ATTICA VENTURES S.A.

                                    

                                       FINANCIAL STATEMENTS
FOR THE ACCOUNTING PERIOD ENDED ON
31 DECEMBER 2012

Prepared in line with the International Financial Reporting Standards (IFRS)

MARCH 2013

The Company’s financial statements and the notes 
accompanying them were approved by the Board of Directors at its meeting on 
           on 11.03.2013 and have been posted to the Company’s website.

Athens, 11 March 2013

THE CHAIRMAN  
OF THE BOARD	THE CEO 
AND
GENERAL MANAGER 
	THE FINANCIAL SERVICES MANAGER	THE CHIEF ACCOUNTANT	

			
IOANNIS P. GAMVRILIS	IOANNIS PAPADOPOULOS	SOTIRIOS 
HINOS	CHRISTOS MARANTOS                                    	
ID Card No. ΑΖ 995770	         ID Card No.  ΑΚ 005500

	ID Card No. AH 121074	ID Card No. M 481653
Econ. Chamber of Greece Licen. No. 
A/17216

FINANCIAL STATEMENTS TABLE OF CONTENTS
Note									                                                   Page
Board of Directors Report
Audit Report
STATEMENT OF COMPREHENSIVE INCOME
STATEMENT OF FINANCIAL POSITION
CHANGES IN EQUITY STATEMENT
CASH FLOW STATEMENT
1. GENERAL INFORMATION
2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
(2.1)	Presentation of the financial statements
(2.2) Foreign exchange transactions
(2.2.1) Amendments to published standards
(2.2.2) Standards, amendments and interpretations to existing standards which have not yet been brought into effect and have not yet been adopted by the European Union.
(2.3) Important accounting judgements, estimates and assumptions
3. SUMMARY OF ACCOUNTING POLICIES
(3.1) General
(3.2) Foreign exchange transactions
(3.3) Tangible assets
(3.4) Investments in financial assets
(3.5) Cash and cash equivalents
(3.6)  Share capital
(3.7) Leases
(3.8) Receivables – Liabilities
(3.9) Income
(3.10) Provisions
(3.11) Income tax
(3.12) Employee benefits
(3.13) Transactions with associates
(3.14) Earnings per share
4. INCOME FROM OPERATING ACTIVITIES
5.  OPERATING EXPENSES
6. TAXES
7. BASIC EARNINGS PER SHARE
8. TANGIBLE AND INTANGIBLE ASSETS
9. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT & LOSS
10. OTHER RECEIVABLES
11. CASH AND CASH EQUIVALENTS
12. SHARE CAPITAL
13. STATUTORY RESERVE
14. DEFERRED TAX RECEIVABLES – LIABILITIES
15. POST-EMPLOYMENT BENEFITS
16. OTHER LIABILITIES
17. OPERATING LEASES
18. TRANSACTIONS WITH RELATED PARTIES
19. TAX LIABILITIES
20.  RISK MANAGEMENT
20.1 LIQUIDITY RISK
20.2 EXCHANGE RATE RISK
20.3 INTEREST RATE RISK
20.4 CREDIT RISK
21. EVENTS WHICH OCCURRED AFTER 31.12.2012

                          

Board of Directors Report

To the Annual Ordinary General Meeting of Shareholders for the 12th accounting period  
1.1.2012-31.12.2012

Dear shareholders,

In accordance with law and the company’s Articles of Association we are pleased to present you the company’s activities during the period ended (1.1.2012-31.12.2012) and the prospects for the year ahead (1.1.2013-31.12.2013).

As in previous years, this year was also considered satisfactory, especially taking into account the financial results achieved and the goodwill generated, as well as the dividends distributed from holdings in the ZAITECH FUND, which are shown in the Fund’s financial statements for the year ended on 31.12.2012. Two new investments were made in the companies Antcor and Evrydamantos S.A. at a total investment cost of € 0.3 million. During the year ended, we also liquidated part of the funds invested in Solar Concept S.A. which accounted for 15% of the total investment in that company, and capital gains of € 735,000 were returned to unitholders of the Fund. Of the ZAITECH FUND’s other holdings, the companies Mediterra, Doppler, Performance Technologies and Foodlink have been listed on the Athens Exchange’s Alternative Market since 2008 and 2009. The goodwill generated, which the unitholders are expected to enjoy from these companies, is significant indeed. Of course the overall goodwill will depend on the climate on the stock markets. At present the stock markets continue to perform poorly, which is something directly related to Greece’s fiscal problems and the ongoing recession that is now in its 6th year. The ZAITECH FUND’s other holdings in companies that have not been admitted to trading on the capital market are  Antcor, Evrydamantos S.A, Craft Erasinio, Tsemberou Wind Farm S.A. and Solar Datum S.A. as well as Solar Concept, which are currently in development. These holdings have been valued in the company’s annual report to Fund unitholders in line with the EVCA Guidelines. Note that the multinational company CEVA Ltd., which is listed on NASDAQ, recently invested € 1 million in Antcor S.A. The valuation on which CEVA based its investment (note that an overall investment of € 1.5 million has been agreed) was many times the valuation used when the Fund acquired its holding.
Note too that the company has also taken up management of the newly established venture capital fund, ZAITECH FUND II, which was established on 30.9.2010. This Fund has already made its first investment, in Solar Concept, and is currently evaluating numerous investment proposals and at least 3 new investments are expected to be completed in 2013. 

Turning to the financials and the financial statements, company turnover in 2012 was € 1,126,829.54 compared to € 1,200,968.39 the previous year. This figure primarily comes from the company managing the ZAITECH Fund, a venture capital fund established by unitholders from Attica Bank and the New Economy Development Fund (TANEO), and managing the ZAITECH FUND II, another venture capital fund. Moreover, EBT stood at € 150,024.22 compared to € 171,145.53 the previous year. This change is primarily due to the drop in company turnover because of the new method for computing its management fee for the ZAITECH Fund.

Net results net of tax achieved by the company in the period 1.1.2012-31.12.2012 stood at € 106,271.53 compared to € 101,526.96 the previous year, up some 5%.  

Total assets during the year stood at € 1,564,385.57 compared to € 1,455,568.58 at the end of the previous year, up some 7.5%. In particular company equity at the end of the year stood at € 1,159,791.70 compared to € 1,053,520.17 at the end of the previous year, up some 10.01% due to the profits the company reported in the year ended.

A. BASIC ACCOUNTING POLICIES FOLLOWED

To prepare the statement of financial position for the year, and the statement of comprehensive income for the year, the company applied the following basic accounting policies:

1.	Valuation of fixed assets and depreciation recorded
Company tangible fixed assets were valued at their acquisition cost (historical cost). Depreciation of all fixed assets has been computed based on the useful life of the assets in line with the accounting policies followed by the Attica Bank Group overall.

2.	Valuation of receivables and liabilities expressed in a foreign currency 
On 31.12.2012 there were no assets expressed in foreign currency (other than the euro).

