Annual / Quarterly Financial Statement • Apr 30, 2018
Annual / Quarterly Financial Statement
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REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 31 December 2017
Εγκεκριμένοι Λογιστές
Λεωφ. Κέννεντυ 8, Γραφείο 201 1087 Λευκωσία, Κύπρος T.O. 20542 1660 Λευκωσία, Κύπρος T/22 76 88 22 Φ/22768195
Certified Public Accountants
8 Kennedy Ave., Office 201 1087 Nicosia, Cyprus P.O.Box 20542 1660 Nicosia, Cyprus T/22 76 88 22 F / 22 76 81 95
www.ceaudit.com.cy
| CONTENTS | PAGE |
|---|---|
| Board of Directors and other officers | 1 |
| Management Report | $\overline{2}$ |
| Independent auditor's report | $3 - 5$ |
| Consolidated statement of profit or loss and other comprehensive income | 6 |
| Consolidated statement of financial position | $\overline{7}$ |
| Consolidated statement of changes in equity | 9 |
| Consolidated cash flow statement | 10 |
| Notes to the consolidated financial statements | $11 - 30$ |
| Board of Directors: | Marina Tsoy Stella Koukounis George Koufaris (appointed on 4 April, 2018) Andri Michael (resigned on 4 April, 2018) |
|---|---|
| Company Secretary: | Stella Koukounis |
| Independent Auditors: | C. Efstathiou Audit Ltd Certified Public Accountants and Registered Auditors 8 Kennedy Avenue Athienitis Building 2nd floor, Office 201 1087 Nicosia |
| Registered office: | Chrysanthou Mylona, 2 Dali, P.C. 2540, Nicosia, Cyprus |
| Bankers: | Hellenic Bank Public Company Ltd AstroBank Limited (former Piraeus Bank (Cyprus) Limited) Promsvyazbank PJSC, Cyprus Branch |
| Registration number: | HE216944 |
The Board of Directors presents its report and audited consolidated financial statements of the Company and its subsidiaries (together with the Company, the "Group") for the year ended 31 December 2017.
The principal activities of the Group comprise the trading in investments, the receiving and granting of loans, the ownership and leasing of residential property and acting as a principal in trading in cement and other products and commodities.
The Group's development to date, financial results and position as presented in the consolidated financial statements are considered satisfactory.
The principal risks and uncertainties faced by the Group are disclosed in notes 3 and 4 of the consolidated financial statements.
The Group's results for the year are set out on page 6.
The Board of Directors wishes to defer the decision on the payment of a dividend and the net profit is retained until further decisions are taken on this matter.
On 27 March 2017 the authorised share capital of the Company was converted from 400.000 ordinary shares of nominal value of EUR 0.25 each to 8.000 ordinary shares of nominal value of EUR 12,50 each.
On 27 March 2017 the issued share capital of the Company was converted from 400.000 ordinary shares of nominal value of EUR 0,25 each to 8.000 ordinary shares of nominal value of EUR 12,50 each.
The members of the Company's Board of Directors as at 31 December 2017 and at the date of this report are presented on page 1. On 4 April 2018, Mrs. Andri Michael resigned from the position of director of the company and on the same date Mr. George Koufaris was appointed respectively.
In accordance with the Company's Articles of Association all Directors presently members of the Board continue in office.
There were no significant changes in the assignment of responsibilities and remuneration of the Board of Directors.
Any significant events that occurred after the end of the reporting period are described in note 27 to the consolidated financial statements.
The Independent Auditors, C. Efstathiou Audit Ltd, have expressed their willingness to continue in office and a resolution giving authority to the Board of Directors to fix their remuneration will be proposed at the Annual General Meeting.
By order of the Board of Directors.
Director Nicosia, 30 April 2018
Independent Auditor's Report
Report on the Audit of the Consolidated Financial Statements
We have audited the consolidated financial statements of Vonpende Holdings P.L.C. (the "Company") and its subsidiaries (the "Group"), which are presented in pages 6 to 30 and comprise the consolidated statement of financial position as at 31 December 2017, and the consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2017, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap. 113.
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Cyprus, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The Board of Directors is responsible for the other information. The other information comprises the information included in the management report, but does not include the consolidated financial statements and our auditor's report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
C. Efstathiou Audit Ltd
Certified Public Accountants
8 Kennedy Ave., Office 201, 1087 Nicosia, Cyprus P.O.Box 20542, 1660 Nicosia, Cyprus T / 22 76 88 22 F / 22 76 81 95 E / [email protected] www.ceaudit.com.cy
The Board of Directors is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap. 113, and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Group's financial reporting process.
