AB Akola Group

Annual Report • May 16, 2016

CONFIRMED at the meeting of the Board by the protocol No. 10 on 08 April, 2016

"LINAS" AB CONSOLIDATED ANNUAL REPORT FOR THE YEAR 2015

CONFIRMATION BY THE RESPONSIBLE PERSONS

Following Art.21 of the Law on Securities of the Republic of Lithuania and the Regulations for Drawing-up and Submission of the Periodic and the Additional Information issued by the Board of Lithuanian Bank, we, Ramūnas Lenčiauskas, Director of Linas AB, and Daiva Minkeviciene, chief accountant – chief of section of accounting and analysis of Linas AB, hereby confirm that to our best knowledge the annual consolidated financial statements of the Linas AB were drawn following the International Financial Reporting Standards adopted for use in the European Union, and present the fair and accurate status of the assets, liabilities, financial condition and profit or loss and money flows of the Linas AB and the Company Group, and that the review of activities and business development and the condition of the Linas AB and Company Group together with the description of the principle risks and uncertainties it faces has been described correctly.

Director Linas AB Ramūnas Lenčiauskas

Chief accountant – chief of section Daiva Minkeviciene of accounting and analysis of Linas, AB

Summary

1. Accounting period the annual report is covering	4
2. Companies comprising the Company Group and their contact data.	4
3. Principal nature of activity	4
4. Contracts with intermediaries of public trading securities	4
5. Data on trading in securities of the issuer in regulated markets	5
6. Fair review of entity's position, performance and development of the entity's business,
description of the principal risks and uncertainties that it faces	5
7. Analysis of financial and non-financial performance	6
8. References and additional explanatory notes regarding the date provided in the
consolidated financial statements	7
9.Important events after the end of the preceding financial year.	7
10. Operating plans and forecasts of the Company Group	7
11. Information about research and development activities of the Company Group	7
12. Environment control.	7
14. Main features of internal control and risk management systems of Group of companies in
relation with consolidated financial reports preparation.	8
15. Information about branches and representative offices of the Company	8
16. Issuer's structure of authorised capital and encumbrances for transfer/disposal of said
securities.	9
17. Information about the own shares acquired and held by the Company and the Group and
the same acquired and transferred during the reporting period.	9
18. Shareholders	9
19. Employees. 10
20. Procedure for amendment of the Articles of association of the Issuer. 11
21. Management bodies of the Issuer 11
22. Data about the Board members and administration of the Company 14
23. All material agreements to which the Issuer is a party and which would come into effect,
be amended or terminated in case of change in the issuer's control, also their impact except
the cases where the disclosure of the nature of the agreements would cause significant
damage to the Issuer 15
24. All agreements of the Issuer and the members of its management bodies or the employee
agreements providing for a compensation in case of the resignation or in case they are
dismissed without due reason or their employment is terminated in view of the change of
control of the Issuer. 15
25. Information on the significant transactions between related parties 15
26. Information about signed bad contracts (which are not corresponding the goals, present
common market conditions, breaking the interest of shareholders or interest of other persons,
etc.) of the company in the name of inssuer during the accounting period, which had or in
future will have negative influence on the activity of issuer and (or) activity results, also the
information about the contracts which were signed during the conflicts between issuer
managers, controlling shareholders or other related parties obligations for issuer and their
private interest and (or) other obligations 15
27. Information on the compliance with the corporate governance code 15
28. Data about publicly disclosed information 15

1. Accounting period the annual report is covering.

The AB "Linas" consolidated annual report has been prepared for the year 2015.

2. Companies comprising the Company Group and their contact data.

Principal Company data Name AB "Linas" (hereinafter the Company) Authorised (share) capital 6 971 307,10 Eur Domicile address S. Kerbedžio g. 23, LT-35114 Panevėžys Telephone (8-45) 506100 Fax (8-45) 506345 E-mail address office@linas.lt Webpage www.linas.lt Legal-organisational form Public Limited Liability Company Date and place of registration 08-03-1993, Company Register/ City of Panevėžys Company registration number 003429 Date and place of re-registration September 9, 2004, Register of Legal Persons, Registration Certificate No. 003429. Company code 1476 89083 VAT code LT476890811 Principal subsidiary data Name UAB "Lino apdaila" Authorised (share) capital 2 896 Eur Domicile address S. Kerbedžio g. 23, LT-35114 Panevėžys Telephone (8-45) 506111 Fax (8-45) 506346 E-mail address office@linas.lt Legal –organisational form Private Limited Liability Company Date and place of registration May 23, 2008 Register of Legal Persons, Registration Certificate No. 114552 Company code 3017 33421 VAT code LT100004113316

3. Principal nature of activity.

Principal nature of activity is production of textile products and sales.

On December 31, 2015 the Group of companies was comprised of AB "Linas" and its subsidiary company UAB "Lino apdaila". AB "Linas" holds 100% shares of the subsidiary company. The activity of AB "Linas" is sales of linen textile items; other activity of AB "Linas" management of financial asset (shares and granted loans), supply of the thermal energy. The activity of the textile products production is carried out at the subsidiary company UAB "Lino apdaila".

4. Contracts with intermediaries of public trading securities.

On December 4, 2003 AB "Linas" has signed the service contract with the AB SEB Bank (company code 112021238, Gedimino avenue. 12, Vilnius) regarding the management of company's stock accounting.

5. Data on trading in securities of the issuer in regulated markets.

The total of 24 038 990 ordinary registered shares (ISIN code LT0000100661) the total nominal value of which is 6 971 307,10 Eur have been on the Baltic trading secondary list of the Vilnius Securities Exchange (VVPB symbol – LNS1).

6. Fair review of entity's position, performance and development of the entity's business, description of the principal risks and uncertainties that it faces.

Risk factors related to the activities of the issuer:

Credit:

• Customers solvency.

The Group is seeking to control the influence of credit risk insuring the major of its customers at international insurance company, applying safe settlement forms, asking for property guarantees or the sponsorship of third parties.

Economic and political:

• Increase in supply of Asian textile products and dumping.
• Cyclicity of demand for linen products.
• Seasonality: les demand in winter.
• Rise of prices for energy resources.
• Rise of prices for raw materials.
• Passive policy of the Lithuanian state in regard of foreign investment and local exporters.

The Group is developing and improving marketing and production spheres, reacting to customers needs, searching for new markets, assortment possibilities, taking place in the projects which are supplied by Lithuanian Republic or European Union

Technical-technological:

• Quite significant part of the technological equipment are old and wear-tear, requiring huge investment in to their repair and maintenance;
• Lack of modern technological equipment for performance of modern and progressive processing/finishing of fabrics.

The Group is investing into the obtaining of progressive equipment, renewing of old equipment and proper maintenance in order to increase production efficiency and productivity.

During 2015 the AB "Linas" Company Group sold products and services for 12,72 million Eur. Compared to the results of 2014 the incomes of sales increased 0,7 million Eur or by 5,82 %.

Item	Unit	2015	2014
Sales	Thou. Eur	12 722	12 024
Profit before taxes	Thou. Eur	677	-839

The main cause for significant production and sales volumes of the EU textile industry is the import of textile products from developing Eastern Asia countries, which especially has been growing following full liberalisation of trade in textile products and lifting all quantitative

restrictions on import of textile products. Large influence had also general and constant price increase for raw materials (linen and cotton).

According to the notice of UAB "Verslo dizainas" regarding the unilateral equipment rent termination, on August 28, 2015 the Board of AB "Linas" decided partially to reform AB "Linas" group's activity. Since October, 2015 fabrics production (yarns dyeing, weaving and finishing services) are not executed in AB "Linas" Group of companies. All necessary fabrics are obtained from outside suppliers. Since October, 2015 textile items sewing service is still developed in UAB "Lino apdaila".

The reconstruction of structure of Group of companies and the flexibility allowed the Group to keep current customers and to attract the new ones during year 2015. Further the Group orients to high value added production acc. to the individual orders of the customers, does sewing services.

Indicators	Group	Group
	2015	2014
Net profitability (net profit/sales * 100)	4,35	-8,41
Return on equity ROE (net [profit/equity)	0,08	-0,16
Debt ratio (liabilities/assets)	0,20	0,23
Turnability of assets (sales/assets)	1,51	1,51
Book value of shares (equity/number of shares)	0,28	0,25
Indicators	Group	Group
	2015	2014
Net profit (loss) (thou. Eur)	553	-1 011
EBITDA (mln. Eur)	0,88	-0,64
Profit per share	0,02	-0,04
Lowest share price (Eur)	0,061	0,079
Highest share price (Eur)	0,119	0,123
Closing price (Eur)	0,077	0,111
Capitalisation (mln. Eur)	1,85	2,67

7. Analysis of financial and non-financial performance.

There were produced in subsidiary companies:

		2015	2014	Change ( -/+
Product description	Unit	UAB "Lino apdaila"	UAB "Lino apdaila"	decrease/increase)
Yarn	t	55	62	-6
Raw fabrics	thou. m	547	745	-198
Finished fabrics	thou. m	1445	1981	-536

UAB "Lino apdaila" produced less production during year 2015 than during year 2014 because since October, 2015 the activities of yarns dyeing, weaving and finishing were not executed.

The range pf the pure linen fabrics accounted for 70,1 % of the total products produced in 2015 (in 2014 – 68,5 %). In 2015 38,7 % of the total fabrics produced were used for sewing articles (in 2014 – 38,8 %).

In 2015 the Company Group had 677 thou. Eur profit before taxes, and taking into account the taxes the net profit of the Group was 553 thou. Eur. On 2014 the net loss of the Group was 1,01 mln. Eur.

Export (out of Lithuania borders) volumes during year 2015 made 87,7 % of all sold production. Geographically the export distribution is as follows: Spain – 18,4 %, Sweden –15,9 %, Finland – 9,5 %, Belgium – 6,5 %, Japan – 5,6 %, France – 5,3 %, Great Britain – 5,1 %, USA – 4,7 %, other countries – 16,7 %. The products were sold in Germany, Latvia, Estonia, Denmark, Holland, Italy, Iceland, Poland, Hong Kong, Austria, Norway, Australia, South Korea, Canada,

Russia, Portugal and other countries. 12,3 % of all sold production was sold in Lithuania during 2015.

We participated in 5 specialized textile exhibitions: in Germany, in Japan, in Latvia and in France.

During 2015 it was bought 63 tons of cotton yarns from the Lithuanian and Poland suppliers. During 2015 it was purchased 256 tons on linen yarn, 59 % of which was purchased from the Lithuanian suppliers, 26 % from Chinese suppliers and 15 % from Poland, Belgium and Italian suppliers.

1 348 thousand m of raw fabric was bought in 2015, 96 % of it – from Belarus, 4 % - from Lithuanian suppliers.

The largest part of the chemical materials was purchased from Germany and Switzerland.

On 2015-12-31 Group not had debts to the banks. On 2015-12-31 the sum of AB "Linas" granted loans with interests made 1,65mln. Eur.

8. References and additional explanatory notes regarding the date provided in the consolidated financial statements.

The financial statements have been prepared following the International Financial Accounting Standards. The data provided in the annual financial statements and in the explanatory note are sufficient and comprehensive.

9. Important events after the end of the preceding financial year.

The financial report of the Company and Consolidate financial statements were audited by the independent auditing company the UAB "Audito sprendimai" selected via the bidding procedure. The audit was performed by auditor Rita Matulienė (Auditor certificate No.000375).

10. Operating plans and forecasts of the Company Group.

In 2016 the Group of Linas, AB plans to supply linen products to customers which put value upon combination of naturalness and modernity. Companies of the Group will vouch for reliable partnership with customers and suppliers, also will vouch for safe environment to employees as before. The main objectives of the Group are: to increase volume of sales, expanding market in foreign countries and Lithuania, and to decrease cost price of production, optimizing expenses of production and activity costs, buying cheaper raw materials.

It is planned to give about 0,2 mln Eur for the obtaining of technological equipment and renovations during year 2016.

11. Information about research and development activities of the Company Group.

The Company Group was not carrying out activities related to research and development.

12. Environment control.

The items, which are produced by AB "Linas" Group of companies, are ecological, nonwaste product which is not making harmful effect for nature and ecologic. The Group is working acc.to internationally acknowledged quality requirements corresponding to OEKO-TEX 100 standard.

AB "Linas" Group of companies execute its activity acc.to TIPK (integrated prevention and control of pollution) license No.2 – 1/002, corrected on 2013-02-15. The GPGB requirements (the best available production methods) are applied in the Group. The Group constantly observe its indicators, executing water taking, sewage and air pollution monitoring, planning and implementing investments, which allow to decrease production and activity expenses and energetic costs and improve environmental control of the Group.

Pollution characteristic of year 2015:
1.Wastes (including composite communal)	121,61 tons
2.Outflow (production)	194 thousand m3

Expenses for environment control during year 2015:

1.Taxes for atmosphere pollution (mobile resources)	-	104 Eur
2.Tax for outflow (production)		-166 007 Eur
(for production outflow passing to AB "Aukštaitijos vandenys")
3.Taxes for natural resources	-	4 308 Eur

All secondary wastes which form in the company – glass, metal, packages of paper and carton, plastic packages and others – are being sorted and passed to the waste administering companies acc.to the signed contracts.

The possibility to limit company's activity or to stop it regarding the influence on the surrounding is very small.

13. Information about financial risk management objectives, its measures for hedging major types of forecasted transactions for which hedge accounting is used, and the Company Group's exposure to the cope of price risk, credit risk, liquidity risk and cash flow risk where the Company Group uses financial instruments and where this is of importance for the evaluation of the Group's assets, equity capital, liabilities, financial position and performance results.

The Company Group was not using the financial instruments which are of importance for the evaluation of the Group's assets, equity capital, financial position and performance results.

14. Main features of internal control and risk management systems of Group of companies in relation with consolidated financial reports preparation.

The audit committee is supervising the preparation of consolidated financial reports, management systems of internal control and financial risk, observation law regulations which regulate preparation of consolidated financial reports.

The application of internal control measures of the Group are indicated by separate orders of the manager, other internal documents. The managers of the Group, through the long job experience, know very well the specific of the activity and risk fields. The shareholder of AB" Linas" participates in the management of the company in 2015. All this allows to implement sufficient level internal control system in the company.

Financial reports of the Group are prepared acc.to International financial accountability standards (TFAS) confirmed by EU. The same internal control organization and accounting principles are applied for all companies of the Group. When preparing these consolidated financial reports, all inter operation between the Group and balance remainders of the accounts and unrealized profit (losses) from the contracts between the Group of companies are being eliminated.

Responsible accounting employees constantly checking International financial accounting standards (TFAS), analyzing contracts which are significant for the activity of the company and the Group, ensuring timely and correct processing of collected information and its preparation for financial accountability.

15. Information about branches and representative offices of the Company.

The AB "Linas" does not have any branches or representative offices.

16. Issuer's structure of authorised capital and encumbrances for transfer/disposal of said securities.

The authorised capital registered in the company register of the Republic of Lithuania is equal to 6 971 307,10 Eur.

The structure of the authorised capital of the AB "Linas" according to types of shares is as below:

Type of shares	Number of shares	Nominal value (Eur)	Total nominal value	Percentage in the authorised capital
Ordinary registered shares	24 038 990	0,29	6 971 307,10	100,00
Total:	24 038 990	-	6 971 307,10	100,00

All shares of the AB "Linas" have been paid in full and they are not subject to any encumbrances for transfer/disposal of said securities.

The shares of the Company present the same property and non-property rights and liabilities according to the indications of Joint Stock Company's law.

17. Information about the own shares acquired and held by the Company and the Group and the same acquired and transferred during the reporting period.

The Company has not acquired any of its own shares. The subsidiary has also not acquired any of the Company's shares. Neither the Company nor its subsidiary has bought or sold its own shares.

18. Shareholders.

The total number of shareholder of the AB "Linas" as for December 31, 2015 was 943. The shareholders holding or in command of more than 5 per cent of the authorised capital of the Company as for December 31, 2015 were:

Shareholder's name, surname, company's name, type, domicile address, code in the Register of Enterprises)	Number of ordinary registered shares held on property ownership right (pcs.)	Percentage of authorised capital held	Percentage of votes granted by the shares held on property ownership right	Percentage of votes held together with the persons acting together
Roocero Associated Limited, 35 Barrack Road, Belize City, Belize, code in the Register of Enterprises 106446	5 406 533	22,49%	22,49%	22,49%
Danelika Services Limited, 3 Michael Koutsofta street, Limassol, Cyprus, code in the Register of Enterprises HE289213	4 156 585	17,29%	17,29%	17,29%
Association "EEEE", Savanoriu pr. 192, Kaunas, code in the Register of Enterprises 302572729	2 831 699	11,78%	11,78%	11,78%
Emilis Lenciauskas	2 796 880	11,63%	11,63%	11,63%
"Rivena", UAB, P.Zadeikos g. 13- 35, Vilnius, code in the Register of Enterprises 302521510	2 423 030	10,08%	10,08%	10,08%

None of the shareholders of the Company have any special control rights. All shareholders have equal rights, so the number of shares of the AB "Linas" carrying votes at the general meeting of shareholders is 24 038 990.

The Company has not been notified any agreements between the shareholders due to which the transfer of securities and/or voting rights could be encumbered.

19. Employees.

The average listed number of employees in AB "Linas" Group of companies was 284 employees on year 2015. On 2014 this average was 317. During the year the average number of employees decreased by 33 or 10,41%. The decrease of employees number was influenced by partially reform of AB "Linas" Group of companies activities. Work places of weaving and finishing production employees were sustained and transferred with all the guarantees to UAB "Lino dizainas".

Employees	2015		2014
	Average	Average	Average	Average
	conditional	salary/wage,	conditional	salary/wage,
	number of	Eur	number of	Eur
	employees		employees
Management	14	1873,7	14	1506,6
personnel
Specialists and	45	702,5	42	701,2
clerks
Workers	190	466,6	239	437,6
Total	249	588,3	295	525,9

The wages to the employees of the Group were paid observing the confirmed labour payment regulations, the Law on labour safety and health and other laws of the Republic of Lithuanian and decisions by the Government. Average calculated wage in 2015 was 588,3 Eur and compared to 2014 increased by 11,86 % (in 2014 – 525,9 Eur).

AB "Linas" Group of companies employees acc.to the education on 2015-12-31:

Employees education	Number of employees
Higher education	41
Further education	39
Special secondary education	65
Secondary education	25
Totally:	170

The Collective Agreement in AB "Linas" Group of companies indicates:

1.One-off irretrievable pay is paid:

-when employee of the company dies and the family of employee grows children (adoptee) till 18 years old, also the oldest if they are studying at secondary schools at day shift, at professional or higher schools at day shift (including the period of academic holidays), but no longer till 24 – 6 base social pays;

-when spouse of company's employee dies and the family of employee grows children (adoptee) till 18 years old, also the oldest if they are studying at secondary schools at day

shift, at professional or higher schools at day shift (including the period of academic holidays), but no longer till 24 – 6 base social pays.

2.Additional paid holidays: up to 3 calendar days in case of death of a family member (parents, husband, wife, child, brother, sister);

-1 calendar day for the marriage.

1. The employees who must undergo compulsory medical examination shall be paid average wage for the time spent for such medical check-up. The employer shall also cover all the costs related to such medical checkups.

20. Procedure for amendment of the Articles of association of the Issuer.

The Law on Companies of the Republic of Lithuania provides that the right to amend the Articles of Association shall be vested exclusively in the general meeting of shareholders. Adoption of amendment of the Articles of Association requires 2/3 majority vote of the shareholders attending the meeting.

21. Management bodies of the Issuer

As determined by the Articles of Association of the AB "Linas" the management bodies of the Company are:

• General meeting of shareholders;
• The Board of the AB "Linas";
• Head (Director) of the AB "Linas".

The Supervisory Council shall not be formed.

General meeting of the shareholders is the highest body of the company.

Only General meeting of the shareholders has the right to:

-change the regulations of the company, except the exceptions indicated by Joint Stock Company's law of Lithuanian Republic;

-to elect and to cancel members of the Board, audit company;

-to indicate payment conditions for audit services;

-to confirm annual financial accountability;

-to take the decision to increase the authorized capital;

-to indicate the shares class, number and nominal value of issued company's shares and the minimal price of the emission;

-to take the decision to cancel the priority right to all shareholders to obtain company's shares of concrete emission or convertible bonds;

-to take the decision to decrease authorized capital, except the exceptions indicated in Joint Stock Company's law of Lithuanian Republic;

-to take the decision to issue convertible bonds;

-to take the decision to convert company's one class shares into the other class, to confirm the order of shares convert;

-to take the decision to obtain own shares for the Company;

-to take the decision to liquidate the company, to cancel the liquidation of the company, except the cases indicated in Joint Stock Company's law of Lithuanian Republic;

-to elect and to cancel company's liquidator, except the cases indicated in Joint Stock Company's law of Lithuanian Republic;

-to take the decision regarding company's reorganization or separation and to confirm the conditions of reorganization or separation;

-to take the decision to reorganize the company;

-to take the decision to shake-up the company;

-to take the decision regarding the allotment of profit (loss);

-to take the decision regarding the reserves making, using, decreasing or cancelling.

General Meeting of shareholders can also solve other questions, which are not attributed to the competence of other company's bodies according to Joint Stock Company's law of Lithuanian Republic, and if they are not the function of other managing bodies.

The call order of General meeting of shareholders of the company doesn't differ from the order indicated in Joint Stock Company's law of Lithuanian Republic.

The Board is the collegial management body of the company. The Board is elected by General Meeting of shareholders according to the order indicated in Joint Stock Company's law of Lithuanian Republic. If single members of the Board are elected, so they are elected only up to the end of existing Board cadence. The Board consists of 4 members for 4 years. The chief of the Board is elected by the Board from its members. The working order of the Board is indicated in the accepted work regulation of the Board.

The Board executes its functions during the period indicated in the regulations or up to time when the new Board will be elected and will start the job, but not longer General Meeting of shareholders which is held at the end of the Board's cadence.

General Meeting of shareholders can cancel all the Board or its single members if there cadence is still not over. The member of Board can resign from his post even if the cadence is still not over and to inform the company in written not later 14 days.

The competence of the Company's Board the procedure of it election and dismissal are not different from the same provided for in the Law on Companies of the Republic of Lithuania.

The Board shall consider and confirm:

• Activity strategy of the Company;
• Activity report of the Company;
• Organisation/management structure of the Company and list of positions;
• List of positions to which the employees are admitted following selection procedure;
• Regulations of branches and representative offices of the Company.

The Board shall elect the head of the Company and fix his salary, other terms and conditions of the employment contract with him, confirm his job description, apply motivation and disciplinary measures.

The Board shall decide on the information to be treated as commercial (production) secret of the Company.

The Board shall adopt:

• Decisions on becoming the founder or member of other legal persons;
• Decisions on establishing branches and representative offices of the Company;
• Decisions regarding the buying of long-term asset, investment, transfer, lease, mortgage and hypotec;
• Decisions regarding the sponsion or guarantee of liabilities execution of other ;
• Decisions regarding the support providing;
• Decision to reorganise the Company in cases provided for in Law on Reorganisation of Companies;
• Other decisions attributed to the competence of the Board by the Articles of Association or by resolutions of the General meeting of shareholders;

Before investing the funds or other assets into other legal persons the Board must notify the creditors with who the Company has not settled accounts in the event the total outstanding amount to such creditors is exceeding 1/20 of the authorised capital of the Company.

The Board shall analyse and assess the materials presented by the head of the Company concerning:

• Implementation of the strategy of Company's activities;
• Organisation of company's activities;
• Financial condition of the Company;
• Results of business activities, budgets for income and expenses, data of stocktaking and other changes related to assets of the Company;
• The draft annual financial statements of the Company and the draft profit (loss) appropriation statement and present them to the General meeting of shareholders.

The competence of company's director, the order of his election or cancelation is not differ from the order indicated in Joint Stock Company's law of Lithuanian Republic.

Director of the company:

-organizes daily activity of the company, hires or fires employees, makes and terminates job contracts with them, motivates employees or signs penalties for them;

-indicates calculation normative of property deterioration of the company;

-acts in the name of the company and has the right to sign contracts autocratically;

-has to secure company's commercial (production) secrets which he knew being at this post; -presents the questions to discuss to the Board of the company and to General Meeting of

shareholders; -represents the company at the court, in relationships with other juridical and physical persons;

-presents the authorization to other persons to execute ions which are at his competence;

-executes others functions indicated by the laws of Lithuanian Republic and law regulations.

Director of the company is responsible for:

-organization of company's activity and execution of its goals;

-preparation of annual financial accountability;

-signing the contract with audit company;

-presentation of information and documents for General Meeting of shareholders, for the Board, in the cases indicated in Joint Stock Company's law of Lithuanian Republic or according their request;

-presentation of company's documents and data to the manager of juridical persons register;

-presentation of company's documents to the Securities Commission and to Central Security Depository of Lithuania;

-public announcement of information, indicated in Joint Stock Company's law of Lithuanian Republic, in newspaper "Lietuvos rytas";

-presentation of information to shareholders;

-presentation of all necessary documents which are indicated in the contract with audit company for concrete inspection;

-other post execution indicated in Joint Stock Company's law of Lithuanian Republic and other laws and regulations, also in regulations of the company and in job description of company's manager.