3.	Valuation of financial assets at fair value through profit and loss
On 31.12.2012 the company valued its portfolio at fair value through profit and loss in accordance with the rules set out in IAS 32 and IAS 39.

4.	Provision for bad debt 
In the year ended on 31.12.2012 the company did not form provisions to deal with possible future losses from bad debt because there were no receivables that remained uncollected. 

5.	Compensation paid to retiring or dismissed staff
The accumulated provision for staff associated with the company by an open-ended contract was € 4,848.66 in line with the provisions of Law 2190/1920, which is considered adequate. Moreover, the accumulated provision for staff associated with the company by a fixed-term contract was € 38,941.76 which is also considered adequate/ This provision has been formed to deal with any compensation which will be paid in the future where one of those contracts is terminated due to the company’s fault. 
6.	Taxation provisions  
The 2010 tax year remains open and the company has formed a provision of € 8,055.64 which is considered adequate to cover any possible additional future liability which may arise from a tax audit. During the 2011 and 2012 fiscal year, the Company underwent a tax audit by certified public accountants as required by the provisions of Article 82(5) of Law 2238/1994. 

B. COMPANY PROSPECTS 
Based on the plans which were drawn up when the company started operations, acting within the timeframe for implementing those plans, Attica Ventures made 2 investments in 2012 worth € 0.3 million. Investments are being made at a satisfactory rate taking into account the Greek economy’s overall negative environment. As already mentioned above, the companies Mediterra, Doppler, Performance Technologies and Foodlink have already been listed on the ATHEX Alternative Market.
Moreover, the company has already examined a significant number of business plans from companies it is thinking of investing in, in line with investment targets for 2013, as part of its management of the Zaitech Fund and Zaitech Fund II. It is worth noting that the Zaitech Fund I’s investment cycle has ended and the Zaitech Fund II’s investment cycle will end at the end of 2013.
The total funds being managed are € 65 million.
Given the current conditions, the company is particularly interested in making new investments and in capitalising on the opportunities that always arise in times of economic recession. 
The major returns on the funds the company has been managing have been generated from the goodwill of Fund holdings and, as we already mentioned during the year ended there were also major returns for unitholders achieved by liquidating part of the holding in Solar Concept S.A.
The company has become well-established in the market place as one of the most active, dynamic venture capital managers, its investments are generating very satisfactory results, the market has a very positive feel about those investments, 4 companies have been listed on the ATHEX Alternative Market and Attica Ventures was the only Greek venture capital manager to generate major goodwill for the unitholders Attica Bank and TANEO. In 2011 the Company also received an award from the Athens Chamber of Commerce & Industry for its contribution to increased employment rates.
C. DISTRIBUTION OF NET PROFIT	
We propose that the profits available for distributed from 2012 be distributed as follows: 

 	PROFIT DISTRIBUTION	 	
                                                                                                                       €   	
EARNINGS BEFORE TAX	150,024.22	
LESS (-)  INCOME TAX	-43,752.69	
Plus (+) PRIOR PERIOD EARNINGS 	412,075.29	
NET PROFITS AVAILABLE FOR APPROPRIATION	518,346.82	
 	
PROFIT DISTRIBUTION:	
 	
1. STATUTORY RESERVE	5,313.60	
2. RETAINED EARNINGS 	513,033.22	
   TOTAL                                                                      	518,346.82	

 In light of the above, the shareholders are requested:

a) to approve the balance sheet and the results for the period which ended on 31.12.2012.

b) to approve the appropriation account  

c) to release us and the auditors from all liability for management during the year in line with the law and the Articles of Association.

Athens, 11.3.2013

The Chairman of the Board		The CEO and General Manager 	The Vice Chairman                 The Directors 

	

			
	
Ioannis Gamvrilis     	Ioannis  
Papadopoulos         	Ioannis Ioannidis	 Athanasios Tzakopoulos                                  	Argyrios Zafeiropoulos	

Audit Report

To the shareholders of ATTICA VENTURES S.A.

Report on the financial statements

We have audited the attached financial statements of ATTICA VENTURES S.A. which consist of the statement of financial position as at 31 December 2012 and the statements of comprehensive income, changes to equity statements and cash flow statements for the period ended on that date and a summary of main accounting policies and other explanatory notes.

Management responsibility for the financial statements

The Management is responsible for preparing and presenting these separate and consolidated financial statements, in accordance with the International Financial Reporting Standards, as adopted by the European Union, as well as the internal controls that the Management defines as necessary so that the separate and consolidated financial statements are free from material accuracies, whether due to fraud or error.

Auditor Responsibility

Our responsibility is to express an opinion on these separate and consolidated financial statements based on our audit. We performed our audit in accordance with the International Standards on Auditing. These Standards require that we comply with the code of ethics, as well as plan and perform the audit so as to obtain reasonable assurance as to whether the separate and consolidated financial statements are free from material inaccuracies.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the separate and consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the risk assessment of material inaccuracies in the separate and consolidated financial statements, whether due to fraud or error. When carrying out the risk assessment, the auditor examines the internal checks and balances on preparation and fair presentation of the Company's financial statements for the purpose of designing auditing procedures which are suitable under the circumstances, and not to express an opinion on the effectiveness of the Company’s internal checks and balances. An audit also includes evaluating the appropriateness of the accounting principles and methods used and the reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the separate and consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the attached financial statements reasonably depict from every substantive perspective the financial position of the Company ATTICA VENTURES S.A. on 31 December 2012, its financial performance and cash flows for the fiscal year which ended on that date in line with the International Financial Reporting Standards as adopted by the European Union.

Report on other legal and regulatory issues

We have verified that the content of the Board of Directors’ Report is consistent with and corresponds to the attached financial statements, within the scope laid down by Articles 43a and 37 of Codified Law 2190/1920.

Athens, 12 March 2013

The Certified Public Accountants

Dimitrios G. Melas	Eleni P. Angelopoulou 	
ICPA (GR) Reg. No. 22001	ICPA (GR) Reg. No. 30861  	

STATEMENT OF COMPREHENSIVE INCOME

(Amounts in €)	
		1.1 -	1.1 -	
	Note	31.12.2012	31.12.2011	
Income from fees/commission		1.126.829,54	1.158.961,34	
Profits from financial transactions		(1.526,18)	2.846,95	
Miscellaneous operating income		0,00	143,77	
Interest and related income		51.757,67	39.016,33	
Income from operating activities	4	1.177.061,03	1.200.968,39

Bank commission and expenses		(164,33)	(272,30)	
Staff salaries and expenses		(441.104,44)	(434.053,83)	
Depreciation		(15.451,24)	(9.509,19)	
Miscellaneous operating costs		(570.316,80)	(585.987,53)	
Total operating expenses	5	(1.027.036,81)	(1.029.822,86)
	
Earnings before tax		150.024,22	171.145,53	
Minus: Taxes	6	(43.752,69)	(69.618,57)
	
Profits net of tax (A)		106.271,53	101.526,96	
Other comprehensive income net of tax (b)		0,00	0,00	
Total comprehensive income (a) + (b)		106.271,53	101.526,96	
Basic earnings per share net of tax (in €)	7	7,0848	6,7685	
Dividend proposed per share (in €)		0,00	0,00	

The notes on pages 12 to 35 constitute an integral part of these financial statements.

