REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

PAGE

Board of Directors and other officers	1
Management Report	2 - 3
Independent auditor's report	4 - 6
Consolidated statement of profit or loss and other comprehensive income	7
Consolidated statement of financial position	8
Consolidated statement of changes in equity	ರ
Consolidated cash flow statement	10
Notes to the consolidated financial statements	11 - 27

BOARD OF DIRECTORS AND OTHER OFFICERS

Board of Directors:	Alexandros Sinos Serafeim Charalampidis Stephanos Kazantzis Panagiotis Brouskaris Evangelos Drympetas Gloria Chrysafi
Company Secretary:	Gloria Chrysafi
Independent Auditors:	C&N Auditors Ltd Chartered Certified Accountants 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

MANAGEMENT REPORT

The Board of Directors presents its report and audited financial statements of the Company and its subsidiaries (together with the Company, the "Group") for the year ended 31 December 2018.

Incorporation

The Company AEONIC SECURITIES C.I.F. PLC 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.

The Company AEONIC INVESTMENTS LTD was incorporated in Cyprus on 12th of December 2014 as a private limited liability company under the provisions of the Cyprus Companies Law, Cap. 113.

Principal activities and nature of operations of the Group

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 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.

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

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

Principal risks and uncertainties

The principal risks and uncertainties faced by the Group are disclosed in notes 3, 4 and 24 of the consolidated financial statements.

Going concern basis

The financial statements have been prepared on a going concern basis since it is the intention of the Board of Directors to continue the operations of the Company.

Interest rate risk

Interest rate risk is the risk the value of financial instruments will fluctuate due to changes in market interest rates. The Group's income and operating cash flows are substantially independent of changes in market interest rates as the Group has no significant interest-bearing assets. The Group is exposed to interest rate risk in relation to its non-current borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk. Borrowings issued at fixed rates expose the Group 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 a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities - primarily trade receivables and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

Credit risk related to trade receivables: This is managed based on established policies, procedures and controls relating to customer credit risk management. Credit limits are established for all customers based on internal ratings. Credit quality of the customer is assessed and outstanding customer receivables are regularly monitored. The Group does not hold collateral as security.

MANAGEMENT REPORT

Liquidity risk

Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position entially enhances profitability, but can also increase the risk of losses. The Group 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.

Results

The Group's results for the year are set out on page 7. The net loss for the year is carried forward.

Share capital

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

Board of Directors

The members of the Company's Board of Directors as at 31 December 2018 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 2018.

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.

Events after the reporting period

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

Related party transactions

Disclosed in note 25 of the consolidated financial statements.

Independent Auditors

The Independent Auditors, C&N Auditors 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,

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Serafeim Charalampidis Managing Director

Nicosia, 22 April 2019

Independent Auditor's Report

To the Members of AEONIC SECURITIES C.I.F. PLC

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of AEONIC SECURITIES C.I.F. PLC (the "Company") and its we have auched the "Group"), which are presented in pages 7 to 27 consolidated statement of Subsidianes (title Sirbup ); which are prescrited in pages > to ils tatements of profit or loss and other to the concolidated Thandle position as at 31 December 2010, and the continued on the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements give a true and fair view of anyarin naffermance and its In our opinion, the accompanying consonutions stations in the its consolidated financial performance and its mancal position of the Group as at 31 December 2007 and with International Financial Repring Standards Consolicated Casif The Free Jean Che requirements of the Cyprus Companies Law, Cap. 113.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISA). Our responsibilities under we conducted our adult in accordance with Interliked in the Audit of the Consolidated Financial thise Standaus are further described in the Alance of the Group in accordance with the "International Ethics" Statential Section of our report. We are intelperations of the Suntants' (IESBA Code) together with the Standards Board Tor Accountants Code of Echics Tor Friendial statements in Cyprus, and we have have thave echical requirements that are relevant to be radicor the sensirements and the IESBA Code. We believe that rumled our other economics in tices in fices, and appropriate to provide a basis for our opinion.

Other information

The Board of Directors is responsible for the other information comprises the information only and our availarly The board of Directors is responsible for the consolidated financial statements and our auditor's report thereon.

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

In connection with our audit of the consolidated financial statements, our responsibility is to reald the opporidated In Comecion with our adult of the considered information is materially inconsistent with the consolicated of Information and, In uolig so, consider the and in the and morners appears to be materially missted. If, Thancial statements of our Kriowcuge obdained in the there is a material misstatement of this other information, bused on the work we have nothing to report in this regard.

