P.G. Economides Properties PLC

Annual / Quarterly Financial Statement • May 4, 2022

P.G. ECONOMIDES PROPERTIES PLC (previously P.G. Economides Properties Ltd)

REPORT AND FINANCIAL STATEMENTS 31 December 2021

REPORT AND FINANCIAL STATEMENTS 31 December 2021

CUNIENIS	PAGE
Board of Directors and other officers	1
Management Report	2 - 3
Declaration of the members of the Board of Directors and the company officials responsible for the preparation of the financial statements	4
Independent auditor's report	5 - 8
Statement of profit or loss and other comprehensive income	9
Statement of financial position	10
Statement of changes in equity	11
Cash flow statement	12
Notes to the financial statements	13 - 28

BOARD OF DIRECTORS AND OTHER OFFICERS

Board of Directors:	Peter G. Economides Androulla Zavou Economides
Company Secretary:	Totalserve Management Ltd
Independent Auditors:	Ekkeshis Ierodiakonou Ltd Certified Public Accountants and Registered Auditors 39 Themistocles Dervis Str. Off. 102 1066, Nicosia
Registered office:	17 Gr. Xenopoulou Str. 3106, Limassol Cyprus
Registration number:	HE27549

MANAGEMENT REPORT

The Board of Directors presents its report and audited financial statements of the Company for the year ended 31 December 2021.

Principal activities and nature of operations of the Company

The principal activity of the Company, which are unchanged from last year, is the development of land. On 10 November 2020 the Company obtained a licence for its shares to be listed to the Emerging Companies Market.

Change of Company name

On 15 July 2020, the Company changed its name from P.G. Economides Properties Ltd to P.G. Economides Properties Plc.

Review of current position, future developments and performance of the Company's business

The Company's development to date, financial results and position as presented in the financial statements are not considered satisfactory and the Board of Directors is making an effort to reduce the Company's losses.

Principal risks and uncertainties

The principal risks and uncertainties faced by the Company are disclosed in notes 6, 7 and 19 of the financial statements.

Use of financial instruments by the Company

The Company is exposed to interest rate risk, credit risk and liquidity risk from the financial instruments it holds.

Interest rate risk

Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. The Company's income and operating cash flows are substantially independent of changes in market interest rates as the Company has no significant interest-bearing assets. The Company is exposed to interest rate risk in relation to its non-current borrowings issued at variable rates expose the Company to cash flow interest rate risk. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. The Company's Management monitors the interest rate fluctuations on a continuous basis and acts accordingly.

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to meet an obligation. Credit risk arises from cash and cash equivalents as well as credit exposures to customers including outstanding receivables.

Credit risk is managed on a group basis. For banks and financial institutions, the Company has established policies whereby the majority of bank balances are held with independently rated parties with a minimum rating of ['C'].

If wholesale customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, Management assesses the credit quality of the customer, taking into account its financial position, past experience and other factors.Individual credit limits and credit terms are set based on the credit quality of the customer in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

The Company's investments in debt instruments are considered to be low risk investments. The credit ratings of the investments are monitored for credit deterioration.

Liquidity risk

Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The Company has procedures with the object of minimising such losses such as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities.

Share capital

There were no changes in the share capital of the Company during the year under review.

Implementation and compliance to the Code of Corporate Governance

The Company recognises the importance of implementing sound corporate governance policies, practices and procedures. As a company listed on the Cyprus Stock Exchange (CSE), P.G. Economides Properties Plc has adopted CSE's Corporate Governance Code and applies its principles.

MANAGEMENT REPORT

In March 2006 the CSE issued a revised Code of Corporate Governance. The Company complies with all the provisions of the revised Code

Board of Directors

The members of the Company's Board of Directors as at 31 December 2021 and at the date of this report are presented on page 1. All of them were members of the Board of Directors throughout the year ended 31 December 2021.

In accordance with the Company's Articles of Association all Directors presently members of the Board continue in office.

There were no significant changes in the assignment of responsibilities and remuneration of the Board of Directors.

Independent Auditors

The Independent Auditors, Ekkeshis Ierodiakonou Ltd, have expressed their willingness to continue in office and a resolution giving authority to the Board of Directors to fix their remuneration will be proposed at the Annual General Meeting.

By order of the Board of Directors,

Totalsery Management Ltd Secretary Nicosia, 15 March 2022

DECLARATION OF THE MEMBERS OF THE BOARD OF DIRECTORS AND THE COMPANY OFFICIALS RESPONSIBLE FOR THE PREPARATION OF THE FINANCIAL STATEMENTS

In accordance with Article 9 sections (3c) and (7) of the Transparency Requirements (Traded Securities in Regulated Markets) Law 2007 (N 190 (I)/2007) ("the Law") we, the manbers of the Board of Directors and the Company official responsible for the financial statemy (no) , ne millellibers of the "Ompany") for the year ended 31 December 2021, on the basis of our knowledge, declare that:

(a) The annual financial statements of the Company which are presented on pages 9 to 28:

(i) have been prepared in accordance with the applicable International Financial Reporting Standards as adopted by the European Union and the provisions of Article 9, section (4) of the law, and

(ii) provide a true and fair view of the particulars of assets and liabilities, the financial position and profit or loss of the Company and the entities included in the financial statements as a whole and

b) The management report provides a fair view of the developments and the performance as well as the financial position of the Company as a whole, to the developments and the performance as well as the infance which they face,

Members of the Board of Directors:

Peter G. Economides

Androulla Zavou Economides

Responsible for drafting the financial statements

Peter G. Economides (Financial Manag

Nicosia, 15 March 2022

Ekkeshis lerodiakonou Ltd

39 Themistocles Dervis Street T: +357 22 466 470 1st Floor CY-1066 Nicosia, Cyprus P.O.Box 26643 CY-1646 Nicosia, Cyprus

F: +357 22 766 470 www.eicyprus.com

Independent Auditor's Report

To the Members of P.G. Economides Properties Plc

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of P.G. Economides Properties Plc (the "Company"), which are presented in pages 9 to 28 and comprise the statement of financial position as at 31 December 2021, and the statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at 31 December 2021, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap. 113.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the "Auditor's Responsibilities for the Financial Statements" section of our report. We remained independent of the Company throughout the period of our appointment in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Cyprus, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters incorporating the most significant risks of material misstatements, including assessed risk of material misstatements due to fraud

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Reporting on other information

The Board of Directors is responsible for the other information comprises the information included in the Management Report but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Independent Auditor's Report (continued)

To the Members of P.G. Economides Properties Plc

In connection with our audit of the financial statements, our responsibility is to read the rinformation identified above and, in doing so, consider whether the other information is materially microsisted. This financial above and, The doing 'so, "consider will be notherwise appears to be macerially misstated. If, ased on the statements of our knowledge occarned in that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors and those charged with governance for the Financial Statements

The Board of Directors is responsible for the preparation of financial statements that givennens Union, and Air view in The Doard of Directors is Financial Reporting Standards as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap. 113, and for such internal control as the Bard of Directors requirements of the "cyprus "even the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Connection the conserve In prepaining the financial succern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are rier in in material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• of the Compuny of incentral control.
  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
• and related anselection of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. It we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. This conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves a true and fair view.

