Lanitis Golf Public Co Ltd

Quarterly Report • Aug 30, 2016

INTERIM CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

INTERIM CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

CONTENTS

PAGE

Board of Directors and other officers
Explanatory statement	2
Declaration of the members of the Board of Directors and the company officials responsible for the unaudited financial statements	3
Unaudited statement of profit and loss and other comprehensive income	4
Unaudited statement of financial position	5
Unaudited statement of changes in equity	6
Unaudited cash flow statement
Notes to the unaudited financial statements	$8 - 17$

BOARD OF DIRECTORS AND OTHER OFFICERS

Board of Directors:	Platon E. Lanitis (Chairman) Costas E. Lanitis Marios E. Lanitis
Company Secretary:	P & D Secretarial Services Limited
Independent Auditors:	Deloitte Limited Certified Public Accountants and Registered Auditors Maximos Plaza, Tower 1, 3rd Floor 213 Arch. Makariou III Avenue 3030 Limassol
Registered office:	10 Georgiou Gennadiou Street Agathangelos Court 3041, Limassol
Bankers:	Bank of Cyprus Public Company Ltd Eurobank EFG Cyprus Ltd
Registration number:	HE196800

FXPI ANATORY STATEMENT FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

The Board of Directors of Lanitis Golf Public Co Limited (the "Company") presents to the members the explanatory statement and unaudited financial statements of the Company for the period ended 30 June 2016.

Incorporation

The Company Lanitis Golf Public Co. Limited was incorporated in Cyprus on 18 April 2007 as a limited liability company under the Cyprus Companies Law, Cap. 113. On 28 February 2014, the Company was converted from a private limited liability company to a public limited liability company under the Cyprus Companies Law, Cap.113 and is listed on the Emerging Companies Market of the Cyprus Stock Exchange ("CSE").

Principal activities

The principal activities of the Company are the development of a special leisure and residential golf course project. The Company carried out no trading activities, pending the issuance of the building permit. The application of the town planning permit with terms and conditions, was approved on 14 November 2012.

Review of current position, future developments and significant risks

The Company is the owner of land of about 1.600 decares near the villages of Tserkezoi and Asomatos, in Limassol. The land is located next to the shopping center, My Mall Limassol, and the Fasouri Waterpark and is mainly covered by citrus plantations.

The Company aims to develop a fully integrated golf and real estate development project on the site of its existing citrus plantations. One of the main goals of the master plan is to create a contemporary designed, integrated leisure and residential community project that includes luxurious villas and apartments, an 18-hole championship golf course, a golf club, spa and sports center and commercial and retail facilities, such as restaurants and shops.

The Company's development to date, financial results and position as presented in the financial statements are considered salisfactory. The loss attributable to the shareholders for the first six months of 2016, dropped to € 62.121 from €151.489 of the corresponding period in 2015. The Company, at present, has no revenues since the project is under development and there is no other type of revenue. The expenses are mainly operational expenses and relate to the maintenance of the immovable property. The consultancy fees, administration operation fees, financing and other expenses related to the development of the project, are capitalized in the Statement of Financial Position, under Investment Property. As a result of the losses during the period the net assets value of the Company as at 30 June 2016, decreased to €57.092.314 from €61.469.426 which was as at 30 June 2015.

Additional details that relate to the operating environment of the Company are described in note 16 of the financial statements.

On 15 January 2015, the Company obtained the approval from the CSE to trade its shares on the Emerging Companies Market. The trading of the shares commenced on 20 January 2015 and the CSE will undertake the observance of the above Registry in the Central Depositary/ Registry of CSE.

By order of the Board of Directors,

Platon E. Lanitis

Chairman

Limassol, 30 August 2016

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

In accordance with Article 140 (1) of the Laws and Regulations of the Cyprus Stock Exchange we, the members of the Board of Directors and the Company official responsible for the drafting of the interim condensed financial statements of Lanitis Golf Public Co Limited (the "Company") for the period ended 30 June 2016, on the basis of our knowledge, declare that:

(a) The financial statements of the Company which are presented on pages 4 to 17:

(i) Have been prepared in accordance with the applicable International Financial Reporting Standards as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap.113, and

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

b) The Board of Directors' report provides a fair view of the developments and the performance as well as the financial position of Lanitis Golf Public Co Limited, together with a description of the main risks and uncertainties which the Company faces.