Responsibilities of the Board of Directors for the Consolidated Financial Statements

The Board of Directors is responsible for the preparation of consolidated financial statements that give a true and the The Board of Direcors is responsible in the preparation of Chisolned by the Firspean Union and the Union and the fair view in accordance with International Hindian Reported internal control as the Board of Directors requirements of the Cyprus Companies Lawy Capy Capy Carp, Carp, Carpolidated financial statements that are from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group's the In preparing the consolidated intured statements, the purces related to going concern and using the conse administration of concine concern, alstibling, as &picables within intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

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 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounting & Audit Services Consulting & Advisory Services Taxation & Vat Services Software Solutions Trust Services Financial Services Advisory International Corporate Services Wealth Management

Independent Auditor's Report (continued)

To the Members of AEONIC SECURITIES C.I.F. PLC

Responsibilities of the Board of Directors for the Consolidated Financial Statements (continued)

The Board of Directors is responsible for overseeing the Group's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements tipet included Our objectives and to obtain reasonalise as arrang and to issue an auditor's report that includes are nee nom missuement, missial will of assurance, but is not a guarantee that an audit condicted in our opinion. Reasonable assurance to a mgriller it exists. Misstatements can arise from frault accordinee with in andy actial if, individually or in the aggregate, they could reasonably be expected to of enor and are considered material "in the basis of these consolidated 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 consolidated financial statements, whether Identify and assess the hind perform audit procedures responsive to those risks, and obtain audit duct to mudd of Christian 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 muchar miscuterial resultant onlissions, misrepresentations, or the override of internal control.
Involve collusion, forger // 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 the effectiveness of the Group's internal control.
errecuveress of the Group Internal 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 aloculated the Board of Directors' use of the going concern basis of accounting Conclude on the appropriateriass of tained, whether a material uncertainty exists related to events on and/ based on that may cast significant doubt on the Group's ability to continue as a going concern. If we condidons that may case bightheant as a so we are required to draw attention in our audico's report to the conclude that a material andertains, or, if such disclosures are indicalosures are indequates, to any of any related alsered in the onclusions are based on the audit evidence obtained up to the date of our modily our opinion. Our condisions are based of in the Group to cease to continue as a going concern.
going overall presentation, structure and content of the consolidated financial statements, including Evaluate the overall presentation) of assisted financial statements represent the underlying transactions and events in a manner that achieves a true and fair view.
and events in a mannel that evidence regarding the financial information of the entities or business Obtain Sunticient upprophate adalt onlyning on the consolidated financial statements. We are accivices mann and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the we conmunitiate with the Dodia of Directors regarding the open internal control that we identify during our audit.

Report on Other Legal Requirements

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

it to the adultional requirement Report has been prepared in accordance with the requirements of the In our opinion, the Pranagement Report has been propilian is consistent with the consolidated financial statements.
Statentents.
In our opinion, and in the light of the knowledge and understanding of the Group and its environment obtained in the course of the Mission of the Misstatements in the Management Report.

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 : o f f i c e @ c n - c . Accounting & Audit Services Consulting & Advisory Services Taxation & Vat Services Software Solutions Trust Services Financial Services Advisory International Corporate Services Wealth Management

Independent Auditor's Report (continued)

To the Members of AEONIC SECURITIES C.I.F. PLC

Other Matter

This report, including the opinion, has been prepared for and only for the Company's members as a body in This Teport, Including the Opinion, has been proparise for and only in giving this oping this opinion, accordance with Section of of the Rulers Low of 2017 the for ho band parpose or whose knowledge this report may come to.

C&N AUDITORS LTD Certified Public Accountant and Registered Auditor

for and on behalf of C&N Auditors Ltd Chartered Certified Accountants

Nicosia, 22 April 2019

Accounting & Audit Services Consulting & Advisory Services Taxation & Vat Services Software Solutions Trust Services Financial Services Advisory International Corporate Services Wealth Management

consolidated Statement of Profit or Loss and OTHER COMPREHENSIVE INCOME

31 December 2018

	Note	2018 ਉ	2017 ਵ
Revenue Cost of sales	5 6	610,977 (276,894)	754,342 (377,970)
Gross profit		334,083	376,372
Administration fees Transaction costs			100 4,921
Total operating expenses Other operating income Selling and distribution expenses Administration expenses Other expenses	7 8 9 10	31,987 (10,223) (376,167) (18,491)	5,021 75,260 (15,367) (311,029) (13,378)
Operating (loss)/profit		(38,811)	106,837
Finance costs (Loss)/profit before tax	12	(10,356) (49,167)	(8,540) 98,297
Tax	13	(4,955)
Net (loss)/profit for the year		(54,122)	98,297
Other comprehensive income
Total comprehensive income for the year		(54,122)	98.297

