Sinteza S.A.

Annual / Quarterly Financial Statement • Apr 21, 2017

S.C. Sinteza S.A.

Individual and consolidated financial statements
31 December 2016

사용 열람이

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Prepared in accordance with International Financial Reporting Standards (IFRS)
adopted by the European Union

Contents:

Financial statements

Individual and consolidated statement of financial position 3 - 4
Individual and consolidated statement of comprehensive income 5 - 6
Statement of changes in equity individual and consolidated
Individual and consolidated statement of cash flows9 - 10
Notes to the financial statements and the second control of the second control of the second control of the second control of the second control of

$\overline{2}$

Individual Financial Statements

31 December 2016

Indicator	(RON)	(RON)
	31.12.2015	31.12.2016
Tangible assets
Land an land design	13.485.777	13.971.880
Building	16.636.357	15.951.950
Technical installations and means of transport	15.252.700	16.237.119
Furniture, office equipment	24.050	18.837
Tangible assets under construction	5.617.536	5.527.632
Advances for property and equipment in te	17.924	0
Intangible assets
Development expenses	0	$\mathbf 0$
Concessions, patents, licenses, trademarks, similar rights and assets and other intangibles
Financial assets	637.785	610.506
Shares in subsidiaries and other long term investments
Total Tangible and Intangible assets	257.358 51.929.487	110.332 52.428.256
Current assets
Stocks	4.597.091	6.183.475
Trade receivables and other receivables	18.631.083	11.773.419
Expenses in advance	535.745	434.940
Cash and cash equivalents	574.360	3.101.497
Assets classified as held for sale	19.430.931	4.164.340
Total Current assets	43.769.210	25.657.671
Total Assets	95.698.697	78.085.927
Equity
Capital	9.916.889	9.916.889
Share premium	Ю
Reserves	139.673.828	55.531.330
Result for the year	15.825	2.760.412
Earnings	$-76.694.700$	$-2.737.739$
Other components of equity	$-6.254$	$-1.352.345$
Total Equity	72.905.588	64.118.547
Long term liabilities	Kontagana
Long term loans and other liabilities K GAL
Advance recorded revenue	4.061.108	3.780.741
Provisions	0 $\mathbf 0$	$\mathbf{0}$
Deferred tax liabilities	0	0
Total Long Term Liabilities
Current liabilities	4.061.108	3.780.741
Short term loans agota a	11.317.946	220.644
Trade payables and other liabilities, including derivatives	7.377.720	9.948.886
Advance recorded revenue	36.335	17.109
Provisions	О	O
Liabilities classified as held for sale	0	Õ.
Total Current Liabilities	18.732.001	10.186.639
Total Liabilities	22.793.109	13.967.380
Total Equity and Liabilities 김 조직의 배	95.698.697	78.085.927

$\overline{3}$

General Manager 동화 사용하고 말려

Financial Manager

도시가 우리들이네

Consolidated statement of financial position

31 December 2016

en nombre de Indicator	(RON)	(RON)
	31.12.2015	31.12.2016
Tangible assets
Land an land design	13.485.777	13.971.880
Building	16.636.357	15.951.950
Technical installations and means of transport	15.418.791	16.384.756
Furniture, office equipment	24.050	18.837
Tangible assets under construction	5.414.139	4.621.871
Advances for property and equipment	17.924	0
Intangible assets
Development expenses	dina katalog	0
Concessions, patents, licenses, trademarks, similar rights and assets and other intangibles
	637.785 여행 보여	610.506
Financial assets
Shares in subsidiaries and other long term investments	174,007	26.981
Total Tangible and Intangible assets	51.808.830	51.586.781
Current assets
Stocks	4.936.822	6.457.159
Trade receivables and other receivables	17.141.868	10.365.708
Expenses in advance	a, i 535.745	434.940
Cash and cash equivalents	580.180	3.108.976
Assets classified as held for sale	19.430.931	4.164.340
Total Current assets	42.625.546	24.531.123
Total Assets	94.434.376	76.117.904
Equity
Capital	9.920.639	9.920.639
Share premium	ា	o
Reserves	141.016.139	56.875.357
Result for the year	$-183.921$	1.887.468
Earnings	-79.143.512	$-5.182.899$
Other components of equity	$-6.254$	$-1.354.061$
Total Equity	71.603.091	62.146.504
Long term liabilities	An Fritz II.
Long term loans and other liabilities	4.061.107	3.780.741
Advance recorded revenue	0	0
Provisions	O	0
Deferred tax liabilities	O	0
Total Long Term Liabilities	4.061.107	3.780.741
Current liabilities
Short term loans	11.317.946	220.644
Trade payables and other liabilities, including derivatives	7.415.897	9.952.906
Advance recorded revenue	36.335	17.109
Provisions	$\mathbf 0$	0
Liabilities classified as held for sale	$\mathbf 0$	O.
	18.770.178	10.190.659
Total Current Liabilities
Total Liabilities Total Equity and Liabilities	22.831.285 94.434.376	13.971.400 76.117.904

General Manager

$\mathcal{V}(\mathcal{X})$

Financial Manager

	(RON)	(RON)
Indicator	31.12.2015	31.12.2016
Continue activities
Revenue	27.269.220	26.647.594
Other income	2.668.473	22.979.013
Stock variations	$-1.791.334$	1.434.438
Total operating income	28.146.359	51.061.045
Expenditure on stocks	15.572.724	16.253.711
Expenditure on utilities	3.874.315	3.444.950
Employee benefits expense	2.891.459	3.298.070
Depreciation and amortization of fixed assets	2.019.227	2.022.026
Wins / losses on disposal of property	406 830	15.961.754
Adjustment of current assets		73.558
Adjustments for provisions		241.396
Other expenses	2.533.476	3.322.827
Total operating expenses	27.298.031	44.618.292
Result operational activities	848.328	6.442.753
Financial income	762.418	532.664
Financial expenses	1.496.465	980.617
Net Financial Result	$-734.047$	-447.953
Result before tax	114.281	5.994.800
Current income tax expense	98.456	3.234.388
tą d Deferred income tax expense
Income from deferred taxes
The result from continuing operations	15.825	2.760.412
Earnings per share	0.0001	0.0418
Total comprehensive income for the period	15.825	2.760.412

Individual Statement of Comprehensive Income
31 December 2016

General Manager

Financiar Manager

	(RON)	(RON)
Indicator	31.12.2015	31.12.2016
Continue activities
Revenue	26.733.908	25.908.430
Other income	2.668.473	22.979.013
Stock variations	$-1.791.334$	1.434.438
Total operating income	27.611.047	50.321.881
Expenditure on stocks	15.602.828	16.351.921
Expenditure on utilities	3.874.315	3.444.950
Employee benefits expense	3.288.563	3.783.427
Depreciation and amortization of fixed assets	2.037.682	2.040.481
Wins / losses on disposal of property	406 830	15.961.754
Adjustment of current assets		73 558
Adjustments for provisions		241.396
Other expenses	1.752.247	2.833.192
Total operating expenses	26.962.465	44.730.679
Result operational activities	648.582	5.591.202
Financial income	762.418	532.664
Financial expenses	1.496.465	980.617
Net Financial Result	$-734.047$	-447.953
Result before tax	-85.465	5.143.249
Current income tax expense	98.456	3.255.781
Deferred income tax expense
Income from deferred taxes
The result from continuing operations	$-183.921$	1.887.468
Total comprehensive income for the period	$-183.921$	1.887.468

