0
MCI VENTURE PROJECTS
LIMITED VI JOINT-STOCK PARTNERSHIP
Financial statements
for a period
01.11.2015 – 31.10.2016
Monitor ERP System Polska Spółka z ograniczoną odpowiedzialnością
Introduction and other explanatory information is a integrally part of financial statements
1
Financial statements
For a period 01.11.2015 – 31.10.2016
Declaration by the Management Board on the accuracy of the prepared financial statements
These financial statements have been prepared in accordance with International Financial Reporting
Standards as adopted by the European Union, on the historical cost basis (adjusted for the effects of
hyperinflation in respect of property, plant and equipment and equity), except for available-for-sale financial
assets and derivatives measured at fair value.
Page
Introduction ..................................................................................................................................................... 2
Statement of financial position (balance sheet) ........................................................................................ 17
Statement of profit and loss......................................................................................................................... 19
Statement of comperhensive income ......................................................................................................... 20
Statement of cash flows ............................................................................................................................... 20
Statement of changes in equity ................................................................................................................... 21
Accounting policies and other explanatory information ......................................................................... 22
Financial statements for a year 2016 is prepared for a special purposes. Sometimes company does not present
immaterial information, even if a given standard (IFRS) describes it as the minimum scope of disclosure.
Company may however provide information, which is not reguired if it could lead to a better understanding
by the user of the financial statements of the impact of particular transactions on a entity’s assets and
financial results.
Active Partner
Management Board
of MCI Venture Projects Ltd.
Maciej Strzelecki CMM Ltd.
Chief Accountant
Warszawa, 22.12.2016
Introduction and other explanatory information is a integrally part of financial statements
MCI Venture Projects Limited VI Joint-Stock Partnership
2
Financial statements for a period 01.11.2015 - 31.10.2016
Introduction
1.
Corporate information
a)
MCI Venture Projects Limited VI Joint-Stock Partnership was established in 2013 with registered office in
Warsaw at Plac Europejski Street, 00-844 Warsaw, National Economy Register: 146978907, Tax
Identification Number: 525-25-77-368.
b)
MCI Venture Projects Limited VI Joint-Stock Partnership registered at the Warsaw Regional Court, entry
no. KRS (NCR) 0000485654 at date 14.11.2013.
c)
The principal activities of the Company comprise:
 holding company,
 financial activity,
 consulting.
d)
The Company has an unlimited period of operation.
e)
As at the date of signing these financial statements the composition of the Management Board of Active
Partner was as follows:
 Tomasz Czechowicz – President of the Management Board
 Ewa Ogryczak – Member of the Management Board
 Wojciech Marcińczyk – Member of the Management Board
 Cezary Smorszczewski – Member of the Management Board
As at the date of approval of these financial statements Mr Cezary Smorszczewski is no longer a Member
of the Management Board as on 7 December 2016 he tendered his resignation. No new Member of the
Management Board was appointed to replace Mr Smorszczewski.
f)
2.
These financial statements cover the accounting year from 1 November 2015 to 31 October 2016. Due to a
change in accounting period the previous reporting period included 23 months and therefore the data in the
profit and loss account and in the cash flow statement are not comparable.
Basis of preparing financial statements
a)
These financial statements are made in accordance with International Financial Reporting Standards (IFRS)
and with the interpretations issued by the International Accounting Standards Board as approved by the
European Union pursuant to the Regulation of the European Parliament and of the Council No 1606/2002
on the application of international accounting standards "IFRS EU".
IFRS include standards and interpretations approved by the International Accounting Standards Board
(IASB) and the International Financial Reporting Interpretations Committee (IFRIC) for use in the EU.
b)
The accounting policies described below were applied in a continuous manner in all reported periods.
Changes in accounting policies are described in more detail in Note 1 and in the introduction to these
financial statements.
c)
The profit and loss account is prepared with classification of expenses by function. The cash flow statement
is prepared using the indirect method.
d)
In connection with the Company's prevailing business, the following have been presented under operating
activity:
a.
b.
c.
Disposal of shares and stocks
Interest revenue
Dividends received
Introduction and other explanatory information is a integrally part of financial statements
MCI Venture Projects Limited VI Joint-Stock Partnership
3
Financial statements for a period 01.11.2015 - 31.10.2016
e)
At the date of its establishment the Company's accounting year included the period from 1 December to 30
November. Currently, after the change, the accounting period covers the period from 1 November to 31
October.
f)
The financial statements were made with the assumption that the Company will continue as a going
concern in the period of 12 months after the last balance sheet date, i.e. after 31 October 2016. As at the
date of approving these financial statements, the Management Board of the Company's General Partner is
not aware of any facts or circumstances which could suggest any threat to the company's going concern
status within 12 months following the balance sheet date as a result of voluntary or involuntary
discontinuation or limitation of the existing business.
g)
Until the date of these financial statements there have been no events which were not but should have been
included in the accounts for the reporting period. At the same time, there are no material events in these
financial statements relating to the previous years.
h)
Financial data have been rounded off to the nearest Polish zloty.
i)
Compliance with International Financial Reporting Standards
These financial statements are made in accordance with International Financial Reporting Standards and with
the interpretations issued by the International Accounting Standards Board as approved by the European
Union pursuant to the Regulation of the European Parliament and of the Council No 1606/2002 on the
application of international accounting standards "IFRS EU".
IFRS EU include standards and interpretations approved by the International Accounting Standards Board
(IASB) and the International Financial Reporting Interpretations Committee (IFRIC) for use in the EU.
While preparing its financial statements for the accounting year from 1 November 2015 to 31 October 2016 the
entity applied the same accounting policies as while preparing the financial statements for the accounting year
from 1 December 2013 to 31 October 2015, except for amendments to standards and for new standards and
interpretations approved by the European Union and effective for reporting periods beginning on or after 1
January 2015. In the accounting year from 1 November 2015 to 31 October 2016 the Company followed all
new and approved standards and interpretations issued by the International Accounting Standards Board and
the Standing Interpretations Committee (SIC) approved for use in the EU, as applicable to the Company’s
business and effective for the reporting periods beginning on or after 1 January 2015.
Below are the standards and amendments to standards approved for use in the EU and effective for reporting
periods beginning on or after 1 January 2015:
a)
Amendments to IFRS (2011-2013) – amendments resulting from annual 2011 - 2013 improvements cycle

IFRS 1 First-Time Adoption of International Financial Reporting Standards – clarification regarding
the application of various versions of the standards. If a new version of the standard is not yet
mandatory but early application is permitted, an entity adopting IFRS may apply the old or the new
version, provided that the standard will be applied to all reporting periods.

IFRS 3 Business Combintaions – the amendment includes a clarification that IFRS 3 does not apply
to the accounting for the formation of a joint arrangement as per IFRS 11. It was also clarified that the
scope exception referred to in the standard applies exclusively to the financial statements of the joint
arrangement itself.

IFRS 13 Fair Value Measurement – clarifies that the scope of the "portfolio exception" defined in
IFRS 13 that allows entities to determine the fair value of groups of financial assets and financial
liabilities on a net basis, applies to all contracts (including non-financial contracts) within the scope of
IAS 39 or IFRS 9

IAS 40 Investment Property – clarifies that IAS 40 and IFRS 3 are not mutually exclusive. The
guidance included in IAS 40 helps entities making financial statements distinguish between
investment property and owner-occupied property. Entities preparing financial statements should also
follow the guidance in IFRS 3 to determine whether an acquisition of investment property is a
business combination.
Introduction and other explanatory information is a integrally part of financial statements
MCI Venture Projects Limited VI Joint-Stock Partnership
4
Financial statements for a period 01.11.2015 - 31.10.2016
b) Amendments to IFRS (2010-2012) – amendments resulting from annual (2010-2012) improvements cycle

IFRS 2 Share-Based Payments - clarifies the definition of the vesting condition and provides a
separate definition of the performance condition and service condition

IFRS 3 Business Combinations – the improvement clarifies that the classification of a contingent
consideration obligation that meets the definition of a financial instrument as either a financial
obligation or equity is to be based on the definition in IAS 32 Financial Instruments: Presentation. It
also clarifies that every contingent consideration classified as equity, whether financial or nonfinancial, is measured at fair value at each reporting date, and changes in fair value are recognised in
the profit and loss account. The above amendment also resulted in the amendment of IFRS 9, IAS 37
and IAS 39.

IFRS 8 Operating Segments – a requirement was introduced that when two or more operating
segments may be aggregated into a single operating segment the judgement made by management in
applying the aggregation criteria must be disclosed. Such disclosure must include a description of the
segments that have been aggregated as well as the economic indicators that have been assessed in
determining that the aggregated operating segments have similar economic characteristics.
Additionally, a requirement was introduced for the purposes of reporting segment assets, to present a
reconciliation of total segment assets to the entity's total assets in the balance sheet.

IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets – the amendment to both
standards clarifies the method for accounting of gross carrying amount and depreciation when the
entity uses the revaluation model. In the case of revaluation, gross carrying amount and depreciation
are accounted for in one of the following manners:

c)
o
gross carrying amount is adjusted in a manner that is consistent with the revaluation of the
carrying amount and the accumulated depreciation is adjusted to equal the difference
between the gross carrying amount and the carrying amount of the asset after taking into
account the depreciation and impairment losses, or
o
accumulated depreciation is eliminated against gross carrying amount of the asset.
IAS 24 Related Party Disclosures - a requirement was introduced to disclose information about the
entity providing to the reporting entity or to its parent key management personnel services
("managing entity"). The reporting entity does not have a duty to disclose the compensation paid by
the managing entity to the employees or managers of such entity but has a duty to disclose the
amounts paid by the reporting entity to the managing entity for its services.
Amendments to IAS 19 Defined Benefit Plans: Employee Contributions",
Contributions paid by employees or by third parties linked only to the service provided by the employees in
the period in which they were paid must be treated as reduction of service cost and must be attributed to such
period.
r
The remaining employee contributions would be attributed to periods of service in the same manner in which
gross benefits covered by the programme are attributed.
The adoption of the above amended standards did not cause any changes to the Company's accounting policy
or to the presentation of data in the financial statements.
The Company did not use the possibility of early adoption of the standards and amended standards as approved
by the EU:
1. effective for reporting periods beginning on or after 1 January 2016:
a)
Amendment to IAS 16 Property, Plant and Equipment and IAS 41 Agriculture: Bearer Plants
The amendment mandates that bearer plants, currently within the scope of IAS 41 Agriculture, be recognised
based on IAS 16 Property, Plant and Equipment, including the choice between the cost model and revaluation
model for subsequent measurement. In accordance with IAS 41 any biological assets used in agricultural
business are measured at fair value less estimated cost to sell.
b) Amendment to IAS 16 Property, Plant and Equipment and MSR 38 Intangible Assets: Clarifications
regarding acceptable methods of depreciation and amortisation
Introduction and other explanatory information is a integrally part of financial statements
MCI Venture Projects Limited VI Joint-Stock Partnership
5
Financial statements for a period 01.11.2015 - 31.10.2016
As regards depreciation of fixed assets the amendment mandates that the depreciation method should reflect
the expected pattern of consumption of the future economic benefits of the asset. The amendment to IAS 16
provides that revenue-based depreciation (depreciation allowances made pro rata to the revenues generated by
the entity from the business in which the relevant assets are used) is not acceptable. The IASB pointed out that
there are multiple factors that influence revenue, such as e.g. inflation, which have absolutely nothing to do
with the way the asset is used or consumed.
As regards intangible assets (i.e. as part of amendment to IAS 38) it was concluded however that in certain
circumstances the application of a revenue-based amortisation method will be adequate. Such a situation
would occur when an entity could demonstrate that there is a close relationship between revenue and the
consumption of economic benefits of the intangible asset and the given intangible asset is expressed as a
measure of revenue (when the entity has achieved a specified amount of revenue the given intangible asset will
expire) – an example may be a concession to explore and extract gold from a gold mine until a fixed revenue is
reached.
c)
Amendment to IFRS 11 Joint Arrangements: Accounting for interests in joint operations
The amendment introduces additional guidance for acquisitions of interests in a joint operation that constitutes
a business as defined in IFRS 3.
IFRS 11 currently mandates that in the above situation an entity should, to the extent corresponding to its share
in a joint operation, apply the relevant principles as per IFRS 3 Business Combinations (as well as other IFRSs
that are not inconsistent with IFRS 11) and disclose the information that is required for business combinations.
Part B of the standard includes more detailed guidance regarding the manner of accounting for, inter alia,
goodwill or impairment testing.
d) Amendments to IAS 1 Presentation of Financial Statements: Disclosure Initiative
The amendments are to encourage companies to apply professional judgement in determining what information
to disclose in their financial statements as well as where and in what order the disclosures should be made in
the financial statements.
e)
Amendments to IAS 27 Separate Financial Statements: Equity Method in Separate Financial Statements
The amendments concern the application of the equity accounting method in separate financial statements.
Their objective is to restore the option of using the above method as an additional option of accounting for
investments in subsidiaries, joint ventures and associates.
f)
Amendments to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interest in Other
Entities and IAS 28 Investments in Associates and Joint Ventures: Investment Entities – Applying the
Consolidation Exception
The amendments concern investment entities: application of consolidation exception. They also include
clarifications regarding accounting for investment entities.
g) Amendments to IFRS (2012-2014) – amendments resulting from annual (2012-2014) improvements cycle

IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations - change in disposal methods,
Introduction of special guidance regarding a case of reclassification of an asset (of group of assets held
for disposal) from held-for-sale into held-for-distribution (or vice versa), or in the case of
discontinuation of their classification as held-for-distribution. The above type of reclassification will not
constitute an amendment to the sales plan or distribution plan and consequently the existing
requirements regarding classification, presentation and measurement will remain unchanged. Assets
which no longer meet the criteria for classification as held-for-distribution (and they do not meet the
criteria for classification as held-for-sale) should be treated in the same manner as assets which can no
longer be classified as held-for-sale. It is proposed that the amendments be applied prospectively.

