Kerverus Holding IT (Cyprus) Plc

Interim / Quarterly Report • Aug 31, 2015

REPORT AND INTERIM UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2015 to 30 Ιουνίου 2015

REPORT AND INTERIM UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2015 to 30 Ιουνίου 2015

CONTENTS PAGE Board of Directors and other Officers 1 Report of the Board of Directors 2 Statement of profit or loss and other comprehensive income 3 Statement of financial position 4 Statement of changes in equity 5 Cash flow statement 6 Notes to the financial statements 7 - 10 Additional information to the Statement of profit or loss and other comprehensive income 11 - 14

BOARD OF DIRECTORS AND OTHER OFFICERS

Board of Directors:	M.Flett Financial Consultants Ltd Christos Kaliptsidis Maria Christodoulou
Company Secretary:	M.Flett Financial Consultants Ltd
Independent Auditors:	L. Gnaftis & Co. Ltd Certified Public Accountants Anexartisias & Athinon Nora Court, 2nd floor 3040 Limassol Cyprus
Registered office:	Anexartisias & Athinon, Nora Court 2nd floor Limassol 3040 Cyprus
Banker:	USB Bank Plc
Registration number:	ΗΕ220984

REPORT OF THE BOARD OF DIRECTORS

The Board of Directors presents its report and audited financial statements of the Company for the period from 1 January 2015 to 30 June 2015.

Principal activity

The principal activity of the Company, which is unchanged from last year, is the development and promotion of innovative computer software and the sale of the rights of using this software through interenet.

Review of current position, future developments and significant risks

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

Results

The Company's results for the period are set out on page 3.

Dividends

The Board of Directors does not recommend the payment of a dividend.

Share capital

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

Board of Directors

The members of the Company's Board of Directors as at 30 June 2015 and at the date of this report are presented on page 1. All of them were members of the Board of Directors throughout the period from 1 January 2015 to 30 June 2015.

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

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

Independent Auditors

The Independent Auditors, L. Gnaftis & Co. 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,

M.Flett Financial Consultants Ltd Secretary

Limassol, 29 August 2015

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Period from 1 January 2015 to 30 June 2015

	Note	30 June2015 €	Unaudited 30 June 2014 €
Revenue Cost of sales	1	41.255 (19.464)	- (12.717)
Gross profit/(loss)		21.791	(12.717)
Other income Selling and distribution expenses Administration expenses	2	5 (2.765) (19.329)	- (2.709) (6.906)
Operating loss		(298)	(22.332)
Finance costs	4	(368)	(48)
Loss before tax		(666)	(22.380)
Tax	5	-	-
Net loss for the period/year		(666)	(22.380)
Other comprehensive income		-	-
Total comprehensive income for the period/year		(666)	(22.380)

STATEMENT OF FINANCIAL POSITION Period from 1 January 2015 to 30 Ιουνίου 2015

ASSETS	Note	30 June 2015 €	Audited 31 December 2014 €
Non-current assets Property, plant and equipment	6	3.277	-
		3.277	-
Current assets Inventories Trade and other receivables Directors' current accounts - debit balances Refundable taxes Cash at bank and in hand Total assets	7 8 12 11	720 169.598 785 1.196 66.816 239.115 242.392	- 190.594 685 1.196 55.255 247.730 247.730
EQUITY AND LIABILITIES
Equity Share capital Retained earnings Total equity	9	40.000 22.110 62.110	40.000 22.776 62.776
Current liabilities Trade and other payables Payables to parent	10 12	700 179.582	1.150 183.804
		180.282	184.954
Total equity and liabilities		242.392	247.730

STATEMENT OF CHANGES IN EQUITY Period from 1 January 2015 to 30 June 2015

	Share capital €	Retained earnings €	Total €
Balance at 1 January 2014	40.000	6.339	46.339
Comprehensive income Net loss for the year	-	16.437	16.437
Balance at 31 December 2014	40.000	22.776	62.776
Balance at 1 January 2015	40.000	22.776	62.776
Comprehensive income Net loss for the period	-	(666)	(666)
Balance at 30 June 2015	40.000	22.110	62.110

CASH FLOW STATEMENT

Period from 1 January 2015 to 30 June 2015

		30 June2015	Unaudited 30 June 2014
	Note	€	€
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax		(666)	(22.380)
		(666)	(22.380)
Changes in working capital:
Increase in inventories		(720)	-
Decrease/(increase) in trade and other receivables		20.996	(3.554)
Increase in directors' current accounts		(100)	(685)
Decrease in trade and other payables		(450)	(500)
Decrease in payables to parent		(4.222)	(20.394)
Cash generated from/(used in) operations		14.838	(47.513)
Tax paid		-	(916)
Net cash generated from/(used in) operating activities		14.838	(48.429)
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for purchase of property, plant and equipment	6	(3.277)	-
Net cash used in investing activities		(3.277)	-
CASH FLOWS FROM FINANCING ACTIVITIES		-	-
Net increase/(decrease) in cash and cash equivalents		11.561	(48.429)
Cash and cash equivalents at beginning of the period/year		55.255	103.684
Cash and cash equivalents at end of the period/year		66.816	55.255

NOTES TO THE FINANCIAL STATEMENTS Period from 1 January 2015 to 30 June 2015

1. Revenue

	30 June2015	Unaudited 30 June 2014
	€	€
Rendering of services	41.255	-
	41.255	-
2. Other income
	30 June2015 €	Unaudited 30 June 2014 €
Discounts received	5 5	- -
3. Expenses by nature
	30 June2015	Unaudited 30 June 2014
Changes in inventories of finished goods and work in progress Other expenses	€ 19.464 22.094	€ 12.717 9.615
Total expenses	41.558	22.332
4. Finance costs
	30 June2015 €	Unaudited 30 June 2014 €
Sundry finance expenses	368	48
	368	48

5. Tax

The corporation tax rate is 12,5%.

