CONCISE INTERIM FINANCIAL STATEMENTS FOR THE FISCAL PERIOD BETWEEN JANUARY 1 AND SEPTEMBER 30, Pursuant to Law 3556/2007, article 6

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1 CONCISE INTERIM FINANCIAL STATEMENTS FOR THE FISCAL PERIOD BETWEEN JANUARY 1 AND SEPTEMBER 30, 2013 Pursuant to Law 3556/2007, article 6 CRETA FARM S.A. S.A. Reg. no.: 11867/06/Β/86/38 15th km of Rethymnon - Herakleion National Road Municipality of Rethymni

2 Contents Α. Interim Financial Statements BACKGROUND General information on the company and General information about the financial statements FINANCIAL STATEMENTS Concise Statement of Financial Position Concise Statement of Comprehensive Income for the period Concise Statement of Comprehensive Income for the period Concise Statement of Changes in Equity Concise statement of Cash Flows - Indirect method SELECTED NOTES ON THE INTERIM FINANCIAL STATEMENTS Basis for preparing the interim financial statements Accounting principles Estimates Significant events Operating segments Tangible assets Intangible assets Earnings per share Seasonal nature of business activities and changes Inventories Customers and other trade receivables Loans Suppliers and relevant liabilities Operating income Operating expenses Cash flows Dividends impairment of assets Contingent liabilities and receivables Structure Forecasts Related parties disclosures Personnel employed Income tax Financial instruments Voluntary changes in the accounting policy and quantitative effects B. Period details and information

3 Α. Interim Financial Statements The attached concise interim financial statements for the period between were approved by the Board of Directors for ''CRETA FARM C.I.S.A." on and made public by posting them on the Internet at and at the website of Athens Exchange, where they will remain available to investors for at least five (5) years from the date of drafting and publication thereof. It is noted that the concise financial details and information published in Press, which result from the interim financial statements, aim to provide the reader with a general update on the financial standing and results of the issuing entity, but do not offer a complete view on the financial position, financial performances and cash flows of the Company and, as provided for by the International Financial Reporting Standards. The President & Managing Director The Vice-President & Managing Director Emmanuel Domazakis Konstantinos Domazakis ID No.: Ι / 74 ID No.: ΑΒ / 06 The Chief Financial Officer The Head Of Accounting Ioannis Papadopoulos Evangelos Tsakiris ID No.: Ξ / 86 ID no.: Σ /00 OEE License Reg. no.: Accountant, 1 st Class 2

4 1. BACKGROUND 1.1. General information on the company and Company name These financial statements refer to the, where the parent company is called: "CRETA FARM S.A Company CRETA FARM S.A. is a Société Anonyme, established in Greece (Rethymnon), in October 1979, and its registered office is located in the Municipality of Arkadio, Rethymnon, 15 km of Rethymnon - Herakleion National Road (Postcode: 74100, Latzimas area). "CRETA FARM S.A. is the superior parent company of the. The shares of the company have been listed in Athens Stock Exchange since April 3, The company's shares are traded in the ''Mid and Small Capitalization'' category. It belongs to the class "Foods and Beverages - Foods" Purpose and activities Details of the activities undertaken by the are: 1. Importation, production, breeding, fattening, forwarding, exportation, distribution, exploitation and marketing of animals of domestic or foreign origin, as well as the operation and exploitation of slaughterhouses. 2. Importation, representation, production, processing, breeding, processing, standardising, packaging, forwarding, freezing, storing, exporting, distributing, exploitation and marketing of fresh, chilled and frozen meat, related articles, products, or by-products thereof, and other related third-party production. 3. Importation, representation, production, processing, breeding, processing, standardising, packaging, forwarding, freezing, storing, exporting, transporting, exploitation and marketing of fish, fish catch, and marine organisms of any type, fries of marine organizations of any type, of similar articles, products and by-products, and other related third-party production. 4. Importing, representation, production, processing, breeding, processing, standardization, packaging, forwarding, freezing, storing, exporting, transporting, exploitation and marketing of olive oil and oils, coffee and beverages, wine, wine products, raki, tsikoudia, rakomelo, ouzo, tsipouro, beverages and soft drinks of any kind, alcoholic or not, of similar types, products and by-products of them, and other related third-party production. 5. Importing, representation, production, processing, breeding, processing, standardising, packaging, forwarding, freezing, storing, exporting, transporting, exploitation and marketing of animal food, fish food, specialized food, and all kinds of agricultural products, organic - environmentally - friendly products / cultivation methods, frozen or non-frozen food, bakery goods, pastry products, sweets and confectionary products, all kinds of agricultural, breeding, fishing and farming products, including all food in general, as well as the pertinent raw materials and all kinds of consumer goods. 6. Construction, operation, and management of facilities and waste processing plant, plants producing organic fertilizers, waste composting, neutralization, treatment, disposal and wastes management (solid and liquid) of the Company's facilities and plants, as well as the exploitation, transportation, trading and provision of pertinent services with regards to any kinds of products and by-products, resulting from the operation and management of the above facilities and plants, including the production of electrical power for own-use or sale. 7. Undertaking and manufacture of any kinds of technical projects for the private segment (indicatively: buildings, repairs, etc.). 8. Activation in the field of restaurant and alimentation product field, as well as importing, representation, forwarding, storage, exportation, distribution, exploitation and marketing of all kinds of items and products necessary for the operation and exploitation of dining and feeding areas (health concern facilities). 9. Research, development, monitoring, improvement, forwarding, concession, provision of relevant consulting services and training, and marketing of modern and/or innovative methods and expertise on cultivation, fattening, production, processing, packaging, refrigeration, forwarding, exploitation, management and trading of every Company object within the context of its purpose. 3