According to the decision of General meeting of Shareholders dated May 12, 2009 the Audit committee is formed at AB "Linas". Company's Audit committee consists of two members, one of which should be independent. General Meeting of shareholders elect or cancel members of Audit committee according to the offer of company's Board. The cadence period of audit committee – four years. Continuous cadence period of the member of Audit committee could not be longer than twelve years.

Main functions of Audit committee:

-to present recommendations to company's Board in relation with selection, nomination, repeated nomination and cancellation of external audit company and to present the contract conditions with audit company;

-to watch the execution process of external audit;

-to watch how external auditor keeps to the principles of objectivity and independence;

-to watch the preparation process of company's financial reports;

-to watch the system effectiveness of Company's internal control, risk management and internal audit, if it is working in the company;

-to execute other functions indicated in Lithuanian Republic laws and to keep to provided recommendations of management codex of companies listed at Vilnius NASDAQ OMX.

22. Data about the Board members and administration of the Company.

RAMUNAS LENCIAUSKAS – Chairman of the Board. University education, graduated from the Kaunas Technology University where studied machine engineering, economics and management. Qualifications – engineer-economist. 1995-2005 AB "Linas" manager (president), general director, president, temporary expert of business and finance strategic management, adviser on business and finance strategic management; 2007-2008 AB "Linas" adviser on business and finance strategic management, director. The owner of R. Lenciauskas individual company. From 2014-05-31 up to 2014-12-31- Director of the AB "Linas". Since 2016 01 28 – the manager of administration - Director of the AB "Linas". Does not hold shares of the Company.

SAULIUS SIDLAUSKAS – member of the Board and head of administration of the Company – the Director till 2016-01-27. Higher education, obtained production management bachelor degree at Kaunas University of Technology. Does not hold shares of the Company.

DAIVA MINKEVICIENE – Since 2008-10-13 chief accountant – chief of section of accounting and analysis of the Company. University education, graduated from economics studies in the Vilnius University. Does not hold shares of the Company.

GINTARE DAMBRAUSKAITE-LENCIAUSKE – member of the Board. Higher education, finished management and business administration bachelor studies at Management and economic university (ISM) and master studies of human recourses management at Mykolo Romerio university. The director of UAB "Linas Sventoji". The director of UAB "Salduta". The director of UAB "NI Linasta". The Director of R. Lenciauskas individual company. Since 2013-06-03 – deputy of director of the AB "Linas". Does not hold shares of the Company.

Members of the Board are elected on May 19, 2015 during General meeting of shareholders for four year cadence.

The members of the management bodies of the AB "Linas" have never been convicted for property, business or financial offences.

Information about total amounts and averages per person of the salaries and annual payments from profit paid during the reporting period to the members of the Board and head of administration:

Indicator	Salary for	Payment	Other	Total (Eur)
	2015 (Eur)	from profit for 2015	payments from
		(Eur)	profit
			(Eur)
Average per member of the Board	-	-	-	-
Total for all members of the Board	-	-	-	-
Average per member of administration	33 037	-	-	33 037
Total for all members of administration	99 110	-	-	99 110

Members of Audit committee were elected for four years cadence during General meeting of shareholders on May 16, 2013. Authorizations are granted to the members of Audit committee and their executing functions are according to regulations of Audit committee.

VILMA POLIKEVICIENE – member of Audit committee. Chief accountant of UAB "Oppenhejm & Jansson". Does not hold shares of the Company.

SVETLANA GREKOVA – independent member of Audit committee. Expert of accounting and tax. Does not hold shares of the Company.

23. All material agreements to which the Issuer is a party and which would come into effect, be amended or terminated in case of change in the issuer's control, also their impact except the cases where the disclosure of the nature of the agreements would cause significant damage to the Issuer

None.

24. All agreements of the Issuer and the members of its management bodies or the employee agreements providing for a compensation in case of the resignation or in case they are dismissed without due reason or their employment is terminated in view of the change of control of the Issuer.

None.

25. Information on the significant transactions between related parties.

Information on the transactions between the related parties is provided in section 4.20 of the explanatory notes to the financial statements.

26. Information about signed bad contracts (which are not corresponding the goals, present common market conditions, breaking the interest of shareholders or interest of other persons, etc.) of the company in the name of inssuer during the accounting period, which had or in future will have negative influence on the activity of issuer and (or) activity results, also the information about the contracts which were signed during the conflicts between issuer managers, controlling shareholders or other related parties obligations for issuer and their private interest and (or) other obligations.

None.

27. Information on the compliance with the corporate governance code.

The information regarding compliance with the corporate governance code is presented in Annex 1.

28. Data about publicly disclosed information.

During January – December of year 2015 the Company announced following essential events:

2015-01-09 AB "Linas" General Meeting of Shareholders didn't take place. Repeated General Meeting of Shareholders will be held on January 26, 2015;

2015-01-09 Draft Resolutions of the Repeated Extraordinary General Meeting of Shareholders;

2015-01-26 Resolutions of Repeated Extraordinary General Meeting of Shareholders;

2015-02-05 Notification about disposal and acquisition of a block of shares;

2015-02-27 Preliminary not audited activity results of twelve months of year 2014 of company AB "Linas" and Group of companies. AB "Linas" not audited consolidated interim information of twelve months of year 2015;

2015-03-26 AB "Linas" the Ordinary General Meeting of Shareholders convocation;

2015-04-02 Draft Resolutions of the Annual General Meeting of Shareholders;

2015-04-30 AB "Linas" General Meeting of Shareholders didn't take place. Repeated General Meeting of Shareholders will be held on May 19, 2015;

2015-04-30 Draft Resolutions of the Repeated Annual General Meeting of Shareholders of AB "Linas";

2015-05-19 Resolutions of Repeated Annual General Meeting of Shareholders;

2015-05-29 Activity results of three months of year 2015 of company AB "Linas" and Group of companies. AB "Linas" not audited consolidated interim information of three months of year 2015;

2015-06-16 A new wording of the By- Laws is registered;

2015-07-13 Regarding the decision of Lithuanian high administrative court for AB "Linas" shareholders;

2015-08-28 Activity results of six months of year 2015 of company AB "Linas" and Group of companies. AB "Linas" not audited consolidated interim information of six months of year 2015;

2015-08-28 AB "Linas" Group of companies partial change of activity;

2015-11-30 Activity results of nine months of year 2015 of company AB "Linas" and Group of companies. AB "Linas" not audited consolidated interim information of nine months of year 2015.

All information on material events made public during 2015 is available on the AB "Linas" webpage www.linas.lt.

Director Ramūnas Lenčiauskas

Annex 1 To AB "Linas" annual report of year 2015

Corporate Governance Reporting Form

The public limited liability company "Linas"(hereinafter referred to as the "Company"), acting in compliance with Article 21 (3) of the Law of the Republic of Lithuania on Securities and paragraph 24.5 of the Listing Rules of AB NASDAQ OMX Vilnius, hereby discloses how it complies with the Corporate Governance Code for the listed NASDAQ OMX Vilnius as well as its specific provision or recommendations. In case of non-compliance with this Code or some of its provisions or recommendations the specific provisions or recommendations that are not complied with must be indicated and the reasons for such non-compliance must be specified. In addition, other explanatory information indicated in this form must be provided.

Summary of the Corporate Governance Report:

According to the By-Laws, the governing bodies of the Company are the General Shareholder's Meeting, the Board and CEO. There is no Supervisory Council in the Company. The board represents the shareholders, and performs supervision and control functions. The Board consists of four members elected for the term of four years. Audit committee is formed in the company which is appointed and cancelled by general meeting of shareholders. Audit committee is formed from two members the one of who is independent. The cadence period of Audit committee is four years. The Board elects and recalls CEO of the Company, sets his/her remuneration and other conditions of the employment agreement.

PRINCIPLES/ RECOMMENDATIONS	YES/NO /NOT APPLICABLE	COMMENTARY
Principle I: Basic Provisions
optimizing over time shareholder value.		The overriding objective of a company should be to operate in common interests of all the shareholders by
1.1. A company should adopt and make public the company's development strategy and objectives by clearly declaring how the company intends to meet the interests of its shareholders and optimize shareholder value.	YES	Company presents such kind of information in company's web page www.linas.lt and in the reports of NASDAQ OMX Vilnius.
1.2. All management bodies of a company should act in furtherance of the declared strategic objectives in view of the need to optimize shareholder value.	YES
1.3. A company's supervisory and management bodies should act in close co-operation in order to attain maximum benefit for the company and its shareholders.	YES	The Company bodies (the board and manager of the Company) co-operate when dealing with issues of importance to the activity of the Company. The board and the manager hold joint sessions.
1.4. A company's supervisory and management bodies should ensure that the rights and interests of persons other than the company's shareholders (e.g. employees, creditors, suppliers, clients, local community), participating in or connected with the company's operation, are duly respected.	YES

Principle II: The corporate governance framework

The corporate governance framework should ensure the strategic guidance of the company, the effective oversight of the company's management bodies, an appropriate balance and distribution of functions between the company's bodies, protection of the shareholders' interests.

2.1. Besides obligatory bodies provided for in the Law NO	Supervisory Board is not formed in the company.
on Companies of the Republic of Lithuania – a general	Company's Board is executing functions of supervision
shareholders' meeting and the chief executive officer, it	body in a particular level. The Board of company controls

is recommended that a company should set up both a collegial supervisory body and a collegial management body. The setting up of collegial bodies for supervision and management facilitates clear separation of management and supervisory functions in the company, accountability and control on the part of the chief executive officer, which, in its turn, facilitate a more efficient and transparent management process. 2.2. A collegial management body is responsible for the strategic management of the company and performs other key functions of corporate governance. A collegial supervisory body is responsible for the effective supervision of the company's management bodies.	YES	and supervises how the chief executive officer and management execute the strategy of the company. As the Company has collegial management body, the board, there is no collegial supervision body in the Company.
2.3. Where a company chooses to form only one collegial body, it is recommended that it should be a supervisory body, i.e. the supervisory board. In such a case, the supervisory board is responsible for the effective monitoring of the functions performed by the company's chief executive officer.	NO	Supervisory Board is not formed in the company. Board of company is executing the supervision of prosecuted functions of chief executive of the company.
2.4. The collegial supervisory body to be elected by the general shareholders' meeting should be set up and should act in the manner defined in Principles III and IV. Where a company should decide not to set up a collegial supervisory body but rather a collegial management body, i.e. the board, Principles III and IV should apply to the board as long as that does not contradict the essence and purpose of this body.	YES
2.5. Company's management and supervisory bodies should comprise such number of board (executive directors) and supervisory (non-executive directors) board members that no individual or small group of individuals can dominate decision-making on the part of these bodies.	YES	Company's Board is made of 4 members.
2.6. Non-executive directors or members of the supervisory board should be appointed for specified terms subject to individual re-election, at maximum intervals provided for in the Lithuanian legislation with a view to ensuring necessary development of professional experience and sufficiently frequent reconfirmation of their status. A possibility to remove them should also be stipulated however this procedure should not be easier than the removal procedure for an executive director or a member of the management board.	YES	The board holds office for four years. The statutes of the company set no restriction on re-election of the same individuals to hold office.
2.7. Chairman of the collegial body elected by the general shareholders' meeting may be a person whose current or past office constitutes no obstacle to conduct independent and impartial supervision. Where a company should decide not to set up a supervisory board but rather the board, it is recommended that the chairman of the board and chief executive officer of the company should be a different person. Former company's chief executive officer should not be immediately nominated as the chairman of the collegial body elected by the general shareholders' meeting. When a company chooses to departure from these recommendations, it should furnish information on the measures it has taken to ensure impartiality of the supervision.	YES

Principle III: The order of the formation of a collegial body to be elected by a general shareholders' meeting

The order of the formation a collegial body to be elected by a general shareholders' meeting should ensure representation of minority shareholders, accountability of this body to the shareholders and objective monitoring of the company's operation and its management bodies. 1

3.1. The mechanism of the formation of a collegial body to be elected by a general shareholders' meeting (hereinafter in this Principle referred to as the 'collegial body') should ensure objective and fair monitoring of the company's management bodies as well as representation of minority shareholders.	YES	The Company shall make information on candidates to the board members publicly available; voting mechanism shall be employed to implement those references. Members of collegial body of the Company are remunerated on the funds of the Company.
3.2. Names and surnames of the candidates to become members of a collegial body, information about their education, qualification, professional background, positions taken and potential conflicts of interest should be disclosed early enough before the general shareholders' meeting so that the shareholders would have sufficient time to make an informed voting decision. All factors affecting the candidate's independence, the sample list of which is set out in Recommendation 3.7, should be also disclosed. The collegial body should also be informed on any subsequent changes in the provided information. The collegial body should, on yearly basis, collect data provided in this item on its members and disclose this in the company's annual report.	YES	The information above shall be provided and updated regularly, in the annual and interim reports of the company.
3.3. Should a person be nominated for members of a collegial body, such nomination should be followed by the disclosure of information on candidate's particular competences relevant to his/her service on the collegial body. In order shareholders and investors are able to ascertain whether member's competence is further relevant, the collegial body should, in its annual report, disclose the information on its composition and particular competences of individual members which are relevant to their service on the collegial body.	NO	The Company shall not make any information publicly available, unless the same is provided by the members of collegial body; the information on the composition of collegial body shall be included in the annual and interim reports of the Company.
3.4 In order to maintain a proper balance in terms of the current qualifications possessed by its members, the desired composition of the collegial body shall be determined with regard to the company's structure and activities, and have this periodically evaluated. The collegial body should ensure that it is composed of members who, as a whole, have the required diversity of knowledge, judgment and experience to complete their tasks properly. The members of the audit committee, collectively, should have a recent knowledge and relevant experience in the fields of finance, accounting and/or audit for the stock exchange listed companies. At least one of the members of the remuneration committee should have knowledge of and experience in the field of remuneration policy.	YES
3.5. All new members of the collegial body should be offered a tailored program focused on introducing a member with his/her duties, corporate organization and activities. The collegial body should conduct an annual review to identify fields where its members need to update their skills and knowledge.	YES/NO	Individual program is not foreseen, because it is not required by any laws.
3.6. In order to ensure that all material conflicts of interest related with a member of the collegial body are resolved properly, the collegial body should comprise a sufficient number of independent members.	NO	The Company applies no evaluation on independence of the members of collegial body.

3.7. A member of the collegial body should be considered to be independent only if he is free of any business, family or other relationship with the company, its controlling shareholder or the management of either, that creates a conflict of interest such as to impair his judgment. Since all cases when member of the collegial body is likely to become dependant are impossible to list, moreover, relationships and circumstances associated with the determination of independence may vary amongst companies and the best practices of solving this problem are yet to evolve in the course of time, assessment of independence of a member of the collegial body should be based on the contents of the relationship and circumstances rather than their form. The key criteria for identifying whether a member of the collegial body can be considered to be independent are the following:	NO	The Company does not follow reference given by the management code, as the members of collegial body are related to the key shareholders of the Company.
1) He/she is not an executive director or member of the board (if a collegial body elected by the general shareholders' meeting is the supervisory board) of the company or any associated company and has not been such during the last five years;
2) He/she is not an employee of the company or some any company and has not been such during the last three years, except for cases when a member of the collegial body does not belong to the senior management and was elected to the collegial body as a representative of the employees;
3) He/she is not receiving or has been not receiving significant additional remuneration from the company or associated company other than remuneration for the office in the collegial body. Such additional remuneration includes participation in share options or some other performance based pay systems; it does not include compensation payments for the previous office in the company (provided that such payment is no way related with later position) as per pension plans (inclusive of deferred compensations);
4) He/she is not a controlling shareholder or representative of such shareholder (control as defined in the Council Directive 83/349/EEC Article 1 Part 1);
5) He/she does not have and did not have any material business relations with the company or associated company within the past year directly or as a partner, shareholder, director or superior employee of the subject having such relationship. A subject is considered to have business relations when it is a major supplier or service provider (inclusive of financial, legal, counseling and consulting services), major client or organization receiving significant payments from the company or its group;
6) He/she is not and has not been, during the last three years, partner or employee of the current or former external audit company of the company or associated company;
7) He/she is not an executive director or member of the

board in some other company where executive director

the company should disclose its reasons for considering a particular member of the collegial body to be independent. To ensure accuracy of the information disclosed in relation with the independence of the members of the collegial body, the company should require independent members to have their independence periodically re-confirmed. 3.11. In order to remunerate members of a collegial body for their work and participation in the meetings of the collegial body, they may be remunerated from the company's funds. The general shareholders' meeting	Not applicable	applies no evaluation on independence of the members of collegial body. Company is not remunerates the members of Board.
3.10. When one or more criteria of independence set out in this Code has not been met throughout the year,	NO	The Company's statements indicate the relation of the board members to the Company, although the same
collegial body it considers to be independent.
should annually disclose which members of the
member to be independent. In addition, the company
disclose its reasons for nevertheless considering the
independence set out in this Code, the company should
the collegial body does not meet one or more criteria of
person to be independent. When a particular member of
the company should disclose whether it considers the
nominated to become a member of the collegial body,
be independent should be disclosed. When a person is
particular member of the body should be considered to
body has come to in its determination of whether a		the members of collegial body.
3.9. Necessary information on conclusions the collegial	NO	The Company applies no evaluation on independence of
personal or company-related circumstances.
cannot be considered independent due to special
the criteria of independence laid down in this Code, he
may decide that, despite a particular member meets all
collegial body itself to determine. The collegial body
independence is fundamentally an issue for the	applicable
3.8. The determination of what constitutes	Not
spouse), children and parents.
relative is considered to be a spouse (common-law
or to any person listed in above items 1 to 8. Close
general shareholders' meeting is the supervisory board)
member of the board (if a collegial body elected by the
He/she is not a close relative to an executive director or
8) He/she has not been in the position of a member of the collegial body for over than 12 years;
participation in activities of other companies or bodies;
directors of the company that arise from their
have any other material relationships with executive
member of the supervisory board, he/she may not also
the supervisory board) is non-executive director or
body elected by the general shareholders' meeting is
of the company or member of the board (if a collegial

The corporate governance framework should ensure proper and effective functioning of the collegial body elected by the general shareholders' meeting, and the powers granted to the collegial body should ensure effective monitoring¹ of the company's management bodies and protection of interests of all the company's shareholders.

4.1. The collegial body elected by the general YES	The Board is doing all supervision functions of
shareholders' meeting (hereinafter in this Principle	management body activity which are attributed to the
referred to as the 'collegial body') should ensure	Board of the company.
integrity and transparency of the company's financial
statements and the control system. The collegial body
should issue recommendations to the company's

management bodies and monitor and control the
company's management performance.
4.2. Members of the collegial body should act in good	YES/NO	Members of Board are acting in behalf of company and
faith, with care and responsibility for the benefit and in		shareholders and in behalf of their interest. The
the interests of the company and its shareholders with		independency of members of the Board is not valued.
due regard to the interests of employees and public
welfare. Independent members of the collegial body
should (a) under all circumstances maintain
independence of their analysis, decision-making and
actions (b) do not seek and accept any unjustified
privileges that might compromise their independence,
and (c) clearly express their objections should a
member consider that decision of the collegial body is
against the interests of the company. Should a collegial
body have passed decisions independent member has
serious doubts about, the member should make
adequate conclusions. Should an independent member
resign from his office, he should explain the reasons in
a letter addressed to the collegial body or audit
committee and, if necessary, respective company-not
pertaining body (institution).
4.3. Each member should devote sufficient time and	YES/NO	Members of Board are participating in the meetings and
attention to perform his duties as a member of the		paying a lot of attention to the execution of their
collegial body. Each member of the collegial body		responsibilities. The company is not informing
should limit other professional obligations of his (in		shareholders about the participation of members of Board
particular any directorships held in other companies) in		in the meetings.
such a manner they do not interfere with proper
performance of duties of a member of the collegial
body. In the event a member of the collegial body
should be present in less than a half of the meetings of
the collegial body throughout the financial year of the
company, shareholders of the company should be
notified.
4.4. Where decisions of a collegial body may have a	YES	The member of the board of the Company follow
different effect on the company's shareholders, the		legislative principles governing communication to the
collegial body should treat all shareholders impartially		shareholders and make key information on the activity of
and fairly. It should ensure that shareholders are		the Company available at the Company's website at
properly informed on the company's affairs, strategies,		www.linas.lt, as well as in reports of NASDAQ OMX
risk management and resolution of conflicts of interest.		Vilnius.
The company should have a clearly established role of
members of the collegial body when communicating with and committing to shareholders.
4.5. It is recommended that transactions (except	YES
insignificant ones due to their low value or concluded
when carrying out routine operations in the company
under usual conditions), concluded between the
company and its shareholders, members of the
supervisory or managing bodies or other natural or
legal persons that exert or may exert influence on the
company's management should be subject to approval
of the collegial body. The decision concerning approval
of such transactions should be deemed adopted only
provided the majority of the independent members of
the collegial body voted for such a decision.
4.6. The collegial body should be independent in	YES
passing decisions that are significant for the company's
operations and strategy. Taken separately, the collegial
body should be independent of the company's management bodies. Members of the collegial body
should act and pass decisions without an outside
influence from the persons who have elected it.
Companies should ensure that the collegial body and its
committees are provided with sufficient administrative
and financial resources to discharge their duties,

employees of the company, all the necessary
information or to seek independent legal, accounting or
any other advice on issues pertaining to the competence
of the collegial body and its committees. When using
the services of a consultant with a view to obtaining
information on market standards for remuneration
systems, the remuneration committee should ensure
that the consultant concerned does not at the same time
advice the human resources department, executive
directors or collegial management organs of the
company concerned.
4.7. Activities of the collegial body should be organized	YES/NO	The Board is elected from four members, so
in a manner that independent members of the collegial		recommended nominations and salaries functions of
body could have major influence in relevant areas		committees are transferred to the Board. The board shall
where chances of occurrence of conflicts of interest are		appoint director of the Company, ensure regular
very high. Such areas to be considered as highly		assessment of his professional skills, take reports, assess
relevant are issues of nomination of company's		the performance of strategic objectives. The board of the
directors, determination of directors' remuneration and		Company shall perform its functions, including approval,
control and assessment of company's audit. Therefore		control and performance of budget. The board of the
when the mentioned issues are attributable to the		Company shall select auditor and offer the same for
competence of the collegial body, it is recommended		approval by the general meeting of the shareholders.
that the collegial body should establish nomination,		Audit committee is formed from 2 members, the one of
remuneration, and audit committees. Companies should		who is independent.
ensure that the functions attributable to the nomination,
remuneration, and audit committees are carried out.
However they may decide to merge these functions and
set up less than three committees. In such case a
company should explain in detail reasons behind the
selection of alternative approach and how the selected
approach complies with the objectives set forth for the
three different committees. Should the collegial body of
the company comprise small number of members, the
functions assigned to the three committees may be
performed by the collegial body itself, provided that it
meets composition requirements advocated for the
committees and that adequate information is provided
in this respect. In such case provisions of this Code
relating to the committees of the collegial body (in
particular with respect to their role, operation, and
transparency) should apply, where relevant, to the
collegial body as a whole.
4.8. The key objective of the committees is to increase	YES/NO	Nomination and salaries committees are not formed in the
efficiency of the activities of the collegial body by		company. The execution of the mentioned committees
ensuring that decisions are based on due consideration,		functions are discussed in comment 4.7. The audit
and to help organize its work with a view to ensuring that the decisions it takes are free of material conflicts		committee is formed in the company.
of interest. Committees should exercise independent
judgement and integrity when exercising its functions
as well as present the collegial body with
recommendations concerning the decisions of the
collegial body. Nevertheless the final decision shall be
adopted by the collegial body. The recommendation on
creation of committees is not intended, in principle, to
constrict the competence of the collegial body or to
remove the matters considered from the purview of the
collegial body itself, which remains fully responsible
for the decisions taken in its field of competence.
4.9. Committees established by the collegial body	YES/NO	Nomination and salaries committees are not formed in the
should normally be composed of at least three		company. The execution of the mentioned committees
members. In companies with small number of members		functions are discussed in comment 4.7. Audit committee
of the collegial body, they could exceptionally be		is formed from 2 members, the one of who is
composed of two members. Majority of the members of		independent.
each committee should be constituted from independent
members of the collegial body. In cases when the
company chooses not to set up a supervisory board,

