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Aeonic Securities C.I.F Plc

Interim / Quarterly Report Sep 29, 2020

2499_ir_2020-09-29_a93bd583-8edc-4cc5-8604-a9538bf58b65.pdf

Interim / Quarterly Report

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UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

CONTENTS PAGE

Board of Directors and other officers 1
Unaudited statement of profit or loss and other comprehensive income 2
Unaudited statement of financial position 3
Unaudited statement of changes in equity 4
Unaudited cash flow statement 5
Notes to the unaudited financial statements 6 - 27

BOARD OF DIRECTORS AND OTHER OFFICERS

Board of Directors: Alexandros Sinos
Serafeim Charalampidis
Stephanos Kazantzis
Gloria Chrysafi
Evangelos Drympetas
Company Secretary: Gloria Chrysafi
Independent Auditors: C&N Auditors Ltd
CERTIFIED PUBLIC ACCOUNTANTS - CY
10 Yianni Kranidioti
2nd Floor
Office 201
1065 Nicosia, Cyprus
Registered office: Laiou 6
Anna City Court Block B, Flat 301
3015 Limassol
Cyprus
Registration number: ΗΕ 304867

UNAUDITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Period from 1 January 2020 to 30 June 2020

Note 30/06/2020
30/06/2019
Revenue 8 197,982 286,862
Cost of sales 9 (97,847) (140,822)
Gross profit 100,135 146,040
Other operating income 10 40,000 28,630
Selling and distribution expenses 11 (1,465) (2,803)
Administration expenses 12 (121,915) (127,937)
Other expenses 13 (8,486) (13,269)
Operating profit 8,269 30,661
Finance costs 15 (7,700) (3,542)
Profit before tax 569 27,119
Tax 16 (890) (524)
Net (loss)/profit for the period/year (321) 26,595
Other comprehensive income - -
Total comprehensive income for the period/year (321) 26,595

UNAUDITED STATEMENT OF FINANCIAL POSITION 30 June 2020

2020 31/12/2019 Note ASSETS Non-current assets Property, plant and equipment 17 29,658 35,229 Right-of-use assets 18 74,252 89,102 Investments in subsidiaries 20 5,000 - Financial assets at fair value through other comprehensive income - 5,000 Investors' Compensation Fund 23 80,187 80,187 189,097 209,518 Current assets Trade and other receivables 21 1,933,705 1,076,151 Non-pledged financial assets at fair value through profit or loss 22 - 8,359 Cash at bank and in hand 24 62,805 107,789 1,996,510 1,192,299 Total assets 2,185,607 1,401,817 EQUITY AND LIABILITIES Equity Share capital 25 600,000 600,000 Accumulated losses (266,726) (266,405) Total equity 333,274 333,595 Non-current liabilities Lease liabilities 26 64,087 69,999 64,087 69,999 Current liabilities Trade and other payables 28 1,771,571 977,501 Lease liabilities 26 10,849 15,786 Current tax liabilities 29 5,826 4,936 1,788,246 998,223 Total liabilities 1,852,333 1,068,222 Total equity and liabilities 2,185,607 1,401,817

On 14 September 2020 the Board of Directors of AEONIC SECURITIES C.I.F. PLC authorised these financial statements for issue.

Alexandros Sinos Serafeim Charalampidis Director Director

.................................... ....................................

UNAUDITED STATEMENT OF CHANGES IN EQUITY Period from 1 January 2020 to 30 June 2020

Share
capital
Accumulated
losses
Total
Balance at 1 January 2019
Net profit for the year
600,000
-
(248,867)
26,595
351,133
26,595
Balance at 30 June 2019 600,000 (222,272) 377,728
Balance at 31 December 2019/ 1 January 2020
Net loss for the period
600,000
-
(266,405)
(321)
333,595
(321)
Balance at 30 June 2020 600,000 (266,726) 333,274

Companies which do not distribute 70% of their profits after tax, as defined by the relevant tax law, within two years after the end of the relevant tax year, will be deemed to have distributed as dividends 70% of these profits. Special contribution for defence at 17% will be payable on such deemed dividends to the extent that the ultimate shareholders are both Cyprus tax resident and Cyprus domiciled. The amount of deemed distribution is reduced by any actual dividends paid out of the profits of the relevant year at any time. This special contribution for defence is payable by the Company for the account of the shareholders.

Τhe balance of accumulated losses as at 30 June 2019 is not in accordance with the balance of the accumulated losses as at 1st of January 2020 as the net profit of the second semester of 2019 which amounts to €44,133 is not included.

UNAUDITED CASH FLOW STATEMENT

Period from 1 January 2020 to 30 June 2020

Note


CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
569
(15,702)
Adjustments for:
Depreciation of property, plant and equipment
17
20,421
44,456
Amortisation of computer software
19
-
661
Fair value gains on financial assets at fair value through profit or loss
-
(1,272)
Interest income
10
(2,968)
(1,745)
Interest expense
15
1,628
-
19,650
26,398
Changes in working capital:
(Increase)/decrease in trade and other receivables
(857,554)
466,296
Decrease in financial assets at fair value through profit or loss
8,359
72,468
Increase/(Decrease) in trade and other payables
794,070
(440,589)
Cash (used in)/generated from operations
(35,475)
124,573
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for purchase of property, plant and equipment
17
-
(25,709)
Payment for purchase of other assets
23
-
(3,555)
Interest received
2,968
1,745
Net cash generated from/(used in) investing activities
2,968
(27,519)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments of leases liabilities
(10,849)
(33,018)
Interest paid
(1,628)
-
Net cash used in financing activities
(12,477)
(33,018)
Net (decrease)/increase in cash and cash equivalents
(44,984)
64,036
Cash and cash equivalents at beginning of the period/year
107,789
43,753
Cash and cash equivalents at end of the period/year
62,805
107,789
24

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

1. Incorporation and principal activities

Country of incorporation

The Company AEONIC SECURITIES C.I.F. PLC (the ''Company'') was incorporated in Cyprus on 19th of April 2012 as a private limited liability company under the provisions of the Cyprus Companies Law, Cap. 113. Its registered office is at Laiou 6, Anna City Court Block B, Flat 301, 3015 Limassol, Cyprus.