IFRS 7 Financial Instruments: Disclosures – Servicing Contracts; and applicability of the amendments
to IFRS 7 to condensed interim financial statements,
Addition of guidance providing details on whether a given servicing contract constitutes continuing
involvement in the transferred asset for the purposes of disclosure obligations with respect to the
transferred assets. Paragraph 42C(c) IFRS 7 provides that a transfer of contracts under a servicing
contract is not in itself a continuing involvement connected with transfer disclosure requirements. In
practice however a majority of servicing contracts include additional clauses resulting in maintaining
continuing involvement in the asset, e.g. if the amount and/or due date of payment for the services
depends on the amount and/or date of receipt of cash flows. The proposed amendments would contribute
to clarifying this problem.
Introduction and other explanatory information is a integrally part of financial statements
MCI Venture Projects Limited VI Joint-Stock Partnership
6
Financial statements for a period 01.11.2015 - 31.10.2016
The proposed amendments to IFRS 7 eliminate the doubts regarding taking into account the
requirements concerning offsetting financial assets and financial liabilities in condensed interim
financial statements. According to the proposed clarification, disclosures concerning offsetting are not
required for all interim periods.

IAS 19 Employee Benefits – Discount Rate: Regional Market Issue,
The amendment clarifies that high quality (AA) corporate bonds used to estimate the post-employment
benefit discount rate should be issued in the same currency as the relevant liabilities. The proposed
amendments will enable to estimate the size of the market for such bonds at the currency level. The
proposals would be applied retroactively.

IAS 34 Interim Financial Accounting– disclosure of information "elsewhere in the interim financial
report".
It is proposed to clarify whether the information required under IAS 34 is to be presented as part of the
interim financial report but not in the interim financial statements. In line with the proposal, such
information would have to be included in the interim financial statements by reference to another part of
the interim report available to users on the same conditions and at the same time as the interim financial
statements.
2. effective for reporting periods beginning on or after 1 January 2017:
a)
IFRS 9 Financial Instruments (of 12 November 2009 together with subsequent amendments to IFRS 9 and
IFRS 7 of 16 December 2011) – effective for reporting periods beginning on or after 1 January 2018
The new standard replaces the guidance included in IAS 39 Financial Instruments: Recognition and
Measurement, concerning classification and measurement of financial assets. The standard eliminates the
categories existing in IAS 39 of held to maturity, available for sale and loans and receivables. On initial
recognition financial assets will be classified in one of the following categories:
- financial assets at amortised cost; or
- financial assets at fair value.
Financial assets are measured at amortised cost if the following two conditions are met: the assets are held
as part of a business model whose purpose is to keep the assets in order to generate cash flows under a
contract; and, the relevant contract terms provide for cash flows at certain dates which consist solely of
capital and interest on the outstanding capital.
Profits and losses on the valuation of financial assets at fair value are recognised in the profit (loss) of the
current period, except for a situation when the investment in a financial instrument is not held for trading.
IFRS 9 offers an opportunity to measure such financial instruments, upon their initial recognition, at fair
value through other comprehensive income. The above decision is irreversible. Such choice may be made
for each instrument separately. Amounts recognised in other comprehensive income may not subsequently
be reclassified to profit and loss account.
IFRS 9 introduces a new impairment model, i.e. the expected credit losses model. Another important
requirement under IFRS 9 relates to the duty to disclose in other comprehensive income the effects of
changes in own credit risk under financial liabilities at fair value through profit or loss.
b) IFRS 15 Revenue from Contracts with Customers – effective for reporting periods beginning on or after
1 January 2018
IFRS 15 establishes a comprehensive framework for determining how and when to recognise revenue and
requires significant disclosures from companies using IFRS. The standard introduces a uniform model of
five steps, based on principles, which is to be used with respect to all contracts with customers for the
purposes of recognising revenue.
Standards and interpretations adopted by IASB which have not yet been approved for use by the EU:
a) IFRS 16 Leases – effective for reporting periods beginning on or after 1 January 2019
Introduction and other explanatory information is a integrally part of financial statements
MCI Venture Projects Limited VI Joint-Stock Partnership
7
Financial statements for a period 01.11.2015 - 31.10.2016
IFRS 16 replaces the existing provisions on leasing included in IAS 17, IFRIC 4, SIC 15 and SIC 27.
IFRS introduces a single lease accounting model and requires a lessee to recognise assets and liabilities for
all leases with a term of more than 12 months, unless the period of the lease is 12 months or less or the
underlying asset is of low value. Lessor accounting requirements are basically unchanged with respect to
IAS 17 - a lessor continues to classify its leases as either operating leases or finance leases.
b) IFRS 14 Regulatory Deferral Accounts; deferral account balances – effective for reporting periods
beginning on or after 1 January 2016 The standard was published as part of a larger project entitled
Rate-Regulated Activities, which focuses on the comparability of financial statements of entities operating
in areas subject to rate regulation by specific regulatory or supervisory bodies (depending on the
jurisdiction, such areas often include electricity and heat distribution, electricity and gas sales, telecom
services, etc.)
Rather than addressing a wide range of issues related to accounting policies applicable to rate-regulated
activities, IFRS 14 defines only the rules governing disclosure of balances of income or expense that
would not be recognised as an asset or liability in accordance with other IFRSs but that qualify for deferral
in line with regulations on rate control.
IFRS 14 may be applied if an entity conducts rate-regulated activities and has recognised amounts that
meet the definition of 'regulatory deferral account balances' in its financial statements prepared in
accordance with previous accounting policies.
Under IFRS 14, such items should be disclosed in a separate item of assets or liabilities in the statement of
financial position. These items are not classified as current or non-current and are not referred to as assets
or liabilities. Consequently, deferral accounts presented under assets should be disclosed as 'deferral
account debit balances', whereas accounts under liabilities − as 'deferral account credit balance'.
The entities should disclose net movements in those balances in profit or loss or other comprehensive
income, separately in other comprehensive income and in profit or loss (or in the separate statement of
profit or loss).
In line with the decision of the European Commission, as a temporary standard it will not be subject to
endorsement.
c)
Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and
Joint Ventures: Sale or Contribution of Assets Between an Investor and its Associate or Joint Venture deferred indefinitely
The changes relate to a sale or contribution of assets between an investor and its associate or joint venture
and clarify that gain or loss recognition for transactions with an associate or joint venture depends on
whether the sold or contributed assets constitute a business.
d) Amendments to IAS 12 Income Tax:
e) Recognition of Deferred Tax Assets for Unrealised Losses - effective for reporting periods beginning on or
after 1 January 2017,
The purpose of the amendments is to clarify that unrealised losses on debt instruments measured at fair
value (and for tax purposes at cost) may result in deductible temporary differences.
The proposed amendments will also provide that the carrying amount of an asset does not limit the
estimates regarding the value of future taxable profits. Furthermore, for the purposes of comparisons of
deductible temporary differences to future taxable profits, future taxable profits will not include the tax
deductions resulting from the reversal of such deductible temporary differences.
f)
Amendments to IAS 7 Cash Flow Statement: Disclosure Initiative - effective for annual periods beginning
on or after 1 January 2017,
The amendments are designed to improve the quality of information provided to users of financial
statements about the entity’s financing activities and the related cash flows. The following requirements
are introduced:
(i)
a reconciliation of the amounts in the opening and closing statement of financial position for
each item for which cash flows have been, or would be, classified as financing activities,
excluding equity items;
(ii)
disclosure about matters that are relevant to understanding the entity's liquidity, such as
restrictions that affect the decisions of an entity to use cash and cash equivalent balances.
Introduction and other explanatory information is a integrally part of financial statements
MCI Venture Projects Limited VI Joint-Stock Partnership
8
Financial statements for a period 01.11.2015 - 31.10.2016
g) Clarifications concerning IFRS 15 Revenue from Contracts with Customers – effective for annual periods
beginning on or after 1 January 2018
The amendments clarify the manner in which:
(i)
performance obligations must be identified,
(ii)
the entity needs to determine whether it is a principal or agent for the purposes of a given
contract,
(iii)
licensing revenue is to be recognised (at a point in time or settled over a period of time)
The amendments introduce 2 additional exemptions aimed to reduce the cost and difficulties for
companies while adopting the standard.
g) Amendments to IFRS 2 Share-Based Payments – effective for annual periods beginning on or after
1 January 2018,
The amendments clarify the method for recognising certain types of payments in the form of shares. The
amendments introduce requirements regarding the recognition of:
(i)
payments in the form of shares settled in cash, including a condition of achieving by the entity
of specified business results,
(ii)
payments in the form of shares settled after deduction of tax,
(iii)
changes of share-based payments settled in cash into ones settled in equity instruments.
h) Amendments to IFRS 4 Application of IFRS 9 Financial Instruments together with IFRS 4 Insurance
Contracts - effective for annual periods beginning on or after 1 January 2018.
The amendments are designed to remove the effects of accounting mismatch from the profit and loss
accounts of issuers of insurance contracts. In line with the above amendments, the following solutions are
admissible:
 application of IFRS 9 Financial Instruments together with recognition in comprehensive income,
rather than P&L, the volatility that could arise when IFRS 9 Financial Instruments is applied instead
of IAS 39 Financial Instruments for all issuers of insurance contracts ("overlay approach"),
 temporary (available until 2021) exemption from the application of IFRS 9 Financial Instruments for
companies whose activities are predominantly connected with insurance and application in such
period of IAS 39 Financial Instruments ("deferral approach").
j)
IFRIC 22 Foreign Currency Transactions - effective for annual periods beginning on or after 1 January
2018
The interpretation clarifies the accounting for transactions that include the receipt or payment of advance
consideration in a foreign currency. The interpretation covers foreign currency transactions when an entity
recognises a non-monetary asset or non-monetary liability arising from the payment or receipt of advance
consideration in a foreign currency before the entity recognises the related asset, expense or income.
k) Amendments to IAS 40 Investment Properties – effective for annual periods beginning on or after
1 January 2018,
The amendments are designed to provide guidance on transfers to, or from, investment properties. The
amendment relates to paragraph 57 which provides that a transfer to and from an investment property
occurs only when there is an evident change in use. A list of evidence in paragraph 57(a)-(d) was
designated as a non-exhaustive list of examples whereas the current list is an exhaustive one.
l)
Amendments to IFRS (2014-2016) - amendments resulting from annual (2014-2016) improvements cycle
– effective for annual periods beginning on or after 1 January 2017 /after 1 January 2018
 Amendment to IAS 1 First-Time Adoption of International Financial Reporting Standards
The amendment deletes short-term exemptions provided in par. E3-E7 of IFRS 1, as they related to past
reporting periods and have served their intended purpose. The above exemptions enabled first-time
adopters of IFRS to apply the same disclosures as the disclosures used by other entities applying them
for a long time with respect to:
i.
disclosure of certain comparative information concerning financial instruments, required as a
result of introduction of amended IFRS 7
ii.
Presentation of comparative information for the disclosures required by IAS 19, about the
sensitivity of the defined benefit obligation to actuarial assumptions
iii.
Retrospective application of the investment entities requirements of IFRS 10, IFRS 12 and IAS
27.

Amendment to IFRS 12 Disclosure of Interests in Other Entities
Introduction and other explanatory information is a integrally part of financial statements
MCI Venture Projects Limited VI Joint-Stock Partnership
9
Financial statements for a period 01.11.2015 - 31.10.2016
The proposed amendment clarifies the scope of IFRS 12 by specifying that the disclosure requirements
in the Standard, except for those in paragraphs B10-B16, apply to any interests that are classified as held
for sale, held for distribution to owners or discontinued operations in accordance with IFRS 5. This
amendment was proposed because of confusion on the interaction of the disclosure requirements
between IFRS 5 and IFRS 12.

