AS COMPANY S.A.
GROUP OF COMPANIES
ANNUAL FINANCIAL REPORT
of the financial year from
1 January 2021 to 31 December 2021
According to article 4 of Law 3556/2007
General Trading Record Number 57546304000 - Company's Number in the Register of Societes
Anonymes 22949/06/Β/90/107
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
1
Contents
Ι. DECLARATIONS OF MEMBERS OF THE BOARD OF DIRECTORS ........................................ 3
ΙΙ. ANNUAL REPORT OF THE BOARD OF DIRECTORS (SEPARATE AND CONSOLIDATED) FOR
THE FINANCIAL YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021 (in accordance with
article 4 of Law 3556/2007). .................................................................................................. 4
Α. FINANCIAL INFORMATION 2021 ..................................................................................... 5
III. Independent Auditors’ Report ....................................................................................... 46
Report on Other Legal and Regulatory Requirements ............................................................ 51
IV. ANNUAL FINANCIAL STATEMENTS ........................................................................... 56
A. ANNUAL STATEMENT OF FINANCIAL POSITION ............................................................ 56
B. ANNUAL STATEMENT OF COMPREHENSIVE INCOME ..................................................... 57
C. ANNUAL STATEMENT OF CHANGES IN EQUITY ............................................................. 58
D. ANNUAL CASH FLOW STATEMENT ................................................................................ 60
E. NOTES TO THE SEPARATE AND CONSOLIDATED ANNUAL FINANCIAL STATEMENTS ....... 61
1. General Information ...................................................................................... 61
2. Basis of preparation of the Financial Statements ............................................. 61
3. Important Accounting Principles and Methods ....................................................... 62
Basic accounting policies ......................................................................................... 62
4.1 Consolidation and Participations in subsidiaries ........................................... 66
4.2 Property, plant and equipment ................................................................... 66
4.3 Intangible Assets ....................................................................................... 66
4.4 Impairment of Non-Financial Assets ............................................................ 66
4.5 Financial Instruments ................................................................................ 67
4.6 Inventories ............................................................................................... 69
4.7 Cash and Cash Equivalents ........................................................................ 69
4.8 Share Capital ............................................................................................ 69
4.9 Government grants .................................................................................... 69
4.10 Employee Benefits ................................................................................. 69
4.11 Provisions .............................................................................................. 70
4.12 Deferred tax .......................................................................................... 70
4.14 Dividends .............................................................................................. 71
4.15 Leases .................................................................................................. 71
4.16 Foreign Currency Translation .................................................................. 72
5. Other Information ......................................................................................... 72
5.1 Consolidated Financial Statements .............................................................. 72
5.2 Seasonality of activities .............................................................................. 72
6. Operating Segments ...................................................................................... 72
7. Other Explanatory Information ....................................................................... 73
7.1 Property, plant and equipment and assets’ rights of use .............................. 73
7.2 Intangible assets ....................................................................................... 76
7.3 Participations in subsidiaries ....................................................................... 76
7.4 Other non-current assets ........................................................................... 76
7.5 Inventories ............................................................................................... 76
7.6 Accounts receivables ................................................................................. 77
7.7 Investments at fair value through P&L ........................................................ 78
7.8 Other current assets .................................................................................. 78
7.9 Cash and cash equivalents ......................................................................... 79
7.10 Paid Up Share capital and Reserves ........................................................ 79
7.11 Lease liabilities ...................................................................................... 80
7.12 Deferred Tax liabilities ........................................................................... 80
7.13 Staff leaving benefits ............................................................................. 81
7.14 Other long-term liabilities ....................................................................... 82
7.15 Accounts payables ................................................................................. 83
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
2
7.16 Short-term borrowings ........................................................................... 83
7.17 Other short-term liabilities ...................................................................... 83
7.18 Turnover ............................................................................................... 83
7.19 Cost of Sales ......................................................................................... 83
7.20 Other income ........................................................................................ 84
7.21 Administrative expenses ......................................................................... 84
7.22 Distribution expenses ............................................................................. 84
7.23 Research and development expenses ...................................................... 85
7.24 Depreciation – Impairment ..................................................................... 85
7.25 Financial expenses ................................................................................. 86
7.26 Taxes .................................................................................................... 86
8. Related Parties Transactions .......................................................................... 87
9. Main Risks and Uncertainties ......................................................................... 89
10. Fair value and hierarchy of fair values ............................................................ 92
11. Commitments and contingent liabilities – Guarantees granted .......................... 92
12. Earnings per share ........................................................................................ 93
13. Audit Fees .................................................................................................... 94
14. Subsequent events after the date of the Financial Position .............................. 94
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
3
Ι. DECLARATIONS OF MEMBERS OF THE BOARD OF DIRECTORS
(in accordance with article 4, paragraph 2 of Law 3556/2007)
We, the members of the Board of Directors of "AS COMMERCIAL INDUSTRIAL COMPUTER
AND TOY COMPANY S.A.":
1. Efstratios Andreadis Konstantinos, President of the BoD & C.E.O.,
2. Anastasia Andreadou, nee Angelos Kozlacidis, Vice-President of the Board of Directors,
executive Member
3. Theodora Koufou, executive Member of the Board of Directors,
under our above-mentioned capacities specifically designated by the Board of Directors of
“AS COMMERCIAL INDUSTRIAL COMPUTER AND TOY COMPANY S.A.” (hereinafter
referred to as "Company") hereby declare and certify that to the best of our knowledge:
a) The accompanying Separate and Consolidated Financial Statements for the period from 1
January 2021 to 31 December 2021, of the Company "AS COMMERCIAL INDUSTRIAL
COMPUTER AND TOY COMPANY S.A.", as well as the companies that are included in the
consolidation taken as a whole, which were prepared in accordance with the International
Financial Reporting Standards, as adopted by the European Union, present in a true manner
the Assets and Liabilities, Equity and Profit and Loss statement of the year for the twelve-
month period ended on 31 December 2021.
b) The Board of Directors Report upon these Financial Statements accurately reflects in a true
manner the development, performance and financial position of the Company as well as the
companies included in the Consolidated Financial Statements taken as a whole, including
the description of the major risks and uncertainties they face.
Thessaloniki, 14 April 2022
PRESIDENT of the BoD & C.E.O.
EXECUTIVE VICE-PRESIDENT of the BoD
MANAGING DIRECTOR
EFSTRATIOS Κ. ANDREADIS
ANASTASIA Ε. ANDREADOU
ID No AP 235479
ID No ΑΗ 181790
B.O.D MEMBER
THEODORA D. KOUFOU
ID No AN 233404
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
4
ΙΙ. ANNUAL REPORT OF THE BOARD OF DIRECTORS (SEPARATE AND
CONSOLIDATED) FOR THE FINANCIAL YEAR FROM 1 JANUARY 2021 TO
31 DECEMBER 2021 (in accordance with article 4 of Law 3556/2007).
Dear Shareholders,
This Annual Report of the Company's Board of Directors concerns the financial year 2021 and
was prepared in accordance with articles 150-154 of Law 4548/2018, article 4 of Law 3556/2007
and the relevant decisions of the Hellenic Capital Market Commission and refers to the Annual
Separate and Consolidated Financial Statements (hereinafter referred to as “Financial
Statements”) as at 31 December 2021 and in the twelve-month period ended on that date.
This Report includes the actual depiction for the period from 1 January 2021 to
31 December 2021, the major events that took place in 2021, the description of the main risks
and uncertainties, the major events that took place after the end of 2021, the material
transactions of the Company and the Group of AS Company S.A. (the “Group”) with the related
parties as well as the Corporate Governance Declaration.
The Annual Financial Statements (Separate and Consolidated), the Auditor's Report and the
Board of Directors Report of AS COMMERCIAL INDUSTRIAL COMPUTER AND TOY COMPANY
S.A. may be found on the link: https://ir.ascompany.gr/el/home/.
The Separate and Consolidated Financial Statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European Union (EU).
The main point of reference of this Annual Financial Report is the consolidated financial data of
the Company with reference to the Company’s and the Group’s individual financial data.
All amounts in this Annual Financial Report are expressed in Euro.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
5
Α. FINANCIAL INFORMATION 2021
In 2021 the Group's key financial figures show a significant improvement in comparison to those
of the prior year 2020, which can be attributed to the increase of sales in the second semester;
compared to the relevant period both in the national market (+30,2%) and in the total sales of
the Group (+26,8%), maintaining high levels of liquidity.
The negative effects of Covid-19 impacted the sales of the first semester, as our Company’s
products were available only in a limited number of distribution chains, while our Company,
without suspending its activities, continued invoicing its customers that did not suspend their
activities, in response to a demand significantly lower than usual. This picture was completely
reversed in the 2
nd
semester, as the annual sales of the Group totaled to 22,69 billion euros,
with an increase of + 15,8% in comparison to the previous financial year, while the profits
before taxes totaled to 3,98 billion of euros, with an increase of +30,1%
The net financial income of the asset’s management totaled to 0,66 billion euros in comparison
to -0,16 billion of euros of the relevant period and contributed to the improvement of the overall
profitability.
In 2021, the main objectives of the Administration for the achievement of improved results in
comparison to the previous financial year and for the further enhancement of liquidity were
reached.
The most significant figures of the Company and the Group in relation to 2020 were as follows:
Group
Company
1.1 until
31.12.2021
1.1 until
31.12.2020
V %
1.1 until
31.12.2021
1.1 until
31.12.2020
V%
Turnover
22.695.672
19.607.363
15,75%
20.742.788
18.233.81
9
13,76%
% Gross profit
margin
46,67%
48,19%
42,82%
44,71%
EBIDTA
3.882.380
3.114.930
24,64%
3.066.429
2.559.615
19,80%
% of sales
17,11%
15,89%
14,78%
14,04%
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
6
Profit before tax
3.976.932
2.405.083
65,36%
3.202.791
1.848.498
73,26%
Profit after tax
3.184.247
1.881.067
69,28%
2.507.080
1.385.020
81,01%
Total inflows from
operating activities
4.370.271
464.255
841,35%
3.453.540
23.293
14726,
41%
Cash and
investments
19.408.259
15.619.597
24,26%
16.534.863
13.621.12
2
21,39%
The Group's turnover increased by 15,75% compared to the prior year of 2020 and amounted to
€ 22,7 million. The increased sales stem mainly from the Company (national market) as well as
from the significant increase in the sales of its two subsidiaries in Cyprus and Romania.
The turnover of the Group abroad through its two subsidiaries in Cyprus and Romania marked a
significant increase which totals to 40,76%.
For the Group, the gross profit margin decreased by 1,5 percentage points at 46.67% from
48.19% last year due to the decrease in the Company’s Gross margin profit figure. For the
Company, the gross profit margin in 2021 decreased to 42.82% from 44.71% mainly due to
increased transport costs.
The operating expenses increased by 5,95% and, despite the decrease in the Gross margin
profit figure, the increase in the number of sales resulted in EBITDA to increase by 17,11% as a
percentage to sales against 15.89% in the previous year. In absolute figures, EBITA came up to
3,88 millions of euros compared to 3,11 millions of euros in 2020, presenting an increase of
+24,64%.
As a result of the increase in sales, the profit before tax of the Group and the profit after tax of
the Group of the fiscal year 2021 are increased in relation to the previous year in absolute
figures, by €1.571 thousand and €1.303 thousand respectively.
The total inflows of the Group from operating activities shows a significant increase by € 3,906
thousand compared to the previous year, i.e. €4.370 thousand in the current year compared to
€ 464 thousand in the fiscal year 2020, which is mainly due to the extension of the time of the
suppliers’ payment and to a more effective management of stock.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
7
Net Profit before Tax: The increase in profitability compared to the previous year for the
Group and the Company is attributable to:
Parent ( Α )
Α. Increase in sales volume
1.074.334
Β. Decrease in gross profit margin %
-344.731
C. Increase in operating costs
-483.395
D. Increase of financial income
859.647
Ε. Decrease in other operating income
260.606
F. Increase in depreciation
-12.167
Total change in Profits before taxes
1.354.293
Subsidiaries Activities ( Β )
217.555
Total Change (A + B)
1.571.848
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
8
Gearing rate: The situation of the gearing rate on 31.12.2021 excluding IFRS 16 in € is as
follows:
Group
Company
31.12.2021
31.12.2020
V %
31.12.2021
31.12.2020
V %
Bank loans
0
0
0
0
minus: cash and investments
-19.408.259
-15.619.597
-16.534.863
-13.621.122
Net Debt
-19.408.259
-15.619.597
24,3%
-16.534.863
-13.621.122
21,4%
Equity
33.631.847
31.605.537
6,4%
31.566.517
30.210.640
4,5%
Gearing ratio
-57,71%
-49,42%
-52,38%
-45,09%
The gearing ratio appears to be increased compared to 2020 and is still negative. Cash plus
short-term investments, is higher than bank debt by € 16,5 million and € 19,4 million (Company
and Group respectively), a fact that certifies the healthy financial situation of the Company and
Group.
The adjusted gearing ratio rate taking into account the effect of IFRS is as follows:
Group
Company
31.12.2021
31.12.2020
V %
31.12.2021
31.12.2020
V %
Bank loans
227.761
345.053
213.609
311.874
less: cash and investments
-19.408.259
-15.619.597
-16.534.863
-13.621.122
Net Debt
-19.180.498
-15.274.543
25,6%
-16.321.255
-13.309.248
22,6%
Equity
33.631.847
31.605.537
6,4%
31.566.517
30.210.640
4,5%
Gearing ratio
-57,03%
-48,33%
-51,70%
-44,05%
Working Capital: The comparative figures for the working capital are as follows:
Group
Company
31.12.2021
31.12.2020
V %
31.12.2021
31.12.2020
V %
Current assets
35.135.014
31.113.993
32.016.435
28.752.210
Current liabilities
-5.821.009
-4.274.352
-5.295.384
-3.828.582
Working capital
29.314.005
26.839.641
9,2%
26.721.051
24.923.628
7,2%
The Group's inventories amounted to € 4,531 thousand compared to €4,618 thousand in the
previous year and represent 11,4% of the total assets, compared to 12,7% in the corresponding
period last year. The inventories of 2021 include stock in transit of €1,245 thousand compared
to €1,264 thousand of the previous year.
Respectively, the receivables from the customers of the Group increased compared to the
previous year by €403 thousand, meaning 3,8% while the turnover increased by 15,8%
compared to the previous year.
Group
Company
31.12.2021
31.12.2020
V %
31.12.2021
31.12.2020
V %
Inventory and Receivables from
Customers & Other receivables
15.726.755
15.494.396
15.481.571
15.131.088
Minus: Trade payable and other
short term liabilities
-5.716.492
-4.160.016
-5.198.814
-3.733.795
Net Working Capital
10.010.264
11.334.381
-11,7%
10.282.758
11.397.293
-9,8%
% of sales
44,1%
57,8%
49,6%
62,5%
Earnings per share: Earnings per share of the Company based on the weighted number of
shares amounted to €0,2433 compared to € 0,1435 of the previous year, showing an increase of
69,50%. The nominal number of shares on 31.12.2021 was 13.087.119.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
9
Capital expenditure: The Company’s investments amounted to € 55.792 in the period from
1.1.2021 to 31.12.2021, compared to € 216.654 of the respective comparative period.
Research and development costs: Within 2020, the Company incurred decreased costs by
18,02% compared to the previous year, meaning €179 thousand compared to €218 thousand.
Key Financial Ratios: The main financial ratios as of 31.12.2021 and 31.12.2020 were as
follows taking into account the effect of IFRS 16 :
Group
31.12.2021
31.12.2020
a. Financial Structure ratios
Current Assets / Total Assets
88,0%
85,4%
Equity / Total Liabilities
535,2%
655,9%
Equity / Fixed Assets
739,3%
637,0%
Current Assets / Current Liabilities
603,6%
727,9%
b. Performance and Efficiency ratios
31.12.2021
31.12.2020
EBITDA / Turnover
17,1%
15,8%
Gross Profit / Turnover
46,7%
48,2%
Turnover / Equity
67,5%
62,0%
Company
31.12.2021
31.12.2020
a. Financial Structure ratios
Current Assets / Total Assets
85,8%
83,2%
Equity / Total Liabilities
548,8%
693,1%
Equity / Fixed Assets
696,1%
610,0%
Current Assets / Current Liabilities
604,6%
751,0%
b. Performance and Efficiency ratios
31.12.2021
31.12.2020
EBITDA / Turnover
14,8%
14,0%
Gross Profit / Turnover
42,8%
44,7%
Turnover / Equity
65,7%
60,4%
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
10
Building Facilities: The Company maintains in Oreokastro, Thessaloniki, in a privately owned
space, offices, warehouse and a wholesale / retail store. Also, the Company maintains a rented
office and exhibition space in Attica. In Cyprus and Romania, the subsidiaries rent space for
their offices.
Personnel: The number of employees at the end of the audited fiscal year 2021 amounted to
72 employees in the Group, specifically 66 in the parent company and 6 in the subsidiaries in
Cyprus and Romania. At the end of the previous year, the number of employees in the Group
was 73 employees, specifically 68 in the parent company and 5 in the subsidiaries in Cyprus and
Romania.
Investments: The Group structure as at 31.12.2021 is as follows:
Name Consolidation Method % of parent
AS COMPANY CYPRUS LTD Full Consolidation 100%
Akadimias 21 Aglatzia
2017, Nicosia, Cyprus
AS KIDS TOYS S.R.L Full Consolidation 100%
Calea Bucurestilor – Νο 3A, Parter Camera P1
Otopeni, Romania
In the fiscal year ended 31.12.2021, the Consolidated Financial Statements drafted, included the
financial information of the subsidiaries of «AS COMPANY CYPRUS LTD» and «AS KIDS TOYS
S.R.L.».
The financial statements of the Group subsidiaries that are consolidated and their shares are not
traded on any stock market are posted at the following address:
https://ir.ascompany.gr/el/home/.
Β. IMPORTANT EVENTS OF 2021
1. General Meeting of Shareholders decisions
The General Meeting of the Company's Shareholders held on June 25
th
2021 took the following
decisions:
a) approved the Separate and Consolidated Annual Financial Statements for the fiscal year
1.1.2020 – 31.12.2020 (the Board of Directors’ Annual Report of management in a
consolidated form for the Company and its/ Group and the Annual Financial Report for the
Company and its Group, according to Law 4548/2018 and the International Financial
Reporting Standards); accompanied with the relevant reports of the Auditor.
b) approved the distribution of dividends for the fiscal year 2020, of a gross amount of
8,372537 per share. The gross amount was increased by the dividend corresponding to the
37.906 treasury shares held by the Company, which were not entitled to a dividend.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
11
c) approved the overall management of the Board of Directors for the fiscal year 1.1.2020 -
31.12.2020 according to article 108 of Law 4548/2018 and the discharge of the Auditors
for the same fiscal year, according to article 117 par. 1 case c ' Law 4548/2018.
d) approved the Remuneration Report for the members of the Board of Directors during the
year 1.1.2020–31.12.2020, according to article 112 of Law 4548/2018,
e) approved the remuneration and benefits to the members of the Board of Directors for the
fiscal year 1.1.2020 – 31.12.2020
f) With the Remuneration Committee’s assent, approved all remunerations already paid and
pre-approved all remunerations that will have been paid until the end of the financial year
2021 to the Members of the Board of Directors, up to the total amount of 500.000 €. It
also approved the advance remunerations to the Members of the BoD, in the same
framework of that of 2021, for the time period until the Ordinary General Meeting of the
year 2022, under the condition of the latter’s final approval. Furtherly, the BoD was
authorized to determine the exact amount of remuneration of each Member and the time
of its payment, both for the approved remunerations for the financial year of 2021 and for
the pre-approves ones for the financial year 2022.
g) The Shareholders were informed on the Audit Committee’s Annual Report, according to
article 44, par. 1 of Law 4449/2017, in which the description of the Company’s
sustainable development policy is included. The Annual Report of the Audit Committee
aims to inform the Shareholders on the Committee’s activity during the financial year
1/1/2020 -031/12/2020 and, as a result, there was no vote upon this specific item.
h) elected the Firm of Certified Auditors under the name "KPMG Certified Auditors SA" (AM
SOEL: 114), based in Athens, Stratigou Tompra 3, postcode: 15342, Agia Paraskevi), to
carry out the mandatory audit of the Financial Statements and the granting of the annual
tax certificate for the fiscal year 2021 (1.1.2021 – 31.12.2021),
i) approved unanimously the election of Mr. Michalis Zarkadis as an independent, non-
executive Member of the BoD, as a replacement of the resigning Member Mr. Petros
Iakovou, till the end of the current’s BoD mandate, after establishing the all the criteria
concerning his independency were satisfied.
j) approved the designation of the Audit Committee’s form, composition and term, according
to Law 4449/2017, as amended by Law 4706/2020 and the Capital Market’s Directives,
according to the propositions of the BoD
k) approved the amendment of articles 4 of the Company’s articles of association, on its
purpose, for the addition of new corporate objects.
l) approved the amendment of articles 10 and 12 of the Company’s articles of association,
regarding the composition and the constitution of the BoD, with the increase of its already
planned Members and the addition of a provision for a non -executive Vice – President as
well as an executive Vice – President.
m) approved the Suitability Policy of the Members of the Board of Directors, according to
article 3, para 3 of Law 4706/2020, as submitted by the Board of Directors.
m) approved the purchase of the Company of its own shares, up to a percentage of 5% on
the issued share’s capital, with a minimum acquisition price of 0.50 per share and a
maximum acquisition price 4,00€ per share, according to article 49 of Law 4548/2018.
2. Participation in exhibitions
Since March 2020, the completely different reality and the new circumstances developed on an
international level imposed drastic changes and adaptability, both to personal and Company
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
12
level. Because of COVID-19, the Annual Corporate ‘Exhibition did not take place in Greece. Our
communication with our clients, national and international and with our suppliers is made, when
necessary, remotely, by means of new technologies as well as state-of-the-art technical
equipment. In February 2021 the Company had a presence in the digital exhibition “The kid and
its toys – «Το παιδί και το παιχνίδι»’’, organized by the Association of Greek Industries and Cars.
3. Approval of Dividend Distribution for the fiscal year 2020
The Company’s Shareholders’ Ordinary Generally Meeting held on 25.06.2021 decided the
distribution of the dividend of the fiscal year 2020, of a gross amount of 0,08372537 euros per
share, increased by the dividend corresponding to the 37.906 own shares held by the Company.
According to the applicable tax law provisions (article 64 of Law 4172/2013, in its latest
applicable form), a tax of 5% was retained for the dividend’s gross value (with the exception or
modulation of this percentage of retainment for the Shareholders subject to specific provisions).
As a result, the net amount received by the Shareholders came up to the amount of
0,0795391015 euros per share. Beneficiaries of this dividend were the Company’s Shareholders
registered to the files of the Intangible Securities System (S.A.T), managed by the “Greek
Central Securities Depository S.A.”, on Thursday 29
th
July 2021 (Record Date), while the
distribution of the Dividend took place on Tuesday 3
rd
August 2021, through the paying Bank
"Eurobank Ergasias A.E.".
4. End of the own shares’ purchase program
On 21.06.2021 ended the program for the purchase of the own shares, approved by the
Ordinary General Meeting of the Shareholders of the 21
st
June 2019, according to article 49 pf
Law 4548/2018. The General Meeting had decided for the Company the acquisition, through the
Athens Stock Market and within a time period of twenty-four (24) months of the date on which
the aforementioned decision was taken, of a maximum of 656.301 shares, with a purchase price
range between 0.50€ per share (minimum limit) to 4.00€ per share (maximum limit) and the
authorization to the Company’s Board of Directors for the implementation of the aforementioned
decision.
In the context of the implementation of the aforementioned decision of the Shareholders’
General Meeting, over the whole period of the program’s duration, the Company has purchased
a total of 37.906 common own nominal shares, with an average acquisition price of 1,8381
euros per share, that correspond to a percentage of 0.28879 % of the share capital.
5. ENFIA –(Unified Property Tax) reimbursement
During the financial year 2020, in accordance with Law 4495 /2017 (settlement of illegal
buildings), the Company made a settlement of its square meters and declared the change of use
in the building of the premises in Oreokastro, Thessaloniki and subsequently submitted
amended E9 declarations for the years 2015-2020. Based on the amended declarations, the
Unified Property Tax (ENFIA) should be recalculated due to the modification of the square
measures and especially the separation of these from the old commercial space into
warehouses, shop and offices.
Because of the rejection decisions of the Thessaloniki Tax Office on the amendment declarations
of the years 2015-2019, the Company, on 22.09.2020, filed an Appeal to the Dispute Resolution
Direction (D.E.D.) of the Independent Public Revenue Authority, requesting their annulment.
On this appeal, a decision (No 59/20-1-2021) was issued by the Direction, in which the
Company's request was accepted and a tax refund (ENFIA) of a total amount of 205,843 euros
was issued, which was collected by the company on 7.04.2021.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
13
6. Group’s Digital Transformation
As part of its Digital Transformation, the Group is investing in new technologies, which is why it
chose SAP Business One as its new ERP. By the implementation of the new ERP, the Company
aims at increasing the efficiency and efficacy of its internal procedures, to serve clients in a
more optimized way, to make decisions quickly and efficiently, to support profitable
development. Its operational status is expected to commence in the 1st of January 2023. At the
same time, the Group, in 2022, continues to invest in digitalization by creating a B2B platform
which will commence operations in 2022.
7. Adoption of the Greek Code of Corporate Governance (June 2021)
In the context of the implementation of the current legislative framework and in accordance
with the specific provisions of Article 17 of Law No. 4706/2020 and Article 4 of the Decision of
the Hellenic Capital Market Commission (Decision 2/905/3.3.2021 of the Board of Directors of
the Hellenic Capital Market Commission), the Company has adopted, by the 16.7.2021 decision
of its Board of Directors, replacing the SEV Corporate Governance Code (2013), the Greek
Corporate Governance Code (June 2021) of the Hellenic Corporate Governance Council, with
deviations that are in line with its specific characteristics and make its management more
flexible and functional. These deviations, as defined in the Greek Corporate Governance Code,
are reported and justified in the annual report of the Company's Board of Directors and
specifically in the section concerning the Corporate Governance Statement.
8. Approval of the Company’s Amended Rules of Operation
In the context of the application of the provisions of article 14 of Law no. 4706/2020, the
Company approved, by the decision of its Board of Directors dated 16.7.2021, the amended
Rules of Operation of the Company, a summary of which has been published on the Company's
investment relations website https://ir.ascompany.gr/el
9. Continued effects of the restraining measures due to the pandemic
The measures taken by the Greek Government to mitigate the negative effects of COVID-19
continued throughout the first half of 2021, especially during the Easter period, which is the
second-best retail sales period in the industry, and restricted the normal operation of trade,
including the mandatory suspension of many enterprises that constitute a large part of our
customers. As for the second half of 2021, despite the impact of the energy crisis and pandemic,
the Company continued to operate smoothly.