We communicate with the those charged with governance regarding, among other maters, internal society, we we conmittincte with the those endirge, including any significant deficiencies in internal control that we identify during our audit.

EKKESHIS +IERODIAKO Independent Auditor's Report (continued)

To the Members of P.G. Economides Properties Plc

Auditor's Responsibilities for the Audit of the Financial Statements (continued)

We also provide those charged with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters.

Report on Other Legal and Regulatory Requirements

Pursuant to the requirements of Article 10(2) of the EU Regulation 537/2014 we provide the following information in our Independent Auditor's Report, which is required in addition to the requirements of International Standards on Auditing.

Appointment of the Auditor and Period of Engagement

We were first appointed as auditors of the Company on 20 April 2021 by the Board of Directors. Our appointment has been renewed annually by shareholder resolution representing a total period of uninterrupted engagement appointment of 2 years.

Consistency of the Additional Report to the Audit Committee

We confirm that our audit opinion on the financial statements expressed in this report is consistent with the additional report to the Audit Committee of the Company, which we issued on [insert date] in accordance with Article 11 of the EU Regulation 537/2014.

Provision of Non-audit Services

We declare that no prohibited non-audit services referred to in Article 5 of the EU Regulation 537/2014 and Section 72 of the Auditors Law of 2017 were provided. In addition, there are no non-audit services which were provided by us to the Company and which have not been disclosed in the financial statements or the Management Report.

Other Legal Requirements

Pursuant to the additional requirements of the Auditors Law of 2017, we report the following:

• In our opinion, based on the work undertaken in the course of our audit, the Management Report has been prepared in accordance with the requirements of the Cyprus Companies Law, Cap 113, and the information given is consistent with the financial statements.
• In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we are required to report if we have identified material misstatements in the Management Report. We have nothing to report in this respect.
• In our opinion, based on the work undertaken in the course of our audit, the information included in the corporate governance statement in accordance with the requirements of subparagraphs (iv) and (v) of paragraph 2(a) of Article 151 of the Cyprus Companies Law, Cap. 113, and which is included as a specific section of the Management Report, has been prepared in accordance with the requirements of the Cyprus Companies Law, Cap, 113, and is consistent with the financial statements.
• In our opinion, based on the work undertaken in the course of our audit, the corporate governance . statement includes all information referred to in subparagraphs (i), (ii), (vi) and (vii) of paragraph 2(a) of Article 151 of the Cyprus Companies Law, Cap. 113.
• In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we are required to report if we have identified material misstatements in the corporate governance statement in relation to the information disclosed for items (iv) and (v) of subparagraph 2(a) of Article 151 of the Cyprus Companies Law, Cap. 113. We have nothing to report in this respect.

Independent Auditor's Report (continued)

To the Members of P.G. Economides Properties Plc

Other Matter

This report, including the opinion, has been prepared for the Company's members as a body in
accordance with Article 10(1) of the EU Regulation 537/2014 a accordance with Article 10(1), Tia Beell piepared for and only for the Company's members ass a body in
other purpose. We do not, in giving accept or assume researcility of se other purpose. We do not, in the London 337/204 and Section 69 of the Audicors Law of 2017 and for no
other purpose. We do not, in giving this opinion, accept or assume resp other person to whose knowledge this report may come to.

The engagement partner on the audit resulting in this independent auditor's report is Constantinos Ekkeshis.

Nicosia, 15 March 2022

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 31 December 2021

	Note	2021 €	2020 €
Selling and distribution expenses Administration expenses		(2,395)
Operating loss		(26,122)	(14,895)
		(28,517)	(14,895)
Finance costs Net finance costs		(14,621)	(1,020)
Loss before tax	10	(14,621)	(1,020)
		(43,138)	(15,915)
lax
Net loss for the year	11	(2,840)
		(45,978)	(15,915)
Other comprehensive income
Total comprehensive income for the year
		(45,978)	(15,915)

STATEMENT OF FINANCIAL POSITION

31 December 2021

ASSETS	Note	2021 €	2020 €
Current assets Inventories Trade and other receivables Cash at bank and in hand	12 13 14	18,091,854 84,509 81	17,915,096 86,543 52
Total assets		18,176,444 18,176,444	18,001,691 18,001,691
EQUITY AND LIABILITIES
Equity Share capital Accumulated losses Total equity Non-current liabilities Borrowings	15 16	11,934,065 (92,637) 11,841,428 5,359,810	11,934,065 (46,659) 11,887,406 5,469,513
Current liabilities Trade and other payables Borrowings Current tax liabilities	17 16 18	5,359,810 521,887 453,268 51 975,206	5,469,513 191,453 453,268 51
Total liabilities		6,335,016	644,772
Total equity and liabilities		18,176,444	6,114,285 18,001,691

On 15 March 2022 the Board of Directors of P.G. Economides Properties Plc authorised these financial statements for
issue.

............................... Peter G. Economides

Director

............................

Androulla Zavou Economides Director

STATEMENT OF CHANGES IN EQUITY

31 December 2021

	Share capital 5	Share premium (3	Fair value reserve - land and buildings €	Accumulated losses 6	Total €
Balance at 1 January 2020	11,934,065			(30,744)	11,903,321
Comprehensive income Net loss for the year Total comprehensive income for the				(15,915)	(15,915)
year Capitalisation of reserves				(15,915)	(15,915)
Balance at 31 December 2020/ 1 January 2021	11,934,065			(46,659)
Comprehensive income Net loss for the year Total comprehensive income for the				(45,978)	11,887,406 (45,978)
year				(45,978)	(45,978)
Balance at 31 December 2021	11,934,065			(92,637)	11.841 478

Companies, which do not distribute 70% of their profits after tax, as defined by the Special Contribution for the Defence of the Republic 70% of the first it expart tax, as defined by the Special Contribution for the Marinetin for the Mer
distributed this amount as dividend on the Second distributed this amount as dividend on the St of the end of the relevant tax year, will be deemed to have
distribution is reduced on the 31 of December of the second year. distribution in actual all tille it all of the second year. The annum of the demed dividend
profits relate. The Company pays also also distributed by 31 December of the secon profits relate. The Company arready alience contribution on behalf of the second year for the year the year the year the amount of the ear the amount of the deemed dividend distribution at a rate of 17% (applicable since 2014) when the entitled shareholders over the amount of the amount of the amount of the amount persons tax resident of a acted distribution of year 2017 profits), the Company pays on believe of the 1209 (deemed dividend
distribution of year 2017 profits), the Company pays on behalf of the shareholder r System (1) 2019 11:51 prompany pays on behalf of the shareholders General Healthcare System (GHS)
contribution at a rate of 2,65% (2019: 1,70%), when the entitled sharehol Cyprus, regardless of their domicile.

