LA CALA GOLF CLUB S.L. ANNUAL ACCOUNTS FOR THE YEAR ENDED 31ST DECEMBER 2016

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LA CALA GOLF CLUB S.L. ANNUAL ACCOUNTS FOR THE YEAR ENDED 31ST DECEMBER 2016 1

LA CALA GOLF CLUB, S.L. BALANCES AS AT DECEMBER 31, 2016 AND 2015 (Euros) Year Year Year Year ASSETS Notes 2016 2015 EQUITY AND LIABILITIES Notes 2016 2015 NON-CURRENT ASSETS 8.152.727,61 8.101.834,58 EQUITY Note 10 6.002.196,58 5.558.684,34 Intangible fixed assets Note 5 1.585,49 8.770,27 SHAREHOLDERS FUNDS 5.996.840,24 5.558.684,34 Software 1.585,49 8.770,27 Share capital 6.945.000,00 6.945.000,00 Tamgible fixed assets Note 6 7.855.841,84 7.970.980,27 Called and paid-up capital 6.945.000,00 6.945.000,00 Land and buildings 7.321.216,33 7.542.449,77 Reserves 1.243.127,34 1.243.127,34 Technical installations and other assets 534.625,51 428.530,50 Legal and statutory 242.163,60 242.163,60 Investments in group and associates companies-long-term Note 15.2 120.202,42 120.202,42 Other reserves 1.000.963,74 1.000.963,74 Other financial assets- Deposits and guarantees 120.202,42 120.202,42 Results from prior s (2.629.443,00) (2.770.179,98) Long-term investments Note 8 1.881,62 1.881,62 Losses from prior s (2.629.443,00) (2.770.179,98) Deferred tax assets Note 13.5 173.216,24 Result for the 438.155,90 140.736,98 Grants received 5.356,34 NON-CURRENT LIABILITIES 462.688,10 414.888,51 Long-term provisions Note 11 189.231,43 171.246,92 Long-term commitments with staff 189.231,43 171.246,92 Long-term liabilities Note 12.1 265.014,00 241.176,15 Bank loans 65.277,56 106.013,44 Finance lease payables 182.045,42 114.466,63 Other financial liabilities 17.691,02 20.696,08 Deferred tax liabilities Note 13.7 8.442,67 2.465,44 CURRENT ASSETS 1.444.808,01 562.540,98 CURRENT LIABILITIES 3.132.650,94 2.690.802,71 Inventories Note 9 190.574,42 220.384,96 Short-term liabilities Note 12.2 150.862,92 152.101,43 Merchandise 169.551,53 197.728,50 Bank loans 40.617,05 69.208,40 Raw materials 21.022,89 22.656,46 Finance lease payables 59.086,03 31.599,30 Trade and other receivable 1.057.943,17 236.723,65 Other financial liabilities 51.159,84 51.293,73 Trade receivable- third parties 113.731,55 62.629,54 Payable to group and associated companies Note 15.2 1.746.088,33 1.205.190,73 Trade receivable- group companies Note 15.2 944.211,62 173.494,11 Trade payables 927.839,57 1.026.980,18 Staff 600,00 Creditors-third parties 324.271,07 381.302,61 Short-term investments Note 8 239,04 239,04 Creditors-group companies Note 15.2 20.524,79 106.749,09 Other financial assets 239,04 239,04 Other creditors 176.911,33 155.465,02 Accruals 294,14 6.321,81 Employees 93.750,24 69.414,37 Cash and cash equivalents 195.757,24 98.871,52 Public bodies Note 13.1 118.921,22 109.800,63 Bank balances and cash 195.757,24 98.871,52 Advances from clients 193.460,92 204.248,46 Accruals 307.860,12 306.530,37 TOTAL ASSETS 9.597.535,62 8.664.375,56 TOTAL EQUITY AND LIABILITIES 9.597.535,62 8.664.375,56 The accompanying Notes 1 to 18 are an integral part of the balance sheet as at December 31, 2016 La Cala de Mijas, February 22, 2017 Directors: David Kelly Kenneth Flockhart Lars A. Granberg Per M. Börjesson Joaquín Jiménez

LA CALA GOLF CLUB S.L. ABRIDGED PROFIT & LOSS ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 (Euros) Year Year Notes 2016 2015 Revenue Note 14.1 4.920.466,64 4.623.601,89 Cost of sales Note 14.2 (669.128,35) (639.049,26) Other operating income 84.622,31 83.818,64 Employee costs Note 14.3 (1.834.168,61) (1.784.789,13) Other operating expenses (1.911.536,24) (1.801.212,33) Depreciation Notes 5 & 6 (323.582,11) (304.839,80) Capital grants taken to income Note 10.2 1.242,05 Result on disposal of fixed assets 2.400,00 OPERATING RESULT 270.315,69 177.530,01 Financial income 191,46 244,94 Financial expenses (10.848,76) (16.002,73) Exchange differences FINANCIAL RESULT (10.657,30) (15.757,79) RESULT BEFORE TAX 259.658,39 161.772,22 Corporate income tax Note 13 178.497,51 (21.035,24) RESULT FOR THE YEAR 438.155,90 140.736,98 The accompanying Notes 1 to 18 are an integral part of the profit & loss for the ended December 31, 2016 La Cala de Mijas, February 22, 2017 Directors: David Kelly Kenneth Flockhart Lars A. Granberg Per M. Börjesson Joaquín Jiménez