Members of the Board of Directors:

Name	Position
Platon E. Lanitis	Director
Costas E. Lanitis	Director
Marios E. Lanitis	Director

Signature

Responsible for drafting the financial statements

Name

Position

Adonis Soteriou

Chief Financial Officer

Limassol, 30 August 2016

UNAUDITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

		Six months period ended 30/06/2016	Six months period ended 30/06/2015
	Note	€	€
Other income Administration expenses	4	70.123 (81.323)	50.021 (122.469)
Operating loss		(11.200)	(72.448)
Finance costs	6	(50.921)	(79.041)
(Loss) for the period		(62.121)	(151.489)
Other comprehensive income
Total comprehensive loss for the period		(62.121)	(151.489)
Loss per share attributable to equity holders of the parent (cent)		(2, 48)	(6,06)

UNAUDITED STATEMENT OF FINANCIAL POSITION

		Unaudited 30/06/2016	Audited 31/12/2015
	Note	€	€
Assets
Non-current assets	8	1.560.381	1.551.478
Property, plant and equipment	9	63.702.743	63.702.743
Investment property	10	127	254
Intangible assets
		65.263.251	65.254.475
Current assets	11	27.980	40.310
Receivables		15,367	22.622
Cash and bank balances
		43.347	62.932
TOTAL ASSETS		65.306.598	65.317.407
EQUITY AND LIABILITIES
Equity and reserves
Share capital	12	4.275.019 19.113.436	4.275.019 19.113.436
Share premium		33.703.859	33.765.980
Retained earnings
Total equity		57.092.314	57.154.435
Non-current liabilities		2.357.638	2.306.637
Borrowings	13 14	5.087.843	5.087.843
Deferred tax liabilities
		7.445.481	7.394.480
Current liabilities
Trade and other payables	15	768.803	768.492
		768,803	768.492
Total liabilities		8.214.284	8.162.972
TOTAL EQUITY AND LIABILITIES		65.306.598	65.317.407

On 30 August 2016 the Board of Directors of Lanitis Golf Public Co Limited authorised these financial statements for

issue. l $............$

Platon E. Lanitis Director

$756/$

Marios-E. Lanitis Director

UNAUDITED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

	Share capital €	Share premium €	Retained earnings €	Total €
Balance at 1 January 2015	4.275.019	19.113.436	38.232.460	61.620.915
Comprehensive income Net loss for the year			(4.466.480)	(4.466.480)
Balance as at 31 December 2015	4.275.019	19.113.436	33.765.980	57.154.435
Balance at 1 January 2015	4.275.019	19.113.436	38.232.460	61.620.915
Net loss for the period ended 30 June 2015			(151.489)	(151.489)
Balance at 30 June 2015	4.275.019	19.113.436	38.080.971	61.469.426
Balance at 1 January 2016	4.275.019	19.113.436	33.765.980	57.154.435
Net loss for the period ended 30 June 2016			(62.121)	(62.121)
Balance at 30 June 2016	4.275.019	19.113.436	33.703.859	57.092.314

UNAUDITED CASH FLOW STATEMENT FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

CASH FLOWS FROM OPERATING ACTIVITIES	Note	Six months period ended 30/06/2016 €	Six months period ended 30/06/2015 €
Loss before income tax Adjustments for:		(62.121)	(151.489)
Depreciation and amortization expense Proceeds from sale of property, plant and equipment Interest expense	8.10 6	391 50.921	391 1.331 79.041
Cash flows used in operations before working capital changes Decrease in receivables Increase in trade and other payables		(10.809) 12.410 311	(70.726) 33.175 70.011
Cash (used in)/generated from operations		1.912	32.460
CASH FLOWS FROM INVESTING ACTIVITIES Payment for purchase of property, plant and equipment	8	(9.167)	(30.817)
Net cash generated from/(used in) investing activities		(9.167)	(30.817)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings from parent Interest paid			78.850 (79.041)
Net cash (used in)/generated from financing activities			(191)
Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the period		(7.255) 22.622	1.452 8.068
Cash and cash equivalents at end of the period		15.367	9.520

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

1. Incorporation and principal activities

Country of incorporation

The Company Lanitis Golf Public Co Limited (the "Company") was incorporated in Cyprus on 18 April 2007 as a limited liability company under the Cyprus Companies Law, Cap, 113. On 28 February 2014, the Company was converted from a private limited liability company to a public limited liability company under the Cyprus Companies Law, Cap.113 and is listed on the Emerging Companies Market of the Cyprus Stock Exchange ("CSE"). Its registered office is at 10 Georgiou Gennadiou Street, Agathangelos Court, 3041, Limassol.