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a quarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Pursuant to the additional requirements of the Auditors Law of 2017, we report the following:
This report, including the opinion, has been prepared for and only for the Company's members as a body in accordance with Section 69 of the Auditors Law of 2017 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whose knowledge this report may come to.
as Efstathiou
Certified Public Accountant and Registered Auditor for and on behalf of C. Efstathiou Audit Ltd Certified Public Accountants and Registered Auditors
Nicosia, 30 April 2018
| Note | 2017 EUR |
2016 EUR |
|
|---|---|---|---|
| Revenue Cost of sales |
5 6 |
69.255.379 (49.155.240) |
65.973.219 (48.556.514) |
| Gross profit | 20.100.139 | 17.416.705 | |
| Negative goodwill Administration expenses Other expenses |
7 8 9 |
(542.868) (150.748) |
21.069.782 (469.385) (642.732) |
| Operating profit | 19.406.523 | 37.374.370 | |
| Net finance income/(cost) Profit before tax |
10 | 9.613.903 29.020.426 |
(11.910.171) 25.464.199 |
| Tax Net profit for the year |
11 | (24.007) 28.996.419 |
(3.301) 25.460.898 |
| Other comprehensive income | |||
| Foreign exchange difference - reserve | 1.045.806 | ||
| Other comprehensive income for the year Total comprehensive income for the year |
28.996.419 | 1.045.806 26.506.704 |
The notes on pages 11 to 30 form an integral part of these consolidated financial statements.
| Note | 2017 EUR |
2016 EUR |
|
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 12 | 1.724 | 2.299 |
| Promissory notes Investment properties |
419.633 | ||
| Goodwill | 13 14 |
104.945 4.131.632 |
110.000 5.068.978 |
| Investments | 142.451.198 | 215.617.407 | |
| Loans receivable | 16 | 1.351.013.226 | 1.336.615.349 |
| 1.498.122.358 | 1.557.414.033 | ||
| Current assets Trade and other receivables |
|||
| Loans receivable | 17 16 |
570.227 | 1.917.370 |
| Available-for-sale financial assets | 15 | 3.063.791 | 3.073.496 15.989.732 |
| Financial assets at fair value through profit or loss | 18 | 17.349.226 | 1.085.000 |
| Tax refundable | 23.641 | ||
| Cash at bank and in hand | 374.552 | 2.035.210 | |
| 21.357.796 | 24.124.449 | ||
| Total assets | 1.519.480.154 | 1.581.538.482 | |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 19 | 100.000 | 100.000 |
| Fair value reserve - non controlling subsidiaries | (93.946.837) | ||
| Foreign exchange reserve | (2.242.474) | 4.223.953 | |
| Retained earnings | 74.483.380 | 49.108.167 | |
| (21.605.931) | 53.432.120 | ||
| Non-controlling interests | 46.037.903 | 22.204.516 | |
| Total equity | 24.431.972 | 75.636.636 | |
| Non-current liabilities | |||
| Borrowings | 20 | 1.428.559,370 1.500.546.794 | |
| 1.428.559.370 | 1.500.546.794 | ||
| Current liabilities | |||
| Trade and other payables | 21 | 5.195.247 | 2.274.482 |
| Borrowings | 20 | 61.274.287 | 3.071.681 |
| Current tax liabilities | 22 | 19.278 | 8.889 |
| 66.488.812 | 5.355.052 | ||
| Total liabilities | 1.495.048.182 | 1.505.901.846 | |
| Total equity and liabilities | 1.519.480.154 | 1.581.538.482 |
The notes on pages 11 to 30 form an integral part of these consolidated financial statements.
On 30 April 2018 the Board of Directors of Vonpende Holdings P.L.C. authorised these consolidated financial statements for issue.
Director
STELLA KOU KOUMS
. . . . . . . . . . . . . . . . . . . . . . . . Director GEORDE KOUFARUS
The notes on pages 11 to 30 form an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended 31 December 2017
| Attributable to equity holders of the Company Fair value |
|||||||
|---|---|---|---|---|---|---|---|
| Share EUR Capital |
reserve - non controlling EUR |
Foreign subsidiaries exchange reserve EUR |
earnings Retained EUR |
EUR Total |
Non- interests EUR controlling |
EUR Total |
|
| Balance at 1 January 2016 | 100.000 | 3.178.147 | 23.333.490 | 26.611.637 | ٥ | 26.611.637 | |
| Comprehensive income Net profit for the year |
٠ | 25.460.898 | 25.460.898 | 25.460.898 | |||
| Foreign exchange difference | ۱ | 1.045.806 | 294.068 | 1.339.874 | 1.339.874 | ||
| Net change in non controlling interest Non controlling interest at acquisition |
t | 22.224.227 | 22.224.227 | ||||
| d | (19.711) | (19.711) | |||||
| Balance at 31 December 2016 | 100.000 | 4.223.953 | 49.088.456 | 53.412.409 | 22.204.516 | 75,616.925 | |
| Balance at 31 December 2016/1 January 2017 | 100.000 | ı | 4.223.953 | 49.108.167 | 53.432.120 22.204.516 | 75.636.636 | |
| Comprehensive income Net profit for the year |
t | 28.996.419 | 28.996.419 | 28.996.419 | |||
| Foreign exchange difference | ٠ | (6.466.427) | (3.621.206) | (10.087.633) | (10.087.633) | ||
| Net change in non controlling interest | å | 23.833.387 | 23.833.387 | ||||
| Fair value reserve non controlling subsidiaries | ı | (93.946.837) | ł | t. | (93,946,837) | (93.946.837) | |
| Balance at 31 December 2017 | 100.000 | (93.946.837) | $(2.242.474)$ $-$ 74.483.380 (21.605.931) $-$ | 46.037.903 | 24.431.972 |
The notes on pages 11 to 30 form an integral part of these consolidated financial statements.