STATEMENT OF FINANCIAL POSITION

(Amounts in €)	Note	31.12.2012	31.12.2011	

ASSETS	
Tangible and intangible assets	8	75.707,77	86.239,01	
Financial assets at fair value through profit and loss	9	12.032,21	13.558,39	
Other receivables	10	288.340,13	336.406,19	
Cash and cash equivalents	11	1.188.305,46	1.019.364,99	
TOTAL ASSETS		1.564.385,57	1.455.568,58	
LIABILITIES	
EQUITY	
Share capital	12	600.000,00	600.000,00	
Statutory Reserve	13	41.444,88	36.344,88	
Retained earnings		518.346,82	417.175,29	
Total equity		1.159.791,70	1.053.520,17	

LIABILITIES				
Deferred tax liabilities	14	31.527,64	37.430,78	
Post-employment benefits	15	43.790,42	50.703,33	
Current tax liabilities		48.402,73	39.844,82	
Other obligations 	16	280.873,08	274.069,48	
Total liabilities		404.593,87	402.048,41	
	
TOTAL LIABILITIES		1.564.385,57	1.455.568,58	

The notes on pages 12 to 35 constitute an integral part of these financial statements.

CHANGES IN EQUITY STATEMENT

(Amounts in €)	
	Share Capital	Statutory Reserve	Retained earnings	Total equity	
	
Balance on 01.01.11	600.000,00	32.544,88	319.448,33	951.993,21	
Statutory reserve 		3.800,00	(3.800,00)	-	
Dividend distribution 	-	-	-	-	
Transactions with company owners	-	3.800,00	(3.800,00)	-

Profits net of tax (A)	_	-	101.526,96	101.526,96	
Total comprehensive income for period 	-	-	-	-	
Comprehensive income 	-	-	101.526,96	101.526,96
	
Balance on 31.12.11	600.000,00	36.344,88	417.175,29	1.053.520,17	
Statutory reserve 	
	5.100,00	(5.100,00)		
Dividend distribution 	-	-	-	-	
Transactions with company owners	-	5.100,00	(5.100,00)	-	

Profits net of tax (A)	_	-	106.271,53	106.271,53	
Total comprehensive income for period 	-	-	-	-	
Comprehensive income 	-	-	106.271,53	106.271,53
	
Balance on 31.12.12	600.000,00	41.444,88	518.346,81	1.159.791,69	

The notes on pages 12 to 35 constitute an integral part of these financial statements.

CASH FLOW STATEMENT  

CASH FLOW STATEMENT	
	
(Amounts in €)	31.12.2012	31.12.2011	

Operating activities
Income from fees/commission 
Other income
Profits from financial transactions 
Interest and related income 
Bank commission and expenses 
Payments to employees and suppliers 
Taxes paid 
Net (increase)/decrease in other assets 
Net (increase)/decrease in other liabilities	

1.126.829,54 
0,00 
6.972,95 
51.757,67 
(164,33)
(1.011.421,24) 
(47.571,44) 
48.066,06 
(608,75)	

1.158.961,34 
143,77 
6.972,95 
39.016,33 
(272,30) 
(1.033.063,08) 
(19.777,01) 
(62.010,08) 
(77.084,32)	
Total inflow/(outflow) from operating activities	173.860,46	12.887,60	

Investing Activities:
Payments to acquire tangible assets	

(4.920,00)	

(87.819,05)	
Total inflow/outflow from investing activities	(4.920,00)	(87.819,05)	

Financing Activities			
Dividends paid	0,00	0,00	
Total inflow/ (outflow) from financing activities	0,00	0,00	

Net increase/(decrease) in cash and cash equivalents	
168.940,46	
(74.931,45)
	
Cash and cash equivalents at start of period	1.019.364,99	1.094.296,44
	
Cash and cash equivalents at end of period	1.188.305,46	1.019.364,99	

The notes on pages 12 to 35 constitute an integral part of these financial statements.

1. GENERAL INFORMATION 

Attica Ventures S.A. is a company not listed on the Athens Exchange operating in the venture capital fund management sector as defined and outlined in Article 7 of Law 2992/2002. The Company was established on 9.9.2003 and has Companies Register No. 55116/01/Β/03/476. Its effective term is 50 years, and that term expires on 9.9.2053.

The Company’s seat is the Municipality of Athens and its offices are located at 18 Omirou St., Athens GR-10672.

The company employs 4 people and operates in Greece.

The Company is a subsidiary of Attica Bank S.A. which holds 99.99% of its shares, and its financial statements are included in the consolidated statements of the Attica Bank Group using the full consolidation method.

The Financial Statements for the period which ended on 31.12.2012 were approved by the Board of Directors for publication purposes on 11.3.2013. 

The line-up of the Board of Directors on 31.12.2012 was as follows:

Ioannis Gamvrilis 	 	Chairman of the Board 	
Ioannis Ioannidis  	 	Vice-Chairman of the Board	
Ioannis Papadopoulos	 	CEO 	
Athanasios Tzakopoulos 	 	Member of the Board	
Argyrios Zafeiropoulos  	 	Member of the Board	

The Board of Directors’ term in office ends of 17.3.2014.  

Since the start of its operations the company’s Managing Director has been Giannis Papadopoulos who was born in Athens in 1967, and a graduate of the School of Mechanical Engineering, National Technical University of Athens, specialised in production and management engineering, and a holder of a MBA from the Cass Business School of London.

Since February 2004 Sotiris Hinos has been the Financial Services Manager. He was born in Athens in 1969 and is a graduate of the Athens Economic University, specialised in business management, with a postgraduate degree in Money, Banking and Finance from the University of Sheffield.

2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
(2.1)	Presentation of the financial statements 

The Company’s financial statements were prepared on the basis of the International Financial Reporting Standards (IFRS).

The financial statements have been prepared on the basis of the historic cost principle apart from cases where the contrary is stated. The figures cited in the financial statements are in Euro.

The financial statements were prepared in line with generally accepted accounting principles and this requires that Company management make assessments and assumptions which may affect both the accounting balances of assets and liabilities and the notifications required for any receivables or liabilities on the financial statements preparation date as well as the level of income and expenses recognised during the accounting period. The use of adequate information and implementation of subjective judgement are integral aspects in making such assessments. The actual future results may differ from these assessments and the deviations could have a major impact on the financial statements. 

The accounting principles on the basis of which the attached financial statements were prepared are consistent with those used to prepare the financial statements for the 2011 comparator period. 
(2.2) Foreign exchange transactions 
The Company has adopted all new standards and interpretations which became mandatory for financial years commencing on 1.1.2012. Paragraph 2.2.1 presents the standards which have been adopted since 1.1.2012. Paragraph 2.2.2. presents the standards, amendments and interpretations which have not yet been brought into effect and have not yet been adopted by the European Union.  

