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FINANCIAL INSTRUMENTS - RISK MANAGEMENT

6 Months Ended

Dec. 31, 2023

FINANCIAL INSTRUMENTS - RISK MANAGEMENT

13. FINANCIAL INSTRUMENTS – RISK MANAGEMENT

Financial instruments by category

The following tables show additional information required under IFRS 7 on the financial assets and liabilities recorded as of December 31, 2023, and June 30, 2023.

Financial assets by category


			Mandatorily measured at fair
	Amortized cost		value through profit or loss
Financial asset	12/31/2023	06/30/2023	12/31/2023	06/30/2023
Cash and cash equivalents	24,332,260	48,129,194	69,677	—
Other financial assets	444,743	657,612	17,040,207	11,922,317
Trade receivables	199,666,283	158,006,474	—	—
Other receivables (*)	13,368,459	12,124,724	—	—
Total	237,811,745	218,918,004	17,109,884	11,922,317

(*)	Advances expenses and tax balances are not included.

Financial liabilities by category


			Mandatorily measured at fair
	Amortized cost		value through profit or loss
Financial liability	12/31/2023	06/30/2023	12/31/2023	06/30/2023
Trade and other payables	156,857,878	142,582,166	7,145,324	8,225,508
Borrowings	145,038,126	168,310,605	—	—
Secured notes	77,998,071	75,213,146	—	—
Lease liability	13,600,289	13,889,223	—	—
Consideration for acquisition of assets	6,684,278	4,993,256	—	—
Total	400,178,642	404,988,396	7,145,324	8,225,508

Financial instruments measured at fair value


Measurement at fair value at 12/31/2023	Level 1	Level 2	Level 3

Financial assets at fair value
US Treasury bills	—	—	—
Mutual funds	14,736,104	—	—
Other investments	2,304,103	—	—
Financial liability at fair value
Trade and other payables	—	7,145,324	—

Measurement at fair value at 06/30/2023	Level 1	Level 2	Level 3

Financial assets at fair value
US Treasury bills	9,163,298	—	—
Mutual funds	1,596,539	—	—
Other investments	1,162,480	—	—
Financial liability at fair value
Trade and other payables	—	8,225,508	—

Estimation of fair value

The fair value of marketable securities, mutual funds and US Treasury Bills is calculated using the market approach using quoted prices in active markets for identical assets. The quoted marked price used for financial assets held by the Group is the current bid price. These instruments are included in level 1.

The Group’s financial liabilities, which were not traded in an active market, were determined using valuation techniques that maximize the use of available market information, and thus rely as little as possible on specific estimates of the entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instruments are included in level 2.

If one or more of the significant inputs is not based on observable market data, the instruments are included in level 3.

The Group’s policy is to recognize transfers between different categories of the fair value hierarchy at the time they occur or when there are changes in the circumstances that cause the transfer. There were no transfers between levels of the fair value hierarchy. There were no changes in economic or business circumstances affecting fair value.

Financial instruments not measured at fair value

The financial instruments not measured at fair value include cash and cash equivalents, trade accounts receivable, other accounts receivable, trade payables and other debts, borrowings, financed payments and convertible notes.

The carrying value of financial instruments not measured at fair value does not differ significantly from their fair value, except for borrowings (Note 5.12).

Management estimates that the carrying value of the financial instruments measured at amortized cost approximates their fair value.

Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. Currency on foreign exchange risk arises when the Group enters into transactions denominated in a currency other than its functional currency.

The table below sets forth our net exposure to currency risk as of December 31, 2023:


Net foreign currency position		12/31/2023
Amount expressed in US$		(6,210,949)

Considering only this net currency exposure as of December 31, 2023 if an US Dollar revaluation or depreciation in relation to other foreign currencies with the remaining variables remaining constant, would have a positive or a negative impact on comprehensive income as a result of foreign exchange gains or losses. We estimate that a devaluation or an appreciation of the US Dollar other currencies of 10% during the period ended December 31, 2023 would have resulted in a net pre-tax loss or gain of approximately $0.6 million.