Annual / Quarterly Financial Statement • Jun 30, 2020
Annual / Quarterly Financial Statement
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FINANCIAL STATEMENTS 31 December 2019
| Board of Directors and other officers | |
|---|---|
| Independent auditor's report | $2 - 3$ |
| Statement of profit or loss and other comprehensive income | 4 |
| Statement of financial position | 5 |
| Statement of changes in equity | 6 |
| Cash flow statement | |
| Notes to the financial statements | $8 - 30$ |
| Board of Directors: | Alexandros Sinos Serafeim Charalampidis Stephanos Kazantzis Panagiotis Brouskaris (resigned on 31/01/2019) Evangelos Drympetas Gloria Chrysafi |
|---|---|
| Company Secretary: | Gloria Chrysafi |
| Independent Auditors: | C&N Auditors Ltd CERTIFIED PUBLIC ACCOUNTANTS - CY 10 Yianni Kranidioti 2nd Floor Office 201 1065 Nicosia, Cyprus |
| Registered office: | Laiou 6 Anna City Court Block B, Flat 301 3015 Limassol Cyprus |
| Registration number: | HE 304867 |
$\mathbf{1}$
We have audited the financial statements of AEONIC SECURITIES C.I.F. PLC (the "Company"), which are presented in pages 4 to 30 and comprise the statement of financial position as at 31 December 2019, 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 2019, 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.
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 Audit of the Financial Statements" section of our report. We are independent of the Company 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.
The Board of Directors is responsible for the preparation of financial statements that give a true and fair view in accordance with International 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 Board of Directors determines is necessary to enable 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 Company's ability to continue as a going concern, 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.
The Board of Directors is responsible for overseeing the Company's financial reporting process.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from 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.
C&N Auditors Ltd NICOSIA HEAD OFFICE: Office 201, 10 Yianni Kranidioti Str., 1065 Nicosia, Cyprus t: +357 22460760, f: +357 22767067, P.O. Box 28949, 2084 Nicosia, Cyprus e: [email protected] w: www.cn-c.com
Accounting & Audit Services Consulting & Advisory Services Taxation & Vat Services Software Solutions Trust Services Financial Services Advisory International Corporate Services Wealth Management
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
This report, including the opinion, has been prepared for and only for the Company's members as a body in accordance with Section 69 of the Auditors Law of 2017 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whose knowledge this report may come to.
Certified Public Accountant and Registered Auditor for and on behalf of C&N Auditors Ltd CERTIFIED PUBLIC ACCOUNTANTS - CY
Nicosia, 29 June 2020
Accounting & Audit Services Consulting & Advisory Services Taxation & Vat Services Software Solutions Trust Services Financial Services Advisory International Corporate Services Wealth Management
| Note | 2019 € |
2018 € |
|
|---|---|---|---|
| Revenue Cost of sales |
9 10 |
494,222 (215,050) |
610,977 (276,894) |
| Gross profit | 279,172 | 334,083 | |
| Other operating income Net fair value gains on financial assets at fair value through profit or loss |
11 | 21,392 1,272 |
13,145 |
| Selling and distribution expenses Administration expenses Net fair value losses on financial assets at fair value through profit or loss |
12 13 |
(12, 362) (287, 714) |
(10, 223) (401, 137) (4,247) |
| Other expenses | 14 | (2,946) | (5,355) |
| Operating loss | (1, 186) | (73, 734) | |
| Finance costs | 16 | (14,516) | (9,640) |
| Loss before tax | (15,702) | (83, 374) | |
| Tax | 17 | (1,836) | (3,100) |
| Net loss for the year | (17, 538) | (86, 474) | |
| Other comprehensive income | |||
| Total comprehensive income for the year | (17,538) | (86,474) |
The notes on pages 8 to 30 form an integral part of these financial statements.
31 December 2019
| ASSETS | Note | 2019 € |
2018 € |
|---|---|---|---|
| Non-current assets Property, plant and equipment Right-of-use assets Intangible assets Investments in subsidiaries Financial assets at fair value through other comprehensive income Investors Compensation Fund |
18 19 20 21 22 25 |
35,229 89,102 5,000 80,187 209,518 |
24,275 661 35,000 76,632 136,568 |
| Current assets Trade and other receivables Non-pledged financial assets at fair value through profit or loss Cash at bank and in hand Total assets |
23 24 26 |
1,076,151 8,359 107,789 1,192,299 1,401,817 |
1,512,447 79,555 43,753 1,635,755 1,772,323 |
| EQUITY AND LIABILITIES | |||
| Equity Share capital Accumulated losses Total equity |
27 | 600,000 (266, 405) 333,595 |
600,000 (248, 867) 351,133 |
| Non-current liabilities Lease liabilities |
28 | 69,999 69,999 |
|
| Current liabilities Trade and other payables Lease liabilities Current tax liabilities |
30 28 31 |
977,501 15,786 4,936 998,223 |
1,418,090 3,100 1,421,190 |
| Total liabilities | 1,068,222 | 1,421,190 | |
| Total equity and liabilities | 1,401,817 | 1,772,323 |
On 29 June 2020 the Board of Directors of AEONIC SECURITIES C.I.F. PLC authorised these financial statements for issue.
$\sum$ ........ Alexandros Sinos Director
Seraféim Charland VIII.
Seraféim Charalampidis
Director
31 December 2019
| Share capital € |
Accumula-t ed losses € |
Total € |
|
|---|---|---|---|
| Balance at 1 January 2018 | 600,000 | (162, 393) | 437,607 |
| Comprehensive income Net loss for the year Total comprehensive income for the year |
(86.474) (86.474) |
(86,474) (86,474) |
|
| Balance at 31 December 2018 | 600,000 | (248, 867) | 351.133 |
| Balance at 31 December 2018/1 January 2019 | 600,000 | (248, 867) | 351,133 |
| Comprehensive income Net loss for the year Total comprehensive income for the year |
(17.538) (17,538) |
(17, 538) (17, 538) |
|
| Balance at 31 December 2019 | 600,000 | (266, 405) | 333,595 |
Companies which do not distribute 70% of their profits after tax, as defined by the relevant tax law, within two years after the end of the relevant tax year, will be deemed to have distributed as dividends 70% of these profits. Special contribution for defence at 17% will be payable on such deemed dividends to the extent that the ultimate shareholders are both Cyprus tax resident and Cyprus domiciled. The amount of deemed distribution is reduced by any actual dividends paid out of the profits of the relevant year at any time. This special contribution for defence is payable by the Company for the account of the shareholders.