5 1.2. General information about the financial statements Referring entities in the Financial Statements The financial statements are the Consolidated Financial Statements for the and the Separate Financial Statements for the parent company CRETA FARM S.A Period and currency The financial statements refer to the period from until The financial statements are shown in, which is the operating currency of the s parent company. The amounts shown are rounded in thousands of, unless stated otherwise. The comparative figures relate to the respective period ( ) with regard to the accounts of total income, cash flows and changes in equities, and to 2012 ( ) fiscal period with regard to the accounts on the financial position Application of IFRS Every IFRS issued by the International Accounting Standards Board and adopted by the European Union, in force during the reporting period has been implemented in full. The present financial statements have been prepared based on IAS Going concern The financial statements have been prepared on the basis of going concern. The administration assesses that there is no evidence of challenging the applicability of this principle Fair view The management has concluded that the financial statements present fairly the financial position, the financial performance and the cash flow of the company and the group Approval of financial statements The financial statements were approved by the Company Board of Directors on November 29, Company with limited duration The duration of the company, under it statute, expires in Based on applicable legislation, indefinite duration for a company is not allowed; however, it can be extended after a decision taken by the shareholder General Assembly, with quorum and plurality voting as provided for by its statute. 4

6 2. FINANCIAL STATEMENTS 2.1. Concise Statement of Financial Position Notes (amounts in th. of ) ASSETS Tangible assets , ,874 80,534 82,305 Intangible assets 3.7 6,238 9,353 4,434 7,201 Live assets 3.9 3,124 3,810 2,902 2,361 Goodwill 9,947 9, Investments in subsidiaries ,530 23,576 Other investments Other long-term receivables Inventories ,970 10,010 7,413 9,399 Clients and other trade receivables ,423 32,549 15,640 34,496 Other receivables ,692 13,616 30,934 29,185 Cash available and cash equivalents 2,530 4,261 2,223 3,664 TOTAL ASSETS 156, , , ,397 EQUITY AND LIABILITIES EQUITY Share Capital 12,382 12,382 12,382 12,382 Share premium 1,753 1,753 1,753 1,753 Reserves 50,554 50,347 41,287 41,287 Profits / (Losses) carried forward (45,149) (26,102) (16,412) (2,204) Total equity 19,540 38,379 39,009 53,217 Shareholders Equity 19,540 38,379 39,009 53,217 Non-controlling interests (2,018) (1,688) - - Total equity 17,522 36,691 39,009 53,217 LIABILITIES Deferred tax liabilities 8,926 10,257 6,281 7,919 Forecasts ,129 1,090 1, Other long-term liabilities Long term interest-bearing liabilities ,773 51,327 47,773 51,327 Long-term liabilities 57,828 62,674 55,080 60,234 Suppliers and associated liabilities ,997 34,353 19,022 31,927 Other liabilities ,551 9,287 10,125 8,317 Short-term loans ,217 45,205 44,676 38,702 Short-term Liabilities 80,765 88,846 73,823 78,946 Total Liabilities 138, , , ,180 TOTAL EQUITY AND LIABILITIES 156, , , ,397 5

