TURBOMECANICA SA FINANCIAL STATEMENTS FOR THE YEAR ENDEDDECEMBER 31,2021 PREPARED IN ACCORDANCE WITH MINISTER OF FINANCE ORDER NO. 2844/2016, FOR THE APPROVAL OF ACCOUNTING REGULATIONS IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS, with subsequent amendments and clarifications

CONTENTS:	PAGE:
STATEMENT OF COMPREHENSIVE INCOME	1
STATEMENT OF FINANCIAL POSITION	2
STATEMENT OF CASH FLOWS	3
STATEMENT OF CHANGES IN EQUITY	4 – 5
NOTES TO THE FINANCIAL STATEMENTS	6–53

	Note	December 31, 2021 RON	December 31, 2020 RON
Revenues from contracts with clients	4	131,331,165	124,989,037
Changes in inventories of finished goods and work in progress		2,242,607	3,135,957
Raw materials,consumables and utilities	5	(41,843,823)	(40,424,698)
Employee benefits and salaries	6	(53,408,568)	(49,784,876)
Depreciation and amortization expenses	11, 12	(10,977,081)	(8,954,392)
Other operating expenses	7	(9,491,455)	(8,443,802)
Other operating income	7	1,349,869	-
Financial costs	8	(2,036,616)	(2,110,913)
Finance income	8	108,129	161
Other gains and losses	9	(3,070,518)	(1,902,451)
Profit before taxation		14,203,709	16,504,022
Income tax	10	(2,454,482)	(3,161,296)
Profit for the year		11,749,227	13,342,726
Other comprehensive income, net of taxation:
Items which will be reclassified to profit and loss			-
Items which will not be reclassified to profit and loss: Actuarial gain/ (loss) on defined benefits plan, net of deferred tax	21	534,442	(464,404)
Gains fromland, buildings and equipment reevaluation, net of tax		-	12,995,206
Other comprehensive income for the year		534,442	12,530,802
Comprehensive income for the year		12,283,669	25,873,528
Result per share:	26
(RON / share)		0.032	0.037
The financial statements were approved by the Board of Administration and authorized for issuance on March24,2022.

CLAUDIA ANGHEL, RADU VIEHMANN,

Economic & Commercial Director CEO

TURBOMECANICA SA STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2021

(all the amounts are expressed in "RON", unless otherwise specified)

The accompanying notes form an integral part of these financial statements. This is a free translation from the original Romanian version.

		Note December 31, 2021	December 31, 2020
ASSETS		RON	RON
Long-term assets
Property, plant and equipment	11	63,583,402	71,703,273
Intangible assets	12	938,549	1,329,012
Contract Asset	14		12,128,057
Other assets		6,000	6,000
Total long-term assets		64,527,951	85,166,342
Current assets
Inventories	13	59,341,924	31,173,171
Trade receivables	15	20,270,368	12,372,365
Contract assets	14	11,952,778	19,601,829
Other receivables	16	2,431,143	2,717,342
Cash and cash equivalents	17	18,961,360	5,148,791
Total current assets		112,957,571	71,013,498
Total assets		177,485,522	156,179,840
EQUITY AND LIABILITIES
Capital and reserves
Issued capital	18	36,944,248	1,024,571,055
Reserves	19	82,454,086	103,560,022
Retained earnings			1,800,021 (1,019,216,389)
Own shares		(599,408)	(599,408)
Total equity		120,598,947	108,315,279
Long-term liabilities
Borrowings	20	2,055,578	4,242,854
Deferred tax liabilities	10	3,989,086	4,634,038
Provisions	21	1,485,978	3,032,342
Total long-term liabilities		7,530,642	11,909,234
Current liabilities
Trade and other liabilities	22	5,551,518	1,861,529
Borrowings	20	27,895,049	20,424,538
Current income tax	10	1,927,794	1,631,433
Provisions	21	4,798,822	3,708,200
Deferred income	23	-	2,178
Other current liabilities	23	9,182,750	8,327,448
Total current liabilities		49,355,933	35,955,326
Total liabilities		56,886,575	47,864,560
Total equity and liabilities		177,485,522	156,179,840

The financial statements were approved by the Board of Administration and authorized for issuance on March 24, 2022.

CLAUDIA ANGHEL, RADU VIEHMANN,

Economic & Commercial Director CEO

TURBOMECANICA SA STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2021

(all the amounts are expressed in "RON", unless otherwise specified)
	Note	December	December
		31,	31,
		2021	2020
Cash flow from operations:
Net profit / (loss) of the year		11,749,227	13,342,726
Adjustments for: Income tax	10	2,454,482	3,161,296

Depreciation and amortization expenses	11, 12	10,977,081	8,810,688
Charge / (Reversal) of provision for receivables	15	101,480	(251,065)
Allowances for inventories and contractual assets	13	2,727,590	2,270,360
Other provisions	21	180,498	(358,010)
Net loss on sale of fixed assets	11, 12	102,305	54,396
Financial costs	8	2,036,616	2,168,475
Other financial gains	8	(108,129)	(141)
Net gains / loss from exchange rate differences		(26,976)	(9,557)
Changes in working capital		30,194,174	29,189,167
(Increase) in trade and other receivables		(7,686,309)	(8,278,984)
(Increase) in contract assets		21,843,262	(8,339,607)
(Increase) of inventories		(34,682,189)	(1,223,177)
Increase / (Decrease) in trade and other liabilities		5,014,270	(3,728,802)
Net cash generated by operating activities		14,683,208	7,618,597
Income tax paid		(2,904,870)	(2,418,963)
Interest received		108,129	-
Interest paid		(1,821,691)	(2,167,877)
Net cash (used in) operating activities		10,064,776	3,031,757
Cash flows from investment activities:
Purchase of tangible assets*		(2,039,759)	(5,667,515)
Purchase of intangible assets		(666,174)	(680,130)
Proceeds from sale of fixed assets			20,437
Net cash (used in) investment activities		(2,705,933)	(6,327,208)
Net cash from financing activities:
Proceeds from borrowings	25	8,069,666	5,887,987
Payments related to leasing obligations*	25	(929,858)	(1,210,234)
Dividends paid	25	(686,082)	(338,729)
Net cash generated from / (used in) financing activities		6,453,726	4,339,024
Net increase / (decrease) of cash and cash equivalents		13,812,569	1,043,573
Cash and cash equivalents at the beginning of the period		5,148,791	4,105,218
Cash and cash equivalents at the end of the period		18,961,360	5,148,791

* In 2020, the payments related to the leasing obligations in the amount of RO 1,210,234, respectively the tangible fixed assets entries acquired through leasing in the amount of RON 2,294,399 were presented net on the line of loan receipts.

The financial statements were approved by the Board of Administration and authorized for issuance on March 24,2022.

CLAUDIA ANGHEL, RADU VIEHMANN,

Economic & Commercial Director CEO

TURBOMECANICA SA STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2021

(all the amounts are expressed in "RON", unless otherwise specified)

	Share capital	Reserves	Revaluation reserve	Retained earnings	Total
Balance on January 1, 2021	1,024,571,055	55,980,030	47,579,992	(1,019,815,798)	108,315,279
Profit of the year	-	-		11,749,227	11,749,227

Other comprehensive income: Actuarial gains related to the determined benefits plan, net of deferred	-	-	-	534,442	534,442
tax Total other comprehensive income for the year	-	-	-	12,283,669	12,283,669
Realization of revaluation reserves	-	-	(389,107)	389,107	-
Closingthe reported result from the adoption of IAS 29(Note 18)	(987,626,807)	(20,716,829)	-	1,008,343,636	-
Balance of December 31, 2021	36,944,248	35,263,201	47,190,885	1,200,613	120,598,947
				The financial statements were approved by the Board of Administration and authorized for
issuance	on	March		24,	2022.
CLAUDIA ANGHEL,		RADU VIEHMANN,
	Economic & Commercial Director CEO
		TURBOMECANICA SA

				STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
			FOR THE YEAR ENDED DECEMBER 31, 2021
				(all the amounts are expressed in "RON", unless otherwise specified)
	Share capital	Reserves	Revaluation reserve	Retained earnings	Total
Balance on January 1, 2020	1,024,571,055	54,799,281	35,182,370	(1,032,575,359)	81,977,346
Profit of the year	-	-		13,342,726	13,342,726
Other comprehensive income
Increase in revaluation reserves, net of the related	-	-	12,995,206	-	12,995,206
deferred tax Total comprehensive income for the			12,995,206	13,342,726	26,337,932
year Realization of revaluation	-	-	(597,584)	597,584	-
reserves Increases in other reserves	-	1,180,749	-	(1,180,749)	-

The financial statements were approved by the Board of Administration and authorized for issuance on March 24, 2022.

CLAUDIA ANGHEL, RADU VIEHMANN,

Economic & Commercial Director CEO 1. GENERAL INFORMATION TURBOMECANICA SA ("Turbomecanica" or the "Company") is a joint-stock company, incorporated in 1975, with the main activity the manufacturing of engines, mechanical assemblies and equipment for aircraft. It is a privately owned company whose shares are listed on the Bucharest Stock Exchange. The main shareholdings is as follows: Viehmann Radu – shareholding of 25.91% Ciorapciu Dana Maria – shareholding of 15.15% Romanian State Authority through the authority regarding the administration of state assets - 150 shares, shareholding of 0.00004% Other shareholders – shareholding of 58.94%. The evolution of the Company is as follows: 1975-1977- Engine production company Bucharest; 1978-1990 - Turbomecanica Bucuresti; from 20.11.1990, through GD no. 1213, the joint stock company "CompaniaComercialaTurbomecanica SA" was incorporated. After 1991, from Turbomecanica SA two companies were formed: Aeroteh SA and Micron-Turboteh SA. The company has the following revenue streams: a. MRO services for engines and mechanical assemblies for aircrafts and helicopters. The main products serviced by the Company are: Turbo engines, Viper engines, modernization of Puma helicopters, spare parts for Viper, and Turbo engines, spare parts and engines for Rolls-Royce. Turbomecanica is the only producer and approved MRO service provider of gas turbine engines and mechanical assemblies for aircrafts on the Romanian market.

b. Revenues from production of customer build to print components and spare parts under de above mentioned lincenses- the entity provides: components for aircraft and rotorcraft engines and/or mechanical assemblies by using client's tehnical documentation and spare parts for base maintenance activities to the Ministry of Defense

c. Income from the sale of materials - the sale of materials that the company has in stock. For more details on revenue recognition policies, see Note 3. The main clients of the Company are on the domestic market - the Ministry of Defense and IAR Barsov, but the company also has transactions with clients located in Europe. The average number of employees is as follows: 2021 2020

Average number of employees 501 495 THE IMPACT OF THE COVID PANDEMIC

In 2021, the Company's management analyzed the possible effects of COVID 19. The analysis revealed following conclusions :

• The Company concluded contracts and orders without significant delays; • Deliveries and execution of contracts took place without significant delays; • There were no delays in the supply chain; • There were delays in collecting receivables from customers in Italy and Germany, but they were collected in December 2021 and in the first two months of 2022; • There were no problems with supplier payments, salaries and other current debts; • The company's profitability has been maintained. The management of the Company was continuously engaged in the full and without exception implementation of the best practices and management policies, to ensure the continuity of economic activity in 2021, both in the interest of investors and in strict accordance with any measures provided by the competent authorities. All the measures taken by the company to mitigate the effects related to COVID19, were mentioned in the Current Reports published at BVB, throughout 2021.

TURBOMECANICA SA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021 (all the amounts are expressed in "RON", unless otherwise specified)

This is a free translation from the original Romanian version.

1. ADOPTION OF NEW AND REVISED INTERNATIONALFINANCIAL REPORTING STANDARDS (IFRSs)

Changes in accounting policies and adoption of revised/amended IFRS The accounting policies adopted are consistent with those of the previous financial year except for the following amended IFRSs which have been adopted by the Group as of 1 January 2021: • Interest Rate Benchmark Reform – Phase 2 – IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (Amendments)

In August 2020, the IASB published Interest Rate Benchmark Reform – Phase 2, Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, completing its work in response to IBOR reform. The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). In particular, the amendments provide for a practical expedient when accounting for changes in the basis for determining the contractual cash flows of financial assets and liabilities, to require the effective interest rate to be adjusted, equivalent to a movement in a market rate of interest. Also, the amendments introduce reliefs from discontinuing hedge relationships including a temporary relief from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component. There are also amendments to IFRS 7 Financial Instruments: Disclosures to enable users of financial statements to understand the effect of interest rate benchmark reform on an entity's financial instruments and risk management strategy. While application is retrospective, an entity is not required to restate prior periods. The amendments had no material impact on the financial statements of the Group.

● IFRS 16 Leases- C?vid 19 Related Rent Concessions (Amendment) - The amendment applies, retrospectively, to annual reporting periods beginning on or after 1 June 2020. Earlier application is permitted, including in financial statements not yet authorized for issue at 28 May 2020. IASB amended the standard to provide relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the covid-19 pandemic. The amendment provides a practical expedient for the lessee to account for any change in lease payments resulting from the covid-19 related rent concession the same way it would account for the change under IFRS 16, if the change was not a lease modification, only if all of the following conditions are met: • The change in lease payments results in revised consideration for the lease that is

substantially the same as, or less than, the consideration for the lease immediately preceding the change.

• Any reduction in lease payments affects only payments originally due on or before 30 June 2021.

• There is no substantive change to other terms and conditions of the lease.The amendment had no impact on the Company's financial statements as of December 31, 2021. %1.1%1.2 New standards and amendments to the existing standards issued but not yet effective and not early adopted • Amendment in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The amendments address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28, in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. In December 2015 the IASB postponed the effective date of this amendment indefinitely pending the outcome of its research project on the equity method of accounting. The amendments have

not yet been endorsed by the EU. • IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current (Amendments)

The amendments were initially effective for annual reporting periods beginning on or after January 1, 2022 with earlier application permitted. However, in response to the covid-19 pandemic, the Board has deferred the effective date by one year, i.e. 1 January 2023, to provide companies with more time to implement any classification changes resulting from the amendments. The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current or non-current. The amendments affect the presentation of liabilities in the statement of financial position

and do not change existing requirements around measurement or timing of recognition of any asset, liability, income or expenses, nor the information that entities disclose about those items. Also, the amendments clarify the classification requirements for debt which may be settled by the company issuing own equity instruments. 1. ADOPTION OF NEW AND REVISED INTERNATIONALFINANCIAL REPORTING STANDARDS (IFRSs) (continued)

In November 2021, the Board issued an exposure draft (ED), which clarifies how to treat liabilities that are subject to covenants to be complied with, at a date subsequent to the reporting period. In particular, the Board proposes narrow scope amendments to IAS 1 which effectively reverse the 2020 amendments requiring entities to classify as current, liabilities subject to covenants that must only be complied with within the next twelve months after the reporting period, if those covenants are not met at the end of the reporting period. Instead, the proposals would require entities to present separately all non-current liabilities subject to covenants to be complied with only within twelve months after the reporting period. Furthermore, if entities do not comply with such future covenants at the end of the reporting period, additional disclosures will be required. The proposals will become effective for annual reporting periods beginning on or after 1 January 2024 and will need be applied retrospectively in accordance with IAS 8, while early adoption is permitted. The Board has

also proposed to delay the effective date of the 2020 amendments accordingly, such that entities will not be required to change current practice before the proposed amendments come into effect. These Amendments, including ED proposals, have not yet been endorsed by the EU.

● IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and Contingent Assets as well as Annual Improvements 2018-2020 (Amendments) The amendments are effective for annual periods beginning on or after 1 January 2022 with

earlier application permitted. The IASB has issued narrow-scope amendments to the IFRS Standards as follows:

• IFRS 3 Business Combinations (Amendments)update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations.

• IAS 16 Property, Plant and Equipment(Amendments)prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost in profit or loss. • IAS 37 Provisions, Contingent Liabilities and Contingent Assets(Amendments)specify which costs a company includes in determining the cost of fulfilling a contract for the purpose of assessing whether a contract is onerous.

• Annual Improvements 2018-2020make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases.

IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (Amendments) The Amendments are effective for annual periods beginning on or after January 1, 2023 with earlier application permitted. The amendments provide guidance on the application of materiality judgements to accounting policy disclosures. In particular, the amendments to IAS 1 replace the requirement to disclose 'significant' accounting policies with a requirement to disclose 'material' accounting policies. Also, guidance and illustrative examples are added in the Practice Statement to assist in the application of the materiality concept when making judgements about accounting policy disclosures. The Amendments have not yet been endorsed by the EU.
IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (Amendments) The amendments become effective for annual reporting periods beginning on or after January 1, 2023 with earlier application permitted and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period. The amendments introduce a new definition of accounting estimates, defined as monetary amounts in financial statements that are subject to measurement uncertainty. Also, the amendments clarify what changes in accounting estimates are and how these differ from changes in accounting policies and corrections of errors. The Amendments have not yet been endorsed by the EU.

● IAS 12 Income taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments)

The amendments are effective for annual periods beginning on or after January 1, 2023 with earlier application permitted.In May 2021, the Board issued amendments to IAS 12, which narrow the scope of the initial recognition exception under IAS 12 and specify how companies should account for deferred tax on transactions such as leases and decommissioning obligations. Under the amendments, the initial recognition exception does not apply to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. It only applies if the recognition of a lease asset and lease liability (or decommissioning liability and decommissioning asset component) give rise to taxable and deductible temporary differences that are not equal. The Amendments have not yet been endorsed by the EU.

● IFRS16 Leases -C?vid 19 Related Rent Concessions beyond 30 June 2021 (Amendment)

The Amendment applies to annual reporting periods beginning on or after 1 April 2021, with earlier application permitted, including in financial statements not yet authorized for issue at the date the amendment is issued. In March 2021, the Board amended the conditions of the practical expedient in IFRS 16 that provides relief to lessees from applying the IFRS 16 guidance on lease modifications to rent concessions arising as a direct consequence of the covid-19 pandemic. Following the amendment, the practical expedient now applies to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2022, provided the other conditions for applying the practical expedient are met.

The Company anticipates that the adoption of these new standards and amendments to the existing standards will have no material impact on the financial statements of the Company in the period of initial application.

3.	SIGNIFICANT	ACCOUNTING	POLICIES

The main accounting policies are presented below: The main accounting policies applied in preparing these financial statements are presented below. These policies have been applied consistently throughout all the years disclosed, unless otherwise presented.

Statement	of	compliance
The individual financial statements have been prepared in accordance with the Order of the
Minister of Public Finance no. 2844/2016 for the approval of the Accounting Regulations compliant with the International Financial Reporting Standards, with the subsequent
modifications	and	clarifications.
Minister of Finance no. 2844/2016, as subsequently amended, is in accordance with International
Financial Reporting Standards (IFRS) adopted by the European Union, except for IAS 21 The
Effects of Changes in Foreign Exchange Rates on Functional Currency on the recognition of
revenues from green certificates, except for IFRS 15 Revenues from contracts with customers
revenues from regarding	connection fees to	the distribution network.

Basis of preparation The individual financial statements have been prepared on the historical cost basis, except for tangible assets, which are measured at revalued amount, as described in the accounting policies below. The historical cost is generally based on the fair value of the consideration given in exchange for the assets. The financial statements are presented in Romanian lei ("RON") and all values are rounded to the nearest RON, unless otherwise indicated. Going concern

The financial statements of the Company have been prepared on the basis of the principle of continuity of activity which takes into account that the Company will carry out its current activity in the future. In order to evaluate the applicability of this hypothesis, the Company's management analyzed cash flows forecasts resulting from the translation of the existing and future commercial relations. Based on this analysis, which also took into account the subsequent events mentioned in Note 29, the Management considers that the Company will continue to operate in the future and, therefore, the application of the principle of business continuity in preparing the financial statements is justified.

In 2021, the Company recorded a profit of RON 11,749,227. The company is currently dependent on working with two main local customers. The turnover with these customers for 2021 represents 90.4% of the total turnover of the company. However, the management of the Company considers that this aspect does not constitute an impediment, having orders concluded with these partners for the following periods, which ensure sufficient income. The Company also intends to start developing its activity in the civil industry, and in this sense it is considering a series of significant investments. Current versus non-current classification The Company presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is: • Expected to be realised or intended to be sold or consumed in the normal operating cycle • Held primarily for the purpose of trading • Expected to be realised within twelve months after the reporting period, or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classified as non-current. A liability is current when: ● It is expected to be settled in the normal operating cycle ● It is held primarily for the purpose of trading ● It is due to be settled within twelve months after the reporting period, or ● There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period 3. SIGNIFICANT ACCOUNTING POLICIES (continued) Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Fair value measurement

The Company measures and recognizes at fair value certain non-financial assets such land, buildings, equipment's and furniture. Also, fair values of financial instruments measured at amortized cost are estimated for disclosure purposes. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1: market prices in active markets for identical assets or liabilities

• Level 2: inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

• Level 3: inputs are unobservable inputs for the asset or liability.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between Levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. The Company's management determines the policies and procedures for both recurring fair value measurement, such as land, buildings and for non-recurring measurement, such as assets held for sale from discontinued operations. External evaluators are involved for valuation of significant assets, such as land, buildings, equipment. Involvement of external evaluators is decided upon annually by the management.

Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained.

At each reporting date, the management analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Company's policies by verifying the major inputs applied in the latest valuation and assessing the changes from the previous valuation.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the

level of the fair value hierarchy as explained above. 3. SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue recognition

IFRS 15 "Revenue from contracts with customers" introduced a comprehensive model for the recognition and measurement of income. Revenue is recognized when the customer acquires control of the goods or services provided, at the amount that reflects the price that the company expects to receive in exchange for those goods or services. Information regarding the reasoning, estimates and significant accounting assumptions regarding the revenues from the contracts with the clients is presented in the section Rationale, estimates and significant accounting assumptionsat the end of this note. The company has the following revenue streams: a. Manufacturing of engines and mechanical assemblies for aircrafts and helicopters. The main products provided by the Company are: Turbo engines, Viper engines, modernization of Puma helicopters, spare parts for Viper and Turbo engines, spare parts and engines for Rolls-Royce. Turbomecanica is the only producer of gas turbine engines and mechanical assemblies for aircrafts on the Romanian market.

The revenues are recorded based on approved contract between parties, parties being committed to perform their respective obligations. Each party's rights and payment terms can be easily identified. The payment terms range from 10 days after the goods are delivered. The contracts have commercial substance and it is probable that the entity will collect the consideration to which will be entitled in exchange for the goods or services transferred to the customer.

The performance obligations relate to distinct performance obligations represented by goods (turbines, materials).

The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods to a customer, excluding those amounts collected on behalf of third parties (e.g. some sales taxes). They include fixed amounts, as agreed between the parties. Both the terms of the contract and the entity's customary business practices need to be considered in order to determine the transaction price. The Company has distinct transaction price for each turbine delivered. It is also assumed that the goods will be transferred to the customer as promised in accordance with exiting contract. IFRS 15 requires the transaction price to be allocated to each performance obligation identified in the contract on a relative stand-alone selling price basis. There are no difficulties in allocating the price as they are clearly attributable and negotiated at the contract settlement. For fixed price contracts, the Company recognizes the revenue as it provides production related services, evaluating the stage of completion of projects. The Company transfers control over a good or service over time and, therefore, fulfills an obligation to execute and recognizes revenue over time, as the Company's execution creates or improves an asset that the client controls as the asset is created or improved. . The completion stage is determined, using the input-based method, based on the contractual costs incurred up to the end of the reporting period, as a percentage of the total estimated cost for each contract. If the outcome of a contract cannot be estimated reliably, the revenue of the contract is recognized only in line with the costs of the contract which are likely to be recoverable. When the result of a service contract can be estimated reliably and the contract is likely to be profitable, the expected profit is recorded in proportion to the degree of performance over the term of the contract. If the total costs of the contract are likely to exceed the total revenues of the contract, the estimated loss is recorded as an expense, in accordance with IAS 37 Provisions, contingent liabilities and contingent assets. The company presents as contractual assets the gross amounts owed by customers, related to the ongoing contracts, for which the costs incurred and the recognized profits (minus the recognized losses) exceed the total invoiced value of the respective contract. If the invoices issued exceed the costs incurred plus the recognized profits (less the recognized losses), the gross amounts due to customers are presented as debts related to contracts.

b. Revenues from repair services of engines and mechanical assemblies for aircrafts and helicopters- the entity provides repair services for turbines sold to Ministry of Defense.

The revenues are recorded based on approved contract between parties, parties being committed to perform their respective obligations. Each party's rights and payment terms can be easily identified. The payment terms range from 10 days after the services will be provided. The contracts have commercial substance and it is probable that the entity will collect the consideration to which will be entitled in exchange for the goods or services transferred to the customer.

The performance obligations relate to distinct performance obligations represented by repairs services satisfied over time.

3.	SIGNIFICANT	ACCOUNTING	POLICIES	(continued)
Revenue		recognition		(continued)

The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised services to a customer, excluding those amounts collected on behalf of third parties (e.g. some sales taxes). They include fixed amounts, as agreed between the parties. Both the terms of the contract and the entity's customary business practices need to be considered in order to determine the transaction price. The Company has distinct transaction price for each repair service provided. It is also assumed that the services will be transferred to the customer as promised in accordance with exiting contract. IFRS 15 requires the transaction price to be allocated to each performance obligation identified in the contract on a relative stand-alone selling price basis. There are no difficulties in allocating the price as they are clearly attributable and negotiated at the contract settlement. For fixed price contracts, the Company recognizes the revenues as the services are provided, evaluating the completion stage of the projects. The Company transfers control over a good or service over time and, therefore, fulfills an obligation to execute and recognizes revenue over time, as the Company's execution creates or improves an asset that the client controls as the asset is created or improved. The completion stage is determined using the input method, based on the contractual costs incurred up to the end of the reporting period, as a percentage of the total estimated cost for each contract. If the outcome of a contract cannot be estimated reliably, the revenue of the contract is recognized only in line with the costs of the contract which are likely to be recoverable. When the result of a service contract can be estimated reliably and the contract is likely to be profitable, the expected profit is recorded in proportion to the degree of performance over the term of the contract. If the total costs of the contract are likely to exceed the total revenues of the contract, the estimated loss is recorded as an expense, in accordance with IAS 37 Provisions, contingent liabilities and contingent assets The company presents as contractual assets the gross amounts owed by customers, related to the ongoing contracts, for which the costs incurred and the recognized profits (minus the recognized losses) exceed the total invoiced value of the respective contract. If the invoices issued exceed the costs incurred plus the recognized profits (less the recognized losses), the gross amounts due to customers are presented as debts related to contracts.

c. Revenues from the sale of materials, waste materials and other services provided. The revenues are recorded based on approved contract between parties, parties being committed to perform their respective obligations. Each party's rights and payment terms can be easily identified. The payment terms range from 10 days after the services will be provided. The contracts have commercial substance and it is probable that the entity will collect the consideration to which will be entitled in exchange for the goods or services transferred to the customer.

The performance obligations relate to distinct performance obligations represented by sales of materials and are satisfied at point in time, when the delivery takes place. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised materials to a customer, excluding those amounts collected on behalf of third parties (e.g. some sales taxes). They include fixed amounts, as agreed between the parties. Both the terms of the contract and the entity's customary business practices need to be considered in order to determine the transaction price. The Company has distinct transaction price for each material sold. It is also assumed that the materials will be transferred to the customer as promised in accordance with exiting contract. IFRS 15 requires that the transaction price be allocated to each performance obligation identified in the contract on the basis of the relative independent selling price. There are no difficulties in allocating the price, as these are clearly attributable and negotiated at the

conclusion of the contract. The entity recognizes revenue in accordance with the arrangements established at the time of delivery. For the activities performed, mentioned above in points a and b, the Company grants to its clients guarantees of good execution for a period that varies between 12 and 18 months. These fall within the scope of IAS 37 as: a. the guarantees according to the contract offer the customer the assurance that the product will work;

b. the guarantees do not provide additional services other than the assurance that the good will work according to the agreed specifications; c. customers do not have the option to purchase the warranty separately. Therefore, these guarantees do not constitute separate performance obligations, but should be recognized as provisions in accordance with IAS 37.

3. SIGNIFICANT ACCOUNTING POLICIES (continued) Trade Receivables

Trade receivables are recognized at the transaction price determined in accordance with IFRS 15. They are subsequently measured at amortised cost using the effective interest method, less loss allowance.The Company assesses at each balance-sheet date the requirement for an allowance for impairment in trade receivables. When measuring expected credit loss (hereinafter "ECL") the Company uses reasonable and supportable forward looking information, which is based on assumptions for the future movement of different economic drivers and how these drivers will affect each other. Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood of default over a given time horizon, the calculation of which includes historical data, assumptions and expectations of future conditions.

Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Company as a lessee

i) Right-of-use assets The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are presented in the statement of financial position at fair value ar revaluation date, less any accumulated depreciation and impairment lossesand adjusted for any re-measurement of lease liabilities. The initial cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease

incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term

and the estimated useful lives of the assets. The right of use of asset relates to rented cars which are depreciated over 3 years, as well as leased equipment amortised over a period between 3 to 20 years. The right-of-use assets are also subject to impairment. Refer to the accounting policies in note 3 Impairment of non-financial assets. ii) Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company's exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is re measured if there is a modification, a change in the lease

term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of equipment that are considered to be low value. Lease payments on shortterm leases and leases of low value assets are recognised as expense on a straight-line basis over the lease term.