| Note | 2017 EUR |
2016 EUR |
|
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax |
29.020.426 | ||
| Adjustments for: Depreciation of property, plant and equipment |
7.963 | 25.464.199 575 |
|
| Profit from the sale of available-for-sale financial assets | (98) | ||
| (Profit)/loss from the sale of investments in subsidiaries Impairment charge - investments in subsidiaries |
(3.434.494) 8.550 |
26.696 | |
| Dividend income Interest income |
5 | (94.584) | (507) |
| Interest expense | 10 | (63.796.291) 3.203.424 |
(62.243.569) 26.972 |
| Negative goodwill | (21.069.782) | ||
| Changes in working capital: | (35.085.006) | (57.795.514) | |
| Decrease/(increase) in trade and other receivables | 4.320.247 | (7.701.764) | |
| (Increase)/decrease in financial assets at fair value through profit or loss Increase in trade and other payables |
(16.264.226) 3,303.014 |
165.000 3.770.785 |
|
| Cash used in operations | (43.725.971) | (61.561.493) | |
| Interest received Dividends received |
60.286.696 | 66.133.499 | |
| Interest paid | 94.584 (750) |
111.363 (1.112) |
|
| Tax paid | (12.868) | (6.630) | |
| Net cash generated from operating activities | 16.641.691 | 4.675.627 | |
| CASH FLOWS FROM INVESTING ACTIVITIES Payment for purchase of property, plant and equipment Payment for purchase of investment property Payment for purchase of available-for-sale financial assets Payment for purchase of investments in subsidiaries Payment for purchase of investments in associated undertakings Loans granted Loans repayments received Proceeds from sale of available-for-sale financial assets Interest received Proceeds from reduction of capital of investment in subsidiaries |
12 13 |
(2.333) 257.104.812 (4.634.289) (455.184.209) 9.705 28.625.272 5.740 5.159.022 |
(2.874) (110.000) (15.930.421) (12.249.953) (7.051.725) (21.240.457) 385 157.893 |
| Net cash used in investing activities | (168, 916, 280) | (56.427.152) | |
| CASH FLOWS FROM FINANCING ACTIVITIES Repayments of borrowings |
(2.582.668) | ||
| Proceeds from borrowings Interest paid |
157.840.803 (3.203.424) |
47.322.713 (3.289.225) |
|
| Effect of exchange rate changes on balances of cash held in foreign currencies |
7.823.910 | ||
| Net cash generated from financing activities | 152.054.711 | 51.857.398 | |
| Net (decrease)/increase in cash and cash equivalents | (219.878) | 105.873 | |
| Cash and cash equivalents at beginning of the year | 2.035.210 | 1.252.090 | |
| Effect of exchange rate fluctuations on cash held | (1.440.780) | 677.247 | |
| Cash and cash equivalents at end of the year | 374.552 | 2.035.210 |
The notes on pages 11 to 30 form an integral part of these consolidated financial statements.
The Company Vonpende Holdings P.L.C. (the "Company") was incorporated in Cyprus on 20 December, 2007 as a private limited liability company under the provisions of the Cyprus Companies Law, Cap. 113. Its registered office is at Chrysanthou Mylona, 2, Dali, P.C. 2540, Nicosia, Cyprus.
The principal activities of the Group comprise the trading in investments, the receiving and granting of loans, the ownership and leasing of residential property and acting as a principal in trading in cement and other products and commodities.
The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all years presented in these consolidated financial statements unless otherwise stated.
These consolidated 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. These consolidated financial statements have been prepared under the historical cost convention as modified by the revaluation of, investment property, available-for-sale financial assets, and financial assets and financial liabilities at fair value through profit or loss.
During the current year the Group 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 2017. This adoption did not have a material effect on the accounting policies of the Group.
At the date of approval of these consolidated 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 consolidated financial statements of the Group.
The Company has subsidiary undertakings for which section 142(1)(b) of the Cyprus Companies Law Cap. 113 requires consolidated financial statements to be prepared and laid before the Company at the Annual General Meeting. The Group consolidated financial statements comprise the financial statements of the parent company Vonpende Holdings P.L.C. and the financial statements of the following subsidiaries: "Wing Hang Enterprises (Cyprus) Limited", "Eyestorn Enterprises Limited", "Kirnione Holdings Limited", "Lebset Developments Limited", "Linge Developments Limited" and "Mezorex Enterprises Limited".
The financial statements of all the Group companies are prepared using uniform accounting policies. All intercompany transactions and balances between Group companies have been eliminated during consolidation.