2. Unaudited financial statements

The financial statements for the six months ended on 30 June 2016 and 30 June 2015 respectively, have not been audited by the external auditors of the Company.

Principal activities

The principal activities of the Company are the development of a special leisure and residential golf course project. The Company carried out no trading activities, pending the issuance of the building permit. The application of the town planning permit with terms and conditions, was approved on 14 November 2012.

3. Significant accounting policies

The interim condensed financial statements for the six months ended 30 June 2016 have been prepared in accordance with International Financial Reporting Standards (IFRSs), IAS 34 "Interim Financial Reporting", 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 investment property.

The accounting policies adopted for the preparation of the interim condensed financial statements for the six months ended 30 June 2016 are consistent with those followed for the preparation of the annual financial statements for the year ended 31 December 2015. These interim financial statements do not include all the information and disclosures required for the annual financial statements and should be read in conjunction with the audited financial statements for the year ended 31 December 2015. The interim condensed financial statements are presented in Euro.

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 Company's accounting policies. 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 date of 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.

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

4. Other income	Six months period ended 30/06/2016	Six months period ended 30/06/2015
Income from services rendered to related companies (Note 17.1)	€ 70.123	50.021
	70.123	50.021
5. Staff costs
	Six months period ended 30/06/2016 €	Six months period ended 30/06/2015 €
Wages and salaries Social insurance costs and other funds Social cohesion fund	64.615 3.512 1.292	65.145 3.511 1.292
	69.419	69.948
Average number of employees	1	1
6. Finance costs
	Six months period ended 30/06/2016 €	Six months period ended 30/06/2015 €
Interest expense	50.921	79.041
	50.921	79.041
7. Loss per share attributable to equity holders of the parent
	Six months period ended 30/06/2016	Six months period ended 30/06/2015
Loss attributable to shareholders $(\epsilon)$	(62.121)	(151.489)
Weighted average number of ordinary shares in issue during the period	2.500.011	2.500.011
Loss per share attributable to equity holders of the parent (cent)	(2, 48)	(6,06)

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

8. Property, plant and equipment

or i i oportjej pramt ama ogalpniom.	Plant and machinery €	Furniture, fixtures and office equipment €	Golf Development expenses €	Total €
Cost
Balance at 1 January 2015 Additions	5.276	1.970	1.484.369 62.888	1.491.615 62.888
Disposals		(1.970)		(1.970)
Balance at 31 December 2015	5.276		1.547.257	1.552.533
Balance at 1 January 2016	5.276	٠	1.547.257	1.552.533
Additions			9.167	9.167
Balance at 30 June 2016	5.276	$\blacksquare$	1.556.424	1.561.700
Depreciation Balance at 1 January 2015 Charge for the period On disposals	528 527 $\bar{ }$	639 (639)		1.167 527 (639)
Balance at 31 December 2015	1.055			1.055
Balance at 1 January 2016 Charge for the period	1.055 264			1.055 264
Balance at 30 June 2016	1.319			1.319
Net book amount
Balance at 30 June 2016	3.957		1.556.424	1.560.381
Balance at 31 December 2015	4.221		1.547.257	1.551.478

The golf development expenses represent mainly consultancy, professional and other fees relating to the project referred to in note 9.

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

9. Investment property

	Unaudited 30/06/2016	Audited 31/12/2015 €
Balance at 1 January Loss on property valuation	63.702.743 $\sim$	68.515.631 (4.812.888)
Balance at the end of the period	63.702.743	63.702.743

The land owned by the Company was temporarily categorized as investment property and when the final decision will be taken as to the part of the land to be used for development and the part to be separated in building plots, it will be transferred to the relevant categories according to their use.

The valuation for the fair value of the investment property has taken into consideration the capital commitment of $\epsilon$ 5 million (Note: 22) that must be paid to the Town Planning and Housing Department for the development of the golf resort.

10. Intangible assets

	Computer software €
Cost
Balance at 1 January 2015	3.303
Balance at 31 December 2015	3.303
Balance at 30 June 2016	3.303
Amortisation
Balance at 1 January 2015	2.796
Amortisation for the year	253
Balance at 31 December 2015	3.049
Balance at 1 January 2016	3.049
Amortisation for the period	127
Balance at 30 June 2016	3.176
Net book amount
Balance at 30 June 2016	127
Balance at 31 December 2015	254

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

11. Receivables

	Unaudited	Audited
	30/06/2016	31/12/2015
	€	€
Receivables from related companies (Note 17.2)	10.526	10.526
Deposits and prepayments	1.088	672
Refundable VAT	16.366	29.112
	27.980	40.310