10. Issuance of tax certificate for the year 2020
The tax audit of the Company for the year 2020, carried out by the Certified Public Accountant
in accordance with article 65A of Law 4174/2013, was completed on November 11, 2021, and
the corresponding Tax Compliance Report was issued with a conclusion "without reservation".
11. Decisions of the Extraordinary General Meeting
The Extraordinary General Meeting of the Company's shareholders, held on November 26, 2021,
decided the following:
1) approved the amendment of the article 16 of the Company’s Articles of Association, concerning
the remuneration of the BoD’s Members and especially the addition of the paragraph 5 of article
16, according to which it is permitted to grant a remuneration, consisting of a participation in the
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
14
profits of the financial year or accumulated profits of previous financial years, to the members of
the Board of Directors.
2) Approved the Company’s Remuneration Policy, which was drafted according to the Directive of
the EU regarding Shareholder rights (Directive EU 2017/828 of the European Parliament and the
Council of 17 May 2017) as has been transposed to the Greek legislation with the Law 4548/2018,
amended with Law 4587/2018 and is in force, as well as the provisions of Law 4706/2020 on
corporate governance.
C. FINANCIAL RISK MANAGEMENT AND FINANCIAL ASSETS
The activities of the Company and the Group are exposed to a number of risks. The risks and
uncertainties are described in detail in this Annual Financial Report for the year 2021.
The main risks that the Company and the Group are exposed to are:
- Exchange rate risk
- Interest rate risk
- Risk from commodity prices fluctuations and dependence for the supply of the goods.
- Credit risk and liquidity risk
- Insurance risk
Group Management aims to limit the potential negative impact of these risks on its financial
results and is constantly adapting to the new circumstances so as to maintain its activities
unaffected. Particularly:
(a) Foreign Exchange risk
This specific risk relates to the foreign exchange rate between euro and other currencies that
are related to the sales and purchases of the Company and the Subsidiaries.
The Group carries out a significant part of its imports from China which are invoiced in US
Dollars (USD). In 2021, purchases in dollars comprised 60,4% of the total purchases, compared
to 71,7% of the previous year's purchases. The value of imports in dollars (USD) is -3,3% lower
than the same period last year.
The Group maintains cash and investment products in dollars (USD), which cover 49,6% of the
imports value in dollars made within 2021.
The average foreign exchange rate between euro/dollar the last 3 years is as follows:
2019
2020
2021
Average exchange rate
1,1195
1,1419
1,1827
Annual change %
-5,21%
2,0%
3,6%
The Group in 2021 did not use financial instruments to reduce its exposure from foreign
exchange risk arising from the markets.
(b) Interest rate risk
The Group's companies have credit limits in banks, but due to the significant liquidity, they have
not resorted to bank lending in 2021 and all their needs in working capital are financed by their
own available cash.
The Group does not use derivative financial instruments to reduce its exposure to the interest
rate risk at the date of preparation of the Statement of Financial Position.
The Management considers that the aforementioned risk is not expected to significantly affect
the financial position of the Company and the Group.
(c) Risk from commodity prices fluctuations and dependence for the supply of the goods.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
15
Given that most of the toys traded by the Company and its Subsidiaries are imported from
China, any change in trade relations between China and the European Union, or any change in
the exchange rate between CNY/USD given that most of the of the Group's purchases are made
in USD, may affect positively or negatively, depending on the situation, the supply of customers
and sales of the Group, on the one hand, and on the other the Cost of Sales and Profitability.
The Company continuously monitors the financial data of the Chinese market by maintaining
long lasting relationships with its suppliers. The Company also participates in exhibitions in
China with the purpose of setting up a preferred suppliers list, with whom it could enter into a
business relationship.
(d) Credit risk and liquidity risk
This specific risk has to identify the risk that the Company or the Group may face if a single or
multiple customers fail to fulfil his contractual obligations. The Group and the Company, in order
to reduce their credit risk, apply a rational credit policy, taking into account any market
information collected from data banks for the credibility of their customers. The receivables of
the Group and the Company derive mainly from wholesales, while a significant part of the
receivables derive from large customers.
The financial position of its customers is continuously monitored by the Group and the Company
by controlling the volume of credits as well as the credit limits provided. If deemed necessary
additional collaterals and guarantees are obtained.
Due to the size of the Company's trading circuit, the potential credit risk for the Group currently
concerns mainly the Company, which handles total claims of above 83%.
Liquidity risk exists in the event where the Group cannot fulfil its financial obligations. As
appears in the financial statements, both at Company and at Group level, the liquidity risk is
fully controlled (see working capital ratio).
GROUP 31.12.2021 31.12.2020
Current Assets / Current Liabilities 603,6% 727,9%
Company 31.12.2021 31.12.2020
Current Assets / Current Liabilities 604,6% 751,0%
As far as the cash flow risk is concerned, it is noted that the Company and the Subsidiary in
Cyprus are adequately protected, due to: a) their positive cash flows as mentioned above, b)
the high credit rating from the banking institutions, c) the financial assets of the Company,
whose carrying amount in the financial statements does not deviate from their fair value, d)
maintaining liquid assets in banks with a good rating by international firms and e) placing the
Company's assets for investment in marketable securities.
The subsidiary in Romania as of 31-12-2021 had € 370.514 in cash and has secured a bank’s
funding line of € 200.000 which has not been used as of to date.
Due to the seasonality in the Group's products, a rational management of working capital is
required because in any other case additional financial costs may burden its results. The Group
has sufficient funding lines from various Banking Institutions.
The tables below summarize the maturities of the Company's and the Group's financial liabilities
at the date of preparation of the financial statements based on the payments terms resulting
from the relevant loan term agreements or the agreements with the counterparties.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
16
Group
Total
Up to 1 year
From 1 to 5 years
2021
2020
2021
2020
2021
2020
Accounts payable
3.063.528
1.858.475
3.063.528
1.858.475
0
0
Lease liabilities
227.760
345.053
104.518
114.336
123.242
230.717
Other short-term liabilities
2.652.964
2.301.541
2.652.964
2.301.541
0
0
Total
5.944.252
4.505.069
5.821.009
4.274.352
123.242
230.717
Company
Total
Up to 1 year
From 1 to 5 years
2021
2020
2021
2020
2021
2020
Accounts payables
2.793.998
1.858.475
2.793.998
1.858.475
0
0
Lease liabilities
213.608
311.874
96.570
94.787
117.038
217.087
Other short-term liabilities
2.404.816
1.875.320
2.404.816
1.875.320
0
0
Total
5.412.422
4.045.669
5.295.384
3.828.582
117.038
217.087
Based on the above facts, the Group's Management estimates that Cash and Short-term
Investments, in addition to the abovementioned liquidity capabilities, adequately offset the
aforementioned risks.
(e) Insurance Risk (non financial risk)
Given that most of the Company's merchandise is carried over from its warehouse to customers,
the Company should be covered by its exposure to counterparty risk by insuring its products.
For this purpose, the Company carries out insurance of its facilities by a consortium of insurance
companies, something that gives adequate insurance cover for all the main risks.
The subsidiaries of Romania and Cyprus do not have their own warehouse and the
transportation of goods takes place through the Company's warehouse facilities. The products
are insured during their transport, both to the warehouses of the Company, and until their
delivery to the subsidiaries’ customers.
Other risks
The demand of Company’s products is influenced by external factors such as the economic
uncertainty, the reduced consumption and the consumers preference for low-priced products. In
this context, the Company’s Management has made a selection of quality products, which are
attractive to consumers throughout the year.
The Company continues to proceed with short-term investments (mainly bonds) having first
evaluated the relevant ratings from international firms.
The geopolitical developments in the countries of Europe, in particular, create a climate of
uncertainty, resulting in a contraction of demand in the product category in which the Group
operates.
D. STRATEGY OF THE COMPANY AND PERSPECTIVES FOR THE YEAR 2022
In 2021 the Group was affected by the health crisis of COVID-19, which had a negative impact
on its financial results and especially in the first half. With the gradual return of the market to
normalcy, and with the assumption that the general geopolitical situation will not be further
aggravated, the Group expects a satisfactory growth rate compared to 2021.
The emphasis on the digital footprint, with a high focus on the dynamic development of its
products and customers is a key strategy of the Group. This strategy combines the e-commerce
along with the traditional model of development of our customers, utilizing digital media and
new technologies, in order to offer the consumer an omnichannel experience both offline and
online.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
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17
The financial figures of the subsidiaries in the total financial figures of the Group, are estimated
to have a positive contribution to the improvement of profitability for 2022. In 2021 the
subsidiaries achieved the highest profitability since their establishment and the Management has
estimated that similar prospects can be achieved in 2022.
The events in Ukraine, although they do not have a direct impact on sales, as the Group does
not make sales in these countries, have created temporary problems in the market in which we
operate.
Liquidity shielding and achieving profitable results are the main goal of Management for the year
2022. Given the high liquidity of the Group, the evaluation of investment opportunities and
expansion into new markets is still a key goal of Management.
The Management of the Group will continue to move guided by the long-term interest of its
shareholders which will ensure satisfactory returns and at the same time will maximize its value.
POSSIBLE IMPACT OF THE COVID-19 PANDEMIC
The COVID-19 pandemic affected economic activities around the world including Greece -
Cyprus and Romania. The Greek government, in its effort to reduce the negative consequences
of the COVID-19 pandemic, has taken measures that have limited the smooth operation of
trade, including the mandatory suspension of many businesses. That resulted to a distribution of
our Company’s products only to a limited number of distribution chains. Despite that, our
Company did not stop its operations and continued invoicing clients that did not suspended their
operations, responding to a demand well below normal levels.
Despite the fact that both revenue and profitability of the Group were significantly impacted and
especially in the first semester of 2021, after the opening of retail following the lifting of the
lockdown, our activities gradually returned to normal.
The Management of the Group, adopting all hygiene protocols, prepared and implemented a
plan for the reduction of the possible threat from COVID-19 and to ensure its business
continuity. It has implemented strict measures to ensure the health of its employees while
implementing and maintaining solutions for the remote work of its employees.
Following all the developments, the Company's Management has additionally focused on the
following main points:
• Security of Employees, Partners, Customers and Computer systems.
• Supply Chain for smooth and timely delivery of orders
• Retention of operating costs.
The Group’s Management closely monitors the developments around coronavirus (Covid-19) and
continuously assesses the implications for the smooth continuation of its activities. The
Management believes that its high cash reserves will not affect working capital requirements
and the going concern principle will not be affected.
Ε. RELATED PARTIES TRANSACTIONS
The definition of related parties includes, as defined by IAS 24, in addition to subsidiaries and
affiliates, also management and members of the Board of Directors.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
18
Transactions with related parties during the year 2021, i.e. intercompany sales / purchases and
intercompany balances, were all transactions within the scope of the Company's business
operations, and in market terms.
All related party business transactions were conducted only with AS COMPANY CYPRUS LTD and
AS KIDS TOYS S.R.L.. No intercompany transactions were conducted beyond those described
above.
Sales
2021
2020
AS COMPANY CYPRUS LTD
1.235.473
868.054
AS KIDS TOYS S.R.L
817.641
546.715
Total
2.053.114
1.414.769
Purchases
2021
2020
AS COMPANY CYPRUS LTD
0
0
AS KIDS TOYS S.R.L
0
63.186
Total
0
63.186
Other Transactions
2021
2020
AS COMPANY CYPRUS LTD
100.739
82.911
AS KIDS TOYS S.R.L
84.769
73.492
Total
185.507
156.403
Balances from trading transactions
Receivables
2021
2020
AS COMPANY CYPRUS LTD
795.798
584.494
AS KIDS TOYS S.R.L
454.897
376.929
Total
1.250.694
961.423
Payables
2021
2020
AS COMPANY CYPRUS LTD
0
0
AS KIDS TOYS S.R.L
0
0
Total
0
0
The remuneration to the Directors and the Company's management are analysed as follows:
Remuneration and Transactions of
Management
Group
Company
Short – term employee benefits
2021
2020
2021
2020
Salaries
580.181
647.360
504.931
573.349
Social Security cost
94.472
116.949
85.341
108.383
Total
674.653
764.309
590.272
681.733
Remunerations and Transactions of Board of
Directors Members
Group
Company
Short – term benefits
2021
2020
2021
2020
Salaries
332.160
278.800
307.160
260.800
Social Security cost
50.843
41.584
50.640
41.584
BoD Remuneration Stamp
3.686
3.130
3.686
3.130
Other fees
31.140
33.365
34.140
33.365
Total
420.829
356.879
395.626
338.879
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
19
No loans have been granted to the Board of Director members, or to Management (and their
families). There were no changes in the transactions between the Company and its related
persons which could have a material impact on the Company's financial position and
performance.
The fees paid during the fiscal year 2021 to the Chairman of the Board of Directors Mr.
Efstratios Andreadis, the Vice President of the Board of Directors Mrs. Anastasia Andreadou and
the non-executive members Mr. Ioannis Apostolakos, Theofilos Mehteridis and Apostolos
Petalas, concern remuneration of their position as members of the Board of Directors. The
Company does not pay remuneration to the Members of the BoD for their capacities as
members of the Audit Committee and the Remuneration and Nomination Committee.
Furthermore, the remunerations of the resigned non-executive member of the BoD Mr. Petros
Iakovou on the 25.06.2021 and the new member of the BoD, Mr. Michael Zarkadis, are paid in
relation to their capacity as members of the BoD. To the non-executive member of the Board of
Directors Theofilos Mehteridis fees were also paid for the provision of customs services, in the
context of his professional cooperation with the Company, based on a relevant evaluation of the
Board of Directors. The fees paid to the executive member of the Board of Directors Mr.
Theodora Koufou, concern the provision of dependent work services to the Company throughout
the year. The non-executive member Mr. Konstantinos Andreadis did not receive remuneration
from the Company, but from the subsidiary of Cyprus, to which he provides his services. The
management personnel who are not members of the Board of Directors, received remuneration
based on the employment contracts they have with the Company.
F. Corporate Governance Declaration
This Corporate Governance Declaration has been prepared in accordance with article 152 of Law
4548/2018, with the Law 4706/2020 and the relative decisions and directives of Hellenic Capital
Market Commission. It is included in the Annual Board of Directors Report for the fiscal year
2021, as a special part of it; and is available through the Company's website. The contents
below reflect the current legal and factual situation.
CONTENTS
Corporate Governance Declaration
I. Corporate Governance Rules
II. Corporate Governance Code
III. Corporate Governance Practices in addition to legislation requirements
IV. Deviations from the Corporate Governance Code – Justification
V. Description of the main features of internal audit and risk management systems of the
Company and Subsidiaries' regarding the process of preparing the financial statements
VI. Information required under Article 10 (1) (c), (d), (f), (h) and (i) of Directive 2004/25 /
EC of the European Parliament and of the Council of 21 April 2004 on takeover bids,
provided that the Company is subject to this Directive.
VII. Information on the operation of the General Meeting of Shareholders and its basic
powers as well as a description of the rights of shareholders and how to exercise them.
VIII. Information on the composition and operation of the Board of Directors
IX. Information on the composition and operation of the Audit Committee
X. Information on the composition and operation of the Remuneration and Nominations
Committee
XI. Diversity policy in administrative, management and supervisory bodies.
I. Corporate Governance Rules
The Company has adopted and applies the Corporate Governance Rules as they are valid from
the applicable legislation and the applicable international practices in connection with its
principles and corporate culture, aiming at functionality, efficiency and transparency towards the
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
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20
investing public and safeguarding interests of shareholders’ and all those who are in any way
connected with its operation.
II. Corporate Governance Code
In the context of the implementation of the current legislative framework and in accordance
with the specific provisions of Article 17 of Law No. 4706/2020 and the Decision 2/905/3.3.2021
of the Board of Directors of the Hellenic Capital Market Committee, the Company has voluntarily
adopted, pursuant to the decision of 15.7.2021 of its Board of Directors, replacing the Corporate
Governance Code of SEV (2013), the Greek Corporate Governance Code (June 2021) of the
Hellenic Corporate Governance Council, with deviations consistent with its specific characteristics
and making its management more flexible and functional (see below, under IV).
The adopted Code in its initial format (without deviations) is uploaded on the electronic address:
http://www.esed.org.gr/web/guest/code-listed
The BoD may approve amendments to the Code of Corporate Governance applied by the
Company. In this case, the amended text after its approval and/or the amendments will be
uploaded on the Company’s website.
III. Corporate Governance Practices in addition to legislation requirements
The Company does not apply additional Corporate Governance practices than those set out in
the adopted Governance Code and the applicable legislation.
IV. Deviations from the Corporate Governance Code – Justification
1. Clause of 1.20. of the Code of Governance stipulates that:
«The Members of the Board of Directors shall receive the agenda of the next meeting and
supporting documents in good time, i.e. before the expiry of the statutory deadlines, so that
they can study them, taking into account each time the complexity of the issues to be
discussed".
In the Board of Directors' rules of operation, which the Company composes in compliance with
clause 1.15. of the Code, it will be provided that the Members of the BoD may take decisions
without observing the formalities of the Law, provided that all the members of the Board of
Directors are present or participate and no member objects, even without a prior meeting,
under the conditions provided for in article 94 of Law 4548/18 and articles 14 and 15 para 4 of
the Company's Articles of Association. In practice, it has been proven that in many cases and if
the nature and scope of the matter to be discussed does not require prior information and study
on the matter, the Board of Directors may take decisions as described above, for reasons of
speed and flexibility.
2. Clause 2.2.12 of the Code of Governance stipulates that:
«The independent non-executive members shall not be less than one second (½) of the total
number of the members of the Board of Directors».
According to the current structure of the Board of Directors, it consists of eight (8) members,
out of which four (4) are executive members and four (4) are non-executive members. Of the
non-executive members, three (3) are independent non-executives. It is considered that at this
stage, with the structure and needs of the Company, the administration and management of the
affairs of the Company is served in the best possible way, without requiring the Board members
to be at least half independent non-executive Members.
3. According to clauses 2.2.21, 2.2.22 and 2.2.23 of the Code of Governance:
«2.2.21. The President is elected by the independent non-executive members. In the event that
the President is elected by the non-executive Members, one of the independent non-executive
Members is appointed either as Vice President or as Senior Independent Director».
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Annual Financial Report of the financial year from 1 January 2021
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«2.2.22. The independent non-executive Vice President or the Senior Independent Director, as
the case may be, has the following responsibilities: to support the President, to act as a liaison
between the President and the Members of the Board of Directors, to coordinate the
independent non-executive Members and to lead the evaluation of the President».
«2.2.23. When the President is an executive Member, the independent non-executive vice-
President or the Senior Independent Director shall not replace the President in his executive
duties."
The current Articles of Association of the Company (article 12) stipulate that the BoD elects a
President who is an executive Member, a non-executive Vice-President and an executive Vice-
President. In the event that the President is absent or unable to perform his duties, he shall be
replaced as President of the BoD, in his non-executive duties by the non-executive Vice-
President and in his executive duties by the executive Vice-President, and in the event that both
of them are absent or unable to perform their duties, by another member of the Board of
Directors in a similar capacity, to be determined specifically by the Board of Directors. The
adopted structure of the Board of Directors meets the requirements and definitions of the Law
and is deemed functional and adequate, both in terms of regulatory compliance and in terms of
flexibility and efficiency in the exercise of the respective responsibilities.
4. According to clauses 2.3.1., 2.3.2., 2.3.3. and 2.3.4 of the Code of Governance:
2.3.1 The Company has a framework for filling positions and succession of the Members of the
Board of Directors, in order to identify the needs for filling positions or replacements and to
ensure the smooth continuity of the management and the achievement of the Company's
purpose.
2.3.2 The Company ensures the smooth succession of the Board of Directors’ Members by
gradually replacing them in order to avoid a lack of management.
2.3.3 The succession framework takes into account in particular the findings of the evaluation of
the Board of Directors in order to achieve the required changes in its composition or skills and to
maximize the effectiveness and collective suitability of the Board.
2.3.4 The Company has also a succession plan for the CEO..."
In addition, clause 3.3.2 of the Code stipulates that:
"3.3.2 "The Board of Directors ensures for the Company an appropriate succession plan to
ensure the smooth continuity of the management of the Company's affairs and decision-making
after the departure of its Members, in particular executive and committee Members."
The Company, in the context of its compliance with the new institutional framework of Law No.
4706/2021 and the Circular 60/18.9.2020 of the Hellenic Capital Market Commission, the
General Meeting of the Company's Shareholders approved the Suitability Policy for the Members
of the BoD, by the decision of the General Meeting of the Company's shareholders No.
47/25.6.2021. The Company complies in principle with clauses 2.3.1, 2.3.2 and 2.3.3 of the
Code, regarding the existence of a framework for the replacement and succession of Board
members, in particular concerning the independent BoD Members, but does not have a
succession plan for the CEO, which will be drawn up by the Nomination Committee by June
2022, after evaluating all necessary parameters. If any issue of change, replacement of
members of the Board of Directors and of the CEO arises, it will be dealt with by the
Remuneration and Nominations Committee, which, having the powers of articles 11 and 12 of
Law no. 4706/2020 and applying the provisions of the that article, of Circular 60 of the Hellenic
Capital Market Commission and of the Suitability Policy adopted by the Company, identifies and
evaluates the candidates and submits its proposal to the BoD, for the persons it deems suitable
to become Members of the BoD. The Board of Directors is then competent, as part of its
constitution and delegation process, to appoint a Managing Director in accordance with the
Company's Articles of Association.
5. Clauses 2.4.3 and 2.4.4 of the Code of Governance stipulate that:
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
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"2.4.3 The remunerations of the executive Members of the Board of Directors and of the
Company’s senior management is linked to the size of the Company, the complexity of its
activities, the extent of their responsibilities, their degree of responsibility, the corporate
strategy, the Company's objectives and the realization of these, with the ultimate goal of
creating long-term value for the Company. The process for the developing the remuneration
policy is characterized by objectivity and transparency. The additional remuneration of the
Members of the Board of Directors should be linked to the achievement of certain objectives and
should depend on or be justified by the financial results of the Company based on its annual
financial statements.
2.4.4 Additional remunerations of Members of the Board of Directors who participate in
Committees for transparency and information purposes is shown distinctively in the
remuneration report and also in their approval of the general meeting".
The Company has provided in the Remuneration Policy adopted, the possibility of granting to
the executive Members of the BoD additional remuneration, based on predefined measurable
quantitative and qualitative criteria, both short and long-term, which will be linked to the
individual performance of the beneficiary and to the positive financial performance of the
Company and the Group. Based on the resolutions of the General Meetings, no such
remuneration has been approved and granted to date. All members of the BoD, in such capacity
and as Members of the Company's Committees, receive fixed remuneration, which is deemed by
the Remuneration Committee to be in line with the Company's financial situation and market
conditions, taking into account various factors, such as the specific duties of each member, the
need to allocate the time required to perform them, etc.
6. Clause 2.4.10 of the Governance Code stipulates that:
"2.4.10. The Board considers and links executive directors' remuneration to indicators relating to
ESG and sustainable development issues that could add long-term value to the Company. In this
case, the Board shall ensure that these indicators are relevant and reliable and promote the
proper and effective management of ESG and sustainable development issues."
The Company does not link the remuneration of the executive members of the Board of
Directors to the above indicators. Fixed remuneration is paid, based on the prevailing general
economic conditions and the financial situation of the Company itself. It is noted that the
Company is not obliged - due to its size - to publish non-financial statements, in accordance
with Regulation 2014/95/EU and Law 4548/2018.
7. Clauses 3.3.3, 3.3.4 and 3.3.5 of the Code stipulate that:
"3.3.3 The Board of Directors annually evaluates its effectiveness, the fulfillment of its duties, as
well as those of its committees”.
3.3.4 The Board of Directors collectively, as well as the President, the CEO and all other
Members of the Board of Directors are evaluated annually on the effective performance of their
duties. At least every three years this evaluation is facilitated by an external consultant”.
3.3.5 The evaluation process is chaired by the President in cooperation with the Nominations
Committee. The BoD also evaluates the performance of its President, a process which is chaired
by the Nominations Committee."
Considering that the provision of clause 3.3.5. of the Code takes as a given that the President of
the BoD is non-executive, while in the Company the President is executive and a non-executive
Vice-President is appointed, the latter will preside over the evaluation process, which will be
conducted in cooperation with the Nomination Committee.
8. Clauses 5.1. and 5.6. of the Code of Governance provide for the following, in accordance
with the provisions of article 14 para 3b of Law No. 4706/2020 and of article 151 of Law
4548/2018:
"5.1 Among others, the Company's operating regulations include the Company's sustainable
development policy, where applicable.[...]
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5.6 The Company shall adopt and implement a policy on ESG and sustainable development
issues (Sustainability Policy)".
According to the first subparagraph of para. 1 of article 151 of Law No. 4548/2018: "
1. Big
Société Anonyme Companies which constitute entities of public interest, within the meaning of
Annex A of Law No. 4308/2014, and which, at the date of closing their balance sheet, exceed
the average number of five hundred (500) employees during the financial year, shall include in
the management report a non-financial statement containing information, to the extent
necessary for an understanding of the evolution, performance, position and impact of its
activities, at least in relation to environmental, social and labour issues, respect for human
rights, the fight against corruption and issues relating to bribery”.
The Company, due to its size, does not fall into the scope of application of the above provision,
which leads to the obligation to adopt a sustainable development policy. Therefore, a deviation
from clause 5.1. of the Code is introduced, as it is not required for the Company's Operating
Regulations to include its sustainable development policy. The Company does not intend to
directly adopt and implement a policy on ESG and sustainable development issues (Sustainability
Policy), as per clause 5.6 of the Code, to the extent that it is not mandatory under the
applicable regulatory framework. The BoD will consider adopting such a policy in the future.
V. Description of the main features of the internal audit and risk management
systems of the Company and its Subsidiaries regarding the process of
preparing the financial statements.
An internal audit system is defined as the set of procedures that are implemented by the Board
of Directors, the Management and the rest of the Company's personnel, in order to ensure the
efficiency and effectiveness of the company's operations, the reliability of the financial
information intended to be used to the preparation of financial statements and compliance with
applicable laws and regulations. Its responsibilities include, between others, monitoring financial
information, evaluating and improving risk management and internal audit systems, as well as
verifying compliance with the statutory policies and procedures as defined in the Company's
Internal Rules of Operation and applicable legislation.
2021 was AS Company Cyprus Ltd’s sixth year of operation from its establishment in May 2016.
The internal audit and risk management systems are currently exercised on a case by case basis
by executives of the Company or external associates who assist the Management of the
Subsidiary.
AS KIDS TOYS S.R.L. in the year 2021 covered its fourth year of operation, while the company’s
sales activity officially began in the 4
th
quarter of 2018. The internal control and risk
management systems are currently exercised by Company executives or external associates who
assist the Management of the Subsidiary.
The subsidiaries cooperate with local external partners for the execution of current accounting
tasks and the provision of corresponding services. For reasons related to the flexible
coordination of the central management and financial control of the Group, the Company, based
on relevant contracts signed between it and its subsidiaries, provides accounting support
services to them with its Accounting Department.