remuneration and audit committees should be entirely comprised of non-executive directors. Chairmanship and membership of the committees should be decided with due regard to the need to ensure that committee membership is refreshed and that undue reliance is not placed on particular individuals. Chairmanship and membership of the committees should be decided with due regard to the need to ensure that committee membership is refreshed and that undue reliance is not
placed on particular individuals.
4.10. Authority of each of the committees should be determined by the collegial body. Committees should perform their duties in line with authority delegated to them and inform the collegial body on their activities and performance on regular basis. Authority of every committee stipulating the role and rights and duties of the committee should be made public at least once a year (as part of the information disclosed by the company annually on its corporate governance structures and practices). Companies should also make public annually a statement by existing committees on their composition, number of meetings and attendance over the year, and their main activities. Audit committee should confirm that it is satisfied with the independence of the audit process and describe briefly the actions it has taken to reach this conclusion.	YES/NO	Nomination and salaries committees are not formed in the company. The execution of the mentioned committees functions are discussed in comment 4.7. The audit committee is formed in the company.
4.11. In order to ensure independence and impartiality	YES/NO	Nomination and salaries committees are not formed in the
of the committees, members of the collegial body that are not members of the committee should commonly have a right to participate in the meetings of the committee only if invited by the committee. A committee may invite or demand participation in the meeting of particular officers or experts. Chairman of each of the committees should have a possibility to maintain direct communication with the shareholders. Events when such are to be performed should be		company. The execution of the mentioned committees functions are discussed in comment 4.7. The audit committee is formed in the company.
specified in the regulations for committee activities. 4.12. Nomination Committee.	NO	Nomination and salaries committees are not formed in the
4.12.1. Key functions of the nomination committee should be the following:		company. The execution of the mentioned committees functions are discussed in comment 4.7.
• Identify and recommend, for the approval of the collegial body, candidates to fill board vacancies. The nomination committee should evaluate the balance of skills, knowledge and experience on the management body, prepare a description of the roles and capabilities required to assume a particular office, and assess the time commitment expected. Nomination committee can also consider candidates to members of the collegial body delegated by the shareholders of the company; • Assess on regular basis the structure, size, composition and performance of the supervisory and management bodies, and make recommendations to the collegial body regarding the means of achieving necessary changes; • Assess on regular basis the skills, knowledge and experience of individual directors and report on this to the collegial body; • Properly consider issues related to succession planning; • Review the policy of the management bodies for selection and appointment of senior management. 4.12.2. Nomination committee should consider proposals by other parties, including management and

shareholders. When dealing with issues related to
executive directors or members of the board (if a
collegial body elected by the general shareholders'
meeting is the supervisory board) and senior
management, chief executive officer of the company
should be consulted by, and entitled to submit
proposals to the nomination committee.
4.13. Remuneration Committee.	NO	Nomination and salaries committees are not formed in the
4.13.1. Key functions of the remuneration committee		company. The execution of the mentioned committees
should be the following:		functions are discussed in comment 4.7.
• Make proposals, for the approval of the collegial
body, on the remuneration policy for members of
management bodies and executive directors. Such
policy should address all forms of compensation,
including the fixed remuneration, performance-based
remuneration schemes, pension arrangements, and
termination payments. Proposals considering
performance-based remuneration schemes should be
accompanied with recommendations on the related
objectives and evaluation criteria, with a view to
properly aligning the pay of executive director and
members of the management bodies with the long-term
interests of the shareholders and the objectives set by
the collegial body;
• Make proposals to the collegial body on the individual
remuneration for executive directors and member of
management bodies in order their remunerations are
consistent with company's remuneration policy and the
evaluation of the performance of these persons
concerned. In doing so, the committee should be
properly informed on the total compensation obtained
by executive directors and members of the management
bodies from the affiliated companies;
• Ensure that remuneration of individual executive
directors or members of management body is
proportionate to the remuneration of other executive
directors or members of management body and other
staff members of the company;
• Periodically review the remuneration policy for
executive directors or members of management body,
including the policy regarding share-based
remuneration, and its implementation;
• Make proposals to the collegial body on suitable
forms of contracts for executive directors and members
of the management bodies;
• Assist the collegial body in overseeing how the
company complies with applicable provisions regarding
the remuneration-related information disclosure (in
particular the remuneration policy applied and
individual remuneration of directors);
• Make general recommendations to the executive
directors and members of the management bodies on
the level and structure of remuneration for senior
management (as defined by the collegial body) with
regard to the respective information provided by the
executive directors and members of the management
bodies.
4.13.2. With respect to stock options and other share
based incentives which may be granted to directors or
other employees, the committee should:
• Consider general policy regarding the granting of the
above mentioned schemes, in particular stock options,
and make any related proposals to the collegial body;
• Examine the related information that is given in the
company's annual report and documents intended for
		9

the use during the shareholders meeting; • Make proposals to the collegial body regarding the choice between granting options to subscribe shares or granting options to purchase shares, specifying the reasons for its choice as well as the consequences that this choice has. 4.13.3. Upon resolution of the issues attributable to the competence of the remuneration committee, the committee should at least address the chairman of the collegial body and/or chief executive officer of the company for their opinion on the remuneration of other executive directors or members of the management bodies. 4.13.4. The remuneration committee should report on the exercise of its functions to the shareholders and be present at the annual general meeting for this purpose.
4.14. Audit Committee. 4.14.1. Key functions of the audit committee should be the following: • Observe the integrity of the financial information provided by the company, in particular by reviewing the relevance and consistency of the accounting methods used by the company and its group (including the criteria for the consolidation of the accounts of companies in the group); • At least once a year review the systems of internal control and risk management to ensure that the key risks (inclusive of the risks in relation with compliance with existing laws and regulations) are properly identified, managed and reflected in the information provided; • Ensure the efficiency of the internal audit function, among other things, by making recommendations on the selection, appointment, reappointment and removal of the head of the internal audit department and on the budget of the department, and by monitoring the responsiveness of the management to its findings and recommendations. Should there be no internal audit authority in the company, the need for one should be reviewed at least annually; • Make recommendations to the collegial body related with selection, appointment, reappointment and removal of the external auditor (to be done by the general shareholders' meeting) and with the terms and conditions of his engagement. The committee should investigate situations that lead to a resignation of the audit company or auditor and make recommendations on required actions in such situations; • Monitor independence and impartiality of the external auditor, in particular by reviewing the audit company's compliance with applicable guidance relating to the rotation of audit partners, the level of fees paid by the company, and similar issues. In order to prevent occurrence of material conflicts of interest, the committee, based on the auditor's disclosed inter alia data on all remunerations paid by the company to the auditor and network, should at all times monitor nature and extent of the non-audit services. Having regard to the principals and guidelines established in the 16 May 2002 Commission Recommendation 2002/590/EC, the committee should determine and apply a formal policy establishing types of non-audit services that are (a)	YES	The audit committee is formed in the company. Main functions of Audit committee are: 1.To present recommendations to the Board in relation with selection of external audit company, nomination, repeated nomination and redundancy, and with the contracts terms with audit company; 2.To observe the process of external audit execution; 3.To observe how external auditor keeps to principles of independency and objectivity; 4.To observe the process of company's financial reports preparation; 5. To observe the efficiency of company's internal control and risk management.

excluded, (b) permissible only after review by the committee, and (c) permissible without referral to the committee;

• Review efficiency of the external audit process and responsiveness of management to recommendations made in the external auditor's management letter.

4.14.2. All members of the committee should be furnished with complete information on particulars of accounting, financial and other operations of the company. Company's management should inform the audit committee of the methods used to account for significant and unusual transactions where the accounting treatment may be open to different approaches. In such case a special consideration should be given to company's operations in offshore centers and/or activities carried out through special purpose vehicles (organizations) and justification of such operations.

4.14.3. The audit committee should decide whether participation of the chairman of the collegial body, chief executive officer of the company, chief financial officer (or superior employees in charge of finances, treasury and accounting), or internal and external auditors in the meetings of the committee is required (if required, when). The committee should be entitled, when needed, to meet with any relevant person without executive directors and members of the management bodies present.

4.14.4. Internal and external auditors should be secured with not only effective working relationship with management, but also with free access to the collegial body. For this purpose the audit committee should act as the principal contact person for the internal and external auditors.

4.14.5. The audit committee should be informed of the internal auditor's work program, and should be furnished with internal audit's reports or periodic summaries. The audit committee should also be informed of the work program of the external auditor and should be furnished with report disclosing all relationships between the independent auditor and the company and its group. The committee should be timely furnished information on all issues arising from the audit.

4.14.6. The audit committee should examine whether the company is following applicable provisions regarding the possibility for employees to report alleged significant irregularities in the company, by way of complaints or through anonymous submissions (normally to an independent member of the collegial body), and should ensure that there is a procedure established for proportionate and independent investigation of these issues and for appropriate follow up action.

4.14.7. The audit committee should report on its activities to the collegial body at least once in every six months, at the time the yearly and half-yearly statements are approved.

4.15. Every year the collegial body should conduct the	NO	There is no Board evaluation practice in the company.
assessment of its activities. The assessment should
include evaluation of collegial body's structure, work
organization and ability to act as a group, evaluation of
each of the collegial body member's and committee's
competence and work efficiency and assessment
whether the collegial body has achieved its objectives.
The collegial body should, at least once a year, make
public (as part of the information the company annually
discloses on its management structures and practices)
respective information on its internal organization and
working procedures, and specify what material changes
were made as a result of the assessment of the collegial
body of its own activities.

Principle V: The working procedure of the company's collegial bodies

The working procedure of supervisory and management bodies established in the company should ensure efficient operation of these bodies and decision-making and encourage active co-operation between the company's bodies.

5.1. The company's supervisory and management bodies (hereinafter in this Principle the concept 'collegial bodies' covers both the collegial bodies of supervision and the collegial bodies of management) should be chaired by chairpersons of these bodies. The chairperson of a collegial body is responsible for proper convocation of the collegial body meetings. The chairperson should ensure that information about the meeting being convened and its agenda are communicated to all members of the body. The chairperson of a collegial body should ensure appropriate conducting of the meetings of the collegial body. The chairperson should ensure order and working atmosphere during the meeting.	YES
5.2. It is recommended that meetings of the company's collegial bodies should be carried out according to the schedule approved in advance at certain intervals of time. Each company is free to decide how often to convene meetings of the collegial bodies, but it is recommended that these meetings should be convened at such intervals, which would guarantee an interrupted resolution of the essential corporate governance issues. Meetings of the company's supervisory board should be convened at least once in a quarter, and the company's board should meet at least once a month.	YES/NO	Meetings of Board are held not rarely than once per quarter.
5.3. Members of a collegial body should be notified about the meeting being convened in advance in order to allow sufficient time for proper preparation for the issues on the agenda of the meeting and to ensure fruitful discussion and adoption of appropriate decisions. Alongside with the notice about the meeting being convened, all the documents relevant to the issues on the agenda of the meeting should be submitted to the members of the collegial body. The agenda of the meeting should not be changed or supplemented during the meeting, unless all members of the collegial body are present or certain issues of great importance to the company require immediate resolution.	YES
5.4. In order to co-ordinate operation of the company's collegial bodies and ensure effective decision-making process, chairpersons of the company's collegial bodies of supervision and management should closely co-operate by co-coordinating dates of the meetings, their agendas and resolving other issues of corporate governance. Members of the company's board should be free to attend meetings of the company's supervisory board, especially where issues concerning	Not applicable	Supervisory Board is not formed in the company.

removal of the board members, their liability or
remuneration are discussed.

Principle VI: The equitable treatment of shareholders and shareholder rights

The corporate governance framework should ensure the equitable treatment of all shareholders, including minority and foreign shareholders. The corporate governance framework should protect the rights of the shareholders.

6.1. It is recommended that the company's capital	YES
should consist only of the shares that grant the same
rights to voting, ownership, dividend and other rights to
all their holders.
6.2. It is recommended that investors should have	YES
access to the information concerning the rights attached
to the shares of the new issue or those issued earlier in
advance, i.e. before they purchase shares.
6.3. Transactions that are important to the company and	YES/NO	Shareholders of the company presented the right to the
its shareholders, such as transfer, investment, and		Board to solve regarding company's property transfer,
pledge of the company's assets or any other type of		investment, mortgage or other difficulty.
encumbrance should be subject to approval of the
general shareholders' meeting. All shareholders should
be furnished with equal opportunity to familiarize with
and participate in the decision-making process when
significant corporate issues, including approval of
transactions referred to above, are discussed.
6.4. Procedures of convening and conducting a general	YES
shareholders' meeting should ensure equal
opportunities for the shareholders to effectively
participate at the meetings and should not prejudice the
rights and interests of the shareholders. The venue,
date, and time of the shareholders' meeting should not
hinder wide attendance of the shareholders.
6.5. If is possible, in order to ensure shareholders living	YES	All information for the shareholders is announced acting
abroad the right to access to the information, it is		acc.to AB Law and company's regulations.
recommended that documents on the course of the
general shareholders' meeting should be placed on the
publicly accessible website of the company not only in
Lithuanian language, but in English and /or other
foreign languages in advance. It is recommended that
the minutes of the general shareholders' meeting after
signing them and/or adopted resolutions should be also
placed on the publicly accessible website of the
company. Seeking to ensure the right of foreigners to
familiarize with the information, whenever feasible,
documents referred to in this recommendation should
be published in Lithuanian, English and/or other
foreign languages. Documents referred to in this
recommendation may be published on the publicly
accessible website of the company to the extent that
publishing of these documents is not detrimental to the
company or the company's commercial secrets are not
revealed.
6.6. Shareholders should be furnished with the	YES
opportunity to vote in the general shareholders'
meeting in person and in absentia. Shareholders should
not be prevented from voting in writing in advance by
completing the general voting ballot.
6.7. With a view to increasing the shareholders'	NO	Shareholders did not present the requests to use modern
opportunities to participate effectively at shareholders'		technologies during the voting.
meetings, the companies are recommended to expand
use of modern technologies by allowing the
shareholders to participate and vote in general meetings
via electronic means of communication. In such cases
security of transmitted information and a possibility to

identify the identity of the participating and voting
person should be guaranteed. Moreover, companies
could furnish its shareholders, especially shareholders
living abroad, with the opportunity to watch
shareholder meetings by means of modern
technologies.

Principle VII: The avoidance of conflicts of interest and their disclosure

The corporate governance framework should encourage members of the corporate bodies to avoid conflicts of interest and assure transparent and effective mechanism of disclosure of conflicts of interest regarding members of the corporate bodies.

7.1. Any member of the company's supervisory and	YES
management body should avoid a situation, in which
his/her personal interests are in conflict or may be in
conflict with the company's interests. In case such a
situation did occur, a member of the company's
supervisory and management body should, within
reasonable time, inform other members of the same
collegial body or the company's body that has elected
him/her, or to the company's shareholders about a
situation of a conflict of interest, indicate the nature of
the conflict and value, where possible.
7.2. Any member of the company's supervisory and	YES
management body may not mix the company's assets,
the use of which has not been mutually agreed upon,
with his/her personal assets or use them or the
information which he/she learns by virtue of his/her
position as a member of a corporate body for his/her
personal benefit or for the benefit of any third person
without a prior agreement of the general shareholders'
meeting or any other corporate body authorized by the
meeting.
7.3. Any member of the company's supervisory and	YES
management body may conclude a transaction with the
company, a member of a corporate body of which
he/she is. Such a transaction (except insignificant ones
due to their low value or concluded when carrying out
routine operations in the company under usual
conditions) must be immediately reported in writing or
orally, by recording this in the minutes of the meeting,
to other members of the same corporate body or to the
corporate body that has elected him/her or to the
company's shareholders. Transactions specified in this
recommendation are also subject to recommendation
4.5.
7.4. Any member of the company's supervisory and	YES
management body should abstain from voting when
decisions concerning transactions or other issues of
personal or business interest are voted on.

Principle VIII: Company's remuneration policy

Remuneration policy and procedure for approval, revision and disclosure of directors' remuneration established in the company should prevent potential conflicts of interest and abuse in determining remuneration of directors, in addition it should ensure publicity and transparency both of company's remuneration policy and remuneration of directors.

8.1. A company should make a public statement of the company's remuneration policy (hereinafter the remuneration statement) which should be clear and easily understandable. This remuneration statement should be published as a part of the company's annual statement as well as posted on the company's website.	NO	The company, acc.to the order indicated by the law, announces in the periodical statements only the total salary sum of the company's head and board. The company keeps to the principle that payments related to job is not public announced and confidential information.

8.2. Remuneration statement should mainly focus on	Not	See comment 8.1.
directors' remuneration policy for the following year	applicable
and, if appropriate, the subsequent years. The statement
should contain a summary of the implementation of the
remuneration policy in the previous financial year.
Special attention should be given to any significant
changes in company's remuneration policy as
compared to the previous financial year.
8.3. Remuneration statement should leastwise include	Not	See comment 8.1.
the following information:	applicable
• Explanation of the relative importance of the variable
and non-variable components of directors'
remuneration;
• Sufficient information on performance criteria that
entitles directors to share options, shares or variable
components of remuneration;
• An explanation how the choice of performance
criteria contributes to the long-term interests of the
company;
• An explanation of the methods, applied in order to
determine whether performance criteria have been
fulfilled;
• Sufficient information on deferment periods with
regard to variable components of remuneration;
• Sufficient information on the linkage between the
remuneration and performance;
• The main parameters and rationale for any annual
bonus scheme and any other non-cash benefits;
• Sufficient information on the policy regarding
termination payments;
• Sufficient information with regard to vesting periods
for share-based remuneration, as referred to in point 8.13 of this Code;
• Sufficient information on the policy regarding
retention of shares after vesting, as referred to in point
8.15 of this Code;
• Sufficient information on the composition of peer
groups of companies the remuneration policy of which
has been examined in relation to the establishment of
the remuneration policy of the company concerned;
• A description of the main characteristics of
supplementary pension or early retirement schemes for
directors;
• Remuneration statement should not include
commercially sensitive information.
8.4. Remuneration statement should also summarize	Not	See comment 8.1.
and explain company's policy regarding the terms of	applicable
the contracts executed with executive directors and
members of the management bodies. It should include,
inter alia, information on the duration of contracts with
executive directors and members of the management
bodies, the applicable notice periods and details of
provisions for termination payments linked to early
termination under contracts for executive directors and
members of the management bodies.

8.5. Remuneration statement should also contain	Not	See comment 8.1.
detailed information on the entire amount of	applicable
remuneration, inclusive of other benefits, that was paid
to individual directors over the relevant financial year.
This document should list at least the information set
out in items 8.5.1 to 8.5.4 for each person who has
served as a director of the company at any time during
the relevant financial year.
8.5.1. The following remuneration and/or emoluments -
related information should be disclosed:
• The total amount of remuneration paid or due to the
director for services performed during the relevant
financial year, inclusive of, where relevant, attendance
fees fixed by the annual general shareholders meeting;
• The remuneration and advantages received from any
undertaking belonging to the same group;
• The remuneration paid in the form of profit sharing
and/or bonus payments and the reasons why such bonus
payments and/or profit sharing were granted;
• If permissible by the law, any significant additional
remuneration paid to directors for special services
outside the scope of the usual functions of a director;
• Compensation receivable or paid to each former
executive director or member of the management body
as a result of his resignation from the office during the
previous financial year;
• Total estimated value of non -cash benefits considered
as remuneration, other than the items covered in the
above points.
8.5.2. As regards shares and/or rights to acquire share
options and/or all other share -incentive schemes, the
following information should be disclosed:
• The number of share options offered or shares granted
by the company during the relevant financial year and
their conditions of application;
• The number of shares options exercised during the
relevant financial year and, for each of them, the
number of shares involved and the exercise price or the
value of the interest in the share incentive scheme at the
end of the financial year;
• The number of share options unexercised at the end of
the financial year; their exercise price, the exercise date
and the main conditions for the exercise of the rights;
• All changes in the terms and conditions of existing
share options occurring during the financial year.
8.5.3. The following supplementary pension schemes -
related information should be disclosed:
• When the pension scheme is a defined -benefit
scheme, changes in the directors' accrued benefits
under that scheme during the relevant financial year;
• When the pension scheme is defined -contribution
scheme, detailed information on contributions paid or
payable by the company in respect of that director
during the relevant financial year.
8.5.4. The statement should also state amounts that the
company or any subsidiary company or entity included
in the consolidated annual financial report of the
company has paid to each person who has served as a
director in the company at any time during the relevant
financial year in the form of loans, advance payments
or guarantees, including the amount outstanding and the
interest rate

8.6. Where the remuneration policy includes variable	Not	See comment 8.1.
components of remuneration, companies should set	applicable
limits on the variable component(s). The non -variable
component of remuneration should be sufficient to
allow the company to withhold variable components of
remuneration when performance criteria are not met.
8.7. Award of variable components of remuneration	Not	See comment 8.1.
should be subject to predetermined and measurable	applicable
performance criteria.
8.8. Where a variable component of remuneration is	Not	See comment 8.1.
awarded, a major part of the variable component should	applicable
be deferred for a minimum period of time. The part of
the variable component subject to deferment should be
determined in relation to the relative weight of the
variable component compared to the non -variable
component of remuneration.
8.9. Contractual arrangements with executive or	Not	See comment 8.1.
managing directors should include provisions that	applicable
permit the company to reclaim variable components of
remuneration that were awarded on the basis of data
which subsequently proved to be manifestly misstated.
8.10. Termination payments should not exceed a fixed	Not	See comment 8.1.
amount or fixed number of years of annual	applicable
remuneration, which should, in general, not be higher
than two years of the non -variable component of
remuneration or the equivalent thereof.
8.11. Termination payments should not be paid if the	Not	See comment 8.1.
termination is due to inadequate performance.	applicable
8.12. The information on preparatory and decision -	Not	See comment 8.1.
making processes, during which a policy of	applicable
remuneration of directors is being established, should
also be disclosed. Information should include data, if
applicable, on authorities and composition of the
remuneration committee, names and surnames of
external consultants whose services have been used in
determination of the remuneration policy as well as the
role of shareholders' annual general meeting.
8.13. Shares should not vest for at least three years after	Not	See comment 8.1.
their award.	applicable
8.14. Share options or any other right to acquire shares	Not	See comment 8.1.
or to be remunerated on the basis of share price	applicable
movements should not be exercisable for at least three
years after their award. Vesting of shares and the right
to exercise share options or any other right to acquire
shares or to be remunerated on the basis of share price
movements, should be subject to predetermined and
measurable performance criteria.
8.15. After vesting, directors should retain a number of	Not	See comment 8.1.
shares, until the end of their mandate, subject to the	applicable
need to finance any costs related to acquisition of the
shares. The number of shares to be retained should be
fixed, for example, twice the value of total annual
remuneration (the non -variable plus the variable
components).
8.16. Remuneration of non -executive or supervisory	Not	See comment 8.1.
directors should not include share options.	applicable
8.17. Shareholders, in particular institutional	Not	See comment 8.1.
shareholders, should be encouraged to attend general	applicable
meetings where appropriate and make considered use
of their votes regarding directors' remuneration.

8.18. Without prejudice to the role and organization of	Not	See comment 8.1.
the relevant bodies responsible for setting directors'	applicable
remunerations, the remuneration policy or any other
significant change in remuneration policy should be
included into the agenda of the shareholders' annual
general meeting. Remuneration statement should be put
for voting in shareholders' annual general meeting. The
vote may be either mandatory or advisory.
8.19. Schemes anticipating remuneration of directors in	Not	Such schemes are not applied in the company.
shares, share options or any other right to purchase	applicable
shares or be remunerated on the basis of share price
movements should be subject to the prior approval of
shareholders' annual general meeting by way of a
resolution prior to their adoption. The approval of
scheme should be related with the scheme itself and not
to the grant of such share-based benefits under that
scheme to individual directors. All significant changes
in scheme provisions should also be subject to
shareholders' approval prior to their adoption; the
approval decision should be made in shareholders'
annual general meeting. In such case shareholders
should be notified on all terms of suggested changes
and get an explanation on the impact of the suggested
changes.
8.20. The following issues should be subject to	Not	Such schemes are not applied in the company.
approval by the shareholders' annual general meeting:	applicable
• Grant of share-based schemes, including share options, to directors;
• Determination of maximum number of shares and
main conditions of share granting;
• The term within which options can be exercised;
• The conditions for any subsequent change in the
exercise of the options, if permissible by law;
• All other long-term incentive schemes for which
directors are eligible and which are not available to
other employees of the company under similar terms.
Annual general meeting should also set the deadline
within which the body responsible for remuneration of
directors may award compensations listed in this article
to individual directors.
8.21. Should national law or company's Articles of	Not	Such schemes are not applied in the company.
Association allow, any discounted option arrangement	applicable
under which any rights are granted to subscribe to
shares at a price lower than the market value of the
share prevailing on the day of the price determination,
or the average of the market values over a number of
days preceding the date when the exercise price is
determined, should also be subject to the shareholders'
approval.
8.22. Provisions of Articles 8.19 and 8.20 should not be	Not	Such schemes are not applied in the company.
applicable to schemes allowing for participation under	applicable
similar conditions to company's employees or
employees of any subsidiary company whose
employees are eligible to participate in the scheme and
which has been approved in the shareholders' annual
general meeting.