(2.2.1) Amendments to published standards  

•	Amendments to IFRS 7 Financial Instruments: Disclosure requirements for transferring financial instruments (applicable to annual periods commencing on or after 1.7.2011)
The purpose of this amendment is to permit users of Financial Statements to improve their understanding of financial asset transfer transactions and the possible impacts of any risks which may remain for the entity which has transferred financial assets. Moreover, this amendment requires additional disclosures in the case where a disproportionate amount of transfer transactions has taken place at the end of the reporting period. The Company does not expect this amendment to have any impact on its financial statements. This amendment was approved by the EU in November 2011.

•	Amendment to IAS 12: Deferred Tax: Recovery of underlying assets” (applicable to annual periods commencing on or after 1.1.2012)
This amendment to IAS 12 “Income Taxes” was issued in December 2010. It provides useful guidelines for the cases of assets measured at fair value, in accordance with the requirements of IAS 40 “Investment Property”, for property recovered through use or sale.  This amendment is applicable to annual periods commencing on or after 1.1.2012. This amendment has no effect on the financial statements. This amendment was approved by the EU in December 2012.

•	Amendment to IFRS 1 “First-time Adoption of International Financial Reporting Standards” - Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters of IFRS (applicable to annual periods commencing on or after 1.7.2011)
The relevant amendments to IFRS 1 First time application of the IFRS were issued in December 2010. These amendments make references to fixed dates for undertakings adopting the IFRS for the first time and the definition of the IFRS transition date. It lays down the conditions with regard to how a company must present its Financial Statements in accordance with the IFRS after a period whereby the company was not able to comply with IFRS requirements because its operating currency had been subject to severe hyperinflation. The amendments apply as of 1.7.2011. This interpretation is not applicable to the Company’s activities. This amendment was approved by the EU in December 2012.

(2.2.2) Standards, amendments and interpretations to existing standards which have not yet been brought into effect and have not yet been adopted by the European Union.    
In addition, the IASB has issued the following new IFRS, amendments and interpretations which are not mandatory for the financial statements presented here and which had not been adopted by the EU up until the date on which these financial statements were published.                      

•	Amendments to IAS 1 “Presentation of Financial Statements” - Presentation of Other Comprehensive Income (applicable to annual periods commencing on or after 1.7.2012)
In June 2011 the IASB issued amendments to IAS 1 “Presentation of Financial Statements”. These amendments refer to the way information about other comprehensive income is presented. These amendments apply to annual periods commencing on or after 1.7.2012. This amendment is not expected to have a significant impact on how the financial statements are presented. This amendment was approved by the EU in June 2012.

•	IFRS 9 “Financial Instruments” (applicable to annual periods commencing on or after 1.1.2015)
On 12.11.2009, the IASB issued a new standard, the revised IFRS 9 “Financial Instruments”, which will gradually replace IAS 39 “Financial Instruments: Recognition and Measurement”. Note that in October 2010 the IASB issued additions with regard to the financial liabilities that a financial entity has chosen to measure in fair values. According to IFRS 9, all financial assets are initially measured at fair value plus transaction costs. Subsequent measurement of financial assets is either performed at amortized cost or at fair value, depending on the company’s business model with regard to its financial assets and the contractual cash flows of said asset. IFRS 9 does not allow reclassifications, except for the cases where the company’s business model has changed, but even in that case, the company must reclassify all affected financial instruments in the future. According to the IFRS 9 principles, all equity investments should be measured at fair value. However, Management has an option to present in other comprehensive income realized and unrealized fair value earnings and losses on equity investments that are not held for trading. The Company will examine the impact of this on its Financial Statements. This standard has not yet been adopted by the EU.

•	IFRS 10 "Consolidated Financial Statements”, IFRS 11 “Joint Arrangements”, IFRS 12 “Disclosures of interests in other entities”, IAS 27 “Separate Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” (applicable to annual periods commencing on or after 1.1.2013)
In May 2011 the IASB issued three new standards (IFRS 10, IFRS 11 and IFRS 12). IFRS 10 “Consolidated financial statements” refers to a model of consolidation that defines the type of control which is used as the basis for consolidating all types of undertakings. IFRS 10 replaces IAS 27 “Consolidated and Separate Financial Statements” and SIC 12 “Consolidation - Special purpose entities”. IFRS 11 “Joint Arrangements” outlines the principles with regard to the financial reporting for entities that jointly control an arrangement. IFRS 11 replaces IAS 31 “Interests in Joint Ventures” and SIC 13 “Jointly Controlled Entities - Non-monetary Contributions by Venturers”. IFRS 12 “Disclosures of interests in other entities” combines, enhances and replaces disclosure requirements for subsidiaries, jointly controlled entities, associates and unconsolidated structured entities. As a consequence of these new standards, the IASB also issued the amended IAS 27, entitled IAS 27 “Separate Financial Statements”, and the amended IAS 28, entitled IAS 28 “Investments in Associates and Joint Ventures”. The new standards are applicable to annual periods commencing on or after 1.1.2013, with earlier application permitted.  The Company will examine the impact of this on its Financial Statements. These Standards were approved by the EU in December 2012.

•	IFRS 13 “Fair Value Measurement” (applicable to annual periods commencing on or after 1.1.2013)
In May 2011 the IASB issued IFRS 13 “Fair Value Measurement”. IFRS 13 defines fair value, sets out a single standard a framework for measuring fair value, and requires disclosures about fair value measurements. IFRS 13 is applicable is cases where other IFRS require or allow fair value measurements. IFRS 13 does not introduce new requirements for measuring the fair value of an asset or liability. Moreover, it does not change what other standards stipulate with regard to which financials are measured at fair value and does not mention how the changes in fair value are to be presented in the Financial Statements. The new standard is applicable to annual periods commencing on or after 1.1.2013, with earlier application permitted.  The Company will examine the impact of this on its Financial Statements. This Standard was approved by the EU in December 2012.

•	Amendments to IAS 19 “Employee Benefits” (applicable to annual periods commencing on or after 1.1.2013)
In June 2011 the IASB issued amendments to IAS 19 “Employee Benefits”. These amendments aim at improving issues relating to recognition and disclosure requirements for defined benefit plans.  The new amendments are applicable to annual periods commencing on or after 1.1.2013, with earlier application permitted.  The Company will examine the impact of this on its Financial Statements. This amendment was approved by the EU in June 2012.

•	   IFRIC 20 “Stripping Costs in the Production Phase of a Surface Mine” (applicable to annual periods commencing on or after 1.1.2013)
The IASB issued IFRIC 20 in October 2011. This interpretation clarifies when production stripping costs should lead to the recognition of an asset and how that asset should be initially and subsequently measured. This interpretation is applicable to annual periods commencing on or after 1.1.2013, with earlier application permitted. Said interpretation is not applicable to the Company’s activities. This amendment was approved by the EU in December 2012.