3.	SIGNIFICANT	ACCOUNTING		POLICIES	(continued)
Foreign		currency			transactions
Functional		and		presentation	currency
	Items included in the financial statements are measured using the currency of the primary
	economic environment in which the entity operates ('the functional currency'). The financial
	statements are presented in RON, which is functional currency of Turbomecanica SA and also the
presentation					currency.
Transactions			and		balances
	Foreign currency transactions are translated into the functional currency using the exchange

rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates, are generally recognised in profit or loss.

Foreign exchange gains and losses are presented in the statement of comprehensive income on a net basis within other net foreign exchange losses/(gains). Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. The exchange rates used are EUR 1 = RON 4,9481 (December 31, 2021) and USD 1 = RON 4,3707 (December 31, 2021), average rate 2021 EUR 1 = RON 4,9204. Borrowing costs

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the

consideration paid, including any noncash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs. Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12

months after the reporting period

Employee benefits In the normal course of business, the Company makes payments to the Romanian State on behalf of its employees, for pensions, health and unemployment fund. The cost of these payments is charged to the income statement in the same period as the related salary cost. All employees of the Company are members of the Romanian State pension plan. The Company rewards its employees with retirement benefits according to the collective labor contract. For such pension plan, the cost of benefits is determined using the projected unit credit method, and actuarial assessments are performed on each balance sheet date. The Company recognizes all actuarial gains and losses arising from defined benefit plans immediately in other comprehensive income and all expenses related to defined benefit plans in personnel expenses in profit or loss. The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate, the expected inflation rate and the expected rate of salary increase. Any changes in these assumptions will impact the carrying amount of pension obligations.

3. SIGNIFICANT ACCOUNTING POLICIES (continued) Employee benefits (continued)

The Company determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Company considers the interest rates of high-quality government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension liability. Other key assumptions for pension obligations are based on current market conditions. Benefits for termination of employment contract Benefits for termination of the employment contract may be paid when the Company terminates the employment contract prior to the normal retirement date or any time the employee accepts voluntary redundancy in exchange for such benefits. The Company recognizes the benefits for termination of employment contract either when it clearly undertakes either to terminate the current employees' employment contracts according to an official plan without the realistic possibility to avoid it; or to offer benefits for terminating the employment contract further to an offer submitted to encourage voluntary redundancy. Benefits owed within more than 12 months from the reporting period are discounted on the reporting date. Taxation

Income tax expenses consist of all current taxes payable, and deferred income taxes. Current tax

The tax currently payable is based on the taxable income for the year. Taxable income differs from the income reported in the statement of comprehensive income due to items of revenues or expenses that are taxable or deductible in other years, and due to items that are never taxable or deductible. The Company's current income tax liability is determined by using the taxation rates enacted or substantively enacted by the end of the reporting period. Deferred tax

Deferred tax isrecognized based on temporary differences between the carrying value of assets

and liabilities in the financial statements and the corresponding fiscal base used in calculating

taxable income. Deferred tax liabilities are generally recognized for all taxable temporary

differences.

Deferred tax receivables are generally recognized for all taxable temporary differences if the taxable profits against which the deferred tax receivable can be used are available. No deferred tax receivables or liabilities are recognized if the temporary difference is generated by the initial recognition of goodwill or initial recognition of an asset or liability in a transaction that does not constitute a business combination and does not affect either the accounting income or taxable income upon the conclusion of the transaction (fiscal loss). The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the level of the taxes assumed to apply during the period set for the recovery of the debt or realization of the asset, considering the level of taxes (and tax laws) that are or will be in force until the end of the reporting period. The measurement of deferred assets and liabilities reflect the tax consequences that would arise from the manner in which the Company estimates, at the end of the reporting period, to recover or settle the carrying value of its assets and liabilities. Current and deferred annual tax Current and deferred tax is recognized in profit and loss unless it refers to elements recognized in other comprehensive results or directly in equity, in which case current and deferred tax is also recognized in other global income, or equity. The income tax for the year ended December 31, 2021 was 16% (December 31, 20209: 16%). Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible into known amounts of cash and which are subject to an insignificant risk of change in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position. 3. SIGNIFICANT ACCOUNTING POLICIES (continued) Property, plant and equipment

Tangible assets used in production or to supply goods or services, or for administrative purposes, are presented in the statement of financial position at fair value at the date of reevaluation less depreciation and any impairment, subsequently accumulated. Revaluations are performed with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair values at the reporting date.

Any revaluation surplus is recorded in other comprehensive income and is therefore credited to the reserve from the revaluation of equity assets, except to the extent that it includes a reduction in the revaluation of the same asset previously recognized in profit or loss and, in this case, the increase is recognized in the income statement. A revaluation deficit is recognized in the income statement, unless it offsets an existing surplus for the same asset, recognized in the asset revaluation reserve.

The revaluation surplus is transferred to retained earnings as the assets are written off/ sold. Tangible assets in progress that will be used in production or in administration are stated at cost less any impairment. Costs include professional fees and, in case of qualifying assets, borrowing costs capitalized in accordance with the Company's accounting policies. Such assets are classified under such categories of tangible assets when completed or ready for use for the purpose they were intended. The depreciation of such assets, on the same basis as other owned assets, commences when the assets are ready for use as intended by the management. The depreciation periods for tangible assets are:

Years Buildings 10-50 Installations and technological equipment 3-20

Furniture and other office equipment 3-15 Land is not depreciated. Depreciation is charged so as to systematically allocate the cost of the asset less the residual value over its estimated useful life, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective basis. Assets held under leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant lease. An item of property, plant and equipment is no longer recognized further to its assignment or when no future economic benefits are expected from the continued use of the asset. Any gain or loss resulting from the assignment or disposal of an item of property, plant and equipment is determined as the difference between proceeds from sales and the carrying value of the asset and isrecognized in the Company's profit or loss. Intangible assets Intangible assets acquired separately Intangible assets with determined useful lives and which are acquired separately are reported at cost less any subsequent accumulated amortization and any accumulated impairment losses. Amortization is charged on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each annual reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with undetermined useful lives and which are acquired separately, are reported at cost less accumulated impairment losses.

The depreciation periods for intangible assets are: Other intangible assets 1-10 ani De-recognition of intangible assets An intangible asset is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. The gains or losses from the de-recognition of an intangible asset, measured as difference between net proceeds from sale and the asset's carrying value are recognized in profit and loss when the asset is derecognized. 3. SIGNIFICANT ACCOUNTING POLICIES (continued) Impairment of tangible and intangible assets other than goodwill At the end of each reporting period, the Company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that that such assets have impaired. Should such indication exist, the Company estimates the recoverable value of the asset to determine the extent of the impairment (if any). Where the recoverable value of a particular asset cannot be estimated, the Company estimates the recoverable value of the cash generating unit to which the asset belongs. Where there can be identified a reasonable and

consistent basis of allocation, corporate assets will also be allocated to individual cash

generating units or, if not, to the smallest company of cash generating units for which a reasonable and consistent basis of allocation can be identified. Intangible assets with undetermined useful lives and intangible assets not yet available for use are tested at least annually for impairment or anytime there is an indication that the asset might be impaired.

Impairment of tangible and intangible assets other than goodwill (continued) The recoverable value means the highest of fair value minus sale costs and its value in use. When measuring the value in use, estimated future cash flows are discounted at their current value by using a discount rate determined prior to taxation, which reflects the current market assessments of the time value of money and the risks specific to the asset for which the estimates related to future cash flows have not been adjusted. If the recoverable value of an asset (or cash-generating unit) is estimated to be lower than its carrying value, then the carrying value of the asset (or the cash-generating unit) is reduced to the level of the recoverable value. Impairment is recognized immediately in profit or loss, if the relevant asset is not registered at a re-measured value, in which case the impairment is treated as reduction of re-measurement. Wherethe impairment is reversed, the carrying value of the asset (or the cash-generating unit) is increased at the level of its new estimated recoverable value, only that the increased carrying value must not exceed the carrying value that would have been established should the impairment for the asset (cash-generating unit) had not been recognizedin previous years. A reversal of impairment is immediately recognizedin profit or loss, except where the asset is accounted at revalued amount, in which case the reversal of the impairment is treated as increase of the revaluation.

Inventories

inventories, which include raw materials, finished products, semi-finished products, production in progress, are valued at the lower of cost and net realizable value. The cost of inventories includes all costs related to the acquisition and processing, as well as other costs incurred to bring the inventories in shape and in the place where they are located. The cost of finished products and production in progress includes direct production costs, namely: direct materials, energy consumed, direct labor and other direct production costs, as well as the share of indirect production costs rationally is allocated as related to manufacturing. them.

The costs of raw material are determined by the weighted average cost method. The net realizable value represents the estimated selling price during the normal development of the activity, minus the estimated costs for completion and the estimated costs necessary to make the sale.

Provisions

Provisions are recognized when the Company has a present obligation (legal or implicit) as a result of a past event, and it is probable that an outflow of resources incorporating economic benefits will be required to settle that obligation and a reliable estimate of the value of the obligation may be made. The value recognized as provision is the best estimate of the counter value required to settle the present obligation at the end of the reporting period, considering the risks and uncertainties related to the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, the carrying value thereof is the present value of such cash flows (if the effect of the time value of money is material). When expected that some or all the economic benefits required to settle a provision will be recovered from third parties, then the receivable is recognized as asset if it is almost certain that the repayment will be collected and the value of the receivable can be reliably assessed. Onerous contracts Present obligations generated under onerous contractsare recognized and measured as provisions. A contract is onerous when the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. 3. SIGNIFICANT ACCOUNTING POLICIES (continued)

Provisions (Continued)

Restructurings

A provision for restructuring costs is recognized when the Company has a detailed formal plan for the restructuring and has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it. The measurement of a provision for restructuring includes only direct expenses related to the restructuring, which mean such values that are mandatorily generated by restructuring and are not associated with the Company's ongoing activities.

Guarantees

Provisions for estimated costs of guarantee obligations according to local legislation concerning the sale of goods are recognized on the date when the relevant products are sold, at the best estimate made by the management as regards the expenses required to settle the Company's obligation.

Trade		and			other		payables
						These amounts represent liabilities for goods and services provided to the Company prior to the
						end of the financial year which are unpaid. The amounts are unsecured and are usually paid
						within 30 days of recognition. Trade and other payables are presented as current liabilities
						unless payment is not due within 12 months after the reporting period. They are recognised
						initially at their fair value and subsequently measured at amortised cost using the effective
						interest method. In this category are also included non-trade liabilities such as VAT and social
						securities recognized at the best estimate of the expenditure required to settle the present
obligation	at	the	end	of	the	reporting	period.
Financial			assets		and		liabilities
						Financial assets and financial liabilities are recognized when the Company becomes a party in
the	contractual		provisions		of	the	instrument.
Financial							assets
Initial		recognition			and		measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the entity's business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the company has applied the practical expedient, the company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the company has applied the practical expedient are measured at the transaction price.

In order for a financial asset to be classified and measured at amortized cost or fair value through the OCI, it must give rise to cash flows that are "excluding principal and interest payments (SPPIs)" of the outstanding principal amount. This assessment is called the SPPI test and is performed at the instrument level. Non-SPPI cash-flow financial assets are classified and measured at fair value through profit or loss, regardless of business model. The Company's business model for managing financial assets refers to how it manages deal with its financial assets

in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortised cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling. Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories: 1. Financial assets at amortised cost (debt instruments) 2. Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)

	3. Financial assets designated at fair value through OCI with no recycling of cumulative gains
and	losses	upon			de-recognition	(equity			instruments)
4.	Financial	assets	at	fair	value	through	profit	or	loss
3.	SIGNIFICANT			ACCOUNTING		POLICIES			(continued)
Financial		assets		and		liabilities			(continued)
Financial		assets			at	amortised			cost

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. The effective interest method is a method of calculating the amortized cost of a financial instrument and of allocating interest over the relevant period.

The Company's financial assets at amortised cost includes trade receivables. The Company does not hold any financial assets at fair value through OCI or profit or loss. De-recognition

Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership. Impairment

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate.

For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company performed an assessment at year end and no material difference arise in applying ELC model and current accounting policy by allowing receivables older than 270 days. The company clients operate in state owned companies from public sector, thus there is a remote risk of default and also the average collection is 22 days. Significant increase in credit risk In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Company compares the risk of a default occurring on the financial instrument at the reporting date with the risk of a default occurring on the financial instrument at the date of initial recognition. In making this assessment, the Company considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. Forward looking information considered includes the future prospects of the industries in which the Company's debtors operate, obtained fromeconomic expert reports, financial analysts, governmental bodies, relevant think-tanks and other similar organisations, as well as the consideration of various external sources of actual and forecast economic information that relate to the Company's core operations. Significant increase in credit risk In particular, the following information is taken into account when assessing whether credit risk has increased significantly since initial recognition: • an actual or expected significant deterioration in the financial instrument's external (if available) or internal credit rating; • significant deterioration in external market indicators of credit risk for a particular financial

instrument • existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor's ability to meet its debt obligations;

• an actual or expected significant deterioration in the operating results of the debtor;

• significant increases in credit risk on other financial instruments of the same debtor; and

• an actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor's ability to meet its debt obligations.

Irrespective of the outcome of the above assessment, the Company presumes that thecredit risk is remote as the greatest part of company balance of accounts receivables consists of four main clients which are state owned, the average collection period is 20 days, thus there is limited risk of material credit losses. Despite the foregoing, the Company assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have low credit risk at the reporting date. 3. SIGNIFICANT ACCOUNTING POLICIES (continued) Financial assets and liabilities (continued) A financial instrument is determined to have low credit risk if: 1. the financial instrument has a low risk of default;

the debtor has a strong capacity to meet its contractual cash flow obligations in the near term; and
adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations. The Company considers a financial asset to have low credit risk when the asset has external credit rating of investment grade in accordance with the globally understood definition or if an external rating is not available, the asset has an internal rating of 'performing'. Performing means that the counterparty has a strong financial position and there is no past due amounts.

For financial guarantee contracts, the date that the Company becomes a party to the irrevocable commitment is considered to be the date of initial recognition for the purposes of assessing the financial instrument for impairment. In assessing whether there has been a significant increase in the credit risk since initial recognition of a financial guarantee contract, the Company considers the changes in the risk that the specified debtor will default on the contract. The company does not have financial guarantee contracts. The Company regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the amount becomes past due.