CASH FLOW STATEMENT 31 December 2021

CASH FLOWS FROM OPERATING ACTIVITIES Loss before tax	Note	2021 ਵ	2020 €
Adjustments for: Interest expense		(43,138)	(15,915)
	10	2	679
Changes in working capital: Increase in inventories		(43,136)	(15,236)
Decrease in trade and other receivables Increase in trade and other payables		(176,758) 2,034	(158,570) 12,117
Cash generated from operations		330,434	178,421
Tax paid		112,574	16,732
Net cash generated from operating activities		(2,840)
		109,734	16,732
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities			(354,659)
CASH FLOWS FROM FINANCING ACTIVITIES Repayments of borrowings
Proceeds from borrowings		(109,703)
Interest paid			54,165
Net cash (used in)/generated from financing activities		(2)	(6/9)
Net increase/(decrease) in cash and cash equivalents		(109,705)	53,486
Cash and cash equivalents at beginning of the year		29	(284,441)
Cash and cash equivalents at end of the year		52	284,493
	14	81	52

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

1. Incorporation and principal activities

Country of incorporation

The Company P.G. Economides Properties Plc (the "Company") was incorporated in Cyprus on 09 August 1986 as a at 17 Gr. Xenopoulou Str., 3106, Limassol, Cyprus.

Principal activities

The principal activity of the Company, which are unchanged from last year, is the development of land. On 10 ron the many of the Company, Which are finclianged from liast year, is the development of land.
November 2020 the Company obtained a licence for its shares to be listed to

2. Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs)
as adopted by the European Union (EU) and the requirements as adopted by the new have nepared in accordance with International Finandal (IFRS)
statements have been prepared in accoricants of the Cyprus Companies Law, Cap. 113. The fi statements have been prepared under the historical cost convention.

3. Adoption of new or revised standards and interpretations

During the current year the Company adopted all the new and revised International Financial Reporting Standards (IFRS) that are relevant to its operations and revised International Financial Reporting Standards
adoption did not have a material effect on the accounting periods beginning and and the many to to to to operatoris and are enecuve for accounting periods
adoption did not have a material effect on the accounting policies of the Company.

4. Significant accounting policies

The principal accounting policies adopted in the preparation of these financial statements are set out below. These The production of there duoped in the preparation of these financial statements are set out below. The stated

Segmental reporting

The Company is organised by business segments and this is the primary formal for segmental reporting. Each business segment provides products or services which are subject or segmental reporting. Each
of other business products or services which are subject or risks and returns t of other business segments. The Company of Subject to risks and returns that are different from those
of other business segment. The Company operates only in Cyprus and for t by geographical segment.

Finance costs

Interest expense and other borrowing costs are charged to profit or loss as incurred.

Tax

Current tax liabilities and assets are measured at the amount expected to or recovered from the taxation
authorities, using the tax rates and laws that have been enacted, or a the tax and the the abset are measured at the annount expected to be paid to or recovered from the tax.
authorities, using the tax rates and laws that have been enacted, by

Financial assets

Financial assets - Classification

The Company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through OCI or through profit or loss), and
  those to be measured at amortised cost
• those to be measured at amortised cost.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

4. Significant accounting policies (continued)

Financial assets (continued)

Financial assets - Classification (continued)

The classification and subsequent measurement of debt financial assets on: (i) the Company's business
model for managing the related assets portfolio and (ii) the cash flow c model for mans alsocident measurement of deb financial assets depends on: (i) the Company's business
recognition the Company mated assets portfolio and (i) the esset for init recognition, the Teater assets portolio and (i) the cash flow characterics of thersels be measured at ampuly may ineveably designate a debt financial asset that che used. on thitan
be measured at amortized cost or at FVTPL if doing so eliminates or significant

For investments in equity instruments that are not held for trading will depend on whether the
Company has made an irrevocable election at the time of initial recognition the Company has mar oquity instralis that are not he tassification will depend on whether the the the the the the the the the ende in whether the equity invesment at
hasis the more and an inveable election at the of initial recognition to account for the equip in wheener the equity in whenen the envir investment
basis.

All other financial assets are classified as measured at FVTPL.

For assets measured at fair value, gains and loses will either be recorded in profit or loss or OCI. For investments in
election, at the discussion of the will depend on whet equity instrumers and and inses will either be recorded in profit or loss or Oct. For investments in
election at the time of intil recorned this vill depend on inserv election at the time of nealing, this will depend on whether the Company has on of investments in
comprehensive income (FVOC).

Financial assets - Recognition and derecognition

All purchases and sales of financial assets that require delivery within the time frame established by regulation or
market convention in the like bli market convention ("regular way" purchases and sales) are rime established by regulation or
Company commits to deliver way" purchases and sales which is the date, which is th Company commits to deliver a finances and sales) are recorded at trade date, which is the date which is the date while is the date when be
becomes a party to the contractual becomes a party to the contractual provisions of the instrument.
The instrument.

Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or the consess are derecognised when the rights to receive cash flows from the financial assets have ex
have been transferred and the Company has transferred substantially all

Financial assets - Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair and morily the Company headles a his fair value plus, in the case of a financial asset not
at fair asset Transaction oss (FVTPL), transation costs that are expans financial asset. Sess (V r Ly, transaction costs that are directly attibutable to the minitial asset ho
initial recognion costs of financial assess caried at PPPL are expense intil recognition is not of the transaction price. A gin or loss on intil recogniton in the there is a difference by the thansaction price. A gain or loss on intial recognit on Yaire it
mark is a difference between fair value and transction price which conver in the market transactions between fan value and transaction price which can be evidenced by pricer observed by other observable markets and

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash
flows are solely payment of principal and interest. flows are solely payment of principal and interest.

Financial assets - impairment - credit loss allowance for ECL

The Company assesses on a forward-looking basis the ECL for debt instruments (including loas) measured at
Company masures FCL anortised cost of a reliking from home of the ECL for debt instruments (including loans) measured at
Company measures ECL and recognisms from hom commitments and financial gu Company measure ind exposites areit from loan commitments and financial guarantel contracted at
reflects: (i) an unbiased and probablic loss alowance at each reporting date. refects (i) time value of probability weighted anount that is determined by evaluetic frie
outcones, (i) time value of money and (ii) all reasonal dy evaluating a range of po ourcement (ii) all reasonale and ploading will be lifermation that is available with under of the rate of moley and (ii) all reasonable information in the matin is available in the libread.
undue cost and effort at the end of each reporting period about past

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

4. Significant accounting policies (continued)

Financial assets (continued)

Financial assets - impairment - credit loss allowance for ECL (continued)

The carrying amount of the financial assets is reduced through the use of an allowance account, and the amount of the loss is recognised in the statement of profit or hiss and other comprehensive income within "het impairment losses on financial and contract of proit of loss and other comprehensive income within "he impairment
recognised are credited against the same lines of amounts for which los recognised are credited against the same line item.