6

Consolidated Statement of Comprehensive Income 31 December 2016

$\gamma_i$

Ś

General Manager

Financiar Manager

	Minority interest Dividends Σ $\begin{array}{c} \text{(-)} \ \text{atributable to} \end{array}$ Profit or loss $\left(\cdot\right)$ Own shares	Total elements Other The cumulativ value of Interim	other compreh. equity holders of parent	income company	$\frac{4}{1}$ $\frac{3}{2}$ 12 $\mathbf{r}$ $\tilde{a}$ œ				7290558 540												$-10111$			11537342
	reserves Other				œ				2847966											$-106048$			1361916	ij
	Revaluation reserves				Z				136825862											85329396			-68970
	Retained earnings				¢				00116991-											85435444			$-11478483$
	cumulative Ě	value of		other comprehe nsive income	to.				10111											$-10111$			$-1351805$	2760412
	equity Other				4
	Equity instrume rts	issued			S
	Share premium				$\alpha$
	Capital								9916889
Statement of changes in equity - individual 31 December 2016		Amending equity sources			$\circ$	Opening Balance (before restatement)	The effect of corrections of errors	The effect of changes in accounting policies	Opening Balance (current period)	Ordinary bond issue	Preferred shares issued	Other capital instruments issued	Exercise or expiration of other capital instruments issued	Conversion of debt into equity	Capital reduction	Dividends	Purchase of own shares	The sale or cancellation of own shares	instruments from equity into debt The reclassification of financial	৳ between components Transfers equity	resulting from business combinations Increases or (-) decreases in equity	Payments in shares	£. Other increases or (-) decreases equity	comprehensive income for the Total	jegy

Statement of changes in equity - consolidated 31 December 2016
				Other	e F		Revaluation	Other		Profit or loss		Minority interest
Amending equity sources	Capital	Share premium	Equity Instrume issued ë	equity	cumulative comprehe value of income nsive other	Retained earnings	reserves	reserves	(-) Own shares ħ	atributable to equity holders of company parent $\hat{\mathbb{C}}$	Dividends Interim ≎	other compreh. The cumulativ value of income	elements Other	Total
0		$\mathbf{\tilde{c}}$	S	4	$\bullet$	$\circ$	Z	$\infty$	တ	∣≘	$\ddot{}$	$\tilde{c}$	$\frac{3}{2}$	14
Opening Balance (before restatement)
The effect of changes in accounting The effect of corrections of errors
Opening Balance (current period) policies	6690266				-189636	$-79143512$	136825862	4190277	540					71603090
Ordinary bond issue
Preferred shares issued
Other capital instruments issued
Exercise or expiration of other capital instruments issued
Conversion of debt into equity
Capital reduction
Dividends
Purchase of own shares
The sale or cancellation of own shares
instruments from equity into debt The reclassification of financial
δ Transfers between components equity					190176	85439096	-85329396	$-106048$						193828
resulting from business combinations Increases or (-) decreases in equity
Payments in shares
르 Other increases or (-) decreases equity					1354061	$-11478483$	$-68970$	1363632						-11537882
Total comprehensive income for the year					1887468									1887468
Balance at closing (current period)	9920639				533947	$-5182899$	51427496	5447861	840					62146504

$\infty$

$\frac{1}{2} \sum_{i=1}^{n} \frac{1}{2} \sum_{j=1}^{n} \frac{1}{2} \sum_{j=1}^{n} \frac{1}{2} \sum_{j=1}^{n} \frac{1}{2} \sum_{j=1}^{n} \frac{1}{2} \sum_{j=1}^{n} \frac{1}{2} \sum_{j=1}^{n} \frac{1}{2} \sum_{j=1}^{n} \frac{1}{2} \sum_{j=1}^{n} \frac{1}{2} \sum_{j=1}^{n} \frac{1}{2} \sum_{j=1}^{n} \frac{1}{2} \sum_{j=1}^{n} \frac{1}{2} \sum_{j=1}^{n$ $\frac{1}{2}$

$\hat{\boldsymbol{\beta}}$

$\frac{1}{\sqrt{2}}\sum_{i=1}^{n} \frac{1}{\sqrt{2}}\left(\frac{1}{\sqrt{2}}\right)^2$

Individual Statement of Cash Flows

31 December 2016

Statement of Cash Flows

		- lei -
	31.12.2015	31.12.2016
Cash flows from operating activities
Receipts from customers for sales
Other revenues (including net VAT refunds)	27.835.299	28.422.738
Payments to suppliers	1.633.800	1.658.039
Net payments to employees	22.282.581	23.702.713
Payments to budget	1.579.678	1.942.042
	1.646.717	2.104.998
Other payments	314.213	1.539.428
Net cash from operating activities	3.645.910	791.596
Cash flows from investing activities
Payments for the acquisition of fixed assets	417.960	3.952.088
Proceeds from sale of tangible assets	126.786	19.906.276
Interest received
Net cash from investing activities	$-291.174$	15.954.188
Net cash from financing activities
Proceeds from borrowings	36.812.028	18.142.934
Interest paid and refund loans	40.525.081	31.499.351
Dividends paid	Ω	862.230
Net cash from financing activities	$-3.713.053$	$-14.218.647$
Increase / (Decrease) net cash	$-358.317$	2.527.137
Cash and cash equivalents at beginning of period	932.677	574.360
Cash and cash equivalents at end of period	574.360	3.101.497

$\mathcal{L}_{\rm{int}}$

Consolidated Statement of Cash Flows

31 December 2016

Statement of Cash Flows

• lei -

31.12.2016 31.12.2015

말감각 거 a Palautana

$\mathcal{C}_{\mathcal{C}(\mathcal{A})}$

Cash flows from operating activities
Receipts from customers for sales	29.110.618	30 153 254
Other revenues (including net VAT refunds)	1.633.800	1.658.039
Payments to suppliers	23.031.006	24.795.751
Net payments to employees	1.803.989	2.217.263
Payments to budget	1.864.659	2.365.367
Other payments	399.616	1.639.657
Net cash from operating activities	3.645.148	793.255
Cash flows from investing activities
Payments for the acquisition of fixed assets	417.960	3.952.088
Proceeds from sale of tangible assets	126.786	19.906.276
Interest received
Net cash from investing activities	$-291.174$	15.954.188
Net cash from financing activities
Proceeds from borrowings	36.812.028	18.142.934
Interest paid and refund loans	40.525.081	31.499.351
Dividends paid	ŋ	862.230
Net cash from financing activities	$-3.713.053$	$-14.218.647$
Increase / (Decrease) net cash	$-359.079$	2.528.796
Cash and cash equivalents at beginning of period	939.259	580.180
Cash and cash equivalents at end of period	580.180	3.108.976

Notes to the financial statements

1. The entity which reports

The company Sinteza S.A. has hedquartered in Oradea, Borsului Road No.35, Trade Register No. J 05/197/1991. It is a joint stock company and operates in Romania in accordance with Law No.31 / 1990 relating to commercial companies.

The basic object of activity of the Company is manufacturing and marketing of basic organic chemicals - CAEN code 2014.

The Company's shares are listed on the Bucharest Stock Exchange, Standard category, with the indicative STZ.

		이 이 사람은 이 사람들은 바람에게 한 사람이 가지 않고 말을 받았다.
Current issue	REALWAY Name $\sim$	Percentage held (%) 计分析仪器运用程序设计
	F.I.I. BT Invest 1 administrat de BT Asset Management SA	51,8898
	of the series of Tincau Tibor アステンシュール	28.1346
	Other shareholders	19,9756
	Гоtal	100,0000
	$\cdots$

On 31.12.2016, the Company is owned by the following shareholders:

Closed Investment Fund (FI.I.) BT Invest 1 acquired a majority stake of 51,89% in May 2016 to CHEMPARK Invest SRL, through a secondary market transaction, notifying the Financial Supervision Authority (ASF) and Bucharest stock Exchange (BVB).