The notes on pages 8 to 30 form an integral part of these financial statements.
| Note | 2019 € |
2018 € |
|
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Loss before tax | (15,702) | (83, 374) | |
| Adjustments for: Depreciation of property, plant and equipment |
18 | 44,456 | 19,798 |
| Unrealised exchange profit | (472) | ||
| Amortisation of computer software | 20 | 661 | 3,643 |
| Loss from the sale of property, plant and equipment | 4,620 | ||
| Fair value (gains)/losses on financial assets at fair value through profit or loss |
(1,272) | 4,247 | |
| Interest income | 11 | (6, 120) | (10, 332) |
| Interest expense | 16 | 6,619 | 58 |
| 28,642 | (61, 812) | ||
| Changes in working capital: | |||
| Decrease in trade and other receivables | 466,296 | 217,638 | |
| Decrease/(increase) in financial assets at fair value through profit or loss | 72,468 (440, 589) |
(61, 236) (251, 515) |
|
| Decrease in trade and other payables | |||
| Cash generated from/(used in) operations | 126,817 | (156, 925) | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Payment for purchase of property, plant and equipment | 18 | (25,709) | (235) |
| Payment for purchase of other assets | 25 | (3,555) | |
| Proceeds from disposal of property, plant and equipment | 18 | 6,120 | 2,000 10,332 |
| Interest received | |||
| Net cash (used in)/generated from investing activities | (23, 144) | 12,097 | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Payments of leases liabilities | (33, 018) | ||
| Unrealised exchange profit | 472 | ||
| Interest paid | (6, 619) | (58) | |
| Net cash (used in)/generated from financing activities | (39, 637) | 414 | |
| Net increase/(decrease) in cash and cash equivalents | 64,036 | (144, 414) | |
| Cash and cash equivalents at beginning of the year | 43,753 | 188,167 | |
| Cash and cash equivalents at end of the year | 26 | 107,789 | 43,753 |
The notes on pages 8 to 30 form an integral part of these financial statements.
The Company AEONIC SECURITIES C.I.F. PLC (the "Company") was incorporated in Cyprus on 19th of April 2012 as a private limited liability company under the provisions of the Cyprus Companies Law, Cap. 113. Its registered office is at Laiou 6, Anna City Court Block B, Flat 301, 3015 Limassol, Cvprus.
The Company is a Cyprus Investment Firm ("C.I.F") and in accordance with the license no.177/12 granted by the Cyprus Securities and Exchange Commission ("CySEC") on 4 September 2012.
The principal activities of the company comprise the provision of investment services, including reception and transmission of orders in relation to one or more financial instruments and execution of orders on behalf of clients in relation to one or more financial instruments.
In addition, the Company provides ancillary services, which comprise the safekeeping and administration of financial instruments, including custondianship and related services, advice to undertakings on capital structure, industrial strategy and related matters and advice and services related to mergers and the purchase of undertakings, foreign exchange services where these are connected to the provision of investment services, services related to underwriting, and investment services and activities as well as ancillary services where these are connected to the provision of investment or ancillary services.
The Cypriot economy has recorded positive growth in 2018 and 2019 after overcoming the economic recession of recent years. The overall economic outlook of the economy remains favourable, however there are still downside risks emanating from the still high levels of non-performing loans, the public debt ratio, as well as possible deterioration of the external environment for Cyprus.
This operating environment may have a significant impact on the Company's operations and financial position. Management is taking necessary measures to ensure sustainability of the Company's operations. However, the future effects of the current economic situation are difficult to predict and Management's current expectations and estimates could differ from actual results.
The Company's Management is unable to predict all developments which could have an impact on the Cyprus economy and consequently, what effect, if any, they could have on the future financial performance, cash flows and financial position of the Company.
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 believes that it is taking all the necessary measures to maintain the viability of the Company and the smooth conduct of its operations in the current business and economic environment.
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU) and the requirements of the Cyprus Companies Law, Cap. 113. The financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and financial liabilities at fair value through profit or loss and through other comprehensive income.
The financial statements are presented in Euro $(\epsilon)$ which is the functional and presentation currency of the Company.
During the current year the Company adopted all the new and revised International Financial Reporting Standards (IFRS) that are relevant to its operations and are effective for accounting periods beginning on 1 January 2019. The effect of the adoption of IFRS16 "Leases" on the accounting policies of the Company is shown in notes 19 and 28 of the financial statements.
The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented in these financial statements unless otherwise stated.
Subsidiaries are entities controlled by the Company. Control exists where the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
Investments in subsidiary companies are stated at cost less provision for impairment in value, which is recognised as an expense in the period in which the impairment is identified.
Revenue represents the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised goods or services to the customer, excluding amounts collected on behalf of third parties (for example, value-added taxes); the transaction price. The Company includes in the transaction price an amount of variable consideration as a result of rebates/discounts only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimations for rebates and discounts are based on the Company's experience with similar contracts and forecasted sales to the customer.
The Company recognises revenue when the parties have approved the contract (in writing, orally or in accordance with other customary business practices) and are committed to perform their respective obligations, the Company can identify each party's rights and the payment terms for the goods or services to be transferred, the contract has commercial substance (i.e. the risk, timing or amount of the Company's future cash flows is expected to change as a result of the contract), it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer and when specific criteria have been met for each of the Company's contracts with customers.
The Company bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. In evaluating whether collectability of an amount of consideration is probable, the Company considers only the customer's ability and intention to pay that amount of consideration when it is due.
Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases or decreases in estimates are reflected in the statement of profit or loss and other comprehensive income in the period in which the circumstances that give rise to the revision become known by Management.
The Company assesses whether contracts that involve the provision of a range of goods and/or services contain one or more performance obligations (that is, distinct promises to provide a service) and allocates the transaction price to each performance obligation identified on the basis of its stand-alone selling price. A good or service that is promised to a customer is distinct if the customer can benefit from the good or service, either on its own or together with other resources that are readily available to the customer (that is the good or service is capable of being distinct) and the Company's promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (that is, the good or service is distinct within the context of the contract).
Revenue is measured based on the consideration to which the Company expects to be entitled in a contract with a Customer and excludes amounts collected on behalf of third parties. The Company recognises revenue when it transfers control of a product or service to a Customer.
Revenue from rendering of services is recognised over time while the Company satisfies its performance obligation by transferring control over the promised service to the customer in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously. This is determined based on the actual labour hours spent relative to the total expected labour hours.
Commission income is recognised on an accruals basis in accordance with the substance of the relevant agreements.
Work executed is recognised in the accounting period in which the work is carried out by reference to completion of the specific transaction assessed on the basis of the actual work executed provided as a proportion of the total work to be carried out.
Interest income is recognised on a time-proportion basis using the effective interest method.
The Company and its employees contribute to the Government Social Insurance Fund based on employees' salaries. The Company's contributions are expensed as incurred and are included in staff costs. The Company has no legal or constructive obligations to pay further contributions if the scheme does not hold sufficient assets to pay all employees benefits relating to employee service in the current and prior periods.
Interest expense and other borrowing costs are charged to profit or loss as incurred.