Principal activities

The Company is a Cyprus Investment Firm (''C.I.F'') and in accordance with the license no.177/12 granted by the Cyprus Securities and Exchange Commission (''CySEC'') on 4 September 2012.

The principal activities of the company comprise the provision of investment services, including reception and transmission of orders in relation to one or more financial instruments and execution of orders on behalf of clients in relation to one or more financial instruments.

In addition, the Company provides ancillary services, which comprise the safekeeping and administration of financial instruments, including custondianship and related services, advice to undertakings on capital structure, industrial strategy and related matters and advice and services related to mergers and the purchase of undertakings, foreign exchange services where these are connected to the provision of investment services, services related to underwriting, and investment services and activities as well as ancillary services where these are connected to the provision of investment or ancillary services.

Operating Environment of the Company

The Cypriot economy has recorded positive growth in 2018 and 2019 after overcoming the economic recession of recent years. The overall economic outlook of the economy remains favourable, however there are still downside risks emanating from the still high levels of non-performing loans, the public debt ratio, as well as possible deterioration of the external environment for Cyprus.

This operating environment may have a significant impact on the Company's operations and financial position. Management is taking necessary measures to ensure sustainability of the Company's operations. However, the future effects of the current economic situation are difficult to predict and Management's current expectations and estimates could differ from actual results.

The Company's Management is unable to predict all developments which could have an impact on the Cyprus economy and consequently, what effect, if any, they could have on the future financial performance, cash flows and financial position of the Company.

On the basis of the evaluation performed, the Company's management has concluded that no provisions or impairment charges are necessary. The Company's Management believes that it is taking all the necessary measures to maintain the viability of the Company and the smooth conduct of its operations in the current business and economic environment.

2. Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU) and the requirements of the Cyprus Companies Law, Cap. 113. The financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and financial liabilities at fair value through profit or loss and through other comprehensive income.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

3. Adoption of new or revised standards and interpretations

During the current year the Company adopted all the new and revised International Financial Reporting Standards (IFRS) that are relevant to its operations and are effective for accounting periods beginning on 1 January 2019. The effect of the adoption of IFRS16 "Leases" on the accounting policies of the Company is shown in notes 19 and 28 of the financial statements.

4. Significant accounting policies

The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented in these financial statements unless otherwise stated.

Subsidiary companies

Subsidiaries are entities controlled by the Company. Control exists where the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

Investments in subsidiary companies are stated at cost less provision for impairment in value, which is recognised as an expense in the period in which the impairment is identified.

Revenue

Recognition and measurement

Revenue represents the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised goods or services to the customer, excluding amounts collected on behalf of third parties (for example, value-added taxes); the transaction price. The Company includes in the transaction price an amount of variable consideration as a result of rebates/discounts only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimations for rebates and discounts are based on the Company's experience with similar contracts and forecasted sales to the customer.

The Company recognises revenue when the parties have approved the contract (in writing, orally or in accordance with other customary business practices ) and are committed to perform their respective obligations, the Company can identify each party's rights and the payment terms for the goods or services to be transferred, the contract has commercial substance (i.e. the risk, timing or amount of the Company's future cash flows is expected to change as a result of the contract), it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer and when specific criteria have been met for each of the Company's contracts with customers.

The Company bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. In evaluating whether collectability of an amount of consideration is probable, the Company considers only the customer's ability and intention to pay that amount of consideration when it is due.

Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases or decreases in estimates are reflected in the statement of profit or loss and other comprehensive income in the period in which the circumstances that give rise to the revision become known by Management.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

4. Significant accounting policies (continued)

Revenue recognition (continued)

Identification of performance obligations

The Company assesses whether contracts that involve the provision of a range of goods and/or services contain one or more performance obligations (that is, distinct promises to provide a service) and allocates the transaction price to each performance obligation identified on the basis of its stand-alone selling price. A good or service that is promised to a customer is distinct if the customer can benefit from the good or service, either on its own or together with other resources that are readily available to the customer (that is the good or service is capable of being distinct) and the Company's promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (that is, the good or service is distinct within the context of the contract).

Revenue is measured based on the consideration to which the Company expects to be entitled in a contract with a Customer and excludes amounts collected on behalf of third parties. The Company recognises revenue when it transfers control of a product or service to a Customer.

Rendering of services

Rendering of services - over time:

Revenue from rendering of services is recognised over time while the Company satisfies its performance obligation by transferring control over the promised service to the customer in the accounting period in which the services are rendered.

For fixed price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously.

The input method is used to measure progress toward completion of the performance obligation as it provides a faithful depiction of the transfer of the control of the services to the customer.

Rendering of services - at a point in time:

The Company concluded that it transfers control over its services at a point in time, upon receipt by the customer of the service, because this is when the customer benefits from the relevant service.

Commission income

Commission income is recognised on an accruals basis in accordance with the substance of the relevant agreements.

Work executed

Work executed is recognised in the accounting period in which the work is carried out by reference to completion of the specific transaction assessed on the basis of the actual work executed provided as a proportion of the total work to be carried out.

Interest income

Interest income is recognised on a time-proportion basis using the effective interest method.