Definition of default The Company considers the following as constituting an event of default for internal credit risk management purposes as historical experience indicates that financial assets that meet either of the following criteria are generally not recoverable: • when there is a breach of financial covenants by the debtor; or • information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Company, in full (without taking into account any collateral held by the Company). Irrespective of the above analysis, the Company considers that there is limited probability of default for the existing clients, as mentioned above there is a high concentration of three state owned clients, the average number of collection days is 22 days, no default occurred in the last years and few chances to occur as the clients are stated owned acting in defence industry. Credit-impaired financial assets A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events: a. significant financial difficulty of the issuer or the borrower; b. a breach of contract, such as a default or past due event;

c. the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty,

d. having granted to the borrower a concession that the lender would not otherwise consider; e. it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or

f. disappearance of an active market for that financial asset because of financial difficulties. Write-off policy

The Company writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or in the case of trade receivables, when the amounts are over three years past due, whichever occurs sooner. Financial assets written off may still be subject to enforcement activities under the Company's recovery procedures, taking into account legal advice where appropriate. Any recoveries made

are	recognised	in	profit	or	loss	within	other	gains	or	losses	line.
3.	SIGNIFICANT			ACCOUNTING				POLICIES	(continued)
Financial			assets		and		liabilities			(continued)
	Measurement	and		recognition		of	expected		credit		losses

The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information as described above. As for the exposure at default, for financial assets, this is represented by the assets' gross carrying amount at the reporting date; for financial guarantee contracts, the exposure includes the amount drawn down as at the reporting date, together with any additional amounts expected to be drawn down in the future by default date determined based on historical trend, the Company's understanding of the specific future financing needs of the debtors, and other relevant forward-looking information. For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate. For a lease receivable, the cash flows used for determining the expected credit losses is consistent with the cash flows used in measuring the lease receivable in accordance with IFRS 16.

For a financial guarantee contract, as the Company is required to make payments only in the event of a default by the debtor in accordance with the terms of the instrument that is

guaranteed, the expected loss allowance is the expected payments to reimburse the holder for a credit loss that it incurs less any amounts that the Company expects to receive from the holder, the debtor or any other party. If the Company has measured the loss allowance for a financial instrument at an amount equal to lifetime ECL in the previous reporting period, but determines at the current reporting date that the conditions for lifetime ECL are no longer met, the Company measures the loss allowance at an amount equal to 12-month ECL at the current reporting date, except for assets for which the simplified approach was used. The Company recognises an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognised in other comprehensive income and accumulated in the investment revaluation reserve, and does not reduce the carrying amount of the financial asset in the statement of financial position. De-recognition of financial assets The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds

On de-recognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognised in profit or loss. In addition, on de-recognition of an investment in a debt instrument classified as at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified to profit or loss. In contrast, on de-recognition of an investment in an equity instrument which the Company has elected on initial recognition to measure at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is not reclassified to profit or loss, but is transferred to retained earnings. Financial liabilities

received.

Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company's financial liabilities include trade and other payables and loans and borrowings including short term bank loans and loans from shareholders.

3.	SIGNIFICANT		ACCOUNTING	POLICIES	(continued)
Financial		assets	and	liabilities	(continued)
Subsequent					measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories: • Financial liabilities at fair value through profit or loss • Financial liabilities at amortised cost (loans and borrowings) Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IFRS 9, Financial instruments. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognised in the statement of profit and loss. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9, Financial instruments are satisfied. The Company has not designated any financial liability as at fair value through profit or loss. Financial liabilities at amortised cost (loans and borrowings)

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of comprehensive income. This category generally applies to interest-bearing loans and borrowings. De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss. Segment reporting

A segment is a part of the Company that is involved in activity segments from which it can obtain revenues and register expenses (including revenues and expenses corresponding to transactions with other parts of the same entity), whose operating results are regularly followed by the Company's management in order to made decisions on the resources to be allocated to the segment and assess its performances and for which separate financial information is available. Segment information is disclosed regarding the company's activity segments and are established based on the Company's management and internal reporting structure. Settlement prices among segments are set objectively. The results, assets and liabilities related to a segment include elements that may be allocated directly to one segment, and elements that may be allocated on a reasonable basis. Capital expenses related to a segment represent the total costs registered over the period for purchasing tangible and intangible assets.

3.	SIGNIFICANT	ACCOUNTING	POLICIES	(continued)
Financial	assets	and	liabilities	(continued)
Financial		assets		(continued)
Contingent		assets	and	liabilities
A	contingent		liability	is:
		• a possible obligation that arises from past events and whose existence will be confirmed only

by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company; or

• a present obligation that arises from past events that is not recognized because:

• it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

• the amount of the obligation cannot be measured with sufficient reliability. Contingent liabilities are not recognized in the Company's financial statements, but disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. A contingent asset is not recognized in the Company's financial statements, but disclosed when an inflow of economic benefits is probable. Subsequent events

Events occurring after the reporting date 31 December 2021, which provide additional information about conditions prevailing at the reporting date (adjusting events) are reflected in the financial statements. Events occurring after the reporting date that provide information on events that occurred after the reporting date (non-adjusting events), when material, are disclosed in the notes to the financial statements. Critical accounting judgements Events occurring after the reporting date, respectively 31 December 2021, which provide additional information on the conditions prevailing at the reporting date (events requiring adjustments) are reflected in the financial statements. Events occurring after the reporting date

that provide information about events that occurred after the reporting date (events that do not require adjustments), when significant, are presented in the notes to the financial statements. Other information regarding the Company's exposure to risks and uncertainties is included in:

• Risk management policies (Note 25); • Information on sensitivity analyzes (Note 25). The following are the critical reasoning that management has made in the process of applying the Company's accounting policies and which have a significant effect on the carrying amounts recognized in the financial statements. i) Recognition of contract revenues As presented above, in the Revenue Recognition section, IFRS 15 has introduced a comprehensive model for revenue recognition and measurement, which requires critical reasoning as well as significant estimates. The critical reasonings made by the Company's management are

on the one hand, related to the determination of the method of income recognition for the activities carried out.

Following a comprehensive analysis, the Company determined that the revenues related to the main activities consisting in the manufacture and repair services of engines and mechanical assemblies are recognized as the assumed obligations, is performed,fand for the other activities recognition at the time of delivery of the obligation. The reasoning applied is presented in the section Revenue recognition IFRS 15. Also, as part of this analysis, the Company's management determined that the use of the input-based method in determining the degree of satisfaction of the assumed obligations is adequate, taking into account the specific activities. - on the other hand, related to the identification of contracts that meet the criteria for recognizing IFRS 15.

3. SGNIFICANT ACCOUNTING POLICIES (continued) Critical accounting judgements (Continued) Thus, based on the analysis performed, it was established that collaboration protocols and framework contracts concluded with the main clients do not meet, individually, the criteria and

definitions of a contract according to IFRS 15, but only together with other subsequent agreements. The company also analyzed the accountingtreatment applied to the activities carried out in anticipation of future contracts and the costs incurred with the manufacture or repair of mechanical assemblies until the contractual agreements meet the criteria established by IFRS 15. Based on this analysis, it was determined that these costs falls within the scope of the IAS 2 Inventories standard, and therefore the eligible costs mentioned in the Inventories section are capitalized in the production in progress until the beginning of the contract. At the beginning of the contract, these costs are recognized in income on a cumulative basis, thus reflecting the work already performed. The following describes significant estimates and assumptions about future events and other sources of uncertainty at the reporting date, which present a major risk of leading to significant adjustments to the carrying amount of assets or liabilities during the next financial year. The company bases its estimates and assumptions on the parameters available at the date of preparation of the financial statements. However, existing circumstances and assumptions regarding future periods may be subject to change in the context of changes in market conditions or other factors beyond the Company's control. Such changes are reflected in the assumptions as they occur. The basic estimates and assumptions are constantly reviewed. Revisions to accounting estimates are recognized prospectively. In the process of applying the Company's accounting policies, the management used the following significant estimates and assumptions: i) Revenue recognition - the degree of fulfillment of the obligations assumed in the contracts with the clients The company recognizes the revenues from manufacturing and repair services depending on the degree of fulfillment of the obligations assumed by the individual contracts. The degree of fulfillment of the assumed obligations is determined by reporting the cost incurred until the end of the reporting period on each individual execution obligation to the estimated total cost of the project. Management's estimate of total budgeted costs is based primarily on pre-calculations performed by the technical department at the beginning of the project and subsequently revised, as appropriate, to the effect of significant changes indicated by the project managers. Given the nature of the activities carried out, the date on which the contractual activity begins and the date on which the activity is completed are usually within different accounting periods. Starting with 2021, the Company periodically analyzes and revises the estimation of contractual

revenues and costs, both in the calculation prepared for each individual contract, as the contract progresses. In 2021, the Company recognized in revenue RON 3,644,565 in correspondence with

the contractual assets, representing the net margin related to the contracts in progress on December 31, 2021, calculated based on the degree of fulfillment of the assumed obligations, as well as provisions for onerous contracts in the amount of 676,153 RON. In previous years, contractual assets were recognized only at the level of costs incurred. ii) Lifetime of tangible and intangible fixed assets The Company reviews the estimated useful lives of tangible and intangible assets at the end of each annual reporting period. Lifespans are shown below. In 2021, there were no changes in the useful lives of tangible and intangible assets. iii) The fair value of property, plant and equipment The company reflects the land, buildings and equipment held at fair value. It is reviewed with sufficient regularity to ensure that the net carrying amount does not differ materially from the fair value of those assets. The valuation of tangible assets is usually performed with the help of independent experts, the last valuation taking place on December 31, 2020. The fair value is determined using the market value method for real estate and movable property for which there is a market on which they can be traded, and the net replacement cost method for specialized assets for which there is no market on which they can be capitalized. For specialized real estate, two methods were considered, the determination of the new cost, adjusted with the related wear and tear, as well as the income approach. When applying the income approach, the value of the asset in question is determined by discounting the cash flows that could reasonably be obtained from the operation. The main assumptions for performing the valuation, using the discounted value method, are represented by the estimated cash flows and their discount rate. In 2021, based on the evolution of the real estate and furniture market, it was not considered necessary to update the valuation for tangible fixed assets. iv) Inventory provisions At the end of each reporting period, the Company considers whether the provisions for slow-

moving stocks are sufficient. The policy for the provision of slow-moving stocks is detailed in Note 13. The assumptions and depreciation rates applied were determined by the company's management based on analyzes performed by the Company's technicians and engineers. Note 13 shows the movements in the value of provisions for inventories during the year.

3.	SGNIFICANT		ACCOUNTING	POLICIES		(continued)
Critical		accounting		judgements		(Continued)
v)	Obligations		related		to	pensions
						The present value of pension obligations depends on a number of factors established on an
						actuarial basis using a number of assumptions. Any modification of these assumptions,
						presented in detail in Note 21, will influence the book value of the pension obligations. The
						obligations related to pensions as of December 31, 2021 are in the amount of RON 1,150,356.
						(December 31, 2020: RON 1,800,095). The value was determined by Gelid Actuarial Company
						S.R.L. based on the contract for consulting and provision of actuarial services concluded in 2021.
vi)	Profit	tax		and	deferred	tax
						The company is subject to corporate income tax in one jurisdiction (Romania). There are many
						transactions and calculations for which the final determination of the tax is uncertain. The
						company records provisions, if any, for possible future consequences of tax inspections. If the
						final fiscal result of these aspects is different from the amounts initially registered, the
						respective differences will have an impact on the receivables and debts regarding the current
						and deferred profit tax in the period in which the respective difference appears.
						The company also calculates deferred tax, as set out in Note 10. The company has not recorded
						deferred tax in connection with value adjustments on inventories, considering, based on the
						analysis performed, that they do not generate a temporary difference, according to the
						standard. The company has old stocks of components, specific for helicopters and airplanes.
						These include special materials, whose scrapping / sale requires the observance of very strict
						procedures; these are difficult to acquire from the market, and considering the specific activity
						of the Company, the management does not intend to capitalize on them by selling / scrapping
and	may	need	them	in	future	works.
4.	INCOME	FROM		CONTRACTS	WITH	CLIENTS

4.	INCOME		FROM			CONTRACTS		WITH	CLIENTS
Below,	an	analysis	of	the	Company's	income	for	the	financial	year:
					December 31,		December 31,
						2021		2020
						RON		RON
Recognised		over	the	time
		Income from the sale of finished products			39,417,810			36,827,898
		Incomes from rendering of repair services			90,120,845		85,931,742

Recognised	at	delivery	moment	124,718	780,468
			Income from the sale of merchandise
Income	from	services	provided	1,365,210	1,307,855
Income	from	other	activities	1,513	1,513
			Income from the sale of residual products	301,069	139,561
Total				131,331,165	124,989,037

During 2020, the revenues related to the partially fulfilled execution obligations were recognized at cost. Starting with 2021, the Company performed an analysis of the contracted obligations, which allowed it to recognize these revenues at cost plus the associated margin. The price allocated to the unfinished execution obligations (unsatisfied or partially unsatisfied) related to the revenues from the manufacturing and repair contracts at the end of the reporting period is RON 47,250,144. The remaining performance obligation is expected to be recognized within one year of the end of the reporting period.