Amendments to IAS 28 Investments in Associates and Joint Ventures
The proposed amendment clarifies that the option for a venture capital organisation or other qualifying
entity (such as a mutual fund, unit trust or similar entity) to measure investments in associates and joint
ventures at fair value through profit or loss (rather than by applying the equity method of accounting) is
made on an investment-by-investment basis upon initial recognition of each investment. A similar
clarification is proposed for the election available for an entity that is not an investment entity and that
has an associate or joint venture that is an investment entity; to retain the fair value measurements used
by that investment entity associate or joint venture when applying the equity method.
The Company is in the process of determining the impact that IFRS 9, IFRS 15 and IFRS 16 will have on
its financial statements. The Company estimates that the remaining (apart from IFRS 9, IFRS 15 and IFRS
16) above-mentioned standards, interpretations and amendments to standards will not have any significant
bearing on the Company's financial statements.
The above changes will not affect the Company's accounting policy, either this year or next year.
j)
Significant estimates and assumptions
In preparing financial statements, the Management uses estimates relying on assumptions and judgments
that affect the applied accounting policies and the disclosed values of assets, liabilities, revenues and
expenses. Assumptions and the resultant estimates are based on historical experience and on the analysis of
multiple factors deemed reasonable and the results underlie professional judgment as to the value of the
relevant item. In certain material issues the Management relies on opinions of independent experts.
Introduction and other explanatory information is a integrally part of financial statements
10
MCI Venture Projects Limited VI Joint-Stock Partnership
Financial statements for a period 01.11.2015 - 31.10.2016
3.
Main accounting policies
a) Property, plant and equipment
Property, plant and equipment are tangible items that:
- are held by the entity for use in production and the supply of goods and services, for
rental to others or for administrative purposes;
- are expected to be used during more than one year;
- are expected to generate future economic benefits that will flow to the entity; and
- have value that can be measured reliably.
As at the end of the reporting period, items of property, plant and equipment are recognised at cost less
accumulated depreciation and accumulated impairment losses.
Subsequent expenditures on items of property, plant and equipment (for example to increase the
usefulness of an item, for spare parts or renovation) are recognised in the carrying amount of a given
item or as a separate asset (if appropriate) only if it is probable that future economic benefits associated
with these expenditures will flow to the entity, and the cost of the expenditure can be measured reliably.
All other expenditures on repairs and maintenance are recognised in profit or loss in the period in which
they are incurred.
Items of property, plant and equipment (excluding land) are depreciated using the straight-line method,
for items which are used in production process at equal level throughout the period of their usage.
Fixed assets are amortized as below:
 buildings
 technical equipment and machinery
 motor vehicles
 other fixed assets
2,50 % - 10,00 %
14,00% - 20,00 %
20,00 – 40,00 %
20,00 %
b) Intangible assets
Intangible assets include:
- development costs;
- goodwill;
- software;
- acquired property rights (concessions, licenses, patents)
- other intangible assets
On initial recognition, intangible assets are measured at cost.
Any borrowing costs incurred for the purchase or construction of a qualifying item of intangible assets
are recognised in the cost.
Intangible assets are amortized as below:
 property rights
 licences
Introduction and other explanatory information is a integrally part of financial statements
20 % - 50 %
20 % - 50 %
MCI Venture Projects Limited VI Joint-Stock Partnership
11
Financial statements for a period 01.11.2015 - 31.10.2016
3.
Main accounting policies (cont.)
c)
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are
capitalised as part of the cost of that asset when the flow of economic benefits is probable and the costs can
be measured reliably. Other borrowing costs are recognised as an expense when incurred.
d) Financial Instruments
Classification of financial instruments
Financial instruments are classified into one of the following categories:
- financial assets measured at fair value through profit or loss;
- loans and receivables;
- available-for-sale financial assets;
- financial liabilities measured at fair value through profit or loss;
- other financial liabilities; and
- derivative hedging instruments.
Financial assets and liabilities measured at fair value through profit or loss
This category includes financial assets and financial liabilities held for trading and financial assets and
liabilities designated at fair value through profit or loss at their initial recognition. A financial asset is
classified to this category if it is acquired principally for the purpose of selling in the near term or if it is
designated by the entity upon initial recognition as at fair value through profit or loss.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted on an active market.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either designated as
“available-for-sale” or not classified to any of the other categories. This category primarily includes
financial assets which do not have a fixed maturity date and which do not meet the criteria for being
included in other categories. Available-for-sale financial assets are included in non-current assets unless the
Company intends to dispose of the investment within 12 months from the end of the reporting period.
Introduction and other explanatory information is a integrally part of financial statements
MCI Venture Projects Limited VI Joint-Stock Partnership
12
Financial statements for a period 01.11.2015 - 31.10.2016
3.
Main accounting policies (cont.)
Measurement of financial instruments at the end of the reporting period
Financial assets and financial liabilities measured at fair value through profit or loss, available-forsale financial assets and derivative hedging instruments
Financial assets and financial liabilities measured at fair value through profit or loss, available-for-sale
financial assets and derivative hedging instruments are subsequently measured at fair value. Available-forsale financial assets, which do not have a fixed maturity date, and the fair value of which cannot be
determined in a reliable manner, are carried at cost less any impairment losses.
Gains and losses on financial assets which are classified as financial assets measured at fair value through
profit or loss are recognised in profit or loss in the period in which they arise.
Gains and losses on a financial asset which are classified as available-for-sale are recognised in other
comprehensive income. In case of disposal available-for-sale assets or permanent impairment losses, gains
and losses are recognised in profit and loss in which they arise.
Loans and receivables
Loans and receivables are measured at amortised cost using the effective interest rate method.
Fair value
The fair value of an asset or liability is the price at which the asset could be sold or the price which would
be paid to transfer the liability (exit price) in an arm’s-length transaction between market participants at the
measurement date. Fair value is considered to be the purchase price of a financial instrument or, in case of
financial liabilities, the sales price of an instrument, unless there are any indicators that a financial
instrument was not purchased at fair value. At the end of the reporting period, the fair value of financial
instruments, for which an active market exists, is established based on the most representative price from
this market at the measurement date.
Impairment of financial assets
At the end of each reporting period an assessment is made of whether there is objective evidence that
a financial asset or a group of financial assets is impaired. The following are considered significant
objective indicators (evidence of impairment): significant financial difficulty of the debtor, legal action
being taken against the debtor, the disappearance of an active market for a given financial instrument, the
occurrence of significant unfavorable changes in the economic, legal or market environment of the issuer of
a financial instrument, and the continuing substantial decrease or prolonged decrease of the fair value of an
equity instrument below its cost.
An impairment loss is reversed, if in subsequent periods the impairment is reduced, and this reduction may
be attributed to events occurring after recognition of the impairment loss. The reversal of an impairment
loss is recognised in profit or loss.
Receivables
Trade receivables are recognised initially at fair value. After initial recognition, trade receivables are
measured at amortised cost using the effective interest rate, less allowance for impairment, while trade
receivables with a maturity period of up to 12 months from the receivable origination date are not
discounted. Impairment allowances on trade receivables are recognised when there is objective evidence
that an entity will not be able to collect all amounts due. The amount of the impairment allowance is the
difference between the asset’s carrying amount and the present value of estimated future cash flows,
discounted at the effective interest rate.
The amount of the impairment allowance is recognised in profit or loss.
Receivables not representing financial assets are recognised initially at their nominal value and measured at
the end of the reporting period at the amount due.
Introduction and other explanatory information is a integrally part of financial statements
MCI Venture Projects Limited VI Joint-Stock Partnership
13
Financial statements for a period 01.11.2015 - 31.10.2016
3. Main accounting policies (cont.)
Receivables with a maturity period of over 12 months from the end of the reporting period are classified
as non-current assets. Current assets include receivables with a maturity period of up to 12 months
from the end of the reporting period.
The following are regarded as receivables:
- trade receivables – these are receivables which arise from the core operating activities of the Company,
and
- other receivables, including:
- loans granted,
- other financial receivables, i.e. receivables meeting the definition of financial assets,
- other non-financial receivables, including among others advances for deliveries and for fixed assets,
for fixed assets under construction and intangible assets and advances for shares and also government
receivables,
- prepayments and accruals.
e) Cash and cash equivalents
Cash and cash equivalents includes cash in hand and in bank accounts, on-demand deposits, other safe
current investments with original maturities of three months or less from the date of their placement,
acquisition or issuance and with high liquidity. Cash and cash equivalents also include interest on cash
equivalents.
f) Equity
Equity in the financial statements of the Company consists of:
 share capital;
 retained earnings, composed of:
- undistributed
profit
or
unabsorbed
losses
from
previous
years,
reserve capital created in accordance with the Commercial Partnerships and Companies
Code,
- reserve capital created and used in accordance with the Statutes, profit or loss for the
period.
g) Provisions
Provisions are recognised when the Company has a present obligation (legal or customarily expected) as a
result of a past event, such that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation.
h) Liabilities
Liabilities are present obligations of the Company arising from past events, the settlement of which is
expected to result in an outflow of resources embodying economic benefits.
Liabilities comprise:
- liabilities arising from bank and other loans (borrowings) and finance lease liabilities;
- trade payables;
- liabilities arising from the acquisition or construction of tangible and intangible assets; and
- other financial and non-financial liabilities.
Liabilities are measured at amortised cost.
Current trade payables are recognised in the statement of financial position at their nominal value.
Introduction and other explanatory information is a integrally part of financial statements
MCI Venture Projects Limited VI Joint-Stock Partnership
14
Financial statements for a period 01.11.2015 - 31.10.2016
3.
Main accounting policies (cont.)
The carrying amount of these liabilities is similar to the amount of their amortised cost, calculated using the
effective interest rate.
Liabilities not classified as financial liabilities are measured at the amount due.
i) Accrued expenses
Accrued expenses are due and payable liabilities arising from goods received or services performed, or a
formal agreement has been reached with the supplier, including amounts payable to employees, which are
to be paid for in future periods.
Accruals include among others:
- remuneration and the related surcharges paid on a one-off basis, relating to annual periods;
- costs related to taxes and local fees;
- short-term accruals for unused annual leave.
j) Income tax
Company doesn’t pay income tax.
k) Revenues
Sales revenues include:
- income and gains from financial investments, including interest income is recognised on an accrual
basis, using the effective interest method,
- gains from the measurement and realisation of trading derivatives and the ineffective portion of gains
from the realisation and fair value measurement of derivative hedging instruments;
- reversal of impairment losses on held-to–maturity investments, available-for-sale financial assets,
and loans and shares in subsidiaries and joint ventures;
Sales revenues are recognised at the fair value of the consideration received or receivable, less VAT,
rebates and discounts.
Other operating income, indirectly associated with the conducted activities, i.e.:
- release of unused provisions, previously charged to other operating costs;
- gains on disposal of property, plant and equipment and intangible assets;
Finance income, mainly representing income related to financing the Company’s activities, including:
- net foreign exchange gains,
l) Costs
The Company recognises as costs any probable decrease, in the reporting period, of economic benefits of a
reliably-determined amount, in the form of a decrease in the value of assets, or an increase of provisions
and liabilities, which lead to a decrease in equity or an increase in negative equity in a manner other than
through distributions to equity participants.
Costs are recognised in profit or loss based on the direct relation between costs incurred and specific
income received, i.e. applying the matching principle, through prepayments and accruals.
In addition, costs for the given reporting period which affect profit or loss for the period include:
other operating costs, indirectly connected with performed activities, including in particular:
- provisions recognised for disputed issues, penalties, compensation and other costs indirectly related
to operating activities;
Introduction and other explanatory information is a integrally part of financial statements
15
MCI Venture Projects Limited VI Joint-Stock Partnership
Financial statements for a period 01.11.2015 - 31.10.2016
- donations granted; and
- losses on disposal of property, plant and equipment and intangible assets,
finance costs related to financing of the activities of the Company, including in particular:
- overdraft interest;
- interest on short- and long-term loans, bank loans and other sources of finance, including unwinding of
the discount from non-current liabilities;
- net foreign exchange losses arising in liabilities which are sources of financing of the Company’s
activities; and
- changes in provisions arising from the approach of the maturity date of a liability (the so-called
unwinding of the discount effect),
- costs and losses on financial investments;
- losses from the measurement and realisation of traded derivatives and the ineffective portion of losses
arising from the realisation and fair value measurement of derivative hedging instruments;
- foreign exchange losses, with the exception of exchange differences arising on liabilities representing
sources of finance for the Company’s activities;
- impairment losses on held-to–maturity investments, available-for-sale financial assets, loans and on shares
in subsidiaries and joint ventures;
a) Changes in accounting policies
In comparison to the previous reporting period the Company changed the presentation of financial information
relating to operating activities and investing activities.
In the previous reporting period, the profit and loss account included data presented as follows:
Sales revenue
Cost of sales
Gross profit
Selling costs
Administrative expenses
Other operating income
Other operating costs
Operating profit
Gain/Loss on disposal of investments
Finance costs
Profit before income tax
Income tax expense
Profit for the period
Earnings per share for the annual period (in PLN per share)
- basic
- diluted
For the period
from 01.12.13
till 31.10.15
PLN
(892 202)
(114)
(34 078 188)
(6 883)
(34 977 387)
(34 977 387)
(700)
(700)
The current presentation method includes disclosure of income from:
1) Dividends
2) Interest received
3) Purchase/ sale of financial assets
achieved as part of the Company's operating activities. The previous presentation included:
1) Presentation of dividends as profit/loss on investing activities
2) Presentation of interest received as finance income
3) Presentation of the transactions of purchase/ sale of financial assets as profit/ loss on investing activities.
Introduction and other explanatory information is a integrally part of financial statements
16
MCI Venture Projects Limited VI Joint-Stock Partnership
Financial statements for a period 01.11.2015 - 31.10.2016
As regards presentation of expenses, there is a change in the recognition of costs of securing financing, which so far
were presented in the operating portion:
For the period
from 01.11.15 from 01.12.13
till 31.10.16
till 31.10.15
PLN
PLN
Income and gains from financial investments: shares, certificate of
investment funds
Dividends received
Interests
Gross profit
Selling costs
Administrative expenses
Other operating income
Other operating costs
Operating profit
Financial revenues
Financial cost
Profit before income tax
Income tax expense
Profit for the period
Earnings per share for the annual period (in PLN per share)
- basic
- diluted
(80 156 248)
(61 818 188)
30 053 547
2 631 527
(47 471 174)
(142 981)
(268)
(47 614 423)
76 067
(3 762 342)
(51 300 698)
(51 300 698)
27 740 000
(34 078 188)
(486 586)
(114)
(34 564 888)
(412 499)
(34 977 387)
(34 977 387)
(1 026)
(1 026)
(700)
(700)
If there was no change in the presentation method, the profit and loss account would be as follows:
Sales revenue
Cost of sales
Gross profit
Administrative expenses
Other operating income
Other operating costs
Operating profit
Zysk/strata z działalności inwestycyjnej
Gain/Loss on disposal of investments
Finance costs
Profit before income tax
Income tax expense
Profit for the period
Earnings per share for the annual period (in PLN per share)
- basic
- diluted
from 01.11.15
till 31.10.16
PLN
(817 981)
(268)
(818 249)
(47 471 174)
76 067
(3 087 342)
(51 300 698)
(51 300 698)
from 01.12.13
till 31.10.15
PLN
(892 202)
(114)
(892 314)
(34 078 188)
(6 883)
(6 883)
(34 977 387)
(34 977 387)
(1 026)
(1 026)
(700)
(700)
No changes in accounting policies were made that would impact the valuation method or financial result. The
adjustments have an impact only on the presentation of data (improved readability and conformity with the Company's
core business).
Introduction and other explanatory information is a integrally part of financial statements
17
MCI Venture Projects Limited VI Joint-Stock Partnership
Financial statements for a period 01.11.2015 - 31.10.2016
Statement of financial position
Note
At
31 October
2016
31 October
2015
ASSETS
Non-current assets
Available-for-sale financial assets
3
-
132 529
-
132 529
54 660 142
42 597
162 597 398
111 168 384
503 655
242 740 191
25 763 352
TOTAL CURRENT ASSETS
328 468 521
269 007 198
TOTAL ASSETS
328 468 521
269 139 727
TOTAL NON-CURRENT ASSETS
Current assets
Short-dated bill receivables (third party notes) and other receivables
Available-for-sale financial assets
Financial assets measured at fair value
Cash and cash equivalents
4b, 4c
4d
4a, 7
4f, 21
Introduction and other explanatory information is a integrally part of financial statements
18
MCI Venture Projects Limited VI Joint-Stock Partnership
Financial statements for a period 01.11.2015 - 31.10.2016
Statement of financial position (cont.)
Note
At
31 October
2016
30 November
2013
EQUITY AND LIABILITIES
Equity
Share capital
10
Revaluation reserve from measurement of financial instruments
Actuarial gains/losses on post-employment benefits
Retained earnings
Other capital
11/12
50 000
50 000
(86 278 085)
(34 977 387)
1
1
(86 228 084)
(34 927 386)
11
TOTAL EQUITY
LIABILITIES
Non-current liabilities
Trade and other payables
Borrowings: issue of debentures/bonds (CZK)
104 113 520
-
Derivatives
-
-
Employee benefits liabilities
-
-
Provisions for other liabilities and charges
-
-
303 317 337
304 067 113
7 248 528
-
Current corporate tax liabilities
-
-
Derivatives
-
-
Current liabilities
Trade and other payables
Borrowings incl. issue of bonds (CZK)
14
16
14/16
Employee benefits liabilities
-
-
17 220
-
TOTAL LIABILITIES
414 696 604
304 067 113
TOTAL EQUITY AND LIABILITIES
328 468 521
269 139 727
Provisions for other liabilities and charges
13
Introduction and other explanatory information is a integrally part of financial statements
19
MCI Venture Projects Limited VI Joint-Stock Partnership
Financial statements for a period 01.11.2015 - 31.10.2016
Statement of profit and loss
For the period
from 01.11.15 from 01.12.13
till 31.10.16
till 31.10.15
PLN
PLN
Income and gains from financial investments: shares, certificate of
investment funds
Dividends received
Interests
Gross profit
Selling costs
Administrative expenses
Other operating income
Other operating costs
Operating profit
Financial revenues
Financial cost
Profit before income tax
Income tax expense
Profit for the period
Earnings per share for the annual period (in PLN per share)
- basic
- diluted
17a
(80 156 248)
(61 818 188)
17b
17c
30 053 547
2 631 527
(47 471 174)
(142 981)
(268)
(47 614 423)
76 067
(3 762 342)
(51 300 698)
(51 300 698)
27 740 000
(34 078 188)
(486 586)
(114)
(34 564 888)
(412 499)
(34 977 387)
(34 977 387)
(1 026)
(1 026)
(700)
(700)
17f
17e
20
Statement of comprehensive income
Note
Profit for the period
Other comprehensive income:
Other comprehensive income from measurement of financial
instruments:
Available-for-sale financial assets
Income tax related to available-for-sale financial assets
Cash flow hedging instruments
Income tax related to cash flow hedging instruments
Total other comprehensive income, which will be reclassified
to profit or loss when specific conditions are met
Other comprehensive income, which will not be reclassified
to profit or loss:
Actuarial (losses)/gains
Income tax related to actuarial gains and losses
Total other comprehensive income, which will not be
reclassified to profit or loss
Other comprehensive net income for the reporting period
TOTAL COMPREHENSIVE INCOME
For the period
from 01.11.15
from 01.12.13
till 31.10.16
till 31.10.15
(51 300 698)
(34 977 387)
-
-
-
-
-
-
-
-
-
-
(51 300 698)
(34 977 387)
Introduction and other explanatory information is a integrally part of financial statements
20
MCI Venture Projects Limited VI Joint-Stock Partnership
Financial statements for a period 01.11.2015 - 31.10.2016
Statement of cash flows
Note
Cash flow from operating activities
Profit for the period
Total adjustments to profit for the period:
Income tax recognised in profit or loss
Amortisation/Depreciation
Losses on sale of property, plant and equipment and intangible assets
Interest and share in profits (dividends)
Gain/loss from the change of value of bonds
Foreign exchange (gains)/losses
Gain/loss from the change of fair value and from disposal of
financial assets at fair value through profit and loss
Change in provisions
Gain/loss from disposal of financial assets available for sell
Cost of bank account in brokerage house
Banker’s commission according to loans and credits
Changes in working capital:
Trade and other receivables
Trade and other payables
Income tax paid
Payment for purchasing financial assets: shares and investment
funds certificates
Payment received for selling financial assets: shares and investment
funds certificates
Loans granted / Bill receivables
Repayments of loans granted and bills
Interest received
Dividends received
Payment for purchasing financial assets available for sale
Net cash generated from operating activities
Cash flow from investing activities
Net cash used in investing activities
Cash flow from financing activities
Proceeds/payments from changes in Equity
Proceeds from bank and other loans (bill payable)
Repayments of bank and other loans (bill payable)
Interest paid
Cost of bank account in brokerage house
Banker’s commission according to loans and credits
Banker’s commission according to issue of bonds (CZK)
Other financial expenses
Net cash used in financing activities
Total net cash flow
Exchange gains/(losses) on cash and cash equivalents
Movements in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period
limited possibility to use
1
22
17e
For the period
from 1
from 1
November 2015 December 2013
to 31 October
to 31 October
2016
2015
(51 300 698)
(34 977 387)
(30 374 718)
807 047
(243 321)
(27 736 772)
-
80 142 793
60 504 676
17 220
89 932
5 812
675 000
(361 754)
(392 893)
-
1 435 931
405 6161
465 363
-
(20 000 000)
-
20 076 477
-
(80 200 000)
27 850 000
1 074 334
30 053 547
(22 081 220)
(500 000)
27 740 000
(1 568 460)
25 768 967
-
-
110 731 500
(350 000)
(700 064)
(5 812)
(675 000)
(2 936 093)
106 064 531
83 983 311
350 000
(405 616)
55 616
25 713 351
1 421 721
85 405 032
25 763 352
111 168 384
111 168 384
25 713 351
50 001
25 763 352
25 763 352
7/17a
17a
17e
Correction of previous year. Earlier amount 405.616 was presented as a financial costs.
Introduction and other explanatory information is a integrally part of financial statements
21
MCI Venture Projects Limited VI Joint-Stock Partnership
Financial statements for a period 01.11.2015 - 31.10.2016
Statement of changes in equity
Share
capital
Note
At 1 December 2013
Issue of shares
Contribution of active partner
Total comprehensive income
Profit for the period
Other comprehensive income
At 30 October 2015
At 1 November 2015
Dividends
Issue of shares
Contribution of active partner
Total comprehensive income
Profit for the period
Other comprehensive income
At 31 October 2016
50 000
50 000
50 000
Revaluation
reserve from
measurement
of financial
instruments
-
Retained
earnings
Other
capital
Total
equity
(34 977 387)
(34 977 387)
(51 300 698)
(51 300 698)
1
1
1
50 001
(34 977 387)
(34 977 387)
(51 300 698)
(86 228 084)
Introduction and other explanatory information is a integrally part of financial statements
22
MCI Venture Projects Limited VI Joint-Stock Partnership
Financial statements for a period 01.12.2013 - 31.10.2015
Other explanatory information
Other explanatory information
1.
Changes in accounting policies and in presenting financial data
Changes in accounting policies and their impact on the presented financial data are described in the introduction
to these financial statements (item 3). Major accounting policies are discussed in sub-section m).
2.
Change in property, plant and equipment in the period from 01.11.2015 to
31.10.2016
The Company has no equipment or properties.
3.
Long-term investment and receivables
In connection with the start of liquidation of Biotech Varsovia Pharma Sp. z o. o. in liquidation, the
Company reclassified the shares held in Biotech Varsovia Pharma Sp. z o. o. to current assets.
4.
Short-term investments
4(a). Financial assets at fair value through profit and loss
The Company has 61.52% of public limited company ABC Data S.A. stocks. On October 31 st, 2016 their market
value was:
Financial assets
Financial assets measured at fair value
ABC Data joint stock company
162 597 398
Total
162 597 398
Market value on the Polish stock exchange WGPW (Warsaw Stock Exchange) on October 31 st, 2015
Quantity of shares
ABC Data joint stock company
77 060 378
Closing price on
31.10.2016 [PLN]
2,11
Carrying value
162 597 398
MCI Venture Projects Ltd. VI limited joint-stock partnership has no obligation of preparing the consolidated
financial statement according to the International Financial Reporting Standards 10, due to the fact that it meets
the definition of an investment identity pursuant to the standard mentioned hereinabove. In this case, the
dependent entities are priced at the fair value by the financial result.
Company had to mortgage 69.440.716 of shares to make a bank loan (and CZK bond issue).
Introduction and other explanatory information is a integrally part of financial statements
23
MCI Venture Projects Limited VI Joint-Stock Partnership
Financial statements for a period 01.12.2013 - 31.10.2015
Other explanatory information
4(b). Loans granted and other receivables
Third party notes and other receivables:
Third party notes receivables
Overpayments
Costs of future period
Razem zobowiązania krótkoterminowe o charakterze finansowym
54 298 388
286 754
75 000
54 660 142
4(c). Held-to-maturity investments – third party notes
The Company holds short-term (redemption date: 6-months or 12-months) third-party notes – presented in the
statement of financial position under "Third-party notes and other receivables". As at 31 October 2016 the
nominal value of all receivables stood at PLN 52,850,000, plus accrued interest of PLN 1,448,388, total PLN
54,298,388.05. Note maturity dates fall in Q 1-3 2017. Interest is in line with market terms, fixed rate. The