The Company and its Subsidiaries apply the following internal control procedures for the
preparation of the financial statements:
● The Accounting Department carries out periodic reconciliations on receivables, liabilities,
cash and short-term investments
● Uniform budgets for the following year are prepared and approved by the Board of
Directors of the company with the cooperation of the subsidiaries’ managers.
● Summary profit and loss statements for the financial position are prepared monthly based
on IFRS standards and uniform accounting applications and procedures enforced.
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● The subsidiaries submit their six-month and annual statement of financial position and
income and comprehensive Statement of Profit or Loss according to specific closure and
audit procedures
● The Accounting Department carries out the consolidation entries based on IFRS standards.
● The Financial Statements of the Company and the Group are audited by independent
statutory auditors the work of whom are monitored by the Audit Committee. The plan of
the BoD’s Financial Statement is monitored and audited by the Audit Committee, which in
turn makes its recommendations to the BoD of the Company regarding its approval.
● There are security safeguards related to the security of the information systems used and
classified access to data according to the hierarchical level and the user's tasks.
● There is regular communication between the Auditors, the Management and the Audit
Committee, as well as between the Audit Committee and the Chief Financial Officer and the
Head of the Internal Audit Unit.
● The Board of Directors confirms the fulfilment of the independence requirements of the
independent Members of the Board of Directors at least annually and in any case before
the publication of the annual financial report.
Security measures are in place, applied by, the Company’s and the Group’s Management, from
the one hand, in order to perform their corporate functions and by the Audit Committee of the
Company, on the other hand, concerning the Internal Audit System based on the Internal Rules
of Operation.
VI. Information required under Article 10 (1) (c), (d), (f), (h) and (i) of Directive
2004/25 / EC of the European Parliament and of the Council of 21 April 2004 on
takeover bids, provided that the Company is subject to this Directive.
The Company does not fall within the scope of this Directive.
VII. Information on the operation of the General Meeting of Shareholders and its
basic powers as well as a description of the rights of shareholders and how to
exercise them.
General Meeting Mode of Operation
The General Meeting is held under the terms of Law 4548/2018 and the Company's Articles of
Association, published in its current version on the Company's website
https://www.ascompany.gr/
The BoD prepares and publishes draft resolutions in due time and ensures the careful
preparation and smooth conduct of the General Meeting of shareholders. In this context, it
facilitates the effective exercise of shareholders' rights, who can easily be informed about issues
related to their participation in the General Meeting, including the agenda items and their rights.
In the General Meeting of shareholders all information and clarifications are provided, in the
context of a meaningful dialogue between Management and shareholders. The Company posts
on its internet site at least twenty (20) days (excluding Repeat Meetings or Meetings which are
equal to Repeat Meetings) before the General Meeting information on:
● The date, time and venue of the General Meeting of Shareholders,
● the basic rules and practices of participation, including the right to introduce items on
the agenda and submit questions, as well as the deadlines within which such rights may
be exercised,
● voting procedures, proxy terms and forms used for proxy voting,
● the proposed agenda for the meeting, including draft decisions for discussion and
voting, as well as any accompanying documents,
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● the proposed list of Nominees for the Board of Directors and their CVs (if there is a
subject of election of members) and
● the total number of shares and voting rights at the date of the meeting
● any other information necessary according to the applicable legislation.
At least the President of the Board of Directors of the Company, the Vice-President, the Chief
Executive Officer, the Head of the Audit Committee, the internal auditor and the regular auditor
are present at the General Meeting of Shareholders in order to provide information on issues of
their competence for discussion, and upon questions or clarifications requested by shareholders.
The President of the General Meeting makes sure that there will be sufficient time for accepting
questions from shareholders and for responding to them in the best possible way.
Basic Responsibilities of the General Meeting
The General Meeting of the shareholders of the Company is the supreme body of the Company
and is competent to decide on all the Company's matters. The decisions of the General Meeting
binds all shareholders including those who are absent or those that disagree with these
decisions.
The General Meeting of Shareholders of the Company is solely responsible for deciding on all the
matters that are provided for in paragraph 1 of article 117 of L. 4548/2018 (for the amendments
of the Articles of Association among others), subject to the exceptions listed in paragraph 2 of
that Article.
Rights of shareholders and ways of exercising them
In the General Meeting of the Company one is entitled to participate and vote if the shareholder
appears in the records of the authority in which the shares of the Company are held. The
exercise of those rights does not entail the pledge of the shares of the beneficial owner or the
observance of a similar procedure. Shareholders entitled to participate in the General Meeting
may be represented by a person whom they have legally authorized. Each share provides with
all the rights provided by the Law as it applies every time, but also by the Company's Articles of
Association.
VIII.Information on the composition and operation of the Board of Directors
Suitability Policy for the Members of the Board of Directors
The Company has adopted a policy on the suitability of the Members of the BoD, which has
been approved by the Board of Directors at its meeting of 16.7.2021 and includes all the
provisions of article 3 of Law 4706/2020. The policy is published on the company's website
https://www.ascompany.gr/
General principles concerning the selection, replacement or renewal of the mandate
of the Members of the Board of Directors, in accordance with the Suitability Policy
1. The Board has a sufficient number of members and an appropriate composition.
2. The Company seeks to staff the Board of Directors with persons of integrity and reputation.
3. BoD Members must possess the skills and experience required by the duties they undertake
and their role on the BoD, while having sufficient time to perform their duties.
4. When selecting, renewing the mandate and replacing a BoD Member, consideration shall be
given to the assessment of individual and collective suitability.
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5. Candidate BoD Members shall, among other things, be familiar with the Company's culture,
values and general strategy, prior, if possible, to taking up the position.
6. The Board of Directors and the Nomination Committee shall monitor on a continuous basis
the suitability of the members of the Board of Directors, in particular to identify, in the light of
any relevant new event, cases in which it is necessary to re-evaluate their suitability. In
particular, a re-evaluation of suitability is carried out in the following cases: a) when doubts
arise regarding the individual suitability of the Board members or the suitability of the
composition of the body, b) in case of a significant impact on the reputation of a Board member,
c) in any case of occurrence of an event that may significantly affect the suitability of the Board
member, including cases in which the members do not comply with the Company's Conflict of
Interest Policy.
7. The Board of Directors identifies as early as possible the need to fill positions or replace
members of the BoD and, in cooperation with the Nomination Committee, draws up a
succession plan to ensure the smooth continuation of the management and the achievement of
the Company's purpose. The succession plan shall take into account the findings of the
evaluation of the Nomination Committee and the BoD in order to achieve the required changes
in composition or skills and to maximise the effectiveness and the collective suitability of the
Board.
The Policy includes detailed reference to individual and collective assessment criteria, as well as
diversity criteria.
Composition of the Board of Directors
The Board of Directors exerts the management of corporate affairs for the benefit of the
Company and all its shareholders, ensuring the implementation of the corporate strategy and
the fair and equal treatment of all shareholders, including minority and foreign shareholders. It
is responsible to decide on any matter concerning the Company, other than those for which the
General Meeting of Shareholders is responsible by the Law or by the Articles of Association.
The Company is governed by a Board of Directors, which consists of at least seven (7) and up to
eleven (11) members. A legal entity may be assigned as a Member of the Board of Directors,
which is required to designate a natural person for the exercise of its powers, as a member of
the Board of Directors. The members of the Board of Directors are elected by the General
Meeting of the shareholders of the Company for a three (3) year term.
The General Meeting may also elect deputy members in the event of the resignation or death of
the persons elected by it or for any other reason who have lost their status as members of the
board of directors. If an deputy member has not been elected and the position of a Director is
vacant due to death, resignation for any reason, disqualification or legal incapacity, the other
Directors may, if there are at least three (3), elect a temporary replacement to fill the vacancy
for the term remaining in the vacated director. The decision of the election is made public and
announced by the board of directors at the next General Meeting, which can replace the elected,
even if no relevant item is on the agenda. If the above additional election of a director by the
Board of Directors is not approved, the General Meeting immediately elects another Director.
The current Board of Directors consists of eight (8) members, of which four (4) are executive
and four (4) are non-executive members. From the non-executive members, three (3) are
independent, fulfilling the requirements set by L. 4706/2020 on Corporate Governance.
The persons who make up the current BoD are:
1. Efstratios Andreadis of Konstantinou, executive member of the BoD, President of the BoD
and CEO.
2. Anastasia Andreadou, nee Angelos Kozlacidis, executive member of the BoD, Vice-President
of the BoD.
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3. Apostolos Petalas of Dimitriou, independent non-executive member of the BoD, Non
Executive Vice-President of the BoD
4. Theodora Koufou of Dimitriou, executive member of the BoD.
5. Konstantinos Andreadis of Efstratios, executive member of the BoD
6. Michail Zarkadis of Spyridon, independent, non-executive member of the BoD
7. Ioannis Apostolakos of Georgios, independent non-executive member of the BoD
8. Theofilos Mechteridis of Ioannis, non-executive member of the BoD
The mandate of the BoD, as provided for by the General Meeting of 21.6.2019, is for three years
and ends in 21.06.2022, being automatically extended until the convening of the Annual
Ordinary General Meeting of 2022, if it takes place after 21.06.2022.
It is noted that, by the decision of the Company’s Annual General Meeting dated 25.6.2021, Mr.
Michael Zarkadis was elected as an independent non-executive member of the Board of
Directors, in replacement of the resigned member Mr. Petros Iakovou, who held this position
and capacity until the end of the term of the current Board of Directors, after it was established
that he met the criteria of independence, according to article 4 of Law 3016/2002 and article 9
of Law 4706/2020. The mandate of the above member will expire with the mandate of the other
members of the Board, as stated above.
Also, by the BoD’s decision of 1.2.2022, Mr Konstantinos Andreadis was appointed as an
executive member of the Board, while until the above date he had the status of non-executive
member.
Short Curriculum Vitae of Board Members and of the key executive Members of the
BoD and of the Committees:
1) Efstratios Andreadis, President, executive member of the BoD and Chief Executive
Officer.
Born in 1957 in Vienna, Austria. He studied Mathematics at Universita Degli Studi Di Perugia,
Italy. He speaks English and Italian. He has been active in commerce since 1980. Along with the
Executive Vice-President of the BoD, Mrs Anastasia Andreadou, they proceeded, in 1990, in the
incorporation of AS Company, in which he holds, since then, the position of the President of the
BoD and the CEO.
2) Anastasia Andreadou, executive Vice-President and executive member of the BoD
Born in 1950 in Thessaloniki and studied Accounting and Economics in Svarna School, in
Thessaloniki. She has been active in commerce since 1982. Along with the President of the BoD,
Mr Efstratios Andreadis, they founded “AS Company S.A.” in 1990.
3) Apostolos Petalas, Non-Executive Vice-President of the BoD and Independent
Non-Executive Member of the BoD, President of the Audit Committee and of the
Remunerations and Nominations Committee
Born in 1961 in Soufli, Evros. He holds a Business Administration degree from Piraeus
University, certified in special programs: Leadership, Executive Management, Economics and
Strategic Analysis, in the Colgate Palmolive and PepsiCo internal training system in the USA.
From 1985 to 1990 he worked at Colgate Palmolive in various sectors of Financial Services.
From 1990 to 1999 he held management positions in the financial department of PepsiCo Hellas
and until 2007, he was the President and CEO of PepsiCO in Greece. He is currently the Chief
Executive Officer of the listed company “Fourlis A.E. Holdings”. He is also Vice-President of the
Association of Chief Executive Officers (ACEO) and Member of the BoD of the Association of
Business and Retail sales of Greece (HRBA).
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4) Theodora Koufou, Executive Member of the BoD, General Manager
Born in 1972 in the United States. She holds a BSc in Finance from New York University and a
postgraduate Diploma in Economics from Pace University. She works for the Company since
September 2001. She has been appointed General Manager of AS Company S.A. on July 2015,
and was also the Internal Auditor of the Company. Prior to taking up her duties at AS Company,
she worked in the U.S. at John Kaldor Ltd, Angelika Films and others companies.
5) Konstantinos Andreadis, Executive Member of the BoD
Born in 1980 in Thessaloniki. He studied Business Administration at Kingston University-ICBS. He
also holds a postgraduate diploma (MA) in Marketing Management from Middlesex University.
From 01.12.2004 to 30.09.2016 he was worked in the Company’s Sales Department. Since
25.05.2016 and until today he holds the position of Director in the subsidiary company of "AS
COMPANY S.A." in Cyprus, with the name "AS Company Cyprus Ltd.
6) Michail Zarkadis, Independent, Non-Executive Member of the BoD, Member of the
Audit Committee and of the Remuneration and Nominations Committee
He was born in 1960 in Athens. He studied Business Administration at the Athens University of
Economics and Business Administration and holds an Executive MBA from the same University.
He is registered with the Economic Chamber of Greece as a Class A accountant. He has served
as a senior financial and management executive at "Mattel - S.A.V.E.E." (1989-2001) and 'Mattel
- S.E.E./M.E.A.'. (2001 - 2013). From 1986 to 1988, he also worked as an auditor at the auditing
firm PWC. From 2014 to 2017 he was a co-founder and partner in the business consulting firm
"DEZAVOU ASSOCIATES-OIKONOMIKOI SUMVOULOI I.K.E." and from 2017 to this date in the
company "SAVE2GROW - BUSINESS CONSULTANTS I.K.E.". He has served as a member of the
Board of Directors of Mattel S.A. (Executive Director - CFO 1991 - 2013), Member of the Board
of Directors of Mattel Italy SRL for two years; Member of the Mattel Global Council of CFOs.
7) Ioannis Apostolakos, Independent Non-Executive Member of the BoD, Member of
the Audit Committee
Born in 1964 in Athens. He studied Business Administration at ASOEE and holds an MBA from
the University of Cardiff, Wales. From 1991 to 2004, he held management positions in the Credit
Control and Investment Banking divisions of the Bank “Trapeza Ergasias” (now EFG Eurobank
Ergasias) and the Piraeus Bank Group. From 2004 to 2014, he has worked as an executive in
banks, in financial services companies, commercial and industrial companies. He has served as a
member of the Board of Directors of companies in the financial sector, as well as other listed
and non-listed companies, and as a member of the Audit Committee of a listed company. He is
Administrator in the Company ANCIENT OLYNTHEF IKE and Director of Deloitte. Up until 2018,
he was President of the Company’s Audit Committee, in which he is still a Member.
8) Theofilos Mechteridis, Non-Executive Member of the BoD, Member of the Audit
Committee and of the Remuneration and Nomination Committee
Born in 1966 in Thessaloniki. He studied at the School of Management and Economics of the
Department of Business Administration T.E.I. of Kavala. He received his degree as a customs
agent in 1989 and since then he has been practicing this profession until today.
The independent non-executive members, as provided for by the Board of Directors, maintain
their independence at the time of drafting of the present in accordance with the independence
criteria of Law 4706/2020 and have submitted to the Company relevant independence
declarations.
As shown above, the members of the Board of Directors have the skills and experience required
for the exercise of their duties and meet the requirements set out in the Suitability Policy, the
operating model and the Company's strategy.
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Chief Management Staff
Panayiotis Papaspyrou, Chief Financial Officer
He was born in 1960 in Athens. He studied at the University of Piraeus - Department of
Business Administration, at the University of Manchester U.K - Accounting & Finance and holds a
Master's degree from the University of Lancaster U.K - Accounting & Finance. He has worked as
a Financial Director in Greece and abroad for 20 years [Internal Auditor at Banque Nationale de
Paris, Nutricia (Dutch listed Company in baby food), IMI (English listed Comapny in the soft
drinks dispensing machinery sector, 3E (bottler of Coca Cola products) & Misko - Barilla (Italian
company in the food industry). Since 2000, he has been working as a financial consultant in
support of the Finance Departments of large companies. The professional cooperation with the
Company started from the year 2000.
Here is a description of the main responsibilities of the President of the BoD and Chief Executive
Officer, according to the current BoD’s constitution:
- Determines the issues on the agenda and convenes the BoD, ensures the good organization
of his work and directs its Meetings.
- Represents the Company in court and out of court.
- Exercises all the powers that belong to the BoD by the Articles of Association and the law,
which may delegate to another member by proxy.
As C.F.O., he monitors the achievement of the objectives and manages the Company's daily
matters, always in accordance with the decisions of the General Meeting and the BoD, ensuring
the orderly and efficient operation of the Company.
Members of the BoD and key management personnel holding Company shares
As of the date of the drafting the Corporate Governance Statement, the members of the Board
of Directors and key management personnel who held shares of the Company are the following:
(a) Efstratios Andreadis, President of the BoD and CEO: holds 4.413.652 shares, which
represent 33,625% of the Company’s share capital.
(b) Anastasia Andreadou, Executive Vice-President of the BoD: holds 4.179.804 shares, which
represent 31,844% of the Company’s share capital.
(c) Apostolos Petalas, Non-Executive Vice-President of the BoD: holds 5.501 shares, which
represent 0,0419% of the Company’s share capital
(d) Theodora Koufou, Executive Member of the BoD: holds 793 μετοχές, which represent
0,006% of the Company’s share capital
(e) Konstantinos Andreadis, Executive Member of the BoD: holds 129.421 shares, which
represent 0,986% of the Company’s share capital
(f) Panagiotis Papaspyrou, Chief Financial Officer: holds 8.040 shares, that represent 0,0613%
of the Company’s share capital.
How the Board of Directors operates
The Board of Directors meets at the headquarters of the Company or at the branch office in
Athens, or anywhere in Greece or abroad, in accordance with the terms of the Law and the
Articles of Association, or else by teleconference. It is convened by the President or his deputy,
or whenever at least two (2) of the Directors ask for it. The Board of Directors may meet by
teleconference.
The Board of Directors may, by a decision taken by a simple majority of its Members present
and/or represented, delegate all or part of its powers, including the power of representation and
commitment of the Company, with the exception of those exercised collectively, to one or more
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persons, members or non-members of the Board of Directors or third parties, determining at the
same time the extent of the aforementioned delegation.
The Board of Directors is in quorum and holds a valid meeting if half (1/2) plus one Director are
present or represented in it. To find the corresponding quorum number, the fraction that may
arise is omitted. The Board of Directors decides validly by an absolute majority of the
Representatives present or represented, except for the cases provided for in the Articles of
Association or the Law provide for increased majority. In case of a tie, the vote of the Chairman
of the Board prevails. In case of personal issues, the Board of Directors decides by secret vote
by ballot. Each director has one vote, while when it represents an absent director it has two (2)
votes. A director who is absent for any reason at a meeting is entitled to be represented by
another director, but in no case a member of the board can represent more than one directors.
During 2021, the Board of Directors of the Company held twenty six (26) meetings. The table
below shows the attendance of each member to the meetings of the Board:
Member
Attending
Meetings
Efstratios Andreadis, President & CEO, executive member
26
Anastasia Andreadou, Vice-President, executive member
26
Theodora Koufou, executive member
26
Michail Zarkadis, independent non-executive member (since his election as a
Member of the BoD)
14
Ioannis Apostolakos, independent non-executive member
26
Apostolos Petalas, independent non-executive member
26
Konstantinos Andreadis, non-executive member for the year 2021
26
Theofilos Mechteridis, non-executive member
26
Petros Iakovou, independent non-executive member (till his replacement)
12
The above table shows that all members of the Board of Directors, in its respective composition,
participated in all its meetings.
IX. Information on the composition and operation of the Audit Committee
The Company, complying with the requirements of L.4449/2017, as every other Company listed
in the stock exchange ("public interest entity") has an Audit Committee made up of 4 members
of the Board of Directors, out of which 3 are independent non-executive members and 1 non-
executive member. The Audit Committee’s bylaws are published on the Company’s website
https://www.ascompany.gr/.
The Audit Committee of the Company consists of the following members of the Board:
a) Ioannis Apostolakos, Independent Non-Executive Member of the BoD
b) Michael Zarkadis, Independent Non-Executive Member of the BoD
c) Theofilos Mechteridis, Non-Executive Member of the BoD
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d) Apostolos Petalas, Independent Non-Executive Member of the BoD
It is noted that the member of the Committee Michael Zarkadis was elected to this position in
replacement of the resigned member Peter Iakovou, who also served as its Chairman, by the
decision of the Board of Directors of the Company dated 25.6.2021. On the same day, the
Committee was reconstituted to include its new member and Mr. Apostolos Petalas was elected
as its Chairman.
The Committee includes three members who have knowledge of accounting and auditing,
Messrs. I. Apostolakos, A. Petalas and M. Zarkadis.
The term of the Audit Committee under Article 44 of L.4449/2017 is three years. The term of
this Audit Committee commenced on 21.06.2019 and expires on 21.06.2022 and is automatically
extended until the Annual General Meeting of the year 2022, if it is held after 21.06.2022.
The renewal of the term or the modification of the composition of the Audit Committee is always
made by decision of the General Meeting of the shareholders of the Company. The Audit
Committee monitors and supervises the conducting of the Internal Audit by the Internal Audit
Department.
The Audit Committee meets on a regular basis 4 times a year after the completion of the
quarterly Internal Audit Reports as well as extraordinarily, should the circumstances arise. Two
meetings take place before the publication of the financial statements for the first half of the
year. At the meetings, the findings of the audit work of the bodies of the supervisory authorities
and the Internal Audit Department are evaluated and utilized.
The Audit Committee shall be convened by its Chairman. The Committee shall meet in quorum
when at least three of its members are present. Decisions are taken by the majority of its
members.
The Report of the Audit Committee, drawn up by the Chairman of the Committee, for the
Shareholder’s Ordinary General Meeting of 2022, is attached hereto:
Report of the Audit Committee of the year 2021 pursuant to article 44 of
L.4449/2017
To the Ordinary General Meeting of the Company’s Shareholders of the year 2022
Messrs. Shareholders,
In my capacity as Chairman of the Company’s Audit Committee, I briefly present to you the
Report of the Committee for the year 2021 (01.01.2021-31.12.2021), in order to demonstrate its
contribution and aid to the Company's compliance with the provisions of the current legislative
and regulatory framework.
1. Purpose
The primary purpose and main concern of the Audit Committee is the support and assistance of
the Board of Directors in the exercise of its duties regarding financial information, internal audit,
regulatory compliance and corporate risk management.
2. Composition – Rules of Operation
The Company, in accordance with the provisions of Law 4449/2017, as every Company which is
listed on the stock exchange (“public interest”), has an Audit Committee, which is a Committee
of the Board of Directors, comprised of 4 members of the Board of Directors, out of which 3 are
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Annual Financial Report of the financial year from 1 January 2021
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independent Non Executive Members and 1 Non Executive Member. The Audit Committee’s
Rules of Operation are published in the Company’s website: https://ir.ascompany.gr/el/home.
The Company’s Audit Committee is comprised of the following members of the Board of
Directors:
a) Ioannis Apostolakos, Independent Non Executive Member of the Board of Directors
b) Michael Zarkadis, Independent Non Executive Member of the Board of Directors
c) Theofilos Mechteridis, Non Executive Member of the Board of Directors
d) Apostolos Petalas, Independent Non Executive Member of the Board of Directors
It is noted that the Committee member Mr. Michael Zarkadis was elected in this capacity in
replacement of the resigned member Mr. Petros Iakovou, who served as its Chairman, pursuant
to the Decision of the Company’s Board of Directors dated 25.06.2021. Mr. Petros Iakovou
served as a member and Chairman of the Audit Committee until 25.06.2021. On the same day,
the Committee was reconstituted with its new member and Mr. Apostolos Petalas was elected as
its Chairman. The Audit Committee’s term coincides with the term of the present Board of
Directors, which ends on the 21st of June 2022, or until the date of the Ordinary General
Meeting of year 2022 is convened.
The members of the Audit Committee meet the criteria set out in article 4 of Law 3016/2002
and article 44 of Law 4449/2017, i.e.:
(a) they do not hold shares of more than 0,5% of the Company’s share capital, and
(b) they do not maintain any sort of dependency relationship with the Company or related
persons thereof, as it (dependency relationship) is defined in the provisions of the
aforementioned article 4 of Law 3016/2002.
The members of the Audit Committee have been proven to have sufficient knowledge in the
field in which the Company is engaged, as they have participated in its management for a
satisfactory period of time, having acquired as a result in-depth knowledge of the organization,
management and operation of the Company and its individual management. Of the above
members, Messrs. Ioannis Apostolakos, Apotolos Petalas and Michael Zarkadis have sufficient
knowledge in matters of auditing and accounting, a fact which ensures the smooth and efficient
organization and operation of the Committee. Pursuant to the decision of the Audit Committee
dated 25.06.2021, it was determined that the member of the Committee who will be obliged to
attend the meetings of the Committee concerning the approval of the financial statements, will
be the Chairman of the Committee Mr. Apostolos Petalas.
The Audit Committee has Rules of Operation, as they were amended and approved in
16.07.2021. The Rules are available at the Company’s website https://ir.ascompany.gr/el/home.
3. Meetings – Participation frequency
During the fiscal year 2021 (01.01.2021-31.12.2021), the Audit Committee had eight (8)
meetings. The participation of its members is presented at the following table:
Audit Committee member
Participation in meetings
Petros Iakovou, independent non executive member (until his
replacement)
3
Ioannis Apostolakos, Independent Non Executive Member
8
Apostolos Petalas, Independent Non Executive Member
8
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Michael Zarkadis, Independent Non Executive Member (from his
election)
5
Theofilos Mechteridis, Non Executive Member
8
From the table above, it is derived that all members of the Committee, in respect of its
composition from time to time, participated in every meeting of the Committee.
The Chairman of the Audit Committee decides upon the frequency and the timetable of its
meetings. Depending on the subject of the meetings and on an ad-hoc basis, the Certified
Auditors- Accountants, the Internal Auditor, as well as Managerial Staff of the Company upon
which the management and handling of corporate affairs, cases and operations have been
delegated, may be invited to participate, in order to provide necessary information and
clarifications.
4. Committee Activities
In particular, with regard to the Committee’s activities during the year which ended on the 31st
of December 2021:
A. Financial information process
The Audit Committee was mainly concerned with:
• The process and schedule of compiling financial information on behalf of the Management. For
this purpose, it held meetings with the competent executives of the Financial Department of the
Company, which are in charge of the preparation of the Financial Reports (Annual and Bi-
Annual).
• The information from the Certified Auditor/ Accountant on the annual program of mandatory
audit before its implementation. The meeting took place on 22.12.2021. For this purpose, the
mandatory audit program was evaluated and it was assured that it will cover the most important
areas of audit, taking into account the main areas of business and financial risk of the Company.
The members of the Committee, during 2021, were constantly in touch via telephone and
electronic communications (e-mail) with the Auditing Company K.P.M.G. in order to receive
information on the drafting of annual and bi-annual financial statements.
• The monitoring, evaluation and examination of the process of preparation of financial
information, i.e. the mechanisms and systems of flow and dissemination of financial information
as well as other disclosed information (stock market announcements, press releases, etc.).