5. RAW	MATERIALS,		CONSUMABLES	AND		UTILITIES
		December 31,	December 31,
		2021	2020
Expenses with raw materials		32,497,885	31,265,637
with Expenses	utilities	3,361,973	2,795,452
Expenses with auxiliary materials		3,585,858	3,340,622
material Other	expenses	2,235,245	2,337,043
Packaging	expenses	59,112	57,466
of goods Cost	sold	103,750	628,478
Total		41,843,823	40,424,698
1.		EMPLOYEE				BENEFITS
	December 31,	December 31,
		2021	2020
Salaries	51,126,046		47,757,668
Social security contributions	2,282,522		2,027,208
Total	53,408,568		49,784,876
OTHER 7.	OPERATING	EXPENSES	AND		INCOME,	NET
		December 31,		December 31,
		2021		2020
		RON		RON
Services provided by third parties		3,462,342		3,931,136
operating Other	expenses	2,010,271		748,795
operating Other	income	(1,349,869)		-
Duties and	taxes	926,064		984,995
Repairs		1,401,585		1,042,411
Advertising, publicity and protocol		496,017		378,484
Insurance	premiums	155,671		350,156
Secondment		91,180		66,920
Rental	expenses	89,152		53,686
Employee	training	85,189		672,070
Transport	expenses	773,984		215,149
Total,	net	8,141,586		8,443,802
8.	NET		FINANCIAL			COSTS
	December 31,	December 31,
	2021		2020
Interest expense	1,657,579	1,736,687
commissions Bank	63,089		70,255
Other financial expenses	315,948	294,614
Other financial income	-		9,357
Interest income	(108,129)		(161)
Total	1,928,487	2,110,752

9. GAINS AND LOSSES FROM SALE OF ASSETS AND OTHER GAINS AND LOSSES

						December 31, 2021			December 31, 2020
						RON			RON
Net gain		on foreign		exchange		26,975			(9,557)
benefits,		Movement of provisions, for current assets, employee andother		provisions		(3,009,568)			(1,661,284)
Other	gains	and	losses,	net		14,380			(197,628)
		Other gains and losses from sale of assets				(102,305)			(33, 982)
Total						(3,070,518)			(1,902,451)
The change in provisions is mainly influenced by the change in the stock provision (RON 2.7 million).
10.				INCOME					TAX
2021and In The	income	2020, tax	the recognized	income	tax in	rate profit		was or	16%. loss:
		December 31, December 31,
		2021		2020
Income	tax	3,201,232		3,161,296
Deferred income tax		(746,750)		-
Total		2,454,482	3,161,296
Reconciliation		of		current			income		tax:
				December 31, December 31,
					2021		2020
Profit	before		taxation	14,203,708			16,504,022
Income		tax	(16%)	2,272,593			2,640,644
		Non-deductible expenses/ Non-taxable income			657,167		973,704
Tax			deductions		(475,278)		(453,052)
Income	tax		expense	2,454,482			3,161,296
Effective		tax	rate		17.28%		19.15%
Non-deductible expenses mainly include non-deductible depreciation and provisioning expenses. Non-deductible	income	consists NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021		mainly of TURBOMECANICA SA		reversals	of		provisions.
		(all the amounts are expressed in "RON", unless otherwise specified)
		This is a free translation from the original Romanian version.		1
10.		INCOME			TAX				(continued)
deferred The		income tax	in	2021	and	2020	is	as	follows:
	Balance as	Recognized		Recognized	Balance as	at	Recognized		Recognized	Balance as at
	at January	through		through other	December		through		through other	December
	2020	1, profit or loss		comprehensive income		31,	profit or	loss	comprehensive income	31,
						2020				2021
Tangible	(2,158,761)		-	(2,475,277)	(4,634,038)					- (4,634,038,)
assets Obligations
related to
employee									(101,798)	(101,798)
benefits
Provisions								746,750		746,750
tax Net asset/ (liability)	(2,158,761)		-	(2,475,277) (4,634,038)			746,750			(101,798) (3,989,086)

In 2021, the Company recorded a deferred tax related to earnings from pension provisions recorded through comprehensive income and a deferred income tax related to provisions for bonuses, unpaid leave, guarantees and valuable aids from customers. In 2020, the Company

recorded a deferred tax related to revaluation reserves in the amount of RON 2,475,277. No deferred tax was recognized for inventories, based on the reasoning set forth in Note 3. Deferred tax consists of:

		Assets		Liabilities		Net
	31- Dec-21	31- Dec-20	31-Dec-21	31-Dec-20	31-Dec-21	31-Dec-20
Tangible assets	-	-	(4,634,038)	(4,634,038)	(4,634,038)	(4,634,038)
Employee benefits liabilities	-	-	(101,798)	-	(101,798)	-
Provisions	746,750	-		-	746,750	-
Net tax (asset)/ liability	746,750				- (4,735,836) (4,634,038) (3,989,086) (4,634,038)

Deferred tax liabilities and assets are expected to be recovered over a period longer than 12 months.

11.	PROPERTY,PLANT		AND		EQUIPMENT
	Land	Buildings and other constructions	Technical installations and machinery	Furniture, equipment, office supplies, protective equipment	Tangible Assets in progress	Total
COST
January 1, 2020	18,794,996	12,008,084	35,390,687	219,967		344,779 66,758,513
Additions	-	-	2,294,495	-	4,956,754	7,251,249
Transfers	-	1,220,454	2,011,812		39,518 (3,271,784)	-
Disposals	-	-	(241,717)	(383)	-	(242,100)
pending Additions supply Increases/ from (reductions) in revaluation, correspondence with the reserve valuation, from respectively through the global situation income Elimination of on depreciation	- (2,152,085) -	- 2,050,228 (1,635,235)	- 15,311,491 (15,606,956)	- 63,357 (95,188)	-	- 15,272,991 - (17,337,379)
revaluation
Additions / (disposals) revaluation from	(2,152,085)	414,993	(295,465)	(31,831)	-	(2,064,388)
December 31, 2020 18,642,911		13,643,530	39,159,811			227,271 2,029,751 71,703,273
Additions	-	96,181	125,817	-	3,763,062	3,985,061
Transfers	-	-	2,911,443		304,461 (3,215,904)	-
Disposals	-	-	(2,227,594)*	(3,610)	-	(2,231,204)
pending Additions supply	-	-		-	-	-
Additions / (disposals) revaluation from	-
December 31, 2021 16,642,911		13,739,711	39,969,477			528,122 2,576,909 73,457,130
ACCUMULATED DEPRECIATION
January 1, 2020	-	912,851	10,319,739	60,503		- 11,293,093
Depreciation for the year	-	722,384	5,454,133	35,035	-	6,211,551
	-	-	(166,915)	(351)	-	(167,266)

Accumulated
depreciation related
to outflows
Disposals due to revaluation	-	(1,635,235)	(15,606,956)	(95,188)		- (17,337,378)
December 31, 2020	-	-	-	-	-	-
Depreciation for the year	-	583,280	9,230,538	106,626	-	9,920,444
Accumulated
depreciation related	-		(46,716)		-	(46,716)
to outflows
Disposals due to revaluation	-				-
December 31, 2021	-	583,280	9,183,822	106,626	-	9,873,728
NET BOOK VALUE	-	-	-	-	-	-
December 31, 2020 16,642,911		13,643,531	39,159,811			227,272 2,029,751 71,703,273
December 31, 2021 16,642,911		13,156,431	30,785,655			421,496 2,576,909 63,583,402
1.

PROPERTY, PLANT AND EQUIPMENT (continued) * Disposals from technical installations include equipment in the amount of RON 1,856,572, which was returned to the supplier because it did not work properly. This is a non-cash outflow for the cash flow statement. Also, during the year, two equipments were transferred from stocks in the amount of RON 1,719,692

Fair value measurement of the Company's freehold land and buildings The Company's freehold land, buildings, equipment's and furniture are stated at their revalued amounts, being the fair value at the date of revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value measurements of the Company's freehold land and buildings as at 31 December 2020 were performed by Neoconsult Valuation, independent valuation consultant not related to the Company. Neoconsult Valuation are members of the Institute of Valuers of Romania, and they have appropriate qualifications and recent experience in the fair value measurement of properties in the relevant locations. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The valuation report has been drawn up for the land, buildings, plant, equipment, vehicles, furniture and human and material protection equipment located in the same place. The valuation techniques used were market approach and for specialised properties where the market information available was insufficient, the Company used the net replacement cost method. To determine the final value, the valuer also used the cost and income approach The categorization per level of fair value as per IFRS 13 is as follows:

Level 1 no asset can be included in this category, as there is no active market (transactions) for identical assets where unadjusted prices can be used and accessed by the entity and the appraiser at the valuation date
Level 2 not used, as it could be determined any inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

● Level 3 – land, buildings and equipment's were valued using income and cost approach.

For land and buildings, cost and income approach were used. Regarding cost approach it was estimated a gross replacement cost. The replacement cost was determined using the guidance established by Cornel Schiopu in the valuation guide "Reconstruction costs - replacement costs, industrial, commercial and agricultural buildings" Ed. Iorval, 2010 adjusted with updated indexes for August 2020- July 2021. The gross replacement cost was diminished by the estimated accumulated depreciation.

Income approach supposed estimation of gross operational result, estimating the capitalization rate related to net operating income, conversion of gross operational result to buildings value using formulae: Gross operational result / capitalization rate related to net operating income. The estimation of the gross operating income was made as follows:

• it was estimated a monthly rent obtainable of 6 euro / sqm for Central Warehouses andrenovated general warehouses (office space)

• an estimated monthly rent of 4 euro / sqm was estimated for the thermal treatment hall, a monthly rent of 3.5 euro / sqm for turbo engine test stand, monthly rent of 3 euro / sqm for storage spaces and 2 euro / sqm for other spaces • the potential gross income was estimated as the rent obtainable for 12 months; • an occupancy rate of 90% was estimated and the actual gross income was estimated. The cost approach was used for the equipment. Underlying the cost approach is the principle of substitution: a prudent buyer will not pay more for aproperty, a machine than the cost of acquiring a replacement property or equivalent machine.

The principle can be applied to either an individual asset or a machine, an entirely complex installation.

11. PROPERTY, PLANT AND EQUIPMENT (continued) The principle of the method consists in correcting the replacement value (again) with the real degree of depreciation, the stages necessary to be covered being:

● Determining the replacement value (according to the definition: The replacement value is the value in undiminished condition of a fixed means, at the place of use, ready to be put into operation. It includesall expenses that should be incurred at the date of evaluation for the replacement of equipment considered in a new state, with technical-economic characteristics similar to the one to be evaluated) by one ofrecommended methods (estimate, cost-capacity, index).

The replacement value was obtained through a capacity cost assimilation starting from the quotation again and by the index method. For some of the equipment (of those with a more active market) quotations ofmarket were taken from the bids attached to the report. Details of the Company's freehold land and buildings and information about the fair value hierarchy as at the end of the reporting period are as follows:

			Level 3	Fair value as at 31/12/2021
			RON	RON
Land			16,642,911	16,642,911
Buildings			13,156,431	13,156,431
Technical installations and machinery			30,785,655	30,785,655
Equipment's	and	vehicles	421,496	421,496
Pledged		or		mortgaged	assets

As of December 31, 2021, the Company has pledged or mortgaged depreciable tangible assets in the net book value of RON 21,646,953 (December 31, 2020: RON 12,719,882) and land in the amount of RON 16,020,708 (December 31, 2020: RON 16,020,708). The right to use certain assets Included in the tangible fixed assets presented are also assets representing the right to use some machines and equipment in the amount of RON 5,208,283 as of December 31, 2021 (December 31, 2020: RON 7,459,540); the depreciation expense for the year 2021 was RON 443,716 (December 31, 2020: RON 248,153). See Note 25 for movements in leasing liabilities. 13. INTANGIBLE ASSETS

					Other intangible assets	Intangible assets in progress	Total
COST
As	at	December	31,		201920,600,192		67,109 20,667,301
Additions					1,522,211	25,688	1,547899
	Disposals				(842,082)	-	(842,082)
As	at	December	31,		202021,280,321		92,796 21,373,118
Additions					-	666,173	666,173
	Disposals				758,971	(758,971)	-
As	at	December	31,		202122,039,292		- 22,039,292
ACCUMULATED AMORTISATION
As	at	December	31,		201917,301,265		- 17,301,265
	Amortization	for	the	year	2,742,841	-	2,742,841
		Accumulated amortization related to outflows			-	-

					- 20,044,106
for		year	1,056,637	-	1,056,637

					- 21,100,743
BOOK		VALUE
		2020		92,796	1,329,012
		2021	938,549	-	938,549
at Amortization at at at	December December December December	31, the 31, 31, 31,	Accumulated amortization related to outflows	202020,044,106 202121,100,743 1,236,215

Intangible assets are represented by: 1. SAP-ERP software. The payback period for these software programs is 3 years. The net book value of ERP as of December 31, 2021 is RON 415,282 (December 31, 2020: RON 446,405). 2. Assets related to leasing rights in accordance with IFRS16, value remaining at 31.12.2021: RON 47,901 (December 31, 2020: RON 191,606), remaining life 4 months. 3. IT licenses, value remaining on 31.12.2021: 420,411 RON (31 December 2020: 465,928 RON) with useful lives of 12 - 36 months. 4. Commercial licenses, the value remaining on 31.12.2021: 54,953 RON (31 December 2020: 92,797 RON) with a lifespan of 12 months. 1.

2. INVENTORIES

		December 31, 2021	December 31, 2020
		RON	RON
Raw	materials	40,169,839	30,741,426
Consumables		2,529,041	2,223,863
Packaging		30,324	33,611
Finished	goods	5,296,567	1,583,010
Work in progress		15,424,099	-
Semi-finished goods		13,551,886	9,467,657
Residual	products	151,132	141,275
Merchandise		449	-
Inventory allowances		(17,811,415)	(13,017,671)
Total		59,341,922	31, 173,171

* In the financial statements for the year ended December 31, 2020, the value of semi-finished products was included in the line of raw materials. In 2020, the Company presented the production in full execution on the line of contracted assets, including the related provision. Following a comprehensive analysis conducted in 2021, it was established that this classification was not applicable to the entire production in progress. The change was made only prospectively, a restatement of the previous balances requiring a detailed analysis of the production component in stock, which could not be performed until the date of these financial statements. Obsolete raw materials were adjusted as follows: by 100% inactive inventories in the last 5 years (or more), by 70% inactive inventories in the last 4 years and by 50% inactive inventories in the last 3 years. Inactive inventories in the last 2 years have not been adjusted since most manufactured products have long cycle of use. To adjust slow moving inventories, only those materials that registered outflows in 2021 have been taken into account, and inventories as at 31.12.2020 and 31.12.2021 were different from zero. The rate was calculated as the ratio between the average inventories (as at 31.12.2020 and 31.12.2021) and 2020outflows. The adjustments were calculated according to the size of rate: 30% for a rate equal to 3, 70% for a rate equal to 4 and 100% for a rate equal to 5 (and higher). Inventories of raw materials and consumables managed by DPPV – Finished parts VIPER; DPRP – Repaired parts; DPMP – hazardous materials, intended only for the manufacturing and repair or VIPER 632-41 aircraft parts and engines, were 100% provisioned. The Company also assessed and recorded, as appropriate, any adjustments to determine net realizable value in accordance with IAS 2. The movement of allowances for inventory impairment is as follows:

December 31,	December 31,
2020	2021
RON	RON

			Balance at the beginning of the year				(13,017,671)	(11,732,851)
--	--	--	--------------------------------------	--	--	--	--------------	--------------

Increase/Decrease of allowances in profit or loss (1,949,587) (1,284,820)

Balance at the end of the year (14,967,258) (13,017,671)

The increase in allowance per types of inventories can be presented as follows for 2021:
Inventory		type		Variationin allowance	2021		Variation in allowance	2020
Raw		materials		1,756,879				1,780,583
Consumable				254,590				143,320
Finished goods and Residuals products				52,779				(709,725)
Packages				(114,661)				70,642
Total				1,949,587				1,284,820
13.			INVENTORIES					(continued)
The movement within the adjustments for the depreciation of the stocks related to the
production	in		progress	is		the		following:
						December 31,2021 December 31,2020
					RON		RON