31 December 2019
Items included in the Company's financial statements are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The financial statements are presented in Euro $(\epsilon)$ , which is the Company's functional and presentation currency.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
Tax
Current tax liabilities and assets are measured at the amount expected to be paid to or recovered from the taxation authorities, using the tax rates and laws that have been enacted, or substantively enacted, by the reporting date.
Property, plant and equipment are stated at historical cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is calculated on the straight-line method so as to write off the cost of each asset to its residual value over its estimated useful life. The annual depreciation rates used are as follows:
| % | |
|---|---|
| Motor vehicles | 20 |
| Furniture, fixtures and office equipment | |
| Computer Hardware | 20 |
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
Where the carrying amount of an asset is greater than its estimated recoverable amount, the asset is written down immediately to its recoverable amount.
Expenditure for repairs and maintenance of property, plant and equipment is charged to profit or loss of the year in which it is incurred. The cost of major renovations and other subsequent expenditure are included in the carrying amount of the asset when it is probable that future economic benefits in excess of the originally assessed standard of performance of the existing asset will flow to the Company. Major renovations are depreciated over the remaining useful life of the related asset.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is reflected in profit or loss in the year in which the expenditure is incurred. The useful lives of intangible assets are assessed to be either finite or indefinite.
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life is reviewed at least at each financial vear end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in profit or loss in the expense category consistent with the function of the intangible asset.
Intangible assets with indefinite useful lives are tested for impairment annually either individually or at the cash generating unit level. Such intangibles are not amortised. The useful life of an intangible asset with an indefinite life is reviewed annually to determine whether indefinite life assessment continues to be supportable. If not, the change in the useful life assessment from indefinite to finite is made on a prospective basis.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in profit or loss when the asset is derecognised.
The annual depreciation rates are as follows: Computer Software 33.33%
Costs that are directly associated with identifiable and unique computer software products controlled by the Company and that will probably generate economic benefits exceeding costs beyond one year are recognised as intangible assets. Subsequently computer software is carried at cost less any accumulated amortisation and any accumulated impairment losses. Expenditure which enhances or extends the performance of computer software programs beyond their original specifications is recognised as a capital improvement and added to the original cost of the computer software. Costs associated with maintenance of computer software programs are recognised as an expense when incurred. Computer software costs are amortised using the straight-line method over their useful lives, not exceeding a period of three years. Amortisation commences when the computer software is available for use.
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised.
At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:
At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the leases of land and buildings in which it is a lessee, the Company has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non financial assets, other than goodwill, that have suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.
From 1 January 2018, the Company classifies its financial assets in the following measurement categories:
The classification and subsequent measurement of debt financial assets depends on: (i) the Company's business model for managing the related assets portfolio and (ii) the cash flow characteristics of the asset. On initial recognition, the Company may irrevocably designate a debt financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
For investments in equity instruments that are not held for trading, classification will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI). This election is made on an investment-by-investment hasis.
All other financial assets are classified as measured at FVTPL.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI).
All purchases and sales of financial assets that require delivery within the time frame established by regulation or market convention ("regular way" purchases and sales) are recorded at trade date, which is the date when the Company commits to deliver a financial instrument. All other purchases and sales are recognised when the entity becomes a party to the contractual provisions of the instrument.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership.
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in profit or loss. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a difference between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.
Subsequent measurement of debt instruments depends on the Company's business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:
Amortised cost; Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in 'other income'. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as separate line item in the statement of profit or loss and other comprehensive income. Financial assets measured at amortised cost (AC) comprise: cash and cash equivalents, bank deposits with original maturity over 3 months, trade receivables and financial assets at amortised cost.
FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/(losses). Interest income from these financial assets is included in "other income". Foreign exchange gains and losses are presented in "other gains/(losses)" and impairment expenses are presented as separate line item in the statement of profit or loss and other comprehensive income.
FVTPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in profit or loss and presented net within "other gains/(losses)" in the period in which it arises.
The Company subsequently measures all equity investments at fair value. Where the Company's Management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment, any related balance within the FVOCI reserve is reclassified to retained earnings. The Company's policy is to designate equity investments as FVOCI when those investments are held for strategic purposes other than solely to generate investment returns. Dividends from such investments continue to be recognised in profit or loss as other income when the Company's right to receive payments is established.
Changes in the fair value of financial assets at FVTPL are recognised in "other gains/(losses)" in the statement of profit or loss and other comprehensive income as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value.
From 1 January 2018, the Company assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at AC and FVOCI and with the exposure arising from loan commitments and financial guarantee contracts. The Company measures ECL and recognises credit loss allowance at each reporting date. The measurement of ECL reflects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and effort at the end of each reporting period about past events, current conditions and forecasts of future conditions.
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 loss and other comprehensive income within "net impairment losses on financial and contract assets".
Debt instruments measured at AC are presented in the statement of financial position net of the allowance for ECL. For loan commitments and financial guarantee contracts, a separate provision for ECL is recognised as a 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.
Expected losses are recognised and measured according to one of two approaches: general approach or simplified approach.
For trade receivables including trade receivables with a significant financing component and contract assets and lease receivables the Company applies the simplified approach permitted by IFRS 9, which uses lifetime expected losses to be recognised from initial recognition of the financial assets.
For all other financial asset 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 that is not credit-impaired on initial 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 Months ECL"). If the Company identifies a significant increase in credit risk ("SICR") since initial recognition, the asset is transferred to Stage 2 and its ECL is measured based on ECL on a lifetime basis, that is, up until contractual maturity but considering expected prepayments, if any ("Lifetime ECL"). Refer to note 7, Credit risk section, for a description of how the Company determines when a SICR has occurred. 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. The Company's definition of credit impaired assets and definition of default is explained in note 7, Credit risk section.
Additionally the Company has decided to use the low credit risk assessment exemption for investment grade financial assets. Refer to note 7, Credit risk section for a description of how the Company determines low credit risk financial assets.
Financial instruments are reclassified only when the business model for managing those assets changes. The reclassification has a prospective effect and takes place from the start of the first reporting period following the change.
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 represents a derecognition event. The Company may write-off financial assets that are still subject to enforcement activity when the Company seeks to recover amounts that are contractually due, however, there is no reasonable expectation of recovery.
The Company sometimes renegotiates or otherwise modifies the contractual terms of the financial assets. The Company assesses whether the modification of contractual cash flows is substantial considering, among other, the following factors: any new contractual terms that substantially affect the risk profile of the asset (e.g. profit share or equity-based return), significant change in interest rate, change in the currency denomination, new collateral or credit enhancement that significantly affects the credit risk associated with the asset or a significant extension of a loan when the borrower is not in financial difficulties.
If the modified terms are substantially different, the rights to cash flows from the original asset expire and the Company derecognises the original financial asset and recognises a new asset at its fair value. The date of renegotiation is considered to be the date of initial recognition for subsequent impairment calculation purposes, including determining whether a SICR has occurred. The Company also assesses whether the new loan or debt instrument meets the SPPI criterion. Any difference between the carrying amount of the original asset derecognised and fair value of the new substantially modified asset is recognised in profit or loss, unless the substance of the difference is attributed to a capital transaction with owners.
