Management Report 2020 slide image

Management Report 2020

- SLC Agrícola ■■■ Management Report 2020 Income and social contribution taxes | It corresponds to the prepayments of In- come and social contribution taxes, which will be offset with taxes of the same nature, in addition to the negative balance of IRPJ and CSLL, which will be offset with federal taxes and contributions. Recoverable IRRF | Corresponds to withholding income tax on financial invest- ments. Throughout the year they are offset against the IRPJ debt, after closure, these credits are realizable by offsetting with federal taxes and contributions. ICMS, PIS and COFINS to be offset/recovered | These refer to credits generated in normal operations of the Company and its subsidiaries and may be offset with taxes of the same nature. The estimated realization of ICMS, PIS and COFINS sales taxes is evaluated by management based on estimated projections of sales of agricultural products, commercialization of ICMS tax credits and on compensation or offsetting of PIS and COFINS with other taxes generated by the Group's operation. The estimated terms of realization of these assets are described below. As of December 31, 2020, a provision was made in the amount of R$ 24,904, related to ICMS tax credits whose loss is estimated due to non-realization. The amount was recorded in Other operating expenses in the income statement for the year. Parent Company Deadline ICMS Up to 1 year 17,021 35,802 17,048 COFINS 7,621 45 PIS ICMS 1,693 9 21,243 46,966 Consolidated COFINS 10,875 5,017 PIS 2,262 1,150 23,882 8,024 77,895 2,715 10,381 593 2,295 20,876 112,967 11,101 26,993 2,223 5,635 1 to 2 years 2 to 3 years Over 3 years 10. Securities and credits receivable At December 31, 2020, the consolidated balance of securities receivable is com- prised of an amount of R$ 33,907 (R$ 76,905 at December 31, 2019) as follows: Balance at December 31, 2019 Monetary variation Withholding income tax Receipts Others¹ Balance at December 31, 2020 Portion classified in current assets Portion classified in non-current assets 1. Amount settled without cash effect. Consolidated 76,905 2,018 (672) (42,643) (1,701) 33,907 31,207 2,700 Sale of land in the subsidiaries Fazenda Paiaguás and Fazenda Parceiro | The subsidiaries Fazenda Paiaguás Empreendimentos Agrícolas Ltda. and Fazenda Parceiro Empreendimentos Agrícolas Ltda. In February 2018, the buyer sold 11,604 hectares of land to third parties in 2017, in the total amount of R$ 176,654, of which R$ 52,996 was received in that year, and the rest was depos- ited by the buyer, in February 2018, in a guaranteed account ("Escrow Account"), being invested in securities backed by an Interbank Deposit Certificate (CDI). The contract provided that some documental formalizations such as transfer of reserves, registration with the real estate registry with the unfolding of their registration and release of mortgages, in addition to the transfer of the funds to the Company itself, should be completed within 12 months of signing the contract, which occurred on December 20, 2017. The contract was postponed, in November 2018, in order to postpone the deadline for some documental formal- izations, such as transfer of reserves, registration in real estate registries with the unfolding of their registration and release of mortgages, in addition to agreeing on the transfer of the funds to the Company itself, in relation to the previous conditions already met, in the amount of R$ 63,789. 99
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