Specifically, it was found that the financial statements reasonably present the financial position
of the company and the group, their financial performance and their cash flows for the year
ended in accordance with International Financial Reporting Standards (IFRS), as these have
been adopted by the European Union. The observance of these publicity rules was also verified,
as well as the possibility of direct, unhindered and uninterrupted access thereof.
• The examination of the most important issues and risks that may have an impact on the
Company's financial statements. In particular, it considered:
- The effects of the pandemic on the financial results of the company and the measures taken
by the company.
- The risk of exchange rates related to the sales and purchases of the Company and its
Subsidiaries in foreign currency.
- The risk of fluctuations in commodity market prices and dependence on the supply of these
goods from the Chinese market.
- Credit and liquidity risk in the event that customers or clients do not meet their contractual
obligations mainly due to the effects of the Covid-19 pandemic.
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- The monitoring and analysis of risks and management systems regarding information security
systems.
B. Procedures for internal audit and risk management systems
The Audit Committee was mainly concerned with:
• Monitoring and updating the Company’s Rules of Operation, which were approved by the
Board of Directors of the Company in 16.07.2021. In particular, all members of the Audit
Committee along with the rest of the members of the Board of Directors, the competent
managerial staff and the legal department participated in the amendment of the main text and
the schedules of the Company’s Rules of Operation. Within the schedules the Policies,
Procedures and the Rules of Operation of the individual Units and Committees are developed
and recorded (Schedules 1-17):
No.
Text
1
Suitability Policy of the Members of the BoD
2
Rules of Operation of the Audit Committee
3
Rules of Operation of the Remunerations and Nominations Committee
4
Rules of Operation of the Internal Audit Department
5
Rules of Operation for Risk Management
6
Rules of Operation for Regulatory Compliance
7
Rules of Operation of the Shareholder Service Department and Corporate
Announcements
8
Recruitment and Evaluation of Higher Management Staff Procedure
9
Related Parties Transaction Disclosure Procedure
10
Conflict of Interest Prevention and Response Policy
11
Conflict of Interest Prevention and Response Procedure
12
Privileged Information Management and Proper Public Briefing Procedure
13
Internal Audit System Periodic Evaluation Procedure
14
Board of Directors Members’ and Staff Training Policy
15
Board of Directors Members’ and Staff Training Procedure
16
Managerial Staff Compliance pursuant to article 19 of Regulation (EC) 596/2014
Procedure
17
Code of Ethics and Ethical Behavior
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• Monitoring, examining and evaluating the adequacy and effectiveness of all Company policies,
procedures and safeguards regarding the internal audit system, in order to ensure that the main
risks (credit risk, liquidity risk, interest rate risk, risk from macroeconomic conditions, etc.), are
identified, addressed and published appropriately and thoroughly.
• The monitoring and evaluation of the internal audit unit. To this end, the Committee
monitored and inspected the proper functioning of the internal audit unit in accordance with
professional standards and the current legislative and regulatory framework, while evaluating its
work, adequacy and effectiveness, without affecting its independence in any way.
• The evaluation of the annual audit program of the internal audit unit. Within the scope of this
responsibility, the Audit Committee approved the annual internal audit program on 13/02/2021
and the amended internal audit program on 23/9/2021. It also held meetings with the head of
the internal audit unit in order to evaluate and discuss its suggestions and to confirm its
independence after the completion of each audit.
During the fiscal year 2021, a total of eight (8) audit items were inspected at a rate of 100% of
the total inspected objects, without, however, discovering a substantial finding. The eight (8)
audit items concerned the parent company.
The Committee received from internal auditior Ms. Strikou the reports of the first, second, third
and fourth quarters of 2021, which were discussed in its sessions and informed the Board of the
Company, as recorded in relevant minutes of the Board.
C. External audit
The Audit Committee was mainly concerned with:
• The confirmation of the independence, impartiality, objectivity and integrity of the Regular
Auditor, as well as the effectiveness of the audit process, based on the relevant professional
standards and regulatory requirements. In this context, the Regular Auditor was summoned by
the Committee, before which he confirmed his independence and the absence of any external
direction or instruction or recommendation in the performance of his duties.
• The process of carrying out the statutory audit of the Company and the consolidated financial
statements of the Company (annual and bi-annual), as well as the content of the main and the
supplementary report submitted by the Regular Auditor. In this context, the Committee
confirmed that the audit of the financial statements is carried out in accordance with the
applicable legal framework, i.e. in accordance with International Standards on Auditing (IFRS)
and the rules of ethics imposed by the auditor.
• The selection of the Audit Company "KPMG Certified Auditors SA" for the mandatory audit of
the financial statements of the company and the Group, as well as for the issuance of a tax
certificate. In this context, based on the positive experience of the previous two years and the
relevant offer received, the Committee on 26.5.2021, decided to propose to the General Meeting
the assignment of the audit of the year 2021 to the above audit company, a proposal which was
approved.
• The provision to the Company of any additional services by the Auditing Company to which the
Regular Auditor belongs. In this context, he confirmed that the additional benefits provided to
the company by "KPMG Certified Auditors SA" were related to authorized auditing and non-
auditing services.
To monitor the above, in 2021 and 2022 there were several telephone calls and electronic
communications via email, between the Audit Committee members and the Auditors of K.P.M.G.
Apart from the abovementioned communications, the following teleconference meetings were
also held:
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• Within 2021, on 16.04.2021, on 23.9.2021 and on 22.12.2021.
• Within 2022, on 14.4.2022 in view of the publication of their Report and the results of 2021.
In general, the Commission's cooperation with auditors is considered to have been very positive,
with direct information flow and communication flexibility, whenever deemed necessary.
D. Sustainable Development
The Company has not adopted a sustainable development policy, given that, due to its
characteristics, it is not obliged by Law. However, it is dedicated to regulatory compliance and
business ethics, the safeguarding of health and safety of employees, customers and visitors, the
creation and distribution of immediate economic value to interested parties, the creation of jobs,
the creation of safe products, the policy of responsible communication with clients and
consumers of its products, the active and responsible social contribution through specific
actions, the protection of human rights and avoidance of discrimination in the workplace and the
investment in the education/ development of its employees and staff.
Finally, it is noted, in order for the present Report to be complete, that during the term of the
closing year 2021 (01.01.2021 – 31.12.2021), the Audit Committee had full and uninterrupted
access to all necessary and indispensable information regarding the exercise of its duties, while
the Management of the Company provided to the Committee all necessary facilities and space
needed to carry out its works constructively.
All Members of the Audit Committee believe that our Committee has fully carried out its duties,
pursuant to the provisions of the legislation in force, contributing to the endorsement of the
corporate governance and the works of the Board of Directors in general, securing the interests
of the Company’s shareholders.
Lastly, I’d like to thank the Internal Auditor, the staff of the Company for the support provided
during the entire aforementioned period, the members of the Committee Messrs. I. Apostolakos,
Th. Mechteridis and M. Zarkadis as well as the exited member Mr. P. Iakovou, for the flawless
cooperation.
Kind regards,
The Chairman of the Audit Committee
Apostolos Petalas
Χ. Information on the composition and operation of the Remuneration and
Nomination Committee
The Remuneration Committee of the members of the Board of Directors was established with a
decision of the Board of Directors of the Company in December 2019, based on the decision of
the extraordinary General Meeting of 18.12.2019. With the same decision of the General
Assembly, the Rules of Operation were approved. By the decision of the Board of Directors of
the Company dated 16.7.2021, the Committee assumed the role of the Nomination Committee
and was renamed as the Remuneration and Nomination Committee and on the same day the
Board of Directors approved its Rules of Operation. It consists of three non-executive members
of the Board, the majority of whom are independent. Its President is also an independent non-
executive member of the Board. The Rules of the Committee are published on the Company's
website https://www.ascompany.gr/
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The current Remuneration Committee consists of the following members:
a) Apostolos Petalas, independent non-executive member of BoD
b) Michail Zarkadis, independent non-executive member of the BoD
c) Theofilos Mechteridis, non-executive member of BoD
The President of the Remuneration Committee is Mr. Apostolos Petalas
It is noted that the member of the Committee Michail Zarkadis was elected to this position in
replacement of the resigned member Peter Iakovou, who was also its Chairman, by the decision
of the Board of Directors of the Company dated 16.07.2021. On the same day, the Committee
was reconstituted to include its new member.
The term of the Committee coincides with the term of the present BoD, i.e. 21.06.2022, and is
automatically extended until the convening of the Annual Ordinary General Meeting of year
2022, if it is convened after 21.06.2022.
The Committee has the following responsibilities:
1. Concerning the remunerations of the Company’s BoD Members and of the General Managers
(a) makes recommendations to the Board of Directors regarding the remuneration policy
which is afterwards submitted for approval to the General Meeting of the Company,
pursuant to articles 110 par. 2 of the Law. 4548/2018 and 11 paragraph a) of Law
4706/2020.
(b) makes recommendations to the Board of Directors regarding the remuneration of persons
falling within the scope of the remuneration policy, pursuant to articles 110 of Law No.
4548/2018 and 11 paragraph b) of Law 4706/2020, as well as regarding the remuneration
of the General Manager, the management personnel, including the Head of the Internal
Audit Unit. Remuneration means all cash and in-kind benefits, both regular and
extraordinary.
(c) examines the information included in the final draft of the annual remuneration report,
providing its opinion to the Board of Directors, before submitting the report to the General
Meeting, pursuant to article 112 of Law No. 4548/2018, in conjunction with article 11
para. (c) of Law 4706/2020.
(d) examines and recommends the conditions for the granting and subscription of variable
(other than fixed salary) remuneration for the above (e.g. setting and achieving financial
or other performance targets), if such are provided for.
(e) submits proposals to the Board of Directors regarding the terms of the contracts of the
above persons, in particular regarding non-salary benefits (e.g. pension/insurance plans) and
compensation in case of leaving the Company.
(f) considers and recommends the amount of all types of remuneration of the non-
executive members of the Board of Directors, in a manner that is commensurate with the duties
they are called upon to perform, based on the prevailing circumstances.
(g) formulates and submits proposals to the Board of Directors on any policy related to the
remuneration of the members of the Board of Directors and other executives.
2. Concerning the nomination of candidates for the Board of Directors of the Company:
(a) participates in the definition of the selection criteria and the procedures for the nomination
of the candidates for the Board of Directors.
(b) makes recommendations for the Diversity Policy, including gender balance.
(c) submits proposals to the BoD for the nomination of BoD Member candidates under the
approved Suitability Policy.
(d) conducts the process of definition and selection of candidates for BoD members within the
approved Suitability Policy.
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Annual Financial Report of the financial year from 1 January 2021
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(e) makes recommendations to the BoD regarding the succession plan for Board members and
senior executives.
(f) periodically and consistently reviews the renewal needs of the Board.
(g) monitors the implementation of the Suitability Policy and submits proposals to the BoD for its
revision, if necessary.
(h) periodically assesses the size and composition of the BoD and makes recommendations for
consideration regarding its desired profile.
(i) assesses the existing balance of qualifications, knowledge, opinions, skills, experience
relevant to the corporate objectives as well as the balance between genders and, based on this
assessment, outlines the role and competencies required to fill vacancies.
(j) informs the Board of Directors on the results of the implementation of the Suitability Policy
for BoD members and the action taken in case of any deviations.
(k) Adhering to best practices, establishes the evaluation parameters and presides over the
following:
- evaluation of the Board of Directors body,
- individual evaluations of the CEO and the Chairman,
- succession plan for the CEO and the members of the Board of Directors,
- a targeted profile of the composition of the Board of Directors in relation to the Company's
strategy and suitability policy.
(l) carries out a self-evaluation as a Committee of the BoD, with its President’s initiative.
The results of the Board's evaluation shall be communicated to and discussed by the BoD and
shall be taken into account in its deliberations on the composition, the integration plan of new
members, the development of training programmes and other related BoD issues. Following the
evaluation, the Board of Directors shall take steps to address the identified weaknesses.
The Commission meets regularly at least twice a year and extraordinarily if required. It is
convened by its President and is in quorum when at least 2 of its Members are present or
represented. Another Member, with its written authorization, can represent a Member of the
Committee. Decisions are taken by the majority of its members.
Activities of the Remuneration and Nomination Committee
During the financial year 2021, the Committee held five (5) meetings.
Member of the Remuneration Committee
Attending Meetings
Petros Iakovou, independent non-executive member (up until
his replacement)
2
Apostolos Petalas, independent non-executive member
5
Michail Zarkadis, independent non-executive member (after
taking up his duties)
3
Theofilos Mechteridis, non-executive member
5
There were also complementary communications via telephone, whenever deemed necessary.
During the aforementioned meetings and among other things, the Committee approved a draft
remuneration report for the year 2020 to the Board of Directors, in view of the Ordinary General
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
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Meeting of 2021, made a recommendation to the Ordinary General Meeting of 2021 regarding
the remuneration of the members of the Board of Directors for 2021 and their pre-approval for
2022, approved the signing of a service contract with a non-executive member of the Board of
Directors, made recommendations to the Board of Directors regarding the determination of the
remuneration of the members of the Board of Directors, in the context of the implementation of
the resolutions of the Ordinary General Meeting of 25.6.2021, made also recommendations to
the Board of Directors regarding the amendment of Article 16 of the Company's Articles of
Association regarding the remuneration of the members of the Board of Directors, as well as the
revision of the Company's Remuneration Policy. These proposals were accepted and
subsequently approved by the Extraordinary General Meeting of 26.11.2021.
ΧΙ. Diversity policy in the administrative, management and supervisory bodies
The Members of the Board have experience covering a relatively wide age range (ages 42-72)
while at the same time several of them have studied abroad. They actively contribute to the
work of the bodies as they have experience in areas related to the business of the Company and
the Group such as trade, imports / exports, financial, accounting and audit procedures.
The Board of Directors of the Company elected by the General Meeting as of 21.06.2019, as it is
formed after the replacement of one of its Members in June 2021, consists of six (6) men and
two (2) women. The Audit Committee and the Remuneration Committee are made up of men
only.
The Company makes an effort so that the Board Members and the Audit Committee adhere to a
high level of professional training and experience, a high level of education and organizational
and administrative skills having served in similar positions.
The Group in no way considers gender as a criterion and factor that can in any way affect the
choice or participation of a person in any body or position in the company, and that is reflected
in its Rules of Operation, as well as in the policies and regulations that accompany it as
annexes. The aim is to add more female representatives to the Board of Directors or to the
Committees in the future, according to the needs of the Company and the Group in general, but
this is not an end in itself. In any case, the relevant legal provisions are strictly observed.
In addition to the Vice President and Executive Member of the Board Mr. Anastasia Andreadou,
the executive member of the BoD Ms. Th. Koufou holds the position of General Manager of the
Company, as well as that of Managing Director of the subsidiary in Romania, "AS KIDS TOYS
S.R.L". Managerial positions in the Company are held by 3 other women, 1 General Manager,
two heads of departments and the position of Audit Manager.
Ζ. CORPORATE SOCIAL RESPONSIBILITY
In general
In AS Company, safety and product quality are the basic principles governing the operation of
the Group. On this basis, the course of the Group is formed from first day of its operation and
continues the same way for the future. These values are of particular importance to a Group
dealing with kids and their entertainment.
In practice, this means that AS toys have a safety and quality guarantee to provide carefree
hours of entertainment and joy to kids and parents. The Quality Assurance Department is
responsible for checking and complying with product safety and quality standards. We work with
internationally accredited external quality and safety testing laboratories that are internationally
recognized. The Customer Service department takes care of responding promptly to all requests
it receives, always in line with the family and its needs concerning the kid and toy.
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Annual Financial Report of the financial year from 1 January 2021
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Social Responsibility
AS Company, through a Corporate Social Responsibility program, carries out actions and
initiatives to support vulnerable social groups. In this context, it continued to support the
campaign "Put down the screen" and the hashtag #asekatotinothoni in order to awaken parents
to take a more active role, setting limits to protect children from the risk of screen addiction. At
the same time, the Company donates part of the proceeds from the sale of board games to
support organizations that prevent and treat the dangers of the internet. In 2021, the internet
addiction prevention program of KETHEA and the work of the NGO DIADRASIS were supported.
It was also strengthened with the sponsorship of board games and the Cybercrime Prosecution
Directorate of the Greek Police which holds information days for children hosted in institutions in
Greece and their goal is to shield this vulnerable age group who may face dangers in the
cyberspace.
Also, with a sense of responsibility for children and society as a whole, it provided free toys to
support the COVID-19 clinic of Papageorgiou Hospital, where children are treated, as well as the
free distribution of more than 500 toys to the children of PG employees. AHEPA Hospital, as a
symbolic act of support to the doctors and nurses who fight daily in the front line to deal with
the COVID-19 pandemic.
Finally, it continues with a sense of responsibility for society as a whole, to make a series of
product donations throughout the year, actively supporting organizations and associations, such
as "Make a Wish", "Guardian Angel", "Child Asylum", the UNESCO Group for the Culture of
Peace as well as many local organizations and social groceries, which through their actions
mainly support children and families.
H. Environmental & Work Issues
Environmentally
The Group in its countries of operation is not active in the processing of the products it
distributes. Also, the operation of the Group's facilities is low nuisance. Due to its belief that
rational environmental management and the protection of the ecosystem concern us all, it
makes sure that the items available are as environmentally friendly as possible.
In 2021, the products department launched a strategy to remove / reduce the use of plastic in
packaging, as well as to reduce the packaging paper, while also looking for raw materials from
suppliers with ecological certifications such as FSC. It also continues to include in its range the
products of the Play for future series of Clementoni, from recyclable and recycled materials,
showing its commitment to more responsible and sustainable products.
In addition, in 2021, the lamination method was not used in Easter toy packages. As a result,
117,500 pcs of boxes are fully recyclable.
Its purpose is to combine its corporate goals with its wider contribution to sustainable
development, while meeting the needs of consumers. With respect and responsibility for the
environment, it creates the path to a sustainable future for the child and the family.
MATERIAL RECYCLING (Group Total)
MATERIAL CALCULATED IN 2021
Plastic and Paper packages: 178.199.66 kg
Electric devices (Battery-powered toys): 275.212.65 kg
Batteries: 93.765 pcs
Finally, within 2021, 19 tons of pulp were recycled in total via a certified recycling company.
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Annual Financial Report of the financial year from 1 January 2021
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Employment
AS Company is its people, who daily support its smooth operation and progress.
Selection, placement in specific jobs, the assignment of tasks and the corresponding
remuneration are based on the principles of equal treatment and meritocracy.
In this context, the company pays particular attention to providing a positive, productive and
safe working environment and applies a recruitment and staffing policy that aims at the
development of its employees and the development of their skills. The key points of its policy
are:
- it provides equal hiring opportunities to external candidates, based on merit-based criteria,
according to the specifications of each job.
- it provides equal opportunities for career development to its employees to ensure equal
opportunities and to combat discrimination.
- it applies a fair remuneration and benefits policy.
The profile of employees for the Group is mixed as it employs a 56,9% of men and a 43,1% of
women.
The relations of the Group with its personnel are excellent and no work related issues have
arisen. As a result, there are no court cases regarding work related issues.
Health and Safety
The creation of a safe and healthy working environment is a priority for the Company. In the
context of protecting the health and safety of its employees, suppliers, customers and partners,
the following are implemented:
➢ Intensive inspections by safety technicians in all Company's facilities (Attica and Thessaloniki)
➢ The Company provides the services of an occupational physician, based on the legislative
requirements
➢ The Company is implementing a series of preventive measures to deal with the pandemic in
accordance with the instructions of the EODY, the relevant Ministerial Decision put into force by
the state authorities and in accordance with the instructions of the occupational physician and
safety technicians (teleworking, spatial safety zones, special markings, provision of sanitary
material, decontamination, temperature controls, rapid tests, travel restrictions, implementation of
extensive online meetings, etc.)
➢ The Company regularly trains its employees to deal with safety and health emergencies for both
themselves and visitors to its facilities and has created an internal Fire Safety and First Aid team.
➢ The Company provides its entire staff with additional medical insurance.
Personal Data Protection
The Company is committed to protecting the confidentiality and privacy of the information
provided or collected and complies with applicable legislation on the protection of personal data
of visitors, partners, customers, suppliers, current and former, employees and prospective
employees.
The Company has established a Personal Data Breach & Leakage Response Team and the
proper compliance of the system is regularly inspected by the Data Protection Officer (DPO). In
the same context, a tele-training was conducted by the DPO to all employees.
I. OTHER ISSUES-OWN SHARES
The Company has a specialized team who conducts market researches on the trends of the toy
industry for Greece and abroad and suggest to the Group's Management the development of
toys that suit the preferences of consumers in the markets in which the Group operates.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
42
Participation in various national and international Exhibitions abroad assists significantly towards
this purpose.
On 21.06.2021, the programme for the purchase of the Company’s own shares, which was
approved by the Annual General Meeting of the shareholders on 21 June 2019, in accordance
with the provisions of article 49 of Law no. 4548/2018, ended.
Subsequently, pursuant to the resolutions of the Annual General Meeting of Shareholders of
25.06.2021 and the decision of the Board of Directors of 25.11.2021, in the context of the Plan
on the Purchase of the Company’s own shares, the Company announced on 25.11.2021 the
launch of the new Plan on the Purchase of the Company’s own shares. Following a decision of
the Board of Directors, in the fiscal year 2021 and up to 31.3.2022, 60,825 shares with a total
nominal value of €40,144.50, representing 0.46339% of the capital with an average purchase
price of €1.957 had been purchased.
K. DIVIDEND POLICY
The Company’s Management, having positively assessed the financial results of this financial
year and its high liquidity, intends to distribute a net dividend (after tax deduction) of € 0.11 per
share. The proposed distribution is subject to the approval of the Annual General Meeting of
Shareholders. The proposed return is subject to the approval of the Ordinary General Meeting of
Shareholders.
ΙΑ. EXPLANATORY REPORT OF THE BOARD OF DIRECTORS TO THE ORDINARY
GENERAL MEETING OF SHAREHOLDERS (article 4 par. 7 of L. 3556/2007)
This explanatory report of the Board of Directors to the Ordinary General Meeting of the
Shareholders of the Company contains detailed information regarding the issues of paragraph 7
of Article 4 of L. 3556/2007 and is incorporated in the Board of Directors' report.
a. Share capital structure
The share capital of the Company amounts to eight million six hundred sixty-three thousand one
hundred seventy-three € and twenty cents (€ 8,663,173.20), divided into thirteen million one
hundred twenty-six thousand and twenty (13,126,020) common shares, with a nominal value of
sixty-six cents (€ 0.66) each.
The Company's shares are listed for trading as a whole on the Athens Stock Exchange.
The rights of the Company's shareholders stemming from its share are based on the percentage
of the capital, which corresponds to the paid value of the share. All shares have the same rights
and obligations and each share incorporates all the rights and obligations provided by the Law
and the Articles of Association of the Company.
b. Restrictions on the transfer of the Company's shares
The transfer of the Company's shares is effected in accordance with the Law and there are no
restrictions on the transfer on the Company's Articles of Association, especially as they are
intangible shares listed on the Athens Stock Exchange. There was no change during the year
2021 until the date of drafting this report.
c. Significant direct or indirect holdings within the meaning of Articles 9 to 11
of Law 3556/2007
The shareholders (natural persons or legal entities) that held at 31.12.2021, directly or indirectly
more than 5% of the total number of shares and the relevant voting rights of the Company are
listed in the table below.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
43
Shareholder name
Participation*
1. Andreadis Efstratios
33,63%
2. Andreadou Anastasia
31,84%
*Concerning the share capital and the voting rights
There were no changes from 31.12.2021 up to the date of preparation of this report regarding
the shareholders (natural person or legal entity) holding directly or indirectly more than 5% of
the total number of shares and the relevant voting rights of the Company.
d. Shares providing special control rights and description of these
There are no Company shares that provide their holders with special control rights.
There was no change during the year 2021 and up until the date of drafting this report.
e. Restrictions on voting rights
The Company's Articles of Association do not provide for any restrictions on the voting rights
deriving from its shares.
There was no change during the year 2021 and the date of drafting this report.
f. Shareholder agreements known to the Company that involve restrictions on
the transfer of shares or the exercise of voting rights
It is not known to the Company the existence of agreements between its shareholders, which
impose restrictions on the transfer of its shares or on the exercise of the voting rights deriving
from its shares.
There was no change during the year 2021 and the date of drafting this report.
g. Rules for the appointment and replacement of Board members and an
amendment of the Articles of Association
The rules laid down in the Articles of Association of the Company for the appointment and
replacement of the members of the Board of Directors and the amendment of its provisions do
not differ from the provisions of the Law.
h. Responsibility of the Board of Directors or some of its members for the issue of
new or the purchase own shares
The General Meeting of the Company decides, solely (according to article 23 L. 4548/2018 –
with the quorum of article 130 para 3 & 4 and the majority of article 132 para 2 of the same
law) on the increase of share capital with the issuance of new shares. The purchase and
administration of treasury shares on behalf of the Company takes place in the context of the
provisions of article 49 L. 4548/2018. The Articles of Association does not differ adjustments
from what the law provides for these issues.
The total number of shares of the Company traded on the Athens Stock Exchange amounts to
13.126.020 shares.
ΙΒ. Significant agreements that enter into force, amended or terminated in the
event of a change in control following a public offer and the results of such
agreements
There are no agreements that come into force, are amended or expired in case of change in the
control of the Company following a public proposal.
There was no change during the year 2021 and the date of writing this report.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
44
ΙC. Agreements with members of the Board of Directors or senior executives of the
Company for compensation in the event of termination of cooperation or
termination of service for any reason
There are no agreements of the Company with members of its Board of Directors or its
personnel, which provide for the payment of compensation especially in case of resignation or
dismissal without a valid reason or termination of their term or employment due to a public
offer.
There was no change during the year 2021 and the date of writing this report.
ΙD. SIGNIFICANT EVENTS AFTER THE END OF 2021
A. Reconstitution of BoD
In accordance with the decision of the Board of Directors of the Company dated 01.02.2022, it
was decided that the non-independent and non-executive member of the Board of Directors. Mr.
Konstantinos Andreadis of Efstratios , will henceforth become an executive member of the Board
of Directors. The executive Member of the BoD, Mr Konstantinos Andreadis, is entrusted with
the tasks of developing new markets abroad.
B. New Plan for the purchase of own shares
Pursuant to the decisions of the Ordinary General Meeting of Shareholders of 25.06.2021 and
the decision of the Board of Directors of 25.11.2021, in the framework of the Own Share
Acquisition Program, the Company announced on 25.11.2021 the start of implementation of the
Plan for the Purchase of own shares, according to which the purchase of up to the number of
656,301 shares of the Company until 25.06.2023 is foreseen, with a range of purchase prices
from € 0.50 / share (minimum) to € 4.00 / share (maximum). Up to 31/03/2022, 60.825 own
shares have been purchased with a total nominal value of € 40.144,50, with an average
purchase price of € 1,957 representing 0,46339% of the capital.