Employee benefits

The Company and its employees contribute to the Government Social Insurance Fund based on employees' salaries. The Company's contributions are expensed as incurred and are included in staff costs. The Company has no legal or constructive obligations to pay further contributions if the scheme does not hold sufficient assets to pay all employees benefits relating to employee service in the current and prior periods.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

4. Significant accounting policies (continued)

Finance costs

Interest expense and other borrowing costs are charged to profit or loss as incurred.

Foreign currency translation

(1) Functional and presentation currency

Items included in the Company's 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 Euro (€), which is the Company's functional and presentation currency.

(2) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Tax

Current tax liabilities and assets are measured at the amount expected to be paid to or recovered from the taxation authorities, using the tax rates and laws that have been enacted, or substantively enacted, by the reporting date.

Property, plant and equipment

Property, plant and equipment are stated at historical cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is calculated on the straight-line method so as to write off the cost of each asset to its residual value over its estimated useful life. The annual depreciation rates used are as follows:

%

Motor vehicles 20 Furniture, fixtures and office equipment 10 Computer Hardware 20

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

Where the carrying amount of an asset is greater than its estimated recoverable amount, the asset is written down immediately to its recoverable amount.

Expenditure for repairs and maintenance of property, plant and equipment is charged to profit or loss of the year in which it is incurred. The cost of major renovations and other subsequent expenditure are included in the carrying amount of the asset when it is probable that future economic benefits in excess of the originally assessed standard of performance of the existing asset will flow to the Company. Major renovations are depreciated over the remaining useful life of the related asset.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

4. Significant accounting policies (continued)

Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is reflected in profit or loss in the year in which the expenditure is incurred. The useful lives of intangible assets are assessed to be either finite or indefinite.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life is reviewed at least at each financial year end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in profit or loss in the expense category consistent with the function of the intangible asset.

Intangible assets with indefinite useful lives are tested for impairment annually either individually or at the cash generating unit level. Such intangibles are not amortised. The useful life of an intangible asset with an indefinite life is reviewed annually to determine whether indefinite life assessment continues to be supportable. If not, the change in the useful life assessment from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in profit or loss when the asset is derecognised.

The annual depreciation rates are as follows: Computer Software 33.33%

Computer software

Costs that are directly associated with identifiable and unique computer software products controlled by the Company and that will probably generate economic benefits exceeding costs beyond one year are recognised as intangible assets. Subsequently computer software is carried at cost less any accumulated amortisation and any accumulated impairment losses. Expenditure which enhances or extends the performance of computer software programs beyond their original specifications is recognised as a capital improvement and added to the original cost of the computer software. Costs associated with maintenance of computer software programs are recognised as an expense when incurred. Computer software costs are amortised using the straight-line method over their useful lives, not exceeding a period of three years. Amortisation commences when the computer software is available for use.

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

4. Significant accounting policies (continued)

Leases

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

  • the contract involves the use of an identified asset this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;
  • the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and
  • the Company has the right to direct the use of the asset. The Company has this right when it has the decisionmaking rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Company has the right to direct the use of the asset if either:
  • the Company has the right to operate the asset; or
  • the Company designed the asset in a way that predetermines how and for what purpose it will be used.

At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the leases of land and buildings in which it is a lessee, the Company has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

Impairment of non-financial assets

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non financial assets, other than goodwill, that have suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.

Financial assets - Classification

From 1 January 2018, the Company classifies its financial assets in the following measurement categories:

  • those to be measured subsequently at fair value (either through OCI or through profit or loss), and
  • those to be measured at amortised cost.

The classification and subsequent measurement of debt financial assets depends on: (i) the Company's business model for managing the related assets portfolio and (ii) the cash flow characteristics of the asset. On initial recognition, the Company may irrevocably designate a debt financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

For investments in equity instruments that are not held for trading, classification will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI). This election is made on an investment-by-investment basis.

All other financial assets are classified as measured at FVTPL.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

4. Significant accounting policies (continued)

Financial assets - Classification (continued)

For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI).

Financial assets - Recognition and derecognition

All purchases and sales of financial assets that require delivery within the time frame established by regulation or market convention (''regular way'' purchases and sales) are recorded at trade date, which is the date when the Company commits to deliver a financial instrument. All other purchases and sales are recognised when the entity becomes a party to the contractual provisions of the instrument.

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.

Financial assets - Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in profit or loss. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a difference between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets.

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

Debt instruments

Subsequent measurement of debt instruments depends on the Company's business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in 'other income'. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as separate line item in the statement of profit or loss and other comprehensive income. Financial assets measured at amortised cost (AC) comprise: cash and cash equivalents, bank deposits with original maturity over 3 months, trade receivables and financial assets at amortised cost.

FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/(losses). Interest income from these financial assets is included in ''other income''. Foreign exchange gains and losses are presented in ''other gains/(losses)'' and impairment expenses are presented as separate line item in the statement of profit or loss and other comprehensive income.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

4. Significant accounting policies (continued)

Financial assets - Measurement (continued)

FVTPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in profit or loss and presented net within ''other gains/(losses)'' in the period in which it arises.

Equity instruments

The Company subsequently measures all equity investments at fair value. Where the Company's Management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment, any related balance within the FVOCI reserve is reclassified to retained earnings. The Company's policy is to designate equity investments as FVOCI when those investments are held for strategic purposes other than solely to generate investment returns. Dividends from such investments continue to be recognised in profit or loss as other income when the Company's right to receive payments is established.

Changes in the fair value of financial assets at FVTPL are recognised in ''other gains/(losses)'' in the statement of profit or loss and other comprehensive income as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value.

Financial assets - impairment - credit loss allowance for ECL

From 1 January 2018, the Company assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at AC and FVOCI and with the exposure arising from loan commitments and financial guarantee contracts. The Company measures ECL and recognises credit loss allowance at each reporting date. The measurement of ECL reflects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and effort at the end of each reporting period about past events, current conditions and forecasts of future conditions.

