30, 2010		787		1,770		(159	)		—		2,398		—

Total as of March 31, 2010		787		1,664		—			—		—		2,451

(1)	Included in the Schedule H.

(2)	Included in other income and expenses in the Statements of Income – Others.

144

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Cost of sales

Corresponding to the nine-month periods

ended March 31, 2011 and 2010

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

(in thousands of pesos - Notes 1 and 2)

Schedule F.1


	Crops						Beef cattle						Milk						Others						Total
	March 31,			March 31,			March 31,			March 31,			March 31,			March 31,			March 31,			March 31,			March 31,			March 31,
	2011			2010			2011			2010			2011			2010			2011			2010			2011			2010
Inventories at the beginning of the fiscal year:
Beef cattle		—			—			138,807			78,710			—			—			—			—			138,807			78,710
Crops		41,566			42,250			—			—			—			—			—			—			41,566			42,250
Seeds and fodder		758			705			—			—			—			—			—			—			758			705
Materials and others		—			—			614			579			—			—			873			932			1,487			1,511

		42,324			42,955			139,421			79,289			—			—			873			932			182,618			123,176

Unrealized gain on inventories- Beef cattle		—			—			61,802			63,408			—			—			—			—			61,802			63,408
Unrealized gain (loss) on inventories – Crops and raw materials		6,082			(1,394	)		—			—			—			—			105			—			6,187			(1,394	)
Production		71,191			27,525			29,622			13,458			22,569			16,567			—			—			123,382			57,550
Transfer of inventories sold		—			—			8,425			—			—			—			—			—			8,425			—
Transfer of inventories to property and equipment		—			—			—			—			—			—			(722	)		(1,167	)		(722	)		(1,167	)
Transfer of inventories to expenses		(9,234	)		(3,426	)		(290	)		(91	)		(295	)		(201	)		(3,607	)		(2,050	)		(13,426	)		(5,768	)
Incorporated by merger with IGSA		—			—			—			3,171			—			—			—			8			—			3,179
Incorporated by merger with ANTA		10,073			—			—			—			—			—			84			—			10,157			—
Purchases		16,767			8,091			1,120			2,331			—			—			4,811			3,282			22,698			13,704
Operating expenses (Schedule H)		—			—			—			—			—			—			2,789			5,294			2,789			5,294
Inventories at the end of the period:
Beef cattle		—			—			(196,997	)		(140,855	)		—			—			—			—			(196,997	)		(140,855	)
Crops		(48,290	)		(18,474	)		—			—			—			—			—			—			(48,290	)		(18,474	)
Seeds and fodder		(1,441	)		(1,046	)		—			—			—			—			—			—			(1,441	)		(1,046	)
Materials and others		—			—			(1	)		(651	)		—			—			(1,826	)		(1,038	)		(1,827	)		(1,689	)

Cost of Sales		87,472			54,231			43,102			20,060			22,274			16,366			2,507			5,261			155,355			95,918

145

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Cost of Production

Corresponding to the nine-month periods

ended March 31, 2011 and 2010

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

(in thousands of pesos - Notes 1 and 2)

Schedule F.2


	Crops						Beef cattle						Milk						Total
	March 31,			March 31,			March 31,			March 31,			March 31,			March 31,			March 31,			March 31,
	2011			2010			2011			2010			2011			2010			2011			2010
Inventories at the beginning of the fiscal year:
Beef cattle		—			—			—			—			18,848			14,226			18,848			14,226
Unharvested crops and other unharvested		11,166			5,160			—			—			—			—			11,166			5,160
Seeds and fodder		—			—			2,190			1,694			499			426			2,689			2,120
Materials and others		25,477			15,925			876			686			382			426			26,735			17,037

		36,643			21,085			3,066			2,380			19,729			15,078			59,438			38,543

Unrealized gain (loss) on inventories – Beef cattle		—			—			—			—			9,168			1,123			9,168			1,123
Unrealized gain on inventories – Crops and raw materials		6,617			838			(120	)		—			342			—			6,839			838
Production		—			—			1,462			581			2,012			1,054			3,474			1,635
Transfer of inventories sold		—			—			—			—			(8,425	)		—			(8,425	)		—
Transfer of property and equipment		(321	)		(494	)		—			—			—			—			(321	)		(494	)
Transfer of inventories crops to expenses – Materials and others		(57,461	)		(42,453	)		(3,852	)		(2,623	)		(6,709	)		(4,911	)		(68,022	)		(49,987	)
Incorporated by merger of IGSA		—			—			—			35			—			—			—			35
Incorporated by merger of ANTA		4,252			—			—			—			—			—			4,252			—
Purchases / increase in Unharvested crops by consume		151,548			113,175			1,306			994			6,164			4,617			159,018			118,786
Operating expenses (Schedule H)		54,524			27,080			17,692			15,281			18,041			14,213			90,257			56,574
Inventories at the end of the period:		—						—						—
Beef cattle		—			—			—			—			(21,531	)		(15,919	)		(21,531	)		(15,919	)
Unharvested crops and other unharvested		(113,248	)		(71,447	)		—			—			—			—			(113,248	)		(71,447	)
Seeds and fodder		—			—			(855	)		(536	)		(396	)		(601	)		(1,251	)		(1,137	)
Materials and others		(26,228	)		(20,526	)		(963	)		(851	)		(239	)		(469	)		(27,430	)		(21,846	)

Cost of Production		56,326			27,258			17,736			15,261			18,156			14,185			92,218			56,704

146

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Foreign currency assets and liabilities

As of March 31, 2011 and 2010 and June 30, 2010

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

(in thousands of pesos - Notes 1 and 2)