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 December 2018

2017 2018 € € Note ASSETS Non-current assets 14 194,225 223,603 Property, plant and equipment 15 661 4,304 Intangible assets 18 76,632 76,632 Investors Compensation Fund 304,539 271,518 Current assets 1,725,177 16 1,503,649 Trade and other receivables Non-pledged financial assets at fair value through profit or loss 17 79,555 22,566 Cash at bank and in hand 19 46,066 206,646 1,629,270 1,954,389 1,900,788 2,258,928 Total assets EQUITY AND LIABILITIES Equity 20 600,000 600,000 Share capital Accumulated losses (164,371) (110,249) 435,629 489,751 Total equity Non-current liabilities 21 73,000 129,000 Borrowings 73,000 129,000 Current liabilities 22 1,388,014 1,640,177 Trade and other payables 23 4,145 Current tax liabilities 1,392,159 1,640,177 1,465,159 1,769,177 Total liabilities 1,900,788 2,258,928 Total equity and liabilities

On 22 April 2019 the Board of Directors of AEONIC SECURITIES C.I.F. PLC authorised these consolidated financial statements for issue.

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.............................................................................................................................................................................. Serafeim Charalampidis Director

Alexandros Sinos Director

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 31 December 2018

	Share capital ਵ	Accumulate d losses (1)	Total 3
Balance at 1 January 2017	600,000	(208,546)	391,454
Comprehensive income Net profit for the year		98,297	98.297
Balance at 31 December 2017		600,000 (110,249)	489,751
Balance at 31 December 2017 / 1 January 2018	600,000	(110,249)	489,751
Comprehensive income Net loss for the year		(54.122)	(54,122)
Balance at 31 December 2018	600,000	(164,371)	435,629

Companies which do not distribute 70% of their profits after tax, as defined by the relevant tax law, within two years Compunes which as not assimbate 70% of the pronomation 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 onal entiled are boon 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.

CONSOLIDATED CASH FLOW STATEMENT

31 December 2018

	Note	2018 €	2017 €
CASH FLOWS FROM OPERATING ACTIVITIES
(Loss)/profit before tax Adjustments for:		(49,167)	98,297
Depreciation of property, plant and equipment Unrealised exchange profit	14	25,393 (472)	19,721 (4,644)
Amortisation of computer software Excess of Group's interest in the net fair value of the subsidiaries' assets	15	3,643	1,093
and liabilities over cost on acquisition Loss from the sale of property, plant and equipment		4,620	(45,032)
Profit from the sale of financial assets at fair value through profit or loss Fair value losses on financial assets at fair value through profit or loss		4,247	(17,216) 10,914
Interest income	7	(10,332)	(185)
Interest expense	12	59	ਰੇਤੋ
		(22,009)	63,041
Changes in working capital: Decrease/(increase) in trade and other receivables		221,528	(283,155)
(Increase)/decrease in financial assets at fair value through profit or loss		(61,236)	51,416
(Decrease)/increase in trade and other payables		(252,163)	203,684
Cash (used in)/generated from operations Tax paid		(113,880) (810)	34,986
Net cash (used in)/generated from operating activities		(114,690)	34,986
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for purchase of intangible assets	15		(1,982)
Payment for purchase of property, plant and equipment	14	(2,635)	(195,832)
Payment for purchase of other assets	18		(3,576)
Proceeds from disposal of property, plant and equipment Interest received	14	2,000 10,332	185
Net cash generated from/(used in) investing activities		9,697	(201,205)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of borrowings		(56,000)	(129,000)
Unrealised exchange profit		472	4,644
Interest paid		(59)	(83)
Net cash used in financing activities		(55,587)	(124,449)
Net decrease in cash and cash equivalents		(160,580) 206,646	(290,668) 497,314
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year	। ਰੇ	46,066	206,646

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

1. Incorporation and principal activities

Country of incorporation

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, Cyprus.

Principal activities

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.