•	Amended IAS 32  Financial Instruments: Presentation” – Offsetting financial assets and financial liabilities (applicable to annual periods commencing on or after 1.1.2014)
In December 2011 the IASB issued amendments to IAS 32 “Financial Instruments: Presentation” in order to provide clarifications about the requirements of this standard in the case of offsetting. These amendments are applicable to annual periods commencing on or after 1.1.2014, with earlier application permitted.  The Company will examine the impact of this on its Financial Statements. This amendment was approved by the EU in December 2012.

•	Amendments to IFRS 7 “Disclosures” – Offsetting financial assets and financial liabilities (applicable to annual periods commencing on or after 1.1.2013)
In December 2011 the IASB issued new disclosure requirements allowing users of Financial Statements to compare in the best possible manner the statements published in accordance to IFRS to those published in accordance with the US GAAP. These amendments apply to annual periods commencing on or after 1.1.2013. The Company will examine the impact of this on its Financial Statements. This amendment was approved by the EU in December 2012.

•	Amendment to IFRS 1 “First-time Adoption of International Financial Reporting Standards” – Government Loans (applicable to annual periods commencing on or after 1.1.2013)
In March 2012 the IASB issued the amendment to IFRS 1, whereby first-time adopters of IFRS which had received government loans at a preferential interest rate, were relieved from full retrospective application of IFRS when accounting for these loans on transition. This interpretation is not applicable to the Company’s activities. This amendment has not yet been adopted by the EU.

•	Annual Improvements to IFRS 2009-2011 Cycle (issued in May 2012 – the amendments are applicable to the annual periods commencing on or after 1.1.2013)  
In May 2012, the IASB issued the “Annual Improvements to IFRS 2009-2011 Cycle”, which incorporates a series of adjustments to 5 standards and forms part of the annual improvement project. These amendments have no substantive impact on the Company's financial statements. These amendments have not yet been adopted by the EU.

•	Transition guidelines: Consolidated Financial Statements, Joint Arrangements and Disclosures of Interests in other entities: Transition Guidance (amendments to IFRS 10, IFRS 11 and IFRS 12 – applicable to annual accounting periods commencing on or after 1.1.2013)
In June 2012 the IASB issued this document which provides clarifications about the transitional provisions of IFRS 10. The amendments provide additional options during the transition to IFRS 10, IFRS 11 and IFRS 12 reducing the requirements to provide adjusted, comparative information, to the previous comparator period only. Moreover, as far as disclosures for undertakings not included in the consolidation are concerned, the amendments remove the requirement to present comparative information for periods before the first-time application of IFRS 12. These amendments apply to annual periods commencing on or after 1.1.2013. These amendments are not expected to have a significant impact on the financial statements. These amendments have not yet been adopted by the EU.

•	Investing entities (amendments to IFRS 10, IFRS 11 and IAS 27) (applicable to annual periods commencing on or after 1.1.2014)
In October 2012 the IASB issued amendments to IFRS 10, IFRS 11 and IAS 27. These amendments are applicable to investing entities. IASB has used the term ‘investing entities’ to refer to all entities engaged exclusively in investing capital to generate returns from the goodwill on capital, or revenues from investments or both. Investing entities must evaluate the return on investments at fair value. This category  may include private venture capital firms, investment capital managers, private pension funds, public investment funds and other investment funds. By way of exception to the requirements in IFRS 10, the amendments state that investing entities must measure specific subsidiaries at fair value through the results and must not include them in the consolidation but provide the necessary disclosures instead. These amendments are applicable to annual periods commencing on or after 1.1.2014, with earlier application permitted.  The Company will examine the impact of this on its Financial Statements. These amendments have not yet been adopted by the EU.

 (2.3) Important accounting judgements, estimates and assumptions
Preparing the financial statements in line with the IFRS requires that Management make judgements and estimates and use assumptions which affect the published assets and liabilities, and that it discloses contingent assets and liabilities on the date of the financial statements and the published income and expenses for the reference period. The actual results may differ from the estimated ones.
Estimates and judgements are continuously re-evaluated based both on past experience and other factors, including expectations about future events, which are considered reasonable based on the specific circumstances. 
The most important estimates for the company are the estimate of the useful life of assets, and the estimate of tax liabilities, deferred taxation, the recoverability of receivables, and provisions for contingent liabilities and risks.

3. SUMMARY OF ACCOUNTING POLICIES
(3.1) General
The major accounting policies which have been used to prepare these financial statements are summarised below.
It is worth noting that the paragraph above mentioned that accounting estimates and assumptions are used in preparing the financial statements. Despite the fact that these assessments are based on the best knowledge available to Management about current affairs and activities, the actual results may differ from those estimated.
The financial statements are expressed in euro.
(3.2) Foreign exchange transactions
The functional currency is the Euro (€). Foreign exchange transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Assets and liabilities expressed in foreign currency are translated into the functional currency using the exchange rates prevailing at the date on which the balance sheet is closed. Any foreign exchange differences arising are posted to the income statement.
(3.3) Tangible assets
Tangible assets are assets employed by the company in the context of its operations. Tangible assets include improvements to leased properties, furniture and other equipment. Improvements to leased properties, furniture and other equipment are valued at acquisition cost less accumulated depreciation and accumulated impairment.

Depreciation. Tangible assets are depreciated based on a straight line depreciation method over their useful life. In the case of improvements to third party properties in particular, depreciation is applied either over the useful life of the property or the effective term of the lease, whichever is shorter.  

Residual value and the useful life of tangible assets are subject to re-examination on each balance sheet date. When the book value of tangible assets exceeds the recoverable value the differences (impairment) are posted as expenses to the results.
When the tangible assets are sold, differences between the price received and the book value are posted as profits or losses in the income statement. Repairs and maintenance costs are expensed in the period to which they relate.

(3.4) Investments in financial assets 
A financial instrument is any contract which generates a financial asset for an undertaking and a financial liability or equitable title in another undertaking. The company’s investments in financial instruments are classified into the following categories based on the substance of the contract and the purpose for which the assets were acquired. The decision on classification of investments is taken at acquisition. Initially, all investments are posted based on the transaction date and are valued at acquisition cost which is the fair value of the consideration paid, including purchase expenses related to the investment, where these are investments available for sale. Expenses from investments at fair value presented in the income statement are not capitalised but posted directly to the income statement for the period.

Investments at fair value through income statement: This relates to financial assets held for commercial purposes These are securities purchased to generate a profit from the short-term changes in prices, and are different from those used as hedging instruments. The company can register shares, bonds, and mutual fund units in this category. 
Held-to-maturity investments: Held-to-maturity investments are non-derivative financial assets with specific or predetermined payments and a fixed maturity date. Financial assets are classified as held-to-maturity investments where Company Management intends and is able to hold them to maturity. After initial recognition, investments in this category are valued at carried cost using the effective interest rate. The carried cost is the amount initially measured for the financial asset or the financial liability less capital repayments, plus or minus accumulated depreciation, any difference between the initial amount and the amount payable at maturity calculated using the effective interest rate, and having deducted any value decline. This calculation includes all fees and units paid or received by the contracting parties which are an integral part of the effective interest rate, the transaction costs and all surcharges or discounts.
Moreover, if there is objective evidence that the financial asset's value has been impaired, the investment is valued at the present value of the forecast cash flows and any discrepancy between that figure and the investment’s book value is recognised in the results as a loss. The company did not have investments in this category during 2012 or the previous year, 2011.