In a situation where the renegotiation was driven by financial difficulties of the counterparty and inability to make the originally agreed payments, the Company compares the original and revised expected cash flows to assets whether the risks and rewards of the asset are substantially different as a result of the contractual modification. If the risks and rewards do not change, the modified asset is not substantially different from the original asset and the modification does not result in derecognition. The Company recalculates the gross carrying amount by discounting the modified contractual cash flows by the original effective interest rate, and recognises a modification gain or loss in profit or loss.
For the purpose of the cash flow statement, cash and cash equivalents comprise cash at bank and in hand. Cash and cash equivalents are carried at AC because: (i) they are held for collection of contractual cash flows and those cash flows represent SPPI, and (ii) they are not designated at FVTPL.
These amounts generally arise from transactions outside the usual operating activities of the Company. These are held with the objective to collect their contractual cash flows and their cash flows represent solely payments of principal and interest. Accordingly, these are measured at amortised cost using the effective interest method, less provision for impairment. Financial assets at amortised cost are classified as current assets if they are due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current assets
Financial liabilities are initially recognised at fair value and classified as subsequently measured at amortised cost, except for (i) financial liabilities at FVTPL: this classification is applied to derivatives, financial liabilities held for trading (e.g. short positions in securities), contingent consideration recognised by an acquirer in a business combination and other financial liabilities designated as such at initial recognition and (ii) financial guarantee contracts and loan commitments.
Trade payables are initially measured at fair value and are subsequently measured at amortised cost, using the effective interest rate method.
Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously. This is not generally the case with master netting agreements, and the related assets and liabilities are presented gross in the statement of financial position.
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 the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets. Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less loss allowance.
Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components, in which case they are recognised at fair value. The Company holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.
Trade receivables are also subject to the impairment requirements of IFRS 9. The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. See note 7, Credit risk section.
Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Company, and a failure to make contractual payments for a period of greater than 180 days past due.
Ordinary shares are classified as equity.
At the date of approval of these financial statements, standards and interpretations were issued by the International Accounting Standards Board which were not yet effective. Some of them were adopted by the European Union and others not yet. The Board of Directors expects that the adoption of these accounting standards in future periods will not have a material effect on the financial statements of the Company.
The Company is exposed to market price risk, interest rate risk, credit risk, liquidity risk, currency risk and capital risk management arising from the financial instruments it holds. The risk management policies employed by the Company to manage these risks are discussed below:
The Company is exposed to equity securities price risk because of investments held by the Company and classified on the statement of financial position either as fair value through other comprehensive income or at fair value through profit or loss. The Company is not exposed to commodity price risk.
The Company's equity investments that are publicly traded are included in the [Cyprus Stock Exchange General Index] and the [Athens Stock Exchange Composite Index].
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. 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 arises from cash and cash equivalents, contractual cash flows of debt investments carried at amortised cost, at fair value through other comprehensive income (FVOCI) and at fair value through profit or loss (FVTPL), favourable derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to wholesale and retail customers, including outstanding receivables and contract assets.
Credit risk is managed on a group basis.
For banks and financial institutions, only independently rated parties with a minimum rating of 'C' are accepted. If 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 has the following types of financial assets that are subject to the expected credit loss model:
The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables (including those with a significant financing component, lease contracts and contract assets.
To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The Company defines default as a situation when the debtor is more than 90 days past due on its contractual payments. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of contracts. The Company has therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the contract assets.
The expected loss rates are based on the payment profiles of sales over a period of 36 months before 31 December 2019 or 1 January 2019 respectively and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The Company has identified the GDP and the unemployment rate of the countries in which it sells its goods and services to be the most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors.
Trade receivables and contract assets are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Company, and a failure to make contractual payments for a period of greater than 180 days past due.
Impairment losses on trade receivables and contract assets are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item.
The primary purpose of these instruments is to ensure that funds are available to a borrower as required. Fluarantees which represent irrevocable assurances that the Company will make payments in the event that a counterparty cannot meet its obligations to third parties, carry the same credit risk as loans receivable. Commitments to extend credit represent unused portions of authorisations to extend credit in the form of loans or guarantees. With respect to credit risk on commitments to extend credit, the Company is potentially exposed to loss in an amount equal to the total unused commitments, if the unused amounts were to be drawn down. The Company monitors the term to maturity of credit related commitments, because longer-term commitments generally have a greater degree of credit risk than shorter-term commitments.
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.
Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the Company's measurement currency. The Company is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the US Dollar and the Euro. The Company's Management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.
Capital includes equity shares and share premium, convertible preference shares and loan from parent company.
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance. The Company's overall strategy remains unchanged from last year.
Estimates and judgments are continually evaluated and are based on historical experience and other factors. including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Significant judgment is required in determining the provision for income taxes. There are transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.
Critical judgements in applying the Company's accounting policies
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Company uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at each reporting date. The fair value of the financial assets at fair value through other comprehensive income has been estimated based on the fair value of these individual assets.
The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation. based on the Company's past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Details of the key assumptions and inputs used are disclosed in note 7, Credit risk section.
The impairment test is performed using the discounted cash flows expected to be generated through the use of non-financial assets, using a discount rate that reflects the current market estimations and the risks associated with the asset. When it is impractical to estimate the recoverable amount of an asset, the Company estimates the recoverable amount of the cash generating unit in which the asset belongs to.
Intangible assets are initially recorded at acquisition cost and are amortized on a straight line basis over their useful economic life. Intangible assets that are acquired through a business combination are initially recorded at fair value at the date of acquisition. Intangible assets with indefinite useful life are reviewed for impairment at least once per year. The impairment test is performed using the discounted cash flows expected to be generated through the use of the intangible assets, using a discount rate that reflects the current market estimations and the risks associated with the asset. When it is impractical to estimate the recoverable amount of an asset, the Company estimates the recoverable amount of the cash generating unit in which the asset belongs to.