2. Significant accounting policies

The principal accounting policies adopted in the preparation of these consolidated financial statements are set out I he prices policies have been consistently applied to all years presented in these consolidated financial statements unless otherwise stated.

Basis of preparation

These consolidated financial statements have been prepared in accordance with International Financial Reporting ritos consolidated internative by the European Union (EU) and the requirements of the Cyprus Companies Law, Cap.113. These consolidated financial statements have been prepared under the historical cost convention as modified by the revaluation of, and financial assets and financial liabilities at fair value through profit or loss.

Adoption of new and revised IFRSs

During the current year the Group 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 2018. This adoption did not have a material effect on the accounting policies of the Group.

At the date of approval of these consolidated 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 consolidated financial statements of the Group.

Basis of consolidation

The Company has subsidiary undertakings for which section 142(1)(b) of the Cyprus Companies Law Cap. 113 requires consolidated financial statements to be prepared and laid before the Company at the Annual General Meeting. The Group consolidated financial statements comprise the financial statements of the parent company AEONIC SECURITIES C.I.F. PLC and the financial statements of the following subsidiary Aeonic Investments Ltd.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

2. Significant accounting policies (continued)

Basis of consolidation (continued)

The financial statements of all the Group companies are prepared using uniform accounting policies. All inter-company transactions and balances between Group companies have been eliminated during consolidation.

Business combinations

Acquisitions of businesses are accounted for using the acquisition method. The consideration a husiness combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are generally recognised in profit or loss as incurred.

At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value at the acquisition date, except that:

deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively;
liabilities or equity instruments related to share-based payment arrangements of the acquiree or ● share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2 Share-based Payment at the acquisition date: and
assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer's previously held interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests' proportionate share of the recognised amounts of the acquiree's identifiable net assets. The choice of measurement basis is made on a transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another IFRS.

When the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurements are adjustments that arise from con copyright at againstite "gallering the 'measurement period' (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.

The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates in accordance with IAS 39, or IAS 37 Provisions, Contingent Liabilities and Contingent Assets, as appropriate, with the corresponding gain or loss being recognised in profit or loss.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

2. Significant accounting policies (continued)

Business combinations (continued)

When a business combination is achieved in stages, the Group's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date (i.e. the date when the Group obtains control) and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss where such treatment would be appropriate if that interest were disposed of.

If the initial accounting for a business combination is incomplete by the reporting period in which the combination occurs, the Group reports provisional amounts for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognised at that date.

Revenue recognition

Revenue comprises the invoiced amount for the sale of products net of Value Added Tax, rebates and discounts. Revenues earned by the Group are recognised on the following bases:

Sale of products

Sales of products are recognised when significant risks and rewards of ownership of the products have been transferred to the customer, which is usually when the Group has sold or delivered the products to the customer, the customer has accepted the products and collectability of the related receivable is reasonably assured.

Rendering of services

Sales of services are recognised in the accounting period in which the services are rendered by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided.

Income from investments in securities

Dividend from investments in securities is recognised when the right to receive payment is established. Withheld taxes are transferred to profit or loss. Interest from investments in securities is recognised on an accruals basis.

Profits or losses from the sale of investments in securities represent the difference between the net proceeds and the carrying amount of the investments sold and is transferred to profit or loss.

The difference between the fair value of investments at fair value through profit or loss as at 31 December 2018 and the mid cost price represents unrealised gains and losses and is included in profit or loss in the period in which it arises. Unrealised gains and losses arising from changes in the fair value of available-for-sale financial assets are recognised in equity. When available-for-sale financial assets are sold or impaired, the accumulated fair value adjustments are included in profit or loss as fair value gains or losses on investments, taking into account any amounts charged or credited to profit or loss in previous periods.

Commission income

Commission income is recognised when the right to receive payment is established.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

2. Significant accounting policies (continued)

Revenue recognition (continued)

Interest income

Interest income is recognised on a time-proportion basis using the effective interest method.

Employee benefits

The Group and its employees contribute to the Government Social Insurance Fund based on employees' salaries. The Group's contributions are expensed as incurred and are included in staff costs. The Group 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.

Finance costs

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

Foreign currency translation

(1) Functional and presentation currency

Items included in the Group'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 (€), which is the Group's functional and presentation currency.

(2) Transactions and balances

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

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:

	0/0
Buildings	ಗ
Motor vehicles	20
Furniture, fixtures and office equipment	10
Computer Hardware	20
Computer Software	33,33

No depreciation is provided on land.