Schedule G


Item	March 31, 2011						June 30, 2010				March 31, 2010
Item	Type and amount of foreign currency		Current exchange Rate		Amount in local currency		Type and amount of foreign currency		Amount in local currency		Type and amount of foreign currency		Amount in local currency
CURRENT ASSETS
CASH AND BANKS
Cash and banks in Dollars	US$	2,686		4.014		10,783	US$	167		649	US$	387		1,486
Cash and banks in Brazilian Reais	Rs	6		2.330		14	Rs	2		5	Rs	3		6
Cash and banks in Euros	€	10		5.566		56	€	8		37	€	9		45
Cash and banks in Yenes	JPY	83		0.048		4	—	—		—	—	—		—
INVESTMENTS
Mutual funds	US$	835		4.014		3,350	US$	5,006		19,479	US$	1,037		3,981
Mutual funds	—	—		—		—	€	11		53	€	11		57
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties:
Non-Convertible Notes IRSA 2017 (US$) - Interest	—	—		—		—	US$	1,174		4,616	US$	470		1,821
Non-Convertible Notes APSA 2017 (US$) -Interest	US$	153		4.054		621	US$	55		215	US$	153		594
TRADE ACCOUNTS RECEIVABLE
Receivables	US$	1,999		4,014		8,025	US$	4,017		15,629	US$	2,613		10,027
Receivables – Real estate	US$	—		—		—	US$	725		2,821	US$	1,991		7,642
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties	US$	1,259		4.054		5,066	US$	349		1,370	—	16		62
OTHER RECEIVABLES
Guarantee deposits	US$	198		4.014		793	US$	671		2,611	US$	414		1,590
Premiums paid	US$	150		4.014		603	—	—		—	US$	—		1
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties	US$	12,448		4.054		50,464	—	—		—	US$	10,343		40,109
NON-CURRENT ASSETS
OTHER RECEIVABLES
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties	—	—		—		—	US$	4,267		16,775	—	—		—
OTHER INVESTMENTS
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties:	—	—		—		—	—	—		—	—	—		—
Non-Convertible Notes IRSA 2017	—	—		—		—	US$	18,360		72,174	US$	17,801		69,034
Non-Convertible Notes APSA 2017	US$	2,778		4.054		11,261	US$	2,505		9,847	US$	2,414		9,363

Total US$	US$	22,506				90,966	US$	37,296		146,186	US$	37,639		145,710

Total Rs	Rs	6				14	Rs	2		5	Rs	3		6

Total €	€	10				56	€	19		90	€	20		102

Total JPY	JPY	83				4	JPY	—		—	JPY	—		—

Total Assets						91,040				146,281				145,818

US$: US Dollars

Rs: Brazilian Reais

€: Euros

JPY: Yenes

147

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Foreign currency assets and liabilities (Continued)

As of March 31, 2011 and 2010 and June 30, 2010

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

(in thousands of pesos - Notes 1 and 2)

Schedule G (Continued)


Item	March 31, 2011						June 30, 2010					March 31, 2010
Item	Type and amount of foreign currency		Current exchange Rate		Amount in local currency		Type and amount of foreign currency			Amount in local currency		Type and amount of foreign currency		Amount in local currency
CURRENT LIABILITIES
TRADE ACCOUNT PAYABLE
Suppliers	US$	9,591		4.054		38,881		US$	4,576		17,987	US$	8,802		34,134
Accrual for inputs and other expenses	US$	768		4.054		3,112		US$	1,629		6,404	US$	1,451		5,628
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties	US$	2,387		4.054		9,676		US$	28		109	—	—		—
LOANS
Bank loans	US$	36,779		4.054		149,104		US$	30,049		118,123	US$	39,227		152,123
Interest payable- Bank loans	US$	390		4.054		1,581		US$	523		2,054	US$	585		2,267
Non-convertible notes class II	—	—				—		US$	8,967		35,251	US$	8,967		34,775
Non-convertible notes class IV	US$	4,461		4.054		18,083		—	—		—	—	—		—
Interest payable – Non-convertible notes	US$	421		4.054		1,706		US$	39		153	US$	37		144
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties	US$	11		4.054		44		—	—		—	—	—		—
CUSTOMER ADVANCES
Customer advances	—	—		—		—		—	—		—	US$	500		1,939
OTHER LIABILITIES
Premiums collected	US$	598		4.054		2,424		US$	151		595	US$	6		23
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties	US$	13		4.054		53		US$	8,374		32,917	US$	8,255		32,012
NON-CURRENT LIABILITIES
LOANS
Non-convertible notes class IV	US$	13,382		4.054		54,249		—	—		—	—	—		—
Non-convertible notes class VI	US$	32,348		4.054		131,139		—	—		—	—	—		—
Non-convertible notes class VII	US$	2,079		4.054		8,430		—	—		—	—	—		—
Subsidiaries, related companies Law No. 19,550 Section 33 and related parties	US$	2,500		4.054		10,135		—	—		—	—	—		—
OTHER LIABILITIES
Advances for concession of rights	US$	813		4.054		3,299		US$	813		3,166	—	—		—

Total liabilities	US$	106,541				431,916		US$	55,149		216,759	US$	67,830		263,045

US$: US Dollars

148

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Information submitted in compliance with Section 64, subsection B of Law No. 19,550

Corresponding to the nine-month periods

ended March 31, 2011 and 2010

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

(in thousands of pesos - Notes 1 and 2)

Schedule H


	Operating Expenses
Items	Crops		Beef cattle		Milk		Others		Total		Selling Expenses		Administrative Expenses		Total as of March 31, 2011		Total as of March 31, 2010
Directors’ fees		—		—		—		—		—		—		1,445		1,445		651
Fees and payments for services		—		—		—		—		—		—		2,373		2,373		2,207
Salaries, annual bonus and social security		2,113		4,219		3,459		41		9,832		—		15,227		25,059		23,564
Taxes, rates and contributions		411		322		121		—		854		—		2,614		3,468		2,504
Gross sales taxes		—		—		—		—		—		6,018		—		6,018		2,418
Doubtful accounts		—		—		—		—		—		6		—		6		—
Office and administrative expenses		—		—		—		—		—		—		4,706		4,706		4,266
Bank commissions and expenses		—		—		—		—		—		—		967		967		986
Depreciation of property and equipment		2,774		1,292		868		5		4,939		—		208		5,147		4,334
Depreciation of Intangible assets		—		—		—		—		—		—		564		564		—
Vehicle and traveling expenses		336		424		119		—		879		—		1,067		1,946		1,588
Spare parts and repairs		463		885		626		10		1,984		—		53		2,037		3,489
Insurance		153		195		49		4		401		—		380		781		577
Benefits to employees		166		456		276		—		898		—		858		1,756		1,134
Livestock expenses (1)		—		9,149		—		—		9,149		902		—		10,051		7,086
Dairy farm expenses (2)		—		—		11,803		—		11,803		469		—		12,272		8,498
Agricultural expenses (3)		47,112		—		—		2,591		49,703		22,257		—		71,960		34,812
General expenses		890		709		717		—		2,316		—		—		2,316		2,246
Health and safety costs		106		41		3		138		288		—		29		317		3

Total as of March 31, 2011		54,524		17,692		18,041		2,789		93,046		29,652		30,491		153,189		—

Total as of March 31, 2010		27,080		15,281		14,213		5,294		61,868		11,211		27,284		—		100,363

(1)	Includes cattle food and additives, lodging, animal health and others.