The Company derives its revenue from contracts with Customers for the transfer of services over time and at a point in time in the following major service lines.
| 2019 | 2018 | |
|---|---|---|
| $\epsilon$ | ||
| Rendering of services | 12,427 | 22,285 |
| Commissions receivable | 481,795 | 588,692 |
| 494,222 | 610.977 |
| 2019 | 2018 | |
|---|---|---|
| € | € | |
| Services received | 215,050 | 276,894 |
| 215,050 | 276,894 | |
| 11. Other operating income | ||
| 2019 € |
2018 € |
|
| Interest income | 6,120 | 10,332 |
| Exchange profit | 1,232 | 1,765 |
| Profit from oper. activities - non-taxable income | 13,580 | 832 |
| Sundry operating income | 460 | 216 |
| 21,392 | 13,145 |
Interest income is analysed as follows:
| 2019 | 2018 | |
|---|---|---|
| € | ||
| Bank deposits | 6,120 | 10,332 |
| 6.120 | 10.332 |
| 2019 | 2018 | |
|---|---|---|
| € | ||
| Motor vehicle running costs | 732 | 1,128 |
| Inland travelling | 11,630 | 9,095 |
| 12,362 | 10.223 |
| 2019 | 2018 | |
|---|---|---|
| € | € | |
| Staff costs | 102,718 | 119,933 |
| Rent | 36,000 | |
| Common expenses | 900 | 720 |
| Sewage expenses | 72 | |
| Licenses and taxes | 222 | 413 |
| Municipality taxes | 206 | |
| Annual levy | 350 | 350 |
| Electricity | 2,332 | 2,792 |
| Water supply and cleaning | 533 | 127 |
| Insurance | 2,894 | 2,610 |
| Repairs and maintenance | 793 | |
| Sundry expenses | 10,131 | 43,785 |
| Telephone and postage | 4,958 | 4,832 |
| Stationery and printing | 458 | 80 |
| Subscriptions and contributions | 47,178 | 41,066 |
| Staff training | 2,922 | 1,293 |
| Sundry staff costs | 523 | |
| Computer supplies and maintenance | 2,730 | 2,815 |
| Certification and legalisation expenses | 285 | |
| Auditors' remuneration | 3,750 | 9,200 |
| Accounting fees | 2,250 | 2,719 |
| Other professional fees | 15,936 | 39,890 |
| Fines | 35 | 54 |
| Inland travelling and accommodation | 5,721 | 10,823 |
| Entertaining | 12,436 | 26,081 |
| Motor vehicle running costs | 323 | 401 |
| Other Expenses | 22,742 | 30,911 |
| Amortisation of computer software | 661 | 3,643 |
| Depreciation | 44,456 | 19,798 |
| 287,714 | 401,137 |
| 2019 | 2018 | |
|---|---|---|
| € | € 4,620 |
|
| Loss on disposal of property, plant and equipment Loss from op. activities - tax allowable expense |
2,946 | 735 |
| 2,946 | 5,355 | |
| 15. Staff costs | ||
| 2019 | 2018 | |
| Salaries Social security costs Social cohesion fund |
€ 90,757 10,196 1,765 |
€ 107,822 10,005 2,106 |
| 102,718 | 119,933 | |
| 16. Finance costs | ||
| 2019 € |
2018 € |
|
| Net foreign exchange losses Interest expense Sundry finance expenses |
1,202 6,619 6,695 |
3,540 58 6,042 |
| Finance costs | 14,516 | 9,640 |
| 17. Tax | ||
| 2019 | 2018 | |
| Defence contribution | € 1,836 |
€ 3,100 |
| Charge for the year | 1,836 | 3,10 |
The tax on the Company's results before tax differs from theoretical amount that would arise using the applicable tax rates as follows:
| 2019 € |
2018 € |
|
|---|---|---|
| Loss before tax | (15,702) | (83,374) |
| Tax calculated at the applicable tax rates Tax effect of expenses not deductible for tax purposes Tax effect of allowances and income not subject to tax Tax effect of tax losses brought forward Tax effect of tax loss for the year Defence contribution current year |
(1,963) 7,291 (3,407) (1,921) 1,836 |
(10, 422) 8.452 (3,728) 5,698 3,100 |
| Tax charge | 1,836 | 3,100 |
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
this interest will be exempt from corporation tax. In certain cases, dividends received from abroad may be s defence contribution at the rate of 17%.
Gains on disposal of qualifying titles (including shares, bonds, debentures, rights thereon etc) are exempt from Cyprus income tax.
The Company's chargeable income for the year amounted to €15,370 which has been set off against tax losses brought forward. Unrecognised deferred tax assets
| Motor | Furniture, vehicles fixtures and office equipment |
Total | |
|---|---|---|---|
| € | € | € | |
| Cost | 58,618 | 32,153 | 90,771 |
| Balance at 1 January 2018 Additions/(Disposals) |
(15,600) | 235 | (15,365) |
| Balance at 31 December 2018/1 January 2019 Additions |
43,018 25,475 |
32,388 234 |
75,406 25,709 |
| Balance at 31 December 2019 | 68,493 | 32,622 | 101,115 |
| Depreciation Balance at 1 January 2018 Charge for the year On disposals |
26,185 15,157 (8,980) |
14,128 4,641 |
40,313 19,798 (8,980) |
| Balance at 31 December 2018/1 January 2019 Charge for the year |
32,362 11,998 |
18,769 2,757 |
51,131 14,755 |
| Balance at 31 December 2019 | 44,360 | 21,526 | 65,886 |
| Net book amount | |||
| Balance at 31 December 2019 | 24,133 | 11,096 | 35,229 |
| Balance at 31 December 2018 | 10.656 | 13,619 | 24,275 |
In the cash flow statement, proceeds from sale of property, plant and equipment comprise:
| 2019 | 2018 | |
|---|---|---|
| € | ||
| Net book amount | (8.980) | |
| (Loss) from the sale of property, plant and equipment (Note 14) | (4,620) | |
| Proceeds from disposal of property, plant and equipment | (13.600) |
| Land and buildings |
Total | |
|---|---|---|
| € | € | |
| Cost Additions |
118,803 | 118,803 |
| Balance at 31 December 2019 | 118,803 | 118,803 |
| Depreciation Charge for the year |
29,701 | 29,701 |
| Balance at 31 December 2019 | 29,701 | 29,701 |
| Net book amount | ||
| Balance at 31 December 2019 | 89,102 | 89,102 |
| Amounts recognised in profit and loss: | ||
| 2019 | 2018 | |
| Depreciation expense of right-of-use assets Interest expense on lease liabilities |
€ 29,701 2,982 |
€ |
| 20. Intangible assets | ||
| Computer software € |
Total € |
|
| Cost | 13,591 | 13,591 |
| Balance at 1 January 2018 Balance at 31 December 2018 |
13,591 | 13,591 |
| Amortisation Balance at 1 January 2018 Amortisation for the year |
9,287 3.643 |
9,287 3,643 |
|---|---|---|
| Balance at 31 December 2018 | 12,930 | 12.930 |
| Balance at 31 December 2018/ 1 January 2019 Amortisation for the year |
12,930 661 |
12,930 661 |
| Balance at 31 December 2019 | 13,591 | 13,591 |
| Net book amount | ||
| Balance at 31 December 2019 | ||
| Balance at 31 December 2018 | 661 | 661 |
13,591 13,591
13,591 13,591
31 December 2019
| 2019 | 2010 | |
|---|---|---|
| € | ||
| Balance at 1 January | 35,000 | 35,000 |
| Disposals | (35,000) | $\overline{\phantom{a}}$ |
| Balance at 31 December | - | 35,000 |
$\frac{1}{2}$
$2010$
| 2019 | 2018 | |
|---|---|---|
| € | € | |
| Additions | 5.000 | $\overline{\phantom{0}}$ -------- |
(i) Disposal of equity investments
On disposal of these equity investments, any related balance within the FVOCI reserve is reclassified to retained earnings.