Investments available for sale: Investments which can either be held to maturity or sold in order to meet liquidity requirements or to generate profits from changes in interest rates or FX prices are classified as investments available for sale. After initial posting, investments classified as available for sale are valued at fair value. Profits or losses arising from valuation of investments available for sale are posted in a separate equity account until sold, or collected or it is ascertained that their value is impaired in which case they are carried forward to the income statement. The company did not have investments held for sale during 2012 or the previous year, 2011.

Fair value estimation
Investments traded on regulated money markets are valued at fair value which is calculated based on the current stock exchange value on the day the financial statements are closed. Investments in securities not listed on the exchange are valued at their estimated fair value calculated using recognised models and valuation indicators, suitably adjusted to take into account the special features of issuers of the said securities and having compared the current market values of similar companies listed on stock exchanges.
All normal purchase and sale transactions for investments in financial assets are posted on the trade date which corresponds to the date on which the Company undertakes to purchase or sell the financial asset.
(3.5) Cash and cash equivalents
Cash and cash equivalents include the Company’s cash assets with a maturity date of less than 3 months from the acquisition date.

(3.6)  Share capital 
The share capital is calculated based on the nominal value of shares which have been issued. Ordinary shares are posted as equity. During share capital increases, any difference between the nominal value of shares and the sale price of shares is transferred to the ‘premium on capital stock’ account. Costs incurred for the issuing of shares are presented after deducting the income tax applied, and reduce the proceeds of the issue.

(3.7) Leases
The Company as lessee
Operating Leases
The Company participates in operating leases where the lessor substantively retains the risks and rewards deriving from the leased assets. The expenses for operating leases are posted to the results on a systematic basis during the lease.
Finance Leases
The Company did not have any finance leases in 2012 or in the previous year, 2011. 
(3.8) Receivables – Liabilities 

Receivables
Receivables from customers and other receivables are posted initially at fair value and later are valued at carried cost using the effective interest rate less provisions for any reduction in their value. The relevant impairment losses are presented directly in the results. 

Liabilities
Suppliers and other liabilities are initially recognised at their nominal value and are subsequently valued at carried cost less any payments made.

Offsetting receivables – liabilities 
Offsetting financial assets against liabilities and presentation of the net amount in the financial statements is only permitted when there is a legal right to offset the posted amounts and there is an intention either to settle the net amount arising from the offsetting or to simultaneous settle the entire amount of the financial asset and the liability.

(3.9) Income
Commission and related income is posted to the income statement during the period in which the services related to those amounts were provided. Commission and related income deriving from transactions on behalf of third parties are recognised in the results at the time the transaction is completed. Fees for portfolio management services and consultancy services are posted to the results in line with the service agreement, usually on a pro rata basis.

Interest income and expenses are posted to the income statement using the effective interest rate.

Income from dividends is recognised in the income statement on the date on which the company acquires the right to draw the dividend.
(3.10) Provisions
The company forms provisions for contingent liabilities and risks when: 
•	there is a present legal or presumed commitment as a result of past incidents 
•	the level of the commitment can be objectively determined and 
•	there is a likely output of resources which incorporate financial benefits in order to settle a liability.
(3.11) Income tax
The income tax payable, which is calculated on the profits for the period in line with the current taxation legislation, is acknowledged as an expense in the results of the current accounting period. Tax losses which are carried forward to later accounting periods to be offset are acknowledged as assets when it is considered likely that future taxable profits will be made, which will be adequate to offset the accumulated tax losses.

Deferred income tax is calculated based on interim differences which arise between the book value of assets and liabilities which are included in the financial statements and the taxation value attributed to them in accordance with the taxation legislation. 

In order to determine the deferred income tax, the statutory tax rates are used or tax rates which are adopted on a date after the balance sheet closing date.

The Company acknowledges deferred tax assets when it is likely that the future taxable profits are adequate to offset the interim differences.

(3.12) Employee benefits

The company pays compensation to its staff upon retirement in line with Law 2112/1920. The liability posted in the balance sheet in the case of specific benefit schemes is the present value of benefits on the financial statements date less the fair value of assets in the scheme and adjustments required for profits or losses from actuarial studies which have not been recognised and the past service cost. Independent actuaries using the projected unit credit method calculate the defined benefit obligation each year. The present value of the obligation which arises from the specific fixed benefit scheme is calculated by discounting future cash flows at an interest rate based on treasury bonds in the relevant currency, whose maturity period approximates the terms of the relevant compensation obligation.

Actuarial profits or losses which may arise from adjustments based on experience and from a change in actuarial assumptions are debited or credited to the results pro rata based on the average residual working life of employees.

Moreover, the company forms a provision for compensating staff associated with it on a fixed-term employment relationship.
 (3.13) Transactions with associates
Associates means the parent company and other enterprises which are directly or indirectly controlled by it. Moreover, associates include members of Company Management, their relatives to the first degree and companies held by them or companies which exert a substantive influence on decision making.
All transactions between the Company and associates are conducted on the same financial footing as similar transactions with non-associates entered into at the same time.

(3.14) Earnings per share
The basic earnings per share (EPS) indicator is calculated by dividing the net profits or losses for the accounting period which are payable to ordinary shareholders by the average weighted number of ordinary shares in circulation during the period. The reduced earnings per share indicator is calculated using the same methodology for calculating the basic earnings per share indicator but the definitive terms in the indicator –net profits or losses and number of ordinary shares– are adjusted accordingly to reflect a possible reduction in earnings per share which could arise either from the conversion of convertible bonds or from the exercise of share options by the ordinary shareholders.

4. INCOME FROM OPERATING ACTIVITIES
The Company’s income from operating activities can be broken down as follows:

(Amounts in €)	
	1.1-31.12.2012	1.1-31.12.2011	
DESCRIPTION			
Venture capital fund management fees & commission 	1.126.829,54	1.158.961,34	
Interest on deposits with credit institutions	51.757,67	39.016,33	
Profits from financial transactions	(1.526,18)	2.846,95	
Miscellaneous operating income	0,00	143,77	
Total Income from operating activities	1.177.061,03	1.200.968,39	

The ‘Venture Capital Fund management fees & commission’ relates to income from managing the ZAITECH FUND and ZAITECH FUND II. 