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

2. Significant accounting policies (continued)

Property, plant and equipment (continued)

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 Group. 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

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 intanqible 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 year 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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

2. Significant accounting policies (continued)

Computer software

Costs that are directly associated with identifiable and unique computer software products controlled by the Group 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 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 on 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.

Impairment of non-financial assets

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to depreciation 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.

Financial instruments

Financial assets and financial liabilities are recognised in the Group's consolidated statement of financial position when the Group becomes a party to the contractual provisions of the instrument.

Trade receivables

Trade receivables are measured at initial recognition at fair value and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in profit or loss when there is objective evidence that the asset is impaired. The allowance recognised is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition.

Cash and cash equivalents

For the purpose of the consolidated cash flow statement, cash and cash equivalents comprise cash at bank and in hand.

Borrowings

Borrowings are recorded initially at the proceeds received, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the effective interest method.

Trade payables

Trade payables are initially measured at fair value and are subsequently measured at amortised cost, using the effective interest rate method.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

2. Significant accounting policies (continued)

Derecognition of financial assets and liabilities

Financial assets

A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised when:

the rights to receive cash flows from the asset have expired;
the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a 'pass through' arrangement; or
the Group has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Financial liabilities

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

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.

Offsetting financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the consolidated 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 liability simultaneously. This is not generally the case with master netting agreements, and liabilities are presented gross in the consolidated statement of financial position.

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.

3. Financial risk management

Financial risk factors

The Group is exposed to interest rate risk, liquidity risk, currency risk and capital risk management arising from the financial instruments it holds. The risk management policies employed by the Group to manage these risks are discussed below:

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

3. Financial risk management (continued)

3.2 Credit risk

Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the reporting date. The Group has no significant concentration of credit cash interior in than about on have that sales of products and services are made to customers with an appropriate credit history and monitors on a continuous basis the ageing profile of its receivables.

3.3 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 Group has procedures with the object por minimising such as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities.

3.4 Currency risk

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 races barrency hist is not the Group's measurement currency. The Group is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the US Dollar and the Euro. The Group's management monitors the exchange rate fluctuations on a continuous basis and acts accordingly,

3.5 Capital risk management

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

The Group 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 Group's overall strategy remains unchanged from last year.

4. Critical accounting estimates and judgments

The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates and requires Management to exercise its judgment in the process of applying the Group's accounting oolicies. It also requires the use of assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on Management's best knowledge of current events and actions, actual results may ultimately differ from those estimates.

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.

Judgments

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:

Provision for bad and doubtful debts

The Group reviews its trade and other receivables for evidence of their recoverability. Such evidence includes the customer's payment record and the customer's overall financial position. If indications of irrecoverability exist, the recoverable amount is estimated and a respective provision for bad and doubtful debts is made. The amount of the provision is charged through profit or loss. The review of credit risk is continuous and the methodology and assumptions used for estimating the provision are reviewed regularly and adjusted accordingly.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

4. Critical accounting estimates and judgments (continued)

Tncome taxes

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 Group 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.

Fair value of financial assets .

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Group 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 available for sale has been estimated based on the fair value of these individual assets.

. Impairment of non-financial assets

The impairment test is performed using the discounted cash flows expected 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 Group estimates the recoverable amount of the cash generating unit in which the asset belongs to.

Impairment of intangible asset

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 Group estimates the recoverable amount of the cash generating unit in which the asset belongs to.

5. Revenue

2018 €	2017 ਵ
588,692 22,285	747,622 6,720
610,977	754,342

2018 €	2017 ਵ
276,894	377,970
276,894	377.970

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

7. Other operating income

	2018	2017
	ਵ	ਵ
Interest income	10,332	185
Exchange profit	1,765	5,995
Commissions received		131
Discounts received	3,153	215
Profit from op.activities - non-taxable income	832	379
Profit from sale of financial assets at fair value through profit or loss		18,292
Fair value gains on financial assets at fair value through profit or loss Excess of Group's interest in the net fair value of the subsidiaries' assets and	8,889	1,200
liabilities over cost on acquisition		45,032
Sundry operating income	7,016	3,831
	31,987	75,260
Interest income is analysed as follows:
	2018	2017
	ਵ	ਵ
Bank deposits	10,332	185
	10,332	185
8. Selling and distribution expenses
	2018	2017
	€	ਵ
Motor vehicle running costs	1,128
Inland travelling	9,095	15,367
	10.223	15.367