On disposal of these debt investments, any related balance within the FVOCI reserve is reclassified to profit or loss.
| 2019 € |
2018 € |
|
|---|---|---|
| Trade receivables | 933,882 | 1,446,926 |
| Receivables from own subsidiaries (Note 32.2) | 3,271 | |
| Shareholders' current accounts - debit balances (Note 32.4) | 30,894 | 389 |
| Deposits and prepayments | 5.865 | 10,213 |
| Other receivables | 81.561 | 39,595 |
| Refundable VAT | 20,678 | 15,324 |
| 1.076,151 | 1.512.44 |
The fair values of trade and other receivables due within one year approximate to their carrying amounts as presented above.
The exposure of the Company to credit risk and impairment losses in relation to trade and other receivables is reported in note 7 of the financial statements.
| 2019 | 2018 | |
|---|---|---|
| € | € | |
| Balance at 1 January | 79,555 | 22,566 |
| Additions/(Disposals) | (72, 468) | 61,236 |
| Change in fair value | 1,272 | (4,247) |
| Balance at 31 December | 8.359 | 79.555 |
The financial assets at fair value through profit or loss are marketable securities and are valued at market value at the close of business on 31 December by reference to Stock Exchange quoted bid prices. Financial assets at fair value through profit or loss are classified as current assets because they are expected to be realised within twelve months from the reporting date.
In the cash flow statement, financial assets at fair value through profit or loss are presented within the section on operating activities as part of changes in working capital. In the statement of profit or loss and other comprehensive income, changes in fair values of financial assets at fair value through profit or loss are recorded in operating income.
| 2019 | 2018 | |
|---|---|---|
| € | € | |
| Balance at 1 January | 76.632 | 76.632 |
| Additions | 3,555 | |
| Balance at 31 December | 80,187 | 76,632 |
Cash balances are analysed as follows:
| 2019 | 2018 | |
|---|---|---|
| € | ||
| Cash at bank and in hand | 107,789 | 43,753 |
| 107.789 | 43.753 |
The principal non-cash transactions during the current and prior year were the acquisition of property, plant and equipment using lease agreements.
The exposure of the Company to credit risk and impairment losses in relation to cash and cash equivalents is reported in note 7 of the financial statements.
| 2019 Number of shares |
2019 € |
2018 Number of shares |
2018 € |
|
|---|---|---|---|---|
| Authorised Ordinary shares of $€1,00$ each |
1.000.000 | 1,000,000 | L.000.000. | .000.000 |
| Issued and fully paid Balance at 1 January |
600.000 | 600,000 | 600.000 | 600,000 |
| Balance at 31 December | 600,000 | 600,000 | 600,000 | 600,000 |
31 December 2019
| The present value of minimum | ||||
|---|---|---|---|---|
| Minimum lease payments | lease payments | |||
| 2019 | 2018 | 2019 | 2018 | |
| € | € | € | ||
| Not later than 1 year | 18,000 | 15,786 | ||
| Later than 1 year and not later than 5 years | 72,000 | 69,999 | ||
| 90,000 | 85,785 | |||
| Future finance charges | (4,215) | |||
| Present value of lease liabilities | 85,785 | 85,785 |
It is the Company's policy to lease its buildings for office use. The average lease term is 48 months. For year ended 31 December 2019, the average effective borrowing rate was 3.0% (2018: - %). Interest rates are fixed at the contract date, and thus expose the Company to fair value interest rate risk. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
All lease obligations are denominated in Euro.
The fair values of lease obligations approximate to their carrying amounts as presented above.
The Company's obligations under leases are secured by the lessors' title to the leased assets.
Deferred tax is calculated in full on all temporary differences under the liability method using the applicable tax rates (Note 17). The applicable corporation tax rate in the case of tax losses is 12,5%.
| 2019 € |
2018 €. |
|
|---|---|---|
| Trade payables | 813,514 | 1,364,372 |
| Social insurance and other taxes | 3,760 | 3,193 |
| Accruals | 2,867 | 4,151 |
| Other creditors | 123,550 | 13,036 |
| Defence tax on rent payable | 810 | 338 |
| Payables to own subsidiaries (Note 32.3) | 33,000 | 33,000 |
| 977,501 | .418.090 |
The fair values of trade and other payables due within one year approximate to their carrying amounts as presented above.
| 2019 | 2018 | |
|---|---|---|
| € | ||
| Special contribution for defence | 4.936 | 3,100 |
| 4.936 | 3.100 |
The following transactions were carried out with related parties:
The remuneration of Directors and other members of key management was as follows:
| 2019 | 2018 | ||
|---|---|---|---|
| € | € | ||
| Directors' remuneration | 64,199 | 80,262 | |
| 64,199 | 80,262 | ||
| 32.2 Receivables from related parties (Note 23) | |||
| 2019 | 2018 | ||
| Name | Nature of transactions | € | € |
| Aeonic Investments Ltd | Finance | 3,271 | |
| 3,271 | |||
| 32.3 Payables to related parties (Note 30) | |||
| 2019 | 2018 | ||
| Name | Nature of transactions | € | € |
| Aeonic Investments Ltd | Finance | 33,000 | 33,000 |
| 33,000 | 33,000 | ||
| 32.4 Shareholders' current accounts - debit balances (Note 23) | |||
| 2019 | 2018 | ||
| € | € | ||
| Alexandros Sinos | 30,894 | 389 | |
| 30.894 | 389 |
The shareholders' current accounts are interest free, and have no specified repayment date.
At the end of the year, no significant agreements existed between the Company and its Management.
The Company had no contingent liabilities as at 31 December 2019.
The Company had no capital or other commitments as at 31 December 2019.
Accounting policies applicable to the comparative period ended 31 December 2018 that were amended by IFRS 16, are as follows.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
With the recent and rapid development of the Coronavirus disease (COVID-19) outbreak the world economy entered a period of unprecedented health care crisis that has already caused considerable global disruption in business activities and everyday life. Many countries have adopted extraordinary and economically costly containment measures. Certain countries have required companies to limit or even suspend normal business operations. Governments, including the Republic of Cyprus, have implemented restrictions on travelling as well as strict quarantine measures.
Industries such as tourism, hospitality and entertainment are expected to be directly disrupted significantly by these measures. Other industries such as manufacturing and financial services are expected to be indirectly affected and their results to also be negatively affected.
The financial effect of the current crisis on the global economy and overall business activities cannot be estimated with reasonable certainty at this stage, due to the pace at which the outbreak expands and the high level of uncertainties arising from the inability to reliably predict the outcome.