interest rate on individual notes varies from 4 to 8% depending on credit risk.
4(d). Available-for-sale financial assets
Financial assets
Available-for-sale assets
Biotech Varsovia Pharma Sp. z o. o.
42 597
Total
42 597
Company has 35% of shares in Biotech Varsovia Pharma Sp. z o. o.
Available-for-sale financial assets, which do not have a fixed maturity date, and the fair value of which cannot
be determined in a reliable manner, are carried at a cost less than any impairment losses. The value of the
company was calculated according to the equity capital, assets (the value is adjusted to the replacement value or
expected value of sales), liabilities and other expected positive or negative cash flow in the future.
Biotech Varsovia Pharma Sp. z o. o.
Cost of purchase
1 568 460
Impairment losses
(1 525 863)
Carrying value
42 597
Impairment loss was calculated according to the net assets of Biotech Varsovia Pharma Sp. z o. o.
Net assets of Biotech Varsovia Pharma Sp. z o. o.
Participation
Net asset of Biotech Varsovia Pharma Sp. z o. o. (equity method)
121 706
35%
42 597
An impairment loss is recognized in statement of profit and loss (because the loss is permanent).
4(e).Financial instruments - hierarchy of disclosures of fair value (IFRS 7 p. 27B(a))
For financial reporting purposes, the fair value measurements are categorized into Level 1, 2, and 3, based on the
degree to which the inputs to the fair value measurements are observable, and the significance of the inputs to
the fair value measurement in its entirety, which are described as follows:
Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date
Level 2 inputs are the inputs, other than the quoted prices included within Level 1, that are observable for the
asset or liability either directly or indirectly
Level 3: inputs are unobservable inputs for the asset or liability
Introduction and other explanatory information is a integrally part of financial statements
24
MCI Venture Projects Limited VI Joint-Stock Partnership
Financial statements for a period 01.12.2013 - 31.10.2015
Other explanatory information
No.
1.
I
Classes of financial instruments
Shares and certificates in the listed
companies
TOTAL
Level 1
Level 2
Level 3
Total
162 597 398
0.00
0.00
162 597 398
162 597 398
0,00
0.00
162 597 398
4(f).Cash in bank
The Company has funds in bank accounts of PLN 108,468.56 (in the Polish currency) and PLN 111,059,915.93
which is a PLN equivalent of an amount in Czech crowns translated using the rate of exchange published by the
National Bank of Poland (NBP) as at 31 October 2016: 0.1601 PLN/CZK.
5.
Impairment of financial assets
There is no objective evidence of any other impairment losses than described in note no. 2.
6.
Accrued interests – loans granted and other receivables
Interests in the amount of 2.519.066,97 PLN charged a company’s financial results (financial revenues). All the
interests were charged according to the short-dated bill.
7.
Financial assets measured at fair value
The Company is a shareholder of public limited joint-stock company ABCD Data. More information about the
balance sheet valuation is in note no. 3a.
Because of macroeconomic and political reasons, there is some risk of short-term changes in terms of the market
value, which might have meaningful influence on the financial result of MCI Venture Projects Ltd. VI jointstock partnership.
date of the
quotation on
the stock
exchange
2015-10-31
2015-12-31
2016-03-31
2016-06-30
2016-09-30
2016-10-31
price
[PLN]
3,15
3,15
3,59
2,88
2,28
2,11
price per share
4,20
4,00
3,80
3,60
3,40
3,20
3,00
The company’s view is that
market value is much lower
than it should be, and the
opportunity of the investment return in this case is higher.
In the opinion of the Management Board of the General Partner the current market valuation does not fully
reflect the value of the shares of ABC Data S.A. Classes of financial instruments are presented in the following
table:
Introduction and other explanatory information is a integrally part of financial statements
25
MCI Venture Projects Limited VI Joint-Stock Partnership
Financial statements for a period 01.12.2013 - 31.10.2015
Other explanatory information
IAS39
Available-for-sales assets
AfS
Third party notes and other receivables
L&R
Cash and cash equivalents
Fair value
42 597
-
54 660 142
-
Financial assets at the fair value
Financial liability at fair value
using effective interest rate method
Carrying
value
111 168 384
FVtPL
-
162 597 398
111 362 047,65
162 597 398
-
Influence of the fair value measurements on the profit and loss statement:
MSR39
Financial assets available for sale
Third party notes and other receivables
Cash and cash equivalents
Financial assets at fair value
Financial liability at fair value
using effective interest rate method
Total
8.
AfS
L&R
FVtPL
-
Gain/Loss on
disposal of
investments
(89 932)
2 519 066
112 460
(80 142 793)
Comprehensive
income
-
(807 047)
-
(78 408 245)
-
Impairment of trade receivables
There are no overdue trade receivables on October 31st, 2016. There are no provisions for bad debts made in
2015.
9.
Prepaid expenses (deferred expenditure)
The Company made a PLN 450,000 payment under a bank guarantee. The guarantee covers 12 months of a
calendar year. Therefore, PLN 75,000 was classified as a deferred cost relating to a future reporting period, i.e.
November and December 2016.
10. Equity
The share capital on October 31st, 2016 is 50 000 PLN (nominal value of one share is 1.00 PLN).
Shareholders
Shares
Share capital
% voting shares
MCI. PrivateVentures FIZ
(closed-ended investment
fund)
50 000
50 000
100%
50 000
50 000
100%
Contribution of active partner is 1.00 PLN.
Introduction and other explanatory information is a integrally part of financial statements
MCI Venture Projects Limited VI Joint-Stock Partnership
26
Financial statements for a period 01.12.2013 - 31.10.2015
Other explanatory information
11. Changes in equity – supplementary capital, reserve capital
There are no changes in 2016 year.
12. Net profit (loss)
The net loss for the accounting year from 1 November 2015 to 31 October 2016 reached PLN 51,300,698.
The Management Board of the General Partner proposes to cover the loss as follows:
o with future years profit – 100%
13. Provisions for liabilities – changes in 2016 year
Company make a provision for financial statement audit in amount 14.000 PLN net. (17.220 PLN gross).
14. Long-term liabilities – ageing
The Company does not have any long-term liabilities others as described in note 15.
15. Long-term liabilities - classification
On a day 4th April company issue bonds on a Czech Republic market. In a group of buyer were
companies, financial institutions and legal people.
1)
2)
3)
4)
Total liabilities of first issue of bonds: 600.000.000 CZK
Interest rate: PRIBOR + 3,8%
Money received decreased by service charge: 591.839.000 CZK
Cost of bond issue: 1.292.702 PLN
Dnia 11.10.2016 spółka dokonała dodatkowej emisji obligacji w ramach emisji z dnia 4 kwietnia 2016
roku na warunkach jak niżej:
1) Total liabilities of second issue of bonds: 99.000.000 CZK
2) Interest rate: PRIBOR + 3,8%
3) Money received decreased by service charge: 97.997.320 CZK
4) Cost of bond issue: 158.924 PLN
Due date: 4th April year 2021. MCI Capital S.A. did make warranties/guarantees about repayment of
bonds. According to it, MCI Capital got a remuneration in amount 619.320,00 PLN.
16. Short-term liabilities - classification
All financial liabilities are associated with transactions of buying shares and are listed below:
Introduction and other explanatory information is a integrally part of financial statements
27
MCI Venture Projects Limited VI Joint-Stock Partnership
Financial statements for a period 01.12.2013 - 31.10.2015
Other explanatory information
ABCD Management Ltd. Registered partnership
MCI Venture Projects Ltd. Registered partnership
Interest to pay according to bond issue on a Czech Republic market
Total financial liabilities
Tax liabilities
Trade liabilities
Provisions made
Total short-term liabilities
199 477 467
103 767 400
7 248 528
310 493 395
13 319
59 151
17 220
310 583 085
Maturity date:
by 04.10.2016
by 25.10.2016
by the end of 2016 year
by 25.01.2017
1 581 194
2 790
303 700 071
10 529
Overdue liabilities had been settled before the shareholders signed this financial statement.
25th January year 2016 was signed an agreement associated with liabilities to ABCD Management and
MCI Venture Projects to postpone a payment for shares (ABC Data S.A.) There is no threat to pay these
amounts immediately (due date is postponed 12 months)..
17. Finance cost related to financing the Company activities
a) Gain/loss from the change of value: shares, stocks
Gain/loss from the change of value of stocks
Gain/loss from the change of value of shares (Ltd.)
Profit on sales of investment funds certificates
od 01.11.15
do 31.10.16
PLN
(80 142 793)
(89 932)
76 477
(80 156 248)
od 01.12.13
do 31.10.15
PLN
(60 504 676)
(1 435 931)
(61 940 607)
from 01.11.15
till 31.10.16
PLN
30 053 547
from 01.12.13
till 31.10.15
PLN
27 740 000
b) Dividends received
Dividens received from ABC Data
Introduction and other explanatory information is a integrally part of financial statements
MCI Venture Projects Limited VI Joint-Stock Partnership
28
Financial statements for a period 01.12.2013 - 31.10.2015
Other explanatory information
c) Interests
Interest from bonds issue
Interest from third party notes
Interest on a bank account
from 01.11.15
till 31.10.16
PLN
1 025 000
1 494 067
2 519 067
112 460
2 631 527
from 01.12.13
till 31.10.15
PLN
-
from 01.11.15
till 31.10.16
PLN
76 067
from 01.12.13
till 31.10.15
PLN
-
from 01.11.15
till 31.10.16
PLN
300 000
375 000
2 274 483
807 047
5 812
(3 762 342)
from 01.12.13
till 31.10.15
PLN
405 616
6 883
412 499
d) Financial revenues
Exchange gains
e) Financial costs
Comittment fee
Loan guarantee cost
Interest payable on loans, own notes and bonds
Financing costs – valuation of bonds (NPV)
Costs of maintaining an investment brokerage account
The Company finances its operations with own funds as well as with funds raised from the issues of longterm bonds. Interest accrued as at 31 October 2016 is PLN 1,581,193.50 (outstanding liability). In total, in
the reporting period, the value of accrued and paid interest and other financing costs (commissions)
reached PLN 3,762,342.
18. Leases
There are no assets, which are financed by the operating lease (or finance lease).
Introduction and other explanatory information is a integrally part of financial statements
MCI Venture Projects Limited VI Joint-Stock Partnership
29
Financial statements for a period 01.12.2013 - 31.10.2015
Other explanatory information
19. Revenues from sales by type of activity and markets
The Company carries out its operations in Poland. The breakdown of the types of operating revenues and
expenses can be found in Note 16.
20. Income tax
Until 31 October 2015 the Company has not been subject to income tax. In the period from 1 November
2015 to 31 October the Company generated the following income (CIT):
Gross revenue
-51 300 698,18
Non-deductible items recognised as balance sheet revenues
- interest on third party notes, bonds and other financial receivables
- valuation of foreign currencies
- dividends received (exemption under Article 22 of the CIT Act)
-1 444 733,27
-243 320,63
-30 053 547,42
Non-deductible items recognised as balance sheet expenses
- accrued and not paid interest on financial liabilities
- revaluation of investments
- valuation of bonds (NPV)
1 574 310,49
80 232 725,41
807 046,80
Off-balance sheet deductible expenses
- bonds issue costs
-2 936 092,65
Taxable income
- 3 364 309,45
21. Deferred tax
As at 31 October 2016 the Company did not recognise any deferred income tax on temporary differences
due to a lack of grounds and financial plans including a possibility of settling possible deferred tax assets
or deferred tax provisions in the future.
As at 31 October 2016 there were the following temporary differences:
Temporary differences regarding CIT and
deferred tax
- valuation of financial assets
Revenues/
Expenses
Assets
/Provisions
Basis
Deffered tax
Costs
Assets
142 173 332,25
-27 012 933,00
- accrued and not paid interest on financial liabilities
Costs
Assets
1 581 193,50
-300 427,00
- accrued and not received interest on financial
receivables
- valuation of Czech bonds
Assets
Provisions
1 448 388,05
275 194,00
Costs
Assets
807 046,80
153 339,00
- off-balance sheet costs of Czech bonds (to CIT in the
period in which they were incurred)
- tax loss
Costs
Provisions
-2 936 092,65
-557 858,00
N/d
Assets
3 364 309,45
Assets
Provisions
Introduction and other explanatory information is a integrally part of financial statements
-639 219,00
28 105 918
833 052
MCI Venture Projects Limited VI Joint-Stock Partnership
30
Financial statements for a period 01.12.2013 - 31.10.2015
Other explanatory information
22. Cash and equivalents
31.10.2016
PLN
Cash in the bank
Deposits
Other financial assets with a maturity of up to 3 months
111 168 384,49
-
Total
111 168 384,49
limited possibility to use
96 060 000,00
Additional description for cash flow statements:
Interest accrued on financial receivables
Interest accrued and paid on bonds (cost)
Interest accrued and not paid on bonds (cost)
Interest accrued on own notes (cost)
Other interest
Interest received on financial receivables
Premium on disposal of investment certificates (PLN 20m)
Total
Interest received on financial receivables (third party notes, bonds, etc.)
Interest – adjustment in operating activities
Dividend – adjustment in operating activities
Interest and share in profits (dividends) – adjustment in operating activities
-2 519 067
692 861
1 581 194
319
109
1 074 334
-76 477
753 273
1 074 334
-321 061
30 053 547
-30 374 718
23. Investment in subsidiaries
The MCI.PrivateVentures Close-ended Investment Fund is a parent company, which is managed by the
MCI Capital TFI SA. The parent company at the highest level is the MCI Management S.A.
The related parties (directly) are:
 ABCD Management Ltd. Registered Partnership
 MCI Venture Projects Ltd. Registered Partnership
 Both companies have the same activity partner: MCI Venture Projects Ltd.
 MCI Venture Projects Ltd. X Registered Partnership
 Alternative Investments Partners Ltd.
 Both companies have the same member of a board (as in the activity partner: MCI
Venture Projects Ltd.)
 MCI.PrivateVentures Close-ended Investment Fund as a main shareholder
 ABC Data Joint-stock company
All the related party transactions are described in note no. 2, no. 15 and no. 28.
24. Items off balance sheet
On April 2nd, 2015 the Company signed a credit agreement with Raiffeisen Bank Polska S.A., pursuant to
which the Company was granted funds of 30 000 000 PLN, and 10 000 000 PLN can be paid in any
currency according to the Company, as the borrower, request. In case of consumption of the whole
amount of the loan, the repayment of loan installments shall proceed according to the following schedule:
Introduction and other explanatory information is a integrally part of financial statements
31
MCI Venture Projects Limited VI Joint-Stock Partnership
Financial statements for a period 01.12.2013 - 31.10.2015
Other explanatory information