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

9. Administration expenses

	2018	2017
	€	ਵ
Staff costs	119,933	128,574
Rent		7,380
Common expenses	720	500
Sewage expenses	72
Licenses and taxes	413	641
Municipality taxes	206	1,175
Annual levy	700	1,400
Electricity	2,792	2,678
Water supply and cleaning	224	171
Insurance	2,610	2,025
Repairs and maintenance		1,755
Sundry expenses	43,789	29,470
Telephone and postage	5,108	5,015
Stationery and printing	80	393
Subscriptions and contributions	41,066	36,002
Staff training	1,293	1,724
Sundry staff costs	523	270
Computer supplies and maintenance	2,815	2,730
Certification and legalisation expenses	375	179
Auditors' remuneration - current year	13,068	7,495
Auditors' remuneration - prior years		285
Accounting fees	2,719	2,400
Other professional fees	39,890	1,450
Fines	54	314
Inland travelling and accommodation	10,823	10,802
Irrecoverable VAT		11,242
Entertaining	26,546	21,100
Motor vehicle running costs	401	1,309
Carriage and clearing		1,733
Other Expenses	30,911	3
Amortisation of computer software	3,643	1,093
Depreciation	25,393	19,721
	376,167	311,029

10. Other expenses

	2018	2017
	ਡ	e
Loss on disposal of property, plant and equipment	4,620
Loss from op.activities - tax allowable expense	735	187
Loss from sales of financial assets at fair value through profit or loss		1.076
Fair value losses on financial assets at fair value through profit or loss	13,136	12.115
	18-491	13.378

11. Staff costs

	2018 e	2017 ਵ
Salaries Social security costs Social cohesion fund	107,822 10,005 2,106	115,362 10,929 2,283
	119.933	128.574

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

12. Finance costs

	2018	2017
	ર્જ	€
Net foreign exchange losses	3,540	2,338
Interest expense	59	ਰੇਤੋ
Sundry finance expenses	6,757	6,109
Finance costs	10.356	8.540

13. Tax

	2018	2017
	ਵ	に
Corporation tax	1,045
Defence contribution	3,910
Charge for the year	4,955

The tax on the Group's results before tax differs from theoretical amount that would arise using the applicable tax rates as follows:

	2018 ਵ	2017 는
(Loss)/profit before tax	(49,167)	98.297
Tax calculated at the applicable tax rates	(6,146)	12,287
Tax effect of expenses not deductible for tax purposes		5,376
Tax effect of allowances and income not subject to tax	6,091	(12,207)
Tax effect of tax losses brought forward		(5,456)
Tax effect of tax loss for the year	1,100
Defence contribution current year	3,910
Tax charge	4,955

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 to 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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

14. Property, plant and equipment

	Land and buildings	Motor	Furniture, vehicles fixtures and office equipment	Total
	€	€	8	€
Cost
Balance at 1 January 2017		51,618	21,821	73,439
Acquisitions through business combinations Additions	178,500	7,000	10,332	178,500 17,332
Balance at 31 December 2017	178,500	58,618		32,153_269,271

Balance at 31 December 2017/ 1 January 2018	178,500	58,618	32,153	269,271
Additions			2,635	2,635
Disposals		(15,600)		(15,600)
Balance at 31 December 2018	178,500	43,018	34,788	256,306
Depreciation
Balance at 1 January 2017		14,461	11,485	25,946
Charge for the year	5,355	11,723	2,644	19,722
Balance at 31 December 2017	5,355	26,184	14,129	45,668

Balance at 31 December 2017/ 1 January 2018	5,355 5,355	26,184	14,129 4,880	45,668 25,393
Charge for the year On disposals		15,158 (8,980)		(8,980)
Balance at 31 December 2018	10,710	32,362	19,009	62,081
Net book amount
Balance at 31 December 2018	167,790	10,656		15,779 194,225
Balance at 31 December 2017	173,145	32,434		18,024_223,603

In the consolidated cash flow statement, proceeds from sale of property, plant and equipment comprise:

	2018	2017

Net book amount	6,620
(Loss) from the sale of property, plant and equipment (Note 10)	(4,620)
Proceeds from disposal of property, plant and equipment	2.000