Debt instruments carried at amortised cost are presented in the statement of financial position net of the allowance for ECL. For loan commitments and financial guarantee contracts, a separate provision net of the allowance
liability in the statement of financial guarantee contracts, a sepa liability in the statement of financial position.

For debt instruments at FVOCI, an allowance for ECL is recognised in profit or loss and it affects fair value gains or losses recognised in OCI rather than the carrying amount of those instruments.

The impairment methodology applied by the Company for calculating expected credit losses depends on the type of financial asset assessed for impairment. Specifically:

For trade receivables and contract assets, including trade receivables and contract assets with a significant financing component, and lease receins the Company applies the simplified and mannel manny minutes in thinancing
lifetime expected credit losses to be recognised as simplified approach lifetime expected credit losses the Company applies the simpined approach permitted by
a sees

For all other financial instruments that are subject to impairment under IFRS 9, the Company applies general approach - three stage model for impairment. The Company applies a three stage model for impairment, based on changes in credit quality since initial recognition. A financial instrument based on
recognition is classified in Stage initial recognition. A financial in not credit recognition is classified in Stage 1.

Financial assets in Stage 1 have their ECL measured at an amount equal to the portion of lifetime ECL that results from default events possible within the next 12 months or until contractual maturity, if shorter ("12 Morths ECL" hat results
the Company identifies a significant increase in the Company identifies a significant increase in credit risk ("Sice"), since initial recognition ("I Shorths EC"). It
Stage 2 and its ECL is measured based on ECL Stage 2 and its ECL is measured not Lon a lifetime basis, that is, up until contracter respected to
considering expected breakments if any ("L'in lifeti considering expected prepayments, if any ("Life) in the mass, that is, up until contractual maturity but how the Company determines when a SICR has occured. If the Company deternines that a financial asset is credit impaired, the assets and definition of defined in the Colligent of the armanial asset is credit.
credit impaired assets and definition of default is combined as a Lifetime EC credit impaired assets and definition of default is explained in note 6, Credit risk section.

Additionally the Company has decided to use the low credit risk assessment exemption for investment grade financial assets. Refer to note 6, Credit risk section for a description of how the Company determines low credit risk financial

Financial assets - Reclassification

Financial instruments are reclassified only when the business model for managing those assets changes. The reclassification has a prospective effect and the business inodel for managing period following the change.

Financial assets - write-off

Financial assets are written-off, in whole or in part, when the Company exhausted all practical recovery efforts and has concluded that there is no reasonable expectation of recovery. The write-off recovery efforts and The Company may write-off financial asses that are still subject tepresents a derecognition event.
recover amounts that are contractually due however there is activity when recover amounts that are contractually due, however, there is no reasonable expectation of recovery.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

1. Significant accounting policies (continued)

Financial assets (continued)

Financial assets - modification

The Company sometimes renegotiates or otherwise modifies the contractial assets. The
Company assesses whether the modification of contractual cash flows is su Company assesses whether the modification of contractual terms of the financial assets. The financial assets. The financial assets. The following factors: any new contractual cash flow is substantial considering, among other, the sset (e.g. brondo other, the asset (e.g. profit share on equity-based return), hen echnoctial still cliar shart are in the asset (e.g. poff share or
credit entrum), significant change in interest rate, change in the currency denomi credit enhancement that ellulge in the est rate, change in the currency denomination, new collateral or
eal colaters of that significantly affects the credit risk asset or a loan when the borrower is not in financial difficulties.

If the motified terms are substantially different, the rights to cash flows from the original asset expire and the Company dereo the original financial asset and recognises at its fair and the original asset expire and the
renegotiation is considered to be the date of initial recognition rend of the original matrical asset and recognition for subsequent imparment calculation for ante of
renegotion is considered to be the date of initial recognition for subscr including determinitial to be the blank of mitlal recognition for subsequent imparment caculation purposes,
instrument meets the SPPT criterion. The Company also assesses whe incrument meets the SPPI criterior. The Company also assesses whether the new loan of regebi
and fair neets the SPP criterion. Any difference between the carrying asset derec and fair value of the new substantially modified between the original asset derecognised
difference is attributed to a captal transed in profit or loss, unless the substance difference is attributed to a capital transaction with owners.

In a situation where the renegotiation was driven by financial difficulties of the counterparty and inality to make the
originally agreed payments, the Company compares the originally aged and renegettion was difficulties of the counterpaty and inability to make the
the risks and religently different as a review and revied exected cash flows to the risks and rewards of the original and revised expected cash flows to assets whether
and rewards of the asset are substantially different as a result of the contractual m and rewards do not change, the modified asset is not substantially different from the original modification. If the cisin
modification odes not result in derecognition. The C modification does no result in derecognition The Company recalculates (rom the original asset and itinal asset and itinal asset and it is the modified to route in del countion. The Company recalculates the gross carying amount by discunding
in profit or loss.

Cash and cash equivalents

For the purpose of the cash flow statement, cash and cash at bank and in hand. Cash and cash and and and addin now statemic, ash and cash at bank and in hand. Cash and in hand. Cash and
cash equivalents are carried at amortised cost because: (i) they are held fo those cash flows represent SPPI, and (ii) they are not designated at FVTPL.

Classification as financial assets at amortised cost

These amounts generally arise from transactions outside the usual operating activites of the Company. They are held
with web of with the subjective to collections outside the usual operating activities of the Company. They are held
and interest, Accordingly, these are measured at amortised cost using and interest. In entracture cash nows and their cash flows represent solely payments of principal
for impairment. Financial assets at amortised cost using the effective inter for iment. Finaling y arest at amortised cost using the effective interest method, less provision
for impairment. Financial assets at amortised cost are classified are due wi and within woman assess at anortised cost are classified as current assets if they are due withinese pro
less (or in the normal operating cycle of the business if longer). I

Classification as trade receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of
business. If collection is expected in one year or less (or in business. If collection is expected in one year or less performed in the budines of
are classified as expected in one year or less (or in the normal operating cycle of the b are classified as current assets. If not, the normal operating cycle of the business in in fosques in in foon, the homes in in och, the more, the ince and of carrent usets. It not, they are presented as non-current assess on and seen incrises, incoly including are receive interest method, loss loss

Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components, in which of consideration that is unconditional unles they contain
receivables with the objective to contractual at fin vales. The Company h receivables with the contractual case they are recognised at fair value. The Company Los the P company of the P
receivables with the objective to collect the contractual cash amortised cost using the effective interest method.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