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are generally recognised in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value at the acquisition date, except that:
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer's previously held interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests' proportionate share of the recognised amounts of the acquiree's identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another IFRS.
When the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the 'measurement period' (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates in accordance with IAS 39, or IAS 37 Provisions, Contingent Liabilities and Contingent Assets, as appropriate, with the corresponding gain or loss being recognised in profit or loss.
When a business combination is achieved in stages, the Group's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date (i.e. the date when the Group obtains control) and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss where such treatment would be appropriate if that interest were disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognised at that date.
Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associated undertakings are stated at cost less provision for permanent diminution in value, which is recognised as an expense in the period in which the diminution is identified.
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group's share of the net identifiable assets of the acquired undertaking at the date of acquisition. Goodwill on acquisition of subsidiaries is included in "intangible assets". Goodwill on acquisitions of associates is included in "Investments in associates". Goodwill on acquisitions of investments in joint ventures is included in "investments in joint ventures".
Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Gains and losses on the disposal of an undertaking include the carrying amount of goodwill relating to the undertaking sold. Goodwill is allocated to cash-generating units for the purpose of impairment testing.
Revenues earned by the Group are recognised on the following bases:
Sales of products are recognised when significant risks and rewards of ownership of the products have been transferred to the customer, which is usually when the Group has sold or delivered the products to the customer, the customer has accepted the products and collectability of the related receivable is reasonably assured.
Sales of services are recognised in the accounting period in which the services are rendered by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided.
Dividend from investments in securities is recognised when the right to receive payment is established. Withheld taxes are transferred to profit or loss. Interest from investments in securities is recognised on an accruals basis.
Profits or losses from the sale of investments in securities represent the difference between the net proceeds and the carrying amount of the investments sold and is transferred to profit or loss.
The difference between the fair value of investments at fair value through profit or loss as at 31 December 2017 and the mid cost price represents unrealised gains and losses and is included in profit or loss in the period in which it arises. Unrealised gains and losses arising from changes in the fair value of available-forsale financial assets are recognised in equity. When available-for-sale financial assets are sold or impaired, the accumulated fair value adjustments are included in profit or loss as fair value gains or losses on investments, taking into account any amounts charged or credited to profit or loss in previous periods.
Commission income is recognised when the right to receive payment is established.
Interest income is recognised on a time-proportion basis using the effective interest method.
Interest income is recognised on a time-proportion basis using the effective method.
Interest expense and other borrowing costs are charged to profit or loss as incurred.
Items included in the Group'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 (EUR), which is the Group's functional and presentation currency.
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. Translation differences on non-monetary items such as equities held at fair value through profit or loss are reported as part of the fair value gain or loss.
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.
Dividend distribution to the Group's shareholders is recognised in the Group's financial statements in the year in which they are approved by the Group's shareholders.
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:
Computrer hardware and operating systems
$\frac{0}{0}$ 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 Group. 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.
Investment property, which is property held to earn rentals and/or for capital appreciation, is stated at its fair value at the reporting date. Gains or losses arising from changes in the fair value of investment property are included in profit or loss for the period in which they arise.
An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the continued use of the asset. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognised.
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.
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 arouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).
Financial assets and financial liabilities are recognised in the Group's consolidated statement of financial position when the Group becomes a party to the contractual provisions of the instrument.
Trade receivables are measured at initial recognition at fair value and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in profit or loss when there is objective evidence that the asset is impaired. The allowance recognised is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition.
Payments received in advance on sale contracts for which no revenue has been recognised yet, are recorded as prepayments from clients as at the reporting date and carried under liabilities.
Loans originated by the Group by providing money directly to the borrower are categorised as loans and are carried at amortised cost. The amortised cost is the amount at which the loan granted is measured at initial recognition minus principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount, and minus any reduction for impairment or uncollectibility. All loans are recognised when cash is advanced to the borrower.
The effective interest method is a method of calculating the amortised cost of a financial asset or a financial liability (or group of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrving amount of the financial asset or financial liability.
The Group classifies its financial assets in the following categories: financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments and available for-sale financial assets. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of financial assets at initial recognition.
This category has two sub-categories: financial assets held for trading and those designated at fair value through profit or loss at inception. A financial asset is classified as held for trading if acquired principally for the purpose of selling in the short term. Financial assets designated as at fair value through profit or loss at inception are those that are managed and their performance is evaluated on a fair value basis, in accordance with the Group's documented investment strategy. Information about these financial assets is provided internally on a fair value basis to the Group's key management personnel. Assets in this category are classified as current assets if they are either held for trading or are expected to be realised within twelve months from the reporting date.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and for which there is no intention of trading the receivable. They are included in current assets, except for maturities greater than twelve months after the reporting date. These are classified as non-current assets. The Group's loans and receivables comprise trade and other receivables and cash and cash equivalents in the consolidated statement of financial position.
Held to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Company's management has the positive intention and ability to hold to maturity, that do not meet the definition of loans and receivables. During the year, the Group did not hold any investments in this category.