8.23. Prior to the annual general meeting that is	Not	Such schemes are not applied in the company.
intended to consider decision stipulated in Article 8.19,	applicable
the shareholders must be provided an opportunity to
familiarize with draft resolution and project-related
notice (the documents should be posted on the
company's website). The notice should contain the full
text of the share-based remuneration schemes or a
description of their key terms, as well as full names of
the participants in the schemes. Notice should also
specify the relationship of the schemes and the overall
remuneration policy of the directors. Draft resolution
must have a clear reference to the scheme itself or to
the summary of its key terms. Shareholders must also
be presented with information on how the company
intends to provide for the shares required to meet its
obligations under incentive schemes. It should be
clearly stated whether the company intends to buy
shares in the market, hold the shares in reserve or issue
new ones. There should also be a summary on scheme
related expenses the company will suffer due to the
anticipated application of the scheme. All information
given in this article must be posted on the company's
website.

Principle IX: The role of stakeholders in corporate governance

The corporate governance framework should recognize the rights of stakeholders as established by law and encourage active co-operation between companies and stakeholders in creating the company value, jobs and financial sustainability. For the purposes of this Principle, the concept "stakeholders" includes investors, employees, creditors, suppliers, clients, local community and other persons having certain interest in the company concerned.

9.1. The corporate governance framework should	YES
assure that the rights of stakeholders that are protected
by law are respected.
9.2. The corporate governance framework should create	YES
conditions for the stakeholders to participate in
corporate governance in the manner prescribed by law.
Examples of mechanisms of stakeholder participation
in corporate governance include: employee
participation in adoption of certain key decisions for the
company; consulting the employees on corporate
governance and other important issues; employee
participation in the company's share capital; creditor
involvement in governance in the context of the
company's insolvency, etc.
9.3. Where stakeholders participate in the corporate	YES	It is requested to sign confidential contract in order to be able to
governance process, they should have access to relevant		get acquainted with proper information.
information.

Principle X: Information disclosure and transparency

The corporate governance framework should ensure that timely and accurate disclosure is made on all material information regarding the company, including the financial situation, performance and governance of the company.

10.1. The company should disclose information on:	YES/NO	Company discloses the information which is not
• The financial and operating results of the company;		confidential. Company keeps to the principle that the
• Company objectives;		payments related to job are not public announced and
• Persons holding by the right of ownership or in		confidential information and it is impossible to announce
control of a block of shares in the company;		some information without the allowance of persons.
• Members of the company's supervisory and
management bodies, chief executive officer of the
company and their remuneration;
• Material foreseeable risk factors;

• Transactions between the company and connected persons, as well as transactions concluded outside the course of the company's regular operations; • Material issues regarding employees and other stakeholders; • Governance structures and strategy.
This list should be deemed as a minimum recommendation, while the companies are encouraged not to limit themselves to disclosure of the information specified in this list.
10.2. It is recommended that consolidated results of the whole group to which the company belongs should be disclosed when information specified in item 1 of Recommendation 10.1 is under disclosure.	YES
10.3. It is recommended that information on the professional background, qualifications of the members of supervisory and management bodies, chief executive officer of the company should be disclosed as well as potential conflicts of interest that may have an effect on their decisions when information specified in item 4 of Recommendation 10.1 about the members of the company's supervisory and management bodies is under disclosure. It is also recommended that information about the amount of remuneration received from the company and other income should be disclosed with regard to members of the company's supervisory and management bodies and chief executive officer as per Principle VIII.	YES/NO	See comment 10.1.
10.4. It is recommended that information about the links between the company and its stakeholders, including employees, creditors, suppliers, local community, as well as the company's policy with regard to human resources, employee participation schemes in the company's share capital, etc. should be disclosed when information specified in item 7 of Recommendation 10.1 is under disclosure.	YES/NO	See comment 10.1.
10.5. Information should be disclosed in such a way that neither shareholders nor investors are discriminated with regard to the manner or scope of access to information. Information should be disclosed to all simultaneously. It is recommended that notices about material events should be announced before or after a trading session on the Vilnius Stock Exchange, so that all the company's shareholders and investors should have equal access to the information and make informed investing decisions.	YES
10.6. Channels for disseminating information should provide for fair, timely and cost-efficient or in cases provided by the legal acts free of charge access to relevant information by users. It is recommended that information technologies should be employed for wider dissemination of information, for instance, by placing the information on the company's website. It is recommended that information should be published and placed on the company's website not only in Lithuanian, but also in English, and, whenever possible and necessary, in other languages as well.	YES	Information is announced in the web page of the company www.linas.lt in Lithuanian and English languages.
10.7. It is recommended that the company's annual reports and other periodical accounts prepared by the company should be placed on the company's website. It is recommended that the company should announce information about material events and changes in the price of the company's shares on the Stock Exchange	YES/NO	In company's web page www.linas.lt it is announced: company's annual and interim reports, presentations of the activity results, audited financial reports, notices about essential events, regulations of the company.

on the company's website too.

Principle XI: The selection of the company's auditor

The mechanism of the selection of the company's auditor should ensure independence of the firm of auditor's conclusion and opinion.

11.1. An annual audit of the company's financial	YES
reports and interim reports should be conducted by an
independent firm of auditors in order to provide an
external and objective opinion on the company's
financial statements.
11.2. It is recommended that the company's	YES
supervisory board and, where it is not set up, the
company's board should propose a candidate firm of
auditors to the general shareholders' meeting.
11.3. It is recommended that the company should	Not	Audit company receives only the pay for presented audit
disclose to its shareholders the level of fees paid to the	applicable	services from the company which is know for the
firm of auditors for non-audit services rendered to the		shareholders.
company. This information should be also known to the
company's supervisory board and, where it is not
formed, the company's board upon their consideration
which firm of auditors to propose for the general
shareholders' meeting.

AB LINAS CONSOLIDATED AND COMPANY'S ANNUAL FINANCIAL STATEMENTS

YEAR 2015

SUMMARY

Independent auditor's report 3
Statement of Financial Position 5
Statement of Profit or Loss and Other Comprehensive Income 7
Statement of Changes in Equity 8
Statement of Cash Flows 10
Explanatory Memorandum 11
Notes of Explanatory Memorandum 28

S. Kerbedzio 23, Panevezys of

Linas, AB CONFIRMED by Company Code 147689083 General shareholders' meeting Act No. Financial statements formation date - 17 03 2016

STATEMENT OF FINANCIAL POSITION 31/12/2015

Formulated according to TFAS

	Reporting cycle 01 01 2015 - 31 12 2015					EUR
				GROUP		COMPANY
No.	ASSETS	Note No.	Financial	Previous	Financial	Previous
			year	financial	year	financial
				year		year
A.	Long-term assets				2.282.198 2.133.057 2.004.225 1.913.322
I.	Intangible assets	2.2.; 4.1.;4.3.	1.268	1.703	1.268	1.703
I.1.	Developmental works		0	0	0	0
I.2.	Prestige		0	0	0	0
I.3.	Patents, licenses		0	0	0	0
I.4.	Software		1.268	1.703	1.268	1.703
I.5.	Other intangible assets		0	0	0	0
II.	Tangible assets	2.3. ;4.2. ;4.3.	474.565	517.417	194.143	295.539
II.1.	Land		0	0	0	0
II.2.	Buildings		0	0	0	0
II.3.	Structures		2.589	3.254	0	0
II.4.	Machinery and equipment		399.318	466.257	130.712	260.887
II.5.	Means of transport		56.077	27.205	51.040	19.637
II.6.	Other equipment, appliances, instruments and gear		16.581	20.701	12.391	15.015
II.7.	Unfinished construction		0	0	0	0
II.8.	Other tangible assets		0	0	0	0
III.	Investment property		0	0	0	0
IV.	Financial assets	2.4.; 4.4.	1.805.749	1.612.707	1.808.645	1.615.603
IV.1.	Investments to affiliates and associated companies		0	0	2.896	2.896
IV.2.	Loans to affiliates and associated companies		0	0	0	0
IV.3.	Amounts received after one year	4.9.;4.20.	1.805.459	1.612.417	1.805.459	1.612.417
IV.4.	Other financial assets		290	290	290	290
V.	Other long-term assets		616	1.230	169	477
V.1.	Deferred corporation tax assets	2.14.; 4.22.	616	1.230	169	477
V.2.	Other long-term assets		0	0	0	0
B.	Short-term assets				6.147.697 5.828.406 5.855.075 5.625.392
	Stocks, prepayments and unaccomplished
I.	contracts		3.558.952	3.039.113	3.595.762	2.958.206
I.1.	Stocks	2.5.; 4.5.	3.298.879	2.931.423	3.340.645	2.870.037
I.1.1.	Raw materials and packaging products		2.021.642	1.398.067	2.014.755	1.350.146
I.1.2.	Unfinished production		15.951	69.579	0	0
I.1.3.	Ready production		1.259.717	1.456.782	1.324.321	1.512.896
I.1.4.	Goods, purchased for resell		1.569	6.995	1.569	6.995
I.1.5.	Other stock		0	0	0	0
I.2.	Prepayments	4.6.	260.073	107.690	255.117	88.169
I.3.	Unaccomplished contracts		0	0	0	0
II.	Amounts, receivable over one year	2.6.;4.7.;4.8.	2.251.759	2.234.879	1.934.510	2.129.453
II.1.	Customers' debts		2.033.229	1.769.429	1.807.070	1.759.157
II.2.	Debts of affiliates and associated companies		0	0	0	0
II.3.	Other receivable amounts		218.530	465.450	127.440	370.296
III.	Other short-term assets		0	0	0	0
III.1.	Short-term investments		0	0	0	0
III.2.	Term deposits		0	0	0	0
III.3.	Other short-term assets		0	0	0	0
IV.	Currency and its equivalents	2.7.	336.986	554.414	324.803	537.733
	Total assets				8.429.895 7.961.463 7.859.300 7.538.714

				GROUP		COMPANY
				Previous		Previous
No.	PRIVATE ASSETS AND OBLIGATIONS		Financial year	financial	Financial year	financial
		Note No.		year		year
C.	Private assets	2.8.		6.722.561 6.160.413 6.349.069 5.838.310
I.	Capital	4.10.	6.971.307	6.962.173	6.971.307	6.962.173
I.1.	Capital (authorized)		6.971.307	6.962.173	6.971.307	6.962.173
I.2.	Signed unpaid capital (-)		0	0	0	0
I.3.	Shares premiums		0	0	0	0
I.4.	Private shares(-)		0	0	0	0
II.	Revaluation reserve (results)		0	0	0	0
III.	Reserves	4.11.	174.062	174.062	0	0
III.1.	Obligatory		290	290	0	0
III.2.	For purchase of proprietary shares		0	0	0	0
III.3.	Other reserves		173.772	173.772	0	0
IV.	Retained profit (losses)	4.12.	(422.808)	(975.822)		(622.238) (1.123.863)
IV.1.	Profit of reporting year (losses)			553.014 (1.011.225)		501.625 (1.023.703)
IV.1.1.	Profit (loss) acknowledged in statement of profit or			553.014 (1.011.225)		501.625 (1.023.703)
	loss and other comprehensive income
IV.1.2.	Profit (loss) not acknowledged in statement of		0	0	0	0
	profit or loss and other comprehensive income
IV.2.	Profit (loss) of previous year		(975.822)		35.403 (1.123.863)	(100.160)
V.	Non-controlled part		0	0	0	0
D.	Grants, subsidies	2.9.;4.13.	0	399	0	0
D.	Payable amounts and obligations	2.10.;4.14.		1.707.334 1.800.651 1.510.231 1.700.404
I.	Amounts payable after one year and long-term obligations		113.453	113.453	113.453	113.453
I.1.	Financial debts		0	0	0	0
I.1.1.	Leasing (financial rents) or similar obligations		0	0	0	0
I.1.2.	To credit organizations		0	0	0	0
I.1.3.	Other financial debts		0	0	0	0
I.2.	Debts to suppliers		0	0	0	0
I.3.	Received prepayments		11.345	11.345	11.345	11.345
I.4.	Provisions	2.11.	0	0	0	0
I.4.1.	Reimbursement of obligation and demands		0	0	0	0
I.4.2.	Pensions and similar obligations		0	0	0	0
I.4.3.	Other suspensions		0	0	0	0
I.5.	Suspended taxe obligations		0	0	0	0
I.6.	Other payable amounts and long-term obligations		102.108	102.108	102.108	102.108
	Amounts payable within one year and short
II.	term obligations		1.593.881	1.687.198	1.396.778	1.586.951
II.1.	Current year part of long-term amount		0	0	0	0
II.2.	Financial debts		0	0	0	0
II.2.1.	To credit organizations		0	0	0	0
II.2.2.	Other financial debts		0	0	0	0
II.3.	Debts to suppliers		1.171.635	885.990	1.115.540	1.069.371
II.4.	Received prepayments		71.157	115.392	71.157	115.375
II.5.	Profit tax payment obligations		28.984	108.587	28.984	108.587
II.6.	Obligations related to work relations	4.15.	249.099	417.217	111.949	136.701
II.7.	Provisions		0	0	0	0
II.8.	Other payable amounts and short-term obligations		73.006	160.012	69.148	156.917
	Total proprietary capital and obligations			8.429.895 7.961.463 7.859.300 7.538.714

Director Ramūnas Lenčiauskas

Chief accountant – chief of section of accounting and analysis Daiva Minkevičienė

S. Kerbedzio 23, Panevezys of

Linas, AB CONFIRMED by Company Code 147689083 General shareholders' meeting Act No. Financial statements formation date - 17 03 2016

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 31/12/2015

Formulated according to TFAS

	Reporting cycle 01 01 2015 - 31 12 2015					EUR
			GROUP		COMPANY
			Financial	Previous	Financial	Previous
			year	financial	year	financial
No.	ARTICLES	Note No.		year		year
I.	SALE INCOME	2.12.2.;4.16.	12.722.200	12.024.341	12.598.582	11.850.634
I.1.	Income for sold goods		12.078.417	11.358.061	12.078.480	11.358.061
I.2.	Income for sold services		643.783	666.280	520.102	492.573
II.	SALE COST PRICE	2.13.3.;4.16.	9.084.160	7.860.806	10.450.627	9.491.338
II.1.	Cost price of sold production		8.768.864	7.559.426	10.197.767	9.284.818
II.2.	Cost price of sold services		315.296	301.380	252.860	206.520
III.	GROSS PROFIT (LOSS)	2.12.4.; 4.16.	3.638.040	4.163.535	2.147.955	2.359.296
IV.	ACTIVITY EXPENDITURES	2.13.4.;4.17.	2.864.885	3.033.794	1.579.829	1.500.866
IV.1.	Sale		712.376	683.610	706.360	680.775
IV.2.	Common and administrative		2.152.509	2.350.184	873.469	820.091
V.	PROFIT (LOSS) OF STANDARD		773.155	1.129.741	568.126	858.430
	ACTIVITY	4.16.
VI.	OTHER ACTIVITY	4.18.	54.432	(14.278)	198.674	235.750
VI.1.	Income	2.12.6.	509.546	193.317	981.257	1.261.475
VI.2.	Expenditures	2.13.5.	455.114	207.595	782.583	1.025.725
	FINANCIAL AND INVESTMENT
VII.	ACTIVITY	4.19.	(150.804)	(1.954.629)	(150.012)	(1.954.352)
VII.1.	Income	2.12.7.	38.757	17.472	39.379	17.411
VII.2.	Expenditures	2.13.6.	189.561	1.972.101	189.391	1.971.763
VIII.	PROFIT (LOSS) OF ROUTINE		676.783	(839.166)	616.788	(860.172)
	ACTIVITY
IX.	PROFIT (LOSS) BEFORE		676.783	(839.166)	616.788	(860.172)
	TAXATION
X.	PROFIT TAX	2.14.; 4.21.	123.769	172.059	115.163	163.531
XI.	PROFIT (LOSS) BEFORE NON		553.014	(1.011.225)	501.625	(1.023.703)
	CONTROLLED PART
XII.	NON-CONTROLLED PART		0	0	0	0
XIII.	NET PROFIT (LOSS)		553.014	(1.011.225)	501.625	(1.023.703)
	OTHER COMPREHENSIVE
XIV.	INCOME		0	0	0	0
XV.	Earnings (deficit) per share	2.15.;4.24.	0,02	(0,04)	0,02	(0,04)

Director Ramūnas Lenčiauskas

Chief accountant – chief of section of accounting and analysis Daiva Minkevičienė

S. Kerbedzio 23, Panevezys of

Linas, AB CONFIRMED by Company Code 147689083 General shareholders' meeting Act No. Financial statements formation date - 17 03 2016

STATEMENT OF LINAS, LLC ENTERPRISE GROUP CHANGES IN EQUITY 31/12/2015

Reporting cycle 01 01 2015 - 31 12 2015												EUR
						Revaluation	Law covered		Other reserves
						reserve (results)	reserves
	Remarks No.	Paid-up authorized capital	Addi tions to shares	Private shares (-)	Long- term tangible assets	Financial assets	Obligatory Private	shares procu rement	Support reserves and other payouts acc. to collective agreement	Other reserves	Unappro priated profit (loss)	Total
		1	2	3	4	5	6	7	8	9	10	11
Remainder
on 31 December, 2013		6.962.173	0	0	0	0	696.507	0	0	86.886	(573.928)	7.171.638
Profit/loss not acknowledged in statement of profit or loss and other comprehensive income												0
Net profit / loss of												(1.011.225) (1.011.225)
the current period
Formed reserves	2.8.;4.11.									173.772	(173.772)	0
Liquidates reserves	2.8.;4.11.						(696.217)			(86.886)	783.103	0
Remainder on 31 December, 2014		6.962.173	0	0	0	0	290	0	0	173.772	(975.822)	6.160.413
Profit/loss not acknowledged in statement of profit or loss and other comprehensive income												0
Authorized capital difference, appeared recalculating authrorized capital expressed in Lt into EUR		9.134										9.134
Net profit / loss of											553.014	553.014
the current period
Formed reserves	2.8.;4.11.									173.772	(173.772)	0
Liquidates reserves	2.8.;4.11.									(173.772)	173.772	0
Remainder on 31 December, 2015		6.971.307	0	0	0	0	290	0	0	173.772	(422.808)	6.722.561

Director Ramūnas Lenčiauskas Chief accountant – chief of section of accounting and analysis Daiva Minkevičienė

S. Kerbedzio 23, Panevezys of

Linas, AB CONFIRMED by Company Code 147689083 General shareholders' meeting Act No. Financial statements formation date - 17 03 2016

STATEMENT OF CHANGES IN EQUITY 31/12/2015

Reporting cycle 01 01 2015 - 31 12 2015 EUR Remarks No. Paid-up authorized capital Additions to shares Private shares (-) Revaluation reserve (results) Law covered reserves Other reserves Unappropriated profit (loss) Total Longterm tangible assets Financial assets Obligatory Private shares procurement Support reserves and other payouts acc. to collective agreement Other reserve s 1 2 3 4 5 6 7 8 9 10 11 Remainder on 31 December, 2013 6.962.173 0 0 0 0 696.217 0 0 0 (796.377) 6.862.013 Profit/loss not acknowledged in statement of profit or loss and other comprehensive income 0 Net profit / loss of the current period 2.8.;4.12. (1.023.703) (1.023.703) Formed reserves 2.8.;4.11. 0 Liquidates reserves 2.8.;4.11. (696.217) 696.217 0 Remainder on 31 December, 2014 6.962.173 0 0 0 0 0 0 0 0 (1.123.863) 5.838.310 Profit/loss not acknowledged in statement of profit or loss and other comprehensive income 0 Authorized capital difference, appeared recalculating authrorized capital expressed in Lt into EUR 9.134 9.134 Net profit / loss of the current period 2.8.;4.12. 501.625 501.625 Formed reserves 2.8.;4.11. 0 Liquidates reserves 2.8.;4.11. 0 Remainder on 31 December, 2015 6.971.307 0 0 0 0 0 0 0 0 (622.238) 6.349.069

Director Ramūnas Lenčiauskas

Chief accountant – chief of section of accounting and analysis Daiva Minkevičienė

Company Code 147689083 CONFIRMED by

Linas, AB Formed in direct pattern S. Kerbedzio 23, Panevezys General shareholders' meeting of Act No. Financial statements formation date - 17 03 2016

STATEMENT OF CASH FLOWS

31/12/2015

Reporting cycle 01 01 2015 - 31 12 2015 EUR No. Articles Note No. GROUP COMPANY Financial year Previous financial year Financial year Previous financial year I. Primary activity currency circulation I.1. Earnings of report period (including VAT) 13.437.558 12.650.896 13.242.005 12.406.461 I.1.1. Earnings from clients 13.243.639 12.338.557 13.054.787 12.098.395 I.1.2. Other earnings 193.919 312.339 187.218 308.066 I.2. Report period payouts (13.440.727) (11.944.279) (13.339.691) (11.776.867) I.2.1. Payouts to suppliers of products, raw materials and services(including VAT) (10.689.584) (9.317.564) (12.593.236) (11.238.265) I.2.2. Monetary payouts related to work relations (2.466.942) (2.411.459) (547.024) (435.776) I.2.3. Taxes paid to budget (84.827) (88.167) (22.302) 0 I.2.4. Other payouts (199.374) (127.089) (177.129) (102.826) Cash circulation of primary activity (3.169) 706.617 (97.686) 629.594 II. Currency circulation of investment activity II.1. Procurement of long-term assets (excluding investments) (140.769) (84.830) (41.914) (21.563) II.2. Transfer of long-term assets (excluding investments) 1.800 0 1.800 0 II.3. Procurement of long-term investments 0 0 0 0 II.4. Procurement of short-term investments 0 0 0 0 II.5. Transfer of short-term investments 0 0 0 0 II.6. Transfer of long-term investments 0 0 0 0 II.7. Provision of loans (250.000) (986.156) (250.000) (984.708) II.8. Return of loans 173.721 493.010 173.721 493.010 II.9. Received dividends 0 0 0 0 II.10. Interest received for loans granted and investment 0 0 0 0 II.11. Other currency circulation increases of investment activities 0 0 0 0 II.12. Other currency circulation decreases of investment activities 0 0 0 0 Cash circulation of investment activity (215.248) (577.976) (116.393) (513.261) III. Currency circulation of financial activity III.1. Currency circulation related to company owners 0 0 0 0 III.1.1. Emission of shares 0 0 0 0 III.1.2. Owners' contributions to loss reimbursements 0 0 0 0 III.1.3. Procurement of own shares 0 0 0 0 III.1.4. Payout of dividends 0 0 0 0 III.2. Currency circulation related to other financial sources (966) (2.140) (966) (2.144) III.2.1. Increase of financial debts 77.949 0 77.949 0 III.2.1.1. Receipt of loans from credit institutions 77.949 0 77.949 0 III.2.1.2. Receipt of loans from associated and third parties 0 0 0 0 III.2.1.3. Emission of bonds 0 0 0 0 III.2.2. Reduction of financial debts (79.007) (2.169) (79.007) (2.168) III.2.2.1. Return of loans to credit institutions (77.949) 0 (77.949) 0 III.2.2.2. Return of loans to associated and third parties 0 0 0 0 III.2.2.3. Procurement of bonds 0 0 0 0 III.2.2.4. Interest paid (1.058) (2.169) (1.058) (2.168) III.2.2.5. Leasing (financial rent) payments 0 0 0 0 III.2.3. Interests received for bank accounts 92 29 92 24 III.2.4. Increase of company's other liabilities 0 0 0 0 III.2.5. Reduction of company's other liabilities 0 0 0 0 III.3. Other increases of currency circulation of financial activity 1.039 25 1.039 25 III.4. Other reductions of currency circulation of financial activity (1.610) (2.524) (1.450) (2.263) Cash circulation of financial activity (1.537) (4.639) (1.377) (4.382) IV. Impact of currency exchange rates to cash and equivalent currency remainder 2.526 4.038 2.526 4.035 V. Net currency circulation increase (reduction) (217.428) 128.040 (212.930) 115.986 VI. Currency and currency equivalents at the beginning of the period 2.7. 554.414 426.374 537.733 421.747 VII. Currency and currency equivalents at the end of the period 2.7. 336.986 554.414 324.803 537.733

Chief accountant – chief of section of accounting and analysis Daiva Minkevičienė

Director Ramūnas Lenčiauskas

Limited Liability Company Linas

Corporate identification 147689083 S. Kerbedzio Street 23, Panevezys

CONFIRMED by General shareholders' meeting Of 19 May, 2016 Act no. 2

Financial statements formation date – 17 03 2016

EXPLANATORY MEMORANDUM

TO THE YEAR 2015 FINANCIAL STATEMENTS

31 December, 2015

Beginning of accounting period 2015 01 01 End of accounting period 2015 12 31

I. GENERAL

1. The Linas company was launched in 1957. A public limited company Linas (further called the Company) was registered on 8 March, 1993. Company is registered in Juridical body register, the number of registration is 003429, registration code 147689083. Address: S.Kerbedzio Street 23, Panevezys; LT-35114. Telephone (370-45) 506100, fax (370-45) 506345. E-mail address: office@linas.lt; web page: www.linas.lt . The Company carries on it's activity in accordance with the Law on Limited Companies of Lithuania, and other relevant legislation active in the Republic of Lithuania.