The carrying amount of the financial assets is reduced through the use of an allowance account, and the amount of the loss is recognised in the statement of profit or loss and other comprehensive income within ''net impairment losses on financial and contract assets''.

Debt instruments measured at AC are presented in the statement of financial position net of the allowance for ECL. For loan commitments and financial guarantee contracts, a separate provision for ECL is recognised as a liability in the statement of financial position.

For debt instruments at FVOCI, an allowance for ECL is recognised in profit or loss and it affects fair value gains or losses recognised in OCI rather than the carrying amount of those instruments.

Expected losses are recognised and measured according to one of two approaches: general approach or simplified approach.

For trade receivables including trade receivables with a significant financing component and contract assets and lease receivables the Company applies the simplified approach permitted by IFRS 9, which uses lifetime expected losses to be recognised from initial recognition of the financial assets.

For all other financial asset that are subject to impairment under IFRS 9, the Company applies general approach three stage model for impairment. The Company applies a three stage model for impairment, based on changes in credit quality since initial recognition. A financial instrument that is not credit-impaired on initial recognition is classified in Stage 1.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

4. Significant accounting policies (continued)

Financial assets - impairment - credit loss allowance for ECL (continued)

Financial assets in Stage 1 have their ECL measured at an amount equal to the portion of lifetime ECL that results from default events possible within the next 12 months or until contractual maturity, if shorter (''12 Months ECL''). If the Company identifies a significant increase in credit risk (''SICR'') since initial recognition, the asset is transferred to Stage 2 and its ECL is measured based on ECL on a lifetime basis, that is, up until contractual maturity but considering expected prepayments, if any (''Lifetime ECL''). Refer to note 6, Credit risk section, for a description of how the Company determines when a SICR has occurred. If the Company determines that a financial asset is creditimpaired, the asset is transferred to Stage 3 and its ECL is measured as a Lifetime ECL. The Company's definition of credit impaired assets and definition of default is explained in note 6, Credit risk section.

Additionally the Company has decided to use the low credit risk assessment exemption for investment grade financial assets. Refer to note 6, Credit risk section for a description of how the Company determines low credit risk financial assets.

Financial assets -Reclassification

Financial instruments are reclassified only when the business model for managing those assets changes. The reclassification has a prospective effect and takes place from the start of the first reporting period following the change.

Financial assets - write-off

Financial assets are written-off, in whole or in part, when the Company exhausted all practical recovery efforts and has concluded that there is no reasonable expectation of recovery. The write-off represents a derecognition event. The Company may write-off financial assets that are still subject to enforcement activity when the Company seeks to recover amounts that are contractually due, however, there is no reasonable expectation of recovery.

Financial assets - modification

The Company sometimes renegotiates or otherwise modifies the contractual terms of the financial assets. The Company assesses whether the modification of contractual cash flows is substantial considering, among other, the following factors: any new contractual terms that substantially affect the risk profile of the asset (e.g. profit share or equity-based return), significant change in interest rate, change in the currency denomination, new collateral or credit enhancement that significantly affects the credit risk associated with the asset or a significant extension of a loan when the borrower is not in financial difficulties.

If the modified terms are substantially different, the rights to cash flows from the original asset expire and the Company derecognises the original financial asset and recognises a new asset at its fair value. The date of renegotiation is considered to be the date of initial recognition for subsequent impairment calculation purposes, including determining whether a SICR has occurred. The Company also assesses whether the new loan or debt instrument meets the SPPI criterion. Any difference between the carrying amount of the original asset derecognised and fair value of the new substantially modified asset is recognised in profit or loss, unless the substance of the difference is attributed to a capital transaction with owners.

In a situation where the renegotiation was driven by financial difficulties of the counterparty and inability to make the originally agreed payments, the Company compares the original and revised expected cash flows to assets whether the risks and rewards of the asset are substantially different as a result of the contractual modification. If the risks and rewards do not change, the modified asset is not substantially different from the original asset and the modification does not result in derecognition. The Company recalculates the gross carrying amount by discounting the modified contractual cash flows by the original effective interest rate, and recognises a modification gain or loss in profit or loss.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

4. Significant accounting policies (continued)

Cash and cash equivalents

For the purpose of the cash flow statement, cash and cash equivalents comprise cash at bank and in hand. Cash and cash equivalents are carried at AC because: (i) they are held for collection of contractual cash flows and those cash flows represent SPPI, and (ii) they are not designated at FVTPL.

Financial assets at amortised cost

These amounts generally arise from transactions outside the usual operating activities of the Company. These are held with the objective to collect their contractual cash flows and their cash flows represent solely payments of principal and interest. Accordingly, these are measured at amortised cost using the effective interest method, less provision for impairment. Financial assets at amortised cost are classified as current assets if they are due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current assets.

Financial liabilities - measurement categories

Financial liabilities are initially recognised at fair value and classified as subsequently measured at amortised cost, except for (i) financial liabilities at FVTPL: this classification is applied to derivatives, financial liabilities held for trading (e.g. short positions in securities), contingent consideration recognised by an acquirer in a business combination and other financial liabilities designated as such at initial recognition and (ii) financial guarantee contracts and loan commitments.

Trade payables

Trade payables are initially measured at fair value and are subsequently measured at amortised cost, using the effective interest rate method.

Offsetting financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously. This is not generally the case with master netting agreements, and the related assets and liabilities are presented gross in the statement of financial position.

Trade receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets. Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less loss allowance.

Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components, in which case they are recognised at fair value. The Company holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.

Trade receivables are also subject to the impairment requirements of IFRS 9.The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. See note 6, Credit risk section.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

4. Significant accounting policies (continued)

Trade receivables (continued)

Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Company, and a failure to make contractual payments for a period of greater than 180 days past due.

Share capital

Ordinary shares are classified as equity.