Evidence shares and shareholders is kept by Depozitarul Central S.A. Bucharest.

The entity that enters into consolidation

For fiscal year 2016 was included in the consolidation of the commercial company SC CHIMPROD S.A., with the following identification data:

Company Name: Headquarters: Phone number / fax: Fiscal registration code: Trade Register No.: Share capital:

SC CHIMPROD S.A. Oradea, No.35 Borsului Road 0259 456 110 (RO) 67 345 J/05/1984/1992 90,000 Lei

Company shares S.C. CHIMPROD S.A., they are not traded on the regulated market of securities.

The company is managed by mandate by SC Sinteza S.A., having as permanent representative Mr. Catalin Marias.

Stake of SC Sinteza S.A. is 99.765% and the stake of non-controlling interest is $0.235\%$ .

Publishing date of approval of financial statements

Financial communication calendar is approved by the Company's executive management in accordance with the statutory provisions and shall be made public by publication on the Company's website.

2. Basis of preparation

Statement of Compliance

Individual and consolidated financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRS). Beginning with fiscal year 2012, the Company and the Group are required to apply International Financial Reporting Standards (IFRS).

Basis of consolidation

The consolidated financial statements comprise the financial statements of the parent company S.C. Sinteza S.A. and those of company in the consolidation (subsidiary) SC CHIMPROD S.A. as an entity controlled by the parent company.

Presentation of Financial Statements

Individual and consolidated financial statements are presented according to the requirements of IAS 1 "Presentation of Financial Statements", based on liquidity in the statement of financial position and based on the nature of income and expenses in the statement of comprehensive income.

Functional and presentation currency

The functional currency is the RON (LEU). Individual and consolidated financial statements are presented in RON.

Basis of assessment

The individual financial statements and statements have been prepared on a historical cost basis, except tangible assets which are measured at fair value every two years.

The accounting policies have been applied consistently for the periods presented in these financial statements. Was going concern.

Use of estimates and judgments

12

Preparation and presentation of consolidated and individual financial statements according to International Financial Reporting Standards (IFRS) requires the use of estimates, judgments and assumptions that affect the application of accounting policies and the reported amounts. Estimates, judgments and assumptions are based on historical experience. The results of these estimates form the basis for judgments about the carrying amounts that can not be obtained from other sources.

When some elements of the annual financial statements can not be measured accurately, it is estimated.

The estimates are made based on the most recent reliable information at their disposal.

To changing circumstances on which the estimate was based or as a result of new information or a best experiences may lead to a modification of the initial estimate.

Any change in accounting estimates will be recognized prospectively by including it in the result:

D period of the change if it affects only that period; or

period in which the change occurs and future periods if the change has an effect on them

The group estimates used to determine:

D bad debts and doubtful debts related adjustments;

D value of provisions for risks and charges amounted at year-end litigation, decommissioning of tangible assets, restructuring for pensions and similar obligations for taxes.

□ lifetime of depreciable assets for which the revaluation, fair value is determined and a new term economic use.

Judgments and assumptions are reviewed periodically by the Company and are recognized in the periods in which the estimates are revised.

3. Significant accounting policies

Parent and subsidiary companies organize and lead the financial accounting according to the Accounting Law no. 82/1991, as amended and supplemented.

Financial accounting provides chronological and systematic registration, processing, publish and maintain information about the financial position, financial performance and other information related to the work.

The accounting policies have been developed so as to ensure supply, the annual financial statements, certain information must be understandable, relevant to the needs of users in decision making, credible meaning to represent faithfully the assets, liabilities, financial position and profit or loss of the company do not contain significant errors, not to be biased, to be prudent, complete in all material respects, comparable so that users can compare the financial statements of the company over time to identify trends in financial position and performance and can compare financial statements with those of other companies to assess the financial position and performance.

The accounting policies have been applied consistently to all periods presented in these financial statements.

The individual financial statements are prepared on the assumption that the Company will continue its operations in the foreseeable future.

Transactions in foreign currencies

Operations in foreign currencies are recorded in RON at the exchange rate on the date of the transaction.

At the end of each month, the liabilities in foreign currency are valued at the exchange rate of the currency market, announced by the National Bank of Romania the last banking day of the month in question. Exchange differences are recognized in the accounts recorded in income or expense from foreign exchange differences, if applicable.

Exchange differences arising during the settlement of foreign currency debts at rates different from those at which they were originally recorded during the month or to those which are accounted to be recognized in the month in which they appear as income or expense in exchange rate differences.

Value differences arising during the settlement of debts denominated in RON, according to an exchange rate different from that to which they were originally recorded during the month or to those which are accounted to be recognized in the month in which they appear to other financial income and expenses.

Accounting for the effect of hyperinflation

In accordance with IAS 29 "Financial reporting in hyperinflationary economies" in the financial statements of an entity that used the currency as the functional currency of a hyperinflationary economy, monetary items must be restated use a general index of price growth.

Both the parent company and its subsidiary have not done adjusting for noncash items for 2016, because they were regularly evaluated and values were included in share capital to the data. At the date of transition to IFRS implementation (2012) was made a reprocessing and an evaluation of all assets and liabilities, thereby encircling the balance sheet and the effects of hyperinflation which affected the Romanian economy until 2004.

Financial instruments

Parent Company and subsidiary owning non-derivative financial assets: trade receivables, cash and cash equivalents.

The claims include:

$\Box$ trade receivables, which are amounts owed by customers for goods sold or services rendered in the ordinary course of business;

□ receivable effects, commercial acceptance, third party tools;

□ amounts owed by directors, shareholders, employees and affiliates.

The claims outlined in accrual basis, according to legal or contractual provisions

The effects can be expected receivable before maturity.

At the end of each month, foreign currency receivables are valued at the exchange rate of the currency market, announced by the National Bank of Romania the last banking day of the month in question. Exchange differences are recognized in the accounts recorded in income or expense from foreign exchange differences, if applicable.

At the end of each month, receivables denominated in RON, whose settlement is based on a foreign currency are valued at the exchange rate of the currency market, announced by the National Bank of Romania the last banking day of the month in question. In this case, the differences are recognized in the accounts at other financial income or other financial

expenses, as appropriate. Exchange differences arising during the settlement of claims in foreign currency at rates different from those at which they were originally recorded during the month or to those which are accounted to be recognized in the

month in which they appear as income or expense in exchange rate differences.

Value differences arising during the settlement of claims expressed in lei, according to an exchange rate different from that to which they were originally recorded during the month or to those which are accounted to be recognized in the month in which they appear to other financial income and expenses.

Accounts from banks comprise:

D Values receivable (checks and notes deposited in banks)

availabilities and foreign currency

□ The checks issued by the company

□ short-term bank loans

□ availability and interest on loans granted by banks in current accounts. Interest payable and receivable, financial year in progress is recorded in financial income or financial expenses, as appropriate.

The operations of sale of foreign currency, including those carried out under contracts settled on time, are recorded in the accounting rate used by commercial bank undergoing tender currency; They generate accounting exchange differences against the National Bank of Romania.

Foreign currency deposits are evaluated monthly at the rate of the National Bank of Romania for the last business day of the month.

Liquidation deposits in foreign currency shall be made at the exchange rate of the National Bank of Romania from the date of the liquidation.

Exchange differences between the exchange rate at the date of incorporation or which are accounted for and the National Bank of Romania from the date of liquidation of bank deposits are recorded in income or expense from foreign exchange differences, if applicable.

Tangible assets

Tangible assets are assets that:

□ are owned by a company for use in the production of goods or services, for rental to others or for administrative purposes; and D are used over a period longer than one year.