4. Significant accounting policies (continued)

Financial assets (continued)

Classification as trade receivables (continued)

Trade receivables are also subject to the impairments of IFRS 9. The Company applies the IFRS 9
simplical approach to measuring expected credit losses which uses a lifetime e simplified approach to measuring expected credit losses which uses a life Company applies the IFRS 9
receivables. See note 6, Credit risk sected credit losses which uses a li

Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no
reasonable expection of recovery include, amongst others, t reasonal and are mech of when of when of recoveny. Indicators the there is no
reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in the supportunion of recovery micide, annongst others, the failure of a debtor to engage in a repayments for a repayments

Financial liabilities - measurement categories

Financial libilities are initially recognised at fair value and classified as subsequently measured at amortised cost,
except for (i) financial liabilities at FVTPL: this cla exept for (i) fine in o misur it ialie and classified as subscuently measured at anortised cost,
trading (e.g. short positions this clasified is applied by an organi traince (e.g. Short in securities), contines combination of Politions in Iscunties), Contingent consideration recognised by an acquirea in a Piece or
contracts and loan commitments,

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

Borrowings

Borrowings are recorded initially at the proceeds received, net of transaction costs incurred. Borrowings are
subsequently stated at amortised cost. Any difference between th subsequently stated initially at the proceeds itectived met of transaction costs incurred. Borrowings are
redective stated at amortised cost. Any difference between the below process as anortised cost. Any difference between the proceeds (net of transaction costs) and many of the effective interest nethod.
redemption value is recognised

Financial liabilities - Modifications

An exchange between the Company and its original lenders of debt instruments with substantially different terms, as
well as substantial and the ferms and conditions of existi well as substancer the conginal lenders of debt intruments with substantially different terms, as
extinguishestions of the terms and conditions of existing financial liabilit existing it of the original financial liability of existing financial liabilites, are in annual temis, as a manufactinas, as
substantially different if the discounted presen substantially different of the maility and the recognition of a new financial liability. The teor as an
net of any fees received and discounted present value of the new tems ne of any from the alscounted plesent value of the cash flows under the new terms, including and
discounted peo the remaining che original effective interest rate, in at leas discount of the realited inig the original frieding the interest rate, is at least 10% different from hell film in the min
factors, such as the currency that the instrument i factors, such as the currency that the instrument is denominated in addition, in addition, including
factors, such as the instrument is denominated in, changes in the type o conversion for the careney that the linstrument is denominated in, changes in the type of its

If an exchange of debt instruments or modification of terms is accounted for as an extinguishment, any costs or fees
accounted for incurred by of addemistances of the ministration of the extinguishment, any costs or fees
accounted for as an extinguishment. It the extinguishment. It the exchange of modifi accounted for as an extinguishment. It the extinguishment. It the excircums and on her his and in the mail in the list.
accounted for as an extinguishment, any costs or fees amortised over the remaining term of the modified liability.

Modifications of liabilities that do not result in extinguishment are accounted for as a change in estimate using a
cumulative catch up method, with any gain or loss recognis cumulative catch up net loss recognised in profit or las accounted for as a change in estimate using a
difference in carrying valoe in coss recognised in profit or loss, thie difference in carping values in profit or loss recognised in profit or loss, unless the economic susmance and

Borrowing costs are interest and other costs that the Company incurs in connection with the hoctly of funds,
including, sedmin and other costs that the Company incurs in has including interest interest inte Company incurs in connection with the borrowing of funds,
ancillary costs incurred in conection of discunts of gremium relating a mortisa and and on other online of discunts or premium relating to borrowings, finance l'annes, and estable
differences in connection with the arrangenent of borrowings, finance leas r of the meaned hearled in connection with the arrangement of borrowings, finance lease charges and examples and examples an adjustment to
interest costs.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

4. Significant accounting policies (continued)

Financial assets (continued)

Financial liabilities - Modifications (continued)

Borrowing costs that are directly attributable to the acquisition or production of a qualifying asset,
being an asset that necessarily takes a substantial period of time to g being an asset that necessarily takes a substantial period of production of a qualifying asset,
capitalised as part of the sa substantial period of time to get ready f capitalised as not hoebodiny takes a substantial period of time to get ready for its intended use on and and and and and one of an else, and one of an enefits to the Company and the costs can be measured reliably.

Offsetting financial instruments

Financial assets and financial liabilities are offset and the statement of financial position
if, and only if, there is a currently enforceable legal right to offset the reco if, and only if, there is a currently entre net mount reported in the statement of financial position
to settle on a net basis, or to realise and settle the librility simulta to ettle on a net basis, or to realise the liality similareously. This and there is an ihesaline is an ihesaline is an ihesaline is an inestile with master netting agreements, and settle the liability simultaneously. This is not generally meetident of the related of

Inventories

Inventories are stated at the lower of cost and net realisable value. The cost is determined using the weighted average method. Net are one of tost and he realisable value. The cost is determined using the weighted
to completion and selling price in the estimated selling price in the

Share capital

Ordinary shares are classified as equity.

Non-current liabilities

Non-current liabilities represent amounts that are due more than twelve months from the reporting date.

5. New accounting pronouncements

At the date of approval of these financial statements, standards and interpretations were issued by the International
othern of the may be Accounting Standard Childring, Standards, Standards and interpretations were issued by the International
others not yet. The Board of Directors expects that the adopted by th others of the as belt which well not yet effective. Some of them were adopted by the European Union in online of a
not have a material effect on the financial statements of t not have a material effect on the financial statements of the Company.

6. Financial risk management

Financial risk factors

The Company is exposed to interest rate risk, liquidity risk and captal risk management arising from the
financial instruments it holds. The risk management policies employed and the process poss to merest rate risk, liquidity risk and capital risk management arising from the manage these risks are
financial instruments it holds. The risk manage

6.1 Interest rate risk

Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. The Combine that the valle of Thanks will flucture due to changes in market interst
rates as the Company incone and operating cash flows are of changes in market inter rates as the Company has no significant interest-bearing as and of changes in market interest
relation to its no significant interest-bearing asses. The Company is exposed to relation to its no ho sigmings. Borrowings issued at variable rates exposed to interest rate risk interest rate risk interest rate interest rate interest rate risk. Borrowings borrowings issued at variable rates expose the Company to cash flow interest
Management monitors the intes expose the Company to fair value inter Management monitors the inted Tates expose the Company to fair value interest rate

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

6. Financial risk management (continued)

6.2 Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to meet an obligation. Credit risk arises from [cash and cash equivalents, contracture party by failing to
carried at amortised cost, at fair value top requivalents, contractual carried at anortised cost, at fair value through and rash flows of debtinestments.
carried at amortised cost, at fair value through other contrehensive income (FVOCI) and at or loss (FVTPL), favorable derivative financial income (FVOCI) and at fair value through profit
as credit exposures to wholes instruments and deposits with banks and financia as credit exposures to wholes institulie instruments and deposits with banks and financial institutions, as well as lease receivables. The recall customers, including outstanding receivables and contract assess
as lease receivables. Further, credit risk arises from financial guarantees

(i) Risk management

Credit risk is managed on a group basis. For banks and financial institutions, the Company has established policies where with a group of a group basis. Tor bails and Thanclai Institutions, the Company has established policy

If wholesale customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, Management assesses the credity of the customer in there is ninerwise, if there is no independent rating,
and other factors [Individual credit linits and credit terms are se and other factors. [Individual credit limits and credit than are and more of the macine of the customer in accordance with limits set by the Board of Directors. The utilishin is redit quality of the customer in
retail customers are settled in Directors. The utilisation of credit l retail customers are settled in cash or using major credit cards.]