Comparatives

Where necessary, comparative figures have been adjusted to conform to changes in presentation in the current year.

5. New accounting pronouncements

At the date of approval of these financial statements, standards and interpretations were issued by the International Accounting Standards Board which were not yet effective. Some of them were adopted by the European Union and others not yet. The Board of Directors expects that the adoption of these accounting standards in future periods will not have a material effect on the financial statements of the Company.

6. Financial risk management

Financial risk factors

The Company is exposed to market price risk, interest rate risk, credit risk, liquidity risk, currency risk and capital risk management arising from the financial instruments it holds. The risk management policies employed by the Company to manage these risks are discussed below:

6.1 Market price risk

The Company is exposed to equity securities price risk because of investments held by the Company and classified on the statement of financial position either as fair value through other comprehensive income or at fair value through profit or loss. The Company is not exposed to commodity price risk.

The Company's equity investments that are publicly traded are included in the [Cyprus Stock Exchange General Index] and the [Athens Stock Exchange Composite Index].

6.2 Interest rate risk

Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. The Company's income and operating cash flows are substantially independent of changes in market interest rates as the Company has no significant interest-bearing assets. The Company is exposed to interest rate risk in relation to its non-current borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. The Company's Management monitors the interest rate fluctuations on a continuous basis and acts accordingly.

6.3 Credit risk

Credit risk arises from cash and cash equivalents, contractual cash flows of debt investments carried at amortised cost, at fair value through other comprehensive income (FVOCI) and at fair value through profit or loss (FVTPL), favourable derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to wholesale and retail customers, including outstanding receivables and contract assets.

(i) Risk management

Credit risk is managed on a group basis.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

6. Financial risk management (continued)

6.3 Credit risk (continued)

(i) Risk management (continued)

For banks and financial institutions, only independently rated parties with a minimum rating of 'C' are accepted. If customers are independently rated, these ratings are used.

Otherwise, if there is no independent rating, Management assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual credit limits and credit terms are set based on the credit quality of the customer in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

(ii) Impairment of financial assets

The Company has the following types of financial assets that are subject to the expected credit loss model:

  • trade receivables
  • cash and cash equivalents

Trade receivables and contract assets

The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables (including those with a significant financing component, lease contracts and contract assets.

To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The Company defines default as a situation when the debtor is more than 90 days past due on its contractual payments. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of contracts. The Company has therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the contract assets.

The expected loss rates are based on the payment profiles of sales over a period of 36 months before 30 June 2020 or 1 January 2020 respectively and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The Company has identified the GDP and the unemployment rate of the countries in which it sells its goods and services to be the most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors.

Trade receivables and contract assets are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Company, and a failure to make contractual payments for a period of greater than 180 days past due.

Impairment losses on trade receivables and contract assets are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item.

(iii) Credit related commitments

The primary purpose of these instruments is to ensure that funds are available to a borrower as required. Guarantees which represent irrevocable assurances that the Company will make payments in the event that a counterparty cannot meet its obligations to third parties, carry the same credit risk as loans receivable. Commitments to extend credit represent unused portions of authorisations to extend credit in the form of loans or guarantees. With respect to credit risk on commitments to extend credit, the Company is potentially exposed to loss in an amount equal to the total unused commitments, if the unused amounts were to be drawn down. The Company monitors the term to maturity of credit related commitments, because longer-term commitments generally have a greater degree of credit risk than shorter-term commitments.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

6. Financial risk management (continued)

6.4 Liquidity risk

Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The Company has procedures with the object of minimising such losses such as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities.

6.5 Currency risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the Company's measurement currency. The Company is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the US Dollar and the Euro. The Company's Management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.

6.6 Capital risk management

Capital includes equity shares and share premium, convertible preference shares and loan from parent company.

The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance. The Company's overall strategy remains unchanged from last year.

7. Critical accounting estimates, judgments and assumptions

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Income taxes

Significant judgment is required in determining the provision for income taxes. There are transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

Critical judgements in applying the Company's accounting policies

Impairment of investments in subsidiaries

The Company periodically evaluates the recoverability of investments in subsidiaries whenever indicators of impairment are present. Indicators of impairment include such items as declines in revenues, earnings or cash flows or material adverse changes in the economic or political stability of a particular country, which may indicate that the carrying amount of an asset is not recoverable. If facts and circumstances indicate that investment in subsidiaries may be impaired, the estimated future discounted cash flows associated with these subsidiaries would be compared to their carrying amounts to determine if a write-down to fair value is necessary.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

7. Critical accounting estimates, judgments and assumptions (continued)

Impairment of financial assets

The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company's past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Details of the key assumptions and inputs used are disclosed in note 6, Credit risk section.

Impairment of non-financial assets

The impairment test is performed using the discounted cash flows expected to be generated through the use of non-financial assets, using a discount rate that reflects the current market estimations and the risks associated with the asset. When it is impractical to estimate the recoverable amount of an asset, the Company estimates the recoverable amount of the cash generating unit in which the asset belongs to.

Impairment of intangible assets

Intangible assets are initially recorded at acquisition cost and are amortized on a straight line basis over their useful economic life. Intangible assets that are acquired through a business combination are initially recorded at fair value at the date of acquisition. Intangible assets with indefinite useful life are reviewed for impairment at least once per year. The impairment test is performed using the discounted cash flows expected to be generated through the use of the intangible assets, using a discount rate that reflects the current market estimations and the risks associated with the asset. When it is impractical to estimate the recoverable amount of an asset, the Company estimates the recoverable amount of the cash generating unit in which the asset belongs to.

8. Revenue

The Company derives its revenue from contracts with Customers for the transfer of services over time and at a point in time in the following major service lines.