C. Other risks
After the opening of the retail following the lifting of the lockdown, our activities have gradually
returned to normal and management believes that based on the current development of the
pandemic and, having approached a critical point of immunity, there is no risk of any impact on
the financial results for the financial year 2022.
The recent geopolitical events in Ukraine have caused uncertainty in global markets. The
Company has no operations in Ukraine and Russia, which will not directly affect the financial
results for fiscal 2022. However, there has been a moderation in consumer spending due to the
general negative climate and uncertainty.
There are no other events after the Financial Statements, which relate, either to the Group or to
the Company, to which reference is required by the International Financial Reporting Standards.
IE. ALTERNATIVE PERFORMANCE MEASUREMENT INDICATORS (“APMI”)
For the analysis of the Company's and the Group's performance, "comparable" figures are used
which are calculated by adding-deducting captions presented in the Financial Statements
prepared in accordance with the International Financial Reporting Standards.
EBITDA ratio
This ratio results from the deduction of administrative, distribution and research expenses from
the gross profit plus other income. This ratio provides with useful information for the analysis of
the Company's and the Group's operating performance.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
45
The evolution of the ratio for the corresponding years of 2019, 2020 & 2021 was as follows:
31.12.2021
31.12.2020
31.12.2019
EBIDTA
3.882.380
3.114.930
4.060.292
% in sales
17,11%
15,89%
17,42%
Leverage Factor Ratio and Net Debt
This ratio results from the addition of the short-term borrowings plus the long-term borrowings
from which the cash and cash equivalents and short-term investments are deducted. The
outcome of these captions is divided by the Equity to calculate the leverage ratio. The Group
uses this ratio to measure its liquidity. After the implementation of IFRS 16 lease-related
financial liabilities are included in the calculation of the net debt from 2019 onwards.
The evolution of the ratio for the corresponding years of 2019, 2020 & 2021 was as follows:
31.12.2021
31.12.2020
31.12.2019
% net debt/equity
-57,03%
-48,33%
-51,77%
Net Debt
-19.180.498
-15.274.543
-15.871.477
Net Working Capital ratio
This ratio results from the addition of the Inventories, Receivables from Customers and Other
Assets with the deduction of the Trade Payables and Other Short-Term Liabilities. The Group
uses this ratio to assess its liquidity without taking into account cash and cash equivalents and
investments in fair value.
The evolution of the index in the respective twelve months of 2020 & 2021 were as follows:
31.12.2021 31.12.2020
Net working capital 10.010.264 11.334.381
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Thessaloniki, 14 April 2022
THE PRESIDENT OF BOARD OF DIRECTORS B.O.D MEMBER
& MANAGING DIRECTOR
EFSTRATIOS K. ANDREADIS THEODORA D. KOUFOU
ID No: AP 235479 ID No: AN 233404
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
46
III. Independent Auditors’ Report
Independent Auditor’s Report
(Translated from the original in Greek)
To the Shareholders of
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A
.
Report on the Audit of the Separate and Consolidated Financial
Statemenets
Opinion
We have audited the accompanying Separate and Consolidated Financial
Statements of AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND
TOYS S.A. (the “Company”) which comprise the Separate and Consolidated
Statement of Financial Position as at 31 December 2021, the Separate and
Consolidated Statements of Comprehensive Income, Changes in Equity and Cash
Flows for the year then ended, and notes, comprising a summary of significant
accounting policies and other explanatory information.
In our opinion, the accompanying Separate and Consolidated Financial
Statements present fairly, in all material respects, the separate and consolidated
financial position of AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS
AND TOYS S.A. and its subsidiaries (the “Group”) as at 31 December 2021 and its
separate and consolidated financial performance and its separate and
consolidated cash flows for the year then ended, in accordance with International
Financial Reporting Standards as adopted by the European Union.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing
(ISA), which have been incorporated in Greek legislation. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Separate and Consolidated Financial Statements section of our
report. We are independent of the Company and the Group in accordance with
the International Ethics Standards Board for Accountants’ Code of Ethics for
Professional Accountants, as it has been incorporated into Greek legislation,
together with the ethical requirements that are relevant to the audit of the
separate and consolidated financial statements in Greece and we have fulfilled our
ethical responsibilities in accordance with the requirements of the applicable
legislation and the aforementioned Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
47
Key audit matters are those matters, that, in our professional judgment, were of
most significance in our audit of the Separate and Consolidated Financial Statements
of the current period. These matters and the relevant significant assessed risks of
material misstatement were addressed in the context of our audit of the Separate
and Consolidated Financial Statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
1. Inventories Valuation
See Notes 4.6 and 7.5 to the Separate and Consolidated Financial Statements.
The key audit matter
How the matter was addressed in our
audit
The Company's and the Group's
inventories amount approximately to
EUR 4 531 thousand, as valued after
the impairment provision of
approximately EUR 676 thousand.
Inventories are valued at the lower of
cost and net realizable value. The net
realizable value is determined based
on the selling prices after the year end
of the year of reference.
Management's estimation concerning
the provision for impairment of
inventories is based on the estimations
for slow moving and obsolete
inventories, the seasonality of
inventories and selling prices of the
above.
Inventories valuation is a key audit
matter due to the significant balance of
inventories and the subjective
judgment required from management
in the assessment of the provision for
impairment of inventories.
Our audit procedures in relation to this
matter included, among others, the
following:
We evaluated the design and
implementation of the internal controls
of the Company regarding the
warehouse monitoring process.
We performed substantive audit
procedures regarding the movement of
inventories to identify slow-moving
inventories, so as to evaluate the
appropriateness of the assumptions
made by Management for the
inventories valuation process and the
calculation of impairment provision,
considering the effects of COVID-19.
In order to evaluate the inventory
valuation in comparison with the net
realizable value, we compared on a
sample basis the accounting value of
inventories with their sale prices after
the year end of the year of reference,
considering the effects of COVID-19.
We examined, on a sample basis, the
correct calculation of the inventories
acquisition cost.
We attended year-end inventory count
in order to count on a sample basis the
inventories and to examine the physical
condition of inventories, as well as their
probable impairment.
Key Audit Matters
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
48
We evaluated the appropriateness and
adequacy of disclosures, in the
Financial Statements.
2. Impairment of Trade Receivables
See Notes 4.5 and 7.6 to the Separate and Consolidated Financial
Statements.
The key audit matter
How the matter was addressed in our
audit
The Company's and the Group's Trade
Receivables amount approximately to
EUR 10 356 thousand and EUR 10 916
thousand respectively, against which
an impairment provision of EUR 133
thousand was made.
Management evaluates the
recoverability of the Company’s and
the Group’s trade receivables and
proceeds to the assessment of the
appropriate provision for impairment
for the expected credit losses.
In determining the expected credit
losses of trade receivables, the
Company and the Group uses a table
of provisions for credit losses based on
ageing analysis of the balances, and
historical data of the Company and the
Group for credit losses, adjusted to
future factors in relation to debtors and
the economic environment.
Impairment of trade receivables is a
key audit matter due to the significant
balance of trade receivables and the
subjective judgment required from
Management in the assessment of the
recoverability of trade receivables.
Our audit procedures in relation to this
matter included, among others, the
following:
We evaluated the design and the
implementation of the internal controls
of the Company and the Group
regarding the formation of provision for
impairment.
For a representative sample of trade
receivables, we received letters to
confirm year end balances.
We also reviewed collections took place
subsequent the date of the Financial
Statements for a sample of trade
receivables.
We evaluated the ageing analysis of
trade receivables and examined
significant balances of customers as
regards to the time analysis of their
maturity if they became overdue as well
as the financial position of these
customers.
We examined the adequacy of the
provision for doubtful debts of the
Company and the Group by evaluating
the method followed by Management
based on IFRS, the relevant
Management’s assumptions and the
data used, taking into account our
knowledge of the industry, the impact of
COVID-19 to the assumptions of the
Management and the assessment of the
external legal advisors of the Company
and the Group for the outcome of the
cases they handle regarding the
recoverability of trade receivables.
We evaluated the appropriateness and
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
49
adequacy of disclosures, in the
Financial Statements.
Management is responsible for the preparation and fair presentation of the Separate
and Consolidated Financial Statements in accordance with International Financial
Reporting Standards as adopted by the European Union, and for such internal
control as Management determines is necessary to enable the
preparation of
separate and consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
The Audit Committee of the Company is responsible for overseeing the Company’s
and the Group’s financial reporting process.
Other Information
Management is responsible for the other information. The other information
comprises the information included in the Board of Directors’ Report, for which
reference is made in the “Report on Other Legal and Regulatory Requirements”
and the Declarations of the Members of the Board of Directors but does not
include the Separate and Consolidated Financial Statements and our Auditor’s
Report thereon.
Our opinion on the Separate and 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 Separate and 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
Separate and 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.
Responsibilities of Management and Those Charged with
Governance for the Separate and Consolidated Financial Statements
In preparing the Separate and Consolidated Financial Statements, management is
responsible for assessing the Company’s and 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 management either intends to liquidate
the Company and the Group or to cease operations, or has no realistic alternative
but to do so.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
50
— Conclude on the appropriateness of Management’s use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s and the Group’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditors’ report to the related disclosures in the
Separate and Consolidated Financial Statements or, if such disclosuresare
inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditors’ report. However, future events
or conditions may cause the Company or the Group to cease to continue as a
going concern.
— Evaluate the overall presentation, structure and content of the Separate and
Consolidated Financial Statements, including the disclosures, and whether the
separate and consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Auditor’s Responsibilities for the Audit of the Separate and
Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the Separate
and Consolidated Financial Statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with ISAs which have been
incorporated in Greek legislation 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 Separate and
Consolidated Financial Statements.
As part of an audit in accordance with ISAs, which have been incorporated in
Greek legislation, we exercise professional judgment and maintain professional
skepticism throughout the audit.We also:
— Identify and assess the risks of material misstatement of the separate and
consolidated financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
— Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the Company’s
and the Group’s internal control.
— Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
Management.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
51
— Obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business activities within the Group to express
an opinion on these Consolidated Financial Statements. We are responsible
for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance 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.
From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the
Separate and Consolidated Financial Statements of the current period and are
therefore the key audit matters. We describe these matters in our auditors’ report
unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
Taking into consideration that Management is responsible for the preparation of the
Board of Directors’ Report and the Corporate Governance Statement that is included
in this report, pursuant to the provisions of paragraph 5 of Article 2 of
Law 4336/2015 (part B), we note that:
(b) In our opinion, the Board of Directors’ Report has been prepared in
accordance with the applicable legal requirements of Articles 150 and
153 and of paragraph 1 (cases c and d) of article 152 of L. 4548/2018 and its
contents correspond with the accompanying Separate and Consolidated
Financial Statements for the year ended 31 December 2021.
(c) Based on the knowledge acquired during our audit, relating to AS COMMERCIAL
INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A. and its environment,
we have not identified any material misstatements in the Board of Directors’
Report.
We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and
communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
1. Board of Directors’ Report
(a) The Board of Directors’ Report includes a Corporate Governance Statement
which provides the information set by Article 152 of L. 4548/2018.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
52
We examined the digital files of AS COMMERCIAL INDUSTRIAL COMPANY OF
COMPUTERS AND TOYS S.A. (the “Company”), which were prepared in accordance
with the European Single Electronic Format (ESEF) that is determined by the
Commission Delegated Regulation (EU) 2019/815, as amended by the Regulation (EU)
2020/1989 (the ESEF Regulation) that include the separate and consolidated financial
statements of AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS
S.A. and its subsidiaries (the “Group”) for the year ended as at 31 December 2021 in
XHTML format «213800NW1S2T9JRVU437-2021-12-31-el.xhtml», and also the file
XBRL «213800NW1S2T9JRVU437-2021-12-31-el.zip» with the appropriate mark up of
the those consolidated financial statements.
2. Additional Report to the audit Committee
Our audit opinion on the Separate and Consolidated Financial Statements is
consistent with the Additional Report to the Audit Committee of the Company dated
14 April 2022, pursuant to the requirements of article 11 of the Regulation 537/2014
of the European Union (EU).
3. Provision of non Audit Services
We have not provided to the Company and its subsidiaries any prohibited non-audit
services referred to in article 5 of Regulation (EU) 537/2014.
The permissible non-audit services that we have provided to the Company and its
subsidiaries during the year ended 31 December 2021 are disclosed in Note 13 of the
accompanying Separate and Consolidated Financial Statements.
4. Appointment of Auditors
We were appointed for the first time as Certified Auditors of the Company based on
the decision of the Annual General Shareholders’ Meeting dated 21 June 2018. From
then onwards our appointment has been renewed uninterruptedly for a total period
of 4 years based on the annual decisions of the General Shareholders’ Meeting.
5. Operations Regulation
The Company has an Operations Regulation in accordance with the content provided
by the provisions of the article 14 of Law 4706/2020.
6. Assurance Report on the European Single Electronic Reporting
Format
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
53
Our work was performed in accordance with the International Ethics Standards
Board for Accountants’
Code of Ethics for Professional Accountants,
as it has been
incorporated into Greek legislation and we have also fulfilled our independence
requirements, in accordance with the L. 4449/2017 and the Regulation (EU)
537/2014.
The assurance work that we carried out refers exclusively to the ESEF Guidelines and
was conducted in accordance with the International Standard on Assurance
Engagements 3000, “Assurance Engagements other than Audits or Reviews of
Historical Financial Information”. Reasonable assurance is a high level of assurance,
but is not a guarantee that such an assurance engagement will always detect a
material misstatement regarding non-compliance with the requirements of the ESEF
Regulation.
Regulatory framework
The digital files of the European Single Electronic Format are prepared in accordance
with the ESEF Regulation and the 2020/C 379/01 Commission Interpretative
Communication issued on 10 November 2020, as required by the L. 3556/2007 and
the relevant announcements of the Hellenic Capital Markets Commission and the
Athens Stock Exchange (the “ESEF Regulatory Framework”).
This Framework includes in summary, among others, the following requirements:
— All the annual financial reports must be prepared in XHTML format.
— With respects to the consolidated financial statements based on International
Financial Reporting Standards (IFRS), the financial information that is included in
the Statement of Comprehensive Income, the Statement of Financial Position,
the Statement of Changes in Equity and the Statement of Cash Flows, must be
marked up with XBRL tags, in accordance with the ESEF Taxonomy, as in force.
The technical requirements for the ESEF, including the relevant taxonomy, are
included in the ESEF Regulatory Technical Standards.
The requirements as defined in the ESEF Regulatory Framework as in force are
appropriate criteria in order to express a reasonable assurance conclusion.
Responsibilities of management and those charged with governance
Management is responsible for the preparation and filing of the separate and
consolidated financial statements of the Company and the Group, for the year ended
as at 31 December 2021, in accordance with the requirements determined by the
ESEF Regulatory Framework, and for such internal control as management
determines is necessary to enable the preparation of digital files that are free from
material misstatement, whether due to fraud or error.
Auditor’s Responsibilities
Our responsibility is the planning and the execution of this assurance engagement in
accordance with the 214/4/11-02-2022 Decision of the Hellenic Accounting and
Auditing Standards Oversight Board and the Guidelines for the assurance
engagement and report of Certified Auditors on the European Single Electronic
Reporting Format (ESEF) of issuers with shares listed in a regulated market in
Greece”, as these were issued by the Institute of Certified Public Accountants of
Greece on 14 February 2022 (the “ESEF Guidelines”), in order to obtain reasonable
assurance that the separate and consolidated financial statements of the Company
and the Group that are prepared by the management of the Company in accordance
with the ESEF comply in all material respects with the ESEF Regulatory Framework
as in force.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
54
Based on the procedures performed and the evidence obtained, we express the
conclusion that the Separate and Consolidated Financial Statements of the Company
and the Group for the year ended as of 31 December 2021 in XHTML format
«213800NW1S2T9JRVU437-2021-12-31-el.xhtml», and the XBRL file
«213800NW1S2T9JRVU437-2021-12-31-el.zip» marked up with respects to the
Consolidated Financial Statements, have been prepared, in all material respects, in
accordance with the requirements of the ESEF Regulatory Framework.
Athens, 14 April 2022
KPMG Certified Auditors S.A.
AM SOEL 114
Dimitrios Tanos, Certified Auditor Accountant
AM SOEL 42241
Conclusion
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
55
AS COMMERCIAL INDUSTRIAL
COMPANY
OF COMPUTERS AND TOYS S.A.
ANNUAL FINANCIAL STATEMENTS
(SEPARATE AND CONSOLIDATED) AS OF
31 DECEMBER 2021
According to the International Financial Reporting Standards as adopted by the
European Union
It is ascertained that the attached Annual Separate and Consolidated Financial Statements of
31 December 2021 are those approved by the Board of Directors of “ AS C OMMERCIAL
made public by posting on the Internet at www.ascompany.gr where they will remain
available to the public for a period of at least ten (10) years.
Efstratios K. Andreadis
Prsident of BoD & Managing Director
AS COMPANY S.A.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
56
IV. ANNUAL FINANCIAL STATEMENTSA. ANNUAL STATEMENT OF
FINANCIAL POSITION
(Amounts in Euro)
GROUP
COMPANY
31.12.2021
31.12.2020
01.01.2020
31.12.2021
31.12.2020
01.01.2020
ASSETS
Note
Restatement
Restatement
Non-current assets
Property, plant and equipment
7.1
Intangible assets
7.2
Right-of-use assets
7.1
Participation in subsidiaries
7.3
Other non-current assets
7.4
Current assets
Inventories
7.5
Accounts receivables
7.6
Investments at fair value through
P&L
7.7
Other current assets
7.8
Cash and cash equivalents
7.9
TOTAL ASSETS
EQUITY AND LIABILITIES
Eguity
Share capital
7.10
Share premium
Other reserves
Retained Earnings
Equity attributable to
shareholders of the Company
Total equity
Long-Term Liabilities
Long-term lease liabilities
7.11
Deferred tax liabilities
7.12
Staff leaving payments
7.13
Other long-term liabilities
7.14
Current Liabilities
Account payables
7.15
Short-term borrowings
7.16
Short-term lease liabilities
7.11
Other short-term liabilities
7.17
Total Liabilities
Total Equity and Liabilities
Restatement: The comparative figures in the Group and Company Income Statements for the financial year 2020 have
been revised due to the change in accounting policy brought about by the change in IFRS 19.
Reclassifications – repositions in certain funds of the Annual Financial Statement was made, in order to increase
presentability.
The accompanying notes set out on pages 55 – 94 form an integral part of these Separate and Consolidated Financial
Statements.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
57
B. ANNUAL STATEMENT OF COMPREHENSIVE INCOME
(Amounts in Euro)
GROUP
COMPANY
Note
1.1. to
31.12.2021
1.1. to
31.12.2020
1.1. to
31.12.2021
1.1. to
31.12.2019
Restatement
restatement
Turnover
7.18
Cost of sales
7.19
-12.102.790
-10.159.078
-11.860.782
-10.081.416
Gross Profit
Other operating income
7.20
Administrative expenses
7.21
-2.501.404
-2.320.239
-2.259.428
-2.141.608
Distribution costs
7.22
-4.835.197
-4.366.664
-4.345.417
-3.928.357
Research and development expenses
7.23
-178.888
-218.205
-178.888
-218.205
Profits before taxes, financial and
investment results
Income/ (expenses) from financing activity –
net
7.25
-157.193
-185.129
Profits before tax
Income taxes
7.26
-792.684
-524.016
-695.711
-463.478
Profits after taxes
Other comprehensive income not
subsequently reclassified in the results
Actuarial gains / (losses) from defined
benefits plan
7.13
-3.126
-3.126
Deferred tax
-365
-365
Total Comprehensive Income that will
not be subsequently reclassified in the
results
Other Comprehensive that could be
subsequently reclassified in the results
Effect of exchange rates from the conversion
of the financial statements into a foreign
currencies
-6.735
-4.458
Total of other Comprehensive income
-5.097
-6.833
-2.376
Total of compressive income
attributable to:
- Shareholders of the Company
Earnings per share - basic (in €)
12
Earnings before taxes, financial,
investment results and amortization
7.24
Restatement: The comparative figures in the Group and Company Income Statements for the financial year 2020 have
been revised due to the change in accounting policy brought about by the change in IFRS 19.
Reclassifications – repositions were made in certain funds of the Annual Statement of Financial Position in order to
increase presentability.
The accompanying notes on pages 55 to 94 are an integral part of these Company and Consolidated Financial
Statements.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
58
C. ANNUAL STATEMENT OF CHANGES IN EQUITY
(Amounts in Euro)
Group
Share capital
Share
premium
Other
Reserves
Retained
earnings
Total Equity
Equity as of the start of the
period 01.01.2020
Accounting Policy Change of
1/1/2020 (see Note 3.A1)
Reclassified in 1/1/2020
Profit for the year after taxes
Legal Reserves
-140.400
Exchange differences & other
reserves
-4.458
-4.458
Actuarial gains / (losses) from
defined benefits plan
-3.126
-3.126
Deferred tax on actuarial
gains/(losses)
Total comprehensive income
Increase of share capital
-74.509
-94.928
-2.982.720
Share capital increase costs
-1.912
-154.972
-156.885
Reduction and return of share
capital
-918.821
-918.821
Own shares acquisition
-59.792
-59.792
Transactions with the owners
-74.509
-154.720
-3.137.693
-1.135.499
Equity as of the end of the
period 31.12.2020- reclassified
Equity as of the start of the
period 01.01.2021
Profits of period after taxes
Legal reserves and other reserves
-82.250
Exchange differences
-6.735
-6.735
Actuarial gains/ (losses) from
defined benefits plan
Deferred tax on actuarial gains/
(losses)
-365
-365
Total comprehensive income
Own shares acquisition
-57.034
-57.034
Dividend distribution
-1.095.807
-1.095.807
Transactions with owners
-57.034
-1.095.807
-1.152.841
Equity as of the end of the
period 31.12.2021
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
59
Company Share capital
Share premium
Other
Reserves
Retained
earnings
Total Equity
Equity as of the start of the
period 01.01.2020
Accounting Policy Change of
1/1/2020 (see Note 3.A1)
Reclassified in 1/1/2020
Profit for the year after taxes
Legal Reserves
-140.400
Actuarial gains / (losses) from
defined benefits plan
-3.126
-3.126
Deferred tax on actuarial
gains/(losses)
Total comprehensive income
Increase of share capital
-74.509
-94.928
-2.982.720
Share capital increase costs
-1.912
-154.972
-156.885
Reduction and return of share
capital
-918.821
-918.821
Own shares acquisition
-59.792
-59.792
Transactions with the owners
-74.509
-154.720
-3.137.692
-1.135.498
Equity as of the end of the
period 31.12.2020 - reclassified
Equity as of the start of the
period 01.01.2021
Profit for the year after taxes
Legal Reserves
-69.802
Actuarial gains / (losses) from
defined benefits plan
Deferred tax on actuarial
gains/(losses)
-365
-365
Total comprehensive income
Own shares acquisition
-57.034
-57.034
Dividend distribution
-1.095.807
-1.095.807
Transactions with the owners
-57.034
-1.095.807
-1.152.841
Equity as of the end of the
period (31.12.2021)
Restatement: The comparative figures in the Group and Company Income Statements for the financial year 2020 have
been revised due to the change in accounting policy brought about by the change in IAS 19. Reclassifications –
repositions were made in certain funds of the Annual Statement of Financial Position in order to increase presentability
The accompanying notes on pages 55 to 94 are an integral part of these Company and Consolidated Financial
Statements.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
60
D. ANNUAL CASH FLOW STATEMENT
Restatement: The comparative figures in the Group and Company Income Statements for the financial year 2020 have
been revised due to the change in accounting policy brought about by the change in IAS 19. Reclassifications –
repositions were made in certain funds of the Annual Statement of Financial Position in order to increase presentability
The accompanying notes set out on pages 55 to 94 form an integral part of these Separate and Consolidated Financial
Statements.
(Amounts in Euro)
GROUP COMPANY
Note
1.1. to
31.12.2021
1.1.to 31.12.2020
1.1. to
31.12.2021
1.1. to
31.12.2020
restatement
restatement
Operating activities
Profit before tax (continuing activities)
Plus/minus adjustments for:
Depreciation
7.24
Provisions
Foreign Exchange differences
-137.171
-133.332
Results (Gain/loss) from investing
activities
-47.608
-125.854
-42.076
-79.836
Net financial gains (expenses)
-656.939
-674.517
Plus/Minus Working Capital Adjustments:
(Increase)/ decrease in inventories
-7.325
-15.607
Decrease/ (increase) in receivables
-319.371
-391.350
-294.811
(Decrease)/ Increase in payables (except
loans)
-1.604.451
-1.687.225
Minus :
Interest and related expenses paid
-108.891
-101.462
-91.312
-84.922
Income tax paid
-850.058
-693.006
-765.585
-624.944
Net cash inflows/ (outflows) from
operating activities (α)
Investing Activities
Purchase of tangible and intangible
assets
7.1-7.2
-55.792
-237.656
-27.477
-218.611
Receivables from the disposal of tangible
and intangible assets
(Purchases)/ Sales of financial assets
-2.254.634
-1.426.386
-2.370.301
-1.063.441
Interest received
Net cash inflows/ (outflows) from
operating activities (β)
-1.924.935
-1.310.202
-2.012.287
-930.145
Financing Activities
Reduction and return of share capital
7.10
-918.821
-918.821
Repayment of loans
7.16
-644
Own share acquisition
-57.034
-59.792
-57.034
-59.792
Repayment of finance lease
-117.293
-82.881
-98.266
-81.420
Dividends paid (without taxes)
-1.045.016
-1.045.016
Net cash flows from financing
activities (c)
-1.219.342
-1.062.138
-1.200.315
-1.060.034
Net increase / (decrease) in cash
and cash equivalents (a) + (b) + (c)
-1.908.086
-1.966.885
Cash and cash equivalents at the
beginning of the year
7.9
Cash and cash equivalents at the
end of the year
7.9
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
61
E. NOTES TO THE SEPARATE AND CONSOLIDATED ANNUAL FINANCIAL
STATEMENTS
1. General Information
THE COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A. is a Hellenic Societe
03.12.1990). The Company is registered with the Registry of Societes Anonymes of the Ministry
of Economy, Development and Tourism, with GEMI number 057546304000 and Registry
Number 22949/06/B/90/107. The Company’s seat, which constitutes also the main venue for the
execution of its business is in I oanias Street, Oreoka stro, 570 13, T hessaloniki, Greece . Its
website is www.ascompany.gr and is listed on the Athens Stock Exchange. The Financial
Statements as at 31 December 2021 were approved by the Board of Directors on 14 April 2021
and are subject to the final approval of the AS Annual General Assembly of Shareholders.
The Company's number of employees as of 31 December 2021 was 66 persons and for the
Group 72 persons.
The main activity of the Company concerns the w holesale trade of toys.
The subsidiary in Cyprus under the name "AS COMPANY CYPRUS LTD" is governed by and
operates under Cyprus Law, in the form of a Limited Liability Company. The subsidiary was
established in May 2016 with an initial capital of € 150.000, which was 100% covered by the
parent company, which is its sole shareholder.