(2)	Includes cattle food and additives, animal health and others.

(3)	Includes seeds, agrochemical, irrigation, services hired, leases and others.

149

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Additional Information to the Notes to the Financial Statements

(in thousands of pesos)

1.	LEGAL FRAMEWORK

There are no specific significant legal regimes that would imply contingent suspension or application of the benefits included in these regulations.

2.	RELEVANT MODIFICATONS IN THE COMPANY’S ACTIVITIES

They are detailed in the Business Highlight, which is attached to the present financial statements.

3.	CLASSIFICATION OF ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES ACCORDING TO THEIR MATURITY

Trade accounts receivable and Other receivables without a due date as of March 31, 2011:


					Section 33 Societies Law 19,550
					Agro-Uranga S.A.
	Trade Accounts receivables		Other receivables		Other Credits
Current		322		23		327
Not current		—		53,838		—

Trade accounts receivable and Other receivables to fall due as of March 31, 2011:

Law No. 19,550 Section 33

Maturity

FyO.Com

Cyrsa S.A.

Cactus

Acres

Cresca S.A.

EAASA

Agro-
Uranga
S.A.

BrasilAgro

Trade
accounts
receivable

06.30.11

36,780

21,641

198

669

682

415

195

150

Cresud Sociedad Anónima, Comercial,

Inmobiliaria, Financiera y Agropecuaria

Additional Information to the Notes to the Financial Statements

(in thousands of pesos)

3.	(Continued)


			Law No. 19,550 Section 33
Maturity	Other Receivables		Ombú		Yuchan		Yatay		Acres		IRSA		APSA		Helmir S.A.		Tarshop S.A.		Northagro S.A.		Pluriagro S.A.		EAASA		Emprendimiento Recoleta S.A.
Maturity	Other Receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables
06.30.11		23,308		—		—		—		—		4,188		9,453		9,949		191		—		—		24		50
09.30.11		4,045		—		—		—		—		—		—		—		—		317		317		—		—
12.31.11		9,060		17,617		9,426		8,337		303		—		—		—		—		—		—		—		—
03.31.12		11,272		—		—		—		4,505		—		—		—		—		—		—		—		—

4.	CLASSIFICATION OF DEBTS ACCORDING TO THEIR MATURITY

There are no past due debts as of March 31, 2011.

Debts without a due date as of March 31, 2011.


	Trade accounts payable		Short-term debt		Taxes payable		Other liabilities		Law No. 19,550 Section 33				Provisions
									Cactus		EAASA
									Other liabilities		Other liabilities
Current		—		158,613		—		—		—		—		—
Non-current		—		—		95,356		3,443		2,126		2		1,678

Debts to fall due as of March 31, 2011:

Law No. 19,550 Section 33

Agro-Uranga
S.A.

FyO.Com

Cactus

Maturity

Trade accounts
payable

06.30.11

58,716

9,676

124

151

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Additional Information to the Notes to the Financial Statements

(in thousands of pesos)

4.	(Continued)

Debts to fall due as of March 31, 2011.


			Law No. 19,550 Section 33								Law No. 19,550 Section 33
Maturity	Short-term debt		Emprendimiento Recoleta S.A.		Salaries and social security payable		Taxes payables		Other liabilities		IRSA		Nuevas Fronteras S.A.		Panamerican Mall S.A.		Cyrsa S.A.		APSA
Maturity	Short-term debt		Short-term debt		Salaries and social security payable		Taxes payables		Other liabilities		Other liabilities		Other liabilities		Other liabilities		Other liabilities		Other liabilities
06.30.11		133,904		44		4,491		7,688		3,171		7,197		4		5		46		13,807
09.30.11		19,686		—		11,372		76		3,880		—		—		—		—		—
12.31.11		14,594		—		—		3,240		1,087		—		—		—		—		—
03.31.12		14,594		—		3,223		76		14		—		—		—		—		—
06.30.12		119,006		2,534		—		—		—		—		—		—		—		—
09.30.12		95,250		2,534		—		—		—		—		—		—		—		—
12.31.12		68,177		2,534		—		—		—		—		—		—		—		—
03.31.13		41,066		2,533		—		—		—		—		—		—		—		—

5.	CLASSIFICATION OF ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES ACCORDING TO THEIR FINANCIAL EFFECTS


			Law No. 19,550 Section 33
			FyO.Com		Cyrsa S.A.		BrasilAgro		Cactus		Acres		Cresca S.A.		Agro- Uranga S.A.		FyO.Com
	Trade accounts receivable		Trade accounts receivable		Trade accounts receivable		Trade accounts receivable		Trade accounts receivable		Trade accounts receivable		Trade accounts receivable		Trade accounts receivable		Trade accounts receivable
In Pesos		29,077		17,272		12		16		192		669		—		195		415
In US Dollars		8,025		4,369		9		—		6		—		682		—		—


			Law No. 19,550 Section 33
			Agro- Uranga S.A.		Tarshop S.A.		Ombú		Acres		Helmir S.A.		Yuchan		Yatay		APSA		IRSA		Northagro S.A.		Pluriagro S.A.		EAASA		Emprendimiento Recoleta S.A.
	Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables
In Pesos		100,150		—		191		—		—		—		—		—		9,453		4,188		317		317		24		50
In US Dollars		1,396		327		—		17,617		4,808		9,949		9,426		8,337		—		—		—		—		—		—

152

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Additional Information to the Notes to the Financial Statements

(in thousands of pesos)

5.	(Continued)

All Accounts receivable and Other receivables are not subject to adjustment clauses.