As of 31st of December, 2015, the Linas AB group of companies (further called as the Group) consisted of holding company Linas AB and it's affiliated company UAB Lino apdaila. UAB Lino apdaila was registered on May 23, 2008 at Legal entity register, registration No.114552, company code 301733421. Affiliated company is registered at address S. Kerbedzio Street 23, Panevėzys. AB Linas own 100 % of affiliated company shares.

2. The Group's financial year starts on January 1st, and ends on December 31st.

3. The Company and its affiliated company do not have subsidiaries and representatives.

4. Since January 1, 2015 the currency of financial statements of AB "Linas" group of companies is EUR.

5. According to Lithuanian Republic law of Eur establishment in Lithuanian Republic and acc.to Lithuanian Republic joint stock companies and closed joint stock companies authorized capital, and securities nominal value expression in Eur, and these companies regulations change order law, during the repeated ordinary general meeting of shareholders dated May 19, 2015, the shareholders of the Company confirmed that the Company's nominal value of one share is equal to 0,29 Eur, the Company's authorized capital is equal to 6.971.307,10 Eur. Changed regulations of the Company dated June 9, 2015 are registered in the juridical person register.

6. Authorized capital of AB "Linas" is 6.971.307,10 Eur. It is divided into 24.038.990 denominative equity shares the nominal value of which is 0,29 Eur, there are no issued and not paid shares. The Company's authorized capital article sum was expressed in Lt and recalculated into Eur, the nominal value of shares was recalculated. The appeared differences are recognized as financial and investment activity expenditures of accounting period which includes the date of EUR establishment.

The shares of Linas AB are included into the current sales list of AB NASDAQ OMX Vilnius.

7. On 2015 the average number of listed employees of the Company was 49, on year 2014 – 45 employees. On 2015 the average number of listed employees of the Group was 284, on year 2014 – 317 employees.

8. The main Group activity is production of textile products and selling of it. AB Linas activity is sales of linen textile items; other activity of the company – management of financial asset (shares and lend loans), supply of thermal energy. Activity of UAB Lino apdaila is production of linen textile products.

Linas AB group of companies presents to the customer all linen yarn dyeing, weaving, finishing and sewing services from the linen yarn preparation for weaving to final product presentation.

Following the notice of UAB "Verslo dizainas" (company code 302529076) regarding the uniletaral contract of equipment rent termination from October 8, 2015, on August 28, 2015 the Board of AB "Linas" decided not to continue fabrics production in AB "Linas group of companies and to develop the creation of textile items, sewing and sales services. All the fabrics which are necessary to execute AB "Linas" group of companies activities will be obtained from outside partners.

From October, 2015 the main activity of UAB "Lino apdaila" is the supply of textile production services, i.e. textile production sewing services. Fabrics production activity is not executed, i.e. textiles production weaving, finishing, linen yarns dyeing services. Working places of weaving and finishing workers are kept and moved to the company UAB "Lino dizainas" (address J.Janonio str. 30, Panevezys, LT-35289, company code 304093122) with all social guarantees for the workers.

From September 18, 2015 Lina Mikelioniene starts to work as the director of UAB "Lino apdaila" and changes previous director Nijole Sventickiene.

9. During 2015 the Group was produced and technologicaly processed: linen and tow yarns – 55 tons (during 2014 – 62 tons); raw fabrics – 547 thousand mtrs (the result of the same period of 2014 – 745 thousand mtrs); ready made fabrics – 1.445 thousand mtrs (the result of the same period of 2014 – 1.981 thousand mtrs). 38,7 % of all produced fabrics were used for sewn items during 2015 (2014 – 38,8 %).

Linen textile items are ecological. It is the product which does not leave waste and does not make harm to nature and ecology. Group has been working according to universally accepted quality requirements which correspond to OEKO-TEX 100 standards.

10. During year 2015 Group export (outside Lithuania) volumes made 87,7 % of the total product sales. The breakdown of the sales by country is as follows: Spain – 18,4 %, Sweden – 15,9 %, Lithuania – 12,3 %, Finland - 9,5 %, Belgium – 6,5 %, Japan – 5,6 %, France – 5,3 %, Great Britain – 5,1 %, USA – 4,7 %, Germany – 3,2 %, Latvia – 2,9 %, Estonia – 2,4 %, Denmark – 1,7 %, other countries – 6,5 %.

11. On 2015 the main incomes of group of companies were received from the activity of textile goods production and sales. During 2015 Linas, AB group of companies sold linen textile goods and services for 12.722 thousand Eur. Comparing to 2014 the volume of sales increased by 698 thousand Eur or 5,8 percent.

New linen textile items or their collections of AB "Linas" Group of companies are created in regard of tendencies of coming season, stylistic trends, innovations of fashion and technologies. AB "Linas" Group of companies produces and supplies linen textile items for the customers who evaluate natural and modern combination, high quality of products, flexibility, production acc.to the individual orders, execution speed of orders.

The Group has branded textile products shops: shop "Gija", address S.Kerbedzio str.23, Panevezys and online shop www.linodovanos.lt .

During 2015 the Group's typical activity result was 773 thousand Eur profit and the result of year 2014 was 1.130 thousand Eur profit.

2015 year results of typical activity of the Group were influenced by price increase for raw materials and the increase of minimum wage. Production services of linen textile products of year 2015 decreased regarding the partial change of activity of UAB "Lino apdaila".

12. UAB "Audito sprendimai", company code 220258280 performed the audit of financial statements of the company of year 2015 and the audit of consolidated financial statements and annual report of Group of companies of year 2015. During 2015 it was calculated 4.489,11 Eur costs for the supplied services of company UAB "Audito sprendimai". During the financial year it was calculated 2.143,19 Eur costs for the audit of financial statements of year 2015 and for the audit of annual report of year 2015 of company UAB "Lino apdaila".

13. The data provided in the annual financial statements is based on the listing of the assets held by the Group, and the Group's liabilities inventory.

14. Data presented in annual financial statements and explanatory memorandum are corresponding International Financial Accountability Standards which are accepted to apply in European Union (there are no deviation from international standards).

15. Management of risk

Following risks are typical for companies' activities in the economical markets: market risk, credit risk and liquidity risk.

The management of the Group gives a lot of attention to manage those risks. Below there is presented information about the management of typical risks of AB "Linas" Group.

Credit risk

Credit risk is connected with the factors that Group of companies and the Company will incur financial losses if the customer or other party will not execute liabilities and which is mostly related to receivable sums from the customers.

Group of companies and the Company is controlling credit risk applying credit conditions and doing the analyses procedures of the market. All the buyers of textile items and services, except small Lithuanian buyers, are insured in order to avoid higher losses because of the customer's insolvency. Safe payment settlement forms are used for not insured customers: L/C, prepayments and so on. The sales are allotted for different customers.

The analysis of the received sums of the Group and the Company from the customers for the periods of December 31, 2015 and December 31, 2014:

Sums received from Sums received from the customers, which are delayed,

	the customers,			Eur		Totally, Eur
	which are not delayed, Eur	Less than 30 days	30-90 days	90-180 days	More than 180 days
Group
2015 y.	1.745.345	244.039	34.166	2.242	7.437	2.033.229
2014 y.	1.484.465	211.583	68.991	1.287	3.103	1.769.429
Company
2015 y.	1.640.208	136.621	20.562	2.242	7.437	1.807.070
2014 y.	1.477.420	209.225	68.626	1.287	2.599	1.759.157

Acc.to the data of December 31, 2015, 136 customers were in debt to the Group, 78,5 % of debt sums are insured with credit insurance (95,0 % acc.to the data of December 31, 2014). Maximum available losses of balance value because of the risk in relation with the received sums from the customers are insignificant 0,1 %. On the accounting day there are no signs from the received sums the payable terms of which are delayed that the customers will not execute their financial liabilities.

Possible credit risk, which appears between the other financial property (made of other receivable sums) of the Group and the Company, is raised because of customer's liabilities noncompliance and is equal to balance value. Companies guarantee for presented loans by property mortgage, guarantees and sponsorship to manage this risk. By preparing the financial statements Group's companies determine whether there is any objective assumptions that value of financial assets may be impaired. On 31 December 2015 there were included financial assets depreciation amounts 176 thousand Eur, and the remaining value of guarantees presented with the property is enough to cover the debts

In the note 4.23 of Explanatory letter it is presented information about Group's and Company's rights and obligations, not stated in the statement of financial position of December 31, 2015 and December 31, 2014.

Liquidity risk

Liquidity risk is related to the factors that Group or Company will not be able to execute its financial liabilities on terms. Liquidity management aim of Group of companies and Company's is to ensure as well as possible enough liquidity of Group of companies during common and complicated conditions, not having losses and to risking to loose own good name.

Data of relative financial indicators of AB "Linas" Group of companies:

General solvency indicator of the AB "Linas" Group of companies is of high level, had positive (increase) tendencies in comparison with year 2014. On year 2015 this indicator – 4,03 and on year 2014 was 3,45 (recommended value 1,2 – 2). So it could be assumed that the Group will not have payment execution (solvency) problems in the nearest future. This proves also positive net circulating capital the indicator of which made 4.836.427 Eur (recommended level over 0). It had positive alteration tendencies (on year 2014 it was 4.141.208 Eur).

High-speed solvency indicator also had the positive alteration tendencies on accounting year. Indicator amounts 1,96 (on year 2014 the indicator was 1,72). The recommended level is 1.

General debt coefficient is of good level, insignificantly improved in comparison with 2014. On 31 December 2015 the indicator makes 0,20 (on year 2014 it was – 0,23). The indicator doesn't exceed recommended value (recommended is up to 0,5). The indicator shows that on accountable year for one asset Euro there is 0,20 Eur of taken liabilities and payable sums (i.e. what part of Group asset is obtained for lent finance).

On accountable year the capital/liabilities indicator is of high value, had improvement tendencies in comparison with year 2014. The indicator level on year 2015 is 3,94 (on year 2014 this indicator was 3,42). It shows how many of own capital attributed to one Eur of taken liabilities (recommended level is from 0,7).

On 2015 activity of the Company, Group of companies is profitable, financial state is quite stable, indicators of the solvency, debts are of good level, had the positive alteration tendencies, the working capital indicator is positive.

So it is possible to make assumption that Group of companies would not meet serious activity succession problem in nearest future.

In the note 4.14 of Explanatory letter it is presented information about Group's and Company's financial liabilities of December 31, 2015 and December 31, 2014 acc.to the refund terms.

AB "Linas" has the account lending contract with the bank acc.to which 145 thousand Eur credit sum is lent to the Company. Acc.to the financial obligations limit contract signed between the bank and AB "Linas", the credit sum of 290 thousand EUR is granted to the Company. There are no remainder of the financial debts for credit institutions, leasing (financial rent) liabilities in the statement of financial position of the Group and the Company of year 2015. The Group and the Company haven't the signed contracts with the banks to use factorings. The debts for credit institutions returning terms are indicated in the note 4.14 of the Explanatory letter.

Risk norm of interest

The Group and the Company have financial obligations, so the fluctuation of risk norm makes influence on the size of executed short-term and long-term obligations and on the financial status. Acc.to the obligation contracts for the credit companies and leasing (financial rent) of the Group and the Company, the changeable interest norm is calculated as EURIBOR of the particular period adding the margin of creditor. During year 2015 it was calculated 1,1 thousand Eur (on year 2014 – 2 thousand Eur) interest for financial obligations. The risk of interest norm isn't meant as significant for the activity of Group of companies.

Risk of foreign exchange

For international transactions the Group faces the risk of foreign exchange range because of sales and buying sums which are accounting in different currency than EUR. Risk of foreign exchange range is meant as not significant for Group of companies activity because EUR is dominating in financial operations.

Economical and political risk

• the increase of Asian countries textile items supply and damping.
• market supply periodic of linen products.
• seasonally: smaller demand in winter.
• price increase for raw materials, materials, complement details.
• price increase for energetic resources and transport.

Geographical situation of Lithuania gives the advantage against the producers of the third countries – geographical and cultural closeness to EU market. Group of companies and the Company quickly reacting to seasonal customers requirements and changeable fashion tendencies. Group is trying to apply produced items to individual customers requirements, to use advantages of export possibilities offering customers small shipment lots and quicker delivery. The Group is successfully developing long-lived textile traditions. Production of the Group is acknowledged as distinctive, attractive with the creativity and quality. Group of companies and the Company is developing and improving marketing and production spheres, constantly projects are implemented to create new assortment, improve quality and decrease costs.

Technical-technological risk

• not inconsiderable part of used equipment are old, require investment to repair and maintenance;
• there is a lack of modern technological equipment.

The Group and the Company are constantly investing with own resources and capabilities into the obtaining and renovation of progressive technological equipment in order to increase efficiency and productivity.

LINAS, AB consolidated and Company's annual financial statements for the year 2015 16 II. ACCOUNTING POLICY

1. Regulations the financial statements have been based upon

The Group executes accounting and prepares financial statements in accordance with the legal provisions of bookkeeping and accounting, and financial reporting of the Republic of Lithuania, as well as other relevant provisions, including International Financial Reporting Standards (IFRS) which are accepted to apply in European Union (EU).

The Group and the Company haven't applied these standards and interpretations that have been issued but are not yet effective:

Annual Improvements to IFRS 2010-2012 Cycle (effective for annual periods beginning on or after 1 February 2015).

Amendments to IAS 19 Employee Benefits – Defined Benefit Plans: Employee Contributions (effective for annual periods beginning on or after 1 February 2015).

Amendments to IAS 16 Property, Plant and Equipment and IAS 41 Agriculture entitled Agriculture: Bearer Plants (effective for annual periods beginning on or after 1 January 2016).

Amendments to IFRS 11 Joint Arrangements entitled Accounting for Acquisitions of Interests in Joint Operations (effective for annual periods beginning on or after 1 January 2016).

Amendments to IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets entitled Clarification of Acceptable Methods of Depreciation and Amortisation (effective for annual periods beginning on or after 1 January 2016).

Annual Improvements to IFRS 2012-2014 Cycle (effective for annual periods beginning on or after 1 January 2016).

Amendments to IAS 27 Separate Financial Statements entitled Equity Method in Separate Financial Statements (effective for annual periods beginning on or after 1 January 2016).

Amendments to IAS 1 Presentation of Financial Statements entitled Disclosure Initiative (effective for annual periods beginning on or after 1 January 2016).

IFRS 9 Financial Instruments: Classification and Measurement (effective for annual periods beginning on or after 1 January 2018).

Amendments to IFRS 10, IFRS 12 and IAS 28 - Investment Entities: Applying the consolidation exception (effective for annual periods beginning on or after 1 January 2016).

Amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (approval was postponed indefinitely).

IFRS 14 Regulatory Deferral Accounts (effective for annual periods beginning on or after 1 January 2016).

IFRS 15 Revenue from Contracts with Customers (effective for annual periods beginning on or after 1 January 2018).

IFRS 16 Leases (effective for annual periods beginning on or after 1 January 2019).

The Group and the Company don't expect these standards and interpretations that have been issued but are not yet effective to have any material effect on the financial statements of the Group and the Company.

In the Group and the Company these standards and interpretations that have been issued but are not yet effective, will be adopted on the date they become effective and adopted by the EU.

2. Accounting policy

The Company, the Group of companies has accounting policy, confirmed by the administration head and corresponding to the regulations of International Financial accounting standards, in which there are indicated rules of company profit, own capital and liabilities evaluation, incomes and cost acknowledge and registration in the accounting, acc.to which the financial reports are prepared.

2.1. Group's accounting

2.1.1. For the purpose of financial reporting, a daughter company is an enterprise in which the Group, either directly, or indirectly has a control, in a form of private ownership or otherwise, of a block of shares representing more than a half of the total votes in that enterprise.

2.1.2. The daughter companies are included in the consolidated financial reporting since the date the Group acquires control over the daughter company, while consolidation in respect of a daughter company ceases since it is no longer controlled by the Group. Any deals between the Group's companies, outstanding balances and any outstanding profit (loss) resulting from the deals between the Group's companies, is to be eliminated.

2.1.3. AB "Linas" Group of companies applies the equal accounting policy to all significant events. There are no significant differences of accounting policy regarding which the financial report of the Group of companies should be reorganized.

2.2. Long-term intangible assets accounting

2.2.1. Any non-tangible asset which is employed in the activity of the Group's enterprises for longer than a year, shall be recorded as intangible property in the financial accounts provided it meets the following recognition criteria: a) the Group's enterprises are reasonably expected to generate future economic benefits on the basis of the said asset; b) the acquisition (production) cost of the asset is readily identifiable and separable from the value of the remaining assets; c) the Group's enterprises have control of the asset or are in a position to restrict other persons' access to disposal of the asset.

2.2.2. The Group has set across it's companies a threshold of minimum acquisition (production) cost for intangible assets 900 euro, upon surpassing of which the asset is to be classified as long-term intangible property.

2.2.3. Long-term intangible assets are shown on the financial statements at their residual value to be estimated by subtracting accrued depreciation form the acquisition value.

2.2.4. Depreciation of long-term intangible assets is performed by applying a depreciation rate set by the Group. The linear depreciation technique is applied. Depreciation of intangible assets starts counting since the first day of the next calendar month since the commencement of the use of the asset in the company's business. Depreciation ceases counting since the first day of the next month since the writing-off of the asset, or since the date of the sale, as the case may be.

2.2.5. The liquidation value of long-term intangible assets is set at 0,29 euro.

2.2.6. The cost of operation of long-term intangible assets is attributed to the cost falling within the reporting period during which the cost was incurred.

2.2.7. The Group's companies have no long-term intangible assets subject to legal or contractual restrictions for it's disposal.

2.2.8. The Group has no mortgages of long-term intangible assets to secure it's liabilities.

2.2.9. All the advance payments for long-term intangible assets have been recorded on a single intangible assets account, irrespective of the kind of the asset paid for.

2.2.10. Additional information concerning long-term intangible assets of the Group and the Company has been disclosed in notes 4.1. and 4.3. of the Memorandum.

2.3. Long-term tangibles accounting

2.3.1. Tangible assets purchased by the Group's companies are classified as long-term assets subject to meeting all the following criteria: a) the asset is to be used for more than one year; b) the asset is reasonably expected to serve as a basis for generating economic benefits over future accounting periods; c) it is possible to reliably identify the cost of acquisition (production) of the asset; d) the cost of acquisition (production) of the asset is at least equal to the minimum

acquisition cost for long-term assets, i.e. of 900 euro, applied across the company; e) the company has taken all the risks related to the subject tangible asset.

2.3.2. Long-term tangible assets are recorded for accounting purposes at their actual acquisition (production) cost.

2.3.3. Advance payments for long-term tangible assets shall be recorded on a single tangible assets account, irrespective of the kind of the asset.

2.3.4. The Group's companies apply acquisition cost technique for accounting of all the longterm tangible assets. In accordance with the acquisition cost technique, the assets, either acquired or produced, are recorded in the accounting at the cost of acquisition, and shown in the financial statements at residual value, to be estimated by subtracting from the acquisition cost the accrued depreciation and any reduction in value due to discounting in price.

2.3.5. Depreciation of long-term tangible assets is calculated on a yearly basis by applying a depreciation rate, which are indicated paying attention to the useful time of property's servicing, to the planned intensity of property's usage, to the surrounding of it's usage, foreseen property's liquidity value and other factors. It is indicated the liquidity (retain) value of long-term tangible asset 0,29 euro.

2.3.6. Depreciation of long-term tangible assets is calculated in the Group using linear depreciation technique. Depreciation of tangible assets starts counting since the first day of the next calendar month since the commencement of the use of the asset in the business. Depreciation ceases counting since the first day of the next month since the writing-off of the asset, or it's disposal, when the property is not used any more or since the entire value of the asset (minus liquidation value) is assigned to the cost.

2.3.7. Any disposal of long-term tangible assets by the Group's companies shall be registered showing the profit or loss occurring from such transaction. The outcome is obtained by subtracting from the sale revenues of the asset it's liquidation value and the cost related to the transaction. Transfer profit or loss of long-term asset, except financial, is attributed to not typical, i.e. other activity incomes or costs.

2.3.8. Mortgages of long-term tangible assets and long-term tangible assets rented from third parties are accounted using class 0 bookkeeping accounts.

2.3.9. The Group's companies have no long-term tangible assets subject to depreciation over a more than 20 years period, or any tangible assets subject to legal or contractual restrictions for it's disposal.

2.3.10. The Group has no mortgages of long-term tangible assets to secure it's liabilities.

2.3.11. More information on long-term tangible assets has been disclosed in notes 4.2.; 4.3. to the Memorandum.

2.4. Accounting of financial assets and other long-term property

2.4.1. The Group classifies it's financial assets as long-term and short-term assets.

2.4.2. Long-term financial assets comprise investments in daughter and associated companies, investments in other companies' shares, long-term loans issued by the Group to it's employees, long-term loans issued to third parties, and any other amounts due to be received after one year. Short-term financial assets comprise short-term investments in other companies' shares, investments in other securities, and short-term loans and part of current year of provided long-term loans.

2.4.3. Financial assets are valued at the cost price of acquisition and shown in the financial statements applying method of obtaining price cost, by subtracting depreciation (impairment loss).

2.4.4. Group's companies are applying direct method of determining doubtful debts to value doubtful debts. By preparing the financial statements Group's companies determine whether there is any objective assumptions that value of financial assets may be impaired. If these assumptions exist, the expected recoverable amount of the assets is calculated and carrying amount is reduced, recognizing the impairment loss (depreciation). After recognizing of doubtful debts, amounts of financial assets depreciation are increasing costs of financial and investment activities.

2.4.5. More information related to financial assets is disclosed in notes 4.4. of the Memorandum.

2.5. Stocks accounting

2.5.1 Stocks comprise short-term assets, such as raw materials, supplies, production in progress, finished products, and purchased commodities intended for resale, which are consumed by the Company for earning revenues over one year. Any tangible assets, used in the activities of the Group's companies, with a unit value under the minimum threshold value set by the Group for long-term tangible assets is classified as a short-term stocks asset.

2.5.2. The Group performs valuation of stocks in accordance with FIFO technique, i.e. those stocks that were acquired earliest are assumed to be the ones sold or consumed first (first in first out).

2.5.3. The stocks of the Group (except of production in progress) are accounted in accordance with continued stocks accounting method, each occasion of acquisition (production) and sale (consumption) of stocks being recorded in the accounting. Unfinished production is accounted on monthly basis.

2.5.4. Stocks are recorded in the accounting on the basis of valuation at acquisition cost, while in financial statements stocks are reported at the lower of acquisition (production) cost and net potential sale value.

2.5.5. The Group has chosen to calculate cost price with the method of rest losses and the cost price is not calculated for secondary cost price.

2.5.6. Direct and indirect expenses make production cost price in the Group. Direct production costs – expenses for main raw materials (materials), complemented items, technology energy and direct wage. Indirect production expenses – not related directly with production but making the conditions to work production, expenses, which impossible to attribute directly to concrete items of their groups.

2.5.7. The cost price of semi manufactures and produced production pieces is indicated by attributing raw material expenses for items in proportion to the raw materials usage norms indicated by the Group, attributing other direct and indirect production expenses for items in proportion to indicated normative by the Group.

2.5.8. The stocks are discounted to the potential net sale value by individually valuing each item of the stocks or each group of similar stocks. Assessing the net potential sale value takes account of the purpose for which the subject stock is being stored. Raw materials and other supplies stored for the purpose of product manufacturing shall not be discounted below their cost of acquisition, provided the products to be produced using the subject stocks are expected to sell at the cost of manufacturing at least, or a higher price, except when there is surplus of raw materials or other supplies in the Group. The loss incurred by discounting all the stocks to net potential sale value as well as any other loss of stock shall be recognised as an item of operational cost incurred during the period such loss occurred. Any reversion to the discounting of the stocks, undertaken due to the growth in the net potential sale value shall be accounted by making a relevant reduction of the operational cost of the period.

2.5.9. The information on the stocks of the Group and the Company is disclosed in note 4.5. of the Memorandum.

2.5.10. The information on the advance payments made by the Group and the Company for short-term assets and services is disclosed in note 4.6. of the Memorandum.

2. 6. Accounting of receivable amounts

2.6.1. One year receivables comprise the entitlements to receive amounts of moneys or equivalent financial assets from third parties. Specifically, this is due amounts for products sold,

services rendered or short-term loans issued, interests receivable for granted loans, advance payments for financial assets due, as well as other kinds of debt contracted to the Company.

2.6.2. Advance payments for non-financial assets (such as long-term tangible assets, intangible assets, inventories, etc.) are not considered receivable amounts.

2.6.3. One year receivables are recorded for accounting purpose at the acquisition cost representing the value of the remuneration due.