2 500 000 PLN by November 27th, 2015
2 500 000 PLN by May 27th, 2016
2 500 000 PLN by November 27th, 2016
22 500 000 PLN by March 31st, 2017
The interest periods will last one month each, the calculation of the interest is based on WIBOR1M + 3%
of the bank margin. The commission for the granted bank loan is 1%, and shall be recovered at the
moment of the advance disbursement.
Due to signing the credit agreement, there was established a pledge on the ABC Data stocks of the
amount of 37 500 000 PLN. Additionally, the bank loan was pledged by MCI Management S.A. up to the
amount of 45 000 000 PLN.
On October 31st, 2015, the Company has not implemented the appropriations stated in the signed credit
agreement.
On October 5th, 2015, the Company has signed the contract with MCI Management S.A that governs the
issues of remuneration related to the securing the loan referred to above. The remuneration in the amount
of 405,616.44 PLN as a security for the period until December 31 st, 2015 and 450.000 PLN per year for
each consecutive year of the loan security validity.
On November 6th, 2015, the Company has signed so called Additional Contract to the credit agreement in
order to secure the interest rate. Due to the failure to use the appropriations of the loan, there is no
influence of this agreement on the financial statement.
25. Subsequent events
On 17 November 2016 the Company entered into a contract obliging it to sell shares to an individual.