15

Tangible assets include:

$\Box$ land and buildings;

$\Box$ technical installations and machines;

$\Box$ equipment and furniture;

$\Box$ real estate investments:

$\Box$ advances to suppliers of fixed assets;

$\square$ tangible in progress;

□ investment property under construction;

□ tangible exploration and evaluation of mineral resources.

Tangible assets are initially measured at cost. This is the cost of acquisition or production cost, depending on the mode of entry into society of property and equipment.

Trade discounts granted by the supplier and included in the purchase invoice adjusted downwards acquisition cost of assets.

The production cost of assets includes direct costs related to production such as direct materials, energy consumption for technological purposes, the costs of salaries, contributions to legal and other expenses related thereto, directly resulting from the construction of property and equipment, costs of site preparation costs initial delivery and handling, installation and assembly costs, testing costs of the proper functioning of the asset, professional fees and fees paid in connection with the asset, the cost of designing products and obtain necessary permits;

Subsequent expenditure on a tangible asset is recognized: $\Box$ as expenses in the period in which they were incurred if they are considered repairs or purpose of these expenditures is to ensure the continued use of the asset while maintaining the original technical parameters; or

$\square$ as a component of the asset, as subsequent expenses, if the conditions to be considered investment on fixed assets.

Tangible assets shown in the balance sheet at their fair value. Tangible assets are revalued at an interval of 2 years.

In years not performed revaluation, tangible assets are presented in the financial statements at the value set last revaluation less accumulated depreciation and adjustments for impairment loss.

Depreciation of tangible assets is calculated starting with next month commissioning and until full recovery of their input.

The Group calculated and accounted depreciation of tangible leased, rented or leased by management.

Land is not depreciated.

Economic lifetime is the period in which an asset is expected to be available for use.

The useful lives of the main categories established by the company of its intangible heritage are the usual chemical industries.

Depreciation is recorded in the accounts as still life and depreciation method initially set. Depreciation of tangible assets, the Company uses straight-line depreciation, by including uniform operating expenses of fixed amounts determined in proportion to the number of years of the life of their economic use, the following categories of assets:

• building:
• technical installations and machines:
• equipment and furniture

Lifetime originally set to be revised (downward or growth) whenever there are changes in the conditions of use initially estimated, there is an aging of a tangible asset, when there is a shelf-life or find a technical state that It allows a longer life than the initially estimated.

Following the initial estimate established life, depreciation expense will be recalculated for the remaining period of use.

Tangible assets held under finance leases are accounted according to the provisions of leases concluded.

The classification of leases to finance leases or operating leases are carried at the beginning of the contract.

Intangible assets

Within intangible assets include:

$\Box$ development costs:

□ concessions, patents, licenses, trademarks, rights and similar assets and other intangible assets:

• $\Box$ goodwill;
• advance payments for intangible assets;
• □ intangible exploration and evaluation of mineral resources

An intangible asset must be recognized if and only if:

$\Box$ it is estimated that future economic benefits that are attributable to the asset will be obtained by the company; and

C cost of the asset can be measured accurately.

An intangible asset is initially recorded at cost or production depending on the mode of entry heritage.

Development costs are recognized at their cost of production.

The production cost of property from the development phase includes

direct costs associated with the production as direct materials, energy

consumption for technological purposes, the costs of salaries, contributions to legal costs of testing correct operation of the asset, professional fees and fees paid in connection with the asset, the cost of obtaining the necessary permits. Development costs which are recognized as intangible development costs are amortized over the contract period or duration of use, where appropriate.

Financial assets

17

Within financial assets include:

□ shares in subsidiaries:

$\Box$ loans granted to entities in the group:

□ shares in associates and jointly controlled entities;

$\Box$ loans to associates and jointly controlled entities;

$\Box$ other long term investments;

$\Box$ other loans.

Financial assets are recognized at the entrance to the heritage value of the acquisition.

Periodic adjustment for the impairment proposes to the General Meeting of Shareholders and affects the fiscal year to which it relates.

Items of stocks

Registration in stocks accounting entry is made at the date of transfer of risks and rewards. Entry into society, stocks are assessed and accounted at cost, which is determined as follows:

$\Box$ the cost of acquisition - for purchased stocks;

$\Box$ the production cost of default - for stocks produced in the society; $\Box$ the input value, following the evaluation - for stocks representing the company capital:

$\Box$ at fair value - for stocks obtained free of charge or addition to inventory found.

Trade discounts granted by the supplier and included in the purchase invoice reduces the acquisition cost of goods.

In determining the cost of production using standard cost method, taking into account normal levels of materials and supplies, labor, efficiency and production capacity.

Considered normal levels of material consumption shall be reviewed within 12 months.

Exit from inventory they assess and record by applying the FIFO method, namely the nature of inventory items that were purchased or produced first are those that consume or sell first. Items remaining in stock at the end are those who were purchased or produced most recently. At balance sheet date inventories are valued at the lower of cost and net realizable value.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and costs necessary sales. When the company decides to change the use of a property, meaning that it will be sold at the time the decision on change of destination, accounting records transfer of tangible asset category in the inventory held for sale.

Income

18

Revenue represents increases in economic benefits, incurred during the year, which generated an increase in equity in forms other than those which express the company's contributions's new owners.

Both revenue category includes amounts received or receivable in his own name and gains from any source.

Revenues are classified as follows:

Operating income:

□ Financial income:

Revenues are recognized on an accrual basis.

Revenues from sales of goods are recorded when handing goods to the buyers of their delivery based on the invoice or other conditions stipulated in the contract, evidencing the transfer of ownership of such goods to customers. Revenues from sale of goods is recognized when the following conditions are

met:

a) have been transferred to the buyer the significant risks and rewards of ownership of the goods;

b) the company no longer manages the goods sold at levels that would have done normally, if ownership over them and no longer have effective control over them:

c) the revenue can be measured reliably;

d) it is probable that the economic benefits associated with the transaction will flow to the company; and

e) transaction costs can be measured reliably.

Revenues from provision of services are recorded in the accounts are made, related to the stage of completion of the work.

The stage of completion of the work shall be determined on the basis of the papers accompanying bills, minutes of acceptance or other documents evidencing the state of development and acceptance of services rendered.

Interest income is recognized periodically, proportionally, the respective revenue is generated.

Revenues from royalties and rents are recognized as the maturity of the contract.

Dividend income is recognized when it established the shareholder's right to receive them.

Income from reduction or cancellation of provisions or adjustments for depreciation or impairment is recorded where no longer justify maintaining their realization risk occurs or becomes chargeable expense.

It is measured at the value determined by agreement between seller and buyer, taking into account the amount of any trade discounts granted.

Income received before the balance sheet for the financial year which are subsequently shown to revenues in advance.

Costs

The expenses of the parent company and the subsidiary represents the amounts paid or payable to:

$\Box$ consumption stocks;

$\Box$ works executed and services provided that benefit society;

E employees expenses:

E execution of legal or contractual obligations;

$\Box$ provisions;

$\Box$ depreciation:

$\Box$ adjustments for depreciation or loss of value.

Keep the expenditure accounts of expenses, as follows:

operating expenses;

□ financial expenses.

Synthetic spending accounts that contain multiple items with different tax deductibility regime develops analytical, so that each analytic reflect specific. content.

Debts

Debts evidenced by accounting accounts on behalf of third parties. Accounting suppliers and other liabilities take into categories and each person or entity.

Personal rights shall be accounted by withholding contributions

Profit tax payment should be recognized as a liability to the extent unpaid.

Deferred tax is the amount of income tax payable in a future period. Deferred tax liabilities are the amounts of income taxes payable in future periods in respect of taxable temporary differences.

Is calculated based on tax rates that are expected to be applicable to temporary differences at their resumption, under the legislation in force at the reporting date.