7 2.2. Concise Statement of Comprehensive Income for the period Statement of total revenue Notes (amounts in th. of ) Sales (non-live assets) 62,862 62,661 65,059 61,515 Sales (live assets) 7,672 8,440 4,569 4,989 Total sales ,535 71,101 69,628 66,504 Cost of sales 3.15 (37,152) (39,401) (39,129) (35,957) Gross profit (of non-live assets) 25,711 23,260 25,930 25,558 Effect of including live assets at fair value (687) 1, Development costs for live assets (6,168) (3,221) (3,885) (1,928) Gross result from operations 26,528 29,540 27,154 29,393 Administrative expenses 3.15 (4,376) (4,404) (3,677) (3,461) Selling expenses 3.15 (21,435) (22,117) (20,486) (19,396) Other income / expenses (298) (267) (277) (327) Earnings before interest, taxes, depreciation, and amortization and restructuring expenses 4,260 6,590 5,610 9,031 Investment results / Value impairments 3.18 (14,917) - (13,439) - Financial income / expenses (6,093) (6,398) (5,036) (5,403) Profits / (Losses) before tax (20,591) (3,645) (15,761) 806 Taxes 1,161 (873) 1,554 (706) Profits / (Losses) after tax (19,430) (4,518) (14,208) 100 Attributable to: Parent company owners (19,049) (4,074) (14,208) 100 Non-controlling interests (382) (444) - - Profits / (Losses) after tax per Share - basic (in ) 3.8 (0.6462) (0.1382) (0.4819) Other comprehensive income Profits / (Losses) after tax (19,430) (4,518) (14,208) 100 Revaluation of tangible assets Exchange differences on translation of foreign exploitation TOTAL COMPREHENSIVE INCOME (19,171) (4,500) (14,208) 100 Attributable to: Parent company owners (18,841) (4,058) (14,208) 100 Non-controlling interests (330) (441) - - 6

8 2.3. Concise Statement of Comprehensive Income for the period Statement of total revenue (amounts in th. of ) Sales (non-live assets) 24,025 22,049 24,656 21,939 Sales (live assets) 3,003 3,084 1,865 2,016 Total sales 27,028 25,134 26,521 23,954 Cost of sales (15,329) (12,668) (15,602) (12,383) Gross profit (of non-live assets) 8,696 9,381 9,054 9,556 Effect of including live assets at fair value (834) 162 (12) 393 Development costs for live assets (955) (1,271) (577) (813) Gross result from operations 9,910 11,356 10,329 11,152 Administrative expenses (1,377) (971) (1,192) (970) Selling expenses (8,089) (8,096) (7,659) (7,076) Other income / expenses (105) (337) (94) (444) Earnings before interest, taxes, depreciation, and amortization and restructuring expenses 1,689 3,341 2,353 3,634 Investment results / Value impairments Financial income / expenses (1,970) (2,327) (1,454) (1,971) Profits / (Losses) before tax (1,631) (375) (70) 691 Taxes (85) (227) (82) (144) Profits / (Losses) after tax (1,715) (602) (152) 546 Attributable to: Parent company owners (1,595) (458) (152) 1 Non-controlling interests (121) (145) - - Profits / (Losses) after tax per Share - basic (in ) (0.0541) (0.0155) (0.0051) Other comprehensive income Profits / (Losses) after tax (1,715) (602) (152) 546 Revaluation of tangible assets Exchange differences on translation of foreign exploitation TOTAL COMPREHENSIVE INCOME (1,365) (336) (152) 546 Attributable to: Parent company owners (1,314) (245) (152) 546 Non-controlling interests (50) (91) - - 7

