GENERAL SHOPPING AND OUTLETS DO BRASIL S.A.
Auditor's Review Report
Company and Consolidated Quarterly Information for the quarter ending September 30,2023
COTRIM & ASSOCIADOS Auditores Independentes SS
Rua Claudio Soares, 72 - 16º. Andar - Conj. 1602 - CEP 05422-030 - Fone: (011) 3062-9185 - São Paulo - SP E-Mail:cotrimauditores@terra.com.br
GENERAL SHOPPING AND OUTLETS DO BRASIL S.A.
Individual and consolidated financial statements
On September 30, 2023
Contents
Independent auditor's report on the individual financial statements and
Consolidated
Individual and consolidated balance sheets
Individual and consolidated statements of comprehensive income
Individual and consolidated statements of changes in equity
Individual and consolidated statements of cash flows - indirect method
Individual and consolidated statements of added value
Management's explanatory notes to the individual financial statements and consolidated
COTRIM & ASSOCIADOS Auditores Independentes SS
Rua Claudio Soares, 72 - 16º. Andar - Conj. 1602 - CEP 05422-030 - Fone: (011) 3062-9185 - São Paulo - SP E-Mail:cotrimauditores@terra.com.br
INDEPENDENT AUDITOR'S REPORT ON THE INDIVIDUAL AND CONSOLIDATED QUARTERLY FINANCIAL INFORMATION
To
Shareholders, Directors and Officers of
General Shopping e Outlets do Brasil S.A.
São Paulo - SP
Introduction
We have reviewed the individual and consolidated accounting information of General Shopping e Outlets do Brasil S.A., ("Company") identified as Individual and Consolidated and provided in the Quarterly Financial Information (ITR) Form for the quarter ending September 30, 2023. This includes the individual and consolidated balance sheets as of September 30, 2023, and the respective individual and consolidated statements of income, comprehensive income, changes in equity, and cash flow for the three-month and nine-month periods then ended, including a summary of significant accounting practices and other notes.
Management is responsible for the preparation of the individual and consolidated quarterly information, in line with Technical Announcement CPC 21 (R1) - Interim Statements and with international accounting standard IAS 34 - Interim Financial Reporting of the International Accounting Standards Board (IASB). Management is also responsible for submission of the said information in compliance with the standards issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of Interim Financial Information (ITR). Our responsibility is to state a conclusion on the said interim accounting information based on our review of it.
Scope of the review
We conducted our review in accordance with Brazilian and International Standards for the review of interim accounting information (NBC TR 2410 - "Revisão de Informações Intermediárias Executada pelo Auditor" and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity"). A review of interim information consists of making inquiries, primarily of the individuals responsible for financial and accounting matters, and applying analytical procedures and other review procedures. The scope of a review is significantly less comprehensive than that of an audit carried out in accordance with auditing standards, and therefore prevents us from being certain that we have become aware of all material matters that an audit might identify. Therefore, this is not the expression of an audit opinion.
COTRIM & ASSOCIADOS Auditores Independentes SS
Rua Claudio Soares, 72 - 16º. Andar - Conj. 1602 - CEP 05422-030 - Fone: (011) 3062-9185 - São Paulo - SP
E-Mail: cotrimauditores@terra.com.br
Conclusion on the individual and consolidated interim financial information
Based on our review, we are aware of no fact leading to the belief that the individual and consolidated quarterly information provided in the aforementioned Quarterly Information have not been prepared, in every material respect, in accordance with CPC 21 (R1) and IAS 34 as applicable to the preparation of Quarterly Information, and have not been presented in compliance with the standards set forth by the Brazilian Securities and Exchange Commission (CVM).
Emphasis
Material uncertainty Related to Operational Continuity
We draw attention to notes 2.1.2 and 2.1.3. to the individual an consolidated quarterly information, which indicate that the company incurred losses in the amount of R$ 28,758 thousand (and a loss of R$ 86,772 thousand in the fiscal year ending December 31, 2022) and, on that date, shareholders' equity was a negative R$ 840,571 thousand (a negative R$ 811,813 as of December 31, 2022) and the Company's consolidated current liabilities exceeded consolidated current assets by R$ 60,732 thousand (R$ 26,328 as of December 31, 2022).
According to the aforementioned notes, such events or circumstances may indicate the presence of uncertainty as to the Company's ability to continue operating, although these effects are mainly due to non-monetary factors with no cash effects, that is, a product of the impact of exchange rate variations on the principal of the Company's perpetual debt, which is US Dollar-denominated, but which, in line with the applicable accounting standards, are booked as financial expenses against the year's income despite not having cash effects and being final in nature. Our conclusion remains unchanged in connection with this matter.