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

15. Intangible assets

	Computer software ਵ	Total ਵ
Cost
Balance at 1 January 2017 Additions	11,609 1,982	11,609 1,982
Balance at 31 December 2017	13,591	13,591
Balance at 31 December 2017/ 1 January 2018	13,591	13,591
Balance at 31 December 2018	13,591	13,591
Amortisation
Balance at 1 January 2017 Amortisation for the year	8,194 1,093	8,194 1,093
Balance at 31 December 2017	9,287	9,287
Balance at 31 December 2017 / 1 January 2018 Amortisation for the year	9,287 3,643	9,287 3,643
Balance at 31 December 2018	12,930	12,930
Net book amount
Balance at 31 December 2018	રિયા	661
Balance at 31 December 2017	4,304	4,304
16. Trade and other receivables
	2018	2017
	ર 1,446,926	ਵ 1,712,214
Trade receivables Shareholders' current accounts - debit balances (Note 25.2)	389	343
Deposits and prepayments	1,415
Other receivables	39,595	6,248
Refundable VAT	15,324	6,372

The Group does not hold any collateral over the trading balances.

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

1,503,649 ____________________________________________________________________________________________________________________________________________________________________

The exposure of the Group to credit risk and impairment losses in relation to trade and other receivables is reported in note 3 of the consolidated financial statements.

17. Financial assets at fair value through profit or loss

	2018	2017
	a	e
Balance at 1 January	22,566
Additions	61,236	33,481
Change in fair value	(4,247)	(10,915)
Balance at 31 December	79,555	77.566

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

17. Financial assets at fair value through profit or loss (continued)

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 consolidated 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 consolidated 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.

18. Investors Compensation Fund

	2018	2017
	3	に
Balance at 1 January	76,632
Additions		76.632
Balance at 31 December	76.632	76.632

19. Cash at bank and in hand

Cash balances are analysed as follows:

	2018	2017
	3
Cash at bank and in hand	46.066	206,646
	46,066	206,646

Non-cash transactions

The principal non-cash transactions during the current and prior year were the acquisition of property, plant and equipment using finance leases.

The exposure of the Group to credit risk and impairment losses in relation to cash and cash equivalents is reported in note 3 of the consolidated financial statements.

20. Share capital

	2018 Number of shares	2018 ਵ	2017 Number of shares	2017 ಲ್ಲಿ
Authorised Ordinary shares of €1 each	1,000,000	1,000,000	1,000,000	000-000
		€		e
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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

21. Borrowings

	2018 €	2017 ਵ
Non-current borrowings Debentures	73,000	129,000
Maturity of non-current borrowings:
	2018 €	2017
Between two and five years	73,000	€ 129,000
22. Trade and other payables
	2018 (1)	2017 €
Trade payables Social insurance and other taxes	1,364,372 3,193	1,614,544 2,073
Accruals Other creditors	6,700 13,411	6,305 17,255
Defence tax on rent payable	338
	1,388,014	1,640,177

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

23. Current tax liabilities

	2018	2017
	ર	ਵ
Corporation tax	1,045
Special contribution for defence	3,100
	4,145

24. Operating Environment of the Group

Following a long and relatively deep economic recession, the Cyprus economy began to record positive growth in 2015 which accelerated during 2016. The restrictive measures and capital controls which were in place since March 2013 were lifted in April 2015 and on the back of the economy's performance and the strong implementation of required measures and reforms, Cyprus exited its economic adjustment programme in March 2016. In recognition of the progress achieved on the fiscal front and the economic recovery, as well as the enactment of the foreclosure and insolvency framework, the international credit rating agencies have proceeded with a number of upgrades of the credit ratings for the Cypriot sovereign, and although the rating continues to be 'non-investment grade', the Cyprus government has regained access to the capital markets. The outlook for the Cyprus economy over the medium term remains positive, however, there are downside risks to the growth projections emanating from the high levels of non performing exposures, uncertainties in the property markets, as well as potential deterioration in the external environment for Cyprus, including continuation of the recession in Russia in conditions of protracted declines in oil prices; weaker than expected growth in the euro area as a result of worsening global economic conditions; slower growth in the UK with a weakening of the pound as a result of uncertainty regarding the result of the Brexit referendum; and political uncertainty in Europe in view of Brexit and the refugee crisis.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2018

24. Operating Environment of the Group (continued)

This operating environment may have a significant impact on the Group's operations and financial position. mis operating cermination may harve a to ensure sustainability of the Group'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 r no Sompany o many o many they could have on the future financial performance, cash flows and financial position of the Group.