5.  OPERATING EXPENSES
The Company’s operating expenses overall can be broken down as follows:
(Amounts in €)	
	1.1-31.12.2012	1.1.31.12.2011	
DESCRIPTION			
Bank commission and expenses			
Bank expenses	(164,33)	(272,30)	
Total bank commission & expenses (a) 	(164,33)	(272,30)	
Personnel fees and expenses			
Payroll, wages and related expenses 	(401.055,18)	(400.995,92)	
Mandatory social security contributions	(40.049,26)	(33.057,91)	
Total personnel fees and expenses (b) 	(441.104,44)	(434.053,83)	
Depreciation			
Tangible asset depreciation (Note 8)	(15.451,24)	(9.509,19)	
Depreciation total (c)	(15.451,24)	(9.509,19)	
Miscellaneous operating costs			
Professional fees and expenses	(154.575,63)	(205.191,93)	
Promotion and advertisement expenses	(158.642,83)	(147.611,89)	
Telecommunications	(8.760,06)	(8.801,79)	
Repairs & maintenance	(16.849,68)	(5.500,99)	
Transportation expenses 	(29.292,47)	(20.727,19)	
Printed materials and office supplies	(2.851,01)	(9.598,99)	
Public utility services	(4.663,18)	(1.672,95)	
Building & means of transport rents 	(49.744,76)	(71.249,18)	
Other expenses	(144.937,18)	(115.632,62)	
Other operating expenses total (d) 	(570.316,80)	(585.987,53)	
	
Total operating expenses = (a)+(b)+(c)+(d)	(1.027.036,81)(1.029.822,86)	

In 2012, as in the previous year 2011, the company employed a total of 4 people.

6. TAXES

The taxes imputable to the Company’s results can be broken down as follows:

(Amounts in €)	
DESCRIPTION	1.1-31.12.2012	1.1-31.12.2011	
Income tax for the period 
Deferred tax	(49.655,83) 5.903,14	(56.042,77)
(13.575,80)	
Taxes	(43.752,69)	(69.618,57)	
Deferred tax	
Other interim differences	5.903,14	(13.575,80)	
Results from deferred tax	5.903,14	(13.575,80)	

The income tax return is submitted each year but the results declared are considered to be interim results until the tax authorities audit the company’s books and records and a final audit report is issued.  
Note that from 2011 onwards Greek societes anonyme and limited liability companies whose annual financial statements are mandatorily audited are obliged to obtain an annual certificate specified by Article 82(5) of Law 2238/1994 issued following a tax audit carried out by a statutory auditor or the auditing firm which audits the annual financial statements. After the tax audit is completed, the statutory auditor or auditing firm will provide the company with a tax compliance report and then the statutory auditor or auditing firm will submit it online to the Ministry of Finance within 10 days from the last date for approval of the Company’s financial statements by the General Meeting of Shareholders. The Ministry of Finance will then select a sample of companies (around 9%) to be audited by the Ministry’s competent auditing authorities. That audit must be completed within a period of no more than 18 months from the date on which the tax compliance report was submitted to the Ministry of Finance.
During the 2011 and 2012 fiscal year, the Company underwent a tax audit by certified public accountants as required by the provisions of Article 82(5) of Law 2238/1994. The audit for 2011 has been completed and the relevant tax compliance certificate has been completed by the certified public accountant and submitted to the Ministry of Finance on 30.7.2012, indicating that all is in order. The tax audit for 2012 is underway and the relevant tax certificate is expected to be issued after the 2012 financial statements are published. It is considered that completion of the tax audit will not reveal any additional tax liabilities which will have a material impact on the financial statements.
The 2010 tax year remains open and the company has formed a provision of € 8,055.64 which is considered adequate to cover any possible additional future liability which may arise from a tax audit.
Under the tax law applicable in Greece, societes anonyme are tax on their overall profits at a rate of 20% for 2012, just like in the comparator period 2011.

7. BASIC EARNINGS PER SHARE

The basic and diluted earnings per share are calculated based on the earnings after tax and the average weighted number of shares in circulation during the course of the year.

(Amounts in €)	
DESCRIPTION	1.1-31.12.2012	1.1-31.12.2011	
Earnings net of tax
Average weighted number of shares during the period	106.271,53 
15.000	101.526,96
15.000	
Basic and diluted earnings per share	7,0848	6,7685	

8. TANGIBLE AND INTANGIBLE ASSETS 

The changes in the Company’s tangible assets are presented as follows:

(Amounts in €)	
	Furniture and other equipment	Improvements to leased third party property	Software Applications		
DESCRIPTION				Total	
Start on 01.01.11					
Acquisition cost	49.026,63	4.720,00	16.822,20	70.568,83	
Accumulated depreciation	(41.097,46)	(4.720,00)	(16.822,20)	(62.639,66)	
Carried amount on 01.01.11	7.929,17	0,00	0,00	7.929,17	
Plus:					
Additions in 2011	43.060,84	44.758,19		87.819,03	
Minus:					
Depreciation recorded in 2011	(7.772,00)	(1.737,19)		(9.509,19)	
Carried amount on 31.12.11	43.218,01	43.021,00	0,00	86.239,01	
Acquisition cost on 31.12.11	92.087,47	49.478,19		141.565,66	
Accumulated depreciation 31.12.2011	(48.869,46)	(6.457,19)		(55.326,65)	
Carried amount on 31.12.11	43.218,01	43.021,00	0,00	86.239,01	
Plus:					
Purchases in 2012			4.920,00	4.920,00	
Minus:					
Depreciation recorded in 2012	(11.229,39)	(3.729,85)	(492,00)	(15.451,24)	
Carried amount on 31.12.12	31.988,62	39.291,15	4.428,00	75.707,77	
	
Acquisition cost on 31.12.12	92.087,47	49.478,19	4.920,00	146.485,66	
Accumulated depreciation 31.12.12	(60.098,85)	(10.187,04)	(492,00)	(70.777,89)	
Carried amount on 31.12.12	31.988,62	39.291,15	4.428,00	75.707,77	

The additions to assets in 2012 related to software programs the company acquired. 

9. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT & LOSS

(Amounts in €)	
DESCRIPTION	31.12.2012	31.12.2011	
Domestic listed shares	12.032,21	13.558,39	
Financial assets at fair value through profit and loss			
	12.032,21	13.558,39	

The shares belonging to the company on 31.12.2012 and 31.12.2011 relate to 3 companies listed on the Athens Exchange’s Alternative Market. 

10. OTHER RECEIVABLES  

Company other receivables can be broken down as follows:

(Amounts in €)	
DESCRIPTION	31.12.2012	31.12.2011	
Prepaid income tax and other tax receivables to be offset
Pre-paid expenses
Guarantees provided & other receivables 	34.549,11 237.714,41 16.076,61	29.094,07 291.428,71 15.883,40	
Other receivables	288.340,13	336.406,18	

11. CASH AND CASH EQUIVALENTS
The Company’s cash and cash equivalents can be broken down as follows:

(Amounts in €)	
DESCRIPTION	31.12.2012	31.12.2011	
Sight deposits in credit institutions in Greece	1.188.305,46	1.019.364,99
	
Cash and cash equivalents	1.188.305,46	1.019.364,99	

12. SHARE CAPITAL

(Amounts in €)	
DESCRIPTION	31.12.2012 	31.12.2011	
Paid-up	600.000,00 	600.000,00	

Company share capital stands at € 600,000.00 divided into 15,000 ordinary shares with a nominal value of € 40.00 each. The main shareholder with 14,999 shares is Attica Bank while the minority holding accounts for € 40.00 of the share capital. There was no change in the Company’s share capital from 2011 to 2012.