Under certain conditions interest income may be subject to defence contribution at the rate of 30%. In such cases this interest will be exempt from corporation tax. In certain cases, dividends received from abroad may be subject to defence contribution at the rate of 20% for the tax years 2012 and 2013 and 17% for 2014 and thereafter.

NOTES TO THE FINANCIAL STATEMENTS Period from 1 January 2015 to 30 June 2015

6. Property, plant and equipment

	Furniture,
	fixtures and office
	equipment
Cost	€
Balance at 30 June 2015	3.277
Net book amount
Balance at 30 June 2015	3.277
Balance at 1 January 2015	-

7. Inventories

		Audited 31 December
	30 June 2015	2014
	€	€
Finished products	720	-
	720	-

The cost of inventories recognised as expense and included in ''cost of sales'' amounted to €19.464 (2014: €12.717).

Inventories are stated at cost.

8. Trade and other receivables

		Audited 31 December
	30 June 2015	2014
	€	€
Trade receivables	167.046	186.652
Deposits and prepayments	542	2.375
Refundable VAT	2.010	1.567
	169.598	190.594

The Company 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.

NOTES TO THE FINANCIAL STATEMENTS Period from 1 January 2015 to 30 June 2015

9. Share capital

	2015 Number of shares	2015 €	2014 Number of shares	2014 €
Authorised Ordinary shares of €1 each	40.000	-	40.000	-
Issued and fully paid Balance at 1 January	40.000	40.000	40.000	40.000
Balance at 30 June/31 December	40.000	40.000	40.000	40.000

10. Trade and other payables

		Audited 31 December
	30 June 2015	2014
	€	€
Accruals	700	1.150
	700	1.150

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

11. Refundable taxes

		Audited 31
		December
	30 June 2015	2014
	€	€
Corporation tax	(1.196)	(1.196)
	(1.196)	(1.196)

12. Related party transactions

The Company is controlled by Kerverus Holding IT (CY) Plc, incorporated in Cyprus, which owns 100% of the Company's shares.

The following transactions were carried out with related parties:

12.1 Payables to related parties

		Audited 31
		December
	30 June 2015	2014
Name	€	€
KERVERUS HOLDING IT (CY) PLC	179.582	183.804
	179.582	183.804

NOTES TO THE FINANCIAL STATEMENTS Period from 1 January 2015 to 30 June 2015

12. Related party transactions (continued)

12.2 Χρεωστικά υπόλοιπα τρεχούμενων λογαριασμών συμβούλων

		Audited 31
		December
	30 June 2015	2014
	€	€
Christos Kaliptsidis	785	685
	785	685

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

13. Contingent liabilities

The Company had no contingent liabilities as at 30 June 2015.

14. Commitments

The Company had no capital or other commitments as at 30 June 2015.

15. 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.

DETAILED INCOME STATEMENT Period from 1 January 2015 to 30 June 2015

	Page	30 June2015 €	Unaudited 30 June 2014 €
Revenue Rendering of services		41.255	-
Cost of sales	12	(19.464)	(12.717)
Gross profit/(loss)		21.791	(12.717)
Other operating income Discounts received		5	-
		21.796	(12.717)
Operating expenses
Administration expenses	13	(19.329)	(6.906)
Selling and distribution expenses	13	(2.765)	(2.709)
Operating loss Finance costs	14	(298) (368)	(22.332) (48)
Net loss for the period/year before tax		(666)	(22.380)

COST OF SALES Period from 1 January 2015 to 30 June 2015

	30 June2015 €	Unaudited 30 June 2014 €
Cost of sales Purchases Packing materials	20.184 -	10.897 1.820
	19.464	12.717

ADMINISTRATIVE EXPENSES Period from 1 January 2015 to 30 June 2015

	30 June2015 €	Unaudited 30 June 2014 €
Administration expenses
Annual levy	350	-
Telephone and postage	647	325
Courier expenses	352	1.868
Stationery and printing	4	-
Subscriptions and contributions	219	113
Newspapers and publications	1.222	3.142
Computer software	2.003	44
Legal fees	2.278	-
Other professional fees	7.724	1.414
Fair expenses	2.950	-
Marketing and promotion costs	1.580	-
	19.329	6.906

30 June2015 €	Unaudited 30 June 2014 €
Selling and distribution expenses
Overseas travelling 2.570	1.629
Advertising 171	1.080
Entertaining 24	-
2.765	2.709

FINANCE COSTS

Period from 1 January 2015 to 30 June 2015

30 June2015	Unaudited 30 June 2014
€	€
Finance costs
Sundry finance expenses
Bank charges 368	48
368	48