THE SALES REVENUE COMPRISES

1. The sales revenue comprises: sales of real estate properties (villas and apartments), rentals of shopping mallsand revenue from services and other activities.GVC issues invoices and collects monies in advance in respect of the sales of real estate properties, and some ofthe properties are only handed over in the year following the year in which invoices were issued and moneycollected. The relevant amounts for these sales and their related expenses for the years 2012 and 2013 are:Invoices issued and money collected in 2012 for properties handed over in 2013 1,200,000Related expenses 800,000Invoices issued and money collected in 2013 for properties handed over in 2014 1,000,000Related expenses 700,000GVC does not recognise the money collected in advance in sales revenue or the related expenses in cost of salesfor accounting purposes until the properties are handed over.According to the current corporate income tax (CIT) regulations, for the sale of villas and apartments, where acompany collects money in advance from clients before handing over the properties, it is required to issueinvoices and to declare provisional CIT at 1% of the money collected. The amount invoiced is not consideredtaxable revenue of the company in the year the invoice is issued. GVC has duly declared the provisional CIT onall of the money collected in advance in 2012 and 2013.