			Law No. 19,550 Section 33
			FyO.Com		Cyrsa S.A.		BrasilAgro		Cactus		Acres		Cresca S.A.		Agro-Uranga S.A.		EAASA
	Trade Accounts receivable		Trade Accounts receivable		Trade Accounts receivable		Trade Accounts receivable		Trade Accounts receivable		Trade Accounts receivable		Trade Accounts receivable		Trade Accounts receivable		Trade Accounts receivable
Outstanding balances accruing interests		—		—		—		—		—		—		—		—		—
Outstanding balances not accruing interests		37,102		21,641		21		16		198		669		682		195		415


			Law No. 19,550 Section 33
			Tarshop S.A.		Ombú		AgroUranga S.A.		Helmir S.A.		Acres		Yuchan		Yatay		APSA		IRSA		Northagro S.A.		Pluriagro S.A.		EAASA		Emprendi miento Recoleta S.A.
	Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables		Other receivables
Outstanding balances accruing interests		2,210		—		17,018		—		9,830		4,505		9,115		8,053		—		—		—		—		—		—
Outstanding balances not accruing interests		99,336		191		599		327		119		303		311		284		9,453		4,188		317		317		24		50

6.	CLASSIFICATION OF DEBTS ACCORDING TO THEIR FINANCIAL EFFECTS


			Law No. 19,550 Section 33
			FyO.Com		Agro-Uranga S.A.		Cactus
	Trade accounts payable		Trade accounts payable		Trade accounts payable		Trade accounts payable
In Pesos		16,723		—		7		124
In US Dollars		41,993		9,676		—		—

153

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Additional Information to the Notes to the Financial Statements

(in thousands of pesos)

6.	(Continued)


			Law No. 19,550 Section 33								Law No. 19,550
			Emprendimiento Recoleta S.A.		Salaries and						IRSA		EAASA		Nuevas Fronteras S.A.		Panamerican Mall S.A.		Cactus		Cyrsa S.A.		APSA
	Short-term debt		Short-term debt		social security payable		Taxes payable		Other liabilities		Other liabilities		Other liabilities		Other liabilities		Other liabilities		Other liabilities		Other liabilities		Other liabilities		Provisions
In Pesos		300,598		—		19,086		106,436		5,872		7,144		2		4		5		2,126		46		13,807		1,678
In US Dollars		364,292		10,179		—		—		5,723		53		—		—		—		—		—		—		—

All outstanding debts are not subject to adjustment clauses.


			Law No. 19,550 Section 33
			Agro-Uranga S.A.		FyO.Com		Cactus
	Trade accounts payable		Trade accounts payable		Trade accounts payable		Trade accounts payable
Outstanding balances accruing interests		—		—		—		—
Outstanding balances not accruing interests		58,716		7		9,676		124


			Law No. 19,550 Section 33										Law No. 19,550 Section 33
			Emprendimiento Recoleta S.A.		Salaries and						IRSA		Cactus		EAASA		Nuevas Fronteras S.A.		Cyrsa S.A.		Panamerican Mall S.A.		APSA
	Short-term debt		Short-term debt		social security payable		Taxes payable		Other liabilities		Other liabilities		Other liabilities		Other liabilities		Other liabilities		Other liabilities		Other liabilities		Other liabilities		Provisions
Outstanding balances accruing interests		656,270		10,135		—		—		—		—		—		—		—		—		—		—		—
Outstanding balances not accruing interests		8,620		44		19,086		106,436		11,595		7,197		2,126		2		4		46		5		13,807		1,678

154

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Additional Information to the Notes to the Financial Statements

(in thousands of pesos)

7.	INTEREST IN OTHER COMPANIES Law No. 19,550 Section 33

Interests in other companies’ capital and the number of votes held in those companies governed by Law No. 19,550 Section 33 are explained in Note 2 to the consolidated financial statements and intercompany balances as of March 31, 2011 are described in captions 4 and 5 above.

8.	RECEIVABLES FROM OR LOANS TO DIRECTORS AND STATUTORY AUDIT COMMITTEE MEMBERS

As of March 31, 2011 there were advance payments to directors for Ps. 537, and there were no receivables due from or loans to Statutory Auditors and relatives up to and including second degree, of directors and Statutory Auditors.

9.	PHYSICAL 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.

10.

VALUATION OF INVENTORIES

We further inform the sources for the information used to calculate the fair value:

Cattle for fattening, valued at the market value net of estimated sale expenses: quotation in Mercado de Hacienda de Liniers and other representative of the market.

Cattle for raising and daily production valued at its replacement cost: according to specific appraisals made by renowned experts.

Crops: official quotation of the Cámara Arbitral de Cereales for the port closest to the warehouse, published by media of wide circulation (Diario La Nación) net of estimated sale expenses.

The remaining inventory stated at its replacement cost:

•

Seeds, forage and materials: replacement cost published by a well-known magazine (Revista Márgenes Agropecuarios).

•

Unharvested crops: replacement cost of goods and services needed to obtain similar assets, which does not exceed the net realization value as of each period-end.

11.

TECHNICAL REVALUATION OF FIXED ASSETS

There are no fixed assets subject to technical revaluation.

12.

OBSOLETE FIXED ASSETS

155

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

Additional Information to the Notes to the Financial Statements

(in thousands of pesos)

There are no obsolete fixed assets with accounting value.

13.

EQUITY INTERESTS IN OTHER COMPANIES

There are no equity interests in other companies in excess of the provisions of Law No. 19,550 Section 31.

14.

RECOVERABLE VALUES

The recoverable value of the inventory under consideration is the higher between the net realizable value (selling price at the end of the year less estimated selling expenses) and the economic use value determined.

15.

INSURANCES

The types of insurance used by the company are the following:


Insured property	Risk covered	Amount insured Pesos		Book value Pesos
Buildings, machinery, silos, installation and furniture and equipment	Theft, fire and technical insurance		123,647		40,771
Vehicles	Third parties, theft, fire and civil liability		4,485		1,744

16.

CONTINGENCIES

As of March 31, 2011 there are no contingent situations that have not been accounted for or adequately exposed in notes according to accounting standards.

17.

IRREVOCABLE CONTRIBUTIONS TO CAPITAL ON ACCOUNT OF FUTURE SUBSCRIPTIONS

None.

18.

DIVIDENDS ON PREFERED STOCK

There are no cumulative dividends not paid on preferred stock.

19.

LIMITATIONS OF PROFIT DISTRIBUTIONS

See Note 11 to the Financial Statements.

156

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

BUSINESS HIGHLIGHTS

Comparative Shareholders’ Equity Structure


	As of March 31, 2011		As of March 31, 2010		As of March 31, 2009		As of March 31, 2008		As of March 31, 2007
Current Assets		1,598,120		1,323,626		1,003,003		918,634		193,610
Non-current Assets		6,367,991		5,356,687		4,522,443		1,146,824		846,702

		7,966,111		6,680,313		5,525,446		2,065,458		1,040,312

Current Liabilities		1,957,881		1,751,452		1,078,212		272,020		161,926
Non-current Liabilities		2,483,753		1,386,374		1,488,160		45,536		68,831