Deferred tax assets are the amounts of income taxes recoverable in future periods.

Representing deferred tax assets and liabilities are compensated only if there is a legal right to offset current tax liabilities and debts.

Debt in foreign currency are recorded in the accounts in lei (RON) and in foreign currency.

At the end of each month, the liabilities in foreign currency are valued at the exchange rate of the currency market, announced by the National Bank of Romania the last banking day of the month in question. Exchange differences are recognized in the accounts recorded in income or expense from foreign exchange differences, if applicable.

Exchange differences arising during the settlement of foreign currency debts at rates different from those at which they were originally recorded during the month or to those which are accounted to be recognized in the month in which they appear as income or expense in exchange rate differences.

Valuation of liabilities in the financial statements at their value is likely to pay.

The measurement of foreign currency and the settlement in lei by a foreign currency is made at the exchange rate of the National Bank of Romania, valid on the date of each financial year.

Provisions

A provision will be recognized in the accounts when:

D Company has a present obligation generated by a previous event;

$\square$ it is probable that an outflow of resources will be required to settle the obligation: and

□ a reliable estimate can be made of the amount of the obligation.

Provisions are not recognized for future operating losses.

Provisions are reviewed at individual financial statement date and adjusted to reflect the current best estimate.

Where to settle an obligation is no longer probable that an outflow of resources, provision is invalidated by resuming revenue.

Commercial and financial discounts

Trade discounts granted by the supplier and included in the purchase invoice adjusted downwards acquisition cost of goods.

Trade discounts to customers in order to reduce the amount of income adjusted for the transaction.

Contingent assets and liabilities

Contingent assets and liabilities are presented in the notes if the inflows are likely to arise economic benefits.

They are assessed annually to determine if it became probable that an outflow of resources embodying economic benefits and requires recognition of a liability or a provision in the financial statements for the period of this change in classification of the event.

Events after the preparation of financial statements

Events after the balance sheet date are those events, favorable or unfavorable, that occur between the balance sheet date and the date the annual financial statements are authorized for Issue. They are presented in the notes when they are considered significant.

Standards and new interpretations

New interpretations have been issued, amendment or standards, which became effective for fiscal year 2016 or that were not adopted.

They have not been applied in preparing the financial statements of 2016.

The Company does not expect these new standards or interpretations amendamende significantly affect its financial statements.

4. Determination of fair values

21

Disclosure requirements of the information contained in the financial statements as well as some of the Company's accounting policies determine the need for their presentation.

The Company assessed the fair value of property items at the date of transition to IFRS and the financial statements of prior periods presented at fair value.

The market price of property items does not require significant adjustments to the current period's financial statements.

5. Tangible assets and the community of the set

Individual situation at its parent company shows: and an

				Tangible
	Land	Buildings	Equipment	assets	Total
			and other	under construction
Cost or appraised value
Balance at January 1, 2016	13.485.777	18.153.975	19.705.138	5.617.536	56.962.426
Increases	976.364	23.827	2.521.695	3.056.078	6.577.964
Decreases	490.261	319.992	53.683	3.145.982	4.009.918
Balance December 31,2016	13.971.880	17.857.810	22.173.150	5.527.632	59.530.472
Depreciation and write-downs				GARAGAN CORPORATION
Balance at January 1, 2016		1.517.618	4.428.388		5 946 006
Increases		482.983	1.510.364	** 33.3 T	1.993.347
Decreases		94.741	21.559		116.300
Balance December 31, 2016		1.905.860	5.917.193		7.823.053

At Group level, the situation is:

				Tangible
	Land	Buildings	Equipment and other	assets under	Total
				construction
Cost or appraised value
Balance at January 1, 2016	13.485.777	18.153.975	19.926.593	5.414.139	56.980.484
Increases	976.364	23.827	2.521.695	2.353.714	5.875.600
Decreases	490.261	319.992	53.683	3.145.982	4.009.918
Balance December 31, 2016	13.971.880	17.857.810	22.394.605	4.621.871	58.846.166
Depreciation and write-downs
Balance at January 1, 2016		1.517.618	4.483.752		6.001.370
Increases		482.983	1.528.819		2.011.802
Decreases		94.741	21.559		116300
Balance December 31, 2016		1.905.860	5.991.012		7.896.872

Tangible assets include assets affected the company carrying out production. Some of these assets are mortgaged or pledged to guarantee loans taken from banks.

Tangible assets represent investments are being finalized in order to increase production capacities.

The depreciation method used by the company for all classes of depreciable assets is the linear method.

The formula used to calculate the annual depreciation (Aa) and the rate of depreciation (R) is:

$Aa = Ra X Va$

$100₁$

Ra = -----DUN

Where: Ra = annual rate of amortization depreciable value DUN = normal period of use or useful life.

The useful lives of fixed assets at the commissioning were employed within the limits stipulated by the internal regulations regarding the classification of fixed assets and were not modified during 2016.

For proper closure of the financial year 2016 the Company proceeded to the revaluation of tangible assets. Was brought from revaluation at fair value, the value not amortized as follows:

• Land value increase of 663.654 lei;
• Buildings, lowering the value of 593.433,57 lei;
• Technological equipment, decrease the value of 219.792,68 lei;
• Devices for measuring, control, regulation, decrease the value 99.017,26 lei:
• Transport, increase value 113.748,74 lei;

Furniture and office 1.103,98 lei decrease value.

Revaluation differences were recorded on account of revaluation reserve account.

6. Intangible assets

In the parent Company are highlighted in this group of property value paid licenses of European regulators manufacture and sale of chemicals. Also during 2016 the company purchased a license extension antivirus software.

7. Financial assets

The parent Company holds 99,765% of the subsidiary SC CHIMPROD S.A. Oradea and another shares:

1. A total of 337.454 shares with nominal value of 0,16 RON to SSIF BRK Financial Group SA headquartered in Cluj Napoca, 0,0999% of the share capital.

2. A total of 1.000 shares with nominal value of 1 RON, the Organization of Employers Chemical Petrochemical Bucharest.

The carrying value of securities held by the Company at SSIF BRK Financial Group SA was adjusted to market value of 31.12.2016 by their depreciation value of 147.025,65 lei compared to book value.

8. Stocks

Individual situation at its parent company shows:

			31.12.2015	31.12.2016

Raw materials	687.206	844.396
Finished product	2.980.300	4.467.153
Products in progress	834.557	778.803
Goods	23.202	23.089
Packing	71.826	70.034
Assets held for sale	19.430.931	4.164.340
	24.028.022	10.347.815
Total

At Group level, the situation is:

31.12.2016 31.12.2015

Raw materials	947.266	대표 : 1.184.942
Finished product	2.980.300	4.399.653
Products in progress	913.575	and the 778.803
Goods	23.217	23.089
Packing	72.464	70.672
Assets held for sale	19.430.931	4 164 340
Total	24.367.753	10.621.499

In the month of October 2016 Sinteza SA closed a transaction for the sale of land in heritage revealed in accounting in account Assets held for sale. The transaction value was EUR 4.8675 million payable in several installments, the last being in 15.01.2017.

9. Trade receivables

Individual situation at its parent company shows:

	31.12.2015	31.12.2016
Customers	4.108.217	8.419.456
Doubtful and disputed	25.102
Debtors Suppliers	0	32.653
Customer Bills drafted
Advance payments
Impairment of receivables Total	O	$-94.371$
	4.133.319	8.325.085
At Group level, the situation is:	31.12.2015	31.12.2016
Customers	2.555.113	6.870.937
Doubtful and disputed	88.991	63.889
Debtors Suppliers	n	32.653
Customer Bills drafted Advance payments
Impairment of receivables
Total		$-94.371$
	2.644.104	6.873.108

The company's commercial relations continued to be formalized by commercial farms contracts in 2016, and during this time customers are traditional ones. Over 90% of products manufactured exports were delivered to beneficiaries in member countries of the European Union or Non EU. There is a definite dependence of the EU Community market where the company delivers about 70% of production exported.