Balance at the beginning of the year			-	-
of Transfer	contractual	assets	(2,066,371)	-
Provision increase recognized in profit and loss			(777,786)
Balance at the end of the year			(2,844,157)	-
15.		ASSETS
	December 31,2021 December 31,2020
			RON	RON
Repairs and production contracts			11,952,778	33,796,257
Loss	allowance		-	(2,066,371)
Total			11,952,778	31,729,886

Non-current - 12,128,057

Current 11,952,778 19,601,829

Amounts relating to contract assets are balances due from customers under repairs contracts that arise when the Company enters in repairs agreement with customers. Any amount previously recognized as a contract asset is reclassified to trade receivables at the point at which it is invoiced to the customer. Payment for repairs services is not due from the customer until the repairs services are complete and therefore a contract asset is recognized over the period in which the repairs services are performed to represent the entity's right to consideration for the services transferred to date. The loss allowance related to contract assets is recognized at an amount equal to lifetime ECL, simplified approach and taking into account historical default experience. Based on historical experience, given the specialized nature of the services offered, the limited number of customers and the fact that the main customers are state-owned companies, their credit risk is very low, therefore the related depreciation is considered insignificant. The depreciation presented in 2020 represents the depreciation registered for production in progress older than 3 years. In 2021, they were reclassified into stocks 16. TRADE RECEIVABLES

	December 31, 2021	December 31, 2020
	RON	RON
Trade receivables	20,520,299	12,534,851
Clients - invoices to be issued	90,382	76,346
Allowance for doubtful debts	(340,313)	(238,832)
Total	20,270,368	12,372,365
TRADE 1.		RECEIVABLES		(continued)
The movement of allowances for impairment of trade receivables is as follows:
		December 31,	December 31,
		2021	2020
Balance at the beginning of the year		238,832	489,897

(Decrease) / Increase of allowance in profit or loss						101,481	(251,065)
Balance	at	the	end	of	the	year	340,313	238,832

The company allowed in proportion of 100% the receivables which exceed 270 days because the historical experience indicated that these receivables are generally not recoverable. The company writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or when the trade receivables are over two years past due, whichever occurs earlier. None of the trade receivables that have been written off is subject to enforcement activities. The company carried out the assessment on the ECL approach and no significant difference was found because the company operates in the defense industry, where the main customers are state-owned companies that do not have payment problems. The average number of collection days is 22. The increase in the balance of receivables at the end of the year is due to the completion of a large number of orders by the end of the year that were invoiced in the last month. These were subsequently collected as there was no risk regarding the increased balance as of December 31, 2021.

16.		OTHER
		December 31,	December 31,
		2021	2020
Sundry	debtors	45,911	154,781
Prepaid	expenses	272,940	406,997
	Advances to suppliers	907,417	1,142,156
Other	receivables	1,204,875	1,013,408

Total				2,431,143		2,717,342
17.		CASH			AND December 31, December 31, 2021		2020	CASH		EQUIVALENTS
Cash	in	banks		18,902,135		5,133,632
Petty		cash			16,220		14,582
	Other cash equivalents				42,411		-
Cash	equivalents				594	577
Total				18,961,360		5,148,791
18.					SHARE					CAPITAL
The		share		capital		is		fully	paid	in:
								No. of shares	Share capital
									RON
				Share capital as at December 31, 2020				369,442,475	36,944,248
Effect	of	inflation	on	the	share	capital		987,626,807	987,626,807
								Share capital as atDecember 31, 20201,024,571,055	1,024,571,055
				Closing the reported result from the adoption of IAS 29				-	(987.626.807)

Share capital as at December 31, 2021 369,442,475 36.944.248 The share capital of the Company was inflated until December 31, 2003, the date from which the Romanian economy was no longer considered inflationary. Following the OGMS Decision 3 / 26.08.2021, in TRIM III, it was decided to close the reportedresult from the adoption of IAS 29 - debtor by reducing the corresponding amount of capital and reserves. As a result of this operation, the following items will be presented in the financial statements as follows:

a) The company's own capital in the financial statements will be of RON 36,944,248, the paid subscribed capital, registered at the Trade Register. b) The legal reserve will be reduced by RON 8,302,633 c) Other reserves will be reduced by RON 12,414,196 d) The reported result will decrease by RON 3,280 e) Also, the above adjustments are closed with the amounts previously registered in the result carried forward in the amount of RON 1,008,346,916.

When these amounts were registered (2012) they did not have any impact on the company's patrimony, respectively on the own capitals, these remaining at the value before making these registrations, because the respective amounts are canceled each other. Now (2021) when this inflation is canceled, the equity will not be changed, for the same reasons: the respective amounts are mutually canceled. 19. RESERVES

		December 31, December 31,
		2021	2020
Legal	reserves	7,388,850	15,691,483
Revaluation reserves		47,190,885	47,579,992
Other	reserves	27,874,351	40,288,547
Total		82,454,086	103,560,022

The movements in reserves during 2021 are mainly represented by the closing of the result carried foreward from IAS29 adoption (note 18). Revaluation reserves are related to revaluations performed on property, plant and equipment and cannot be distributed to shareholders until they are realized. In 2021, no legal reserve was established, as it has been established since 2017 in the amount of 20% of the share capital. In 2020, reserves were set up for the amount of reinvested profit amounting to RON 1,180,748, representing fiscal facilities. Other reserves also include the tax deductions granted for exports in the years 2000-2003 in the amount of RON 4,957,578 (their inflated value being RON 6,100,419). If the management decides to change their destination, they will be charged. Management has decided not to use these reserves so no deferred tax has been imposed on them. 20. BORROWINGS

				December 31, 2021	December 31, 2020
Short-term a.	debts	from	shareholders	4,880,000	4,880,000
Interest	payable	to	shareholders	4,880,000	4,880,000
b) Loans from banking institutions and lease entities
Secured			loans
Short-term			loans	21,909,394	13,839,726
Long-term			loans
Short-term		leasing	debts	1,105,655	1,704,812
Long-term		leasing	debts	2,055,578	4,242,854
Total loans from banking institutions and leasing entities				25,070,627	19,787,392
Total			loans	29,950,627	24,667,392
Short-term			loans	27,895,049	20,424,538

a)	Amounts	owed	to	shareholders

At the end of March 2009, the Company concluded loan contracts with shareholders to finance its operating activity as follows:

Viehmann Radu: RON 4,580,000 of which RON 4,500,000 according to Contract 178/2009 and the subsequent addenda and RON 80,000 according to short-term contract no. 538/2011, non-interest bearing.
Ciorapciu Dana Maria:RON 300,000 according to Contract 867/2012 and the subsequent addenda.

These are extended annually, by additional documents, during the year the interest related to these contracts is paid. Thus, in January 2020, the 2 contracts were extended until 31.01.2021 and additional documents were concluded, respectively AA 11 / 27.01.2020 and AA 7 / 27.01.2020. The related interest is 6.35%. In 2020, the interest due for 2020 to Mr. Viehmann Radu in the amount of 258,102 lei and to Mrs. Ciorapciu Dana Maria in the amount of 17,202 lei was paid. In January 2021, the two contracts were extended and additional documents were concluded as follows: AA 12 / 28.01.2022 and contract 178/2009 and respectively, AA 8 / 28.01.2022 to contract 867/2012.

Both additional documents extend the validity of the 2 contracts until 31.01.2022, and the gross interest rate is 5.80% / year, which includes the percentage related to the investment income tax, which currently, according to the Fiscal Code, is 10%. In 2021, the interest due for 2021 to Mr. Viehmann Radu in the amount of 236,809 lei and to Ms. Ciorapciu Dana Maria in the amount of 15,786 lei was paid. In January 2022, the two contracts were extended and additional documents were concluded as follows: AA 13 / 28.01.2022 to contract 178/2009 and AA 9 / 28.01.2022 to contract 867/2012, respectively.

Both additional documents extend the validity of the 2 contracts until 31.01.2023, and the gross interest rate is 5.46% / year, which includes the percentage related to the investment income tax, which currently, according to the Fiscal Code, is 10%.

1.		BORROWINGS
b)	Amounts	owed	to	credit	institutions
Contract			December, 31 December, 31 2021
(A) BRD	– Working Capital no. 103 BIS/28.04.2006		14,572,012	2020 5,982,312
	(D) Banca Transilvania – Working Capital no. 186/24.06.2009		7,337,382	7,857,414
			21,909,394	13,839,726

(A) BRD – Credit facility no. 103 BIS/28.04.2006 The company has a credit line and a SGB issuance facility and the opening of letters of credit with BRD which has been extended over time by additional documents.

By the Additional Act no. 60 / 22.08.2019, in addition to other modifications of the contractual terms and conditions, the bank waived the financial conditions that had to be met by the Company.
Additional act no. 62 / 28.08.2020 extended the validity period of the global financing ceiling of facility A, multi-options, non-binding, until 31.08.2021, and for facility B until 31.12.2021.
Additional act no. 63 / 25.08.2021 extended the validity period of the global financing ceiling of facility A, multi-options, non-binding, until 31.08.2022, and for facility B until 31.12.2022.

All other provisions of the Credit Agreement remain unchanged, including those relating to guarantees, interest, commissions.

As of 31.12.2021, the loan balance is 14,572,011.77 lei (31.12.2020: 5,982,311.45 lei)

The value of the letters of guarantee issued from the credit ceiling and valid in 2020 is 1,000,014 lei, of which 609,126 lei are valid on January 1; during the year, SGBs worth 390,999 lei were issued. On 31.12.2020, 4 GBS in the amount of 910,966 lei expired at maturity, the difference of 89,048.60 lei expires on 30.06.2021.

On 31.12.2020, the approved limit is 19,365,000 lei, of which 5,982,311.45 lei are used through the credit line and 89,048.60 lei through the Bank Guarantee Letters, the limit available for use on 31.12.2020 is 13,293. 639 lei.

The value of the letters of guarantee issued from the credit ceiling and valid on 01.01.2021 is 89,048.60 lei, maturing on 30.06.2021. On 28.12.2021, a Letter of Good Performance Bank Guarantee was issued in favor of the client UM01836 in the amount of 641,312.49 lei with maturity on 31.08.2022.

On 31.12.2021, the approved limit is 19,365,000 lei, of which 14,572,011.77 lei are used through the credit line and 641,312.49 lei through Bank Guarantee Letters, the available limit to be used being 4,151,675 lei.

(A1) BRD - Factoring contract 539/04.05.2006 In 2006 the Company concluded a factoring contract, the factoring contract no. 539 / 04.05.2006, which was successively extended.

By addendum No.5 to the Factoring Contract no. 539 / 04.05.2019, the financing ceiling of 500,000 Eur was established, for covering the risk of non-payment of 500,000 Eur. The factoring commission is 1.1% + VAT and 9 EUR / document + VAT Annual financing commission rate: EURIBOR / 3M + 4% margin p.a. + VAT.

On 31.08.2020, the addendum no. 6 to the Factoring Contract no. 539 / 04.05.2006 came in force, by which it was agreed to increase the factoring ceiling, so the Special Conditions no. 1 have been completely rewritten.

The financing ceiling is 500,000 Eur, being eligible for financing and covering the risk of nonpayment, receivables with a payment term of maximum 120 days from the date of their issuance. The amount financed will not exceed the amount resulting from the application of the percentage of financing to the approved financing ceiling.

The validity term of the financing ceiling is 31.08.2021. 1. -BORROWINGS (continued) b) Amounts owed to credit institutions (continued) The percentage of financing of the approved receivables is: 90%, and the difference of 10% of the approved receivables representing the reserve. No time limit applies for the rejection of claims. The validity term of the non-payment risk coverage ceiling is 31.08.2021.

On 31.08.2021 the factoring contract was not renewed. The Company waived the assignment of receivables for the customer of GE Hungary.

At the maturity date, the balance of the assigned receivables was EUR 11,690, with a maximum maturity of 03.11.2021. Upon the full collection of the invoices from the balance, the factoring contract no. 539 / 04.05.2006 concluded between

BRD -Group Societe General and Turbomecanica is automatically terminated according to notification no. 6187 / 08.09.2021 transmitted by BRD

(B) Banca Transilvania – Loan contract no. 186/24.06.2009 On 18.05.2020, the Additional Act no. 26/186, whose object is the modification of the guarantees, the extension of the credit limit amounting to 9,400,000 lei until 08.09.2020. The period of use is until 07.09.2020. The following have been established: the interest rate is variable of 5.88%, being made up of ROBOR 6M, calculated on 31.03.2020, to which is added the bank's margin of 3.25% (6-month ROBOR index calculated on 31.03.2020 is 2.63%), the penalty interest being 15% / year, the extension commission of 0.15% applicable to the loan amount, to be paid on the extension date, the non-use is 1% / year, calculated on the daily amount left unused from the amount of the loan, the administration fee is 0.05% / month of the average monthly balance of the loan, to be paid monthly, the early repayment fee is 1% of the amount repaid in advance, to be paid on the date of the advance repayment. On 18.05.2021, the Additional Act no. 29/186, the object of which is to modify the following conditions: extension of the credit facility until 18.05.2022; the value of the loan 9,400,000 lei; Multiple shots.

Use period: until 17.05.2022. Expires 18.05.2022 Interest rate. The annual interest rate is 4.98% variable and consists of the 6-month ROBOR index, calculated on 31.03.2021, to which is added the Bank's margin of 3.25%. The ROBOR index is 1.73%, but in all cases where the value of the reference index falls below zero, in order to calculate the interest, the value zero is used. The annual interest rate will be updated Quarterly on the first working day of the calendar quarter with the official level of the 6-month ROBOR index calculated on the last working day of the previous calendar quarter. On 21.07.2021, the Additional Act no. 30/186 by which the interest margin decreased from 3.25% to 2.5%, starting with 15.08.2021. On 12.10.2021, the Additional Act no. 31/186 which modifies the structure of guarantees by eliminating the buildings with cadastral numbers 233974 and 229339 based on an evaluation report provided that the remaining guarantee has a degree of coverage of 85%. The following guarantees are maintained: - first real estate mortgage on objectives 6,8,11 and 10, land of 583 sqm, free urban land of 684 sqm and real movable guarantee on receipts and the balance of the current account and subaccounts opened at BT, with no. 186 / CES / 02 / 06.06.2012, amended and supplemented by AA 01/186 / CES / 02 / 21.05.2019. - movable mortgage on the existing goods for 18 equipments, eliminating, unlike the previous contract, the Maxicut transmission machine. The guarantees on the existing goods for 18 equipments are maintained, in accordance with the Movable Mortgage Agreement for the existing goods determined no. 186 / GAJ / 01.27.02.2014, amended and supplemented by Additional Act no. 04/186 / GAJ / 01 / 18.05.2020.