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

12. Share capital

	Unaudited 30/06/2016 Number of shares	Unaudited 30/06/2016 €	Audited 31/12/2015 Number of shares	Audited 31/12/2015 €
Authorised
Ordinary shares of €1,71 each	3.000.000	5.130.000	3.000.000	5.130.000
Issued and fully paid
Balance at 1 January	2.500.011	4.275.019	2.500.011	4.275.019
Balance at the end of the period	2.500.011	4.275.019	2.500.011	4.275.019

13. Borrowings

Unaudited	Audited
30/06/2016	31/12/2015
	€
1.106.790	1.083.466
1.250.848	1.223.171
2.357.638	2.306.637

Maturity of non-current borrowings:

	Unaudited 30/06/2016	Audited 31/12/2015
		€
Within one year	۰
Between one and five years	1.250.848	1.223.171
More than five years	1.106.790	1.083.466

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

13. Borrowings (continued)

On 30 December 2015, the ultimate parent company, Lanitis E.C. Holdings Ltd, together with its subsidiaries, Lanitis Farm Ltd and Lanitis Golf Public Co Ltd, signed an agreement with their key lender to restructure their credit facilities.

The total credit facilities of Lanitis E.C. Holdings Ltd, Lanitis Farm Ltd and Lanitis Golf Public Co Ltd (together the "Obligors") of an amount of €165,8 million are restructured in accordance to two loan agreements. The first loan agreement, the senior term facility, covers credit facilities of an amount of €100 million and the second loan agreement, the subordinated term facility, covers credit facilities of an amount of €65,8 million.

The main source of repayment of both of these loans will be the sale of assets of the Lanitis E.C. Holdings Ltd Group. including real estate assets of the Obligors.

Repayment schedule of senior term facility of €100 million:

• a) Until August 2018 €30 million:
• $b)$ Until December 2020 €40 million;
• Until December 2022 €30 million plus all the interest accrued up to that date. $\mathbf{C}$

Repayment schedule of subordinated term facility of €65,8 million:

• a) Until December 2023 €10 million;
• Until December 2024 €20 million: $b)$
• $C)$ Until December 2025 €36 million. From 31 December 2025, the repayment of the accrued interest will be made through the 50% of the proceeds from the sale of assets of the Obligors and the Group and will have no predetermined repayment date.

The above credit facilities are secured through corporate guarantees, pledges and mortgages of assets and floating charges over the net assets of the Obligors.

The bank loan of the Company is part of the senior term facility referred to above. The management expects to repay the Company's bank loan with the last installments of the senior term facility due until December 2022, since the credit facilities of other obligors are more significant in value for the Lanitis E.C. Holdings Ltd Group.

The weighted average effective interest rates at the reporting date were as follows:

	Unaudited 30/06/2016	Audited 31/12/2015
Bank loans	$3.5\%$	6.75%

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

14. Deferred tax

Deferred tax is calculated in full on all temporary differences under the liability method using the applicable tax rates. The applicable corporation tax rate in the case of tax losses is 12,5%.

The movement on the deferred taxation account is as follows:

Deferred tax liability

	Fair value gains on investments property €
Balance at 1 January 2015 Charged/(credited) to:	5.689.454
Statement of profit or loss and other comprehensive income	(601.611)
Balance at 31 December 2015	5.087.843
Balance at 1 January 2016	5.087.843
Balance at 30 June 2016	5.087.843

15. Trade and other payables

	Unaudited	Audited
	30/06/2016	31/12/2015
	€	€
Social insurance and other taxes	7.199	10.514
Shareholders' current accounts - credit balances (Note 17.5)	142.652	142.652
Other payables	2.179	35.500
Accruals	7.249	11.888
Payables to related companies (Note 17.3)	609.524	567.938
	768.803	768.492

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

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

16. Operating Environment of the Company

During the last years, the Cyprus economy has been adversely affected by the crisis in the Cyprus banking system and the inability of the Republic of Cyprus to secure financing from international markets. As a result, the Republic of Cyprus entered into negotiations with the European Commission, the European Central Bank and the International Monetary Fund (the "Troika"), for financial support of € 10 billion, which resulted into an agreement and the Eurogroup decision of 25 March 2013. The decision included the restructuring of the two largest banks in Cyprus through "bail in", safeguarding deposits below €100.000.

Since March 2013, Troika performed several reviews of the Cyprus' economic program with very positive outcomes which resulted in the disbursement of all scheduled tranches of financial assistance to Cyprus.