Other matters
Individual and consolidated statements of added value
The quarterly accounting information at hand includes individual and consolidated added value information (DVA) for the nine-month period ending September 30, 2023, prepared under the responsibility of the Company's Management and provided as supplementary information for IAS 34 purposes. This information has undergone review procedures together with the review of individual and consolidated quarterly accounting information to determine whether or not they reconcile with the quarterly accounting information and accounting records, as applicable, and whether or not they are in form and content compliant with the criteria set forth in NBC TG 09 -
COTRIM & ASSOCIADOS Auditores Independentes SS
Rua Claudio Soares, 72 - 16º. Andar - Conj. 1602 - CEP 05422-030 - Fone: (011) 3062-9185 - São Paulo - SP
E-Mail: cotrimauditores@terra.com.br
Statement of Value Added. Based on our review, nothing has come to our attention that causes us to believe that these statements of added value have not been prepared, in all material aspects, in accordance with the criteria of the said Standard and consistently with the individual and consolidated quarterly accounting information taken as a whole.
São Paulo, November 13, 2023
Cotrim & Associados Auditores Independentes SS
CRC 2 SP 012.348/O-4
Wilson Carlos Bronze Cotrim
Accountant CRC 1 SP 096.274/O-9
COTRIM & ASSOCIADOS Auditores Independentes SS
Rua Claudio Soares, 72 - 16º. Andar - Conj. 1602 - CEP 05422-030 - Fone: (011) 3062-9185 - São Paulo - SP
E-Mail: cotrimauditores@terra.com.br
General Shopping e Outlets do Brasil S.A.
Balance sheet as of September 30, 2023 and December 31, 2022
(Amounts in thousands of Brazilian Reais except where otherwise indicated)
ASSETS
Company | Consolidated | ||||||||
Notes | 09/30/2023 | 12/31/2022 | 09/30/2023 | 12/31/2022 | |||||
Current Assets | |||||||||
Cash and cash equivalents | 3 | 46 | 26 | 94,301 | 127,042 | ||||
Accounts receivable | 4 | - | - | 31,687 | 33,715 | ||||
Taxes recoverable | 5 | 2 | 2 | 14,654 | 14,335 | ||||
Accounts receivable from property sales | 9 | 52,385 | 50,613 | ||||||
Other accounts receivable | 6 | 3,882 | 4,590 | 64,283 | 29,410 | ||||
Total current assets | 3,930 | 4,618 | 257,310 | 255,115 | |||||
Non-current assets | |||||||||
Accounts receivable | 4 | - | - | 564 | 695 | ||||
Related Parties | 7 | 2,896 | 26,414 | 56,924 | 76,639 | ||||
Loans receivable from third parties | - | - | 4,461 | 4,957 | |||||
Restricted deposits and guarantees | - | 409 | 158 | 9,916 | 9,564 | ||||
Financial investments | 3 | - | - | 476 | 437 | ||||
Other accounts receivable | 6 | 18,273 | 18,275 | 43,902 | 33,050 | ||||
21,578 | 44,847 | 116,243 | 125,342 | ||||||
Investment properties | 9 | - | - | 1,139,720 | 1,069,226 | ||||
Fixed assets | 10 | 914 | 856 | 26,992 | 26,696 | ||||
Intangible assets | 11 | 556 | 552 | 24,172 | 20,418 | ||||
1,470 | 1,408 | 1,190,884 | 1,116,340 | ||||||
Total non-current assets | 23,048 | 46,255 | 1,307,127 | 1,241,682 | |||||
Total assets | 26,978 | 50,873 | 1,564,437 | 1,496,797 | |||||
The accompanying notes are integral to the individual and consolidated financial statements. | 6 | ||||||||
General Shopping e Outlets do Brasil S.A.