		4,441,634		3,137,826		2,566,372		317,556		230,757

Minority Interest		1,423,532		1,577,679		1,290,582		1,238		495

Shareholders’ Equity		2,100,945		1,964,808		1,668,492		1,746,664		809,060

		7,966,111		6,680,313		5,525,446		2,065,458		1,040,312

Comparative Income Structure


	As of March 31, 2011			As of March 31, 2010			As of March 31, 2009			As of March 31, 2008			As of March 31, 2007
Operating income		512,602			416,609			108,917			33,777			12,728
Financial and holding results		(234,440	)		(91,645	)		(25,469	)		(27,328	)		(8,837	)
Other income and expenses, net and gain equity investees		112,017			161,165			(71,805	)		16,936			37,189
Management agreement fees		(15,751	)		(20,446	)		(493	)		(2,976	)		(4,080	)

Operating net income		374,428			465,683			11,150			20,409			37,000
Income tax (expense) benefit		(89,149	)		(105,271	)		(32,466	)		7,561			(348	)
Minority Interest		(143,517	)		(175,755	)		25,987			(344	)		64

Net income		141,762			184,657			4,671			27,626			36,716

Production volume


	Three-month period March 31, 2011		Accumulated July 1, 2010 to March 31, 2011		Three-month period March 31, 2010		Accumulated July 1, 2009 to March 31, 2010		Three-month period March 31, 2009		Accumulated July 1, 2008 to March 31, 2009		Three-month period March 31, 2008		Accumulated July 1, 2007 to March 31, 2008		Three-month period March 31, 2007		Accumulated July 1, 2006 to March 31, 2007
Beef Cattle (in Kgs.)		1,993,901		4,999,710		2,060,565		4,303,565		2,548,680		5,467,570		2,347,510		7,036,158		2,912,046		8,112,493

Butyraceous (in Kgs.)		148,790		617,576		170,054		609,302		154,936		578,272		175,087		564,708		137,260		455,048

Crops (in quintals)		479,193		1,355,891		375,014		807,150		432,628		815,371		303,840		605,600		498,654		696,735

157

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

BUSINESS HIGHLIGHTS

Sales volume


	Three-month period March 31, 2011		Accumulated July 1, 2010 to March 31, 2011		Three-month period March 31, 2010		Accumulated July 1, 2009 to March 31, 2010		Three-month period March 31, 2009		Accumulated July 1, 2008 to March 31, 2009		Three-month period March 31, 2008		Accumulated July 1, 2007 to March 31, 2008		Three-month period March 31, 2007		Accumulated July 1, 2006 to March 31, 2007
Beef Cattle (in Kgs.)		859,177		5,777,616		2,096,449		5,441,046		1,050,147		3,945,956		1,350,732		7,307,164		1,984,396		8,680,231

Butyraceous (in Kgs.)		148,790		617,576		170,054		609,302		154,936		578,272		175,087		564,708		137,260		455,048

Crops (in quintals)		272,189		1,622,589		206,677		1,237,747		238,144		1,328,279		303,479		962,012		90,961		403,518

Local Market


	Three-month period March 31, 2011		Accumulated July 1, 2010 to March 31, 2011		Three-month period March 31, 2010		Accumulated July 1, 2009 to March 31, 2010		Three-month period March 31, 2009		Accumulated July 1, 2008 to March 31, 2009		Three-month period March 31, 2008		Accumulated July 1, 2007 to March 31, 2008		Three-month period March 31, 2007		Accumulated July 1, 2006 to March 31, 2007
Beef Cattle (in Kgs.)		859,177		5,777,616		2,096,449		5,441,046		1,050,147		3,945,956		1,350,732		7,307,164		1,984,396		8,680,231

Butyraceous (in Kgs.)		148,790		617,576		170,054		609,302		154,936		578,272		175,087		564,708		137,260		455,048

Crops (in quintals)		272,189		1,622,589		206,677		1,237,747		238,144		1,328,279		303,479		962,012		90,961		403,518

Export (not applicable)

Ratios


	As of March 31, 2011		As of March 31, 2010		As of March 31, 2009		As of March 31, 2008		As of March 31, 2007
Liquidity		0.82		0.76		0.93		3.377		1.196
Solvency		0.47		0.63		0.65		5.500		3.506
Non-current assets to assets		0.80		0.80		0.82		0.555		0.814
Return on Equity (1)		0.07		0.10		0.00		0.021		0.051

(1)	Result of the year divided average shareholder’s equity.

Progress in complying with the IFRS implementation plan

On April 29, 2010, the Company’s Board of Directors approved a specific plan to implement the IFRS (International Financial Reporting Standards). As established in such plan, the Company started training its personnel from its accounting and tax areas, and the personnel from most of its affiliates and related companies, planning to complete this training during fiscal year 2011. On the other hand, the Company is working on the initial process to diagnose differences in standards.

As a result of monitoring the specific IFRS implementation plan, the Board of Directors has not become aware of any circumstance requiring amendments to such plan or indicating significant departure from the proposed goals and terms.

158

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

BUSINESS HIGHLIGHTS

Buenos Aires, May 12, 2011 - Cresud S.A.C.I.F. y A. (Nasdaq: CRESY – BASE: CRES), one of the leading agricultural companies in Argentina, announces today its results for the first nine months of fiscal year 2011 ended March 31, 2011.

Consolidated agribusiness sales for the period amounted to Ps. 310.0 million, 94.4% higher than those posted for the first nine months of the previous fiscal year. This increase was caused mainly by a 63% rise in the sales of crops and a 108.3% increase in the sales of beef cattle compared to the same period of the previous fiscal year.

Agribusiness production revenues amounted to Ps. 156.4 million in the period ended March 31, 2011, 94.7% higher than those recorded in the same period of the previous fiscal year. The increase is explained mainly by a 105.1% rise in crop production and a 128.8% increase in the beef cattle segment.

Consolidated sales in the real estate business were Ps. 1,013.5 million for the nine-month period ended March 31, 2011. This represents a 5.1% improvement from the Ps. 964.1 million in sales for the same period of the previous fiscal year.

Gross profit during the first nine months of fiscal year 2011 amounted to Ps. 721.4 million compared to Ps. 621.5 million during the same period of the previous year, driven by the increase in the gross profit from the agribusiness segment.

Operating results for the period showed a Ps. 512.6 million profit, composed of operating income of Ps. 411.7 million in IRSA Inversiones y Representaciones Sociedad Anónima (“IRSA”)’s segments for the first nine months of fiscal year 2011 and an Ps. 109.8 million profit from Cresud’s agribusiness activities for the same period. This represents an improvement of Ps. 96.0 million as compared to the same period of the previous fiscal year, explained mainly by an increase of Ps. 77.2 million in agribusiness operating results as a consequence of the sale of the “La Juanita” farm, previously reported, and higher prices and margins in the beef cattle segment.