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets, unless management intends to dispose of the investment within twelve months of the reporting date.
Regular way purchases and sales of financial assets are recognised on trade-date which is the date on which the Group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed in profit or loss. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. Available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair value. Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method.
Gains or losses arising from changes in the fair value of the "financial assets at fair value through profit or loss" category are presented in profit or loss in the period in which they arise. Dividend income from financial assets at fair value through profit or loss is recognised in the profit or loss when the Group's right to receive payments is established.
The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities), the Group establishes fair value by using valuation techniques. These include the use of recent arm's length transactions, reference to other instruments that are substantially the same and discounted cash flow analysis, making maximum use of market inputs and relying as little as possible on entity specific inputs. Equity investments for which fair values cannot be measured reliably are recognised at cost less impairment.
Changes in the fair value of monetary securities denominated in a foreign currency and classified as available-for-sale are analysed between translation differences resulting from changes in amortised cost of the security and other changes in the carrying amount of the security. The translation differences on monetary securities are recognised in profit or loss, while translation differences on non-monetary securities are recognised in other comprehensive income. Changes in the fair value of monetary and non-monetary securities classified as available-for-sale are recognised in other comprehensive income.
When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments recognised in other comprehensive income are included in profit or loss as gains and losses on available-for-sale financial assets.
Interest on available-for-sale securities calculated using the effective interest method is recognised in the profit or loss. Dividends on available-for-sale equity instruments are recognised in profit or loss when the Group's right to receive payments is established.
The Group assesses at each reporting date whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of equity securities classified as available for sale, a significant or prolonged decline in the fair value of the security below its cost is considered as an indicator that the securities are impaired. If any such evidence exists for available-for-sale financial assets the cumulative loss which is measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss, is removed from equity and recognised in profit or loss.
For financial assets measured at amortised cost, if in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.
In respect of available for sale equity securities, impairment losses previously recognised in profit or loss are not reversed through profit or loss. Any increase in fair value subsequent to an impairment loss is recognised in other comprehensive income and accumulated under the heading of investments revaluation reserve. In respect of available for sale debt securities, impairment losses are subsequently reversed through profit or loss if an increase in the fair value of the investment can be objectively related to an event occurring after the recognition of the impairment loss.
For the purpose of the consolidated cash flow statement, cash and cash equivalents comprise cash at bank.
Borrowings are recorded initially at the proceeds received, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.
Trade payables are initially measured at fair value and are subsequently measured at amortised cost, using the effective interest rate method.
A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised when:
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.
Financial assets and financial liabilities are offset and the net amount reported in the consolidated 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 consolidated statement of financial position.
Ordinary shares are classified as equity.
Non-current liabilities represent amounts that are due more than twelve months from the reporting date.
Where necessary, comparative figures have been adjusted to conform to changes in presentation in the current year.
The Group 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 Group to manage these risks are discussed below:
The Group is exposed to equity securities price risk because of investments held by the Group and classified on the consolidated statement of financial position either as available-for-sale or at fair value through profit or loss. The Group is not exposed to commodity price risk.
Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. The Group's income and operating cash flows are substantially independent of changes in market interest rates as the Group has no significant interest-bearing assets. The Group is exposed to interest rate risk in relation to its non-current borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. The Company's management monitors the interest rate fluctuations on a continuous basis and acts accordingly.
Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the reporting date. The Group has no significant concentration of credit risk. The Group has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history and monitors on a continuous basis the ageing profile of its receivables.
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 Group 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.
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 Group's measurement currency. The Group is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the US Dollar and the Russian Ruble. The Group's management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.
Capital includes equity shares.
The Group 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 Group's overall strategy remains unchanged from last year.
The fair values of the Group's financial assets and liabilities approximate their carrying amounts at the reporting date.
The fair value of financial instruments traded in active markets, such as publicly traded trading and available-for-sale financial assets is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Group is the current bid price. The appropriate quoted market price for financial liabilities is the current ask price.
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Group uses a variety of methods, such as estimated discounted cash flows, and makes assumptions that are based on market conditions existing at the reporting date.
The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates and requires Management to exercise its judgment in the process of applying the Group's accounting policies. It also requires the use of assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on Management's best knowledge of current events and actions, actual results may ultimately differ from those estimates.
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.
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:
The Group reviews its trade and other receivables for evidence of their recoverability. Such evidence includes the customer's payment record and the customer's overall financial position. If indications of irrecoverability exist, the recoverable amount is estimated and a respective provision for bad and doubtful debts is made. The amount of the provision is charged through profit or loss. The review of credit risk is continuous and the methodology and assumptions used for estimating the provision are reviewed regularly and adjusted accordingly.
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 Group 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.
The fair value of investment property is determined by using valuation techniques. The Group uses its judament to select a variety of methods and make assumptions that are mainly based on market conditions existing at each reporting date. The fair value of the investment property has been estimated based on the fair value of their individual assets.
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at each reporting date. The fair value of the financial assets available for sale has been estimated based on the fair value of these individual assets.