The Romanian subsidiary AS KIDS TOYS S.R.L. is governed by and operates under Romanian
law in the form of Limited Liability Company. The subsidiary was established in February 2018.
Its share capital amounts to € 400.000 and has been 100% covered by the parent company,
which is its sole shareholder.
2. Basis of preparation of the Financial Statements
The Financial Statements have been prepared with the International Financial Reporting
Standards (IFRS) as adopted by the European Union and the application of which is mandatory
for the years ending 31 December 2021.
The financial statements have been prepared in accordance with the historical cost principle,
except for the financial assets at fair value through profit or loss, which, based on IFRSs, are
measured at fair value. Additionally, the Financial Statements have been prepared on a going
concern basis.
In 2021, the main financial figures of the Group exhibited a substantial increase compared to
the corresponding last year, however maintaining high levels of liquidity, and achieving
satisfactory performance in the main financial indicators.
Despite the uncertainty and disruption which have been created in the market with the constant
increases of basic goods’ prices, due to the war in Ukraine, the Management believes that -
even in adverse scenarios - the Company is able to meet the challenges of the crisis for the
following reasons:
• The Group and the Company have strong liquidity.
• The Group and the Company are able to fully cover the liabilities since on 31.12.2020 the
current assets exceed the short-term liabilities by € 29,31 million for the Group and € 26,72
million for the Company.
• The Company maintains reserves on the 31.03.2022 of more than 5 million Euros.
The Management follows closely the developments regarding the coronavirus (COVID-19), the
problems arising in the market from the increase of basic goods’ prices and constantly evaluates
their repercussions to the Group’s performance. Taking into consideration the above main
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
62
financial indicators the Management expects that the Group shall be in the position to cover any
needs of cash, and the status of the Company as an ongoing concern shall not be compromised.
The amounts of the Financial Statements (Corporate and Consolidated) are presented in Euro,
unless otherwise expressly stated.
The preparation of the Financial Statements requires the Management of the Company and the
Group to make significant assumptions and accounting estimates that affect the values of
assets, liabilities, disclosure of any receivables and liabilities at the date of preparation of the
Financial Statements and Financial Statements. income and expenses during the period
considered. Despite the fact that these calculations are based on the best possible knowledge of
the Management in relation to the circumstances and the current conditions, the actual results
may ultimately differ from these estimates.
Estimates and judgments are continually evaluated and are based on empirical data and other
factors, including expectations of future events that are considered to be expected under
reasonable circumstances.
Significant accounting estimates and assumptions are as follows:
Income tax provision – Note 4.12: The income tax provision based on IAS 12 is calculated
by estimating the taxes to be paid to the tax authorities and includes the current income tax for
each fiscal year and provision for the additional taxes that may arise in future tax audits. The
final settlement of income tax is likely to deviate from the relevant amounts recorded in the
Financial Statements.
Estimated useful life of assets – Note 4.2: The Company makes accounting estimates for
the useful life of its tangible assets. These estimates are reviewed at least on each Financial
Position date taking into account new data and market conditions.
Employee retirement benefit obligations – Note 4.10: Employee benefits obligations are
calculated using actuarial methods that require management to assess specific assumptions
such as future employee salary increases, discount rates, employee dismissal rates, etc.
Management seeks, at every Financial Position date when this provision is reviewed, to assess
these assumptions in the best possible way.
Provision for impairment of inventories – Note 4.6: The Company proceeds with
impairment of its inventories when there are indications that either the cash flows from their
sale will be lower than their current value or that due to their situation it is not possible to be
sold or to be used in production. Management periodically reassesses the adequacy of the
provision for obsolete inventories and any impairments that arise are recognized in the
Comprehensive Income Statement.
Provisions for bad and doubtful debts – Note 4.5 (iii): The Company proceeds with an
impairment of its trade receivables on the basis of expected credit losses for trade receivables
when there is evidence indications that it is unlikely that a debt is collected in whole or in part.
The Company's Management periodically reassesses the adequacy of the provision for doubtful
receivables based on factors such as its credit policy, reports from the lawyers on recent
developments in cases handled by them and their assessment / judgment of the effect of other
factors on the recoverability of the receivables.
3. Important Accounting Principles and Methods
Basic accounting policies
The accounting policies under which the accompanying Financial Statements are prepared are
consistent with those used in the preparation of the Financial Statements for the comparative
2020 financial year except for the change referred to in note (A.1) regarding the change in
accounting policy in accordance with IAS 19 and have been applied consistently for all the years
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
63
presented. The Group has adopted the new standards and interpretations, the application of
which became mandatory for the financial years beginning 1 January 2021. The new standards
are presented below:
(A) Amendments to the published standards
In particular, new standards, amendments to standards and interpretations have been issued,
which are mandatory for the accounting periods beginning on or after 01.01.2021. The
Company's and the Group's assessment of the impact of the adoption of these new standards,
amendments and interpretations is set out below:
• IFRS 16 (Amendment) "Concessions on leases related to COVID-19" (applicable to annual
accounting periods beginning on or after 1 June 2020)
The amendment provides lessees (but not lessors) with an optional exception to the assessment
of whether a COVID-19-related lease assignment is a lease modification. Lessees may elect to
account for concessions to rents in the same manner as they would for changes that are not
lease modifications.
• IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (Amendments) “Reform of reference rates – Phase
2” (applicable to annual accounting periods beginning on or after 1 January 2021)
The amendments complement those issued in 2019 and focus on the impact on the Financial
Statements when an entity replaces the old reference rate with an alternative reference rate as
a result of the restatement. More specifically, the amendments relate to how an entity will
account for changes in contractual cash flows of financial instruments, how it will account for
changes in its hedging relationships and the information to be disclosed.
The adoption of the above amendments did not have an impact on the Company's and the
Group's Financial Statements.
Standards and Interpretations mandatory for the following periods
Certain new standards, amendments to standards and interpretations applicable to annual
accounting periods beginning after 1 January 2021 have been adopted and not applied in the
preparation of these Financial Statements. None of them are expected to have a material impact
on the Company's and the Group's Financial Statements.
• IAS 37 (Amendment) “Onerous Contracts – Cost of fulfilling a contract” (applicable to annual
accounting periods beginning on or after 1 January 2021) The amendment clarifies that "the cost
of fulfilling a contract" includes the directly related costs of fulfilling that contract and the
allocation of other costs directly related to its fulfilment. The amendment also clarifies that, before
recognizing a separate provision for an onerous contract, an entity recognises any impairment
loss on the assets used to fulfil the contract, rather than on assets that were dedicated solely to
that contract. The amendment has not yet been adopted by the European Union.
Annual ameliorations in IFRS 2018-2020 (applicable to annual accounting periods beginning
on or after 1 January 2022)
The amendments listed below include changes to the following IFRSs. These amendments
have not been adopted yet by the European Union.
• IFRS 16 (Amendment) "Property, plant and equipment - Revenue before its intended use"
(effective for annual accounting periods beginning on or after 1 January 2022)
The amendment prohibits an entity from deducting from the cost of property, plant and
equipment any revenue received from the sale of items produced while the entity is preparing the
asset for its intended use. It also requires entities to disclose separately the amounts of revenue
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
64
and costs associated with such manufactured items that are not the result of the entity's ordinary
activities. The amendment has not yet been adopted by the European Union.
• IFRS 3 (Amendment) "Conceptual Framework Reference" (effective for annual periods beginning
on or after 1 January 2022)
The amendment updates the standard to refer to the Conceptual Framework for Financial
Reporting issued in 2018 when determining what constitutes an asset or liability in a business
combination. In addition, an exemption was added for certain types of liabilities and contingent
liabilities acquired in a business combination. Finally, it is clarified that the acquirer should not
recognise contingent assets, as defined in IAS 37, at the acquisition date. The amendment has
not yet been adopted by the European Union.
• IAS 1 (Amendment) “Classification of liabilities as current or non-current" (effective for annual
accounting periods beginning on or after 1 January 2023) The amendment clarifies that liabilities
are classified as current or non-current based on the rights in force at the end of the reporting
period. The classification is not affected by the entity's expectations or by events after the
reporting date. In addition, the amendment clarifies the meaning of the term 'settlement' of a
liability in IAS 1. The amendment has not yet been adopted by the European Union.
• IAS 1 (Amendment) "Presentation of Financial Statements and Statement of Practice IFRS 2:
Disclosure of Accounting Policies".
The amendments provide guidance on the application of material judgements in accounting policy
disclosures. In particular, the amendments to IAS 1 replace the requirement to disclose
'significant' accounting policies with a requirement to disclose 'material' accounting policies. In
addition, guidance and illustrative examples are added to the Statement of Practice to assist in
applying the concept of materiality in making judgements about accounting policy disclosures.
• IAS 8 (Amendment) 'Accounting policies, changes in accounting estimates and errors: Definition
of Accounting Estimates" (effective for annual accounting periods beginning on or after 1 January
2023)
The amendments introduce a new definition of accounting estimates, defined as monetary
amounts in the financial statements that are subject to measurement uncertainty. The
amendments also clarify what changes in accounting estimates are and how they differ from
changes in accounting policies and corrections of errors. The adoption of these amendments is
not expected to have a material impact on the Company's and the Group's Financial Statements.
In addition, there are other standards or interpretations which are not yet effective and are not
included in the above and which are not expected to have a significant impact on the Company
and the Group.
(A1) Change in the Accounting Policy regarding the allocation of provisions for
termination benefits in accordance with IAS 19 "Employee Benefits"
The IFRS Interpretations Committee issued in May 2021 the final agenda decision under the title
"Allocation of benefits over periods of service in accordance with International Accounting
Standard (IAS) 19", which includes explanatory material regarding the way to allocate benefits
over periods of service, on a specific defined benefit plan similar to the one defined in article 8
of Law 3198 /1955 as regards the provision of retirement benefits (the "Defined Benefit Plan
under Labour Law").
Based on the above decision, the way in which the basic principles of IAS 19 were applied in
Greece in the past differs in this respect, and consequently, entities that prepare their financial
statements in accordance with IFRS are required to amend their accounting policies accordingly.
Until the adoption of the agenda decision, the Group applied IAS 19 by allocating the benefits
defined by article 8 of Law 3198/1955, Law 2112/1920 and its amendment by Law 4093/2012 to
the period from the hiring to the retirement date of the employees.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
65
The application of this final decision in the attached Consolidated and Separate Financial
Statements of the Company has resulted in the allocation of benefits for the last 16 years, until
the employees' retirement date, following the scale provided for in Law 4093/2012.
Based on the above, the application of the above final decision has been treated as a change in
accounting policy, applying the change retrospectively from the beginning of the first
comparative period in accordance with paragraphs 19 - 22 of IAS 8.
The tables below show the effect of applying the final decision for each specific line item in the
financial statements affected. Any lines that were not affected by the changes brought about by
the change in accounting policy are not included in the table:
Group
Extract of the Report
01/01/2020
Effect of the change
in accounting policy
01/01/2020
of the Financial Position Statement
*rephrased
Deferred tax obligations
245.370
65.875
311.245
Balance of retained earnings
22.298.024
208.603
22.506.627
Provisions on staff leaving payments
321.634
-274.478
47.156
Extract of the Report
31/12/2021
31/12/2020
31/12/2020
of the Financial Position Statement
*rephrased
Deferred tax obligations
210.601
198.792
122.261
Balance of retained earnings
23.115.053
21.107.225
20.864.878
Provisions on staff leaving payments
82.027
64.153
383.031
Extract of the Report of
31/12/2021
31/12/2020
31/12/2020
Statement of Total Income
*rephrased
Actuarial gains /(losses) from defined benefits
progams
2.003
-3.126
-35.886
Deferred tax on actuarial losses
-365
750
8.613
Management expenses
2.501.404
2.320.239
2.331.878
Comapny
Extract of the Report of Financial
01/01/2020
Effect of the change
in accounting policy
01/01/2020
Position Statement
*rephrased
Deferred tax obligations
245.370
65.875
311.245
Balance of retained earnings
21.387.438
208.603
21.596.042
Provisions on staff leaving payments
321.634
-274.478
47.156
Extract of the Report
31/12/2021
31/12/2020
31/12/2020
of the Financial Position Statement
*rephrased
Deferred tax obligations
210.601
198.792
122.261
Balance of retained earnings
21.043.702
19.700.593
19.458.246
Provisions on staff leaving payments
82.027
64.153
383.031
Extract of the Report of the
31/12/2021
31/12/2020
31/12/2020
Statement of Total Revenue
*rephrased
Actuarial gains/ (losses) from defined benefits
programs
2.003
-3.126
-35.886
Deferred tax
-365
750
8.613
Management expenses
2.259.428
2.141.608
2.153.248
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
66
4. Significant Accounting Principles and Methods
Below are the most important accounting principles and methods used for the preparation of the
Financial Statements:
4.1 Consolidation and Participations in subsidiaries
Subsidiaries are the companies in which the Group directly or indirectly controls their financial
and operating policies. Subsidiary companies are fully consolidated (full consolidation) from the
date on which the control is transferred and cease to be consolidated from the date when the
control does not exist. The Group's subsidiaries are 100% owned by the Company and have
arisen from direct establishment.
Transactions, intercompany balances and unrealized gains arising between Group companies are
eliminated on consolidation. Unrealized losses are excluded except when the cost of the
transferred asset is not recoverable. The financial statements of the subsidiaries are prepared on
the same date and with the same accounting policies as the financial statements of the
Company.
4.2 Property, plant and equipment
Land and buildings, other property items, machinery, vehicles, and other equipment are stated
at historical cost less accumulated depreciation and any impairment in losses.
Acquisition cost and accumulated depreciation of tangible fixed assets disposed of or sold are
transferred from the relative accounts at the time of sale or disposal and any gain or loss arises
is included in the Profit and Loss Account.
Expenditure incurred to replace part of the tangible fixed assets is incorporated in the cost of
assets, if it can be reliably estimated, that the Company will benefit from the asset in the future.
Repairs and maintenance costs are recognized in the Comprehensive Income Statement when
incurred.
Land is not depreciated. Depreciation for other items of property, plant and equipment is
calculated on a straight-line basis over the estimated useful life of tangible assets.
The estimated useful life (or annual depreciation rates) of property, plant and equipment is as
follows:
Useful life
Rate
Buildings, constructions, installations
25 years
4%
Machinery, equipment, Other fixed assets
10 years
10%
Transportation
6,25 years
16%
Computer Equipment
5 years
20%
4.3 Intangible Assets
Intangible assets acquired separately are recognized at less accumulated amortization and
impairment losses.
Subsequent expenditure on capitalized intangible assets are capitalized only when it increases
the future economic benefits incorporated in the specific asset to which they relate. All other
expenditure is expensed when incurred.
Amortization is recognized in the Comprehensive Income Statement using the straight line
amortization method over the estimated useful life of the intangible asset.
Intangible assets include software programs with an estimated useful life of five (5) years.
4.4 Impairment of Non-Financial Assets
The carrying amounts of non-financial assets of the Group or the Company are tested for
impairment when there are indications that their carrying amounts are not recoverable. In this
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
67
case, the recoverable amount of the assets is determined and if the carrying amount exceeds
the estimated recoverable value, an impairment loss is recognized directly in the Profit and Loss
Account. The recoverable value of assets is define as the higher of fair value less costs to sell
and value in use. For assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks associated with these assets. For an asset that does not
generate independent cash inflows, the recoverable value is determined by the cash-generating
unit to which the asset belongs. At each reporting date, the Group and the Company assesses
whether there is an indication that the previous recognized impairment loss do not continue to
exist. In this case, the recoverable amount of the asset is reassessed and the impairment loss is
reversed by returning the carrying amount of the asset to its recoverable amount to the extent
that it does not exceed the carrying amount of the asset that would have been determined (net
of depreciation or amortization) if the impairment loss was not recognized in prior years.
4.5 Financial Instruments
A financial instrument is any contract that creates simultaneously a financial asset for the
Company and a financial liability or equity instrument for another company.
(i) Recognition and initial measurement
All financial assets and financial liabilities are initially recognized when the Company becomes a
party to the contractual provisions of the financial instrument.
A financial asset or financial liability is initially measured at fair value plus, for an item not
measured at fair value through profit or loss, transaction costs that may be directly attributable
to the acquisition or issue. Trade receivables without a significant financial component are
initially measured at the transaction price.
Financial assets are classified at the initial recognition as subsequently measured at amortized
cost, at fair value through other comprehensive income or at fair value through profit or loss.
The classification of financial assets at initial recognition is based on the contractual cash flows
of the financial assets and the business model in which the financial asset is held.
(ii) Classification and measurement
After initial recognition, financial assets are classified into three categories
● At amortized cost
● Fair value through other comprehensive income directly to equity (FVOCI);
● Fair value through profit or loss (FVTPL)
The Group and the Company do not have assets that are measured at fair value through other
comprehensive income at 31 December 2021 and 31 December 2020.
Financial assets classified as at fair value through profit or loss are initially recognized at fair
value with gains or losses from the measurement being recognized in the Comprehensive
Income Statement.
The measurement of the financial assets of the Company and the Group is as follows:
— Financial assets measured at amortized cost
These financial assets are held within the business model and their purpose is to hold
them and collect contractual cash flows that meet the "SPPI" criterion. Included in this
category are all financial assets of the Group, except for investments in shares listed in
Stock Exchange Markets, as well as funds that are measured at fair value through profit
or loss.
— Financial assets measured at fair value through profit or loss
This includes investments in shares listed in Stock Exchange Markets, as well as in mutual
funds and bonds.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
68
Financial assets are not reclassified after their initial recognition unless the Company changes
the business model concerning the management of the financial assets. As a result, all affected
financial assets are reclassified on the first day of the first reporting period after the change of
the business model.
(iii) Impairment of financial assets
The Group and the Company recognize impairment for expected credit losses for all of the
aforementioned financial assets other than those measured at fair value through profit or loss.
In order to determine the expected credit losses in relation to the receivables from customers,
the Group and the Company apply the simplified approach of the standard based on the age of
the balance. Moreover, to determine the expected losses the Group and the Company is based
on the historical data for losses, tailored for future events in relation to debtors and the
economic environment.
The losses are recognized in profit or loss and are reflected as a provision. When the Company
considers that there are no realistic prospects for recovering the asset, the relevant amounts are
written off. If the amount of the impairment loss subsequently decreased and the decrease is
related to an event occurring after the impairment has been recognized, then the previously
recognized impairment loss is reversed through profit or loss.
The trade and other receivables of both the Company and the Group, other than those for which
a provision has been formed, are assessed as collectable.
Cash and cash equivalents, including cash, cash banks and time deposits of up to 3 months, are
also subject for impairment. The impairment loss on them was insignificant. Cash and cash
equivalents are highly liquid and low risk.
(iv) De-recognition
Financial Assets
The Company and the Group derecognizes a financial asset when the rights to the cash inflow of
the financial asset expire or the Company has transferred the rights to receive cash flows from
that asset while either has transferred substantially all the risks and benefit from the ownership
of the financial asset, or has not transferred substantially all the risks and rewards of ownership
but has transfer the control of the financial asset. Also, when the Company retains the right to
receive cash flows from that asset, it also has the obligation to pay them to third parties in full
without undue delay in the form of a transfer agreement.
When the Company or the Group engages in Transactions in which it transfers assets recognized
in its Financial Position, it retains the risks and rewards of ownership of the transferred assets.
In such cases, the transferred assets are not derecognized.
Financial liabilities
The Company or the Group writes off a financial liability when its contractual obligations are
canceled or expire. Also, the Company or the Group ceases to recognize a financial liability when
the financial liability is replaced by another from the same lender but with substantially different
terms or the terms of the existing liability are significantly changed, so that such exchange or
amendment is treated as a derecognition of the original obligation and recognition of a new one.
The difference between the book value that has been eliminated and the amount paid (including
any non-transferred assets or liabilities assumed) is recognized in the Comprehensive Income
Statement, when a financial liability is written off.
(iv) Offset
Financial assets and financial liabilities are offset and the net amount is reflected in the
statement of financial position when and only when the Company or the Group legally has this
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
69
right and intends to offset on a net basis between them or to demand the asset and settle the
obligation at the same time.
4.6 Inventories
The Company's inventories, which consist mainly of merchandises valued at the lower of cost or
net realizable value. The acquisition cost is determined using the weighted average method,
which is consistently followed. Net realizable value is the estimated selling price in the ordinary
course of business, less the estimated costs necessary to proceed with the sale. Obsolete
inventories are those that do not have full commercial value and which will be sold below cost.
4.7 Cash and Cash Equivalents
Cash and cash equivalents include cash, cash at banks and time deposits of up to 3 months are
of high liquidity and low risk. For Cash Flow statement, purposes cash and cash equivalents
consist of cash at hand and at banks less bank overdrafts.
4.8 Share Capital
Common shares are classified in Equity.
Each share of the Company incorporates all the rights and obligations set out in L.4548/2018
and the Company's Articles of Association. The distribution of dividends to the Company's
shareholders is recognized as a liability in the Financial Statements when the distribution is
approved by the General Meeting of Shareholders. The cost of acquiring own shares is deducted
from Equity, until own shares are sold or canceled.
4.9 Government grants
Government grants are recognized at their fair value when there is reasonable assurance that
the grant will be received and the Company and the Group will comply with all the applicable
terms. Government grants relating to expenses are postponed and recorded in the
Comprehensive Income Statement within a period such that they are matched with the
expenses they are intended to compensate. Government grants related to the purchase of
tangible fixed assets are included in long-term liabilities as deferred government grants and are
carried as income in the Comprehensive Income Statement using the straight-line method over
the estimated useful life of the related assets.
4.10 Employee Benefits
a) Short-term benefits
Short-term benefits to staff in cash and in kind are recognized as an expense when accrued.
b) Defined contribution plans
Defined contribution plans are post-employment programs for an employee in which the
Company and the Group pays a fixed amount to a third party without any other obligation. The
accrued cost of defined contribution plans is recognized as an expense when incurred.
c) Defined benefit plans
Defined benefit plans are retirement plans. The liability recognized in the statement of financial
position for defined benefit plans is the present value of the defined benefit obligation less the
changes arising from unrecognized actuarial gains and losses and past service cost at the end of
the period for the preparation of financial statements. These liabilities are calculated annually by
independent actuaries using the Projected Unit Credit Method. Pursuant to the decision issued in
May 2021 by the IFRS Interpretation Committee, the way that the basic principles of IAS 19
were applied in Greece, is differentiated.
The application of that final decision in the attached Consolidated and Separate Financial
Statements provides that henceforth benefits shall be distributed in the last 16 years until the
day of retirement of employees, according to the limits of Law 4093/2012.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
70
Actuarial gains and losses arising from adjustments based on historical data are recorded in
Other Comprehensive Income. When the benefits of a program are modified or when the plan is
curtailed, the resulting change in the service obligation associated with the prior service or the
profit or loss from the cut is recognized directly in Other Comprehensive Income.
d) Termination benefits
Termination benefits are paid when employees leave before the retirement date. The Company
recognizes these benefits when committed or terminates the employment of existing employees
according to a detailed plan for which there is no probability of withdrawal, or when it offers
these benefits as an incentive for voluntary retirement. Termination benefits due 12 months
after the balance sheet date are discounted.
4.11 Provisions
Provisions are recognized when the Company and the Group have a present legal or
constructive obligation as a result of past events and if it is a probable that an outflow of
resources which embeds economic benefits in order to settle the obligation and the amount of
the settlement can be reliably estimated. Provisions are reviewed at each date of Financial
Position and if it is no longer probable that an outflow of resources which creates financial
benefits to settle the obligation exists, provisions are reversed. Provisions are used only for the
purpose for which they were originally created. Provisions are not recognized for future
operating losses. Contingent liabilities are not recognized in the financial statements but are
disclosed. Contingent assets are not recognized in the financial statements but are disclosed
when the inflow of economic benefits is probable.
4.12 Deferred tax
The Company's income tax relates to tax on taxable profits as they were adjusted in accordance
with the requirements of the tax law based on the applicable tax rates at the date of the
Financial Position.
The income tax of the year consists of current tax and deferred taxes. The charge of income tax
is recognized in the Profit and Loss Account.
The expected tax effects of the temporary tax differences are determined and presented either
as future (deferred) tax liabilities or as deferred tax assets.
Deferred income taxes concern cases of temporary differences between recognition of tax
assets and liabilities and their recognition, for Financial Statements purposes.
Deferred taxes are measured using tax rates that are expected to apply at the time the asset is
recognized and the liability is settled and is based on the tax rates (and tax laws) that are in
force or are enacted at the date of preparation of the Financial Statements. Deferred tax assets
are recognized for deductible temporary differences to the extent that it is probable that there
will be sufficient future taxable Profits.
Deferred tax assets are offset against deferred tax liabilities when there is legally enforceable
right to set off and both are subject to the same tax authority.
The value of deferred tax assets is reviewed at each date of statement of Financial Position and
reduced to the extent that expected taxable income will not be sufficient to cover the deferred
tax asset.
The tax rates used in the countries in which the Group operates are presented as follows:
Country Income Tax Rate
Greece 22,0% (24,0%: 2020)
Cyprus 12,5%
Romania 16,0%
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
71
4.13 Recognition of Revenue
Revenues consist of the invoicing value of the trading and the provision of services rendered by
the Company and the Group, net of VAT, discounts and returns.
Sales of goods (wholesale and retail)
The Group operates in the kids toys industry and contracts with costumers consist of one
performance obligation or provision of services and the prices are fixed and result from price
lists. The Group recognizes revenue when it delivers the goods to customers and the goods are
accepted by them.
Financial Income
Interest income is recognized using the effective interest method. When calculating interest
income, the effective interest rate is applied to the gross carrying amount of the asset (when
the asset is not impaired by the credit rating) or its recoverable amount.
Income from Royalties
Income from royalties is recognized in accordance with the accrued revenue principle according
to the substance of the royalty agreements.
Dividend income
Dividend income is recognized at the time when the Company's right to receive is ratified.
4.14 Dividends
Dividends distributed to shareholders are recognized in the Financial Statements as a liability
and at the time at which they are ratified by the Annual General Meeting of the Shareholders.
4.15 Leases
The Company and the Group as lessee
At the commencement of a lease, the Group and the Company assess whether the contract
constitutes, or involves, a lease. A contract constitutes, or involves, a lease if the contract
transfers the right to control the use of an underlying asset for a specified period of time in
exchange for consideration.