9 2.4. Concise Statement of Changes in Equity (amounts in th. of ) Share Capital Share premium Fair value reserves Reserves Results carried forward Sharehold er equity Noncontrolling interests Balance on ,382 1,753 12,044 38,126 (11,288) 53,016 (1,160) 51,857 Changing accounting policy (6,312) (6,312) (6,312) Reformed balances on ,382 1,753 12,044 38,126 (17,600) 46,704 (1,160) 45,545 Total comprehensive income of period (4,074) (4,074) (444) (4,518) Other comprehensive income of period Share capital increase Transfer of profits to reserve Translation differences Income / expenses registered directly to equity Balance on ,382 1,753 12,044 38,142 (21,674) 42,646 (1,601) 41,045 Total equity Balance on ,382 1,753 12,044 38,303 (26,100) 38,381 (1,688) 36,693 Total comprehensive income of period (19,049) (19,049) (382) (19,430) Other comprehensive income of period Share capital increase Transfer of profits to reserve Translation differences Income / expenses registered directly to equity Balance on ,382 1,753 12,044 38,510 (45,149) 19,540 (2,018) 17,522 (amounts in th. of ) Share Capital Share premium Fair value reserves Reserves Results carried forward Total equity Balance on ,382 1,753 5,945 35,342 7,662 63,083 Changing accounting policy (6,312) (6,312) Reformed balances on ,382 1,753 5,945 35,342 1,350 56,771 Total comprehensive income of period Other comprehensive income of period Share capital increase Transfer of profits to reserve Translation differences Income / expenses registered directly to equity - Balance on ,382 1,753 5,945 35,342 1,450 56,870 Balance on ,382 1,753 5,945 35,342 (2,204) 53,217 Total comprehensive income of period (14,208) (14,208) Other comprehensive income of period Share capital increase Transfer of profits to reserve Translation differences Income / expenses registered directly to equity Balance on ,382 1,753 5,945 35,342 (16,412) 39,009 8

10 2.5. Concise statement of Cash Flows - Indirect method Operating activities Profits before tax (going concern) (20,591) (3,645) (15,761) 806 Profits before tax (discontinued activities) Plus / (minus) adjustments for: Depreciations 3,841 3,838 2,896 2,899 impairment of assets 14,917-13,439 - Forecasts Translation differences (43) 5 (43) 5 Results (incomes, expenses, profits and losses) of investments (31) (48) (690) (648) Interest and related expenses 6,124 6,445 5,726 6,052 Plus / (minus) adjustments for changes in working capital or related to operating activities: Decrease (increase) of inventories (767) (576) (1,493) (130) Decrease / (increase) of receivables 7,675 (3,772) 11,610 (5,882) (Decrease) / increase of liabilities (excluding banks) (10,110) 575 (12,936) 2,307 Minus: Debit Interest and related expenses paid (4,156) (6,107) (4,053) (5,777) Income tax paid (170) (367) (84) (340) Operating cash flows from discontinued activities - - Total inflows / (outflows) from operating activities (a) (2,743) (3,554) (820) (612) Investments Acquisition of subsidiaries, associates, joint ventures, and other investments (90) - (140) (550) Cash advances and loans to third parties (480) (2,554) (2,512) (3,329) Proceeds from the sale of subsidiaries, associates, joint ventures and other investments (175) - 96 Purchase of tangible and intangible fixed assets (724) (1,268) (685) (1,139) Proceeds from sales of tangible and intangible fixed assets Interest received - 0 Dividends received - - Proceeds from grants to fixed assets - - Investment cash flows from discontinued operations - - Total inflows / (outflows) from investments (b) (1,388) (3,787) (3,200) (5,017) Financial activities Proceeds from increase in share capital Payments for share capital reduction - - Collections from loans 4,653 9,596 4,127 7,581 Loans from related parties - - Loan repayments (1,791) (2,568) (1,086) (2,204) Repayments from leases (amortization) (462) (449) (462) (449) Dividends paid Financial cash flows from discontinued activities Total inflows / (outflows) from financing activities (c) 2,401 6,579 2,580 4,929 Net increase / (decrease) in cash available and cash equivalents of periods (a) + (b) + (c) (1,730) (762) (1,441) (700) Cash and cash equivalents at beginning of period 4,261 5,405 3,664 4,856 Effect of exchange rates on cash and cash equivalents (1) 2 - Cash and cash equivalents at end of period 2,530 4,644 2,223 4,156 9