The Group 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/associates would be compared to their carrying amounts to determine if a write-down to fair value is necessary.
The Group periodically evaluates the recoverability of loans receivable 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 in which the borrower operates, which may indicate that the carrying amount of the loan is not recoverable. If facts and circumstances indicate that loans receivable may be impaired, the estimated future discounted cash flows associated with these loans would be compared to their carrying amounts to determine if a write-down to fair value is necessary.
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 Group estimates the recoverable amount of the cash generating unit in which the asset belongs to.
The Group uses various valuation methods to value non-listed investments. These methods are based on assumptions made by the Board of Directors which are based on market information at the reporting date.
Determining whether goodwill is impaired requires an estimation of the value in use of the cash generating units of the Group on which the goodwill has been allocated. The value in use calculation requires the Group to estimate the future cash flows expected to arise from the cash-generating units using a suitable discount rate in order to calculate present value.
| 2017 | 2016 | |
|---|---|---|
| EUR | EUR | |
| Sale of cement products | 1.741.712 | 3.307.031 |
| Commissions income | 317.739 | 389.907 |
| Dividend income | 94.584 | 507 |
| Interest income | 60.514.916 | 62.274.912 |
| Net gain on trading in financial instruments | 3.305.659 | |
| Net gain on sale of promissory note / financial instruments | 3.275.629 | 862 |
| Rental income | 5.140 | |
| 69.255.379 | 65.973.219 | |
| 6. Cost of sales | ||
| 2017 | 2016 | |
| EUR | EUR | |
| Purchases of cement products | 1.600.495 | 2.981.001 |
| Rental expenses | 1.035 | |
| Custodian fee | 12.454 | |
| Commissions paid | 503.056 | 498.595 |
| Handling fee | 27.881 | |
| Interest expense | 47.010.319 | 45.076.918 |
| 49.155.240 | 48.556.514 | |
| 7. Negative goodwill | ||
| 2017 | 2016 | |
| EUR | EUR | |
| Negative goodwill | (21.069.782) | |
| (21,069.782) |
On 17 November 2014, Vonpende Holdings Limited acquired 100% of the shareholding of Wing Hang Enterprises (Cyprus) Limited, and this resulted into a negative goodwill of €25,8 millions. The main operations of Wing Hang Enterprises (Cyprus) Limited, is the trading in cement and the receiving and granting of loans.
| 2017 | 2016 | |
|---|---|---|
| EUR | EUR | |
| Rent | 6.029 | 60.576 |
| Professional fees | 242,708 | 197.479 |
| Director services | 30.000 | 44.169 |
| Services paid | 27.096 | 89.773 |
| Auditors' remuneration - current year | 69.250 | 28.015 |
| Auditors' remuneration - prior years | 8.300 | 4.900 |
| Accounting fees | 23.875 | 21.305 |
| Legal fees | 28.208 | 9.285 |
| Overseas travelling | 97.356 | 12.947 |
| Company annual charge | 2.083 | 361 |
| Depreciation | 7.963 | 575 |
| 542.868 | 469.385 | |
| 9. Other expenses | ||
| 2017 | 2016 | |
| EUR | EUR | |
| Other income | (1.465) | $\bullet$ |
| Amount receivable written off | 138.772 | 578.364 |
| Net foreign exchange loss | 4.891 | 1.807 |
| Loss on redemption / exchange of promissory notes | 63.058 | |
| Impairment charge - investments in associates | 8.550 | (497) |
| 150.748 | 642.732 | |
| 10. Finance income/cost | ||
| 2017 | 2016 | |
| EUR | EUR | |
| Interest income | 5.747 | 267 |
| Exchange profit | 22.228.682 | 9.021.134 |
| Finance income | 22.234.429 | 9.021.401 |
| Net foreign exchange losses | (12.605.770) | (20.913.238) |
| Interest expense | (11) | (12) |
| Other finance expenses | (14.745) | (18.322) |
| Finance costs | (12.620.526) | (20.931.572) |
| Net finance income/(cost) | $9.613.903$ (11.910.171) | |
| 11. Tax | ||
| 2017 | 2016 | |
| EUR | EUR | |
| Corporation tax - current year | 17.473 | 3.275 |
| Overseas tax | 4.729 | 26 |
| Defence contribution - current year | 1.805 | $\sim$ |
| Charge for the year | 24.007 | 3.301 |
| Cost | Computer hardware and operating systems EUR |
|
|---|---|---|
| Additions | 2.874 | |
| Balance at 31 December 2016/ 1 January 2017 | 2.874 | |
| Balance at 31 December 2017 | 2.874 | |
| Depreciation | ||
| Charge for the year | 575 | |
| Balance at 31 December 2016/ 1 January 2017 Charge for the year |
575 575 |
|
| Balance at 31 December 2017 | 1.150 | |
| Net book amount | ||
| Balance at 31 December 2017 | 1.724 | |
| Balance at 31 December 2016 | 2.299 | |
| 13. Investment properties | ||
| 2017 | 2016 | |
| Balance at 1 January | EUR 110.000 |
EUR |
| Additions | 2.333 | 110.000 |
| Charge of the year | (7.388) | |
| Balance at 31 December | 104.945 | 110.000 |
Investment properties include an apartment situated at 55 Milou street, Archangelos, Nicosia, Cyprus.