13. STATUTORY RESERVE
(Amounts in €)	
DESCRIPTION	31.12.2012 	31.12.2011	
Statutory Reserve	41.444,88 	36.344,88	

In implementation of Article 44 of Codified Law  2190/1920 each year 5% of the Company's net profits are deducted to form a Statutory Reserve. The obligation to form a statutory reserve ceases to apply when it reaches 1/3 of the share capital.  Based on the profit distribution proposed by the Company’s Board of Directors, € 5,313.60 of the net profits for the period which ended on 31.12.12 will be used to form the statutory reserve, which will be presented in the said account following approval of that distribution by the General Meeting of Shareholders.

14. DEFERRED TAX RECEIVABLES – LIABILITIES 

The Company’s deferred tax receivables (liabilities) are as follows:

(Amounts in €)	
	
DESCRIPTION	31.12.2012 31.12.2011	
Retirement benefits and retirement compensation 
Other interim differences	8.758,09 	10.140,68 
(40.285,73) (47.571,46)	
Deferred tax assets – (liabilities)	(31.527,64) (37.430,78)	

The Company uses the full obligation method to calculate the amount of deferred tax on all interim tax differences. The tax rate taken into account by the Company to precisely determine the amount of deferred tax is that which applies from time to time in the year that the differences are settled. In cases where the tax rate which has been used to determine the amount of deferred tax is different from the one which applies in the year in which the tax differences are settled, the difference is posted to the income statement.

15. POST-EMPLOYMENT BENEFITS

The total amount of the post-employment benefit obligation recognised in the Company’s financial statements is set out in the table below:
(Amounts in €)	
DESCRIPTION	31.12.2012	31.12.2011	
Post-employment benefits	43.790,42	50.703,33	
Total	43.790,42	50.703,33	

Of the total provision as at 31.12.2012, the sum of € 38,941.76 relates to staff employed by the Company on the basis of a fixed-term employment contract. The balance of the provision as at 31.12.2012 (€ 4,848.66) relates to staff employed by the Company on the basis of an open-ended employment contract.

16. OTHER LIABILITIES 

Company other liabilities can be broken down as follows:

(Amounts in €)	
DESCRIPTION	31.12.2012	31.12.2011	
Tax and duties payable (other than income tax) 
Creditors, suppliers & accrued expenses for period  
Insurance and pension fund dues 
Unearned and deferred income 
Other provisions	31.419,52 81.571,61 12.291,80
132.534,51 23.055,64	49.791,05
55.730,57
8.114,35
146.183,51 14.250,00	
Total other liabilities	280.873,08	274.069,48	

The other provisions totalling € 23,055.64 relate to (a) a provision for the 2010 period which remains unaudited by the tax authorities (€ 8,055.64) and (b) provisions of € 15,000 based on management’s estimates for other operating risks. 

17. OPERATING LEASES

The Company’s liabilities from property leases relate to the buildings the Company uses as offices to house its various departments and leases for cars used in its operational activities.

The total amount of minimum future payments which the Company will be called upon to pay is broken down in the following table:

(Amounts in €)			
DESCRIPTION	31.12.2012	31.12.2011	
Minimum future payments by Company as lessee:			
Within one year	51.294,84	256.474,20	
From one to five years	256.474,20	213.728,50	
Over five years 	213.728,50	0,00	
Total minimum future payments	521.497,54	470.202,70	

The total amount which has been recorded as expenses in the income statement for 2012 relating to the payment of rents was € 48,690.50.

18. TRANSACTIONS WITH RELATED PARTIES

The Company’s transactions with related parties are set out in detail below:

 
(Amounts in €)	
DESCRIPTION	
A. TRANSACTIONS WITH ASSOCIATES	31.12.2012	31.12.2011	
Α1. Receivables	1.188.305,46	1.019.364,99
	
Α2. Revenues	51.757,67	45.989,28
	
Α3. Expenses	0,00	5.583,86	
B. TRANSACTIONS WITH MEMBERS OF MANAGEMENT

Board member meeting fees	31.12.2012

23.270,22	31.12.2011

24.210,66	

19. TAX LIABILITIES

The 2010 tax year remains open and the company has formed a provision of € 8,055.64 which is considered adequate to cover any possible additional future liability which may arise from a tax audit.
During the 2011 and 2012 fiscal year, the Company underwent a tax audit by certified public accountants as required by the provisions of Article 82(5) of Law 2238/1994. More information about this is contained in note 6 to the financial statements. 

20.  RISK MANAGEMENT

The Company is exposed to various financial risks, the most important of which are set out in the paragraphs below. The Company has developed various mechanisms for monitoring and managing risk so as to avoid the accumulation of excessive risk. 

20.1 LIQUIDITY RISK

Liquidity risk means the possible inability of the Company to fully repay in due time its current or future financial obligations –when they become due- due to a lack of necessary liquidity. This risk includes the possibility of a need to refinance amounts at a higher interest rate and the need to sell off assets. 

The Company is not substantively exposed to liquidity risk since the greater part of its assets is directly available and more than cover its liabilities.

20.2 EXCHANGE RATE RISK
			
Exchange rate risk means the investment risk assumed, which arises from unfavourable changes in currency prices, when there is exposure to a specific currency. The Company has set limits for its maximum FX exposure per currency which are monitored on a continuous basis. The company had no open FX exposure in any currency at the end of the year on 31.12.2012. 

20.3 INTEREST RATE RISK		
	
Interest rate risk means the investment risk assumed, which arises from changes in the market in money interest rates. Such interest rate changes can affect the Company’s financial position since the following can also change:
-	The net interest rate result
-	The value of income and expenses sensitive to interest rate changes
-	The value of assets and liabilities since the present value of future cash flows (and frequently the cash flows themselves) change as interest rates change.
The Company is not exposed to significant interest rate risk except for the cash assets which it holds in deposit accounts with the parent company, ATTICA BANK. 

20.4 CREDIT RISK

The Company is not exposed to credit risk deriving from breach of obligations by debtors to repay all or part of their debt within contractual deadlines. That is due to the fact that by its nature Company income (receivables), which comes from venture capital fund management fees, is not exposed to any significant credit risk.  

21. EVENTS WHICH OCCURRED AFTER 31.12.2012

The tax rate for societes anonyme for 2013 will rise from 20% to 26% pursuant to Law 4110/2013 on arrangements for income taxation, arrangements on matters within the remit of the Ministry of Finance and other provisions (Government Gazette 17/A/23.1.2013).  IAS 12 (para. 47) and IAS 10 (para. 22h) state that this change in the tax rate which was voted on at the start of 2013 is a ‘non-adjusting event’ for the company’s financial statements as at 31.12.2013 where the deferred tax was computed at a tax rate of 20%. If the deferred tax on 31.12.2012 had been computed at a rate of 26% the deferred tax liability and the deferred tax in the results would be € 9,458.29 higher, resulting in an equal reduction in the Company’s equity presented in the statement of financial position.