On the basis of the evaluation performed, the Group'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 Jability of the Group and the smooth conduct of its operations in the current business and economic environment.

25. Related party transactions

The following transactions were carried out with related parties:

25.1 Directors' remuneration

The remuneration of Directors and other members of key management was as follows:

	2018	2017
	ਵ	ਵ
Directors' remuneration	80,262	84,058
	80,262	84.058
25.2 Shareholders' current accounts - debit balances (Note 16)
	2018	2017
	ਵ	દ
Alexandros Sinos	389	343
	389	343

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

26. Contingent liabilities

The Group had no contingent liabilities as at 31 December 2018.

27 . Commitments

The Group had no capital or other commitments as at 31 December 2018.

28. Events after the reporting period

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

ADDITIONAL INFORMATION TO THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

CONTENTS	PAGE
Detailed income statement	2
Operating expenses	ന
Finance expenses	ব
Computation of wear and tear allowances	5 - 6
Balancing statement of capital allowances	8
Computation of defence contribution	ਰੇ

DETAILED INCOME STATEMENT

31 December 2018

		2018	2017
	Page	€	€
Revenue Commissions receivable Sales of goods Cost of sales		588,692 22,285 (276,894)	747,622 6,720 (377,970)
Gross profit Administration fees Transaction costs		334,083	376,372 (100) (4,921)
Other operating income Interest from overseas Unrealised foreign exchange profit Commissions received Sundry operating income Discounts received Profit from op.activities - non-taxable income Excess of Group's interest in the net fair value of the subsidiaries' assets and liabilities over cost on acquisition		10,332 1,765 7,016 3,153 832	185 5,995 131 3,831 215 379 45,032
Profit from sale of financial assets at fair value through profit or loss Fair value gains on financial assets at fair value through profit or loss		8,889 366,070	18,292 1,200 446,611
Operating expenses Administration expenses Selling and distribution expenses	3 3	(376,167) (10,223) (20,320)	(311,029) (15,367) 120,215
Other operating expenses Loss on disposal of property, plant and equipment Loss from op.activities - tax allowable expense Loss from sales of financial assets at fair value through profit or loss Fair value losses on financial assets at fair value through profit or loss		(4,620) (735) (13,136)	(187) (1,076) (12,115)
Operating (loss)/profit Finance costs	4	(38,811) (10,356)	106,837 (8,540)
Net (loss)/profit for the year before tax		(49,167)	98,297

OPERATING EXPENSES 31 December 2018

	2018 €	2017 ਵ

Administration expenses	80,262	84,058
Directors' remuneration	27,560	31,304
Staff salaries	10,005	10,929
Social insurance	2,106	2,283
Social cohesion fund Rent		7,380
	720	500
Common expenses Sewage expenses	72
Licenses and taxes	413	641
Municipality taxes	206	1,175
Annual levy	700	1,400
Electricity	2,792	2,678
Water supply and cleaning	224	171
Insurance	2,610	2,025
Repairs and maintenance		1,755
Sundry expenses	43,789	29,470
Telephone and postage	5,108	5,015
Stationery and printing	80	393
Subscriptions and contributions	41,066	36,002
Staff training	1,293	1,724
Sundry staff costs	523	270
Computer supplies and maintenance	2,815	2,730
Certification and legalisation expenses	375	179
Auditors' remuneration - current year	13,068	7,495
Auditors' remuneration - prior years		285
Accounting fees	2,719	2,400
Other professional fees	39,890	11,450
Fines	54	314
Inland travelling and accommodation	10,823	10,802
Irrecoverable VAT		11,242
Entertaining	26,546	21,100
Motor vehicle running costs	401	1,309
Carriage and clearing	30,911	1,733 3
Other Expenses	3,643	1,093
Amortisation of computer software	25,393	19,721
Depreciation	376,167	311,029

	2018	2017
	ਵ	ਵ
Selling and distribution expenses
Motor vehicle running costs	1,128
Inland travelling	9,095	15,367
	לרר חוד	15267

FINANCE EXPENSES

31 December 2018

	2018 ਵ	2017 €
Finance costs
Interest expense Bank overdraft interest	ਟੈਰੇ	ਰੇਤੋ
Sundry finance expenses Bank charges	6,757	6,109
Net foreign exchange losses Realised foreign exchange loss Unrealised foreign exchange loss	2,247 1,293	987 1,351
	10,356	8.540