There are no significant concentrations of credit risk, whether through exposure to individual customers, specific
industry sectors and/or regions. industry sectors and/or regions.

The Company's investments in debt instruments are considered to be low risk investments. The credit ratings of the investments are monitored for credit deterioration.

These policies enable the Company to reduce its credit risk significantly.

(ii) Impairment of financial assets

The Company has the following types of financial assets that are subject to the expected credit loss model:
•

• cash and cash equivalents
• credit commitments

The impairment methodology applied by the Company for calculating expected credit losses depends on the type of
financial asset assessed for impairment. Specifically: financial asset assessed for impairment. Specifically:

• For trade receivables the Company applies the simplified by IFRS 9, which requires of lifetime expected losses to be recognised from initial recognition of the financial by IFR
  For all other financial assets that are gubish intention of the financial assets.
• For all other financial assets that are subject to inpairment under IFRS 9, the Company applies general approach - three stage model for impairment. The Company applies a three-stage model for impairment based on changes in credit quality since initial recognition. A final manufacturer in moinment,
  initial recognition is classified in Stane initial recognition. A financial as initial recognition is classified in Stage in Stage 1 have their ECL mot credit-impaired on equal to the portion of lifetime ECL that results from default events possible within the next an amount
  until contractual maturity, if shorter ("12 Months ECU') If the next until contractual maturity, if the citer ("12 Months ECL"). If the Company identifies a significant increase in credit risk ("SICR") since" ("It'hitle" ("I'ville" ("In the company identifies a significant increase in
  based on ECL on a lifetime hasis that is up until on based on ECL on a lifetime basis, that is, up until contracture to Stage 2 and its ECL is measured
  prepayments, if any ("Lifetime basis, that is, up until contracturity but prepayments, if any ("Lifetime ECL"). If the Company determines that a financial asset is credit-impaired the asset is transferred to Stage 3 and its ECL is measured as a Lifetime ECL.

Impairment losses are presented as net impairment losses on financial and contract assets within operating profit.
Subsequent recoveries of amounts previously written off are Subsequent recoveries of contea us nec imparment losses on financial and contract assets with

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

6. Financial risk management (continued)

6.2 Credit risk (continued)

(ii) Impairment of financial assets (continued)

Significant increase in credit risk

The Company considers the probability of default upon initial recognition of the asset and whether there has been a
significant increase in credit risk on an ongoing basis th significant increase in credit upon intial recognition of the asset and whether there has been a
significant increase in credit risk on ongoing basis throughout as the sample significant increating bedie throughty basis throughout each reporting period. To assess are has been a
the reporting date with the Company compares the risk of a default occ the reportion includic isk the cist of a default occurring on the france research as a
supportive forwarding at the default a at the date of initial resonalers are a ma supportive for ware may of default as at the date of initial recognition. It considers av
supportive forwarding-looking information. Especially the following indicators are i

-

• external credit rating (as far as available)
• actual or experience (ar as aralize)
  expected to significant adverse changes in business, financial or economic conditions that are
  actual experiencies in bai expected to concerne about and the bornowers/counterparty's ability to meet its ollitions the literations the literations the literations the lite
• . actual or expected significant changes in the operating results of the borrower/counterparty
• significant increases in credit risk on other financial of the borrower/counterparty
  significant increases in credit risk on other financial instruments of the same borrower/ significant chance in the nemel instruments of the same borrower/counterparty
  guarantees or oges in the value of the collateral supporting the obligation or in the quality of
• significant chances of the leminenies and behaviour of the borrower/countery, including
  changes in the payment status of counterparty in the Company and changes in the counti changes in the other the Oxpected performance and behaviour of the borrower/counterparty, including
  changes in the payment status of counterparty in the Company and changes i

Macroeconomic information (such as market interest rates or growth rates) is incorporated as part of the internal
rating model. The historical loss rates are adjusted rating model of historical loss rates on growth rates) is incorporated as part of the internal
rating model. The historical loss rates are adjusted to reflectioning in maroeconomic hose hices ale adjusted to reflect current and forward-ooking e on intenia
the GDP and the unembyment rate ability of the closioners to section the GDP and the court ethic of the customers to settle the receivables. The Comise in forhidentif ori factors, and accordingly adjust the countries in which it sells gods and services on any mest beilined.
factors, and accordingly adjust the historical loss rates based on the in the produced coseraingly dujusts the filstoncal loss rates based on expected changes in the reporting period.
C

Regardless of the analysis above, a significant increase in credit risk is presumed if a debtor is more than 30 days
past due in making a contractual payment. past due in making a contractual payment.

Low credit risk

The Company has decided to use the low credit risk assessment exemption for investment grade financial assets.
Management consider 'low credit risk' for listed bonds to be an as and only as assess to date to be the new consistent of investment grade financial asses.
Pating agency, Other instrument as an investment grade credit rating with at lea rating a consider for cristed bonds to be an investment grade credit ratine sharish asses.
rating agency, Other instruments are considered to be credit risk when the deast on is a subject your instraments are considered to be low credit risk when they have a
issuer has a strong capacity to meet its contractual cash flow obligations in the near ter

Default

A default on a financial asset is when the counterparty fails to make contractual payments within 90 days of when
they fall due.

Write-off

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to
engage in a repayment planning in the Company. The Company c engage in a reportune of when interf in the leasonable expectation of recovery, such as a debtr failing to
debtor fails to mynents greater than 10 days part die Woren databl debtor falls to han with the Company in Ecompany categorises a debt framily to
writter off to make contralis greater than 180 days past due. Where debt from the for write written off, the Sentractur paylients greater than 180 days past on one of where a
written off, the Company continues to engage in enforcement assets have been and Where recoveries company continues to engage in enforcement
Where recoveries are made, these are recognised in profit or loss.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

6. Financial risk management (continued)

6.2 Credit risk (continued)

(ii) Impairment of financial assets (continued)

The Company's exposure to credit risk for each class of (asset/instrument) subject to the expected credit loss model
is set out below:

Cash and cash equivalents

The Company assesses, on a group basis, its exposure to credit risk arising from cash at bank. This assessment takes into account, assocses, on a group basis, its exposure to credit risk arising from cash at bank. This assessme

Penn develite with the external credit rating institutions and

Bank deposits held with banks with investment grade rating are considered as low credit risk.