2.6.4. Receivable amounts are shown at net value in the annual financial statements, i.e. by subtracting the share of bad debt. The cost of bad debt is registered as an item operational cost and is included in the statement of profit or loss and other comprehensive income of the reporting period.

2.6.5. The Group applies direct assessment technique for evaluation of bad debt costs. Any debt due those debts which repayment becomes doubted is moved to the bookkeeping account of supervised debt. Any receivable amount becomes a bad debt on the basis of receipt of reliable information concerning it's repayment insecurity.

2.6.6. Notes 4.7.; 4.8. of the Memorandum reveal the information on the one year receivables and bad debts of the Group and the Company.

2.7. Accounting of other short-term and monetary assets

2.7.1. Financial assets of the Group comprise moneys in Euro and foreign currency in cash desk and on current bank accounts, and financial assets equivalent to moneys, i.e. short term investments, bonds, termed deposits, etc. whose maturity is shorter than 3 months. The Group had no moneys-equivalent financial assets as of the end of the financial year.

2.7.2. Miscellaneous short term assets comprise short term investments in shares and other securities, short-termed deposits (over 3 months) and other property which is not included into articles of other current asset.

2.8. Accounting of own capital stock

2.8.1. Own capital stock comprises the share of the authorised capital which has been subscribed, the mandatory reserve stock, and undistributed profit (loss). The information on the authorised capital of the Company is disclosed in note 4.10.

2.8.2. The Company has no it's own shares purchased by itself. AB "Linas" subsidiary company doesn't have shares of the Company.

2.8.3. The information on the reserves is provided in note 4.11. of the Memorandum.

2.8.4. Pursuant to the accounting policy adopted by the Group, long term tangible assets and financial assets are recorded for accounting purpose and shown in financial statements at the value of acquisition, therefore no revaluation account is used.

2.8.5. Draft profit (loss) distribution prepared by the AB Linas management is provided in note 4.12. of the Memorandum.

2.8.6. The profit distribution approved by the shareholders meeting is included in the financial statements of the period during which the shareholders' approving decision was passed concerning the profit distribution, irrespective of the time when the profit was actually earned.

2.9. Accounting of grants and subsidies

2.9.1. The grant (subsidy) is accepted if it is reasonable guaranteed that the Group corresponds to the grant (subsidy) providing conditions and when there are evidences that grant (subsidy) will be provided.

2.9.2. The accounting of grants (subsidies) is managed acc.to accumulation principle, i.e. the subsidy (grant) or it's part is recognised as having been spent in the accounting period during which the costs related to the subsidy (grant) are incurred. The balance of the amount of the

subsidy (grant) is shown on the statement of financial position.

2.9.3. Grants (subsidies) are shown as an incomes method in the accounting. Grants, in the connection with incomes, are provided to compensate expenditures and non-receivable incomes; also all other grants which are not attributed to the grants in connection with property.

2.9.4. Grants (subsidies), received in the Group to compensate incurred expenditures, are accepted of such used part in the accounting, of how many expenditures were incurred to compensate it and with the same part decreasing the sum of recoverable expenditures article of statement of profit or loss and other comprehensive income.

2.9.5. Note 4.13. of the Memorandum to the financial statements provides information on the subsidies (grants) received (receivable) by the Group / the Company.

2.10. Liabilities accounting

2.10.1. Financial accounting of the Group records current liabilities, i.e. those liabilities acquired by the Group's companies, subject to fulfilment by the Group.

2.10.2. The liabilities are classified on the basis of their fulfilment requirements, i.e. longterm liabilities representing such liabilities which are due to be fulfilled by the Group's companies within a period exceeding one year, and short-term liabilities, representing those liabilities to be fulfilled within an ordinary cycle of business activity, i.e. twelve months.

2.10.3. The liabilities are assessed on the basis of their cost of acquisition, representing an amount of moneys, or an equivalent asset, to be paid at usual business circumstances.

2.10.4. Liabilities shall accrue on account of the paid leave earned by the employees of the Group's companies. The cost of paid leave shall accrue on a monthly basis. At the end of the current financial year, the amount of accrued leave payments shall be adjusted, by precisely calculating the amount of leave payments (including social insurance) earned by each employee over the financial year and not exhausted so far, as well as the balance of duration of leave not yet exhausted by each employee. The sum is not calculated because of sums triviality to Guarantee fund from the pays of accumulative holiday pays. The information on the amounts of paid leave payments, accrued as liabilities to the Group and it's companies, is provided in note 4.15. of the Memorandum.

2.10.5. AB "Linas" group of companies has no financial year debts which are guaranteed by the government or third persons with bonded property.

2.10.6. When making annual financial statements the sums paid by the customers as prepayment are transferred to the contrary liabilities account, which are longer than a year or when the signs appeare that they (or their part) could not be requested. Accordingly the decrease of liabilities is shown in the account of disputed debts in the expenditure of contrary account.

2.10.7. The information on short-term and long-term liabilities of the Group and the Company is provided in note 4.14. to the Memorandum.

2.11. Provisions

2.11.1. Provisions are accepted if they are determined by the past events and if they are existing at the end date of financial statements accounting period.

2.11.2. The provisions sum shows what size of financial statements accounting period end date credibly evaluated expenses should cover legal liability or irrevocable commitment.

2.11.3. In group of companies the provisions are looked through when making financial statements and correcting their value paying attention to the new events and circumstances.

2.12. Income accounting

2.12.1. Incomes are recognised in line with the accruals principle, i.e. an income is recorded in the accounting at the moment it is earned, irrespective of when the money is actually received.

Upfront or similar advance payments are not recognised as income. Any revenues which are received over the reporting period, and are not recognised as income, are shown on the statement of financial position as liabilities. Income is assessed at it's true value.

2.12.2. Usual business income of the Group comprises the revenues generated by the sale of the products, i.e. fabrics, sewn items, yarn, combed-away remnants of yarn; by provision of production manufacturing services.

2.12.3. Income from usual business is recognised as earned income, is recorded in the accounting and shown in the financial statements at the moment the sales when production or production related services occurs, subject to availability of a reliable assessment of the amount of income.

2.12.4. Such incomes and expenses are attributed to incomes and expenses which could be attributed to this segment directly or by indicated attribution criteria. Expenses are not attributed to separate segments and are shown as general expenses of the company if it is impossible to attribute them to separate segments. Note 4.16. to the Memorandum provides information on the income and expenditure of the Group related to usual business, on the basis of division by geographical areas and branches of business.

2.12.5. It is impossible to attribute property and liabilities of the Group and AB "Linas" to abstracted segments. All property and liabilities of the Group and the Company are not allotted in values acc.to business and geographical segments.

2.12.6. Unusual income represents income generated by miscellaneous activities, i.e. income from sale of goods intended for resale, income from sale of surplus inventories, income from sale of unusual products or provision of unusual services, the profit from disposal of long-term assets (except of financial assets), as well as income from other kinds of atypical business activity and / or singular business transactions. Note 4.18. to the Memorandum provides information on the income and cost of unusual business undertakings.

2.12.7. Financial and investment business income comprises the interest on the moneys deposited with banks, any profits resulting from a change in foreign exchange rate, recognised forfeiture for delay of payments and other fines, the revenues of interests from provided loans, profit of investment transfer and other revenues related with financial property management. Note 4.19. to the Memorandum provides the information on the income and cost of financial and investment undertakings of the Group and the Company.

2.13. Costs accounting

2.13.1 Costs are defined as any decrease in economic benefits manifesting as a reduction in value of assets, or liabilities assumed during the reporting period. For the purpose of financial accounting, only that part of expenditure which is incurred in earning the income of the reporting period, or alternatively that part of expenditure which might not be related to earning of income of any of the forthcoming reporting periods, is recognised as the costs. Any expenditures falling within different accounting periods, are distributed to such accounting periods during which they generate economic benefits to the enterprise.

2.13.2. For the purpose of recording cost in the accounting, costs are recognised in line with accruals and comparison principles, within the reporting period during which the income, related to the subject expenditure, is earned, irrespective of the time when the moneys were actually expended.

2.13.3. Sales cost comprises the cost of products sold and the costs of provided production services.

2.13.4. Operational costs in the Group are classified as general costs and management costs. In the note No.4.17. of Explanatory Memorandum of financial statements there is presented information about activity's costs.

2.13.5. Unusual business cost comprises loss due to disposal of long-term assets, the cost of sale of products / services which are not attributed to usual business, as well as other miscellaneous

atypical business costs, and the costs of incidental or singular business transactions.

2.13.6. Financial and investment business costs comprise costs of bank interest, any fines and forfeitures due to delay in payment, the cost resulting from a negative change in foreign currency rate, investment transfer (deprivation) loss, costs of granted loans reappraisal, costs of financial services supply, other financial – investment activity costs.

2.14. Profit tax accounting

2.14.1. Payable profit tax of the reporting year is shown in the financial accounting at the moment the profit of the reporting year is calculated upon the end of the accounting period, not at the moment a liability is incurred on the basis of the outstanding tax on profit amount. The profit, in accordance with the provisions of calculation of the tax on profit, is adjusted with any costs which incur no reduction to the tax on profit, and any incomes which are not taxable or are taxable in addition to regular taxation procedure. The rate of the tax on profit is 15 per cent.

2.14.2. Advance profit tax is calculated in the Group according to the activity results of last year. Advance profit tax is declared according to the confirmed order of National Taxing Inspection by Finance Ministry and is paid according to the order indicated in the law of Profit tax.

2.14.3. The cost of the profit tax of the reporting year is calculated by adjusting the profit tax of the reporting year with the amount of any deferred profit taxes. Deferred tax on profit reflects the net taxation effect due to provisional differences between the value of assets and liabilities in the financial statements and the taxation statements. Deferred taxes, as an asset or a liability, are valued applying the taxation rate, which is expected to apply in respect of the period during which the subject property would be disposed of, or the liability discharged. The deferred profit tax, as an asset, is recognised on the financial statements to the extent it is expected to be discharged in the near future, based on the forecast of taxable profit. In case there is a part of deferred profit tax which is not going to be discharged, it is then not recognised in the financial statements.

2.14.4. The Group's profit tax costs and deferred profit taxes are shown in detail in notes 4.21.; 4.22. of the Memorandum.

2.15. Earnings per share

2.15.1.Usually the profit for one share is calculated dividing net profit (loss) of period in average of simple shares issued during the period. The Group hasn't potentially converting simple shares, so the decreased profit attributed to one share correspond the profit which is given for one simple share.

2.15.2.The information about the profit which is given for one share is presented in explanatory memorandum note 4.24.

2.16. Foreign exchange

Any transactions executed in a foreign currency are converted into Euro at the official exchange rate set by the Bank of Lithuania at the transaction date, which is roughly equal to market rate of exchange. Monetary assets and liabilities are converted into Euro at the exchange rate of the date of the financial statements. The financial statements as of 31 December, 2015, and 2014, is based on the following currency exchange rates:

2015	2014
1 USD = 0,9152 EUR	1 USD = 0,8221 EUR

Any profit / loss related to monetary transactions is recognised in the profit and loss statement covering the period during which the subject profit / loss occurred. Any profit / loss subject to converting, is accounted on the basis of the conversion rate valid at the end of the

reporting period.

2.17. Financial connections with heads of the company and other related persons

The number of heads of the Group and the Company, contracts format made with related persons, accountable sums and not paid remainders at the end of the periods calculated to the company heads and related persons during accountable period and during previous accountable period are explained acc.to its attribution in the note No.4.20 of the Explanatory letter. Other information in relation with contacts made with related persons are indicated in the note No.4.9 of the Explanatory letter.

3. Revisions to the accounting policy and corrections of essential mistakes

3.1. Preparing the financial statements of year 2015 in accordance with the International Financial Reporting Standards there were no any material changes of the accounting policy related to application of IFRS.

Since January 1, 2015 changing national currency Lt into Eur (1 EUR = 3,4528 LTL), the accounting data expressed in Lt on December 31, 2014 of AB "Linas" group of companies are recalculated into accounting data expressed in Eur and transferred to January 1, 2015.

Since January 1, 2015 the accounting evaluation of long-term intangible, tangible assets was changed in AB "Linas" group of companies. In the Group it was set minimal obtaining (producing) cost price of long-term intangible, tangible assets – 900 Eur, because of national currency Lt change into Eur (recalculation of values, round) and that is why the accounted data of long-term assets up to January 1, 2015 are not changed because of insignificant difference of minimal values.

3.2. Mistake is meant as essential, if: 1) it's sum is larger than 10% of appropriate balance part or the clause of statement of comprehensive income and 2)if it makes 2,5% of all property balance value or 0,5% of sales revenues sum indicated in financial accounting. If mistake is not reaching these indicators, then it is meant nonessential.

3.3. Preparing the financial statements for year 2015 not significant and substantial mistakes of previous year are corrected in perspective way.

4. Notes of Explanatory Memorandum

The notes regarding the significant financial indicators are presented in the tables of Explanatory letter:

4.1. The status of the long-term intangible assets of the Group and the Company, and their change over the reporting period (Tables 4.1. 'AB Linas Group of companies and AB Linas longterm intangible assets change').

4.2. The status of the long-term tangible assets of the Group and the Company, and their change over the reporting period (Tables 4.2.1 'AB Linas long-term tangible assets change'; 4.2.2 'AB Linas Group of companies long-term tangible assets change').

4.3. Additional information on the long-term tangible and the long-term intangible assets of the Group and the Company, i.e. adopted average rates of depreciation and amortisation of longterm assets according to the class of assets (Table 4.3.1 'Long-term tangible and intangible assets average economic life'); the obtaining (production) cost price of the assets which is amortized or deteriorated but still used in the activity (Table 4.3.2. 'Totally amortized or deteriorated long-term tangible and intangible assets which is still used') information about rented long-term tangible asset (table 4.3.3. 'The rent of long-term tangible asset').

The Company's and the Group's long-term property deterioration difference influence on the financial indicators is not significant, so it doesn't require indicators recalculation of long-term property and deterioration cost.

Regarding the uniletaral termination of premises rent contract with UAB "Rentija" (company code 300614019) from September 1, 2015 the complex of buildings and constructions, located in S.Kerbedzio str. 23, Panevezys city and where the activity of AB "Linas" group of companies is executed, was rented to BUAB "Nordic investicija" (company code 135442762).

The machines and equipment, devices, instruments which are used in the activity of AB "Linas" Group of companies, are rented from UAB "Verslo dizainas" (company code 302529076). From October, 2015 UAB "Lino apdaila" is renting equipment, devices, instruments which belongs to it acc.to the proprietary to UAB "Lino dizainas" (company code 304093122). All mentioned equipment will be used for linen textiles yarns dyeing, weaving and finishing production services.

4.4. Long-term financial assets and their change over the reporting period (Tables 4.4.1 'AB Linas Group of companies long-term financial assets change', and 4.4.2 'AB Linas long-term financial assets change').

On 31 December 2015 BUAB "Nordic investicija" (company code 135442762) financial debts to AB "Linas" amount to 726 thousand Eur. In 2015 set of financial statements were included BUAB "Nordic investicija" financial assets depreciation amounts - other long-term loans 176 thousand Eur.

4.5. Financial reports accounting period date gross value of the Group's and the Company's stocks, their value by type of stock, the value of the stocks recorded in the accounting at their net potential sale value, the amount of discounting to the net potential sale value, the amount of reversion of the discounting, the value of mortgaged stocks, and the stocks held with third parties (Tables 4.5.1 'AB Linas Group of companies stocks' and 4.5.2 'AB Linas stocks').

4.6. Advance payments by the Group and the Company to suppliers for short term assets and services (Table 'Advance payments for short term assets and services').

4.7. The Group's and the Company's one year receivable amounts by major groups of receivable amounts, their change compared to the previous financial year (Table 'One year receivable amounts').

4.8. The Group's and the Company's one year receivable amounts recognised as bad debt in the accounting, the cost of bad debt over the financial year, and recovered bad debt (Table 'Bad debt').

4.9. Long-term and short-term loans issued by the Group and the Company, including values, maturity terms, accrued interest (Tables 4.9.'AB Linas Group of companies and AB Linas loans issued').

4.10. The structure of the authorised capital stock of the Company, the number of shares and their par value; the numbers of shares held by the state, the municipality, the company (redeemed shares), and the number of Company shares and sums which belongs to subsidiary company, also Company's shareholders who have more than 5% shares. (Table 'AB Linas authorised capital structure and the main shareholders').

Average price of sale per share of the Company on the market in 2015 was 0,09 euro, and in 2014 average market sale price per share was 0,10 euro.

4.11. The information on the reserves of the Group and Company (Table 'Reserves of Linas, LLC enterprise group and Linas, LLC').

4.12. Draft distribution of the Company's profit (loss) (Table 'AB Linas draft profit (losses) distribution').

4.13. The subsidies (grants) received (or receivable) by the Group and the Company (Table 'Subsidies and grants').

The sum of 7 thousand EUR used for the Group's grants (subsidies) for the wages was received from Lithuanian Labour Exchange.

4.14. Short-term and long-term liabilities of the Group and the Company in accordance with the term of maturity, showing specifically those debt liabilities which are secured with company's assets (Table 'Short-term and long-term liabilities').

There are no remainder of the financial debts for credit institutions, leasing (financial rent)

liabilities of the Group and the Company of December 31, 2015 and December 31, 2014.

145 thousand Eur credit sum is granted to the Company acc.to the account lending contract which was signed between the bank and AB "Linas" on 2012 04 10. Company's reserves, the balancing value of which are 1.448 thousand Eur acc.to the mortgage sheets, are mortgaged for the credit sum. UAB "Lino apdaila" is guarantee for all credit sum and term to ensure credit sum. The validation term of account credit contract is till April 10, 2016. Alternate interests are paid for used credit, which are accounted as three months term euro EURIBOR plus bank margin.

Acc.to the financial obligations limit contract signed between the bank and AB "Linas" on 07 10 2013, the credit sum of 290 thousand Eur is granted to the Company, for which company resources are mortgaged with the latest mortgage, the balance value of which acc.to the mortgage sheets are 1.448 thousand Eur. For the insurance of credit sum the warranty for all credit sum and term is received from UAB "Lino apdaila". The validation term of the financial obligations limit contract is till October 07, 2016. Alternate interests are paid for used credit, which are accounted as six months term euro EURIBOR plus bank margin.

4.15. The Group's and the Company's accruals for employee vacations (Table 'Vacation accruals').

4.16. Typical business of the Group and Company.

The typical activity of the Group of companies is production of textile products and selling of it. Information about the sales of textile items, i.e. the segment of textile items production business and geographical segment, is indicated in tables 4.16.1. "Information of Linas, LLC enterprise group about segments of textile items production business", 4.16.2 "Information of Linas, LLC enterprise group about geographical segments of textile items production business", 4.16.3. "Information of Linas, LLC about segments of textile products business", 4.16.4. "Information of Linas, LLC about segments of textile products of geographical business".

In 2015 the incomes of UAB "Lino apdaila" for AB "Linas" production services were 4.458 thousand Eur (2014 y. - 5.162 thousand Eur), the cost price of presented services is 3.029 thousand Eur (2014 y. - 3.389 thousand Eur). In 2015 the incomes of UAB "Lino apdaila" for the presented production services to the third parties made 124 thousand Eur (2014 y. - 174 thousand Eur), the cost price for presented services is 62 thousand Eur (2014 y. - 95 thousand Eur). Acc.to the agreement dated December 18, 2015 UAB "Lino apdaila" has applied 9,0% discount from provided production services to AB "Linas" on year 2015. During 2015 UAB "Lino apdaila" sold production services to Lithuanian customers, realization to the EU countries is not of significant level.

It is impossible to attribute property and liabilities of the Group and AB "Linas" to abstracted segments. All property and liabilities of the Group and the Company are not allotted in values acc.to business and geographical segments.

4.17. The information on the operational costs of the Group and the Company (Table 'Operational costs').

During the accounting period incurred 0,6 thousand Eur activity expenditures are concerned to Eur establishment – reorganization of payment systems, premiums to employees' salaries. During years 2014 and 2015 the Group incurred totally 3 thousand Eur general administration expenditures in concern to Eur establishment, and included reorganization of payment systems, adjustment of computerized systems and data conversion, premiums to employees' salaries, bank services.

4.18. The information on the cost and revenues of miscellaneous ('atypical') activities of the Group and the Company (Table 'Miscellaneous ('atypical) activities').

4.19. Financial and investment undertakings of the Group and the Company, revenues and costs shown by material items (Table 'Financial and investment undertakings').

When recalculating accounting data expressed in Lt into Eur the appeared discrepancy sum of 167 Eur was recognized as financial and investment activity incomes of accounting period and the expenditures of financial and investment activity was recognized 9.219 Eur, from which 9.134 Eur expenditures appeared because of recalculation of Company shares nominal value expressed in

Lt into Eur and round and because of recalculation change of authorized capital value.

4.20. Information about financial connections with the heads of the Group and the Company and with the other related persons. (Table 'Financial relations to corporate executives and other related persons').

On 31 December 2015 BUAB "Nordic investicija", company code 135442762, registered office - Savanorių pr. 192, LT-44151 Kaunas, liabilities to AB "Linas" amount to 726 thousand Eur i.e. after one year receivable sums 4.336 thousand Eur and questionable debts 3.610 thousand Eur (depreciation sum of financial property of year 2013 – 1.869 thousand Eur and of year 2014 – 1.741 thousand Eur). In accordance with requirements of International Financial Reporting Standards and aiming to reflect the fair value of financial debts, in 2015 set of financial statements were included BUAB "Nordic investicija" 176 thousand Eur financial assets depreciation amounts, by writing off to Company's expenses of financial and investment activities. Financial assets depreciation amounts were determined in accordance with the precautionary principle and using pessimistic assessment of debt recovery risk factors. The remaining value of the property for sale is sufficient to cover referred the long-term receivables amounts.

Acc.to the funding contract dated November 19, 2014, UAB "Rivena", company code 302521510, address – P.Zadeikos str. 13-35, LT-06324 Vilnius and AB "Linas" agreed, that AB "Linas" is funding the project of real estate in the name of UAB "Rivena". On December 31, 2015 the debt of 1.171 thousand EUR and the interests of 39 thousand EUR for project funding of UAB "Rivena" are acknowledged as long-term receivable sums. Part of land is mortgaged to AB "Linas" for paid sum of project financing. The value of part of land acc.to mortgage papers is 1.593 thousand EUR.

On September 1, 2015 the loans subordinate contract is signed between the bank, AB "Linas' and UAB "Rivena (company code 302521510, address P.Zadeikos str. 13-35, Vilnius). According to this contract the rights of AB "Linas" and liabilities of UAB "Rivena" acc.to the loan contract are subordinated by bank rights, arising from the bank and UAB "Rivena" credit contract. The loans subordination contract is valid up to August 6, 2022.

On September 1, 2015 AB "Linas" presented the guarantee with the guarantee contact of 200 thousand EUR sum for the debtor UAB "Rivena", company code 302521510, address P.Zadeikos str. 13-35, Vilnius up to August 18, 2017.

4.21. The tax on profit due to be paid (Tables 4.21.1 'Specification of expenses of profit tax', 4.21.2 'Recalculation of expenses of profit taxes, according to regular and temporary difference of accounting and taxable profit').

4.22. Deferred profit taxes of the Group and the Company (Table 'Extended profit tax').

4.23. Material out-of-balance-sheet amounts, i.e. mortgages, guarantees, securities (Table 'Rights and obligations, not stated in the statement of financial position').

4.24. The profit (loss) which belongs to one share (table "Earnings (loss) per share")

4.25. There are significant events after the last accounting period in Group and Company.

On January 27, 2016 Saulius Sidlauskas has resigned from the post of AB "Linas" director and member of the Board. Ramunas Lenciauskas, AB "Linas" chairman of the Board , is started to

work as AB "Linas' director.

On February 10, 2016 BUAB "Domus Palanga" (company code 126234417) was unsubscribed from the register of juridical entity. In the set of financial reports of year 2014 the registered sums of financial assets devaluation of BUAB "Domus Palanga" are 224 thousand EUR.