Balance sheet as of September 30, 2023 and December 31, 2022
(Amounts in thousands of Brazilian Reais except where otherwise indicated)
LIABILITIES AND SHAREHOLDERS' EQUITY
Company | Consolidated | ||||||||||
Notes | 09/30/2023 | 12/31/2022 | 09/30/2023 | 12/31/2022 | |||||||
Current liabilities | |||||||||||
Suppliers | - | 708 | 1,453 | 16,358 | 7,752 | ||||||
Loans and financings | 12 | - | - | 16,453 | 13,449 | ||||||
Payroll and social charges | - | 1,887 | 1,508 | 3,009 | 2,305 | ||||||
Taxes, charges and contributions | 16 | 25,635 | 25,755 | 151,980 | 148,216 | ||||||
Installment taxes | 15 | 189 | 177 | 40,389 | 32,850 | ||||||
Real-estate credit bills (CCI) | 13 | - | - | 33,920 | 27,131 | ||||||
Related parties | 7 | 4,416 | 6,569 | 40,937 | 41,152 | ||||||
Assignment revenues to be appropriated | 17 | - | - | 4,174 | 5,095 | ||||||
Accounts payable on land purchases | - | - | - | - | 126 | ||||||
Other accounts payable | 14 | 70 | 64 | 10,822 | 3,367 | ||||||
Total current liabilities | 32,905 | 35,526 | 318,042 | 281,443 | |||||||
Non-current liabilities | |||||||||||
Loans and financing | 12 | - | - | 1,840,203 | 1,789,043 | ||||||
Assignment revenues to be appropriated | 17 | - | - | 6,535 | 9,465 | ||||||
Installment taxes | 15 | 149 | 270 | 107,491 | 107,929 | ||||||
Accounts payable on land purchases | - | - | 294 | 1,464 | |||||||
Deferred Income tax | 24 | - | - | 18,750 | 18,750 | ||||||
Provision for civil and labor liabilities | 18 | 123 | 147 | 3,822 | 3,903 | ||||||
Provision for investment losses | 8 | 834,372 | 826,743 | - | - | ||||||
Real-Estate Credit Bills (CCI) | 13 | - | - | 109,492 | 96,269 | ||||||
Other accounts payable | 14 | - | - | 379 | 344 | ||||||
Total non-current liabilities | 834,644 | 827,160 | 2,086,966 | 2,027,167 | |||||||
Shareholders' Equity | 19 | ||||||||||
Share capital | - | 385,064 | 385,064 | 385,064 | 385,064 | ||||||
Capital reserve | (1,907) | (1,907) | (1,907) | (1,907) | |||||||
Accumulated losses | - | (1,223,728) | (1,194,970) | (1,223,728) | (1,194,970) | ||||||
(840,571) | (811,813) | (840,571) | (811,813) | ||||||||
Total liabilities and shareholders' equity | 26,978 | 50,873 | 1,564,437 | 1,496,797 | |||||||
The accompanying notes are integral to the individual and consolidated financial statements. | 7 | ||||||||||
General Shopping e Outlets do Brasil S.A.
Statement of income (Loss)
For the three- and nine-month periods ending September 30, 2023 and 2022
(Amounts in thousands of Brazilian Reais, except value per share)
Company | Consolidated | |||||||||||||||
07/01/2023 to | 01/01/2023 to | 07/01/2022 to | 01/01/2022 to | 07/01/2023 to | 01/01/2023 to | 07/01/2022 to | 01/01/2022 to | |||||||||
Notes | 09/30/2023 | 09/30/2023 | 09/30/2022 | 09/30/2022 | 09/30/2023 | 09/30/2023 | 09/30/2022 | 09/30/2022 | ||||||||
Net operating income from rent and services | 20 | - | - | - | - | 39,018 | 116,206 | 35,914 | 113,011 | |||||||
Cost of rent and services provided | 21 | - | - | - | - | (12,117) | (35,895) | (11,419) | (32,185) | |||||||
Gross profit | - | - | - | - | 26,901 | 80,311 | 24,495 | 80,826 | ||||||||
Operating (expenses)/revenues | ||||||||||||||||
General and administrative | 22 | (6,729) | (20,965) | (6,668) | (19,944) | (13,003) | (45,909) | (11,301) | (37,867) | |||||||
Other operating revenues (expenses), net | 25 | - | - | - | (1,465) | (2,344) | 190 | (277) | (1,844) | |||||||
Equity in earnings of subsidiaries | 8 | (77,012) | (7,629) | (78,807) | (74,899) | - | - | - | - | |||||||
- | - | - | ||||||||||||||
Operating profit (loss) before financial income | (83,741) | (28,594) | (85,475) | (96,308) | 11,554 | 34,592 | 12,917 | 41,115 | ||||||||
Net financial income (loss) | 23 | (50) | (164) | (48) | (2,360) | (94,223) | (55,252) | (95,474) | (129,494) | |||||||
Income (loss) before taxes | (83,791) | (28,758) | (85,523) | (98,668) | (82,669) | (20,660) | (82,557) | (88,379) | ||||||||
Current Income tax | 24 | - | - | - | - | (1,122) | (8,098) | (2,966) | (14,982) | |||||||
Deferred Income tax | 24 | - | - | - | - | - | - | - | 4,693 | |||||||
Income (loss) for the period | (83,791) | (28,758) | (85,523) | (98,668) | (83,791) | (28,758) | (85,523) | (98,668) | ||||||||
Income (loss) allocated to: | ||||||||||||||||
Controlling interest | (83,791) | (28,758) | (85,523) | (98,668) | (83,791) | (28,758) | (85,523) | (98,668) | ||||||||
Non-controlling interest | - | - | - | - | - | - | - | - | ||||||||
Basic earnings (loss) per share - R$ | 19 | (44,68) | (15,33) | (45,60) | (52,61) | (44,68) | (15,33) | (45,60) | (52,61) | |||||||
The accompanying notes are integral to the individual and consolidated financial statements. | 8 |
General Shopping e Outlets do Brasil S.A.