On the 31.12.2016, the Company outstanding receivables were in the amount of 2.569.460 RON. Of these, receivables in the amount of 349.220 RON had been working less than 30 days and the remaining 2.220.240 RON was represented by receivables older than 30 days. At the reporting date the company has not classified the claims as impaired nor was the risk provisions for their noncollection.

25

1. Cash and cash equivalents

Individual situation at its parent company shows:

31.12.2015 31.12.2016

Total	574.360	3.101.497
Other values	185	211
Cash	6.903	6.248
Current bank accounts	567.272	3.095.038

At Group level, the situation is:

$\sim$ $\sim$ 그렇게 보이면 아버지가 아주 있다.	31.12.2016 31.12.2015
注目の中	There	医肌腺激素
Current bank accounts	intro-tiginalis ( 572.731	1980-13.101.720
and the first Cash	7.264	7,045
Other values	185	211
$\sim$ 3 ISBN 977 Total	the state of 580.180	3.108.976

11. Other receivables

Individual situation at its parent company shows:

31.12.2015		31.12.2016

Settlement of transactions pending clarification		471
Other receivables related to staff		$-1.100$
Other receivables related to state budget (VAT recoverable)	628.397	804.122
Deferred income tax (receivable)	13.869.367	2.609.988
医原子腺炎 医克里尔氏试验检尿道 经公司利润 Total	14 497 764	3.415.681

At Group level, the situation is:

	31.12.2015	31.12.2016

Settlement of transactions pending clarification		$\sim$ 471
Other receivables related to staff		$-1.100$
Other receivables related to state budget (VAT recoverable)	628.397	804.433
Deferred income tax (receivable)	13.869.367	2.609.988
Total	14.497.764	3.415.992

n di San

1. Assets classified as held for sale

In this category were recorded in the preceding years fixed and parts of decommissioned installations that can be realized as individual assets, totaling in the balance at 31.12.2016 of 4.164.340 lei.

13. Share capital and share premium

Sinteza SA shareholding structure is as follows (percentage):

그는 아이들은 그 사람들은 그 사람들을 하고 있다. 그는 사람들은 그 사람들은 그 사람들은 그 사람들을 하고 있다. in a choireadh ann an Choireadh ann an Choireadh an Choireadh ann an Choireadh an Choireadh an Choireadh an Ch 电子电子 医心包 医心包 医无线 化电压分子 医单骨结节 医生 医心包结 化二硫酸盐 医结核性的 in the company of the company of the company of the company of the company of the company of the company of the the contract of the contract of the contract of the contract of the contract of the contract of the contract of なべ、今のほどなくと、「おお茶」という言い方法としているということになった。いこといい $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ the company of the company of the company of the company of the company of the company of the company of the company of the company of the company of the company of the company of the company of the company of the company a sa mga kalawang sa mga kasang mga kalawang mga kalawang mga kalawang mga kalawang mga kalawang mga kalawang the contract of the contract of the contract of the contract of the contract of the contract of the contract of . - 医马氏气管 医心室引流 网络阿拉伯的阿拉伯 \$ 981.12.2015 马氏腺原 31.12.2016 -

SC Chempark Invest SRL
F.I.I. BT Invest 1	51,8898
Tincau Tibor		51,8898
Other shareholders	28,1346	28,1346
	19,9756	19.9756
™otar

During 2016 change occurred shareholder of Sinteza SA by acquisition of a 51,89% shares of F.I.I. BT Invest 1 managed by BT Asset Management S.A.I. S.A.

Subsidiary's shareholding structure is as follows (percentage):

	31.12.2015	31.12.201
--	------------	-----------

SC Sinteza SA
Other shareholders	99,765	99,765 Million September 2005 Million September 2005 Million September 2005 Million September 2005 Million Sep
Total	0,235	0.235
	100	100
.

As required by law, the mother Company level and entity entered in the consolidation, it creates legal reserves in the proportion of 5% of profits recorded up to the amount representing 20% of the share capital.

Regarding the change in equity of the parent company by lowering their value at 31.12.2016 value of 8.787.041 RON, this is due to the following changes in the structure:

• Decrease in the revaluation reserve of 85.398.366 lei, caused the greatest extent switching to retained earnings of the revaluation surplus for land sold in the month of October 2016.

• Decrease in the outstanding balance of retained earnings of 73.956.961 lei caused by the same land sale transaction in October 2016 (the revaluation reserve recorded on transition to IFRS, negative)

• Increase the legal reserve of 299.740 lei

• Increase of other reserves 956.128 lei by incorporating gross amounts representing tax exempt under the provisions of the Tax Code for investment commissioned in 2016 by the Company - Central steam.

• Net profit growth for the year with 2.744.587 lei compared to 2015; - Samplings of net profit increase compared to 2015 by shares 1.346.091 lei to the legal reserve and the tax incentives for tax reduction related to the steam plant was put into operation.

Reserves held by the company amounted to 55.531.330 lei consisted of:

• Revaluation reserves in the amount of 51.427.496 lei;

• Legal reserves in the amount of 1.213.255 lei;

• Other reserves in the amount of 2.890.579 lei

These elements of equity have been restated, following last evaluation at fair value for tangible performed at the end of 2016.

Company continued in 2016 to manage capital and considering all its components as defined by the Romanian legislation. There were no cases of exclusion of quantitative or consideration as a component of equity in the balance sheet items other than those covered in domestic legislation.

14. Trade payables and other liabilities

Individual situation at its parent company shows:

	31.12.2015	31.12.2016
Commercial suppliers	3.637.580	4.391.760
Suppliers investment	145.722	379.198
Suppliers - Contributors		$-11.211$
Amounts debts to credit institutions	15.379.054	2.827.608
Debts to the state budget	114.341	137.025
Debts to the employees	93.789	109.093
Current income tax		3.058.824
Other debts	3.422.623	1.861.775
Total	22.793.109	12.776.494

At Group level, the situation is:

31.12.2015	31.12.2016

Commercial suppliers	3.583.912	4 344 728
Suppliers investment	145.722	379.198
Suppliers - Contributors		11.211
Amounts debts to credit institutions	15 379 054	2827608
Debts to the state budget	195.334	174.822

Debts to the employees	104.640	120.956
Current income tax
Other debts		3.060.215
	3.422.623	1.861.775
Total	22.831.285	12.780.513

15. Loans

Regarding loans company, continued the policy of appealing to funds raised to finance working capital. in a bhail filim a bhaile ann an c

Bank loans in progress at the end of 2016 are contracted only in the parent company S.C. Sinteza S.A. and are the following:

1. Credit investments to expand and modernize manufacturing facility benzoic acid, guaranteed by mortgage on land and buildings located in Oradea Borsului Road No.35 and with pledge on current account of the company opened at the financing bank and the assignment of the insurance policy on the property pledged as collateral.

2. Credit line to support current activity, guaranteed by mortgages on land and buildings located in Oradea, Borsului Road No.35, pledge on the current account of the company opened with bank financing and divestment of the insurance policy on the property pledged as collateral;

3. Credit for current activity in the short term, credit card, guaranteed by pledge on the current account of the company opened with bank financing.

Besides loans contracted, the company has other financial commitments related to current activity and investment, namely:

1. Letter of guarantee in favor of the principal supplier of raw materials; 2. Guarantee in favor of the Ministry of Finance to guarantee payment obligations to the budget that benefit society rescheduled CHIMPROD SA

In the month of May 2016 the company contracted a real estate financial lease (leaseback) transaction value was 400,000 euros, the contract being valid for 5 years.