Net income for the first nine months of fiscal year 2011 amounted to Ps. 141.8 million, compared to an Ps. 184.7 million income posted in the same period of the previous fiscal year. This is explained mainly by the higher financial burden resulting from the issuance of debt securities by our subsidiary IRSA and lower results from our interest in subsidiaries.

159

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

BUSINESS HIGHLIGHTS

Main indicators¹

For the nine-month periods ended March 31, 2011 and 2010:


Description		9 months ended March 31, 2011		9 months ended March 31,2010		%
Sales
Wheat			17,647		7.624		131.5	%
Corn			82,585		55.932		47.7	%
Sunflower			4,793		10.667		(55.1	%)
Soybean			36,033		31.759		13.5	%
Other			21,201		17.793		19.2	%

Total Sales - Crops (tons)			162,259		123,775		31.1	%

Sales - Cattle Beef (tons)			6,197		5,526		12.1	%

Sales - Milk (thousands of liters)			15,517		15,881		(2.3	%)

Production
Wheat			16,367		11,636		40.7	%
Corn			63,740		39,773		60.3	%
Sunflower			13,462		7,188		87.3	%
Soybean			26,143		18,056		44.8	%
Other			15,877		4,062		290.9	%

Total Production - Crops (tons)			135,589		80,715		68,0	%

Production - Cattle Beef (tons)			5,168		4,304		20,1	%

Production - Milk (thousands of liters)			15,812		16,134		(2,0	%)

Exploited Surface Area (in hectares)
Crops	Own Farms²		58,301		47,630		22.4	%
	Leased Farms		52,205		42,996		21.4	%
	Farms under concession		10,401		10,832		(4.0	%)
	Own Farms leased to third parties		8,705		6,391		36.2	%
Cattle Beef	Own Farms		89,610		103,370		(13.3	%)
	Leased Farms		12,635		27,388		(53.9	%)
	Own Farms leased to third parties		1,143		1,143		0.0	%
Milk farm	Own Farms		3,369		4,637		(27.3	%)
Sheep	Own Farms		100,911		100,911		0.0	%
Land Reserves (in hectares)
	Own Farms		224,819		229,843		(2.2	%)
	Farms under concession		114,463		116,032		(1.4	%)
Surface under irrigation (in hectares)
	Own Farms		2,306		1,795		28.4	%
	Own Farms leased to third parties		1,457		1,967		(26.0	%)
	Leased Farms		—		—		0.0	%
Storage Capacity (in tons)
	Own Plants		10,000		10,000		0.0	%
	Leased Plants		—		—		0.0	%
Stock of cattle heads
Breeding stock			66,300		68,205		(2.8	%)
Winter grazing stock			8,456		18,271		(53.7	%)
Milk farm stock			7,417		9,026		(17.8	%)

Total cattle (heads)			82,173		95,502		(14.0	%)

Daily average milking cows (heads)			2,990		3,213		(6.9	%)

¹	Does not include Agro-Uranga S.A. (35.72% of 8,299 hectares).

²	Includes the “San Cayetano”, “San Rafael”, “La Fon Fon” and “Las Londras” farms, respectively, located in Santa Cruz, Bolivia, and the “Jerovia” farm, located in the District of Boquerón, Republic of Paraguay.

160

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

BUSINESS HIGHLIGHTS

Summary of Operations

Crops

•

According to the USDA, Argentine soybean production for this season is expected to reach 49 million tons. Corn production is estimated at 22 million tons, whereas wheat would reach 15 million. In terms of planted surface area, the area planted with soybean is expected to remain steady at 18.6 million hectares during the 2011/12 season.

•

We have 58,301 hectares in operation in our own farms, 52,205 hectares in leased farms and 10,401 hectares in farms under concession, totaling approximately 120,907 hectares.

•

During this season we planted approximately 8,000 hectares of wheat, 43,000 hectares of soybean and 34,000 hectares of corn in Argentina. In Bolivia, thanks to double harvesting we were able to plant during the summer season, reaching approximately 15,500 hectares of soybean and 4,000 hectares of corn.

•

As of May 12, 2011, the date of this earnings release, harvesting activities are at an advanced stage. We have harvested 71% of the hectares planted with soybean, 34% of the hectares planted with corn and 100% of the hectares planted with wheat and sunflower with plentiful yields; therefore, a large portion of the crop production results will be recorded during the fourth quarter of this fiscal year.

•

If we consider the exploited hectares operated by BrasilAgro and AgroUranga S.A., the aggregate planted surface area would stand at approximately 187 thousand hectares, an increase of more than 20% compared to the hectares in operation in the previous season.

•

Production revenues rose 105.1%, from Ps. 49.3 million to Ps. 101.1 million. This increase reflects a 68.0% increase in production amounts and to a 22.0% extent, higher prices, reaching an average price per ton of Ps. 745.0. In this way, we achieved a production result of Ps. 23.8 million.

•

Sales revenues rose 63.0% as compared to the same period in the previous fiscal year, from Ps. 83.6 million to Ps. 136.2 million. This increase is explained by a 31.1% improvement in sales volumes and to an 24.3% extent, by higher prices, achieving an average sales price of Ps. 839 per ton. Therefore, income from sales tripled as compared to the same period of the previous fiscal year, from Ps. 6.2 million to Ps. 19.2 million.

•

Gross profit for the period increased significantly, from Ps. 6.1 million to Ps. 43.1 million.

The following table shows this season’s ton production already committed for sale:


	Soybean		Corn
Tons sold³		58,800		138,630
USD sale price⁴		263		166

³	As of March 31, 2011

⁴	Local sale price, net of export withholdings

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Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

BUSINESS HIGHLIGHTS

Beef Cattle

•

During this nine-month period live steer prices increased by 50% in Argentina. This improvement in prices has resulted in a reduction in heifer slaughtering rates, which experienced a year-on-year decrease of 15% in February⁵.

•

As of March 31, 2011 we had 102,245 hectares allocated to beef cattle production.

•

Sales revenues doubled as compared to the same period of the previous fiscal year, from Ps. 21.1 million to Ps. 44.0 million. This increase is explained by a 12.1% improvement in amounts sold and to an 85.8% extent, by higher prices, achieving an average sale price of Ps. 7.10 per kg.

•

Production revenues increased by 128.8% as compared to the same period of the previous year, from Ps. 13.5 million to Ps. 30.8 million. This increase is explained by a 20.1% improvement in amounts produced and to a 90.6% extent, by higher prices.

•

Gross profit improved from an Ps. 0.7 million loss in the first nine months of the previous fiscal year to an Ps. 13.4 million profit in this period, explained by an improvement in production margins.