The event is considered as a non-adjusting event and is therefore not reflected in the recognition and measurement of the assets and liabilities in the financial statements as at 31 December 2019.
Management has considered the unique circumstances and the risk exposures of the Company and has concluded that there is no significant impact in the Company's profitability position.
| CONTENTS | PAGE |
|---|---|
| Detailed income statement | $\overline{2}$ |
| Cost of sales | 3 |
| Operating expenses | 4 |
| Finance expenses | 5 |
| Computation of wear and tear allowances | $6 - 7$ |
| Computation of defence contribution | 8 |
| Computation of corporation tax | 9 |
| Calculation of tax losses for the five year period | 9 |
31 December 2019
| 2019 | 2018 | ||
|---|---|---|---|
| Page | € | € | |
| Revenue Rendering of services Commissions receivable Cost of sales |
3 | 12,427 481,795 (215,050) |
22,285 588,692 (276,894) |
| Gross profit | 279,172 | 334,083 | |
| Other operating income Interest from overseas Other interest income Unrealised foreign exchange profit Sundry operating income Profit from oper. activities - non-taxable income Net fair value gains on financial assets at fair value through profit or loss |
5,567 553 1,232 460 13,580 1,272 301,836 |
10,332 1,765 216 832 347,228 |
|
| Operating expenses Administration expenses Selling and distribution expenses |
4 4 |
(287,714) (12,362) 1,760 |
(401, 137) (10,223) (64, 132) |
| Other operating expenses Loss on disposal of property, plant and equipment Loss from op. activities - tax allowable expense Net fair value losses on financial assets at fair value through profit or loss |
(2,946) | (4,620) (735) (4,247) |
|
| Operating loss Finance costs |
5 | (1, 186) (14,516) |
(73, 734) (9,640) |
| Net loss for the year before tax | (15, 702) | (83, 374) |
| 2019 € |
2018 € |
|
|---|---|---|
| Cost of sales | ||
| Direct costs Services received |
215,050 | 276,894 |
| 215,050 | 276,894 |
| 2019 | 2018 | |
|---|---|---|
| € | € | |
| Administration expenses | ||
| Directors' remuneration | 64,199 | 80,262 |
| Staff salaries | 26,558 | 27,560 |
| Social insurance | 10,196 | 10,005 |
| Social cohesion fund | 1,765 | 2,106 |
| Rent | 36,000 | |
| Common expenses | 900 | 720 |
| Sewage expenses | ÷ | 72 |
| Licenses and taxes | 222 | 413 |
| Municipality taxes | ÷, | 206 |
| Annual levy | 350 | 350 |
| Electricity | 2,332 | 2,792 |
| Water supply and cleaning | 533 | 127 |
| Insurance | 2,894 | 2,610 |
| Repairs and maintenance | 793 | |
| Sundry expenses | 10,131 | 43,785 |
| Telephone and postage | 4,958 | 4,832 |
| Stationery and printing | 458 | 80 |
| Subscriptions and contributions | 47,178 | 41,066 |
| Staff training | 2,922 | 1,293 |
| Sundry staff costs | 523 | |
| Computer supplies and maintenance | 2,730 | 2,815 |
| Certification and legalisation expenses | 285 | |
| Auditors' remuneration | 3,750 | 9,200 |
| Accounting fees | 2,250 | 2,719 |
| Other professional fees | 15,936 | 39,890 |
| Fines | 35 | 54 |
| Inland travelling and accommodation | 5,721 | 10,823 |
| Entertaining | 12,436 | 26,081 |
| Motor vehicle running costs | 323 | 401 |
| Other Expenses | 22,742 | 30,911 |
| Amortisation of computer software | 661 | 3,643 |
| Depreciation | 44,456 | 19,798 |
| 287,714 | 401,137 | |
| 2019 | 2018 | |
| € | € |
| Selling and distribution expenses | 732 | 1.128 |
|---|---|---|
| Motor vehicle running costs | ||
| Inland travelling | 11,630 | 9,095 |
| 12.362 | 10.223 |
31 December 2019
| 2019 € |
2018 € |
|
|---|---|---|
| Finance costs | ||
| Interest expense Interest expense on lease liabilities Bank overdraft interest |
2,982 3,637 |
58 |
| Sundry finance expenses Bank charges |
6,695 | 6,042 |
| Net foreign exchange losses Realised foreign exchange loss Unrealised foreign exchange loss |
1,166 36 |
2,247 1,293 |
| 14,516 | 9.640 |
| COST | ANNUAL ALLOWANCES | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | So | Balance 01/01/2019 € |
Additions for the year |
Disposals for the year |
$\begin{array}{rcl}\n\text{Balance} \ 31/12/2019 \ \text{E}\n\end{array}$ | 01/01/2019 Balance |
Charge for the year |
disposals ర్ |
Balance 31/12/2019 |
Net value $31/12/2019$ $e$ |
|
| Ford Focus KVM 067 Motor vehicles Toyota Dicran BMW F32 Renault |
2016 2015 2012 |
$\pmb{\mathrm{t}}$ $\mathbf{I}$ $\pmb{\cdot}$ |
018 2022 $\mathbf{r}$ ထဲ ဤ ဤ 43, |
25,474 25,474 |
8,500 15,752 18,766 25,474 68,492 |
8,500 15,752 18,766 25,474 68,492 |
|||||
| Furniture, fixtures and office equipment Furniture & Fittings Furniture & Fittings Office Equipment |
2012 2012 2012 |
Չ ≘ |
ကဲ $\mathcal{L}_{\mathcal{A}}$ |
88854888888888888888888888888888888888 | ន ្តងន្ទី ± | ||||||
| Office Equipment Office Equipment |
2013 2015 |
9999 | |||||||||
| Office Equipment Telephones |
2016 2015 |
$\Gamma$ | |||||||||
| Furniture & Fittings Mobile Phone Shredder |
2016 2016 2016 |
유 X £, |
|||||||||
| Dishwasher Earphones |
2016 | ||||||||||
| Inventor 9000 (3 items) Inventor 24000 Iron |
RESERRRRRR | ||||||||||
| Inventor 12000 (2 items) Inventor 12000 WI-FI Inventor 18000 WI-FI module |
$\omega \sim$ | ||||||||||
| Battery Wireless Detectors (4 items) Wireless smoke Detector Wireless PIR Detector Trikdis G10T |