16. Impairment of receivables - customers

In the year 2016, the company made adjustments for doubtful debts amounting to 94.370,54 lei. The Company entered into consolidation CHIMPROD SA did not record such operations.

17. Income in advance

In 2016 the company reflected in the statement of income amounts received in advance from customers in future deliveries account. Account balance on 31.12.2016 amounting to 17.109 lei highlights the value of these advances for merchandise contract has not been invoiced and delivered to beneficiaries.

18. Turnover

The turnover of financial year 2016 is as follows:

Individual situation at its parent company shows:

	31.12.2015	31.12.2016
Revenue from the sale of finished products	25.037.385	24.903.526
Income from sale of goods	9.559	1.244
Income from rents and locations	1.506.082	1459.393
Revenue from rendering of services	192,508	259.203
Other revenue (invoicing, waste products)	523.686	24.228
Total	27.269.220	26.647.594

At Group level, the situation is: At Group level, the situation is:

1. 密西辛特

TA 대통화 SINA 및 일본 및 및 AMA EX PARTY SA A 제1 (19) 는 1
di dikeluaran pendu $\sim 10^{11}$ and $\sim 10^{11}$	31.12.2015 31.12.2016
Revenue from the sale of finished products	25.037.385	24.697.822
Income from sale of goods	9.559	1.244
Income from rents and locations	966.082	919.393
Revenue from rendering of services	197.196	265.743
Other revenue (invoicing, waste products)	523.686	24.228
Total	26.733.908	25.908.430

tag Eta Chin

A reportable segment is a component of an entity that engages in business activities from which it can get revenues from which can incur expenditure, the results of which are reviewed periodically and for which separate financial information is available.

The company did not hold separate components that engage in business activities, items of income derived from activities other than industrial production data being incidental.

The share is the main business activity of industrial production, the result of which is reviewed periodically by the chief operating

19. Raw material costs and consumables

Individual situation at its parent company shows:

31.12.2015

31.12.2016

Raw materials
Consumables	14.899.106	15.347.023
Combustible	141.037	274.227
Spare parts	63.991	63.326
Labor protection and other materials	33.701 24.058	46.043
Total		26.333
	15.161.893	15.756.952
At Group level, the situation is:
	31.12.2015	31.12.2016
Raw materials	14.899.106	15.347.023
Consumables Combustible	162.656	383.411
	66.023	64.344
Spare parts Labor protection and other materials	34.319	46.590
Total	27.257	30.495
	15.189.361	15.871.863
20. Other material expenses Individual situation at its parent company shows:
PRESERVE attitud ta kale Karagi kan	Wind Xi H Winds 31.12.2015	31.12.2016
Packing	364.695	449.833
Materials inventory objects	36.071	42.990
Other materials anstocked Total	491 401.257
At Group level, the situation is:
	31.12.2015	31.12.2016
Packing
Materials inventory objects	364.695
Other materials anstocked	37.848 1.349	2.494 495.317 449.833 49.131 3.106

21. Expenses for employees

$\begin{aligned} \frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{\sqrt{2}}\frac{1}{$

$\frac{1}{31}$

Individual situation at its parent company shows:

	31.12.2015	31.12.2016
Expenditure on staff salaries	2.353.834	2.641.687
Social security and social protection	537.625	656.383
Total	2.891.459	3.298.070
At Group level, the situation is:
	31.12.2015	31.12.2016
Expenditure on staff salaries	2.675.530	3.034.404
Social security and social protection	613.033	749.023
Total	3.288.563	3.783.427

Company employees are paid according to the salary negotiated individual contracts of employment with the full range of social benefits provided by Romanian legislation. At the company level there is a collective agreement and therefore not awarded additional benefits in the short term, long term or post-employment benefits Share-based payment. Key management personnel of the company enjoy the same rights as the rest of the employees salary without existing rights and additional benefits.

Board members are paid a fixed monthly allowance, established by the General Meeting of Shareholders. During 2016 total expenditure allowance administrators were 187.986 lei.

s e com

22. Expenses external supply

1. 25 2

Individual situation at its parent company shows:

2012/19 작품단 2010 - No. 2011

signitudini.

	31.IZ ZV 13	31. IZZU I D
		459.292
Maintenance and repairs	7.381
Post and telecommunications	26.468	32.147
Advertising and publicity	250	83
Transport	433.924	757.600
Banking services	256.442	178.896
Trips and delegations	22.064	25.598
Protocol	6.026	4.205

32

Collaborators
Rents	Ω	196.552
Fees	7.911	84.975
Insurance	40.600	53.665
	14.012	27.210
Other expenses for third party services Total	1.319.709	886.823
	2.134.787	2.707.046
At Group level, the situation is:
	31.12.2015	31.12.2016
Maintenance and repairs	$-7.381$	137.234
Post and telecommunications	26.634	32.318
Advertising and publicity	250	83
Transport	433.924	757.600
Banking services	258.912	181.723
Trips and delegations Protocol	22.773	26.219
	6.026	4.205
Collaborators Rents		196.552
Fees	7.911	84.975
Insurance	40.600	58.365
	14.012	27.210
Other expenses for third party services	933.824	710.927
Total	1.752.247	2.217.411

23. Financial income and expenses

j.

Individual situation at its parent company shows:

31.12.2015 31.12.2016 $\mathbf{v}$ , $\mathbf{v}_1$ , $\mathbf{v}_2$ , $\mathbf{v}_3$ , $\mathbf{v}_4$

Interest income
	20	1.658
Income from exchange rate differences	762.398	531.006
Total	762.418	532.664
Interest expenses	587,956	433.992
Expences from exchange rate differences	908.509	546.625
Total	1.496.465	980.617

At Group level, the situation is:

31.12.2015

31.12.2016

Interest income	20	1.658
Income from exchange rate differences	762.398	531.006
Total	762.418	532.664
Interest expenses	587.956	433.992
Expences from exchange rate differences	908.509	546.625
Total	1.496.465	980.617

24. Income tax

Individual situation at its parent company shows:

	31.12.2015	31.12.2016
Current income tax
Current income tax expense	98.456	3.234.388
Tax (receivable) Deferred income
Tax (receivable) Deferred income	13.869.367	2.609.988
At Group level, the situation is:
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	31.12.2015	31.12.2016
Current income tax
Current income tax expense	98 456	3.255.781
Tax (receivable) Deferred income
Tax (receivable) Deferred income	13.869.367	2.609.988

25. Earnings per share

SC Sinteza SA achieved in 2016 a net profit of 2.760.412 lei, of which 299.740 lei was taken to constitute legal reserve and the amount of 1.052.065 lei was taken to Other reserves, representing profit for that benefits of exemption from tax as a result of its investment in a steam power plant commissioned in 2016.

The calculation of earnings per share was made on the basis of annual net profit attributable to shareholders, based on the number of shares held. This is 0,0213 lei / share (basic earnings per share).

In the course of 2016 was transferred to retained earnings, the revaluation surplus realized by selling an asset (land). The amount so established, 15.015.774 lei, becomes available for use. Earnings per share calculated and depending on the result (cumulative) is 0,2484 lei / share.

In the shareholding structure does not register with right holders for distribution of dividends in other parts odds.

No shares are distributed free or preferential rights in respect the allocation of dividends.

In a reasonable period no intention of diluting shares through a Preferential distribution. This leads to a draw between earnings per share basic and diluted one, as above.

In the course of 2016 have not been proposed or declared dividends from the profit year, prior to approving the financial statements by the Board of Directors.

The Company has recorded in the dividends paid account, amounts representing dividends approved for distribution earlier financial years of 2016.