•

Apart from the improvement in operating margins shown by this segment, strong holding results have been posted again, thanks to the appreciation of the stock experienced as a consequence of higher beef cattle prices.

Milk

•

Prices showed a year-on-year increase of 39%⁶.

•

Gross profit in the milk segment amounted to an income of Ps. 6.4 million in the first nine months of fiscal year 2011, compared to an income of Ps. 3.4 million in the same period of the previous fiscal year. This improvement is explained by higher production revenues, as the 2.0% fall in the liters of milk produced was more than offset by a rise of approximately 42.8% in average milk prices during the period as compared to the same period in the previous fiscal year.

•

The drop in milk production is explained by the sale of the “La Juanita” farm; however, we have optimized our herds, concentrating milk production in the “El Tigre” dairy facility.

Purchase and Sale of Farms

On March 2, 2011, the Company executed a title deed whereby it purchased a 40% interest in a rural property located in the District of Perdriel, Department of Luján de Cuyo, Province of Mendoza, with an area of approximately 943 hectares.

Moreover, on September 3, 2010, Cresud had executed a title deed whereby it sold and surrendered possession of the “La Juanita” farm.

⁵	IPCVA and MINAGRI data for the March 2010-March 2011 period.

⁶	Source: INFORTAMBO, for the March 2010-March 2011 period.

162

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

BUSINESS HIGHLIGHTS

The transaction was agreed for a total price of USD 18.0 million. The sale resulted in a gain of approximately Ps. 49.4 million.

Development of marginal lands


In Hectares	ANTA		Los Pozos		La Esmeralda		CRESCA		Total
Area under development in FY11, to start production in FY12		2,637		8,000		140		6,201		16,914

International Expansion

BrasilAgro

BrasilAgro has ended its summer planting for the 2010/2011 crop season with 58,575 hectares planted, as per the following breakdown: 39,201 hectares of soybean, 6,430 of corn, rice and cotton, 4,405 of pastures and 8,539 hectares of sugar cane.

During this nine-month period, BrasilAgro increased its net sales of crops by 18.7% as compared to the same period in the previous fiscal year, from BRL 18.7 million to BRL 22.2 million, as a result of the increase in planted areas and yields. In addition, sugar cane was added during this season, resulting in net sales of BRL 21.4 million.

On January 3, 2011, BrasilAgro filed a prospectus with the Brazilian Securities Commission (CVM) for the primary public offering of common shares. The capital increase related to such offering must be dealt with and approved by the CVM and the Board of Directors of BrasilAgro.

Execution of Addendum to Stock Purchase Agreement with Tarpon

In October 2010, Cresud directly and indirectly purchased 9,581,750 common shares of BrasilAgro - Companhia Brasileira Propiedades Agrícolas (“BrasilAgro”). As consideration, Cresud paid BRL 76.1 million between October and December, and the price balance, of BRL 52.6 million, was paid on April 27, 2011. 64,000 first issue warrants and 64,000 second issue warrants were also purchased. Therefore, at present Cresud holds a 35.75% interest in BrasilAgro.

IRSA Inversiones y Representaciones Sociedad Anónima

As of March 31, 2011, our equity interest in IRSA was 57.5%.

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, including:

•

The acquisition, development and operation of shopping centers, through its 94.9% interest 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 12 shopping centers with 300,000 square meters of Gross Leaseable Area.

163

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

BUSINESS HIGHLIGHTS

•

The acquisition, development and exploitation of office buildings and other non-shopping center properties primarily for rental, for which purpose it has over 150,000 square meters of office leaseable space.

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The acquisition and development of residential properties and the acquisition of undeveloped land reserves for future development or sale.

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The acquisition and exploitation of luxury hotels.

Moreover, IRSA currently owns a 29.77% interest in Banco Hipotecario, one of the leading financial institutions in Argentina.

The following information has been extracted from the Consolidated Financial Statements of our controlled company IRSA as of March 31, 2011:


in Ps. M	IIIQ 11		IIIQ 10		var YoY (%)			9 M 11		9 M 10		var YoY (%)
Revenues		315.7		295.5		7	%		1,013.4		952.1		6	%
Operating Income		120.6		101.3		19	%		421.3		393.1		7	%
Depreciation and Amortization		39.1		39.8		-2	%		118.3		120.6		-2	%
EBITDA⁷		159.7		141.1		13	%		539.5		513.7		5	%

Net Income		46.7		35.4		32	%		223.2		299.7		-26	%

Our stake in IRSA has a high impact on our results, therefore we recommend the reading of detailed information on IRSA provided in its webpage (www.irsa.com.ar), in the Argentine Comisión Nacional de Valores website (www.cnv.gob.ar) or in the Securities and Exchange Commission website (www.sec.gov).

Financial Debt from the Agribusiness Segment

Cresud

As of March 31, 2011 Cresud had borrowed a total of USD 206.7 million equivalent, without consolidating IRSA. The following table contains a breakdown of Cresud’s indebtedness.

⁷

EBITDA represents operating income plus depreciation and amortization (included in operating income). Our presentation of EBITDA does not reflect the methodology suggested by its acronym. We believe EBITDA provides investors with meaningful information with respect to our operating performance and facilitates comparisons to our historical operating results. However, our EBITDA measure has limitations as an analytical tool, and should not be considered in isolation, as an alternative to net income or as an indicator of our operating performance or as a substitute for analysis of our results as reported under Argentine GAAP. Some of these limitations include:

•

it does not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;

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it does not reflect changes in, or cash requirements for, our working capital needs;

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it does not reflect our interest expense, or the cash requirements to service the interest or principal payments of our debt;

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it does not reflect any cash income taxes or employees’ profit sharing we may be required to pay;

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it reflects the effect of non-recurring expenses, as well as investing gains and losses;

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it is not adjusted for all non-cash income or expense items that are reflected in restatements of changes in financial position; and

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other companies in our industry could calculate this measure differently than we do, which may limit its usefulness as a comparative measure.

Because of these limitations, our EBITDA measure should not be considered a measure of discretionary cash available to us to invest in the growth of our business or as a measure of cash that will be available to us to meet our obligations. EBITDA is not a recognized financial measure under Argentine GAAP. You should compensate for these limitations by relying principally on our Argentine GAAP results and using our EBITDA measurement supplementally.

164

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

BUSINESS HIGHLIGHTS

Type of Debt

Currency of
issuance

Outstanding
Amount⁸

Rate

Maturity date

Short-term debt

Ps.