The Group and the Company recognize lease liabilities for lease payments and right-of-use of
assets that represent the right to use the underlying assets.
i. Right-of-use assets
The Group and the Company recognize the right-of-use assets on the date of the lease term
commencement (ie the date on which the underlying asset is available for use). Regarding the
subsequent measurement, the Group and the Company apply the cost method to measure the
right-of-use assets. Therefore, the right-of-use assets will be measured in cost after deducting
accumulated depreciation and accumulated impairment losses and will be adjusted due to
revaluation of the lease liability. The right-of-use assets are depreciated on a straight-line
depreciation basis in the shortest period of time between the lease term and their useful life.
ii. Lease liabilities
At the date of the lease commencement, the Group and the Company measure the lease liability
at the present value of the lease payments which will be paid during the lease. Subsequently, a
finance cost will be calculated on the lease liabilities, while their accounting balance will be
reduced in order to reflect the lease payments. In case of re-evaluations or modifications, the
accounting balance of lease liabilities is recalculated to capture the revised lease payments.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
72
4.16 Foreign Currency Translation
The assets and liabilities of the companies participating in the consolidation, which are initially
presented in a currency other than the presentation currency of the Group, have been
translated into euros at the closing rate of the balance sheet. Income and expenses have been
translated into the presentation currency of the Group at the average exchange rates during the
reporting period. Any differences arising from this process are recorded in the Annual Statement
of Comprehensive Income and in the net position except for the part of these differences that is
allocated to non-controlling interests, when they exist. In the event that a foreign business is
sold in whole or in part so as to lose control of the Group in that activity, the accumulated
foreign exchange differences recognized in equity are carried to profit or loss as part of the
profit or loss from the sale.
The "AS COMMERCIAL INDUSTRIAL COMPUTER AND TOY COMPANY S.A." and the subsidiary
"AS COMPANY CYPRUS LTD" keep their books in Euros. The AS KIDS TOYS S.R.L subsidiary
keeps its books in RON. Transactions in foreign currencies are converted into Euros based on
the official exchange rate prevailing on the day of the transaction. At the date of the Financial
Position, assets and liabilities in foreign currencies are translated into Euro based on the official
exchange rate of the foreign currency applicable on the respective date of the Financial Position.
Gains or losses from exchange differences are recognized in the Statement Profit or Loss.
5. Other Information
5.1 Consolidated Financial Statements
In the closed financial year 2021, Corporate and Consolidated Financial Statements were
prepared, including, apart from the data of the Company, the data of the subsidiaries "AS
COMPANY CYPRUS LTD" and "AS KIDS TOYS S.R.L.", using the total consolidation method.
The corresponding financial information for the year 2021 referred to as the Group refer to
these companies.
5.2 Seasonality of activities
The demand from our customers for the Company's products and its subsidiaries in Cyprus and
Romania is subject to seasonal fluctuations that are historically increased during Easter and
Christmas time. Most of the customers are selling the products provided by the Company and its
subsidiaries during the Christmas time, for this reason collections in the second half of the year
are significantly higher than in the first half.
6. Operating Segments
The following information refers to the Company's Operating Segments, which are reported
separately in the Financial Statements.
The Operating Segments are defined in accordance with the Company's and Group's structure
and refer mainly to the separation of the Group's activity in Greece and abroad. Based on this
separation those responsible for the financial decision making, monitor the financial information
separately as disclosed by the Company and each of its subsidiaries included in the
consolidation. The responsible bodies for taking and monitoring the relevant decisions are the
Managing Director and the General Manager.
The turnover from the toy and computer trade operations for kids and the turnover for imported
kids clothing is analyzed by geographical area as follows:
Group
Company
Description of the
accounts
2021
2020
2021
2020
Sales in Greece
17.650.812
16.282.828
17.650.812
16.282.828
Sales abroad
5.044.860
3.324.535
3.091.976
1.950.992
Total
22.695.672
19.607.363
20.742.788
18.233.819
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
73
Sales abroad represent 22,33% of total consolidated sales for the current year, compared to
16,96% of the previous year.
7. Other Explanatory Information
7.1 Property, plant and equipment and assets’ rights of use
Property, plant and equipment are analysed as follows:
Group
Company
Account Description
2021
2020
2021
2020
Land
1.947.228
1.947.228
1.947.228
1.947.228
Buildings and building installations
2.275.546
2.589.835
2.275.546
2.589.835
Transportation
105.872
134.093
105.872
134.093
Furniture and Fixtures
102.854
122.101
88.446
115.104
Total
4.431.501
4.793.258
4.417.093
4.786.261
The investments of the Group and Company in fixed assets during the year amounted to €
55.792 and € 27.477 euro respectively.
There are no encumbrances on the Company's and the Group’s property.
The Company owns building, located in Oreokastro, Thessaloniki in its own land plot of
45.787,60 m
2
. The building facilities include spaces that cover all the Company's activities, for
storage and assembling of toys, offices and show rooms amounting to an area of 16,169,56 m2.
The acquisition values, depreciation expenses and net book values of the fixed assets are
analysed as follows:
Fixed assets table for the period 31 December 2021 and 31 December 2020:
GROUP
Acquisition Values
Land
Buildings and
building
installations
Machinery, and
Technical
installations
Transportation
Furniture and
fixtures
TOTAL
Balance at
31.12.2018
1.947.228
7.674.229
61.774
251.923
1.276.550
11.211.705
Purchases-additions of
the period 1.01 -
31.12.2020
0
8.003
0
52.375
74.747
135.124
Reductions-disposals of
the period 1.01 -
31.12.2020
0
0
0
-1.008
-17.393
-18.401
Other changes in
acquisition value
0
0
0
0
-1.733
-1.733
Balance at
31.12.2020
1.947.228
7.682.231
61.774
303.290
1.332.171
11.326.695
Purchases-Additions of
the period 1.01 -
31.12.2021
0
11.100
0
0
44.692
55.792
Reductions-disposals of
the period 1.01 -
31.12.2021
0
0
0
0
-13.860
-13.860
Balance at
31.12.2021
1.947.228
7.693.331
61.774
303.290
1.363.004
11.368.627
Accumulated
Depreciation
Land
Buildings and
building
installations
Machinery, and
Technical
installations
Transportation
Furniture and
fixtures
TOTAL
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
74
Balance at
31.12.2019
0
4.777.921
61.774
150.364
1.163.083
6.153.142
Depreciation for the
period 1.01 -
31.12.2020
0
314.475
0
19.841
63.781
398.096
Disposals of the period
0
0
0
0
-87
-87
Disposals of the period
1.01-31.12.2020
0
0
0
-1.008
-16.706
-17.714
Balance at
31.12.2020
0
5.092.396
61.774
169.196
1.210.070
6.533.437
Depreciation for the
period 1.01 -
31.12.2021
0
325.389
0
28.221
61.614
415.224
Disposals of the period
1.01 - 31.12.2021
0
0
0
0
-11.535
-11.535
Balance at
31.12.2021
0
5.417.786
61.774
197.417
1.260.149
6.937.126
Net book value at
31.12.2019
1.947.228
2.896.308
0
101.559
113.467
5.058.562
Net book value at
31.12.2020
1.947.228
2.589.835
0
134.093
122.101
4.793.258
Net book value at
31.12.2021
1.947.228
2.275.545
0
105.873
102.855
4.431.501
Company
Acquisition Values
Land
Buildings and
building
installations.
Machinery, and
Technical
installations
Transportation
Furniture and
fixtures
TOTAL
Balance at
31.12.2019
1.947.228
7.674.229
61.773
251.923
1.260.887
11.196.041
Purchases-additions of
the period 1.01 -
31.12.2020
0
8.003
0
52.375
73.184
133.561
Reductions-disposals of
the period 1.01 -
31.12.2020
0
0
0
-1.008
-17.393
-18.401
Balance at
31.12.2020
1.947.228
7.682.232
61.773
303.290
1.316.678
11.311.202
Purchases-additions of
the period 1.01 -
31.12.2021
0
11.100
0
0
16.377
27.477
Reductions-disposals of
the period 1.01 -
31.12.2021
0
0
0
0
-11.535
-11.535
Balance at
31.12.2021
1.947.228
7.693.331
61.773
303.290
1.321.520
11.327.143
Accumulated
Depreciation
Land
Buildings and
building
installations
Machinery, and
Technical
installations
Transportation
Furniture and
fixtures
TOTAL
Balance at
31.12.2019
0
4.777.921
61.773
150.364
1.156.181
6.146.239
Depreciation for the
period 1.01 -
31.12.2020
0
314.475
0
19.841
60.585
394.901
Disposals of the period
0
0
0
0
0
0
Disposals of the period
1.01-31.12.2020
0
0
0
-1.008
-15.192
-16.200
Balance at
31.12.2020
0
5.092.396
61.773
169.197
1.201.574
6.524.940
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
75
Depreciation for the
period 1.01 -
31.12.2021
0
325.389
0
28.221
43.035
396.645
Disposals of the period
1.01 - 31.12.2021
0
0
0
0
-11.535
-11.535
Balance at
31.12.2021
0
5.417.786
61.773
197.418
1.233.074
6.910.050
Net book value at
31.12.2019
1.947.228
2.896.308
0
101.559
104.706
5.049.801
Net book value at
31.12.2020
1.947.228
2.589.835
0
134.093
115.104
4.786.261
Net book value at
31.12.2021
1.947.228
2.275.546
0
105.872
88.446
4.417.093
Right-of-use assets
The right-of-use assets are analysed as follows:
Group
Company
Account description
2021
2020
2021
2020
Buildings
137.101
200.119
124.934
169.028
Transportation means
77.686
132.033
77.686
132.033
214.787
332.152
202.620
301.061
Company
Acquisition Values
Buildings
Transportation
TOTAL
Balance at 1.1.2021
257.217
223.868
481.085
Additions of the period 1.01 - 31.12.2021
0
0
0
Disposals of the period 1.01 - 31.12.2021
0
-9.361
-9.361
Balance at 31.12.2021
257.217
214.508
471.724
Accumulated Depreciation
Balance at 1.1.2021
88.189
91.836
180.024
Depreciation for the period 1.01 - 31.12.2021
44.094
49.241
93.335
Depreciation reduction for the period 1.01-
31.12.2021
0
-4.255
-4.255
Balance at 31.12.2021
132.283
136.822
269.105
Net book value at 1.1.2021
169.028
132.033
301.061
Net book value at 31.12.2021
124.934
77.686
202.620
Group
Acquisition Values
Buildings
Transportation
TOTAL
Balance at 1.1.2021
301.599
223.868
525.467
Additions of the period 1.01 - 31.12.2021
0
0
0
Disposals of the period 1.01 - 31.12.2021
-12.276
-9.361
-21.637
Balance at 31.12.2021
289.323
214.508
503.830
Accumulated Depreciation
Balance at 1.1.2021
101.480
91.836
193.315
Depreciation for the period 1.01 - 31.12.2021
50.742
49.241
99.983
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
76
Depreciation reduction for the period 1.01-
31.12.2021
0
-4.255
-4.255
Balance at 31.12.2021
152.222
136.822
289.044
Net book value at 1.1.2021
200.119
132.033
332.152
Net book value at 31.12.2021
137.101
77.686
214.787
7.2 Intangible assets
Intangible assets are analysed as follows:
Group
Company
Account description
2021
2020
2021
2020
Acquisition value of software programs
711.491
724.221
711.491
711.491
Accumulated amortization of software
programs
-593.592
-555.738
-593.592
-545.416
Total
117.900
168.463
117.900
166.075
Intangible assets include the acquisition value and accumulated depreciation of computer
software programs. Additions to the year amounted to € 0 for the Group and the Company,
while the corresponding amount in the previous year amounted to € 83.092. Depreciation for
the year amounted to € 48.175 for the Group and the Company, while the respective amounts
in the previous year amounted to € 40.166 and € 36.029.
7.3 Participations in subsidiaries
Participations in subsidiaries are analysed as follows:
Group
Company
Account Description
2021
2020
2021
2020
AS COMPANY CYPRUS LTD.
0
0
150.000
150.000
AS KIDS TOYS S.R.L
0
0
400.000
400.000
Total
0
0
550.000
550.000
“AS COMPANY CYPRUS LTD” is governed by and operates under Cypriot Law in the form of a
Limited Liability Company. The subsidiary was established in May 2016 with an initial capital of
€ 150.000, which was 100% covered by the parent company.
“AS KIDS TOYS SRL” is governed by and operates under Romanian Law in the form of a Limited
Liability Company. The subsidiary was established in February 2018 with an initial capital of
€ 400.000, which was 100% covered by the parent company.
7.4 Other non-current assets
Other non-current assets are analysed as follows:
Group
Company
Account Description
2021
2020
2021
2020
Guarantees given
16.197
16.006
14.191
13.968
Total
16.197
16.006
14.191
13.968
7.5 Inventories
Inventories are analysed as follows:
Group
Company
Account Description
2021
2020
2021
2020
Merchandises
3.960.905
3.942.196
3.960.534
3.933.525
Less: Provisions for inventory obsolescence
-675.532
-581.403
-675.532
-581.403
Advances for stock purchases
1.245.556
1.256.959
1.245.556
1.256.959
Total
4.530.930
4.617.751
4.530.559
4.609.080
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
77
The provision of inventory obsolescence of € 675.532 cover the slow moving and low sales level
inventory of the Company. Within the year, a provision for inventory obsolescence of €94.129
was recorded in the Comprehensive Income Statement. The advances for inventory purchases
refer to orders of imported goods from abroad.
The way the warehouse operates for 2019 has changed. The products are distributed directly by
the Company to the customers of its subsidiaries. The subsidiaries have no longer warehouses.
7.6 Accounts receivables
Accounts receivables are analysed as follows:
Group
Company
Account Description
2021
2020
2021
2020
Customers
5.399.364
4.891.346
4.840.028
4.567.111
Cheques Receivable
5.544.396
5.560.616
5.544.396
5.560.616
Notes Receivable
105.149
194.257
105.149
194.257
Total
11.048.909
10.646.219
10.489.573
10.321.984
Less: Provisions for impairment
-133.334
-133.334
-133.334
-133.334
total
10.915.575
10.512.885
10.356.239
10.188.650
The total Accounts receivables for 2021 is analysed as follows:
Group
Company
Not Outstanding balances
10.793.309
10.378.412
Outstanding balances
255.599
111.161
Total accounts receivables
11.048.909
10.489.573
The maturity of trade receivables that were outstanding is analysed as follows:
Group
Company
Up to 90 days
99.654
144
91 – 180 days
50.710
5.782
>181 days and more
105.235
105.235
TTotal
255.299
111.161
As of 2018, the Group applies the simplified approach of IAS 9 and calculates the lifetime
expected credit losses over its receivables.
At each balance sheet date, the Group performs an impairment test with the use of a table
based on which the expected credit losses are calculated. The maximum exposure to credit risk
on the Balance Sheet date is the carrying value of each class of receivables as stated above.
The information about the exposure of the Group and the Company to the credit risk is analyzed
as follows:
Group 2021
Non
receivable
Receivables
up to 90 days
Receivables
up to 91-80
days
Receivables
of more than
180 days
Total
Total receivables
10.793.309
99.654
50.710
105.235
11.048.909
Expected credit losses
9.714
90
46
95
9.944
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
78
Receivables depreciation provision
123.390
Total
133.334
Company 2021
Non
receivable
Receivables
up to 90 days
Receivables
up to 91-80
days
Receivables
of more than
180 days
Total
Total receivables
10.378.412
144
5.782
105.235
10.489.573
Expected credit losses
9.341
0
5
95
9.441
Receivables depreciation provision
123.893
Total
133.334
The provisions for impairment of accounts receivables of € 133.334 cover all potential losses of
the Company from non-collection of doubtful debts.
The movement of the provision for impairment of accounts receivables is as follows:
Group
Company
2021
2020
2021
2020
Opening balance
133.334
94.384
133.334
94.384
Additional provisions for the year
0
38.950
0
38.950
Closing Balance
133.334
133.334
133.334
133.334
7.7 Investments at fair value through P&L
Investments at fair value through P&L are analysed as follows:
Group
Company
2021
2020
2021
2020
Shares listed on the Athens Stock Exchange
823.698
0
823.698
0
Greek bonds
1.800.111
1.299.466
1.800.111
1.299.466
Foreign Mutual Funds
1.297.567
813.639
1.297.567
813.639
Foreign bonds
7.325.798
6.571.400
7.026.893
6.162.360
Τotal
11.247.174
8.684.505
10.948.269
8.275.465
Group
Company
Account description
2021
2020
2021
2020
Short-term investments in EUR
6.460.249
5.596.824
6.161.344
5.187.784
Short-term investments in USD
4.786.925
3.087.681
4.786.925
3.087.681
11.247.174
8.684.505
10.948.269
8.275.465
The valuation of bonds and securities as at 31.12.2021 amounted to € 183.337 which was
charged at the Statement of Profit or Loss and the accrued interest income amounted to €
101.472.
7.8 Other current assets
Other current assets are analysed as follows:
Group
Company
Account description
2021
2020
2021
2020
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
79
Other debtors
178.990
57.084
171.532
28.161
Accounts of management and
advances
0
39.718
0
38.238
Next years’ expenses
76.783
88.421
76.783
88.421
Payable income
24.477
178.538
346.458
178.538
280.251
363.760
594.774
333.358
7.9 Cash and cash equivalents
Cash and cash equivalents are analysed as follows:
Group
Company
Account description
2021
2020
2021
2020
Cash in hand
10.263
4.837
10.263
4.837
Deposits and time deposits
8.150.822
6.930.254
5.576.331
5.340.820
total
8.161.085
6.935.091
5.586.594
5.345.657
The analysis of cash and cash equivalents by currency is as follows:
Group
Company
Account description
2021
2020
2021
2020
EUR
7.449.067
4.354.973
5.245.090
3.043.156
Other currencies
712.018
2.580.118
341.505
2.302.500
Total
8.161.085
6.935.091
5.586.594
5.345.657
7.10 Paid Up Share capital and Reserves
With the decision of 22.12.2020 of the Extraordinary General Meeting of the Company's
shareholders, it was decided:
A) the increase of the share capital of the Company in the amount of € 74,509.17 with
capitalization of the reserve in excess of the share with an increase of the nominal value of the
share by € 0.00568 as well as the relevant amendment of article 5 of the Company's articles of
association on capital. Following the above increase, the share capital of the Company now
amounts to € 5,718,697.77 divided into 13,126,020 common registered shares, with a nominal
value of € 0.43568 each. The Corporate Operations Committee of the Athens Stock Exchange
was informed at its meeting of 04.02.2021 about the increase of the share capital with a share
premium reserve.
B) the increase of the share capital of the Company by the amount of € 2,944,475.43 with
capitalization of profits of previous years, in accordance with the provisions of article 24 of
N.4646 / 2019 as the relevant amendment of article 5 of the Company's articles of association
capital. After the above increase, the share capital of the Company now amounts to €
8,663,173.20 divided into 13,126,020 common registered shares, with a nominal value of € 0.66
each. The Corporate Operations Committee of the Athens Stock Exchange was informed at its
meeting of 04.02.2021 on the increase of the share capital by capitalization of profits of
previous years, in accordance with the provisions of article 24 of Law 4646 / 2019.
Due to the capitalization of profits of previous years based on the provisions of article 24 of Law
4646/2019 being equated with the distribution of a net dividend, the Company proceeded with
the return of withholding tax of 5%. The payment of the withheld tax in the amount of €
11,317.66 was completed within February 2021.
The accounts of share capital and reserves are analysed as follows:
Group
Company
Account description
2021
2020
2021
2020
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
80
Share capital – paid-in
(13.126.020 shares 0,66€ each)
8.663.173
8.663.173
8.663.173
8.663.173
Share premium reserve
0
0
0
0
Legal reserve
1.962.793
1.880.543
1.950.344
1.880.543
Reserve for the translation of share capital to
EUR
14.594
21.329
33.064
33.064
Tax-free reserves
278.200
278.200
278.200
278.200
Subsidiary absorption losses
-285.141
-285.141
-285.141
-285.141
Own shares
-116.826
-59.792
-116.826
-59.792
Retained earnings carried forward
23.115.053
21.107.225
21.043.702
19.700.593
Total
33.631.847
31.605.537
31.566.516
30.210.640
7.11 Lease liabilities
The analysis of long-term and short-term lease liabilities is as follows:
Group
Company
Long-term lease liabilities
2021
2020
2021
2020
Building leases
91.938
144.180
85.734
130.550
Transportation means leases
31.305
86.537
31.305
86.537
Total
123.243
230.717
117.039
217.087
Group
Company
Short-term lease liabilities
2021
2020
2021
2020
Building leases
52.764
63.042
44.816
43.493
Transportation means leases
51.754
51.294
51.754
51.294
Total
104.518
114.336
96.570
94.787
7.12 Deferred Tax liabilities
According to the current tax regime in Greece, companies are subject to a tax rate of 22% on
their total profits, as amended by Article 120 of Law 4799/2021.
The deferred tax assets and liabilities were calculated by applying the tax rates that correspond
to the fiscal year in which the recovery of every category of the temporary difference between
carrying value and tax base is expected.
The deferred tax assets and liabilities offset if there is an enforceable legal right to offset the
current tax assets with the current tax liabilities and if the deferred tax refers to the same tax
jurisdiction.
The Deferred Tax Liabilities for the Group and the Company are analyzed as follows:
2020
Impact the of
change in
income tax
rates
Amoun
ts
recogni
zed in
P&L
Amounts
recognized
in OCI
2021
Deferred tax (liabilities)
Land
217.661
-18.138
199.523
Buildings
205.288
-17.107
-9.272
178.909
Total Deferred tax (liabilities)
422.949
-35.246
-9.272
0
378.431
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
81
Deferred tax (receivables)
Valuation of receivables – liabilities in foreign
currency
32.853
-2.738
-30.192
-77
Write off of establishment and initial installation
expenses
190,86
-15,91
-44
131
Provision for inventory obsolescence
133.537
-11.128
20.708
143.117
Provision for impairment of doubtful receivables
17.431
-1.453
0
15.979
Provision for impairment of securities
22.153
-1.846
-31.053
-10.746
Provision for staff leaving benefits
15.397
-1.283
4.297
-365
18.046
Differences from implementation of IFRS 16
2.595
-216
38,56
2.417
Differences from impairment of other PVPU
-1037,03
-1.037
Total Deferred tax (assets)
224.157
-18.680
-37.282
-365
167.830
Total Deferred Tax
198.792
-16.566
28.011
365
210.601
2019
(rephrased)
Amounts
recognised in
P&L
Amounts
recognised in
OCI
2020
(rephrased)
Deferred tax (liabilities)
Land
217.661
-0,1
0
217.661
Buildings
215.403
-10.115
0
205.288
Total Deferred tax (liabilities)
433.064
-10.115
0
422.949
Deferred tax (assets)
Valuation of receivables – liabilities in foreign
currency
1.233
31.620
0
32.853
Write off of establishment and initial installation
expenses
239
-48
0
190,86
Provision for inventory obsolescence
153.768
-20.231
0
133.537
Provision for impairment of doubtful debts
8.083
9.348
0
17.431
Provision for impairment of securities
-54.552
76.705
0
22.153
Provision for staff leaving benefits
11.317
3.329
750
15.397
Differences from implementation of IFRS 16
1.731
865
0
2.595
Total Deferred tax (assets)
121.819
101.588
750
224.157
Total Deferred Tax
311.245
-111.703
-750
198.792
7.13 Staff leaving benefits
Under Greek labour law, employees are entitled to a lump-sum compensation in the event of
their dismissal or retirement, the amount of which depends on the length of service and on the
employee's remuneration at the day of their dismissal or retirement. Employees who resign or
are justifiably dismissed are not entitled to compensation. If the employee remains in the
Company until retirement, is entitled to a lump sum equal to 40% of the compensation he/she
would receive had he/she been dismissed that day, according to Law 2112/1920.
The movement of the net obligation in the Financial Statements as at 31.12.2021 is as follows:
The provision for retirement compensation is shown in the Financial Statements in accordance
with IAS 19 “Employee Benefits” and is based on an independent actuarial valuation.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
82
The details and the main assumptions of the actuarial valuation as at 31 December 2021 and
31 December 2020 are analysed as follows:
Group
Company
Changes in Net Obligation
2021
2020
2021
2020
Net Obligation at the beginning of the year
64.153
47.156
64.153
47.156
Benefits paid by the employer
-56.852
-21.019
-56.852
-21.019
Expense recognized in the Financial
Statements
76.729
34.890
76.729
34.890
Result recognized in Other Comprehensive
Income
-2.003
3.126
-2.003
3.126
Net Obligation at the Statement of
Financial Position
82.027
64.153
82.027
64.153
Group
Company
Reconciliation of total obligation
2021
2020
2021
2020
Net Obligation at the beginning of the year
64.153
47.156
64.153
47.156
Current service costs
19.342
17.716
19.342
17.716
Cost of previous services due to amendments
278
0
278
0
Interest cost
257
424
257
424
Termination Benefits / Effect of impairment/
Settlement
56.852
16.750
56.852
16.750
Less Benefits Paid
-56.852
-21.019
-56.852
-21.019
Actuarial (gains)/ losses for the year
-2.003
3.126
-2.003
3.126
Total obligation at year end
82.027
64.153
82.027
64.153
The actuarial assumptions used in the actuarial valuation are as follows:
1. Discount Rate : 1% on 31.12.2021
2. Average Annual rate of long-term growth of inflation : 1,7%
3. Average annual long-term increase of salaries : 1,7%
4. Valuation date : 31.12.2021
5. For the Estimated Retirement Benefit, the application of L. 2112/1920 as amended by L.
4093/2012 was estimated upon retirement
Sensitivity analysis
2021
2020
Present value of Defined Benefit Obligations
82.027
64.153
Calculation with Discount rate +0,5%
78.578
61.157
Calculation with Discount rate -0,5%
85.676
67.336
Sensitivity analysis of current service cost
2021
2020
Current service cost
19.342
17.716
Calculation with Discount rate +0,5%
18.328
16.712
Calculation with Discount rate -0,5%
20.424
18.792
7.14 Other long-term liabilities
Long-term liabilities refer to grants and are analyzed as follows:
Group
Company
Account description
2021
2020
2021
2020
Fixed asset investments grants
46.671
50.320
46.671
50.320
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
83
total
46.671
50.320
46.671
50.320
7.15 Accounts payables
Accounts payables are analysed as follows:
Group
Company
Account description
2021
2020
2021
2020
Suppliers
2.552.723
1.809.094
2.283.193
1.809.094
Cheques Payable
510.805
49.381
510.805
49.381
total
3.063.528
1.858.475
2.793.998
1.858.475
7.16 Short-term borrowings
There are no short-term borrowing liabilities.