The ECL on current accounts is considered to be approximate to 0, unless the bankle contral contrals. The
ECL on deposits accounts is calculated by considering published PDs ECL on deposits acconsidered to be approximate to 0, unless the bank is subject to capital contrals. The
60% as published by ECB.

The Company does not hold any collateral as security for any cash at bank balances.

There were no significant cash at bank balances written off during the year that are subject to enforcement activity.

6.2.1 iguidite wish

6.3 Liquidity risk

Liquidity risk is the risk that arises when the maturity of assets and match. An umatched position
potiect of misioni potitially enhalt hat artise william of assets and liabilities does not match. An umatched position
object of miniming such loses the risk of losses. The Company has procedur object of minimism process such as micrease the Tisk of losses. The Company has prosedures posloh
having available an adequate annuntaining sufficient cash and other highly l having available and back tosses such as maintaining sufficient ca
credit facilities.

6.4 Capital risk management

Copital includes equity shares and share premium, convertible preference shares and loan from parent company.

The Counce and Shares and share premium, convertible preference

The Company manages its capital to ensure that it will be able to continue as a going concern wille maripidiriy, the re and proportial of ensure that it will be able to continue as a going concern wille maximising the
return to shareholders through the optimisation of the debt and equity

7. Critical accounting estimates, judgments and assumptions

Estimates and judgments are continually evaluated and are based on historical experience and other factors,
including expectations of future events that are bel including expectations of feminativ evaluated and are based on historical experience and

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

7. Critical accounting estimates, judgments and assumptions (continued)

Critical accounting estimates and assumptions

The Company makes estimates and assumptions concerning the resulting accounting accounting astimates will, by
definition, seldom equal the related actual results. The estimat definition, sedan assumptions concerning the nuture. The resulting accounting astimates will, by
causing a matem equal the related actual results. The estimates will, by a si causing a material adjustment to the results. The estimates and assumptions that have a significans mily of
eased below,

Calculation of loss allowance

When measuring expected credit losses the Company uses reasonable and supportable forward looking
information, which is based on assumptions for the future movem information, which is bases the Company uses reasonable and supportable forward looking
these drivers will affect each other.

Loss given default is an estimate of the loss arising on default. It is based on the difference between the contractual cash an actinate of the loss ansing on default. It is based on the difference between the
contractual cash flows due and those would expect to receive, taking in from collateral and integral credit enhancements.

Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood of default over a given time horizon, the calculation of default is an estimate of the
and expectations of future conditions, and expectations of future conditions.

Provision for obsolete and slow-moving inventory .

The Company reviews its inventory records for evidence regarding the salebility of inventory and its net
realizable value on disposal. The provision for obsolete, and slow-mo realizable value los necessor of evidence regarding the saleability of inventory and its net
realizable value on disposal. The provision for obsolete and slow-moving Management's past experience, taking into consideration inventory is based on
Management's past experience, taking into consideration the value of inventory as well as th and the level of stock of each category of inventory.

The amount of provision is recognised in profit or loss. The review of the net realisable value of the inventory is continuous and the netion of the review of the net realisable value of the
and slow-moving inventory are reviewed reqularly and arcordinating the provision and slow-moving inventory and the methodology and assumptions used for estimaly.

Income taxes

Significant judgment is required in determining the provision for income transactions and calculations for which in betermination is unertain during the ordinary course of there are transactions and The Company recognises liabilities for anticipated to restimating the ordinates.
taxes will be due. Where the final tax outcome of these based on estimates of whether additio taxes will be due. Where the final tax outcome of these matters of whether additional
initialy recorded . Where the final tax outcome of these matters is .different from the initially recorded, such differences will impact the income tax and the mounts that weran
which such differences will impact the income tax and deferred tax provisions in the

Critical judgements in applying the Company's accounting policies

Impairment of financial assets

The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates The Combo of Initinch assumptions about risk of default and expected loss
impairment calculation making these assumptions and selecting the inputs to the impairment calculation, base Jagentlich Thiakny, existing market conditions a well as the inputs to the inputs to the inputs to the
looking estimates at the end of looking estimates at the end of each reporting partic conditions as well as forward
looking estimates at the end of each reporting period. Details of the key assumptions and disclosed in note 6, Credit risk section.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

8. Segmental analysis

2021

Profit before tax Assets Liabilities	€ (43,138) 18,176,444	Total € (43,138) 18,176,444
2020	6,335,016	6,335,016
Profit before tax Assets Liabilities	€ (15,915) 18,001,691 6,114,285	Total € (15,915) 18,001,691 6,114,285
9. Expenses by nature
Auditors' remuneration - current year Auditors' remuneration - prior years Trade receivables - impairment charge for bad and doubtful debts Other expenses Total expenses	2021 € 1,500 300 2,395 24,322 28,517	2020 € 1,200 13,695 14,895
10. Finance costs
Interest expense	2021 €	2020 €
Sundry finance expenses	2 14,619	679 341
Finance costs	14,621	1,020
11. Tax
Corporation tax - prior years Charge for the year	2021 € 2,840	2020 €
	2,840

The tax on the Company's results before tax differs from theoretical amount that would arise using the applicable tax

2021 6 (43,138)	2020 (15,915)
(5,392) 1,804 3,588	(1,989) 43 1,946
2,840
	2,840

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

11. Tax (continued)

The corporation tax rate is 12,5%.

Under certain conditions interest income may be subject to defence contribution at the rate of 30%. In such cases will be line be the interest will be exempt from be subject to defence contribution at the rate of 30%. In such cases a
this interest will be exempt from corporation tax. In certain cases, d

Gains on disposal of qualifying titles (including shares, bonds, debentures, rights thereon etc) are exempt from
Cyprus income tax.

12. Inventories

	2021	2020
Assets for resale	8
	18,091,854 17,915,096
	18,091,854 17,915,096

During 2019, the value of €17.592.772 (plus capitalised interest for 2019 of €16.3.754), previously recognised as
intends to doubl asses hed for establed of e27.72 (pls captalised interest for 2019 of €16.754), previously recognised as
intends to develop and sel a planed project of its own land in the fi intends to develop na bech recassified to inventory, since in the intention of the Postmally, on the Poetinsed as
develop and sell a planned project of its own and in the pla development of its and including obtaining relevant permits for the Company actively stare boctly, which
studies of its business plan etc.

On the basis of assessment by external parties, the Company is also considering to invite investors to participate in
the Company in order to develop the project as a whole a the Company in order to develop the parties, the Company is also consider

During the year the interest amount of €176.758 was capitalised.