45.8

Variable

Up to 90 days

Long-term debt

USD

2.2

Variable

Jan-14

Crop production financing

USD

37.2

Fixed

Up to 180 days

Series III Notes

Ps.

8.9

Badlar+4.0%

Apr-12

Series IV Notes

USD

17.9

Fixed - 7.75%

Jul-12

Series V Notes

Ps.

26.4

Badlar+3.75

Dec-12

Series VI Notes

USD

34.9

Fixed - 7.50%

Mar-13

Series VII Notes

USD

2.1

4.00% + Upside Soybean

Mar-13

BrasilAgro shares purchase⁹

BRL

31.2

—

Apr-11

Cresud’s Total Debt

206.6

Issue of Series V, VI and VII Notes

On March 3, three new series of notes were issued under Cresud’s USD 15,000,000 Global Note Program, for an amount equivalent to Ps. 255,726,138.

Interest Rate Swap

During March 2011, the Company entered into three interest rate swap agreements to hedge against the risk of changes in the interest rate agreed for the Series V Notes issued by Cresud. The average fixed rate payable is 14.117%.

Payment of Cash Dividends

On March 11, 2011, the Company’s board of directors approved the reallocation as interim dividends for the current fiscal year, of the item that had given rise to the dividend resolved upon by the shareholders’ meeting dated December 9, 2010. Such dividends were paid on January 7, 2011. The reallocation was ratified by the shareholders’ meeting dated April 12, 2011.

Prospects for next quarter

At global level, crop prices have shown a pause in their upward trend, experiencing a sideways movement in the past months. Grain inventory stocks relative to consumption levels are at historically lows in the United States. Over the next months, the final planted acreage in the northern hemisphere croplands will be defined, which will allow to forecast production for the next season.

On the other hand, the uncertainty related to the value of the various currencies resulting from the monetary flexibilization programs implemented by central banks at world level continues to boost the potential for appreciation of the real assets in Cresud’s portfolio: commodities and real estate.

At production level, Cresud’s prospects for the season’s end are positive. Expected crop yields for the harvest currently in progress will be good despite the La Niña weather effect, which was in turn offset by our products’ higher prices. Harvesting activities and sales are at an advanced stage as of the date of this release. Besides, the recovery in beef cattle and milk prices has propped up the margins from those activities.

⁸	Amounts stated in USD at a rate of 4.054 Ps. = 1 USD. Includes accrued interest.

⁹	Shown in the caption Other indebtedness in the Consolidated Balance sheet.

165

Cresud Sociedad Anónima,

Comercial, Inmobiliaria, Financiera y Agropecuaria

BUSINESS HIGHLIGHTS

As concerns our dairy business, we have concentrated milk production in our state-of-the-art dairy facility in El Tigre, where we have optimized our herds, focusing on improving production quality.

During this season we have increased our planted hectares, and we are developing more than 16,000 additional hectares to be placed into production in 2012 in our farms in Salta and Paraguay. In Argentina, we are making progress in our strategy of supplementing agriculture in our own farms with agricultural activities in leased farms, achieving satisfactory results in an attractive price environment.

As concerns Cresud’s regional expansion, the consummation of our purchase of Brasilagro’s stake marks a continuation in our strategy to penetrate in the region and increase production volumes in an improved market price scenario, in line with our objective of forming a regional portfolio with significant development and appreciation potential.

166

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

Report of Independent Auditors

To the Shareholders, President and Board of Directors of

Cresud Sociedad Anónima Comercial,

Inmobiliaria, Financiera y Agropecuaria

Legal address: Moreno 877 - floor 23

Autonomous City of Buenos Aires

CUIT 30-50930070-0

We have reviewed the balance sheets of Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria at March 31, 2011 and 2010, and the related statements of income, of changes in shareholders’ equity and of cash flows for the nine-month periods ended March 31, 2011 and 2010 and the complementary notes 1 to 27 and schedules A, B, C, E, F.1, F.2, G and H. Furthermore, we have reviewed the consolidated financial statements of Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria, at March 31, 2011 and 2010, and the related consolidated statements of income and of cash flows for the nine-month periods ended March, 2011 and 2010 and notes 1 to 16, which are presented as complementary information. These financial statements are the responsibility of the Company’s management.

We conducted our review in accordance with standards established by Technical Resolution No. 7 of the Argentine Federation of Professional Councils of Economic Sciences for limited reviews of financial statements. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

3.	Based on our work and our examinations of the financial statements of this Company and the consolidated financial statements for the years ended June 30, 2010 and 2009, on which we issued our unqualified report dated September 8, 2010, we report that:

The financial statements of Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria at March 31, 2011 and 2010 and its consolidated financial statements at those dates, set out in point 1, prepared in accordance with accounting standards prevailing in the Autonomous City of Buenos Aires, include all significant facts and circumstances of which we are aware, and we have no observations to make on them.

The comparative information included in the basic and consolidated balance sheets and the supplementary notes and schedules to the attached financial statements arise from Company financial statements at June 30, 2010.

4.	In accordance with current regulations, we report that:

167

the financial statements of Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria and its consolidated financial statements were transcribed to the “Inventory and Balance Sheet Book” and comply, within the field of our competence, with the Corporations Law and pertinent resolutions of the National Securities Commission;

the financial statements of Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria arise from official accounting records carried in all formal respects in accordance with legal requirements, that maintain the security and integrity conditions based on which they were authorized by the National Securities Commission;

we have read the business highlights, except for the chapter entitled “Progress in the accomplishment of the IFRS implementation plan”, and the additional information to the notes to the financial statements required by sect. 68 of the Buenos Aires Stock Exchange Regulations, on which, as regards those matters that are within our competence, we have no observations to make;

At March 31, 2011, the debt of Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria accrued in favor of the Argentine Integrated Social Security System according to the accounting records amounted to Ps. 1,776,206 none of which was claimable at that date.

Autonomous City of Buenos Aires, March 12, 2011.

PRICE WATERHOUSE & CO. S.R.L.

(Partner)

C.P.C.E.C.A.B.A. T° 1 F° 17

Dr. Norberto Fabián Montero

Public Accountant (U.B.A.)

C.P.C.E.C.A.B.A. Tº 167 Fº 179

168

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Buenos Aires, Argentina.

CRESUD SOCIEDAD ANONIMA COMERCIAL INMOBILIARIA

FINANCIERA Y AGROPECUARIA


By:	/S/ SAÚL ZANG
	Name:	Saúl Zang
	Title:	Vice Chairman of the Board of Directors

Dated: May 20, 2011