According to the standard contractual clauses, the customer undertakes to submit to the bank for analysis all the documents necessary for the extension of the credit facility at least 45 days before the expiration of the facility. Turbomechanics has the obligation to make a BT turnover of min. 33% of turnover. Running condition has been met The special clauses of the facility are maintained and remain unchanged.

The credit balance on 31.12.2021 is RON 7,337,381 (31.12.2020: RON 7,857,414). 20 --BORROWINGS (continued) b) Amounts owed to credit institutions (continued)

(C) Leasing contracts In 2017, the company concluded Leasing Contracts 4003351 and 4003350 with UNICREDIT LEASING, amounting to EUR 174,132. In 2019, these contracts were subject to IFRS 16 "Leasing Contracts". As of January 1, 2019, the accounting standard IAS 17 "Leases", as well as all interpretations issued in its application have been replaced by a new standard issued by the international body, namely IFRS 16 "Leases". The major changes brought by the new standard refer primarily to the accounting at the level of tenants (users), in which case the differentiation established based on the old rules, respectively financial leasing - operational leasing will no longer be relevant. Based on the new principles of IFRS 16, the right of use becomes essential, and the principle of economic prevalence over legal acquires a more accentuated applicability in the case of tenants. The balance of these leasing contracts as of 31.12.2021 is RON 52,050 (31.12.2020: RON 204,895), DAE 8.77%. The assets related to these contracts have been presented in Note 12. Subsequently, the company concluded leases for equipment with BT Leasing for a period of 60 months and with Gleason -PfauterMaschinenfabrikGmb for a period of 36 months, with an interest rate of 3.9%. Their balance as of December 31, 2021 is RON 3,109,183 (December 31, 2020: RON 5,742,771). The assets related to these leases are presented in note 11.

All lease debts are due in a period of up to 5 years. 21. PROVISIONS

	Provisions for post-employment benefits	Other provisions related to personnel	Provisions for Guarantees	Provisions for onerous contracts	Total
Balance as of 01.01.2021	1,800,095	3,708,200	1,232,247		- 6,740,542
Additions	247,859	3,098,207		676,153	4,022,219
Used	(261,358)				(261,358)
Reversal through profit and loss		(2,683,738)	(896,625)		(3,580,363)
Actuarial gain – other comprehensive income	(636,240)				(636,240)
Balancce as of 31.12.2021	1,150,356	4,122,669	335,622		676,153 6,284,800

Provisions for guarantees and post-employment benefits have been classified as long-term. "Other provisions related to staff" include the following: provision for performance bonuses for 2021 to be granted in 2022, provision for rest leave not taken on December 31, 2021, provision for tax obligations related to gift vouchers granted to employees during 2016 - 2019. The company provides the following benefits to its employees: a) Retirement benefits in the amount of two basic salaries in the month preceding retirement; b) Assistance in case of death of the employee: 5 minimum salaries per company plus 25% of this amount of each dependent child; c) Upon termination of the activity from the company's initiative as a result of the restriction of its activity, compensatory payments of up to 6 individual salaries, representing 20% ??of the individual salary of the month preceding the termination of the collaboration. The most recent actuarial valuation of the provision for post-employment benefits was performed on December 31, 2021, by GELID ACTUARIAL COMPANY. The present value of the benefit obligation determined the costs related to the current services and the cost of the past service, were measured using the Projected Credit Factor Method (MFCP). These benefits will be paid in large in the next 5-15 years.

The principal assumptions used for the purposes of the actuarial valuations were as follows: Demographic assumptions on the future characteristics of employees eligible for receiving benefits:

21. PROVISIONS(continued)

Mortality of employees and their family members. Romanian Mortality Table for 2018men and women issued by the National Institute of Statistics.

Rate of employee turnover In 2021, the employee turnover rate was 10.9%. For this exercise, the average of the last three years was considered to be 8.9% p.a. Based on the age structure of the staff, the staff turnover rate model takes into account the number of years remaining until retirement and results in a number of employees who would leave and be replaced equal to 8.9% of the total number of employees. The employee turnover rate is: - 23.9% pa for employees who are over 35 years old until retirement - Linearly decreasing to 0% for employees with a number of years until retirement between 35 and 5 years; For the last 5 years until retirement, I considered that employees are no longer looking to change jobs and that they have gained enough experience not to be replaced for disciplinary reasons. Rate of dismissals For the period after December 2021, the Company did not communicate a personnel redundancy plan.

Financial assumptions

Discount rate As regards the discount rate, the Company took into account the yields of bonds on the active market at the end of December 2010. The available residual terms until maturity were 1 - 10 years and 13-14 years. For the other terms, the Company estimated the discount rate using the Smith-Wilson method. The long-term assumptions were: – estimated long-term inflation rate 2% pa – estimated long-term real yield of government bonds 1.6% pa – liquidity premium for Romania 0%.

Thus, a balancing forward rate of 3.60% pa was considered. The method ensures compatibility between the discount rate and inflation rate. The weighted average discount rate is 5 % p.a. Inflation rate Based on the statistics issued by INSSE and the NBR forecast, the Company estimated an inflation rate of: – 8.2% for 2021 – 5.9% for 2022 – 3.2% for 2023

– 3.0% for 2024

– 2.8% for 2025 • 2.5% for 2026 - 2031 and following a declining trend in the following years Wage growth rate The Company estimates an average growth of maximum 4,02% in 2022. For 2023 and the following years, the Company estimated that salaries will increase by an average of the consumer price index of each year The components of defined benefit costs recognized in profit or loss are as follows:

Change the present value of the obligation						2021	2020
Present		value	of		obligation	1,800,095	1,609,323
Interest					cost	42,729	60,341
Cost	of		current		service	205,130	200,717
Payments	from	provisions		during	year	(261,358)	(534,690)
Actuarial		(Gain)/Loss	of	the	year	(636,240)	464,404
Past		service			costs	-		-
Present	value	of	the	obligation		1,150,356	1,800,095
21.									PROVISIONS(continued)
Components of defined benefit costs recognized in profit or loss are as follows:
Service	cost:				December 31, December 31,

		2021	2020
Current service cost		205,130	200,717
Interest	cost	42,729	60,341
Past service cost		-	-
Benefits	paid	247,859	261.358			Amounts recognized in the comprehensive income in respect of these defined benefit plans are
as						follows:
	Re-measurement of the net defined benefit liability:				December 31, 2021	December 31, 2020
assumptions	Actuarial gains and losses from changes in financial				(636.240)	464,404
TOTAL					(636.240)	464,404
	Change in provision		December 31,	2021	December 31, 2020
Opening	Balnce –	January 1st		1,800,356	1,609,323
	Expenditure/ (Income) related to the period			(388,381)	725,462
Payments				(261,358)	(534,690)
Total		provision		1,150,536	1,800,095
						Significant actuarial assumptions for determining the defined obligation are the following:
discount	rate,	projected	salary	increases	and	mortality.
Benefit	Payment Maturity of obligations		Maturity		Analysis	2021
	with defined benefits	Retirement	benefits	Employee death benefits		Total obligations with defined benefits
	Pana la 1 year		89,286	43,786		133,072
	1 – 2 year		90,502	45,566		136,067
	2 – 5 year		329,945	127,039		456,984
	5 – 10 year	1,065,073		156,428		1,221,501
	Peste 10 year	1,144,334		129,978		1,274,312
Sensitivity			analysis			2021
Hypotheses			December, 31 2021		December, 31 2020
			Post-employment benefits		Post-employment benefits
	PVDBO at 31.12.2021 (RON)		1,150,356			1,800,095
Discount	rate +1%		1,077,350			1,699,573
Discount	rate -1%		1,231,281			1,912,386
growth	Wage growth rate +1% rate-1%		1,232,899			1,912,409
Wage	Increased longevity by 1 year		1,074,679 1,143,928			1,697,795 1,792,949
	As mentioned in Note 3, for contract revenues, the Company offers its customers a guarantee
	between 12-18 months. The management of the Company makes an analysis of the historical
						costs with the repairs under warranty. Based on this analysis, the Company determined that the
	level of expenses for warranty works, which is on a decreasing trend, was at a level of 0.26% of
	turnover, a percentage used in determining the provision for guarantees.
22.	TRADE	AND	December 31,	OTHER December 31,		LIABILITIES
			2021		2020
Trade		liabilities	4,273,032	1,338,180
	Liabilities on invoices to be received		1,265,915		523,349
Other		creditors	12,571		-
Total			5,551,518	1,861,529
OTHER 23.	CURRENT		LIABILITES	AND	DEFERRED	INCOME
	Other current liabilities December 31,	2021	December 31,	2020
Salaries		1,942,787		1,848,588
Salary	taxes	2,531,620		2,439,069
VAT	payable	3,249,763	1,800,475

Operating segments of the Company are driven by the main products and services delivered, as it is shown below: manufacturing of aircraft parts, repairs of engines and other. The geographical segmentation of the operations derives from the country of origin for the main customers of the Company.

The Company's management does not monitor the business at the level of these segments, only the registered revenues. Owned assets serve all segments presented. Therefore, the Company cannot present profitability and CAPEX at the individual segment level.

				revenues December 31, December 31,
Segment				2021	2020
Manufacturing	of	aircraft	parts	38,512,607	36,827,898
Repairs	of		engines	90,120,845	85,931,742
Others, including the production of parts for the industrial sector				2,697,713	2,229,397
Total				131,331,165	124,989,037

Geographic information

The company revenue form external customers and information about its segment assets (noncurrent assets excluding financial instruments, deferred tax assets and other financial assets by geographical location are detailed below:

Location	2021 Revenues	2020 Revenues
EUROPA	131,228,370	124,821,002
● Out of which Romania 121,530,133		110,722,333
USA	87,128	152,843
ASIA	15,667	15,192
TOTAL	131,331,165	124,989,037
25.	FINANCIAL		INSTRUMENTS
a.	Capital	risk	management

The Company manages its capital so as to make sure that itwill continue its business along time with the maximization of the shareholders' wealth, by optimizing the balance of liabilities and equity.

The Company's capital consists of debts, which include the borrowings disclosed in Note 19, cash and cash equivalents and equity.

Own equity comprises share capital, reserves and retained earnings, as disclosed in Notes 16and 17.

The Company monitors capital based on the gearing ratio. Such ratio is calculated as ratio between the net debt and total capital. The net debt is calculated as total borrowings (including both long and short-term loans) less cash and cash equivalents.

The total capital is calculated as "capital and reserves" as reported in the balance sheet.

The gearing ratio as at December 31,2021and December 31,2020is as follows:

December 31, December 31,
		2021	2020
Total	borrowings	29,950,627	24,667,387
Cash and cash equivalents		(18,961,360)	(5,148,791)
Net	debt	10,989,267	19,518,596
Total capital and reserves		120,598,947	108,649,087
Gearing	ratio	9%	18%
The change in the degree of indebtedness is due to the increase in cash and cash equivalents as
of		December		31,	2021.
b)	Credit		risk		management

The company is subject to a credit risk due to its trade receivables and other types of receivables. The company has policies designed to ensure that sales are made to customers with appropriate references regarding their creditworthiness. The maturity date of the debts is closely monitored and the amounts due after the deadline are promptly tracked. Trade receivables (customers) are presented net of adjustments for impairment of uncertain receivables. The company develops policies that limit the value of credit exposure to any financial institution. The company does not request collateral deposits but in some limited cases,

it requires advances from customers. The concentration of trade receivables and revenue from contracts is as follows:

		Trade receivables as of 31 December 2021	Contractual Assets as of 31 December 2021	Revenue from contracts with customers 2021	Trade receivables as of 31 December 2020	Revenue from contracts with customers 2020
Top clients	3	15,824,791	10,764,873	123,215,826	11,135,042	113,882,629
Others		4,445,577	1,187,905	8,115,339	1,237,323	11,106,408
Total		20,270,368	11,952,778	131,331,165	12,372,365	124,989,037

25	-	FINANCIAL	INSTRUMENTS	(continued)
b)	Credit	risk	management	(continued)

The main 3 clients according to sales are represented by 2 entities with majority state participation, clients that fall into a low risk category and Leonardo S.p.a Helicopters Division, an external entity with a very good creditworthiness. There are also income and their income in each period. As of December 31, 2020, the division of contract assets could not be provided.

Cash is held in financial institutions that are valued at minimal risk of default. These are BRD and Banca Transilvania.

The book values ??represent the maximum exposure of the Company to the credit risk related to the existing receivables.

On this basis, the provision for loss on December 31, 2021, December 31, 2020 was determined by the provision of receivables older than 270 days.

The company assumes that the credit risk is low, as most of the company's balance of receivables consists of 2 main customers that are held by the state, with an average collection period of 20 days, so there is a limited risk of significant losses of credit and Leonardo Spa Helicopters Division, customer with good creditworthiness. 25. FINANCIAL INSTRUMENTS (continued)

c) Foreign currency risk management The Company is exposed to foreign currency fluctuations in commercial and financing transactions. Foreign currency risk arises from recognized trade assets and liabilities, borrowings inclusively, expressed in foreign currency. Due to high associated costs, the Company's policy is not to use financial derivatives to mitigate such risk. The carrying amounts of the Company's currencies expressed in monetary assets and liabilities as at the reporting date are the following:

2021	EUR 1 EUR = RON 4,8694	USD 1 USD = RON 3,9660	GBP 1 GBP = RON 5,4201	CHF 1 CHF = RON 4,4997	RON 1 RON = RON	TOTAL December 31, 2021
	RON	RON	RON		RON	RON
ASSETS
Cash and cash equivalents	3,745,707	48,664	7,199	1,854	15,157,936	18,961,360
Receivables and other current assets	3,353,123	12,079	-	-	16,905,166	20,270,368
Contract assets	-	-	-	-	11,952,778	11,952,778
LIABILITIES
	71,594	143,684	-		5,336,240	5,551,518

Trade and other liabilities
Short and long-term loans	3,161,235		- -		- 26,789,393	29,950,628
Net balance exposure (assets - liabilities)	3,866,001	(82,941)	7,199		1,854 11,890,247 15,682,360
2020	EUR 1 EUR = RON 4,7793	USD 1 USD = RON 4,2608	GBP 1 GBP = RON 5,6088	CHF 1 CHF = RON 4,4033	RON 1 RON = RON	TOTAL December 31, 2020
	RON	RON	RON		RON	RON
ASSETS
Cash and cash equivalents	4,913,769	25,073	34,728	4,073	155,951	5,133,594
Receivables and other current assets	3,495,143	11,330	-	-	9,028,378	12,534,851
LIABILITIES
Trade and other liabilities	73,970	119,630	3,954		1,625,769	1,823,323
Short and long-term loans	5,947,662	-	-	-	18,719,725	24,667,387
Net balance
exposure (assets -	2,387,280	(83,227)	(30,774)		4,073 (11,161,165) (8,822,265)
liabilities)
25.	FINANCIAL		INSTRUMENTS			(continued)

c)	Foreign	currency	risk	management	(continued)
Sensitivity					analysis

The Company is mainly exposed in respect of the exchange rate of the EUR vs. RON. The following table details the Company's sensitivity to a 10% increase in the main currencies the company has monetary items. 10% is the sensitivity rate used when reporting foreign currency risk internally to senior management and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. A negative number below indicates adecrease in profit, when there is a 10% weakening of the

RON. For a 10% strengthening of RON against the currencies the company has the monetary items denominated there would be an equal and opposite impact on the profit and equity and the balance would be positive.