11 3. SELECTED NOTES ON THE INTERIM FINANCIAL STATEMENTS 3.1. Basis for preparing the interim financial statements The interim concise financial statements of the period have been prepared in accordance with International Accounting Standards 34 Interim financial Reporting. They do not include all the information required for the annual financial statements in accordance with the International Financial Reporting Standards and they should be reviewed along with the annual financial statements of the and the Company with regards to the period that ended on December 31, Accounting principles New standards, interpretations, revisions and amendments to existing Standards that have come into force and have been adopted by the EU The following amendments to and Interpretations of the IFRS have been issued by the International Accounting Standards Board (IASB) and the application thereof is compulsory from or later. The most important Standards and Interpretations are noted below: IFRS 10 Consolidated financial statements This standard replaces IFS 27 "Consolidated and Separate financial statements and Interpretation 12 Consolidation - Special Purpose Entities. This new standard is used in order to change the definition of the concept of control, which is the definitive factor about whether or not a financial entity should be included in the context of consolidated financial statements of the parent company. The standard provides additional instructions in order to assist to the determination of control, when this is difficult to assess. In addition, the will have to proceed to a series of disclosures with regards to the companies consolidated as subsidiaries and to non-consolidated companies, with which there is ownership of shares. This standard is expected to lead to changes in the structures of conventional groups and the impact on specific instances may be significant. IFRS 11 Joint Arrangements This new standard replaces IAS 31 Interests in Joint Ventures". Based on the new principles, these arrangements are dealt with more on the basis of the rights and obligations that derive from such an arrangement, than on the basis of their legal form. With this new standard the proportionate consolidation for joint-ventures is abolished, along with IAS 31 terminology on jointly-controlled activities or jointly controlled assets. Most joint-ventures shall refer to joint arrangements. IFRS 12 Disclosure of interests in other entities This standard combines the requirements for disclosures for subsidiaries, joint-ventures, associated businesses and unconsolidated financial entities, within the context of an integrated disclosure standard. In addition, it offers more transparency and shall assist investors in evaluating the rate at which the reporting entity has participated in the creation of special structures and risks to which it is exposed. IFRS 13 Fair Value Measurement With this new standard, a unified context is established for all measurements of assets at fair value, when such measurement is required or allowed by other IFRS, since it introduces a clear definition of fair value, along with a framework used for examining fair value measurement, with the purpose of reducing any incompatibilities between IFRS. This new standard describes the methods of measuring fair value that are acceptable and those shall be applied from the application of the standard and afterwards. The new standard does not introduce new requirements concerning the valuation of an asset or an liability at fair value, the assets or liabilities valuated are fair value do not change and it does not concern the method of presentation of changes at fair value. IAS 27 (Amendment) Separate financial statements This standard refers to the subsequent changes resulting from the publication of the new IFRS 10. IAS 27 shall handle exclusively hereinafter the separate financial statements; the requirements for these have remained basically the same. IAS 28 (Amendment) Investments in Associates and Joint-Ventures The purpose of this revised standard is to define the reporting principles that must be applied due to the changes resulting from the publication of IFRS 11. The revised standard continues defining the mechanisms for the accounting monitoring of the method of net position. IAS 19 (Amendment) Employee Benefits. 10

12 The amendment to this standard eliminates the option of using the corridor method with regard to the structuring of the actuarial profits / losses. Specifically, the actuarial profits / losses (or differences ) calculated in a fiscal years shall be recognized completely and directly in the applicable Statement of Comprehensive Income and there will not be possible anymore to recognize them in the Statement of Financial Position (liabilities account) and gradually recognize (or depreciate) them in the Profit and Loss Statements of the next periods. In addition, any changes from the revaluation of the value of assets and liabilities, resulting from fixed benefits plans, shall be presented in the Statement of Comprehensive Income. Furthermore, additional disclosures shall be provided about the fixed benefits programmes with regards to the features thereof and the risks to which the bodies are exposed by participating in such plans. Based on the revised standard, the and the Company reformed the accounts of the comparable periods as per the relevant transitional clauses of IAS 19 and in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The impact of this reformation is analysed in a following paragraph. IAS 1 (Amendment) Presentation of Financial Statements" Amendments to IAS 1 requires that the entities preparing financial statements in accordance with IFRS should gather details inside the list of other comprehensive income that could be reclassified in profits or losses of results, in order to be aligned to US GAAP. IFRS 7 Financial instruments: Disclosures (amended) - Offsetting financial assets and financial liabilities This applies to the annual accounting periods starting on or after January 1, This amendment introduces common requirements for disclosures. These disclosures provide information to users that are useful for assessing the impact or possible impact when offsetting settlements on the statement of financial position of a company. The amendments to IFRS 7 have retroactive application. IFRS 1 First-time adoption (amended) - Government Loans This amendment applies to annual accounting periods starting on or after January 1, The financial entities applying IFRS for the first time that have received government loans with a below-market rate of interest are able to refrain from the retroactive application of IFRS when presenting those loans during the transition period. This is the same exemption that was allocated to the existing issuers of the Financial Statements with IFRS during transition. IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine This applies to the annual accounting periods starting on or after January 1, This interpretation applies only to the stripping expenditures performed during the excavation of the surface during the productive phase of a mine. Improvements to International Accounting Standards (Regulation 301/ ) Apart from the above, new standards, interpretations, revisions and amendments to existing Standards have been defined, which have not become effective yet or have not been approved by the European Union; these are the following: IFRS 9 Financial instruments (this applies to fiscal years starting on or after January 1, 2015) IFRS 9 is the first phase in the work by the International Accounting Standards Board (IASB) for replacing IAS 39 and refers to the classification and measurement of the financial assets and financial liabilities. In the following phases of this project, IASB shall expand IFRS 9 in order to add new receivables for value impairment and hedging accounting. The is currently evaluating the impact of IFRS 9 on its financial statements. IFRS 9 cannot be applied on an earlier date by the, since it has not been adopted by the European Union. Only following its adoption, will the decide whether or not it shall apply IFRS 9 before January 1, IAS 32 (Amendment) Financial instruments: Presentation (this applies to fiscal years starting on or after January 1, 2014). This amendment to the application instructions of IAS 32 provides clarifications about certain requirements concerning the offsetting of financial assets and liabilities at the statement of financial position Estimates The preparation of the financial statements in accordance with the International Financial Reporting Standards (IFRS) requires from management the formulation of opinions, evaluations and assumptions that affect the published financial details on the date the interim financial statements are prepared. The actual results may be different from those anticipated. The assessments and opinions are based on past experience and other factors, including expectations for future events that are considered logical under the conditions at hand, while they are constantly re-evaluated by using all available information. 11