7.17 Other short-term liabilities
Other short-term liabilities are analysed as follows:
Group
Company
Account descriptiom
2021
2020
2021
2020
Customer advances
220.185
241.833
219.986
241.833
Liabilities from taxes - duties
781.875
572.336
576.650
428.014
Social security
120.847
129.328
117.064
119.291
Accrued expenses
434.538
230.978
237.066
210.898
Sundry creditors
881.699
963.763
1.040.230
711.981
Cheques payable
213.820
163.303
213.820
163.303
Total
2.652.964
2.301.541
2.404.816
1.875.320
7.18 Turnover
Turnover is analysed as follows:
Group
Company
2021
2020
2021
2020
Domestic wholesales of merchandises
17.539.719
16.169.015
17.539.719
16.169.015
Wholesales of merchandises in EU
4.165.806
3.152.528
2.212.922
1.778.984
Wholesales of merchandises in Third
Countries
879.054
172.007
879.054
172.007
Retail sales of merchandises
109.866
110.930
109.866
110.930
Sales of other stock and scrap
1.227
2.883
1.227
2.883
Total
22.695.672
19.607.363
20.742.788
18.233.819
7.19 Cost of Sales
Cost of sales is analysed as follows:
Group
Company
2021
2020
2021
2020
Cost of goods sold
11.996.417
10.202.817
11.754.409
10.125.155
Cost of consumed materials
52.702
45.677
52.702
45.677
Cost of Self-Consumed goods
-19.917
-23.285
-19.917
-23.285
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
84
Provisions - Impairment of inventory –
94.128
-84.294
94.128
-84.294
Foreign Exchange Differences
-20.540
18.163
-20.540
18.163
Total
12.102.790
10.159.078
11.860.782
10.081.416
7.20 Other income
Other income is analysed as follows:
Group
Company
Account description
2021
2020
2021
2020
Income from transportation of goods sold
8.815
2.972
8.815
2.972
Other income
232.791
16.127
421.186
166.423
total
241.606
19.099
430.001
169.395
Other income includes tax returns (ENFIA) of a total amount of 205.843€.
7.21 Administrative expenses
Administrative expenses are analysed as follows:
Group
Company
Account description
2021
2020
2021
2020
Personnel expenses
1.151.278
1.098.102
1.034.918
991.237
Third party fees and expenses
634.116
582.143
535.539
466.648
Third party utilities
131.602
143.312
130.862
143.137
Taxes and duties
66.937
51.917
51.969
51.917
Miscellaneous expenses
120.833
107.176
119.592
162.073
Utilization provisions
4.969
9.035
4.969
9.035
Depreciation-Impairment
410.480
398.085
400.389
387.418
Other (income)/ expenses
-18.810
-69.533
-18.810
-69.857
2.501.404
2.320.239
2.259.428
2.141.608
7.22 Distribution expenses
Distribution expenses are analysed as follows:
Group
Company
Account description
2021
2020
2021
2020
Personnel expenses
1.752.671
1.794.318
1.644.322
1.681.683
Third party fees
877.226
667.302
713.319
475.213
Utilities
128.781
129.287
108.689
118.600
Taxes and duties
58.873
66.449
51.208
55.028
Miscellaneous expenses
1.823.973
1.545.063
1.649.342
1.449.486
Other operating provisions
12.920
15.019
12.920
15.119
Depreciation-Impairment
146.024
149.226
130.888
133.228
Other –expenses/ (income)
34.730
0
34.730
0
4.835.197
4.366.664
4.345.417
3.928.357
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
85
Miscellaneous expenses contain advertising and promotional expenses.
7.23 Research and development expenses
Research and development expenses are analysed as follows:
Group
Company
Account description
2021
2020
2021
2020
Personnel expenses
155.546
157.661
155.546
157.661
Utilities
6.349
5.819
6.349
5.819
Taxes and duties
52
0
52
0
Miscellaneous expenses
8.075
8.977
8.075
8.977
Depreciation-Impairment
6.879
5.342
6.879
5.342
Other operating provisions
1.988
40.406
1.988
40.406
178.888
218.205
178.888
218.205
The research and development expenses are related with costs incurred by a specialized
department of the Company which aims to develop new products.
Payroll costs
The payroll costs included in the Financial Statements of the Company and the Group as at
31 December 2021 and 31 December 2020 are analysed as follows:
Group
Company
Account description
2021
2020
2021
2020
Salaries and wages
2.421.574
2.482.861
2.196.866
2.276.617
Employer contributions
465.836
531.577
465.836
518.321
Other staff costs
172.085
35.644
172.085
35.644
Total
3.059.494
3.050.082
2.834.786
2.830.582
The above payroll costs are allocated to the various operations of the Company and the Group
as follows:
Group
Company
Account description
2021
2020
2021
2020
Administrative Expenses
1.151.278
1.098.102
1.034.918
991.237
Distribution Expenses
1.752.671
1.794.318
1.644.322
1.681.683
Research and Development Expenses
155.546
157.661
155.546
157.661
total
3.059.494
3.050.082
2.834.786
2.830.582
7.24 Depreciation – Impairment
Depreciation – impairment expenses are analysed as follows:
Group
Company
Account description
2021
2020
2021
2020
Depreciation of Buildings
325.389
314.475
325.389
314.475
Depreciation of leased Buildings
50.742
63.426
44.094
44.094
Depreciation of Vehicles
28.221
19.841
28.221
19.841
Depreciation of leased Vehicles
49.241
50.964
49.241
50.964
Depreciation of furniture and other equipment
61.614
63.781
43.035
60.585
Depreciation if intangible assets
48.176
40.166
48.176
36.029
Total
563.383
552.653
538.156
525.988
The above depreciation expenses are allocated to the Company's operations as below:
Group
Company
Account description
2021
2020
2021
2020
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
86
Administration Expenses
410.480
398.085
400.389
387.418
Distribution Expenses
146.024
149.226
130.888
133.228
Research and Development costs
6.879
5.342
6.879
5.342
Total
563.382
552.653
538.155
525.988
Based on the above, the agreement of Profit before taxes, financial, investment results and
amortization with Net Profit after taxes is as follows:
Όμιλος
Εταιρία
2021
2020
2021
2020
Net profit after taxes
3.184.247
1.881.067
2.507.080
1.385.020
Adjustments
Income taxes
7.26
792.684
524.016
695.711
463.478
(Revenue) / Financial operating
expenses - net
7.25
-657.934
157.193
-674.517
185.129
Depreciation Impairment
7.24
563.382
552.653
538.156
525.988
Earnings before taxes, financial,
investment results and
depreciation
3.882.380
3.114.929
3.066.429
2.559.615
7.25 Financial expenses
The net financial expenses/income are analysed as follows:
Group
Company
Account description
2021
2020
2021
2020
Lease liabilities interests
17.094
17.836
11.122
13.115
Other related bank expenses
62.777
68.957
62.777
53.586
Interest income and Income from securities
-483.588
-158.165
-483.588
-156.232
(Profits)/Losses from the disposal of securities
-81.492
-18.032
-81.492
18.221
(Profits)/Losses from the valuation of financial
instruments
-172.725
246.597
-183.337
256.439
total
-657.934
157.193
-674.517
185.129
7.26 Taxes
The taxes for the year of the Company and Group are analyzed as follows:
Group
Company
Account description
2021
2020
(rephrased)
2021
2020
(rephrased)
Income tax for the year
781.480
630.970
684.267
570.432
Deferred taxes recognized in the statement of Profit
or Loss
11.444
-111.703
11.444
-111.703
Income tax of previous years
-240
4.748
0
4.748
Total taxes recognized in the Income
Statement (a)
792.685
524.016
695.711
463.478
Deferred taxes recognized in Other Comprehensive
Income (b)
365
-750
365
-750
Total (a)+(b)
793.049
523.265
696.076
462.727
The table below shows the reconciliation of Income Tax:
Group
Company
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
87
Account description
2021
2020
2021
2020
Profits before taxes
3.976.932
2.405.083
3.202.791
1.848.498
Tax rate of parent company
22%
24%
22%
24%
Income tax
874.925
577.220
704.614
443.639
Effect of tax rates in foreign jurisdictions
-68.024
-60.848
0
0
Income tax not recognised for tax purposes
10.388
17.343
7.663
15.092
Effect of changes in tax rates
-16.566
0
-16.566
0
Tax difference of previous years
-240
0
0
0
Tax of other differences
-7.799
-9.699
0
4.746
Deferred taxes recognized in Other Comprehensive
Income
365
-750
365
-750
Total
793.049
523.265
696.076
462.727
Effective tax rate
19,94%
21,76%
21,73%
25,03%
The corporate income tax rate for legal entities in Greece is 22% (2020: 24%). The tax rates in
the countries where the Group operates range from 12.5% to 16.0%.
The Company has received unqualified tax compliance reports from its statutory auditor for each
year from 2011 to 2020 in accordance with the Greek tax legislation (2011-2013 in accordance
with the provisions of article 82 of Law 2238/1994 and 2014-2020 according to the provisions of
article 65A of Law 4174/2013). The Company does not expect any additional taxes to be
incurred in the context of the tax audit from Greek tax authorities for the years from 2016 to
2021. In addition, on the basis of risk analysis criteria, Greek tax authorities may select the
Company for a tax audit in the context of audits carried out on companies that have received
unqualified tax compliance certificate from its Statutory Auditor. In this case, the Greek tax
authorities have the right to carry out tax audits for the years that they will select, taking into
account the work for the issuance of the tax compliance certificate. The Company has not
received any audit mandate from the Greek tax authorities for the years 2016 to 2020.
It should be noted that as at 31.12.2021 the years up to 31.12.2015 were statutorily barred
according to the provisions of paragraph 1 of article 36 of Law 4174/2013.
For the year 2021, tax audit is still in progress and the Management does not expect a material
change in the tax liabilities of the respective year. The audit is expected to be completed after
the publication of the Financial Statements for the period. Upon completion of this tax audit, the
Management of the Company does not expect that tax liabilities will arise other than those
recorded and reflected in the Financial Statements.
The unaudited tax years of the Group are analyzed as follows:
Company Headquarters Unaudited tax years
AS COMPANY A.E. Greece 2016-2021
AS COMPANY CYPRUS LTD. Cyprus 2016 – 2021
AS KIDS TOYS SRL Romania 2018 - 2021
We estimate that in case of a tax audit of the subsidiaries in Cyprus and Romania, any additional
tax liabilities that may arise, will not have any material effect on the Financial Statements of the
Group.
8. Related Parties Transactions
As related parties within the definitions of IAS 24 are in addition to subsidiaries and affiliates,
also management and members of the Board of Directors.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
88
Transactions with related parties during the year 2021, i.e. intercompany sales / purchases and
intercompany balances, were all Transactions within the scope of the Company's business
operations, and in market terms.
The Company's activities and its affiliated companies concerns AS COMPANY CYPRUS LTD and
AS KIDS TOYS S.R.L. No intercompany transaction was conducted beyond those described
above.
Sales
2021
2020
AS COMPANY CYPRUS LTD
1.235.473
868.054
AS KIDS TOYS S.R.L
817.641
546.715
Total
2.053.114
1.414.769
Purchases
2021
2020
AS COMPANY CYPRUS LTD
0
0
AS KIDS TOYS S.R.L
0
63.186
Total
0
63.186
Other Transactions
2021
2020
AS COMPANY CYPRUS LTD
100.739
82.911
AS KIDS TOYS S.R.L
84.769
73.492
Total
185.507
156.403
Balances from trading Transactions
Receivables
2021
2020
AS COMPANY CYPRUS LTD
795.798
584.494
AS KIDS TOYS S.R.L
454.897
376.929
Total
1.250.694
961.423
Payables
2021
2020
AS COMPANY CYPRUS LTD
0
0
AS KIDS TOYS S.R.L
0
0
Total
0
0
The benefits to the directors and the Company's management are analyzed as follows:
Remuneration and Transactions of Management
Group
Company
Short – term employee benefits
2021
2020
2021
2020
Salaries
580.181
647.360
504.931
573.349
Social Security cost
94.472
116.949
85.341
108.383
Total
674.653
764.309
590.272
681.733
Remunerations and Transactions of Board of Directors
Members
Group
Company
Short – term benefits
2021
2020
2021
2020
Salaries
332.160
278.800
307.160
260.800
Social Security cost
50.843
41.584
50.640
41.584
Stamp duty
3.686
3.130
3.686
3.130
Other benefits
34.140
33.365
34.140
33.365
Total
420.829
356.879
395.626
338.879
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
89
No loans have been granted to the Board of Director members, or to Management (and their
families). There were no changes in the transactions between the Company and its related
persons which could have a material impact on the Company's financial position and
performance.
The fees paid during the year 2021 to the Chairman of the Board. Mr. Efstratios Andreadis, the
Vice President of the Board. Mr. Anastasia Andreadou and the non-executive members Mr.
Ioannis Apostolakos, Theofilos Mehteridis and Apostolos Petalas, relate to remuneration in their
capacity as members of the Board. The Company does not pay remuneration to the members of
the Board of Directors, for their capacity as Members of the Audit Committee and the
Remunerations and Nominations Committee. In addition, the remuneration of the resigned non-
executive member of the Board of Directors, Mr.Petros Iakovou on 25.6.2021 and the new
member of the Board of Directors, Mr.Michail Zarkadis, relate to remuneration in their capacity
as members of the Board of Directors. To the non-executive Member of the BoB, Theofilos
Mehteridis fees were also paid due to his provision of customs services, in the context of his
professional cooperation with the Company, based on a relevant evaluation of the Board. The
fees paid to the executive member of the Board. Mr. Theodora Koufou, concern the provision of
dependent work services to the Company throughout the year. The non-executive member Mr.
Konstantinos Andreadis did not receive fees from the Company, but from the subsidiary of
Cyprus, to which he provides his services. The executives who are not members of the Board of
Directors, received remuneration based on the contracts of employment they have with the
Company.
9. Main Risks and Uncertainties
The activities of the Company and the Group are exposed to a number of risks. The risks and
uncertainties are described in detail in this Annual Financial Report for the year 2021.
The main risks that the Company and the Group are exposed to are:
● Exchange rate risk
● Interest rate risk
● Risk from commodity prices fluctuations and dependence for the supply of the goods.
● Credit risk and liquidity risk
● Insurance risk
Group Management aims to limit the potential negative impact of these risks on its financial
results and is constantly adapting to the new circumstances so as to maintain its activities
unaffected. Particularly:
(a) Foreign Exchange risk
This specific risk relates to the foreign exchange rate between euro and other currencies that
related to the sales and purchases of the Company and the Subsidiaries.
The Group carries out a significant part of its imports from China - Hong Kong which are
invoiced in US dollars (USD). In 2021, purchases in dollars comprised 60,4 % of total purchases,
compared to 71,7 % of the previous year's purchases. The value of imports in dollars (USD) is -
3,3% lower than the same period last year.
The Group maintains cash and investment products in dollars (USD), which cover 49,6% of the
imports value in dollars made within 2021.
The average foreign exchange rate between euro/dollar the last 3 years is as follows:
2019
2020
2021
Average foreign exchange
rate
1,1195
1,1419
1,1827
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
90
Annual change %
-5,21%
2,00%
3,6%
The Group in 2021 did not use financial instruments to reduce its exposure from foreign
exchange risk arising from the markets.
(b) Interest rate risk
The Group's companies have credit limits in banks, but due to their significant liquidity, they
have not proceeded to bank borrowing in 2021 and all their working capital needs are financed
by own available cash.
The Group does not use derivative financial instruments to reduce its exposure to the interest
rate risk at the date of preparation of the Statement of Financial Position.
Management estimates that the aforementioned risk is not expected to substantially affect the
financial position of the Company and the Group.
(c) Risk from commodity prices fluctuations and dependence for the supply of the goods.
Given that most of the toys traded by the Company and its Subsidiaries are imported from
China, any change in trade relations between China and the European Union, or any change in
the exchange rate between CNY/USD given that most of the of the Group's purchases are made
in USD, may affect positively or negatively, on the one hand, the supply of customers and sales
of the Group and on the other the Cost of sales and Profitability.
The Company continuously monitors the financial data of the Chinese market by maintaining
long lasting relationships with its suppliers. The Company also participate in exhibitions in China
with the purpose of setting up preferred suppliers list, with whom it could enter into a business
relationship.
(d) Credit risk and liquidity risk
It concerns the risk that the Company or the Group may face if a customer fails to fulfil its
contractual obligations. The Group and the Company, in order to reduce their credit risk, apply a
rational credit policy, taking into account any market information collected from data banks for
the credibility of their customers. The receivables of the Group and the Company derive mainly
from wholesale, while a significant part of the receivables derive from large customers. The
financial position of its customers is continuously monitored by the Group and the Company by
controlling the volume of credits as well as the credit limits provided. If deemed necessary
additional collaterals and guarantees are obtained.
Due to the size of the Company's trading circuit, the potential credit risk for the Group currently
concerns mainly the Company.
Liquidity risk exists in the event where the Group cannot fulfil its financial obligations. As
appears in the financial statements, both at Company and at Group level, the liquidity risk is
fully controlled (see working capital ratio).
GROUP 31.12.2021 31.12.2020
Current Assets/ Current Liabilities 603,6% 727,9%
COMPANY 31.12.2021 31.12.2020
Current Assets/ Current Liabilities 604,6% 751,0%
As far as the cash flow risk is concerned, it is noted that the Company and the Subsidiary in
Cyprus are adequately protected, due to: a) their positive cash flows as mentioned above, b)
the high credit rating from the banking institutions, c) the financial assets of the Company,
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
91
whose carrying amount in the financial statements does not deviate from their fair value, d)
maintaining cash at credible banks e) placing cash to trading investments.
The subsidiary in Romania as of 31.12.2021 had € 370.514 in cash and has secured a funding
line of € 700.000 which has not been used as of to date.
Due to the seasonality in the Group's products, a rational management of working capital is
required because in any other case additional financial costs may burden its results. The Group
has sufficient funding lines from Banking Institutions.
The tables below summarize the maturities of the Company's and the Group's financial liabilities
at the date of preparation of the financial statements based on the payments terms resulting
from the relevant loan agreements or the agreements with the counterparties.
Group
Total
Up to 1 year
From 1 to 5 years
2021
2020
2021
2020
2021
2020
Accounts payables
3.063.528
1.858.475
3.063.528
1.858.475
0 0
0
Lease liabilities
227.760
345.053
104.518
114.336
123.242
230.717
Other short-term liabilities
2.652.964
2.301.541
2.652.964
2.301.541
0
0
Total
5.944.252
4.505.069
5.821.009
4.274.352
123.242
230.717
Company
Total
Up to 1 year
From 1 to 5 years
2021
2020
2021
2020
2021
2020
Lease liabilities
213.608
311.874
96.570
94.787
117.038
217.087
Accounts payables
2.793.998
1.858.475
2.793.998
1.858.475
0
0
Other short-term liabilities
2.404.816
1.875.320
2.404.816
1.875.320
0
0
Total
5.412.422
4.045.669
5.295.384
3.828.582
117.038
217.087
Based on the above facts, the Group's Management estimates that Cash and Short Term
Investments, in addition to the abovementioned liquidity capabilities, adequately offset the
aforementioned risks.
(e) Insurance Risk (non-financial risk)
Given that most of the Company's goods are sent from its Warehouse to the customers, the
Company should be safeguarded from its exposure to counterparty risk by insuring its products.
To this end, the Company insures its facilities by a consortium of insurance companies, which
provides it with adequate insurance coverage for all major risks.
The subsidiaries of Romania and Cyprus do not have their own warehouses and the handling of
the goods takes place through the warehouse facilities of the Company. The products are
insured during their transport, both to the Company's warehouses, and until their delivery to the
subsidiaries.
Other risks
The demand for the Company's products is affected by external factors such as economic
uncertainty, reduced consumption and consumer preference for products with affordable sale
price. In this context, the Company's Management has selected quality products that are
attractive to consumers throughout the year.
The Company makes short-term investments (mainly bonds) after first assessing the relevant
evaluations by international credit rating companies.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
92
10. Fair value and hierarchy of fair values
The Group and the Company apply the below hierarchy for the measurement and disclosure of
the fair value of the assets and liabilities:
● Level 1: Quoted prices (unadjusted) for financial assets that are negotiated in active
markets.
● Level 2: Observable data for the asset and liabilities valuated, other than quoted prices
included within Level 1, such as quoted prices for similar assets, quoted prices in non-active
markets or other assets that are either observable or can be supported by observable assets
(for example prices that result from observable data), for almost all of the total duration of
the financial instrument.
● Level 3: Inputs for the asset and liabilities valuated that are not based in observable market
data (unobservable data). If for the measurement of fair value, observable data are used
which require significant adjustments that are based on unobservable data, the fair value is
categorized in Level 3. Level 3 contains financial instruments, whose value is measured by
using valuation models, discounted cash flows and similar techniques and products for
which the measurement of fair value requires significant judgment or estimation by the
Management.
The Group’s and the Company’s fair value investments are categorized in Level 1, except for the
Mutual Funds, which are categorized in Level 2.
As of 1 January 2009 the Company and the Group applies the amendment of IFRS 7 which
requires the disclosure of the financial instruments that are measured in fair value through the
above level-hierarchy.
The fair value of the below financial assets and liabilities of the Group and the Company is close
to their book value:
— Other non-current assets
— Accounts receivables
— Other current assets
— Cash and cash equivalents
— Long-term lease liabilities
— Other long-term liabilities
— Accounts payables- Short-term borrowings
— Short-term lease liabilities
— Other short-term liabilities
It is noted that the Other current assets include future expenses and operating income
receivable for the Company (2021: €90.476,2020: € 266,959,) and Group (2021 : €90.476,
2020 : €96.803) respectively which are not financial assets.
“Other short-term liabilities” include liabilities from taxes, fees, insurance companies and
accrued expenses of the Company for 2021 and 2020 totaling € 930.781 and € 1.017.593
respectively and for the Group for 2021 and 2020 totaling € 1.221.103 and € 1.120.373
respectively which are not financial data.
11. Commitments and contingent liabilities – Guarantees granted
a) The Company’s commitments refer to letter of guarantees issued by Banks.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
93
The subsidiary AS KIDS TOYS S.R.L. concluded a credit line agreement with ALPHA BANK
ROMANIA S.A., under the terms of the Romanian Bank System. The Company provided
guarantee to the subsidiary by the form of a letter of guarantee issued by ALPHA BANK
AE, amounted to € 200.000 to ALPHA BANK ROMANIA S.A. Until the date of the Financial
Statements publication, the credit line has not been used by the subsidiary.
b) As of 31 December 2021 the Company and the Group had active operating lease
agreements for the rental of transportation means and buildings. Before the adoption of
the IFRS 16, these leases were classified as operating leases according to IAS 17.
c) The Company provides guarantee amount to € 500.000 to its subsidiary in Cyprus for the
funding of its working capital if needed. The subsidiary in Cyprus did not make use of this
borrowed funds during 2021.
d) There are no court or under arbitration disputes of the Company as well as court or
arbitrary bodies decisions that have or may have significant impact in the financial
position or operation of the Company.
In addition to the above, there are no other significant contingent liabilities.
Legal cases
(1) The Company hold against her former customer “KOUKOU CHILDREN TOYS SOCIETE
ANONYME”, claim in capital amount of €1.352.782,45. The debtor went bankrupt. Given
the debtor’s small amount of assets of bankruptcy compared with the verified third party
claims among which are the Greek State and social security funds, it is assumed that the
Company’s claim will not be satisfied and it was written off on 31.12.2014 according to
the law. The Company continues to follow up on the bankruptcy process which is still in
progress.
(2) The Company holds claims in court against third parties for sales of goods, in the context
of its usual operations. Given the small disputed amount compared with the Company’s
financial figures, it can be safely assumed that a potential non collection, will not affect
substantially the Company’s Net Equity and the Group’s operation in general.
(3) With the lawsuit of a Swedish company on 23.12.19 to the Athens Multi-Member Court of
First Instance, the ban of a specific product is sought. The lawsuit that is pending, does
not have a claim for payment of any amount as compensation. Even the most unfavorable
for the Company development of the pending lawsuit, given the strong financial and
capital position of the company, it is estimated that it cannot have a significant and
substantial impact on the size of the company.
12. Earnings per share
The earnings per share of the Company are calculated after dividing the total comprehensive
income of the period by the weighted average number of shares that were outstanding during
the period as follows:
Group
Company
Account description
2021
2020
2021
2020
Total Comprehensive Income after taxes
attributable to the shareholders of the
Company
3.184.247
1.881.067
2.507.080
1.385.020
Common Shares issued on January 1
st
13.126.020
13.126.020
13.126.020
13.126.020
Minus : Effect of holding own shares
-38.901
-21.931
-38.901
-21.931
Weighted average number of shares
13.087.119
13.104.089
13.087.119
13.104.089
Earnings per share
0,2433
0,1435
0,1916
0,1057
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
94
13. Audit Fees
The audit of the Financial Statements of the Company and the Group for the current year was
assigned by the Ordinary Annual General Meeting of the Shareholders to the audit firm KPMG
Certified Auditors S.A. with the fees amounted to € 29.500 for the statutory audit and € 15.000
for the tax compliance assurance services. The auditors' fees regarding the audit of the Financial
Statements of 2021 for the two subsidiaries amount to a total of € 18.000. Other services
provided to the Company during the year amount to a total of € 8.000, and permitted non-
auditory services to a total of €11.000.
14. Subsequent events after the date of the Financial Position
A. New program for the purchase of Own Shares
Pursuant to the decisions of the Ordinary General Meeting of Shareholders of 25.06.2021 and
the decision of the Board of Directors of 25.11.2021, in the framework of the Own Share
Acquisition Program, the Company announced on 25.11.2021 the start of implementation of the
Plan for the Purchase of own shares, according to which the purchase of up to the number of
656,301 shares of the Company until 25.06.2023 is foreseen, with a range of purchase prices
from € 0.50 / share (minimum) to € 4.00 / share (maximum). Up to 31/03/2022, 60.825 own
shares have been purchased with a total nominal value of € 40.144,50, with an average
purchase price of € 1,957 representing 0,46339% of the capital.
B. Other risks
After the opening of the retail following the lifting of the lockdown, our activities have gradually
returned to normal and management believes that based on the current development of the
pandemic and, having approached a critical point of immunity, there is no risk of any impact on
the financial results for the financial year 2022.
The recent geopolitical events in Ukraine have caused uncertainty in global markets. The
Company has no operations in Ukraine and Russia, which will not directly affect the financial
results for fiscal 2022. However, there has been a moderation in consumer spending due to the
general negative climate and uncertainty.
C. In the context of its Digital Transformation, the Group invests in new technologies, for this
reason it chose SAP Business One as its new ERP.
Objectives with the implementation of the new ERP:
• Improved performance and efficiency of internal processes.
• The best customer service.
• Faster and more efficient decision-making
• Support of profitable growth.
Its production operation is scheduled to begin on January 1, 2023. At the same time, the Group
in 2022 continues its investment in digitization by creating a B2B platform that will start
operating at the end of 2022.
There are no other events subsequent to the Financial Statements, which relate, either to the
Group or to the Company, to which reference is required by International Financial Reporting
Standards.
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.
Annual Financial Report of the financial year from 1 January 2021
to 31 December 2021
95
Thessaloniki, 14 April 2021
PRESIDENT OF B.O.D. &
MANAGING DIRECTOR
EFSTRATIOS Κ. ANDREADIS
ID No ΑΡ 235479
EXECUTIVE VICE-PRESIDENT OF B.O.D
ANASTASIA Ε. ANDREADOU
ID No AH 181790
CHIEF FINANCIAL OFFICER
PANAGIOTIS V. PAPASPYROU
ID No ΑΕ 032224
License: 0019079 A' Class