10% strengthening of RON against EUR

December	31,	31,
	386,600	238,728
USD	(8,294)	(8,322)
	(720)	(3,077)
	185	407
	2021	- impact on the result as at: December 2020

d) Liquidity and interest risk management A prudent liquidity risk management requires maintaining sufficient cash and available credit lines, by continually monitoring the estimated and actual cash flow and by correlating the maturities of financial assets and liabilities. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's operating cash flows are impacted mainly by the changes in interest rates, due to the borrowings with variable interest rates contracted from internal credit institutions. The Company has significant borrowings with variable interest rates that expose the Company to significant cash flow risk. The Company is on ongoing negotiation process with the bank to renegotiate repayment terms and interest. Sensitivity analysis – interest

The sensitivity analyses below have been determined based on the exposure to interest rates for non-derivative instruments at the reporting date. For floating rate liabilities, the analysis is prepared assuming the amount of liability outstanding at the reporting date was outstanding for the whole year. Part of interest the company pays to lease companies, where the interest is fixed, thus no impact on fluctuations of interest rates. For the short term loan, the interest has a volatile component (ROBOR) and is about 5-6% per month.

For the short-term loan, the interest rate has a volatile component (ROBOR) and is about 5-6% per month.

Assuming a 2% increase, which historically is an increase in ROBOR rates, the impact on the profit and loss account will be insignificant.

25.		FINANCIAL		INSTRUMENTS risk
Liquidity d)	and	interest		management	More	(continued)
2021	Interest rate	Less than 1 month	Less than 1 year	1 to 5 years	than 5 years	Total
Trade and other current liabilities		5,031,328	520,190	-	-	5,551,518
Long and short-term borrowings (of which):			29,613,560	2,055,579		31,669,139
Short term borrowings in lei – BRD	ROBOR 3M +3.50%		14,572,012			14,572,012
Related interest - BRD Short term			988,416			988,416
borrowings - Banca Transilvania	ROBOR 6M+2.25%		7,337,381			7,337,381
Interest – Banca Transilvania			448,929			448,929
Leasing BTRL			1,105,656	2,055,579		3,161,235
Shareholder loans	5.80%		4,880,000			4,880,000
Interest – shareholder loans			281,166			281,166
Total Liabilities		5,031,328	30,133,750	2,055,579	-	37,220,657
2020	Interest rate	Less than 1 month	Less than 1 year	1 to 5 years	More than 5 years	Total
Trade and other current liabilities		1,619,166	204,157			1,823,323
Long and short-term borrowings (of which)			21,654,746	4,242,852		25,897,598
Short term loans in lei - BRD	ROBOR 3M +3,50%		5,982,311			5,982,311
Interest - BRD			914,899			914,899

Changes	in	liabilities	arising	from	financing activities
25. Liquidity d)	FINANCIAL and	interest	risk	INSTRUMENTS management	(continued) (continued)
Total liabilities		1,619,166	21,858,903	4,242,852	27,720,921
loans
Interest - Shareholder			268,628		268,628
Shareholder loans	6,35%		4,880,000		4,880,000
Leasing BTRL			1,704,810	4,242,852	5,947,662
Interest Banca transilvania			466,840		466,840
Short term loans Banca transilvania	ROBOR 6M+3,25%		7,857,414		7,857,414

		1-Jan-2021 Encashment Payments		Other variations*	Foreign exchange movement	New leases	Dividends granted	31- Dec-2021
	Borrowings 18,719,725	8,069,668		-	-	-	-	26,789,393
Leasing	5,947,666	-	929,858	1,856,573	-	-	-	3,161,235
Dividends	1,762,359	-	686,000	-	-	-	-	1,076,277
Total financial liabilities	26,429,750			8,069,668 1,615,858 1,856,573	-	-		- 31,026,905

* During 2021, as mentioned in Note 11, one of the leased equipment was

					returned to the supplier.
		1-Jan-2020 Encashment Payments		Overdraft	Foreign exchange movement	New leases	Dividends granted	31- Dec-2020
	Borrowings 12,831,738	5,887,987		-	-	-	-	18,719,725
Leasing	4,863,396	-	1,210,234	-	-	2,294,494	-	5,947,666
Dividends	2,101,088	-	338,629	-	-	-	-	1,762,359
Total

financial liabilities 19,796,222 5,887,987 - - - 2,294,494 - 26,429,750

25.	FINANCIAL				INSTRUMENTS		(continued)
e)		Fair value		of		financial		instruments
1.	Financial	assets	and	liabilities	carried	at	fair	value
							As at December 31, 2021, December 31, 2020 the Company does not hold any financial
	instruments		carried		at fair			value.
2.		Non-financial	assets		carried	at	fair	value
							The table below analyses the Company's assets and liabilities carried at fair value, by valuation
							method. As of 31 December 2021, 31 December 2020 there have been no transfers between fair
value								levels
The	different		levels	are		defined	as	follows:
							• Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);

• Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2);

• Inputs for the asset or liability that are not based on observable market data (that is unobservable inputs) (Level 3).

31-Dec-2021 Assets Level 1 Level 2 Level 3

Land	-	- 16,642,911
Buildings	-	- 13,156,431
Equipment	-	- 31,207,151
31-Dec-2020

Assets	Level 1 Level 2	Level 3
Land	-	- 16,642,911
Buildings	-	- 13,643,530

Assets and liabilities not carried at fair value but for which fair value is disclosed

The assets and liabilities of the Company are carried at amortised cost; their carrying values are a reasonable approximation of fair value. Trade receivables include the contractual amounts for settlement of trades and other obligations due to the Company. Trade and other payables and borrowings represent contract amounts and obligations due by the Company.

26.	EARNINGS						PER					SHARE
(a)											Basic
												The basic result per share is calculated by dividing the shareholders' profit to the weighted
												average number of ordinary shares issued during the year, except for ordinary shares purchased
by	the		Company		and		kept	as			treasury	shares.
20212020
Company shareholders						result		11.749.227			13.342.276
Weighted		average	number		of	ordinary		sharesissued		363.448.395		363.448.395
Basic			earnings		per			share		0.032		0.037
(b)												Diluted
												The diluted result per share is calculated by adjusting the weighted average of existing shares to
												take into account the translation of all potentially diluted shares. The Company did not register
												convertible debts or share issuance options which may be converted to ordinary shares that may
adjust		the		weighted		average			number		of	shares.
In	year 2020		and	2021,	the		Company	did	not		distribute	dividends.
27.						RELATED						PARTIES
												The company has loans received from related parties as per below illustration:

December 31, December 31, 2021 2020
Total			4,880,000			4,880,000

Maria Ciorapciu 300,000 300,000 Terms and conditions of transactions with related parties: Outstanding balances at the year-end are unsecured, interest free and settlement occurs in cash or by compensation. There have been no guarantees provided or received for any related party loans.

Key management employees Please see below key management employee benefits disclosure. During years ended 31 December 2020 and 31 December 2019 there were no transactions concluded between the company and key management employees. During 2021, the Company paid benefits to the key members of the management consisting of the members of the Board of Directors ("C.A.") of Turbomecanica SA and the General Manager, as follows:

31 December 2020 31 December 2020

Board of Directors and General Director 2,774,108 2,750,401 Total

Radu Viehmann 4,580,000 4,580,000

As of December 31, 2021, the company does not grant advances for settlement to the directors / members of the board of directors At 2021 and 2020 year end, there were no guarantees or future obligations assumed by the Company on behalf of the directors. 27 - RELATED PARTIES (continued)

During 2020, dividends granted in previous years were paid in the amount of RON 72,718, of which annual dividends:

2016 in the amount of RON 1,237 - 2017 in the amount of RON 22,076 - 2018 in the amount of RON 49,405. The value of dividends was prescribed for 2016, it was recorded on income in 2020, amounting to RON 263,011 During 2021, dividends were paid in previous years in the amount of RON 42,323, of which dividends per year: - 2017 in the amount of RON 1,272 - 2018 in the amount of RON 38,076 The value of dividends was prescribed for 2017, this was recorded on income in 2021, amounting to RON 643,758 28. COMMITMENTS AND CONTINGENCIES The Company has no commitments related to the acquisition of tangible or intangible assets as of December 31, 2021 and December 31, 2020. The company issued bank letters of guarantee in favor of suppliers and customers on December 31, 2021 in the amount of RON 641,312.49 - (December 31, 2020: RON 89,048.46) Liabilities related to leasing liabilities are presented in Note 20. Contingencies

Taxation

Taxation system in Romania is still developing trying to consolidate and harmonize with the European legislation. In this respect, there still are various interpretations of the tax laws. In certain cases, tax authorities may treat differently certain aspects and calculate supplementary taxes and levies and related interests and penalties. In 2020, the interest value is 0.02% for each day of delay; the delay penalties are 0.01% for each day of delay. In Romania, the fiscal year stays open for verifications during 5 years. In the last 5 years there have been no tax inspections on the profit tax.The management estimates that the tax liabilities included in these financial statements are adequate. In accordance with the provisions issued by the Ministry of Public Finance, which regulate the tax regime of items of equity which have not been subject to income tax as at their accounting registration, due to their nature, should the Company change the destination of revaluation reserves (by covering losses or allocation to shareholders), it will incur additional income tax liabilities.

Environmental matters Environmental regulations are developing in Romania, and the Company did not register any liabilities as at December 31, 2021 or December 31, 2020 for any estimated costs, including legal and consulting fees, site surveys, the design and implementation of recovery plans as regards the environment.ConducereaSocietatiiconsideraca nu sunt necesareprovizioane cuprivire la obligatiile de mediu.

Inventories
		As at December 31, 2021, the Company did not hold inventories in custody.
29.	SUBSEQUENT		EVENTS

In 2022, the loan contracts of Mr. Viehmann Radu (Additional Act No. 13 authenticated under No. 130 / 14.02.2022 and of Ms. Ciorapciu Dana Maria (Additional Act 9, authenticated under No. 129 / 14.02) were extended .2022) until 31.01.2023 and the interest rate was set at 5.46%.

On 28.02.2022, the Additional Act no. 32/186 between Banca Transilvania and Turbomecanica was concluded, by which it was agreed to modify the guarantees, as well as to update the guarantees with their description following the successive attachments and / or detachments. On 03.03.2022, the Additional Act no. 3 to the Mortgage Agreement no. 186 / IPO / 01 / 24.06.2009, amended based on the additional act no. 1/86 / IPO / 01 / 10.06.2010 and by the additional act no. 2 / 24.07.2017, between Banca Transilvania and Turbomecanica. The clause implies the modification of the guarantee structure by eliminating the buildings with no. cadastral 233974 and 229339 based on an evaluation report provided that the remaining guarantee has a degree of coverage of 85%. The other terms of the contract remain unchanged.

In the context of the conflict between Russia and Ukraine, which began on February 24, 2022, the European Union, the US, the UK and other countries have imposed numerous sanctions against Russia, including financial restrictions on Russian banks and state-owned companies, and sanctions against a number of individuals. Considering the geopolitical tensions, starting

with February 2022, there was an increase in the volatility of the financial markets and the pressure on the depreciation of exchange rates. These events are expected to affect activity in many sectors of the economyand could lead to a further rise in energy prices in Europe and a high risk of delays in the supply chain. The company does not have direct exposure to the affiliated party and / or key customers or suppliers in these countries. The Company considers these events to be non-adjustable events that occurred after the balance sheet date, the effect of which cannot be estimated at this time. At this time, the Company's management is analyzing the possible effects of the change in micro and macroeconomic conditions on the Company's financial position and results. No other events took place after the balance sheet date. The financial statements were approved by the Board of Administration and authorized for issuance on March 24, 2022.

CLAUDIA ANGHEL, RADU VIEHMANN,

Economic & Commercial Director CEO

TURBOMECANICA SA STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2021

(all the amounts are expressed in "RON", unless otherwise specified)

The accompanying notes form an integral part of these financial statements. This is a free translation from the original Romanian version.

TURBOMECANICA SA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021

(all the amounts are expressed in "RON", unless otherwise specified) TURBOMECANICA SA

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2021

(all the amounts are expressed in "RON", unless otherwise specified)

This is a free translation from the original Romanian version.

AI Terminal

Turbomecanica S.A.

2324_10-k_2022-05-20_eb55d505-db50-46e4-a3db-c6054b5480d0.pdf

TURBOMECANICA SA FINANCIAL STATEMENTS FOR THE YEAR ENDEDDECEMBER 31,2021 PREPARED IN ACCORDANCE WITH MINISTER OF FINANCE ORDER NO. 2844/2016, FOR THE APPROVAL OF ACCOUNTING REGULATIONS IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS, with subsequent amendments and clarifications

TURBOMECANICA SA STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2021

TURBOMECANICA SA STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2021

CLAUDIA ANGHEL, RADU VIEHMANN,

TURBOMECANICA SA STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2021

TURBOMECANICA SA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021 (all the amounts are expressed in "RON", unless otherwise specified)

1. ADOPTION OF NEW AND REVISED INTERNATIONALFINANCIAL REPORTING STANDARDS (IFRSs)

not yet been endorsed by the EU. • IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current (Amendments)

● IAS 12 Income taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments)

● IFRS16 Leases -C?vid 19 Related Rent Concessions beyond 30 June 2021 (Amendment)

level of the fair value hierarchy as explained above. 3. SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue recognition

3. SIGNIFICANT ACCOUNTING POLICIES (continued) Trade Receivables

Leases

differences.

Inventories

Provisions

Provisions (Continued)

Restructurings

Guarantees

2. INVENTORIES

21. PROVISIONS(continued)

Financial assumptions

financial liabilities 19,796,222 5,887,987 - - - 2,294,494 - 26,429,750

31-Dec-2021 Assets Level 1 Level 2 Level 3

31 December 2020 31 December 2020

Taxation

CLAUDIA ANGHEL, RADU VIEHMANN,

TURBOMECANICA SA STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2021

NOTES TO THE FINANCIAL STATEMENTS

More from Turbomecanica S.A.

Talk to a Data Expert