13 The company during the procedure for formulating the figures requiring an estimate at the time the financial statements are prepared, operates under the principle of prudence and based on the actual data provided by the competent agencies and on the estimates, when necessary, by experts, mainly legal consultants. Several of the estimates for the formation of provisions are based on specific assumptions or accounting practices, e.g. the expiration date of inventories, the availability or not of strong securities, the possibility of going concern and of collaboration with clients delaying in repaying their open balances, etc. The basic parameter for the estimates is the examination of the necessity for any revision thereof if there are changes concerning the conditions on which the estimate was based or as a result of new information or of wider experience. Specifically with regard to the evaluations about the possibility of recovery of receivables, the management has considered the objective evidence showing that its receivables have been impaired. These include observable information obtained by management after coordinated actions by specialised committees established by the company within the context of the corporate governance system, with regard to the following damaging events: significant financial difficulty for clients and issuers of receivable cheques, increase of the prospect that indebted persons shall go bankrupt or proceed to other financial restructuring, extended recession of the market specifically and in general. The general financial environment is affecting the entire market and the ability of numerous clients to fulfil their obligations, whether or not the company holds strong securities. As a result, stagnancy and negative trends seem to continue during the second quarter of 2013 and they seem to be aggravated by the negative publication about the nutritional scandal with horse meat, despite the fact that the has no involvement in it. A basic factor for shielding the against the consequences of the crisis is the establishment of an environment of absolute trust with its creditors and with the users of the financial statements. In conclusion, the evaluations by the management during the asset impairment review must also consider this parameter. Based on this data, the Management decided, in the evaluations for the asset impairment for 2013 fiscal period, to apply very strict criteria, following extensive internal research, and after considering the advice of its consultants. In no case whatsoever does the impairment mean that the management shall soften its strenuous efforts for the quickest possible liquidation of its receivables, and especially those covered by securities, or the effort to liquidate inventories considered short-lived but realisable. At the level assets shall be liquidated for which impairments have been performed, the available funds shall be increased by increasing the revenue and adjusting the impairments accordingly. Judgments Recoverability of receivables A judgment by the management is required on the recoverability of receivables, commercial and otherwise, and assessment of their being risky or not. Management considers all internal and external data available in order to identify the possible failure to recover certain amounts. The main criterion for calculating any impairment losses is that for each receivable that has not been liquidated at the scheduled time, either based on the contracts and commercial agreements, or based on the expiration of collectible securities, an equal impairment loss shall be created. Internally generated intangible assets Management monitors the progress of internal research and development through information system. Judgment is required by management to separate the research phase and development phase. The development costs are recognized as assets when the criteria established by the provisions of relevant standards are observed. With regard to intangible assets concerning product development, the management of the company re-examines at the beginning of each fiscal year the useful lives thereof and the possibility of recovering the relevant amounts expended. As a result of the re-evaluation of such figures, and also following decisions for terminating specific plans due to liquidity issues, the useful lives of such assets shall be adjusted accordingly, or an impairment loss shall be formulated. Estimates Certain amounts included in or affecting financial statements and related disclosures are estimated, requiring formation of assumptions about values or conditions which cannot be known with certainty during the preparation of financial statements. 12