2020
30/06/2019
Rendering of services - 31,215
Commissions receivable 197,982 255,647
197,982 286,862
9. Cost of sales
2020 30/06/2019
Services received
97,847

140,822
97,847 140,822
10. Other operating income
2020 30/06/2019
Interest income
2,968

1,745
Exchange profit 636 248
Commissions received 15,521 -
Profit from investing activit.-non-taxable income
Sundry operating income
20,795
80
26,452
185
40,000 28,630

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

10. Other operating income (continued)

Interest income is analysed as follows:

2020 30/06/2019
Bank deposits 2,968 1,745
2,968 1,745
11. Selling and distribution expenses
2020 30/06/2019
Motor vehicle running costs 1,465 741
Inland travelling - 2,062
1,465 2,803
12. Administration expenses
2020
30/06/2019
Staff costs 49,951 51,208
Rent - 18,000
Common expenses 640 -
Licenses and taxes 216 -
Annual levy - 350
Electricity 1,073 966
Water supply and cleaning 66 278
Insurance 2,349 1,640
Repairs and maintenance 182 303
Sundry expenses 6,502 6,973
Telephone and postage 2,115 2,025
Stationery and printing 471 454
Subscriptions and contributions 19,327 25,926
Staff training 513 1,530
Computer supplies and maintenance 3,877 -
Auditors' remuneration - 1,250
Accounting fees 1,200 1,200
Legal fees - 2,000
Other professional fees 11,500 3,024
Inland travelling and accommodation
Entertaining
663
849
2,192
1,843
Other expenses - 1,633
Amortisation of computer software - 330
Depreciation 20,421 4,812
121,915 127,937

13. Other expenses

2020 30/06/2019
Loss from invest.act.non-allowable for tax expense 8,486 2,745
Fair value losses on financial assets at fair value through profit or loss - 10,524
8,486 13,269

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

14. Staff costs

2020 30/06/2019
Salaries
43,801

45,209
Social security costs 5,274 5,095
Social cohesion fund 876 904
49,951 51,208
15. Finance costs
2020 30/06/2019
Net foreign exchange losses 3,081 394
Interest expense 1,628 -
Sundry finance expenses 2,991 3,148
Finance costs 7,700 3,542
16. Tax
2020 30/06/2019
Defence contribution 890 524
Charge for the period/year 890 524

The tax on the Company's profit before tax differs from theoretical amount that would arise using the applicable tax rates as follows:

2020 30/06/2019
Profit before tax 569 27,119
Tax calculated at the applicable tax rates 71 3,390
Tax effect of expenses not deductible for tax purposes 3,999 2,051
Tax effect of allowances and income not subject to tax (3,195) (3,768)
Tax effect of tax losses brought forward (875) (1,673)
Defence contribution current period 890 524
Tax charge 890 524

The corporation tax rate is 12,5%.

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

Gains on disposal of qualifying titles (including shares, bonds, debentures, rights thereon etc) are exempt from Cyprus income tax.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

17. Property, plant and equipment

Motor
vehicles
Furniture,
fixtures and
office
Total
equipment
Cost
Balance at 1 January 2019
Additions
43,018
25,475
32,388
234
75,406
25,709
Balance at 31 December 2019/ 1 January 2020 68,493 32,622 101,115
Balance at 30 June 2020 68,493 32,622 101,115
Depreciation
Balance at 1 January 2019
Charge for the period
32,362
11,998
18,769
2,757
51,131
14,755
Balance at 31 December 2019/ 1 January 2020
Charge for the period
44,360
4,424
21,526
1,147
65,886
5,571
Balance at 30 June 2020 48,784 22,673 71,457
Net book amount
Balance at 30 June 2020 19,709 9,949 29,658
Balance at 31 December 2019 24,133 11,096 35,229
18. Right-of-use assets
Land and
buildings
Total
Cost
Additions
118,803 118,803
Balance at 31 December 2019/ 1 January 2020 118,803 118,803
Balance at 30 June 2020 118,803 118,803
Depreciation
Charge for the period
29,701 29,701
Balance at 31 December 2019/ 1 January 2020
Charge for the period
29,701
14,850
29,701
14,850
Balance at 30 June 2020 44,551 44,551
Net book amount
Balance at 30 June 2020 74,252 74,252
Balance at 31 December 2019 89,102 89,102
Amounts recognised in profit and loss:
2020 2019
Depreciation expense of right-of-use assets
Interest expense on lease liabilities

14,850
(1,151)

29,701
(2,982)

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

19. Intangible assets

Computer
software
Total
Cost
Balance at 1 January 2019
13,591 13,591
Balance at 31 December 2019 13,591 13,591
Balance at 31 December 2019/ 1 January 2020 13,591 13,591
Balance at 30 June 2020 13,591 13,591
Amortisation
Balance at 1 January 2019
Amortisation for the year
12,930
661
12,930
661
Balance at 31 December 2019 13,591 13,591
Balance at 31 December 2019/ 1 January 2020 13,591 13,591
Balance at 30 June 2020 13,591 13,591
Net book amount
Balance at 30 June 2020 - -
20. Investments in subsidiaries 2020 2019
Balance at 1 January
Disposals
-
5,000
35,000
(35,000)
Balance at 30 June/31 December 5,000 -
The details of the subsidiaries are as follows:
Name Country of Principal activities Holding 2020
Aeonic Investments Ltd incorporation
Cyprus
Investment %
100

5,000
5,000
21. Trade and other receivables
2020 2019
Trade receivables
1,843,468

933,882
Receivables from own subsidiaries (Note 30.2) 3,271 3,271
Shareholders' current accounts - debit balances (Note 30.4)
Deposits and prepayments
894
-
30,894
5,865
Other receivables 61,326 81,561
Refundable VAT 24,746 20,678
1,933,705 1,076,151
2020
2019

The Company does not hold any collateral over the trading balances.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

21. Trade and other receivables (continued)

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

The exposure of the Company to credit risk and impairment losses in relation to trade and other receivables is reported in note 6 of the financial statements.