						EUR
Indicators	Develop mental works	Prestige	Patents, licenses	Software	Other intangible assets	Total
Residual value at the end of previous
financial year			0	1.703	0	1.703
a) Procurement cost price of long term intangible assets
At the end of previous financial year			0	72.908	1.296	74.204
Changes of financial year			0	0	0	0
· Procurement of assets			0	0	0	0
· Written-off property because of the			0	0	0	0
accounting evaluation change (-) · Assets, transferred to other individuals and discarded (-)			0	0	0	0
· Transcription from one article to another +/(-)			0	0	0	0
At the end of financial year			0	72.908	1.296	74.204
b) Amortization
At the end of previous financial year			0	71.205	1.296	72.501
Changes of financial year			0	435	0	435
· Written-off property because of the accounting evaluation change (-)			0	0	0	0
· Financial year amortization			0	435	0	435
· Restorational records (-)			0	0	0	0
· Assets, transferred to other individuals and discarded (-)			0	0	0	0
· Transcription from one article to another +/(-)			0	0	0	0
At the end of financial year			0	71.640	1.296	72.936
e) Residual value at the end of financial year (a) - (b)			0	1.268	0	1.268

4.1.1. Changes of Linas, AB enterprise group and Linas, AB long-term intangible assets

LINAS, AB consolidated and Company's annual financial statements for the year 2015 29 4.2. LONG TERM TANGIBLE ASSETS

4.2.1. Changes of Linas, AB long-term tangible assets

								EUR
Indicators	Land	Buildings and structures	Machinery and equipment	Means of transport	Other equipment, appliances, instruments	Other tangible assets	Current constru ction	Total
Residual value at the end of previous	0	0	260.887	19.637	15.015	0	0	295.539
financial year
a) Procurement of cost price long
term tangible assets
At the end of previous financial year	0	0	650.677	137.928	34.845	0	0	823.450
Changes of financial year	0	0	0	33.890	3.092	0	0	36.982
· Procurement of assets	0	0	0	35.628	3.092	0	0	38.720
· Written-off property because of the	0	0	0	0	0	0	0	0
accounting evaluation change (-)
· Assets, transferred to other	0	0	0	(1.738)	0	0	0	(1.738)
individuals and discarded (-)
· Transcription to short-time	0	0	0	0	0	0	0	0
assets+/(-)
· Transcription from one article to	0	0	0	0	0	0	0	0
another +/(-)
At the end of financial year	0	0	650.677	171.818	37.937	0	0	860.432
b) Revaluation
At the end of previous financial year	0	0	0	0	0	0	0	0
Changes of financial year	0	0	0	0	0	0	0	0
· Increase (decrease) of value +/(-)	0	0	0	0	0	0	0	0
· Assets, transferred to other individuals and discarded (-)	0	0	0	0	0	0	0	0
· Transcription from one article to another +/(-)	0	0	0	0	0	0	0	0
At the end of financial year	0	0	0	0	0	0	0	0
c) Depreciation (-)
At the end of previous financial year	0	0	389.790	118.291	19.831	0	0	527.912
Changes of financial year	0	0	130.175	2.487	5.715	0	0	138.377
· Written-off property because of the accounting evaluation change (-)	0	0	0	0	0	0	0	0
· Financial year depreciation	0	0	130.175	4.043	5.715	0	0	139.933
· Restorational records (-)	0	0	0	0	0	0	0	0
· Assets, transferred to other
individuals and discarded (-)	0	0	0	(1.556)	0	0	0	(1.556)
· Transcription from one article to another +/(-)	0	0	0	0	0	0	0	0
At the end of financial year	0	0	519.965	120.778	25.546	0	0	666.289
d) Decrease of value
At the end of previous financial year	0	0	0	0	0	0	0	0
Changes of financial year	0	0	0	0	0	0	0	0
· Decrease of value of financial year	0	0	0	0	0	0	0	0
· Restorational records (-)	0	0	0	0	0	0	0	0
· Assets, transferred to other
individuals and discarded (-)	0	0	0	0	0	0	0	0
· Transcription from one article to another +/(-)	0	0	0	0	0	0	0	0
At the end of financial year	0	0	0	0	0	0	0	0
e) Residual value at the end of financial year (a) + (b) - (c) - (d)	0	0	130.712	51.040	12.391	0	0	194.143

LINAS, AB consolidated and Company's annual financial statements for the year 2015 30 4.2.2. Changes of Linas, AB enterprise group long-term tangible assets

								EUR
Indicators	Land	Buildings and structures	Machinery and equipment	Means of transport	Other equipment, appliances, instruments	Other tangible assets	Current construction	Total
Residual value at the end of previous financial year	0	3.254	466.257	27.205	20.701	0	0	517.417
a) Procurement of cost price long
term tangible assets
At the end of previous financial year	0	5.317	950.746	152.377	42.331	0		0 1.150.771
Changes of financial year	0	0	102.382	33.890	3.092	0	0	139.364
· Procurement of assets	0	0	102.382	35.628	3.092	0	0	141.102
· Written-off property because of the
accounting evaluation change (-)	0	0	0	0	0	0	0	0
· Assets, transferred to other
individuals and discarded (-)	0	0	0	(1.738)	0	0	0	(1.738)
· Transcription to short-time assets
+/(-)	0	0	0	0	0	0	0	0
· Transcription from one article to
another +/(-)	0	0	0	0	0	0	0	0
At the end of financial year	0	5.317	1.053.128	186.267	45.423	0		0 1.290.135
b) Revaluation
At the end of previous financial year	0	0	0	0	0	0	0	0
Changes of financial year	0	0	0	0	0	0	0	0
· Increase (decrease) of value +/(-)	0	0	0	0	0	0	0	0
· Assets, transferred to other
individuals and discarded (-)	0	0	0	0	0	0	0	0
· Transcription from one article to
another +/(-)	0	0	0	0	0	0	0	0
At the end of financial year	0	0	0	0	0	0	0	0
c) Depreciation (-)
At the end of previous financial year	0	2.064	484.489	125.172	21.630	0	0	633.355
Changes of financial year	0	664	169.321	5.018	7.212	0	0	182.215
· Written-off property because of the accounting evaluation change (-)	0	0	0	0	0	0	0	0
· Depreciation of financial year	0	664	169.321	6.574	7.212	0	0	183.771
· Restorational records (-)	0	0	0	0	0	0	0	0
· Assets, transferred to other
individuals and discarded (-)	0	0	0	(1.556)	0	0	0	(1.556)
· Transcription from one article to
another +/(-)	0	0	0	0	0	0	0	0
At the end of financial year	0	2.728	653.810	130.190	28.842	0	0	815.570
d) Decrease of value
At the end of previous financial year	0	0	0	0	0	0	0	0
Changes of financial year	0	0	0	0	0	0	0	0
· Decrease of value of financial year	0	0	0	0	0	0	0	0
· Restoration records (-)	0	0	0	0	0	0	0	0
· Assets, transferred to other
individuals and discarded (-)	0	0	0	0	0	0	0	0
· Transcription from one article to
another +/(-)	0	0	0	0	0	0	0	0
At the end of financial year	0	0	0	0	0	0	0	0
e) Residual value at the end of
financial year (a) + (b) - (c) - (d)	0	2.589	399.318	56.077	16.581	0	0	474.565

LINAS, AB consolidated and Company's annual financial statements for the year 2015 31 4.3. OTHER INFORMATION ON LONG-TERM INTANGIBLE, LONG-TERM TANGIBLE ASSETS

No.	Long-term asset groups	GROUP	COMPANY
1.	Long-term intangible asset groups
1.1.	Patents, licenses etc.	-	-
1.2.	Software	4	4
1.3.	Other intangible assets	4	4
2.	Long-term tangible asset groups
2.1.	Structures	8
2.2.	Machines and equipment	6	5
2.3.	Means of transport	6	7
2.4.	Other equipment, appliances, instruments, gear, inventory	5	4

4.3.1. Average useful service period of long-term intangible and tangible assets

4.3.2. Totally amortized or deteriorated longterm intangible and tangible assets which is still used

			GROUP	COMPANY
No.	Title of asset group	Number of exploited inventory units	Purchase cost price (Eur)	Number of exploited inventory units	Purchase cost price (Eur)
1.	Long-term intangible asset groups
1.1.	Patents, licenses etc.
1.2.	Software	4	71.170	4	71.170
1.3.	Other intangible assets	1	1.296	1	1.296
	Total	5	72.466	5	72.466
2.	Long-term tangible asset groups
2.1.	Machines and equipment	3	5.048	1	1.856
2.2.	Means of transport	2	115.620	2	115.620
2.3.	Other equipment, appliances, instruments, gear, inventory	5	8.860	5	8.860
	Total	10	129.528	8	126.336

4.3.3. Rent of long-term tangible assets

			GROUP		COMPANY
			Rent tax during		Rent tax during
	Leasehold long-term tangible assets		financial year		financial year
No.	group	Rent period	(Eur)	Rent period	(Eur)
1.	Buildings and constructions, totally		175.644		163.260
1.1.	Buildings and constructions at S.Kerbedžio g. 23, Panevėžys	termless	143.848	termless	143.848
1.2.	Administrative premises in Vilnius	until 2020-12-31	19.412	until 2020-12-31	19.412
1.3.	Other buildings and constructions	since 2015-10-01 until 2015-12-31	12.384
2.	Vehicles	termless	12.567	termless	12.567
3.	Plant and machinery, other equipment, appliances, tools	termless	167.362	-	-
4.	Other tangible assets	-	-	-	-

								EUR
					Other amounts receivable after one year
Run. No.	Indicators	Other long term loans	Interest granted for loans receivable after one year	Amounts receivable after one year	Uncertain debts (-)	Total other amounts receivable after one year	Other financial assets	Total
1.	Remainder in the beginning of financial year	2.771.581		436.348 2.256.661	(3.852.173)	1.612.417	290	1.612.707
2.	Changes of financial year	331.144	37.793	(264)	(175.631)	193.042	0	193.042
	2.1. Other investments					0	0	0
	2.2. Acquisitions, calculated interest, granting of loans	250.000	23.659			273.659		273.659
	2.3. Transfer from the sums receivable during one year	254.866	14.134			269.000		269.000
	2.4. Sales, return of loans and other receivable amounts (-)	(173.722)		(264)		(173.986)		(173.986)
	2.5. Transfer to short-term financial assets (-)					0		0
2.6.	Financial assets depreciation amounts (BUAB "Nordic investicija" financial debts)				(175.631)	(175.631)		(175.631)
	2.7. Decrease of value (-)					0		0
3.	Remainder in the end of financial year (1 + 2)	3.102.725		474.141 2.256.397	(4.027.804)	1.805.459	290	1.805.749

4.4.1. Changes of long-term financial assets of Linas, AB enterprise group

4.4.2. Changes of long-term financial assets of Linas, AB

EUR

							Other amounts receivable after one year
		Subsidiary		Other	Interest	Amounts	Uncertain	All other
Run.		and	Loans for	longterm	granted	receivable	debts (-)	amounts	Other
No.	Indicators	associated	branch	loans	for loans	after one		receivable	financial	Total
		enterprises	enterprises		receivable	year		after one	assets
					after one			year
					year
	Remainder in the
1.	beginning of financial	2.896	0	2.771.581		436.348 2.256.661	(3.852.173)	1.612.417	290	1.615.603
	year
2.	Changes of financial year	0	0	331.144	37.793	(264)	(175.631)	193.042	0	193.042
	2.1. Investments in subsidiaries							0		0
	2.2. Other investments							0		0
	2.3. Acquisitions, calculated
	interest, granting of loans			250.000	23.659			273.659		273.659
	2.4. Transfer from the sums
	receivable during one year			254.866	14.134			269.000		269.000
	2.5. Sales, return of loans and
	other receivable amounts (-)			(173.722)		(264)		(173.986)		(173.986)
	2.6. Transfer to short-term
	financial assets (-)							0		0
	Financial assets
	depreciation amounts
2.7.	(BUAB "Nordic						(175.631)	(175.631)		(175.631)
	investicija" financial debts)
	2.8. Decrease of value (-)							0		0
	Remainder in the end of
3.	financial year (1 + 2)	2.896	0	3.102.725		474.141 2.256.397	(4.027.804)	1.805.459	290	1.808.645

						EUR
Run. No.	Indicators	Raw material and assembly products	Current construction	Production produced	Goods purchased for reselling purposes	Total
1.	Cost price of purchased stocks
1.1.	At the end of last financial year	1.398.067	69.579	1.456.782	6.995	2.931.423
1.2.	At the end of financial year (incl. stocks en route and by the third parties)	2.021.642	15.951	1.259.717	1.569	3.298.879
2.	Depreciation until net possible selling value (restitution)
2.1.	At the end of last financial year	0	0	0	0	0
2.2.	At the end of financial year	0	0	0	0	0
3.	Net value possible sales at the end of financial year (1-2)
3.1.	At the end of last financial year (1.1.-2.1.)	1.398.067	69.579	1.456.782	6.995	2.931.423
3.2.	At the end of financial year (incl. stocks en route and by the third parties) (1.2-2.2)	2.021.642	15.951	1.259.717	1.569	3.298.879
4.	Balance value of mortgage stocks at the end of previous financial year (31/12/2014)	697.070		1.550.782		2.247.852
5.	Value of mortgage stocks according to mortgage papers (31/12/2014)	289.620		1.158.480		1.448.100
6.	Balance value of mortgage stocks at the end of financial year (31/12/2015)	1.158.914		1.254.712		2.413.626
7.	Value of mortgage stocks according to mortgage papers (31/12/2015)	289.620		1.158.480		1.448.100

4.5.1. Stocks of enterprise group of Linas, AB

4.5.2. Stocks of Linas, AB

EUR Run. No. Indicators Raw material and assembly products Raw material and assembly products are at the third parties Current construction Production produced Goods purchased for reselling purposes Total 1. Cost price of purchased stocks 1.1. At the end of last financial year 636.858 713.288 0 1.512.896 6.995 2.870.037 1.2. At the end of financial year (incl. stocks en route and by the third parties) 1.198.591 816.164 ⁰ 1.324.321 1.569 3.340.645 2. Depreciation until net possible selling value (restitution) 2.1. At the end of last financial year 0 0 0 0 0 0 2.2. At the end of financial year 0 0 0 0 0 0 3. Net value possible sales at the end of financial year (1-2) 3.1. At the end of last financial year (1.1.- 2.1.) 636.858 713.288 ⁰ 1.512.896 6.995 2.870.037 3.2. At the end of financial year (incl. stocks en route and by the third parties) (1.2-2.2) 1.198.591 816.164 0 1.324.321 1.569 3.340.645 4. Balance value of mortgage stocks at the end of previous financial year (31/12/2014) 527.509 169.561 1.550.782 2.247.852 5. Value of mortgage stocks according to mortgage papers (31/12/2014) 289.620 1.158.480 1.448.100 6. Balance value of mortgage stocks at the end of financial year (31/12/2015) 934.173 224.741 1.254.712 2.413.626 7. Value of mortgage stocks according to mortgage papers (31/12/2015) 289.620 1.158.480 1.448.100

LINAS, AB consolidated and Company's annual financial statements for the year 2015 34 4.6. ADVANCE PAYMENT FOR CURRENT ASSETS AND SERVICES

					EUR
		GROUP		COMPANY
Run. No.	Biggest advance payment groups	Financial year	Last financial year	Financial year	Last financial year
1	Advance payment to the reserve providers	220.406	59.158	218.741	46.431
2	Advance payment to the service providers	8.576	19.338	8.282	14.266
3	Balance value of uncertain advance payment	0	0	0	0
3.1.	Uncertain advance payment	192	62	160	30
3.2.	Part of uncertain advance payment written off to the expenses (-)	(192)	(62)	(160)	(30)
4.	Expenses of coming period acknowledged as uncounted within one year	31.091	29.194	28.094	27.472
5.	Advance payment	260.073	107.690	255.117	88.169

Advance payment	260.073	107.690	255.117

			GROUP		COMPANY
Run. No.	Largest groups of receivable amounts		Financial year Last financial year		Financial year Last financial year
1.	Trade debtors	2.033.229	1.769.429	1.807.070	1.759.157
1.1.	debts of branch enterprise			6.325
1.2.	other trade debtors	2.033.229	1.769.429	1.800.745	1.759.157
1.3.	Debt for the sold financial asset - shares of branch enterprise	0	0	0	0
2.	Other amount receivable within one year	218.530	465.450	127.440	370.296
2.1.	Receivable VAT	180.713	104.006	110.097	28.952
2.2.	Budget debt to the enterprise	58	26	58	26
2.3.	Debt of social insurance to the enterprise	0	0
2.4.	Amounts receivable from accountable persons	4.930	155	4.930	155
2.5.	Part of current year of long term loans provided for third parties	0	254.866	0	254.866
2.6.	Other accumulated receivable interests for provided long-term loans of part of current year	0	2.091	0	2.091
2.7.	Amounts receivable from employees for loans provided	0	0	0	0
2.8.	Amounts receivable from branch enterprises	0	0	0	0
2.9.	Advance payment for employees	5.349	16.024	1.549	3.112
2.10.	Receivable sums from requisition rights transfer	0	0	0	0
2.11.	Receivable grants in coming periods	0	399	0	0
2.12.	Profit tax paid in advance	12.952	6.789	0	0
2.13.	Receivable profit of incorporated activity	0	81.094	0	81.094
2.14.	Other amounts receivable (amounts receivable from var. debtors, except for the debt of branch	14.528	0	10.806	0

Amount receivable within one year, total 2.251.759 2.234.879 1.934.510 2.129.453

enterprise)

4.7. AMOUNTS RECEIVABLE WITHIN ONE YEAR

EUR

LINAS, AB consolidated and Company's annual financial statements for the year 2015 35 4.8. UNCERTAIN DEBTS

					EUR
			GROUP			COMPANY
		Financial year		Last financial year		Financial year		Last financial year
			Expenses		Expenses		Expenses		Expenses
Run. No.	Uncertain debts by groups	Uncertain debts	of uncertain debts	Uncertain debts	of uncertain debts	Uncertain debts	of uncertain debts	Uncertain debts	of uncertain debts
1.	Uncertain debts at the beginning of the financial year	3.357.956		3.393.333		3.355.877		3.391.266
2.	Part of uncertain debts written-off to the expenses at the beginning of the financial year (-)	(3.357.956)		(3.393.333)		(3.355.877)		(3.391.266)
3.	Balance value of uncertain debts at the beginning of the financial year	0		0		0		0
4.	Debts acknowledge as uncertain within financial year	986		3.008		482		2.996
5.	Part of uncertain debt written-off to expenses within financial year	(986)		(3.008)		(482)		(2.996)
6.	Uncertain debts acknowledge as expenses within financial year		872		3.008		456		2.996
7.	Written-off to expenses without transfering debt into uncertain debts of foreign consumer account		0		0		0		0
8.	Uncertain debts recovered within financial year (restoring of written off debts (-))		0		0		0		0
9.	Impact of currency exchange rates to advance payment	0	0	0	0	0	0	0	0
10.	Impact of currency exchange rates to debts of foreign consumer	0	0	0	0	0	0		0 0
11.	Uncertain debts written-off from financial accounting (-)	(7.201)		(38.385)		(7.201)
12.	Uncertain debt at the end of financial year	3.351.741		3.357.956		3.349.158		3.355.877
13.	Part of uncertain debt written-off to expenses at the end of financial year (-)	(3.351.741)		(3.357.956)		(3.349.158)		(3.355.877)
14.	Balance value of uncertain debts at the end of the financial year	0		0		0		0

LINAS, AB consolidated and Company's annual financial statements for the year 2015 36 4.9. LINAS, AB ENTERPRISE'S GROUP AND LINAS, AB PROVIDED LOANS

				Financial year			Last financial year
Run. No.	Loans provided	Currency of loan	Balance value 31 12 2015, Eur	Term of recovery	Interest payable for loan provided 31 12 2015 Eur	Balance value 31 12 2014, Eur	Term of recovery	Interest payable for loan provided 31 12 2014, Eur
1.	Long-term loans provided		1.605.612		41.131	1.450.099		3.338
1.1	Long-term loans provided for employees of enterprise	EUR	0		0	0		0
1.2	Long-term loans provided for shareholders	EUR	0		0	0		0
1.3	Long-term loans provided for branch of enterprise	EUR	0		0	0		0
1.4.	Long-term loans provided for other third parties	EUR	3.102.725	various terms since 2009-07-31 until 2022-09-01	474.142	2.771.581	various terms since 2009-07-31 until 2019-11-19	436.349
1.5.	Long-term loans provided for other third parties recognized as uncertain debts	EUR	(1.497.113)		(433.011)	(1.321.482)		(433.011)
2.	Short-term loans provided		0		0	254.866		2.091
2.1	Short-term loans provided for employees of enterprise and part of long-term for current year	EUR
2.2	Provided for shareholders part of long-term for current year	EUR
2.3	Short-term loans provided for shareholders	EUR
2.4	Provided for other third parties part of long-term for current year	EUR				254.866	until 2015-12-31	2.091
2.5	Short-term loans provided for other third parties	EUR
2.6	Short-term loans provided for branch of enterprise	EUR
3.	Total (1+2)		1.605.612		41.131	1.704.965		5.429

LINAS, AB consolidated and Company's annual financial statements for the year 2015 37 4.10. STRUCTURE OF STATUTORY CAPITAL OF LINAS, AB AND MAIN SHAREHOLDERS

Run.	Indicators	Number of	%	Amount
No.	Joint-stock capital structure at the end of financial	shares		(EUR)
1	year
	According to type of shares
	1.1. Ordinary shares	24.038.990		6.971.307
	1.2. Preference shares	0		0
	1.3. Shares of employees	0		0
	1.4. Special shares	0		0
	1.5. Other shares	0		0
	TOTAL:	24.038.990	100,00%	6.971.307
2	State or municipal capital	0		0
3	Own shares, owned by the enterprise itself	0		0
4	Shares which hold subsidiary companies.	0		0
5	Shareholders who have more than 5% of enterprises shares (2015-12-31)
	5.1. Company "Roocero Associates Limited" (company code 106446, address: 35 Barrack Road, Belize, Finland)	5.406.533	22,49%	1.567.895
	5.2. Company "Danelika Services Limited" (company code HE289213, address: 3 Michael Koutsofta Street, Limassol, Cyprus)	4.156.585	17,29%	1.205.410
	5.3. Association "EEEE" (company code 302572729, address: Savanorių pr. 192, Kaunas)	2.831.699	11,78%	821.193
	5.4. Emilis Lenčiauskas	2.796.880	11,63%	811.095
	5.5. UAB "Rivena" (company code 302521510, address: P.Žadeikos g. 13-35, Vilnius)	2.423.030	10,08%	702.679

4.11. RESERVES OF LINAS, LLC ENTERPRISE GROUP AND LINAS, LLC

			GROUP		COMPANY
Run.	Indicators	At the end	At the end	At the end	At the end
No.		of financial	of last	of financial	of last
		year	financial	year	financial
			year		year
1	Compulsory reserve	290	290	0	0
2	Other reserves	173.772	173.772	0	0
2.1.	Unappropriated reserve for investment
	Reserve for support and benefits in line with
2.2.	collective agreement
2.3.	Reserve for development of business projects	173.772	173.772
3	Total reserves	174.062	174.062	0	0

Linas, AB

Company Code 147689083

S. Kerbedzio 23, Panevezys

4.12. PROFIT (LOSS) ASSIGNMENT PROJECT

		EUR
Run. No.	Articles	Amount
1.	Retained earnings (loss) of the previous financial year at the end of the current year	(1.123.863)
2.	Net profit (loss) for the current year	501.625
3.	Unadmitted profit (loss) of accounting financial year in statement of profit or loss and other comprehensive income	0
4.	Transfers from reserves, total	0
4.1.	- from obligatory reserve	0
4.2.	- from reserve for business projects development	0
4.3.	- from reserve for support	0
5.	Contributions by shareholders to cover losses	0
6.	Appropriated profit (loss), total	(622.238)
7.	Appropriation of profit	0
7.1.	part of profit admitted to compulsory reserve	0
7.2.	part of profit admitted to reserve to obtain own shares	0
7.3.	part of profit admitted to other reserves:	0
7.3.1.	to reserve for support	0
7.3.2.	to reserve for project of business development	0
7.4.	part of profit admitted to pay the dividends	0
7.5.	part of profit admitted for annual payoffs (bonuses) to members of Board, employees bonuses and other aims;	0
8.	Retained earnings (loss) at the end of the current year to be carried forward to the following financial year	(622.238)

LINAS, AB consolidated and Company's annual financial statements for the year 2015 39 4.13. GRANTS AND SUBVENTIONS

							EUR
Run. NO.	Type of grants (subventions)	Remainder at the beginning	Received amounts of	Receivable amounts of	Used amounts of grants	Returned amounts of	Remainder at the end of
		of period	grants	grants	(subventions)	grants	period
			(subventions)	(subventions)		(subventions)
1.	GROUP
1.1.	Grants related to income (compensation of expenses)	399	6.825	0	7.224	0	0
1.2.	Grants related to assets
1.3.	Subventions
2.	COMPANY
2.1.	Grants related to income (compensation of expenses)	0	1.486	0	1.486	0	0
2.2.	Grants related to assets
2.3.	Subventions

LINAS, AB consolidated and Company's annual financial statements for the year 2015 40 4.14. LONG-TERM AND SHORT-TERM OBLIGATIONS