Statement of comprehensive income
For the three- and nine-month periods ending September 30, 2023 and 2022
(Amounts in thousands of Brazilian Reais, except value per share)
Company | Consolidated | |||||||||||||||
07/01/2023 to | 01/01/2023 to | 07/01/2022 to | 01/01/2022 to | 07/01/2023 to | 01/01/2023 to | 07/01/2022 to | 01/01/2022 to | |||||||||
09/30/2023 | 09/30/2023 | 09/30/2022 | 09/30/2022 | 09/30/2023 | 09/30/2023 | 09/30/2022 | 09/30/2022 | |||||||||
Income (loss) for the period | (83,791) | (28,758) | (85,523) | (98,668) | (83,791) | (28,758) | (85,523) | (98,668) | ||||||||
Other comprehensive income to be re-categorized as profit or loss in | ||||||||||||||||
subsequent periods : | ||||||||||||||||
Other comprehensive income (loss) | - | - | - | - | ||||||||||||
Comprehensive income (loss) for the period | (83,791) | (28,758) | (85,523) | (98,668) | (83,791) | (28,758) | (85,523) | (98,668) | ||||||||
Total other comprehensive income (loss) allocated to: | ||||||||||||||||
Controlling interest | (83,791) | (28,758) | (85,523) | (98,668) | (83,791) | (28,758) | (85,523) | (98,668) | ||||||||
Non-controlling interest | - | - | - | - | - | - | - | - | ||||||||
(83,791) | (28,758) | (85,523) | (98,668) | (83,791) | (28,758) | (85,523) | (98,668) | |||||||||
The accompanying notes are integral to the individual and consolidated financial statements. | 9 | |||||||||||||||
General Shopping e Outlets do Brasil S.A.
Statement of changes in equity - Individual and Consolidated
Balance sheet as of September 30, 2023 and December 31, 2022
(Amounts in thousands of Brazilian Reais except where otherwise indicated)
Share Capital | Capital Reserve | ||||||||||||
Share issuance | Premium on shares | ||||||||||||
Share capital | Treasury shares | expenses | issued | Capital transaction | Accumulated losses | Total | |||||||
Balances as of January 1st, 2022 | 389,625 | (2,427) | (2,134) | 6,376 | (8,283) | (1,108,198) | (725,041) | ||||||
Income for the period | - | - | - | - | - | (98,668) | (98,668) | ||||||
Total comprehensive income (loss), net of taxes | - | - | - | - | - | (98,668) | (98,668) | ||||||
- | |||||||||||||
Balances as of September 30, 2022 | 389,625 | (2,427) | (2,134) | 6,376 | (8,283) | (1,206,866) | (823,709) | ||||||
Balances as of January 1st, 2023 | 389,625 | (2,427) | (2,134) | 6,376 | (8,283) | (1,194,970) | (811,813) | ||||||
Loss for the period | - | - | - | - | - | (28,758) | (28,758) | ||||||
Total comprehensive income (loss), net of taxes | - | - | - | - | - | (28,758) | (28,758) | ||||||
- | |||||||||||||
Balances as of September 30, 2023 | 389,625 | (2,427) | (2,134) | 6,376 | (8,283) | (1,223,728) | (840,571) | ||||||
- | |||||||||||||
- |
The accompanying notes are integral to the individual and consolidated financial statements. | 10 |
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General Shopping e Outlets Brasil SA published this content on 24 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 November 2023 15:23:31 UTC.