22. Financial assets at fair value through profit or loss

2020 2019
Balance at 1 January 8,359 79,555
(Disposals) (8,359) (74,104)
Change in fair value - 2,908
Balance at 30 June/31 December - 8,359

The financial assets at fair value through profit or loss are marketable securities and are valued at market value at the close of business on 30 June by reference to Stock Exchange quoted bid prices. Financial assets at fair value through profit or loss are classified as current assets because they are expected to be realised within twelve months from the reporting date.

In the cash flow statement, financial assets at fair value through profit or loss are presented within the section on operating activities as part of changes in working capital. In the statement of profit or loss and other comprehensive income, changes in fair values of financial assets at fair value through profit or loss are recorded in operating income.

23. Investors' Compensation Fund

2020 2019
Balance at 1 January 80,187 76,632
Additions - 3,555
Balance at 30 June/31 December 80,187 80,187

24. Cash at bank and in hand

Cash balances are analysed as follows:

2020 2019
Cash at bank and in hand 62,805 107,789
62,805 107,789

Non-cash transactions

The principal non-cash transactions during the current and prior year were the acquisition of property, plant and equipment using lease agreements.

The exposure of the Company to credit risk and impairment losses in relation to cash and cash equivalents is reported in note 6 of the financial statements.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

25. Share capital

2020
Number of
shares
2020
2019
Number of
shares
2019
Authorised
Ordinary shares of €1,00 each
1,000,000 1,000,000 1,000,000 1,000,000
Issued and fully paid
Balance at 1 January
600,000 600,000 600,000 600,000
Balance at 30 June/31 December 600,000 600,000 600,000 600,000

26. Lease liabilities

The present value of minimum
Minimum lease payments lease payments
2020 2019 2020 2019
Not later than 1 year 24,000 18,000 10,849 15,786
Later than 1 year and not later than 5 years 54,000 72,000 64,087 69,999
78,000 90,000 74,936 85,785
Future finance charges (3,064) (4,215) - -
Present value of lease liabilities 74,936 85,785 74,936 85,785

It is the Company's policy to lease its buildings for office use. The average lease term is 48 months. For period from 1 January 2020 to 30 June 2020, the average effective borrowing rate was 3.0% (2019: 3.0%). Interest rates are fixed at the contract date, and thus expose the Company to fair value interest rate risk. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

All lease obligations are denominated in Euro.

The fair values of lease obligations approximate to their carrying amounts as presented above.

The Company's obligations under leases are secured by the lessors' title to the leased assets.

27. Deferred tax

Deferred tax is calculated in full on all temporary differences under the liability method using the applicable tax rates (Note 16). The applicable corporation tax rate in the case of tax losses is 12,5%.

28. Trade and other payables

2020 2019
Trade payables 1,754,617 813,514
Social insurance and other taxes 2,018 3,760
Accruals 2,499 2,866
Other creditors 11,627 123,213
Defence tax on rent payable 810 1,148
Payables to own subsidiaries (Note 30.3) - 33,000
1,771,571 977,501

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

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

29. Current tax liabilities

2020 2019
Special contribution for defence 5,826 4,936
5,826 4,936

30. Related party transactions

The following transactions were carried out with related parties:

30.1 Directors' remuneration

The remuneration of Directors and other members of key management was as follows:

Directors' remuneration
28,723
64,199
28,723
64,199
30.2 Receivables from related parties (Note 21)
2020
2019
Name
Nature of transactions


Aeonic Investments Ltd
Finance
3,271
3,271
3,271
3,271
30.3 Payables to related parties (Note 28)
2020
2019
Name
Nature of transactions


Aeonic Investments Ltd
Finance
-
33,000
-
33,000
30.4 Shareholders' current accounts - debit balances (Note 21)
2020
2019


Alexandros Sinos
894
30,894
894
30,894
2020 2019

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

31. Significant agreements with management

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

32. Contingent liabilities

The Company had no contingent liabilities as at 30 June 2020.

33. Commitments

The Company had no capital or other commitments as at 30 June 2020.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2020 to 30 June 2020

34. Events after the reporting period

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

ADDITIONAL INFORMATION TO THE UNAUDITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

CONTENTS PAGE
Computation of wear and tear allowances 2 - 3
Computation of defence contribution 4
Computation of corporation tax 5