| Goodwill EUR |
|
|---|---|
| Cost | |
| Additions | 5.068.978 |
| Balance at 31 December 2016/ 1 January 2017 | 5.068.978 |
| Goodwill eliminated on disposal of subsidiary | (937.346) |
| Balance at 31 December 2017 | 4.131.632 |
| Net book amount | |
| Balance at 31 December 2017 | 4.131.632 |
| Balance at 31 December 2016 | 5.068.978 |
On 28 December 2016, Vonpende Holdings Limited acquired 52% of Lebset Development Limited and this resulted into a goodwill of € 0.7 millions. The main operations of Lebset Developments Limited is the holding of investments.
On 30 December, 2016, Vonpende Holdings Limited acquired 76,03% of Linge Enterprises Limited and 52,05% of Mezorex Enterprises Limited and this resulted into a goodwill of $\epsilon$ 0.9 millions and $\epsilon$ 3.4 millions respectively.
The main operation of Linge Enterprises Limited, is holding of investments.
The main operation of Mezorex Enterprises Limited, is the holding of investments and investment of its funds.
On December 2017, Vonpende Holdings Limited increased its shareholding to 95,10% in Eyestorn Enterprises Limited, Kirnione Holdings Limited, Lebset Developments Limited and Mezorex Enterprises Limited to 95,11%. The Group disposed its interest Linge Enterprises Limited in 2017 and realized a profit of EUR885.681.
| 2017 | 2016 |
|---|---|
| EUR | |
| 15.989.732 | |
| $\qquad \qquad \blacksquare$ | 15.989.732 |
| (15.989.732) | |
| 15.989.732 | |
| EUR |
Available-for-sale financial assets, comprising principally marketable equity securities, are fair valued annually at the close of business on 31 December. For investments traded in active markets, fair value is determined by reference to Stock Exchange quoted bid prices. For other investments, fair value is estimated by reference to the current market value of similar instruments or by reference to the discounted cash flows of the underlying assets. Equity investments for which fair values cannot be measured reliably are recognised at cost less impairment.
Available-for-sale financial assets are classified as non-current assets, unless they are expected to be realised within twelve months from the reporting date or unless they will need to be sold to raise operating capital.
| 2017 | 2016 | |
|---|---|---|
| EUR | EUR | |
| Loans receivable | 1.354.077.017 1.339.688.845 | |
| 1.354.077.017 1.339.688.845 | ||
| Less current portion | $(3.063.791)$ $(3.073.496)$ | |
| Non-current portion | 1.351.013.226 1.336.615.349 |
The loans are repayable as follows:
| 2017 | 2016 | |
|---|---|---|
| EUR | eur | |
| Within one year | 3.063.791 | 3.073.496 |
| Between one and five years | 1.350.706.302 1.336.615.349 | |
| After five years | 306.924 | |
| 1.354.077.017 1.339.688.845 |
| 2017 | 2016 | |
|---|---|---|
| EUR | EUR | |
| Trade receivables | 550.325 | 565.137 |
| Promissory note receivable | 1.346.843 | |
| Shareholders' current accounts - debit balances (Note 23.2) | 17.078 | |
| Deposits and prepayments | 2.824 | 5.390 |
| 570.227 | 1.917.370 |
The fair values of trade and other receivables due within one year approximate to their carrying amounts as presented above.
| 2017 | 2016 | |
|---|---|---|
| EUR | EUR | |
| Balance at 1 January | 1.085.000 | 1,250,000 |
| Additions | 16.250.041 | |
| Disposals | (34.996) | (165.000) |
| Accrued interest | 99.765 | |
| Interest payments | (50.584) | |
| Balance at 31 December | 17.349.226 | 1.085.000 |
Financial assets designated as at fair value through profit or loss are analysed as follows:
| 2017 EUR |
2016 EUR |
|
|---|---|---|
| Financial assets at fair value through profit or loss | ||
| Subordinated contingent convertible bonds of a Company incorporated in Cyprus | 17,300,045 | |
| Interest on bonds | 49.181 | |
| 17,349,226 |
In the consolidated 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 consolidated 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.
| Authorised | 2017 Number of shares |
2017 EUR |
2016 Number of shares |
2016 EUR |
|---|---|---|---|---|
| Ordinary shares of EUR 0,25 each Ordinary shares of EUR 12,50 each |
8.000 | 100.000 | 400.000 | 100,000 |
| 8.000 | 100.000 | 400.000 | 100,000 | |
| Issued and fully paid | EUR | EUR | ||
| Balance at 1 January Converted to 8.000 ordinary shares of EUR 12,50 |
400.000 | 100.000 | 400.000 | 100,000 |
| each | (392.000) | |||
| Balance at 31 December | 8.000 | 100.000 | 400.000 | 100.000 |
On 27 March 2017 the authorised share capital of the Company was converted from 400.000 ordinary shares of nominal value of EUR 0,25 each to 8.000 ordinary shares of nominal value of EUR 12,50 each.