Despite the adverse external economic environment in several European and international economies, the Cyprus economy shows signs of stabilization, evident by the upgrade of the credit rating and the future prospects of the Republic of Cyprus by all major international credit rating agencies. This assisted largely the efforts of the Republic of Cyprus to raise significant capital from international financial markets in the past few months. In addition, the Cypriot banks have been recapitalized and have reorganized their operations, leading to the full abolishment of all restrictive measures on deposits and transactions imposed during 2013.

However, the uncertain economic conditions in Cyprus, the unavailability of financing and the high percentage of non performing bank loans in combination with the high unemployment rates, could potentially affect:

• The ability of the Company to obtain new borrowings or refinance its existing borrowings at terms and conditions similar to those applied to earlier transactions
• The ability of the Company to develop its immovable property
• The fair value of the Company's real estate assets
• The cash flow forecasts of the Company's management in relation to the realization of the Company's real estate assets.

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 further provisions or impairment charges are necessary other than those already recognised in the financial statements. 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.

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

17. Related party transactions

The Company is controlled by Lanitis Farm Ltd, incorporated in Cyprus, which owns 99,99% of the Company's shares. The ultimate shareholder of the Company is Lanitis E.C. Holdings Limited.

The following transactions were carried out with related parties:

17.1 Related parties transactions

		Six months period ended 30/06/2016 Income/ (expense)	Six months period ended 30/06/2015 Income/ (expense)
Cybarco Limited Lanitis Farm Limited Lanitis E.C. Holdings Limited	Nature of transactions Management fees Interest expense Administration services	€ 70.123 (27.677)	€ 50.021 (43.239) (30.000)
		42.446	(23.218)
17.2 Receivables from related parties (Note 11)
Name	Nature of transactions	Unaudited 30/06/2016 €	Audited 31/12/2015 €
Cybarco Development Limited Cybarco Limited	Trade Trade	6.041 4.485	6.041 4.485
		10.526	10.526
17.3 Payables to related parties (Note 15)		Unaudited	Audited
Name Lanitis E.C. Holdings Limited	Nature of transactions Financing	30/06/2016 € 609.524	31/12/2015 € 567.938
		609.524	567.938
17.4 Shareholders' loan account (Note 13)
		Unaudited 30/06/2016	Audited 31/12/2015
Lanitis Farm Limited		€ 1.250.848	1.223.171
		1.250.848	1.223.171

The loan from parent company bears interest at the rate of 4% annually (2015 interest rate: 7,5%).

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

17. Related party transactions (continued)

17.5 Shareholders' current accounts - credit balances (Note 15)

	Unaudited	Audited
	30/06/2016	31/12/2015
		€
Lanitis Farm Limited	142.652	142.652
	142.652	142.652

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

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

The percentage of share capital of the Company held directly or indirectly by each member of the Board of Directors, their spouses and their minor children, as at 31/12/2015 and 30/06/2016 were as follows:

		30 June 2016 31 December 2015
		%
Platon E. Lanitis	99.99	99.99

19. Shareholders holding more than 5% of share capital

The shareholders holding more than 5% of the share capital of the Company as at 31/12/2015 and 30/06/2016 were as follows:

		30 June 2016 31 December 2015
		$\frac{9}{6}$
Lanitis Farm Limited	99.99	99.99

20. Significant agreements with management

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

21. Contingent liabilities

As disclosed in note 13, the Company together with its parent company, Lanitis Farm Limited, and its ultimate parent company, Lanitis E.C. Holdings Limited are joint obligors to the credit facilities that these entities hold with a certain bank. As per agreements, these credit facilities are secured through corporate guarantees, pledges and mortgages of assets and floating charges over the net assets of the obligors.

The Company has no further contingent liabilities as at 30 June 2016.

22. Commitments

An amount of €5 million is payable to the Town Planning and Housing Department of the Ministry of Interior in the period of 10 years for the permit to develop the golf resort project for the Company.

In accordance with the resolution taken by the Ministry Cabinet of the Republic on 22 June 2016, the Company has to pay an amount of €1,5 million to the Town Planning and Housing Department by 22 December 2016 relating to the annual installments for the years 2013, 2014 and 2015, as well as €0,5 million by 28 November 2016 for the year 2016. The rest of the installments of €0,5 million each will be paid on annual basis from 2017 and onwards until full payment of the above noted €5 million.

The Company has no further capital or other commitments as at 30 June 2016.

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD FROM 01 JANUARY 2016 TO 30 JUNE 2016

23. Events after the reporting period

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