									EUR
				GROUP				COMPANY
Run. No.	Indicators	parts thereof	Debts payable or	Total debts at	Total debts at	parts thereof	Debts payable or	Total debts at	Total debts at
	Splitting of amounts payable by types	within one financial year	after one year	the end of financial year	the end of last financial year	within one financial year	after one year	the end of financial year	the end of last financial year
1.	Financial debts:	0	0	0	0	0	0	0	0
1.1.	For leasing (financial lease) or similar obligations	0	0	0	0	0		0	0
1.2.	For credit institution	0	0	0	0	0	0	0	0
1.3.	Other financial debts	0	0	0	0	0	0	0	0
2.	Other debts	1.593.881	113.453	1.707.334		1.800.651 1.396.778	113.453	1.510.231	1.700.404
2.1.	Debts for suppliers	1.171.635	0	1.171.635		885.990 1.115.540	0	1.115.540	1.069.371
2.2.	Received advance payment	71.157	11.345	82.502	126.737	71.157	11.345	82.502	126.720
2.3.	Obligations related to industrial relations	249.099	0	249.099	417.217	111.949	0	111.949	136.701
2.3.1	wage payable	107.865	0	107.865	177.011	54.128	0	54.128	72.340
2.3.2	social insurance payable	62.085	0	62.085	101.639	29.508	0	29.508	32.769
2.3.3	payable RIT from wage	10.010	0	10.010	13.359	3.122	0	3.122	2.674
2.3.4	leave accumulation	68.928	0	68.928	124.886	25.107	0	25.107	28.849
2.3.5	payable contributions to the Guarantee Foundation	211	0	211	322	84	0	84	69
2.4.	VAT payable	21.906	0	21.906	43.869	21.906	0	21.906	43.869
2.5.	Other taxes payable	2.250	0	2.250	2.292	1.019	0	1.019	1.340
2.6.	Profit tax payment obligations	28.984	0	28.984	108.587	28.984	0	28.984	108.587
2.7.	Payable amounts for sales services	36.231	0	36.231	54.069	36.231	0	36.231	54.069
2.8.	Various other payable amounts	12.619	102.108	114.727	161.890	9.992	102.108	112.100	159.747
	Total	1.593.881	113.453	1.707.334		1.800.651 1.396.778	113.453	1.510.231	1.700.404

LINAS, AB consolidated and Company's annual financial statements for the year 2015 41 4.15. ACCUMULATIONS OF LEAVES

					EUR
			GROUP	COMPANY
Run. No.	Indicators	Financial year	Last financial year	Financial year	Last financial year
1.	Remainder of accumulative leaves at the beginning of the year	124.886	106.228	28.849	27.150
1.1.	Accumulative leaves at the beginning of the year	95.241	80.992	22.025	20.728
1.2.	Social insurance of accumulative leaves at the beginning of the year	29.645	25.236	6.824	6.422
2.	Accumulated leaves within a year (leaves with social insurance directed to expenses)	175.815	227.385	49.656	43.796
2.1.	Accumulated leaves	134.091	173.423	37.911	33.437
2.2.	Accumulated social insurance from accumulated leaves	41.724	53.962	11.745	10.359
3.	Accumulated leaves amount covered by accumulated leaves (within a financial year for employees practically counted leaves with social insurance)	(231.773)	(208.727)	(53.398)	(42.097)
3.1.	Leaves expenses covered by accumulated leaves	(176.755)	(159.174)	(40.768)	(32.140)
3.2.	Leaves with social insurance expenses covered by accumulated leaves	(55.018)	(49.553)	(12.630)	(9.957)
4.	Remainder of accumulative leaves at the end of the year	68.928	124.886	25.107	28.849
4.1.	Accumulated leaves at the end of the year	52.577	95.241	19.168	22.025
4.2.	Social insurance from accumulated leaves at the end of the year	16.351	29.645	5.939	6.824
5.	Change of accumulated leave remainder within a year (4 - 1)	(55.958)	18.658	(3.742)	1.699
5.1.	Change of accumulated leave remainder	(42.664)	14.249	(2.857)	1.297
5.2.	Change of social insurance from accumulated leave remainder	(13.294)	4.409	(885)	402

										EUR
					Segments (production, goods, types of activity)
Indicators	Fabric		Sewn products		Yarns		Production services		Group's Total
	2015 y.	2014 y.	2015 y.	1014 y.	$2015 y.$ 2014 y.		2015 y.	2014 y.	2015 y.	2014 y.
Income	6.052.848		5.603.458 5.967.430 5.699.105		58.139	55.498	643.783		666.280 12.722.200 12.024.341
	$Cost price$ 4.145.536		3.370.582 4.566.486 4.140.014		56.842	48.830	315.296		301.380 9.084.160 7.860.806
Gross profit (losses) 1.907.312			2.232.876 1.400.944 1.559.091		1.297	6.668	328.487		$364.900$ $3.638.040$ $4.163.535$
Operating expenses										2.864.885 3.033.794
activity Profit (losses) on typical	1.907.312		2.232.876 1.400.944 1.559.091		1.297	6.668	328.487	364.900		773.155 1.129.741

									EUR		Group's Total	2014 y.	12.024.341	7.860.806	4.163.535	3.033.794	1.129.741
												2015 y.	12.722.200	9.084.160	3.638.040	2.864.885	773.155
EUR			2014 y.	12.024.341	7.860.806	4.163.535	3.033.794	1.129.741				2014 y.	857.527	595.625	261.902		261.902
		Group's Total	2015 y.	12.722.200	9.084.160	3.638.040	2.864.885	773.155			Other countries	2015 y.	997.973	810.275	187.698		187.698
			2014 y.	666.280	301.380	364.900		364.900				2014 y.	1.508.444	895.828	612.616		612.616
		Production services	2015 y.	643.783	315.296	328.487		328.487			Lithuania	2015 y.	1.567.234	1.059.992	507.242		507.242
			2014 y.	55.498	48.830	6.668		6.668				2014 y.	647.573	341.923	305.650		305.650
	Segments (production, goods, types of activity)	Yarns	2015 y.	58.139	56.842	1.297		1.297		Segments (regions)	USA	2015 y.	598.003	320.264	277.739		277.739
			2014 y.	5.699.105	4.140.014	1.559.091		1.559.091				2014 y.	6.125.774	4.227.442	1.898.332		1.898.332
		Sewn products	2015 y.	5.967.430	4.566.486	1.400.944		1.400.944			European countries	2015 y.	6.285.102	4.702.005	1.583.097		1.583.097
			2014 y.	5.603.458	3.370.582	2.232.876		2.232.876				2014 y.	2.885.023	1.799.988	1.085.035		1.085.035
		Fabrics	2015 y.	6.052.848	4.145.536	1.907.312		1.907.312	4.16.2. Information of Linas, LLC enterprise group about segments of textile products of geographical production business		Scandinavian countries	2015 y.	3.273.888	2.191.624	1.082.264		1.082.264
		Indicators		Income	Cost price	Gross profit (losses)	Operating expenses	Profit (losses) on typical activity			Indicators		Income	Cost price	Gross profit (losses)	Operating expenses	Profit (losses) on typical activity

		4.16.3. Information of Linas, LLC about segments of textile products business								EUR
			Segments (production, goods, types of activity)
Indicators	Fabrics		Sewn products		Yarns		Production services		mpany's Co	Total
	2015 y.	2014 y.	2015 y.	2014 y.	2015 y.	2014 y.	2015 y.	2014 y.	2015 y.	2014 y.
Income	6.052.848	5.603.458	5.967.430	5.699.105	58.202	55.498	520.102	492.573	12.598.582	11.850.634
Cost price	4.825.437	4.144.898	5.315.426	5.091.090	56.904	48.830	252.860	206.520	10.450.627	9.491.338
Gross profit (losses)	1.227.411	1.458.560	652.004	608.015	1.298	6.668	267.242	286.053	2.147.955	2.359.296
Operating expenses									1.579.829	1.500.866
Profit (losses) on typical activity	1.227.411	1.458.560	652.004	608.015	1.298	6.668	267.242	286.053	568.126	858.430
					Segments (regions)						Co
Indicators	Scandinavian countries		European countries		USA				Other countries		mpany's	Total
	2015 y.	2014 y.	2015 y.	2014 y.	2015 y.	2014 y.	2015 y.	Lithuania 2014 y.	2015 y.	2014 y.	2015 y.	2014 y.
Income	3.273.888	2.885.023	6.283.539	6.125.325	598.003	647.573	1.445.179	1.335.186	997.973	857.527	12.598.582	11.850.634
Cost price	2.538.726	2.199.899	5.445.914	5.166.421	370.986	417.889	1.156.398	979.172	938.603	727.957	10.450.627	9.491.338
Gross profit (losses)	735.162	685.124	837.625	958.904	227.017	229.684	288.781	356.014	59.370	129.570	2.147.955	2.359.296
Operating expenses											1.579.829	1.500.866
Profit (losses) on typical activity	735.162	685.124	837.625	958.904	227.017	229.684	288.781	356.014	59.370	129.570	568.126	858.430

					Segments (regions)						֧֧֧֧֧֧֧֧֧֧֦֧֧֧֧֧֦֧֧֧֧֧֧֧֧֛֛֛֛֛֛֛֛֧֞֝֝֓֝֓֝֓֝֓֓֝֓֝֓֓֝֓֝֓֝֓֝֓֝֓֝֓֟֓֟֓֝֓֝֓֝֓֟֓֝֓֝֓֝֬֝֓֝֓֝֓֜֝֜֝
Indicators	Scandinavian countries European			countries	USA		Lithuania		Other countries	Company's Total
	2015 y.	2014 y.	2015 y.	2014 y.		$2015 y.$ 2014 y.	2015 y.	2014 y.	$2015 y.$ $2014 y.$	2015 y.	1014 y.
Income	3.273.888 2.885.023 6.283.539			6.125.325						598.003 647.573 1.445.179 1.335.186 997.973 857.527 12.598.582 11.850.634
Cost price	2.538.726 2.199.899 5.445.914			5.166.421	370.986	417.889 1.156.398		979.172	938.603	727.957 10.450.627 9.491.338
Gross profit (losses)	735.162	685.124	837.625	958.904	227.017		229.684 288.781	356.014	59.370	129.570 2.147.955 2.359.296
Operating expenses											1.579.829 1.500.866
Profit (losses) on typical activity	735.162	685.124	837.625	958.904			227.017 229.684 288.781	356.014	59.370	129.570 568.126	858.430

LINAS, AB consolidated and Company's annual financial statements for the year 2015 44 4.17. EXPENSES OF ACTIVITY

EUR

		GROUP		COMPANY
Run. No.	Indicators	Financial year	Last financial year	Financial year	Last financial year
1	Expenses of sales	712.376	683.610	706.360	680.775
1.1	Expenses of commissions	284.668	305.260	284.668	305.260
1.2	Expenses of transporting of sold production	109.604	109.637	109.604	109.637
1.3	Expenses of production advertising and fair	97.115	75.776	91.398	72.866
1.4	Expenses of sales number employees wage and other with employees related expenses	176.167	153.181	176.167	153.181
1.5	Evaluate of customers creditworthiness and insurance costs of marketabble credits	27.488	22.406	27.488	22.406
1.6	Other sales expenses	17.334	17.350	17.035	17.425
2	General and administration expenses	2.152.509	2.350.184	873.469	820.091
2.1	Expenses related with employees wage and other with employees related	1.004.887	1.122.491	421.828	392.755
2.2	Training costs of administration employees	8.771	10.672	4.381	6.077
2.3	Rent, exploitation and repairing expenses	813.288	896.095	228.581	214.203
2.4	Expenses of security services	40.727	44.167	21.721	22.228
2.5	Expenses of deterioration and amortization of non-current asset	43.952	50.603	10.234	16.792
2.6	Expenses of info technologies	34.369	37.639	26.247	36.685
2.7	Connection expenses	11.917	12.222	6.282	4.836
2.8	Expenses of bank services	6.918	6.137	6.410	5.274
2.9	Legal services expenses	16.358	13.598	16.252	13.598
2.10	Expenses of activity tax	17.709	13.466	10.481	3.265
2.11	Expenses of support provided	37.684	23.309	37.684	22.875
2.12	Expenses of social guarantees, stated in collective agreement	2.530	1.564	2.530	1.564
2.13	Representation expenses	11.109	9.646	10.383	9.183
2.14	Uncertain debts expenses	871	3.004	455	2.992
2.15	Low-value assets acquisition expenses	16.964	28.538	7.444	7.285
2.16	Costs of suspensions	0	0	0	0
2.17	Various other general and administration expenses	84.455	77.033	62.556	60.479
3	TOTAL EXPENSES OF ACTIVITY	2.864.885	3.033.794	1.579.829	1.500.866

LINAS, AB consolidated and Company's annual financial statements for the year 2015 45 4.18. OTHER (NON TYPICAL) ACTIVITY

					EUR
		GROUP		COMPANY
Run.	Indicators	Financial	Last	Financial	Last
No.		year	financial	year	financial
			year		year
1.	INCOME OF OTHER ACTIVITY - TOTAL	509.546	193.317	981.257	1.261.475
	Specification of significant amount:
1.1.	Profit of non-current asset transferring	1.619	0	1.619	0
1.2.	Income of various storages selling	220.356	107.339	115.876	129.436
1.3.	Income of rent	93.788	75.988	81.788	75.988
1.4.	Income of accounting and administration services	10.200	6.932	62.518	69.490
1.5.	Incomes of thermal energy supply	179.366	353	717.684	985.981
1.6.	Various other non-typical activity income	4.217	2.705	1.772	580
2.	EXPENSES OF OTHER ACTIVITY - TOTAL	455.114	207.595	782.583	1.025.725
	Specification of significant amount:
2.1.	Loss of non-current asset transferring	0	0	0	0
2.2.	Net cost of sold various storages	191.277	99.025	80.267	95.798
2.3.	Net cost of rent	49.301	41.302	39.181	41.302
2.4.	Expenses of accounting and administration services	58.037	58.008	58.037	58.008
2.5.	Expenditures of thermal energy supply	156.291	9.095	604.890	830.452
2.6.	Various other non-typical activity expenses	208	165	208	165
3.	RESULT OF OTHER ACTIVITY (1-2)	54.432	(14.278)	198.674	235.750

4.19. FINANCIAL AND INVESTMENT ACTIVITY

EUR GROUP COMPANY Run. No. Indicators Financial year Last financial year Financial year Last financial year 1. FINANCIAL AND INVESTMENT ACTIVITY INCOME - TOTAL 38.757 17.472 39.379 17.411 Specification of significant amount: 1.1. Positive result of changes of currency exchange 1.754 9.127 2.436 9.095 1.2. Income of bank interests 92 29 92 24 1.3. Income of other interests 35.702 8.227 35.702 8.203 1.4. Fines and penalties for the drawn debts 0 55 0 55 1.5. Profit of incorporated activity 0 0 0 0 1.6. Income of loans provided by the revaluation 0 0 0 0 1.7. Income of currency buying-selling 1.034 26 1.034 26 1.8. Discrepancy sum appeared from the recalculating into EUR ¹⁶⁷ 0 107 0 1.9. Income of other financial-investment activity 8 8 8 8 2. FINANCIAL AND INVESTMENT ACTIVITY EXPENSE S- TOTAL 189.561 1.972.101 189.391 1.971.763 Specification of significant amount: 2.1. Expenses of interests 1.057 2.169 1.057 2.168 2.2. Fines and delay fees 8 79 7 3 2.3. Negative result of changes of currency exchange 0 0 0 0 2.4. Expenses of currency buying-selling 1.608 1.020 1.448 759 2.5. Expenses of loans provided by the revaluation 0 0 0 0 2.6. Financial assets depreciation amounts (BUAB "Nordic investicija" and BUAB "Domus Palanga" financial debts) 175.631 1.954.629 175.631 1.954.629 2.7. Discrepancy sum appeared from the recalculating into EUR 9.219 0 9.210 0 2.8. Expenses of other financial-investment activity 2.038 14.204 2.038 14.204 3. FINANCIAL AND INVESTMENT ACTIVITY RESULT (1-2) (150.804) (1.954.629) (150.012) (1.954.352)

	LINAS, AB consolidated and Company's annual financial statements for the year 2015								46
	4.20. FINANCIAL CONNECTIONS WITH MANAGERS AND OTHER RELATED PERSONS
									EUR
			GROUP				COMPANY
		Financial	Remainder	Last	Remainder	Financial	Remainder	Last	Remainder
No.	Indicators	year	at the end of financial	financial year	at the end of last	year	at the end of financial	financial year	at the end of last
			year		financial		year		financial
					year				year
	Amount, related with industrial
A.	relations, calculated within a year:	135.881	8.104	117.342	4.849	105.969	6.303	77.023	3.034
1.	For managers	129.022	7.468	117.173	4.696	99.110	5.667	76.854	2.881
2.	For other related persons	6.859	636	169	153	6.859	636	169	153
B.	Loans granted by Group (Company):	250.000	3.102.725	984.708	3.026.446	250.000	3.102.725	984.708	3.026.446
1.	For managers	0	0	0	0	0	0	0
2.	For other related persons	250.000	3.102.725	984.708	3.026.446	250.000	3.102.725	984.708	3.026.446
	C. Receivable loans:	0	0	0	0	0	0	0
1.	From managers	0	0	0	0	0	0	0
2.	From other related persons	0	0	0	0	0	0	0
	D. Repaid the loan for Group (Company):	173.722	0	556.726	0	173.722	0	556.726
1.	From managers	0	0	0	0	0	0	0
2.	From other related persons	173.722	0	556.726	0	173.722	0	556.726
E.	Gratuitously transfered asset and gifts:	0	0	0	0	0	0	0
1.	For managers	0	0	0	0	0	0	0
2.	For other related persons	0	0	0	0	0	0	0
F.	Various guarantees provided by name of Group (Company):	200.000	200.000	0	0	200.000	200.000	0
1.	For managers	0	0	0	0	0	0	0
2.	For other related persons	200.000	200.000	0	0	200.000	200.000	0
	G. Received various guarantees:	0	7.941.565	1.592.910	7.949.301	0	8.375.995	1.592.910	8.383.731
1.	From managers	0	0	0	0	0	0	0
2.	From other related persons	0	7.941.565	1.592.910	7.949.301	0	8.375.995	1.592.910	8.383.731
	Other significant amounts, calculated
	within a year (obligations of Group	1.448.737	768.777	375.927	328.926	5.718.395	787.899	5.353.645	620.281
H.	(Company) to related persons):
1.	For managers	10.367	1.622	10.658	2.085	10.367	1.622	10.658	2.085
2.	For members of the Board	2.213	0	0	0	2.213	0	0
3.	For other related persons	1.436.157	767.155	365.269	326.841	5.705.815	786.277	5.342.987	618.196
	Other significant obligations for Group
I.	(Company):	250.937	2.900.925	29.038	2.712.710	829.574	2.674.188	1.077.224	2.712.710
1.	Of managers	0	0	0	0	0	0	0
2.	Of other related persons	250.937	2.900.925	29.038	2.712.710	829.574	2.674.188	1.077.224	2.712.710
J.	Sold asset:	107.066	0	316	0	5.226	0	28.483
1.	For managers	288	0	151	0	134	0	151
2.	For other related persons	106.778	0	165	0	5.092	0	28.332
	Provisions of liabilities and requisition	0	0	0	0	0	0	0
K.	cover:
1.	For managers	0	0	0	0	0	0	0
2.	For other related persons	0	0	0	0	0	0	0
L.	Accepted as doubtful debts	175.631	(4.009.848)		1.964.931 (3.834.217)	175.631	(4.009.848)		1.964.931 (3.834.217)
	(Financial assets depreciation amounts): Of managers	0	0	0	0	0	0	0
1. 2.	Of other related persons	175.631	(4.009.848)		1.964.931 (3.834.217)	175.631	(4.009.848)		1.964.931 (3.834.217)
	The asset of the third parties in the
M.	enterprise	0	2.026.573	0	1.379.264	0	2.026.573	0	1.379.264
1.	Of managers	0	0	0	0	0	0	0
2.	Of other related persons	0	2.026.573	0	1.379.264	0	2.026.573	0	1.379.264
	The asset of enterprise at the third
N.	parties	0	1.023.360	0	0	0	816.163	0	713.288
1.	To managers	0	0	0	0	0	0	0
2.	To other related persons	0	1.023.360	0	0	0	816.163	0	713.288
	Average number of administration

managers within a year ^{4 X 4 X 3 X 3 X} Number of Board members per year 4 X 3 X 3 X 3 X

LINAS, AB consolidated and Company's annual financial statements for the year 2015 47 4.21. PROFIT TAX

					EUR
			GROUP		COMPANY
Run. No.	Expenses of profit tax	Financial year	Last financial year	Financial year	Last financial year
	1. Expenses of profit tax	123.155	171.256	114.855	163.146
	1.1. Reporting year profit tax according to Profit tax declaration	123.155	171.256	114.855	163.146
	1.2. Corrections of profit tax of last year in perspective way	0	0	0	0
	2. Expenses (incomes) of delayed taxes	614	803	308	385
2.1.	Expenses (incomes) of delayed taxes, determined by appearance and (or) disappearance of temporary differences	614	803	308	385
	3. Expenses of profit tax , stated in statement of profit or loss and other comprehensive income	123.769	172.059	115.163	163.531

4.21.1. Specification of expenses of profit tax

4.21.2. Recalculation of expenses of profit taxes, according to regular and temporary difference of accounting and taxable profit

					EUR
			GROUP		COMPANY
Run. No.	Expenses of profit tax	Financial year	Last financial year	Financial year	Last financial year
1.	Accountable profit (loss) before taxing (according to statement profit or loss and other of comprehensive income)	676.783	(839.166)	616.788	(860.172)
	2. Profit tax before correction cause of regular and temporary differences	102.791	(121.032)	92.518	(129.026)
	3. Correction of expenses of profit tax	20.978	293.091	22.645	292.557
	3.1. Correction of profit tax expenses cause of regular differences	20.978	293.091	22.645	292.557
3.2.	Correction of profit tax expenses cause of temporary differences (from profit (loss) declaration)	(614)	(385)	(308)	(385)
3.3.	Correction of profit tax expenses regarding temporal differences (profit tax property (obligations) decrease (increase))	614	385	308	385
	3.4. Correction of profit tax of last period in perspective way	0	0	0	0
	3.5. Profit tax expenditures correction regarding investment project implementation	0	0	0	0
	4. Expenses of profit tax, stated in statement of profit or loss and other comprehensive income	123.769	172.059	115.163	163.531

LINAS, AB consolidated and Company's annual financial statements for the year 2015 48 4.22. EXTENDED PROFIT TAX

									EUR
				GROUP				COMPANY
Run. No.	Reasons of originated extended tax		Statement of financial position	income	Statement of profit or loss and other comprehensive		Statement of financial position	income	Statement of profit or loss and other comprehensive
		Finan	Last	Financial	Last	Finan	Last	Financial	Last
		cial year	financial	year	financial	cial year	financial	year	financial
			year		year		year		year
	Obligation of extended
1.	tax at the beginning of	0	0			0	0
	financial year
	Asset of extended tax at
2.	the beginning of	1.230	2.033			477	862
	financial year
	Changes of asset of extended tax (increase +,
	decrease -)
	Income tax on long-term
	assets depreciation costs,
3.1.	which are recognized in	(614)	(803)			(308)	(385)
	the taxation accounting as
	allowed deductions
	Income tax on long-term
	assets depreciation costs,
3.2.	which are not recognized	0	0			0	0
	in the taxation accounting
	as allowed deductions
	3. Changes of asset of extended tax, total	(614)	(803)			(308)	(385)
	4. Expenses (incomes) of
	extended tax			614	803			308	385
	Obligation of extended
5.	tax at the end of	0	0			0	0
	financial year
	6. Asset of extended tax at	616	1.230			169	477
	the end of financial year

LINAS, AB consolidated and Company's annual financial statements for the year 2015 49 4.23. RIGHTS AND OBLIGATIONS, NOT STATED IN THE STATEMENT OF FINANCIAL POSITION

					EUR
		GROUP		COMPANY
Run. No.	Indicators	Financial year	Previous financial year	Financial year	Previous financial year
1	The value of deposit for the loans granted by bank	1.448.100	1.448.100	1.448.100	1.448.100
2	Sponsions of third parties for the loans received by the enterprise	0	0	434.430	434.430
3	Received guarantess, sponsions	4.980.592	4.988.328	4.980.592	4.988.328
4	Tangible valuables of enterprise trusted to the third parties	70.168	120.513	70.168	120.513
5	Property sublease for third persons	1.264.763	0	1.373.302	822.984
6	Sponsions for the third parties	200.000	0	200.000	0
7	Confirmed notes in circulation	0	0	0	0
8	The asset of the third parties in the enterprise	2.026.573	1.379.264	2.026.573	1.379.264
9	Property of third parties mortgaged for the company	2.960.973	2.960.973	2.960.973	2.960.973

4.24. EARNINGS (LOSS) PER SHARE

			GROUP		COMPANY
Run. No.	Indicators	Financial year	Last financial year	Financial year	Last financial year
1.	Average number of shares	24.038.990	24.038.990	24.038.990	24.038.990
2.	Net profit (loss), in EUR	553.014	(1.011.225)	501.625	(1.023.703)
3.	Earnings per share, in EUR	0,02	(0,04)	0,02	(0,04)