On 27 March 2017 the issued share capital of the Company was converted from 400.000 ordinary shares of nominal value of EUR 0,25 each to 8.000 ordinary shares of nominal value of EUR 12,50 each.
| 2017 EUR |
2016 EUR |
|
|---|---|---|
| Current borrowings | ||
| Trade loans payable | 61.274.287 | 3.071.681 |
| Non-current borrowings | ||
| Trade loans payable | 1.428.559.370 1.500.546,794 | |
| Total | 1.489,833.657 1.503.618.475 | |
| Maturity of non-current borrowings: | ||
| 2017 | 2016 | |
| EUR | EUR | |
| Within one year | 61.274.287 | 3.071.681 |
| Between one and five years | 233.218.751 1.500.546.794 | |
| After five years | 1.195.340.619 | |
| 1.489.833.657 1.503.618.475 |
| 2017 | 2016 | |
|---|---|---|
| EUR | EUR | |
| Trade payables | 5.115.313 | 626.770 |
| Promissory notes payable | ۰ | 925.811 |
| Defence tax on rent payable | (47) | (54) |
| Prepayments from tenants | 900 | |
| Social insurance and other taxes | 1.888 | 2.604 |
| Tenants deposits | 450 | |
| Accruals | 76.743 | 719.351 |
| 5.195.247 | 2.274.482 |
The fair values of trade and other payables due within one year approximate to their carrying amounts as presented above.
| 2017 | 2016 | |
|---|---|---|
| EUR | EUR | |
| Corporation tax | 17.473 | 8.858 |
| Special contribution for defence | 1.805 | |
| 19.278 | 8.889 . |
The following transactions were carried out with related parties:
The remuneration of Directors and other members of key management was as follows:
| 2017 | 2016 | |
|---|---|---|
| EUR | EUR | |
| Director services | 30.000 | 44.169 |
| 30.000 | 44,169 | |
| 23.2 Shareholders' current accounts - debit balances (Note 17) | ||
| 2017 | 2016 | |
| EUR | EUR | |
| Shareholders' current accounts | 17.078 | 2.593 |
| 17.078 | 2.593 | |
| The shareholders' current accounts are interest free, and have no specified repayment date. |
| 2017 | 2016 | |
|---|---|---|
| EUR | EUR | |
| Shareholders' current accounts | $\sim$ | 101.335 |
| $\bullet$ | 101.335 |
The shareholders' current accounts are interest free, and have no specified repayment date.
In year 2016 the Group includes the Company and Wing Hang Enterprises (Cyprus) Ltd (100%). Wing Hang Enterprises Ltd was incorporated in Hong Kong on 30 August 1999 as a private company with limited liability and transferred domicile to Nevis on 5 December 2003. From 5 July, 2017, Wing Hang Enterprises Limited was registered in accordance with section 354H of the Companies Law Cap. 113, as a company continuing in the Republic of Cyprus under the name of Wing Hang Enterprises (Cyprus) Limited. The Group's principal activities are the receiving and granting of loans, the trading in investments and acting as a principal in trading of cement and other products and commodities. In addition of Wing Hang Enterprises (Cyprus) Ltd, Vonpende Holdings Group comprises of the below subsidiaries:
| 2017 | 31 December 31 December 2016 |
|||
|---|---|---|---|---|
| Name | Country of | Principal activities | ||
| incorporation | $\frac{0}{0}$ | $\frac{1}{2}$ | ||
| Wing Hang Enterprises (Cyprus) Limited | Cyprus | Trading in cement | ||
| and receiving and | ||||
| granting of loans | 100 | 100 | ||
| Eyestorn Enterprises Limited | Cyprus | Holding of | ||
| investments and | ||||
| receiving and | ||||
| granting of loans | 95,10 | 52 | ||
| Kirnione Holdings Limited | Cyprus | Trading in | ||
| investments and | ||||
| investment of its | ||||
| funds | 95,10 | 52 | ||
| Lebset Developments Limited | Cyprus | Holding of | ||
| investments | 95,10 | 52 | ||
| Mezorex Enterprises Limited | Cyprus | Holding of | ||
| investments | 95,1068 | 52,0468 | ||
| Linge Enterprises Limited | Cyprus | Holding of | ||
| investments | 76,0234 |
The Group had no contingent liabilities as at 31 December 2017.
The Group had no capital or other commitments as at 31 December 2017.
On 22 February, 2018 the Board of Directors proposed and approved the payment of interim dividend based on the financial position and performance of the Company as at 30 June, 2017. Simultaneously the Board of Directors approved the increase of the authorised share capital by additional Euro 310.000,00 divided by 24.800 shares of nominal value of Euro 12,50 each, which will be made available to the Board to facilitate the interim dividend reinvestment.
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