26. Related parties

Related parties are considered persons on the Board of Directors and directors (executive management) parent company:

On 31.12.2016 Board consisted of:

• Claudiu Sorin Pasula, Chairman of the Board
• Radu Vasilescu, member of the Board
• Gavin Ryan, membermof the Board

On 31.12.2016 executive management consisted of:

General Manager	Catalin Marias
Sales Manager	- Dinu Vancea
Product Manger	Constantin Hantaru
Financial Manager	Viorel Florut - Vese
Devlopement Manager	lonel Sabau

27. Transactions between the parent company and subsidiary

In terms of transactions between the parent company and its subsidiary, they were of a commercial nature, resulting in rental space for this activity and sale / purchase of maintenance works and investments as follows:

• Sales of the parent company to the subsidiary: 745.704 RON

• Purchases from the subsidiary of the parent company: 1.444.438 RON.

Revenues from sales of SC Sinteza SA in relation to affiliated company SC CHIMPROD come from the monthly equivalent rent for space used inside the industrial platform, according to the lease contract between the parties, but other sales.

SC Sinteza SA purchases from affiliated company SC CHIMPROD SA are embodied in the provision of services which the latter they carry monthly maintenance production units and administrative spaces, but the investment works.

28. Other liabilities

The parent company amounted to pledge in favor of the Ministry of Finance -Public Finance Administration Oradea - to guarantee installment payment of obligations SC CHIMPROD SA to the state budget.

The quarantee is made on real estate owned by the company in Oradea, Borsului Road, no. 9.

29. Assets and Contingent Liabilities

There are no other contingent assets or liabilities at the company or group.

1. Events after the financial statements

There were no events subsequent to the date of the financial statements.

31. Standards and new interpretations

New interpretations have been issued, amendment or standards that have either entered into force for the financial year or have not been adopted. - IFRS 10 - Consolidated financial statements

For fiscal vear 2016, similarly to the previous financial year, it was included in the consolidation of the commercial company SC CHIMPROD S.A.

It does not require any changes in the accounting policies of the Company and not adjusting elements.

• IFRS 11 - Joint Commitments

• IFRS 12 - Presentation of existing interests in other entities

Notes are presented in the content information regarding these positions. The company is not expected to significantly affect the financial statements.

• IFRS 13 - Fair value measurement

The company proceeded to the revaluation of property items from the date of transition to IFRS, presenting them at fair value (financial year 2012). For the end of 2016, revaluation of assets was made taking into account the provisions of the accounting policies adopted which ordered the revaluation every two years.

• IFRS 14 - Accounts exclusion regulators with effect from 01.01.2016;

• IFRS 15 - Revenue from contracts with customers with effect from 01.01.2017 was not applied in 2016.

32. Financial Risk Management

The Group is exposed to credit risk, liquidity risk and market risk

In order to limit the exposure is being developed risk management policy, so as to ensure the identification and analysis of risks, establishing appropriate limits and controls, and monitoring compliance limits set.

Policies and risk management systems will be revised regularly to adapt to changes occurring in business and market conditions.

The parent company aims to develop an orderly and constructive control environment so that the standards of training, roles and employees understand their obligations.

Credit risk is the risk that the group may incur a financial loss as a result of non-fulfillment of contractual obligations by a customer. The parent company has established credit policy analyze each individual client again before i offer standard payment and delivery terms.

However, market conditions specific concrete (chemicals based on a market with specialized suppliers and customers) sometimes requires grant facilities in terms of collection.

All this characteristic of the market requires the company to not require collateral for its receivables.

However, after analyzing individual customers sometimes request payment in advance or upon delivery (extra markets).

Liquidity risk is the risk the Company or the Subsidiary to difficulties in meeting its financial obligations associated with financial or who are settled in cash or cash equivalents.

Addressing parent company in liquidity management is to ensure sufficient liquidity to pay obligations due under normal conditions.

In this regard, the Company shall ensure it has sufficient cash to meet operational needs.

Market risk is the risk that variation in market prices, foreign exchange rate, interest rate and price of equity instruments, affecting the Company's income or the value of financial instruments held.

The objective of market risk management is to manage and control exposure within acceptable parameters.

The parent company is exposed to currency risk due to sales, acquisitions and borrowing in a currency other than the functional.

Exposure is presented below:

At the parent company level:

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Financial assets
Trade receivables and other receivables Cash and cash equivalents	9.491.031 2.953.018	2.249.735 146.673	1.806
Total	12.444.049	2.396.408
TERRA DE LA PORTUGAL DE LOCALITA DE L	ਇੰਦਰਸ਼ਨ ਦਾ ਸਾਹ		1.806
Financial liabilities		िर्वेत् मृत्युम्बन्धाः
Loans
Trade payables and other liabilities		4.001.385
Total	6.428.949	2.080.019	1.439.918
	.

6.428.949

6.081.404

1.439.918

31,12,2016

At Group level:

	Euro	USD
Lei	(RON	(RON
	Equivalent)	Equivalent)

31,12,2016
------------

Financial assets
Trade receivables and other receivables	8.115.973	2.249.735
Cash and cash equivalents	2.960.497	146.673	1806
Total	11.076.470	2.396.408	1.806
2010/02/23	Autobio Pro
Financial liabilities
Loans		4.001.385
Trade payables and other liabilities	6.432.969	2.080.019	1.439.918
Total	6.432.969	6.081.404	1 439 918
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Tax risk targeting aspects in certain transactions to be perceived differently by the tax authorities in comparison to treatment Company. This lies in the adoption of EU fiscal regulations from 1 January 2007 to Romania, given that the interpretation of texts and practical implementation procedures may vary. Also, the Government authorized the operation of a large number of agencies and bodies responsible for carrying out various checks on the companies operating in Romania. The work of these agencies and bodies not only covers tax issues but also issues relating to regulations and procedures in other areas (safety and health at work, civil protection, security and fire protection etc).

It is possible that the Company will be subject to checks as issuing new regulations.

33. Segments

In 2016 the company Sinteza SA has been operating base as written in the declaration of the activity. There exist other financial information by business seament that be pursued separately.

Compared to 2015 no change in terms of products and services market or geographical areas in which they operate. The main customers continued to be in 2016, the traditional external customers owning more than 90% of company sales.

Business is affected by the global credit and liquidity crisis that began in 2008 and which led to a low level and difficult access to funds on the capital market effects perpetuated today. This led to low levels of liquidity throughout the banking system in Romania, also causing an increase in rates on loans that could be accessed. In the last year, however, even if there is an excess banking system liquidity, financiers excessive caution amid slowed substantially reducing the interest of the Company access to financing needed to develop.

This policy imposed by the financing banks could affect the Company's ability to access new loans and refinance those already obtained in terms and conditions relating to past transactions.

Also, borrowers Company may be affected by low levels of available liquidity, which could affect their ability to repay maturing debt, which will have an impact on the ability to forecast cash flows.

The Company can not predict all the events that would impact on the financial sector and any effects which might occur on the financial statements. The Company can not estimate the effects on the financial statements of future decreases liquidity in the financial market, the devaluation of financial assets or credit market contraction, or increasing volatility of the national currency.

However, the Company believes that, in specific conditions of the market where it operates, characterized by specialization strong participants and a small number of their evaluation and risk management can be achieved by following the daily flow of incoming and outgoing cash and by making shortterm forecasts net liquidity.

Capital adequacy involves maintaining a solid capital base necessary to maintain investor confidence and to sustain future development of the Company.

In this respect, equity includes share capital, reserves and retained earnings different.

The Company is not subject to externally imposed capital requirements

General Manager

Financial Manager

Catalin Marias

Viorel Florut - Vese

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