Assets are stated at the lower of cost and net realisable value.

13. Trade and other receivables

	2021	2020
Trade receivables	€	e
Refundable VAT		2,395
	84,509	84,148
	84,509	86,543

The Company has recognised a loss of €2,395 (2020: € year ender 2021. The loss of e2,395 (2020: € - - ) for the imparment of its trade receivables
year ended 31. The loss has been included in selling and distribution costs in

The fair values of trade and other receivables due within one year approximate to their carrying as mounts as

The exposure of the Company to credit risk and impairment losses in relation to trade and other receivables is
reported in note 6 of the financial statements. reported in note 6 of the financial statements.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

14. Cash at bank and in hand

Cash balances are analysed as follows:

	2021	2020
Cash at bank and in hand	€
	81	52
	81	52

The exposure of the Company to credit risk and impairment losses in relation to cash and cash equivalents is
reported in note 6 of the financial statements. reported in note 6 of the financial statements.

15. Share capital

	2021 Number of	2021	2020	2020
Authorised	shares	€	Number of shares	€
Ordinary shares of €1 each	12,000,000	12,000,000	12,000,000	12,000,000
Issued and fully paid Balance at 1 January
	11,934,065	11,934,065	11,934,065	11,934,065
Balance at 31 December	11,934,065	11,934,065	11,934,065	11,934,065
16. Borrowings			2021	2020
Current borrowings Bank loans			€	€
			453,268	453,268
Non-current borrowings Bank loans
Total			5,359,810	5,469,513
			5,813,078	5,922,781
Maturity of non-current borrowings:

	2021	2020
Between one to two years	6
Between two and five years	453,268	453,268
After five years	4,906,542	1,220,339
		3,795,906
	5,359,810	5,469,513

Bank loan 1: The bank loan in the original amount of €8.713.868 is repayable by morthy installments of €22.097
each until 2037 and a final balloon payment of €26.690. The loa e and and of the bank four in the organial anount of e8.713.868 is repayable by monthly installments of €22.097
en man

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

16. Borrowings (continued)

The bank loans are secured as follows:

• By floating charge on the Company's assets for €6,208,602 (2020: €6,208,602).
• By mortgage against immovable property of the Company for €9,713,868 (2020).
  By mortgage against immovable property of the Company for €9,713,868 (2020: €9,713,868).
  Personal
• Personal guarantees from the Company for €9,713,866 (2020- €9,713,868).
  Personal guarantees from the Directors/shareholders of the Company amounting to €12,000,000 (2020:
• Guarantee of private companies amounting to €6,000,000 (2020: €6,000,000).
• and and the produce companies "amounting to e6,000,000 (2020: 66,000,000).
  By second mortgage against immovable property of the Company for €700,000 (2020: -).

17. Trade and other payables

	2021	2020
Shareholders' current accounts - credit balances (Note 20.1) Accruals	1
	520,387	190,002
	1,500	1.451
	521,887	191.453

The fair values of trade and other payables due within one year approximate to their carrying amounts as presented

18. Current tax liabilities

	2021	2020
Special contribution for defence	1
	51	51
	51	51

19. Operating Environment of the Company

On 11 March 2020, the World Health Organisation declared the Coronavirus COVID- 19 outbreak to be a pandemic in
recognition of its rapid spread across the globe. Many governm recognition of its from Treatly of any organisation and the Cornavirus Coving in the pandemic in
contain, and its rend spread across the globe. Many governments are taking in contain, and in a spidd otess she gobe. Many governments are taking increasingly stingent spensioning in
by those potentially affected, inplementing social contribution by those potentially affected, implementing social istancing including: requiring of isolation' oper conting
"locking-down" cities/regions or even entires, The controling or "locking-down" and even entire countries. These measures have slowed down the economic of ender station
Cyprus but globally as well with the potential of having with concerne Cyprus but globally as well with the countries. These measures have slowed down the economist and the mass and
Cyprus but globally as well with the potential of having wider

This operating environment may have a significant impact on the Company's operations and financial position.
Management is the Man and the genrinomient may have a sugnificant impact on the Company's operations and financial position.
effects of the current economics to ensure sustainability of the C effects of the current economics to ensure sustainability of the Company's operations. However, the subscriptions
estimates could differ from actual results.

The Company's Management is unable to predict all developments which could have an impact on the Cyprus
financial economic of the same genere is "predict an "developments which could have an impact on the Cyprus
economy and consequently, what effect, if any, they could have on the f

On the basis of the evaluation performed, the Company's management has concluded that no provisions or
impairment charges are necessary. The Company's Management b impairment charges are necessary. The Company's Management has concluded that no provisions or
to maintain the viability of the Company's Management it is oncritie to maintain the recessery. The Company s Management believes that it it it ataling all the necessary measures
economic environment.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

20. Related party transactions

The following transactions were carried out with related parties:

20.1 Shareholders' current accounts - credit balances (Note 17)

	2021	2020
P.G. Ecnomides Holdings Ltd	€
	520,387	190.002
	520,387	190.002

The directors'/shareholders' current accounts are interest free, and have no specified repayment date.

21. Participation of Directors in the company's share capital

The percentage of share capital of the Company held directly or indirectly by each member of the Board of Directors
(in accordance with Article (4) (b) of the Directive DI 19 (in accordance with Article (in collipaly neld directly or indirectly by each member of the Board of Directors
days before the date of approval of the Directive DI 190-2007-0 days and on the model (1) (0) of the Directive DI 190-2007-04), as at 31 December 2021 and 10 March 2021 and 10 March 1

	31 December	10 March
	2021	2022
	number of	number of
Androulla Zavou Economides	shares	shares
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The shareholding interest of Mrs Androulla Zavou Economides includes her direct participation with a percentage of
es. €1.

22. Shareholders holding more than 5% of share capital

The persons holding more than 5% of the share capital as at 31 December 2021 and 10 March 2022 (5 days before and 10 the sharing more than 5% of the share capital as at 31 December 2021 and 10
the date of approval of the financial statements by the Board of Directors) were as follo

	31 December 2021	10 March 2022
P.G. Economides Holdings Ltd	0/0	0/0
The shareholding interest of D.O.	99.99	99.99

reholding interest of P.G. Economides Holdings Ltd includes his direct participation with a percentage of
,053 99.99%. €11,934,053 99.99%.

23. Significant agreements with management

At the end of the year, no significant agreements existed between the Company and its Management.

24. Contingent liabilities

The Company had no contingent liabilities as at 31 December 2021.

25. Commitments

The Company had no capital or other commitments as at 31 December 2021.

26. Events after the reporting period

There were no material events after the reporting period, which have a bearing on the understanding of the financial
statements.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2021

Independent auditor's report on pages 5 to 8