COMPUTATION OF WEAR AND TEAR ALLOWANCES

Period from 1 January 2020 to 30 June 2020

COST ANNUAL ALLOWANCES
Year % Balance
01/01/2020
Additions
for the year
Disposals
for the year
Balance
30/06/2020
Balance
01/01/2020
Charge
for the year
On
disposals
Balance
30/06/2020
Net value
30/06/2020
Motor vehicles
Ford Focus KVM 067 2012 - 8,500 - - 8,500 - - - - 8,500
Toyota Dicran 2015 - 15,752 - - 15,752 - - - - 15,752
Renault 2016 - 18,766 - - 18,766 - - - - 18,766
BMW F32 2019 - 25,474 - - 25,474 - - - - 25,474
68,492 - - 68,492 - - - - 68,492
Furniture, fixtures and office equipment
Furniture & Fittings 2012 10 3,070 - - 3,070 2,690 154 - 2,844 226
Furniture & Fittings 2012 10 394 - - 394 78 20 - 98 296
Office Equipment 2012 10 2,634 - - 2,634 2,104 132 - 2,236 398
Office Equipment 2013 10 410 - - 410 287 21 - 308 102
Office Equipment 2015 10 731 - - 731 365 37 - 402 329
Office Equipment 2015 10 546 - - 546 275 28 - 303 243
Telephones 2016 10 406 - - 406 164 21 - 185 221
Furniture & Fittings 2016 10 155 - - 155 64 8 - 72 83
Shredder 2016 10 78 - - 78 32 4 - 36 42
Mobile Phone 2016 10 136 - - 136 56 7 - 63 73
Earphones 2016 10 22 - - 22 8 1 - 9 13
Dishwasher 2016 10 399 - - 399 160 20 - 180 219
Iron 2016 10 21 - - 21 8 1 - 9 12
Inventor 9000 (3 items) 2017 10 780 - - 780 234 39 - 273 507
Inventor 24000 2017 10 580 - - 580 174 29 - 203 377
Inventor 12000 WI-FI 2017 10 300 - - 300 90 15 - 105 195
Inventor 12000 (2 items) 2017 10 560 - - 560 168 28 - 196 364
Inventor 18000 2017 10 470 - - 470 141 24 - 165 305
WI-FI module 2017 10 30 - - 30 9 2 - 11 19
Wireless PIR Detector 2017 10 70 - - 70 21 4 - 25 45
Wireless smoke Detector 2017 10 150 - - 150 45 8 - 53 97
Trikdis G10T 2017 10 240 - - 240 72 12 - 84 156
Battery Wireless Detectors (4 items) 2017 10 48 - - 48 15 3 - 18 30
Alarm System Artion 2017 10 650 - - 650 195 33 - 228 422
Smoke Detector Artion (5 items) 2017 10 425 - - 425 129 22 - 151 274
Temperature Detector 2017 10 140 - - 140 42 7 - 49 91
Remote control (2 items) 2017 10 70 - - 70 21 4 - 25 45
Samsung Galaxy S7 2017 10 429 - - 429 129 22 - 151 278

COMPUTATION OF WEAR AND TEAR ALLOWANCES

Period from 1 January 2020 to 30 June 2020

COST ANNUAL ALLOWANCES
Year
%
Balance
01/01/2020
Additions
for the year
Disposals
for the year
Balance
30/06/2020
Balance
01/01/2020
Charge
for the year
On
disposals
Balance
30/06/2020
Net value
30/06/2020
Furniture, fixtures and office equipment (continued)
Shredder 2017 10 134 - - 134 39 7 - 46 88
Kettle 2017 10 94 - - 94 27 5 - 32 62
Meridian Wash Basin 2017 10 215 - - 215 66 11 - 77 138
Mobile phone 2017 10 350 - - 350 105 18 - 123 227
Gallery Carolina Plafon Lights (2 items) 2017 10 569 - - 569 171 29 - 200 369
Eglo Lights 2017 10 79 - - 79 24 4 - 28 51
Pendant Mark Urban Grey Lights 2017 10 109 - - 109 33 6 - 39 70
White Table 2017 10 807 - - 807 243 41 - 284 523
Coffee/Tea cups 2017 10 34 - - 34 9 2 - 11 23
Pinakes 2017 10 3,000 - - 3,000 900 150 - 1,050 1,950
Vaccum Cleaner 2019 10 75 - - 75 8 4 - 12 63
19,410 - - 19,410 9,401 983 - 10,384 9,026
Computer Hardware- cost
Computer Hardware
Office Equipment
2012
2013
20
10
7,785
2,735
-
-
-
-
7,785
2,735
7,785
1,918
-
137
-
-
7,785
2,055
-
680
Demstar 2015 20 570 - - 570 570 - - 570 -
Demstar 2015 20 589 - - 589 589 - - 589 -
PC Monitor 1 2015 20 570 - - 570 570 - - 570 -
PC Monitor 2 2015 20 570 - - 570 570 - - 570 -
Laptop 2018 20 235 - - 235 94 24 - 118 117
UPS 159 - - 159 32 16 - 48 111
2019 20
13,213 - - 13,213 12,128 177 - 12,305 908
Total 101,115 - - 101,115 21,529 1,160 - 22,689 78,426
Computer software
MS. Office Pro 2010 2012 33 1,810 - - 1,810 1,810 - - 1,810 -
Solution ERP 2013 33 8,500 - - 8,500 8,500 - - 8,500 -
Advak Barracuda 2015 33 1,299 - - 1,299 1,299 - - 1,299 -
Disaster Recovery 2017 33 998 - - 998 998 - - 998 -
SQL Recovery 2017 33 465 - - 465 465 - - 465 -
Software Digicert 2017 33 518 - - 518 518 - - 518 -
13,590 - - 13,590 13,590 - - 13,590 -

COMPUTATION OF DEFENCE CONTRIBUTION Period from 1 January 2020 to 30 June 2020

Income
Rate Defence
€ c
INTEREST
Interest from overseas 2,968
2,968 30% 890.40
DEFENCE CONTRIBUTION DUE TO IRD 890.40
Apportionment to the relevant years of assessment 2020 2019
Period 01/01/2020 - 30/06/2020 890 -
890 -
Period 01/01/2020 - 31/12/2019 - 1,836
890 1,836

COMPUTATION OF CORPORATION TAX Period from 1 January 2020 to 30 June 2020

Net profit per income statement
Add:
Page
2

569
Depreciation
Loss from invest.act.non-allowable for tax expense
Realised foreign exchange loss
Unrealised foreign exchange loss
20,421
8,486
1,332
1,749
31,988
Less:
Annual wear and tear allowances
Profit from investing activit.-non-taxable income
Interest income
Unrealised foreign exchange profit
Chargeable income for the year
3 1,160
20,795
2,968
636
32,557
(25,559)
6,998
Apportionment to the relevant years of assessment 2020 2019
Period 01/01/2020 - 30/06/2020
6,998
6,998

-
-
Loss brought forward 6,998 -
(45,587)
Loss carried forward (45,587)

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