|||||||||||
| Smoke Detector Artion (5 items) Remote control (2 items) Temperature Detector Alarm System Artion Samsung Galaxy S7 |
2017 2017 |
8888888888888888888 $\overline{a}$ |
ខ្លួន ទីដូងទីដូន ដូងទីដូន មិនមិន មកដូង ទី និង | ្ត ក្នុងដូចដូចដូចដូនដូលខ្លាំងមិនទីទីទីមិនមានមិនមិនមិន ក្នុងដូចដូនដូចនេដូនដូចខ្លួនមិនមិនមិនមិនមិន |
$\begin{array}{c}\n0 \ 0 \ \infty \ \infty \ \infty\n\end{array}$ | おみょのおはフ | es ទី៥៦នាក់ជិតនិងមិនទីនងវិទ្ធនិង ប្រភព |
ន្លដ្ឋខ្លួយ ដូច ។ និង ដូច ដូច ដូច ដូច ដូច ដូច ដូច ដូច ដូច ដូច |
$\label{eq:1} \begin{array}{ll} \mathcal{L}{\text{in}}(\mathcal{A}) & \mathcal{L}{\text{out}}(\mathcal{A}) \ \mathcal{L}{\text{out}}(\mathcal{A}) & \mathcal{L}{\text{out}}(\mathcal{A}) \end{array}$
$\circ$
| ŗ ľ |
|---|
| I ļ ֡֡֡֡֡֡֡֡֡ I |
| ı |
| ֚֘֝ |
$\mathbf{I}$
| င္မွာ | NNUAL AI | DWANCES | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Additions | Disposals | Balance | Charge | င် | Balance | Net value 31/12/2019 $\in$ |
|||||
| Year | ಸಿ | 01/01/ | for the year | for the year | 31/12/2019 | Balance 01/01/2019 |
for the year | disposals | 31/12/2019 | ||
| $\begin{array}{ll}\n \text{Balance} \ \text{01/2019} \ \in\n \end{array}$ | Ψ | Ψ | Ψ | ||||||||
| Furniture, fixtures and office equipment (continued) | |||||||||||
| Shredder | 2017 | $\Xi$ | |||||||||
| Kettle | 2017 | ||||||||||
| Meridian Wash Basin | |||||||||||
| Mobile phone | |||||||||||
| Gallery Carolina Plafon Lights (2 items) | |||||||||||
| Eglo Lights | 2022222222222222222222222222222222222 | 8888888888 | ដូងដូងូងូនខ្លួងខ្ល | $3738888988787878787878788788788788788788788$ | 234215226 | 92558135 | ន្ទ្រងន្ទ្រដ្ឋក្នុងនូវ | ង ៤ ភ្នំដូង ដូង ដូង | |||
| Pendant Mark Urban Grey Lights | |||||||||||
| White Table | თ, | ||||||||||
| Coffee/Tea cups | m | 600 | 300 | 90G | |||||||
| Pinakes | 75 | 2,100 | |||||||||
| Vaccum Cleaner | 335 م ب |
75 | 19,410 | 7,458 | 943 | 9,401 | 10,009 | ||||
| Computer Hardware-cost | |||||||||||
| Computer Hardware | 817 | ||||||||||
| Office Equipment | |||||||||||
| Demstar | |||||||||||
| Demstar | $\mathbf{1}=\mathbf{1}=\mathbf{1}$ | ||||||||||
| PC Monitor 1 | |||||||||||
| PC Monitor 2 | |||||||||||
| dopde | $\begin{array}{c} 211 \ 211 \ 213 \ 214 \ 215 \ 216 \ 218 \ 219 \ 219 \ 219 \ 219 \ 219 \ 219 \ 219 \ 219$ | 23222222 | ERESEE | 12000000000000000000000000000000000000 | 7,644 456 7,644 7,786 7,785 |
2 금 금 금 금 수 네 역 | 7,858 5,918,850 12,128 12,128 |
$141$ $127$ |
|||
| ğ | |||||||||||
| 054 ្អ |
$\frac{59}{159}$ | .3,213 | 1,316 | .085 | |||||||
| 407 75 |
25,708 | 101,115 | 18,774 | 2,755 | 21,529 | 79,586 | |||||
| Total | |||||||||||
| Computer software | |||||||||||
| MS. Office Pro 2010 | |||||||||||
| Solution ERP | |||||||||||
| Advak Barracuda | |||||||||||
| Disaster Recovery | $\begin{smallmatrix} 2 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 & 0 \ 0 & 0 & 0 & 0 & $ | ដ្ឋខ្ពុន្តុន្ត | $\begin{array}{c}\n 1.810 \ 2.500 \ 6.500 \ 7.40 \ 8.1\n\end{array}$ | 3352 | $\begin{array}{c}\n 1.810 \ 2.500 \ 3.500 \ 4.50 \ 5.500 \ 7.50 \ 8.50 \ 9.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.81 \ 1.8$ | ||||||
| SQL Recovery | |||||||||||
| Software Digicert | 2017 2017 |
នួននួននួ | \$38 | $\begin{bmatrix} 1 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 &$ | |||||||
| 3,590 | 12,931 | 659 | 13,590 | ||||||||
$\overline{r}$
Income Rate Defence $\in$ INTEREST 5,567 Interest from overseas Interest that was not subject to deduction at source $553$ 30% $6,120$ 1,836.00 1,836.00
$\in$ c
| Net loss per income statement Add: |
Page 2 |
€ | € (15,702) |
|---|---|---|---|
| Salaries with no contributions to the Social Insurance Fund Depreciation Fair value losses on financial assets at fair value through profit or loss Entertaining Realised foreign exchange loss Unrealised foreign exchange loss Annual levy Fines |
2,493 45,117 1,636 7,493 1,166 36 350 35 |
||
| 58,326 42,624 |
|||
| Less: Annual wear and tear allowances Profit from oper. activities - non-taxable income Fair value gains on financial assets at fair value through profit or loss Interest income Unrealised foreign exchange profit |
7 | 3,414 13,580 2,908 6,120 1,232 |
(27,254) |
| Chargeable income for the year | 15,370 | ||
| Loss brought forward | (102,774) | ||
| Loss Unutilised loss of the year 2014 not carried forward |
(87, 404) 41,817 |
||
| Net loss carried forward | (45,587) |
| Tax year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|
| € | € | € | € | € | € | |
| Profits/(losses) for the tax year | (57,187) | 35,935 | 53,774 | 80,047 | (45, 587) | 15,370 |
| Gains Offset $(\epsilon)$ | 35,935 | 53,774 | 80,047 | 15,370 | ||
| - Year | 2012 | 2012 | 2013 | 2014 | ||
| Gains Offset $(\epsilon)$ | $\overline{\phantom{a}}$ | - | ÷ | $\overline{\phantom{a}}$ | ||
| - Year | ||||||
| Gains Offset $(\epsilon)$ | $\overline{\phantom{a}}$ | - | - | - | $\overline{\phantom{a}}$ | |
| - Year | ||||||
| Gains Offset $(\epsilon)$ | $\overline{\phantom{a}}$ | ۰ | ||||
| - Year | ||||||
| Gains Offset $(\epsilon)$ | $\overline{\phantom{a}}$ | ۰. | - | |||
| - Year |
Net loss carried forward
$(45,587)$
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