Number of shares sold: 1,000,000
Date of entering into the final share transfer contract no later than 31 December 2016
Price: PLN 2,580,000
The purchaser undertook not to sell the shares without the Company's written consent for a
period of 24 months unless the Company makes a share transfer as a result of which its
share in the share capital of ABC Data S.A. falls below 25%.
26. Employee structure
The Company does not have any employee.
27. Remuneration of the Management Board and Supervisory Board
Management Board
Supervisory Board
During the financial year, the Management Board and Supervisory Board did not receive any
remuneration.
Introduction and other explanatory information is a integrally part of financial statements
2016
PLN
-
32
MCI Venture Projects Limited VI Joint-Stock Partnership
Financial statements for a period 01.12.2013 - 31.10.2015
Other explanatory information
28. Related party transactions – Management Board and Supervisory Board
There were no transactions with the members of the Management Board or Supervisory Board.
29. Related party transactions - companies
Type of transaction
Sole bill (promissory note)
Contracting party
MCI Management Ltd.
(poprzednia nazwa: Alternative
Investment Partners Ltd.)
Sole bill (promissory note)
Investventures Ltd.
Sole bill (promissory note)
MCI Fund Management Ltd.
Sole bill (promissory note)
Sole bill (promissory note)
Sole bill (promissory note)
Sole bill (promissory note)
Sole bill (promissory note)
MCI Management Ltd.
(poprzednia nazwa: Alternative
Investment Partners Sp. z o. o
MCI Management Ltd.
(poprzednia nazwa: Alternative
Investment Partners Sp. z o. o
MCI Management Ltd.
(poprzednia nazwa: Alternative
Investment Partners Sp. z o. o
MCI Management Ltd.
(poprzednia nazwa: Alternative
Investment Partners Sp. z o. o
Finventures Ltd.
Value of
transaction
7.600.000,00 PLN
+ interest
197.683,29 PLN
Terms of business
7.600.000 PLN, due
date: 12.04.2017,
interest rate 4,7%
19.150.000 PLN,
due date:
27.04.2017, interest
rate 7,90%
12.100.000 PLN,
due date:
28.04.2017, interest
rate 4,74%
1.000.000 PLN, due
date: 18.05.2017,
interest rate 4,74%
3.000.000 PLN, due
date: 23.06.2017,
interest rate 4,74%
3.000.000 PLN, due
date: 08.10.2017,
interest rate 4,74%
3.000.000 PLN, due
date: 24.06.2017,
interest rate 4,74%
1.350.000 PLN, due
date: 08.06.2017,
interest rate 8,00%
19.150.000,00 PLN
+ interest
770.931,78 PLN
12.100.000,00 PLN
+ interest
260.842,85 PLN
1.000.000,00 PLN
+ interest
16.492,60 PLN
3.000.000,00 PLN
+ interest
50.646,58 PLN
3.000.000,00 PLN
+ interest
45.192,33 PLN
3.000.000,00 PLN
+ interest 50.256,99
PLN
1.350.000,00 PLN
+ interest
8.580,82 PLN
In a year 2016 company buy and sell bonds of investment fund: MCI.TechVentures 1.0 FIZ. Transaction amount
was: 25.000.000 PLN. Interest received: 1.025.000 PLN.
Total receivables of bills with interests is: 54.298.388,06 PLN.
30. Other important information about transactions in group
All the transactions within the group are made based on the market value. All the important transactions are
described in note no 28.
31. Risk management
The Company uses financial instruments such as: promissory notes, bills of exchange, bank loans, bonds, cash
and short-term investments.
Introduction and other explanatory information is a integrally part of financial statements
MCI Venture Projects Limited VI Joint-Stock Partnership
33
Financial statements for a period 01.12.2013 - 31.10.2015
Other explanatory information
Due to the granted funds, the Company has signed a contract that secures the interest rate (note no. 23).
However, due to the failure to use the loan limit, this financial instrument is not utilized.
The Company, due to the external funding – in the bills of exchange that grant the funds for external entities as
purchasing the bills of exchange or bonds, signs contracts based on the fixed interest rate, and therefore is not
exposed to the risk of their fluctuations.
The Company is not exposed to the currency risk due to the fact that it does not carry out any transactions in
foreign currencies.
The Company monitors the risk of the lack of funds for the discharge of the liabilities. Currently, according to
the Management assessment, the currency risk does not exist.
32. Business activity continuation
On 31 October 2016 the cumulative loss exceeded the total of supplementary capital, reserve capital and one
third of the share capital. In line with Article 397 of the Code of Commercial Companies the Management
Board of the General Partner convened an Extraordinary General Meeting which on 22 December 2016 passed a
resolution to continue the Company's existence.
Additionally, on 25 January 2016 an agreement was signed regarding the payment of liabilities resulting from
the purchase of ABC Data S.A. shares extending payment due date and therefore there is no threat that the
Company will have to pay its liabilities within 12 months.
Also, the Company has a line of credit up to PLN 30m with Raiffeisen Bank to secure its liquidity
The Company's financial plans for the next couple of years include significant dividend inflows from ABC Data
S.A., which will secure the payment of its obligations.
33. Remuneration of the entity entitled to audit the financial statements
Remuneration for the financial statements audit for 2016 is 14,000 PLN net.
Active Partner
Management Board
of the MCI Venture Projects Ltd.
Maciej Strzelecki CMM Ltd.
Chief Accountant
Warszawa, 22.12.2016
Introduction and other explanatory information is a integrally part of financial statements
TRANSLATION
TRANSLATION
OPINION AND REPORT OF INDEPENDENT
AUDITOR
on audit of financial statements of
MCI Venture Projects Spółka z ograniczoną odpowiedzialnością VI S.K.A.
seated in Warsaw for a period from 1 November 2015 to 31 October 2016
TRANSLATION
MCI Venture Projects Spółka z ograniczoną odpowiedzialnością VI S.K.A.
Opinion on the financial statements
For the financial year ended 31 October 2016
This document is a free translation of the Polish original. Terminology current in Anglo-Saxon countries has been used
where practicable for the purposes of this translation in order to aid understanding. The binding Polish original should be
referred to in matters of interpretation.
OPINION OF THE INDEPENDENT AUDITOR
To the General Meeting MCI Venture Projects spółka z ograniczoną odpowiedzialnością VI S.K.A.
We have audited the accompanying financial statements of MCI Venture Projects spółka z
ograniczoną odpowiedzialnością VI S.K.A., seated in Warsaw, st. Plac Europejski 1 (“the
Company”), which comprise the statement of financial position as at 31 October 2016, the
statement of comprehensive income, the statement of changes in equity and the cash flow
statement for the year then ended and notes to the financial statements, comprising of a summary
of significant accounting policies and other explanatory information.
The board of the General Partner Responsibility for the Financial Statements
The board of General Partner is responsible for the correctness of the accounting records, the
preparation and fair presentation of these financial statements in accordance with International
Financial Reporting Standards, as adopted by European Union and other applicable regulations
and preparation of the Report on the Company’s activities. Management of the Company is also
responsible for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
According to the Accounting Act dated 29 September 1994 (Official Journal from 2016, item 1047
with amendments) (“the Accounting Act”), the board of general partner is required to ensure that
the financial statements and the Report on the Company’s activities are in compliance with the
requirements set forth in the Accounting Act.
1
PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k., 6/1b Orzycka Street, 02-695 Warszawa
entered in the register of entities authorised to audit financial statements under number 477
District Court for the Capital City Warsaw in Warsaw, XIII Commercial Department of the National Court Register – KRS no.
000057947
TRANSLATION
MCI Venture Projects Spółka z ograniczoną odpowiedzialnością VI S.K.A.
Opinion on the financial statements
For the financial year ended 31 October 2016
Auditor’s Responsibility
Our responsibility, based on our audit, is to express an opinion on these financial statements and
on this financial statements accordance with the rules demanding to use accounting policy of this
financial statement and whether the financial statements are derived from properly maintained
accounting records. We conducted our audit in accordance with section 7 of the Accounting Act,
national standards on auditing issued by Polish National Council of Certified Auditors and in matters
not regulated by the national standards on auditing, when determining the detailed methodology
for the planning and performing the audit and if in doubt - International Standards on Auditing.
Those standards require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance whether the financial statements and the accounting records from
which they are derived are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on our judgment, including
the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s
preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting estimates made by the board of
General Partner, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Opinion
In our opinion, the accompanying financial statements of MCI Venture Projects spółka z
ograniczoną odpowiedzialnością VI S.K.A. have been prepared and present fairly, in all material
respects, the financial position of the Company as at 31 October 2016 and its financial performance
and its cash flows for the year then ended in accordance with International Accounting Standards,
International Financial Reporting Standards as adopted by the European Union and related
interpretations issued in form of regulation of European Commission and to the extent not regulated
by those standards – in accordance the Accounting Act and related bylaws, are in compliance with
the respective regulations and the provisions of the Company’s articles of association that apply to
the Company’s financial statements and have been prepared from accounting records that, in all
material respects, have been properly maintained.
2
PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k., 6/1b Orzycka Street, 02-695 Warszawa
entered in the register of entities authorised to audit financial statements under number 477
District Court for the Capital City Warsaw in Warsaw, XIII Commercial Department of the National Court Register – KRS no.
000057947
TRANSLATION
MCI Venture Projects Spółka z ograniczoną odpowiedzialnością VI S.K.A.
Opinion on the financial statements
For the financial year ended 31 October 2016
Emphasis of Matter
Without qualifying our conclusion, we draw your attention to the fact that the cumulative losses as
of the date 31 October 2016 in the amount of PLN 86 278 085 exceeded the sum of supplementary
capital and reserve capital and one-third of share capital. Based on Article 397 of Polish
Commercial Companies Code as at 22 December 2016 the Board of the General Partner convened
a General Meeting and adopted the resolution regarding Company’s further existence as going
concern.
Other Matters
As required under the Accounting Act, we also report that the Report on the Company’s activities
includes, in all material respects, the information required by Art. 49 of the Accounting Act and the
information is consistent with the financial statements.
Signed on the Polish original
Cezary Bąkiewicz
Certified Auditor No. 12232
Key Certified Auditor
On behalf of PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k.
registration number 477
6/1B Orzycka Street
02-695 Warsaw
Warsaw, 13 January 2017
3
PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k., 6/1b Orzycka Street, 02-695 Warszawa
entered in the register of entities authorised to audit financial statements under number 477
District Court for the Capital City Warsaw in Warsaw, XIII Commercial Department of the National Court Register – KRS no.
000057947
TRANSLATION
Report
on the audit of financial statements of
MCI Venture Projects Spółka z ograniczoną odpowiedzialnością VI S.K.A.
seated in Warsaw for a period from 1 November 2015 to 31 October 2016
MCI Venture Projects spółka z ograniczoną odpowiedzialnością VI S.K.A.
For the financial year ended 31 October 2016
This document is a free translation of the Polish original. Terminology current in Anglo-Saxon countries has been used
where practicable for the purposes of this translation in order to aid understanding. The binding Polish original should be
referred to in matters of interpretation.
Contents
1.
1.1.
1.1.1.
1.1.2.
1.1.3.
1.1.4.
1.1.5.
1.2.
1.2.1.
1.2.2.
1.3.
1.4.
General
General information about the Company
Company name
Registered office
Registration in the National Court Register
Share capital structure and related parties
The Board of the General Partner
Auditor information
Key certified auditor information
Authorized auditor information
Prior period financial statements
Audit scope and responsibilities
3
3
3
3
3
3
4
4
4
4
5
5
2.
2.1.
2.2.
2.3.
Financial analysis of the Company
Statement of financial position
Income statement and statement of comprehensive income
Selected financial ratios
7
7
8
9
3.
3.1.
3.2.
3.3.
3.4.
Detailed report
Proper operation of the accounting system
Notes to the financial statements
Report on the Company’s activities
Information on the opinion of the independent auditor
10
10
10
10
11
2
PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k., 6/1b Orzycka Street, 02-695 Warszawa
entered in the register of entities authorised to audit financial statements under number 477
District Court for the Capital City Warsaw in Warsaw, XIII Commercial Department of the National Court Register – KRS no. 0000579479
TRANSLATION
MCI Venture Projects spółka z ograniczoną odpowiedzialnością VI S.K.A.
Report the financial statements
on the
statements
For
thefinancial
financial
year ended 31 October 2016
1.
General
1.1.
General information about the Company
1.1.1. Company name
MCI Venture Projects spółka z ograniczoną odpowiedzialnością VI S.K.A.
1.1.2. Registered office
St. Plac Europejski 1, Warsaw 00-844
1.1.3. Registration in the National Court Register
Registration court:
Date:
Registration number:
REGON:
NIP:
District Court seat in Warsaw, XII Commercial Department of the
National Court Register
14 November 2013
KRS 0000485654
146978907
525-25-77-368
The main business of the Company are:
-
Financial holding,
1.1.4. Share capital structure and related parties
At 31 October 2016 and the day of this opinion the share capital of the Company in amount of
50 000 was divided as follows:
Nominal
value of Percentage
shares
of share
TPLN capital (%)
Number of
shares
Voting
rights (%)
MCI.PrivateVentures Fundusz
Inwestycyjny Zamkniety
50 000
100,00%
50,00
100,00%
TOTAL
50 000
100,00%
50,00
100,00%
Name of the Shareholder
The share of the General Partner of MCI Venture Projects Sp. z o.o. is 1 PLN.
The Company as at 31 October 2016 and the day of these opinion:
-
Is a subsidiary of MCI Private Venture FIZ, which as the parent company has 99,99%
of share in its capital and 99,99% of share in voting rights;
-
Is an significant investor of Biotech Varsovia Pharma Sp. z o.o. in liquidation with 35%
of share;
-
Is a parent company for ABC Data SA with 61,52% of the share capital and 61,52% of
voting rights.
3
PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k., 6/1b Orzycka Street, 02-695 Warszawa
entered in the register of entities authorised to audit financial statements under number 477
District Court for the Capital City Warsaw in Warsaw, XIII Commercial Department of the National Court Register – KRS no.
0000579479
TRANSLATION
MCI Venture Projects spółka z ograniczoną odpowiedzialnością VI S.K.A.
Report the financial statements
on the
statements
For
thefinancial
financial
year ended 31 October 2016
1.1.5. The Board of the General Partner
The Board of the General Partner is responsible for management of the Company.
At 31 October 2016, the Board of the General Partners was comprised of the following
members:




Czechowicz Tomasz
Ogryczak Ewa
Marcińczyk Wojciech
Smorszczewski Cezary
- board president,
- board member,
- board member,
- board member.
On 7 December 2016 Cezary Smorszczewski resigned from his position as a Board Member.
At the day of these opinion, the Board of the General Partners was comprised of the following
members:



1.2.
Czechowicz Tomasz
Ogryczak Ewa
Marcińczyk Wojciech
- board president,
- board member,
- board member.
Auditor information
1.2.1. Key certified auditor information
Name and surname:
Registration number:
Cezary Bąkiewicz
12232
1.2.2. Authorized auditor information
Name:
Address:
Registration number:
Registration court:
NIP number:
PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k.
6/1B Orzycka Street, 02-695 Warsaw
KRS 0000579479
District Court for the Capital City Warsaw in Warsaw,
XIII Commercial Department of the National Court Register
521-05-27-710
PKF Consult Spółka z ogarniczoną odpowiedzialnością Sp. k. is entered in the register of
entities authorised to audit financial statements under number 477.
The financial statements have been audited in accordance with the contract dated 21 November
2016, concluded on the basis of the resolution of General Meeting dated 5 December 2016 on
the appointment of the auditor.
We audited the financial statements during the period from 19 November 2016 to the day of
this opinion.
Key certified auditor and PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k. fulfill
independence requirements as described in Art. 56 points 3 and 4 of the Act on certified auditors
and their government, audit firms and public oversight dated 7 May 2009 (Consolidated text,
Journal of Laws of 2016, item 1000, as amended).
4
PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k., 6/1b Orzycka Street, 02-695 Warszawa
entered in the register of entities authorised to audit financial statements under number 477
District Court for the Capital City Warsaw in Warsaw, XIII Commercial Department of the National Court Register – KRS no.
0000579479
TRANSLATION
MCI Venture Projects spółka z ograniczoną odpowiedzialnością VI S.K.A.
Report the financial statements
on the
statements
For
thefinancial
financial
year ended 31 October 2016
1.3.
Prior period financial statements
The financial statements as at and for the year ended 31 October 2015 were audited by PKF
Consult Spółka z ograniczoną odpowiedzialnością Sp.k. and received an opinion with an
emphasis of matter following content:
“Without qualifying our conclusion, we draw your attention to the fact that the cumulative losses
as of the date 31 October 2015 in the amount of PLN 34 977 387 exceeded the sum of
supplementary capital and reserve capital and one-third of share capital. Based on Article 397
of Polish Commercial Companies Code as at 14 December 2015 the Board of the General
Partner convened a General Meeting and adopted the resolution regarding Company’s further
existence as going concern.”
The financial statements were approved by the General Meeting on 31st March 2016. Based on
the resolution no. 3 of the General Meeting dated 31st March 2016 repealed by the resolution
no. 1 of the Extraordinary General Meeting, on 22nd December 2016 the Extraordinary General
Meeting adopted the resolution no. 2 in which it resolved to cover the loss for the financial year
ended 31 October 2015 of PLN 34 977 387 by profits earned in subsequent financial years. On
22 December 2016 the General Meeting
The financial statements were submitted to the Registry Court on 29 April 2016.
1.4.
Audit scope and responsibilities
This report was prepared for the General Meeting of MCI Venture Projects spółka z ograniczoną
odpowiedzialnością VI S.K.A. seated in Warsaw, st Plac Europejski 1 and relates to the
statement of financial position as at 31 October 2016, the statement of comprehensive income,
the statement of changes in equity and the cash flow statement for the year then ended and
notes to the financial statements, comprising of a summary of significant accounting policies
and other explanatory information.
The audited Company prepares its financial statements in accordance with International
Financial Reporting Standards as adopted by the European Union on the basis of the decision
of the board of the General Partner dated 16 October 2015.
We conducted the audit in accordance with section 7 of the Accounting Act, national standards
on auditing issued by Polish National Council of Certified Auditors and in matters not regulated
by the national standards on auditing, when determining the detailed methodology for the
planning and performing the audit and if in doubt - International Standards on Auditing.
The board of the General Partner is responsible for the correctness of the accounting records
and the preparation and fair presentation of the financial statements in accordance with
International Financial Reporting Standards as adopted by the European Union and with other
applicable regulations and preparation of the Report on the Company’s activities.
Our responsibility is to express an opinion and to prepare a supplementing report on the
financial statements and whether the financial statements have been prepared from properly
maintained accounting records based on our audit.
The board of the General Partner submitted a statement, at the same date as this report, as to
the true and fair presentation of the financial statements presented for audit, which confirmed
5
PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k., 6/1b Orzycka Street, 02-695 Warszawa
entered in the register of entities authorised to audit financial statements under number 477
District Court for the Capital City Warsaw in Warsaw, XIII Commercial Department of the National Court Register – KRS no.
0000579479
TRANSLATION
MCI Venture Projects spółka z ograniczoną odpowiedzialnością VI S.K.A.
Report the financial statements
on the
statements
For
thefinancial
financial
year ended 31 October 2016
that there were no undisclosed matters which could significantly influence the information
presented in the financial statements.
All required statements, explanations and information and all our requests for additional
documents and information necessary for expressing our opinion and preparing the report have
been fulfilled.
The scope of the work planned and performed has not been limited in any way. The method
and scope of our audit is detailed in working papers prepared by us and retained in the offices
of PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k.
6
PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k., 6/1b Orzycka Street, 02-695 Warszawa
entered in the register of entities authorised to audit financial statements under number 477
District Court for the Capital City Warsaw in Warsaw, XIII Commercial Department of the National Court Register – KRS no.
0000579479
TRANSLATION
MCI Venture Projects spółka z ograniczoną odpowiedzialnością VI S.K.A.
Report the financial statements
on the
statements
For
thefinancial
financial
year ended 31 October 2016
2.
Financial analysis of the Company
2.1.
Statement of financial position
2016-10-31
PLN '000
% of total
2015-10-31
PLN '000
% of total
change
%
0,0
0,0%
132,5
0,0%
-100,0%
0,0
0,0%
132,5
0,0%
-100,0%
54 660,1
16,6%
503,7
0,2%
10751,7%
42,6
0,0%
0,0
0,0%
-
Assets measured at fair value
162 597,4
49,5%
242 740,2
90,2%
-33,0%
Cash and cash equivalents
111 168,4
33,8%
25 763,4
9,6%
331,5%
328 468,5
100,0%
269 007,2
100,0%
22,1%
328 468,5
100,0%
269 139,7
100,0%
22,0%
2016-10-31
PLN '000
% of total
2015-10-31
PLN '000
% of total
change
%
Share capital
50,0
0,0%
50,0
0,0%
0,0%
Other capital
0,0
0,0%
0,0
0,0%
0,0%
-86 278,1
-26,3%
-34 977,4
-13,0%
-146,7%
-86 228,1
-26,3%
-34 927,4
-13,0%
-146,9%
104 113,5
31,7%
0,0
0,0%
-
104 113,5
31,7%
0,0
0,0%
-
303 317,4
92,3%
304 067,1
113,0%
-0,2%
7 248,5
2,2%
0,0
0,0%
-
17,2
0,0%
0,0
0,0%
-
310 583,1
94,6%
304 067,1
113,0%
2,1%
328 468,5
100,0%
269 139,7
100,0%
22,0%
ASSETS
Non-current assets
Available-for-sale Financial Assets
Current assets
Bills of exchange and other receivables
Available-for-sale Financial Assets
TOTAL ASSETS
EQUITY AND LIABILITIES
EQUITY
Accumulated profit
Long-term liabilities
Liabilities under issue of bonds
Short-term liabilities
Liabilities due acquired shares and other
liabilities
Liabilities under issue of bonds
Provisions for other liabilities and other
debit
TOTAL EQUITY AND LIABILITIES
7
PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k., 6/1b Orzycka Street, 02-695 Warszawa
entered in the register of entities authorised to audit financial statements under number 477
District Court for the Capital City Warsaw in Warsaw, XIII Commercial Department of the National Court Register – KRS no.
0000579479
TRANSLATION
MCI Venture Projects spółka z ograniczoną odpowiedzialnością VI S.K.A.
Report the financial statements
on the
statements
For
thefinancial
financial
year ended 31 October 2016
2.2.
Income statement and statement of comprehensive income
Gain (loss) on valuation and disposal shares,
stocks and investment certificates
Dividends received
Interest revenue
Profit (loss) on sales
Administrative and general expenses
Other operating expeses
01.11.201531.10.2016
PLN '000
% of net
profit (loss)
01.12.201331.10.2015
PLN '000
% of net
profit (loss)
change
%
-80 156,2
156,2%
-61 818,2
176,7%
-29,7%
30 053,5
-58,6%
27 740,0
-79,3%
8,3%
2 631,5
-5,1%
0,0
0,0%
-
-47 471,2
92,5%
-34 078,2
97,4%
-39,3%
-142,9
0,3%
- 486,6
1,4%
70,6%
-0,3
0,0%
-0,1
0,0%
-200,0%
-47 614,4
92,8%
-34 564,9
98,8%
-37,8%
Financial revenues
76,1
-0,1%
0,0
0,0%
-
Financial expenses
-3 762,3
7,3%
-412,5
1,2%
-812,1%
-51 300,7
100,0%
-34 977,4
100,0%
-46,7%
0,0
0,0%
0,0
0,0%
-
-51 300,7
100,0%
-34 977,4
100,0%
-46,7%
01.11.201531.10.2016
PLN '000
% of net
profit (loss)
01.12.201331.10.2015
PLN '000
% of net
profit (loss)
change
%
Net profit (loss)
-51 300,7
100,0%
-34 977,4
100,0%
-46,7%
Total comprehensive income
-51 300,7
100,0%
-34 977,4
100,0%
-46,7%
Profit (loss) on operating activities
Profit (loss) before taxation
Income tax
Net profit (loss)
Statement of comprehensive income
8
PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k., 6/1b Orzycka Street, 02-695 Warszawa
entered in the register of entities authorised to audit financial statements under number 477
District Court for the Capital City Warsaw in Warsaw, XIII Commercial Department of the National Court Register – KRS no.
0000579479
TRANSLATION
MCI Venture Projects spółka z ograniczoną odpowiedzialnością VI S.K.A.
Report the financial statements
on the
statements
For
thefinancial
financial
year ended 31 October 2016
2.3.
1.
Selected financial ratios
Return on assets (ROA)
units
01.11.201531.10.2016
01.12.201331.10.2015
%
-17,2
-26,0
%
126,3
113,0
1,1
0,9
(net results / average total assets) *100
2.
Debt ratio
(total liabilities / total assets) *100
3.
Current ratio
(current assets /current liabilities)
9
PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k., 6/1b Orzycka Street, 02-695 Warszawa
entered in the register of entities authorised to audit financial statements under number 477
District Court for the Capital City Warsaw in Warsaw, XIII Commercial Department of the National Court Register – KRS no.
0000579479
TRANSLATION
MCI Venture Projects spółka z ograniczoną odpowiedzialnością VI S.K.A.
Report the financial statements
on the
statements
For
thefinancial
financial
year ended 31 October 2016
3.
Detailed report
3.1.
Proper operation of the accounting system
The Company maintains current documentation describing the applied accounting principles
adopted by the Board of the General Partner to the extent required by Art. 10 of the Accounting
Act.
During the audit of the financial statements, we tested, on a sample basis, the operation of the
accounting system.
On the basis of the work performed, we have not identified material irregularities in the
accounting system which have not been corrected and that could have a material impact on the
financial statements, including:
-
reasonableness and continuity of the applied accounting policies,
-
documentation of business transactions,
-
reliability, accuracy and verifiability of accounting records and connections in accounting
records,
-
correctness of the opening balance in accounting books on the basis of audited
balances for prior year,
-
connections of accounting records with accounting documents and financial
statements,
-
reasonableness of methods used to secure access to data and processing system in
computer,
-
fulfillment of the requirements for securing accounting documents and archiving the
accounting books and financial statements.
Our audit was not conducted for the purpose of expressing a comprehensive opinion on the
operation of the accounting system.
The Company performed a physical count of assets in accordance with the requirements and
time frame specified in Art. 26 of the Accounting Act.
3.2.
Notes to the financial statements
All information included in the notes to the financial statements, comprising of a summary of
significant accounting policies and other explanatory notes, is, in all material respects,
presented correctly and completely. This information should be read in conjunction with the
financial statements.
3.3.
Report on the Company’s activities
The Report on the Company’s activities includes, in all material respects, the information
required by Art. 49 of the Accounting Act and the information is consistent with the financial
statements.
10
PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k., 6/1b Orzycka Street, 02-695 Warszawa
entered in the register of entities authorised to audit financial statements under number 477
District Court for the Capital City Warsaw in Warsaw, XIII Commercial Department of the National Court Register – KRS no.
0000579479
TRANSLATION
MCI Venture Projects spółka z ograniczoną odpowiedzialnością VI S.K.A.
Report the financial statements
on the
statements
For
thefinancial
financial
year ended 31 October 2016
3.4.
Information on the opinion of the independent auditor
Based on our audit of the financial statements of the Company as at and for the year ended
31 October 2016, we have issued an unqualified opinion with an emphasis of matter.
Emphasis of Matter
Without qualifying our conclusion, we draw your attention to the fact that the cumulative losses
as of the date 31 October 2016 in the amount of 86 278 085 PLN exceeded the sum of
supplementary capital and reserve capital and one-third of share capital. Based on Article 397
of Polish Commercial Companies Code as at 22 December 2016 the Board of the General
Partner convened a General Meeting and adopted the resolution regarding Company’s further
existence as going concern.
Signed on the Polish original
Cezary Bąkiewicz
Certified Auditor No. 12232
Key Certified Auditor
On behalf of PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k.
registration number 477
6/1B Orzycka Street
02-695 Warsaw
Warsaw, 13 January 2017
11
PKF Consult Spółka z ograniczoną odpowiedzialnością Sp. k., 6/1b Orzycka Street, 02-695 Warszawa
entered in the register of entities authorised to audit financial statements under number 477
District Court for the Capital City Warsaw in Warsaw, XIII Commercial Department of the National Court Register – KRS no.
0000579479
MCI Venture Projects Limited VI Joint-Stock Partnership
The Management Boards of Activity Partner Report of Activities of The Company
for a period 01.11.2015 – 31.10.2016
Corporate information
a)
MCI Venture Projects Limited VI Joint-Stock Partnership was established in 2013 with
registered office in Warsaw at E. Plater Street, 00-113 Warsaw, National Economy
Register: 146978907, Tax Identification Number: 525-25-77-368.
b)
MCI Venture Projects Limited VI Joint-Stock Partnership registered at the Warsaw
Regional Court, entry no. KRS (NCR) 0000485654 at date 14.11.2013.
c)
The principal activities of the Company comprise:
 holding company,
 financial activity,
 consulting.
d)
The Company has an unlimited period of operation.
e)
Companys is a CIT-payer from 01.11.2015
Ownership structure
Share capital: 50.001,00 PLN
MCI Venture Projects Sp. z o. o. (contribution of active partner)
MCI.PrivateVentures Close-ended Investment Fund (shareholder)
1,00 PLN
50 000,00 PLN
Information about financial instruments. Risks
The shares of a WSE-listed ABC Data S.A. are among the Company's significant assets. The current
macroeconomic and political situation causes major stock fluctuations over short periods of time,
which translates into a negative financial result for the Company. ABC Data S.A. has strong financial
foundations and is constantly growing; therefore there is no risk of a sudden drop in its value.
The Company finances its operations with own funds or from issues of promissory notes. In the above
respect, the Management Board of the general partner regards the interest rate risk on the debt as
insignificant. The relevant liabilities include certain defined interest payments based on a fixed interest
rate.
The Company has acquired financing of PLN 30m from Raiffeisen Bank. The interest of the credit
line is based on WIBOR1M. In connection with the above, the Company entered into the so-called
Ancillary Agreement to secure the interest rate. As at this date, the line of credit has not been utilised,
and therefore the instrument does not generate positive or negative cash flows.
In order to raise financing for the Company's group, the Management Board of the General Partner
decided to issue bonds abroad, on the Czech market. The Company has invested the capital raised in
the above manner of CZK 699m (interest rate 4.16%) in the promissory bonds of related parties, i.e.
MCI Management Sp. z o.o. (previous name Alternative Investment Partners Sp. z o. o.). The interest
rate of the purchased promissory notes is defined in the range of 4.7-4.8%, which allows the company
to generate a profit of approx. 0.5%.
(signatures)
Strona 1 z 3
Major related party transactions.
Last year the Company purchased from related parties shares in Biotech Varsovia Pharma Sp. z o. o.
in liquidation as well as shares of ABC Data S.A. Liabilities to related parties in connection with the
financial transactions conducted are as follows:
Purchase of shares from ABCD Management Spółka z ograniczoną odpowiedzialnością
Spółka Jawna
PLN 199,477,467
Purchase of shares from MCI Venture Projects Spółka z ograniczoną odpowiedzialnością Spółka
Jawna
PLN 103,767,400
Despite its being much overdue, the above liability does not constitute a threat to the Company's going
concern status because an agreement was signed on 25 January 2016 to extend the due date.
Additionally, the Company is party to the following promissory note agreements:
Type of transaction
Sole bill (promissory note)
Contracting party
MCI Management Ltd.
(poprzednia nazwa: Alternative
Investment Partners Ltd.)
Sole bill (promissory note)
Investventures Ltd.
Sole bill (promissory note)
MCI Fund Management Ltd.
Sole bill (promissory note)
Sole bill (promissory note)
Sole bill (promissory note)
Sole bill (promissory note)
Sole bill (promissory note)
MCI Management Ltd.
(poprzednia nazwa: Alternative
Investment Partners Sp. z o. o
MCI Management Ltd.
(poprzednia nazwa: Alternative
Investment Partners Sp. z o. o
MCI Management Ltd.
(poprzednia nazwa: Alternative
Investment Partners Sp. z o. o
MCI Management Ltd.
(poprzednia nazwa: Alternative
Investment Partners Sp. z o. o
Finventures Ltd.
Terms of business
7.600.000 PLN, due
date: 12.04.2017,
interest rate 4,7%
19.150.000 PLN,
due date:
27.04.2017, interest
rate 7,90%
12.100.000 PLN,
due date:
28.04.2017, interest
rate 4,74%
1.000.000 PLN, due
date: 18.05.2017,
interest rate 4,74%
3.000.000 PLN, due
date: 23.06.2017,
interest rate 4,74%
3.000.000 PLN, due
date: 08.10.2017,
interest rate 4,74%
3.000.000 PLN, due
date: 24.06.2017,
interest rate 4,74%
1.350.000 PLN, due
date: 08.06.2017,
interest rate 8,00%
Value of
transaction
7.600.000,00 PLN
+ interest
197.683,29 PLN
19.150.000,00 PLN
+ interest
770.931,78 PLN
12.100.000,00 PLN
+ interest
260.842,85 PLN
1.000.000,00 PLN
+ interest
16.492,60 PLN
3.000.000,00 PLN
+ interest
50.646,58 PLN
3.000.000,00 PLN
+ interest
45.192,33 PLN
3.000.000,00 PLN
+ interest 50.256,99
PLN
1.350.000,00 PLN
+ interest
8.580,82 PLN
Significant assets
At the end of the financial year company has significant assets as below:
Biotech Varsovia Pharma in liquidation shares
Short-term bills
ABC Data joint-stock shares
42 597 zł
54 298 388 zł
162 597 398 zł
Total
216 938 383 zł
(signatures)
Strona 2 z 3
Due to the credit agreement, concluded with Raiffeisen Bank Polska S.A., the pledge was registered
on the ABC Data S.A. shares worth 37.500.000 PLN. The amount of the shares, subject to blocking
due to the pledge, is 69.440.716.
Achievments in research and development
The Company does not run any activities related to research and development.
Company’s shares.
The Company does not own any Company’s shares.
Divisions, departments.
The Company does not have any divisions.
Company strategy
The Company's main asset are shares in ABC Data S.A. The Company follows a stable dividend
policy. The planned inflows secure the payment of the company's future liabilities. Additionally, ABC
Data S.A. plans a number of optimization efforts designed to reinforce its market position and to
improve the effectiveness of its operations. In our opinion the above efforts will be reflected in the
Company's valuation, its profitability and will result in higher dividend payments.
In the financial year ended 31 Oct. 2016 the Company reported a loss of PLN 51,301,000. In the
opinion of the Management Board, despite its significant impact on the company's profit, the above
loss is not a threat to the company's going concern status because asset fluctuations are taken into
account in financial plans. In connection with Article 397 of the Code of Commercial Companies of
22 December 2016 a resolution was passed to continue the company's operations.
(signatures)
Strona 3 z 3