LA CALA GOLF CLUB S.L. STATEMENT OF CHANGES IN EQUITY FOR YEARS 2016 AND 2015 A) STATEMENT OF RECOGNISED INCOME AND EXPENSE (Euros) Year Year Notes 2016 2015 RESULT FOR THE YEAR (I) 438.155,90 140.736,98 Income recognised directly in equity - Revaluation increase (decrease) of financial instruments - Financial assets available for sale - Grants received 8.383,84 - Tax effect (2.095,96) TOTAL INCOME AND EXPENSE RECOGNISED DIRECTLY IN EQUITY (II) 6.287,88 - Transfers to the profit & loss account - Revaluation increase (decrease) of financial instruments - Financial assets available for sale - Grants received (1.242,05) - Tax effect 310,51 TOTAL TRANSFERS TO THE PROFIT & LOSS ACCOUNT (III) (931,54) - TOTAL RECOGNISED INCOME AND EXPENSE (I+II+III) 443.512,24 140.736,98 B) STATEMENT OF CHANGES IN SHAREHOLDERS FUNDS (Euros) Results Share from prior Result for Grants capital Reserves s the received TOTAL BALANCE AS AT 31ST DECEMBER 2014 6.945.000,00 1.243.127,34 (2.639.432,91) (130.747,07) 5.417.947,36 Adjustments-accounting principles changes 2014 Adjustments-accounting errors 2014 ADJUSTED BALANCE AS AT 1ST JANUARY 2015 6.945.000,00 1.243.127,34 (2.639.432,91) (130.747,07) 5.417.947,36 Total recognised income and expense 140.736,98 140.736,98 Other changes in shareholders funds (130.747,07) 130.747,07 BALANCE AS AT 31ST DECEMBER 2015 6.945.000,00 1.243.127,34 (2.770.179,98) 140.736,98 5.558.684,34 Adjustments-accounting principles changes 2015 Adjustments-accounting errors 2015 ADJUSTED BALANCE AS AT 1ST JANUARY 2016 6.945.000,00 1.243.127,34 (2.770.179,98) 140.736,98 5.558.684,34 Total recognised income and expense 438.155,90 5.356,34 443.512,24 Other changes in shareholders funds 140.736,98 (140.736,98) BALANCE AS AT 31ST DECEMBER 2016 6.945.000,00 1.243.127,34 (2.629.443,00) 438.155,90 5.356,34 6.002.196,58 The accompanying Notes 1 to 18 are an integral part of these Statement of Changes in Equity for 2016 La Cala de Mijas, February 22, 2017 Directors: David Kelly Kenneth Flockhart Lars A. Granberg Per M. Börjesson Joaquín Jiménez

LA CALA GOLF CLUB S.L. CASH FLOW STATEMENTS FOR YEARS 2016 AND 2015 (Euros) Year Year Notes 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES (I) (282.113,39) 88.297,60 Result before tax 259.658,39 161.772,22 Adjustments for: - Depreciation of property and equipment Notes 5 & 6 323.582,11 304.839,80 - Valuation adjustments for deterioration 6.979,42 6.264,52 - Variation of provisions 17.984,51 16.250,00 - Grants recognised in the income statement Note 10 (1.242,05) - Proceeds from disposal of fixed assets (2.400,00) - Financial income (191,46) (244,94) - Financial expenses 10.848,76 16.002,73 Changes in working capital - Inventories 22.831,12 (61.916,50) - Trade and other receivable (821.219,52) (146.955,96) - Other current assets 6.027,67 (1.328,66) - Trade and other payable (99.140,61) (186.323,32) - Otther current liabilities 1.329,75 (4.304,50) - Other non-current assets and liabilities (1.785,45) Other cash flow from operating activities - Interest paid (10.848,76) (16.002,73) - Interest received 191,46 244,94 - Income taxes paid 5.281,27 CASH FLOWS FROM INVESTING ACTIVITIES (II) (198.858,90) (347.143,45) Investments paid - Group and associates companies - Intangible fixed assets Note 5 (1.475,11) - Tangible fixed assets Note 6 (209.846,54) (345.668,34) Proceeds from sale of investments - Group and associates companies - Intangible fixed assets - Tangible fixed assets 10.987,64 CASH FLOWS FROM FINANCING ACTIVITIES (III) 577.858,01 298.172,11 Proceeds and payments for equity instruments 8.383,84 - Grants received Note 10 8.383,84 Proceeds and payments of financial liability instruments - Increase in debts with financial entities 139.846,35 166.185,87 - Increase in debts with group companies 540.897,60 234.121,88 - Other debts 2.838,28 12.842,50 - Decrease in debts with financial entities (114.108,06) (114.978,14) - Decrease in debts with group companies - Decrease in other debts EFFECT OF FOREIGN EXCHANGE RATE CHANGES (IV) - - INCREASE/DECREASE OF CASH AND CASH EQUIVALENTS (I+II+III+IV) 96.885,72 39.326,26 Cash and cash equivalents at the beginning of the 98.871,52 59.545,26 Cash and cash equivalents at the end of the 195.757,24 98.871,52 The accompanying Notes 1 to 18 are an integral part of this cash flow statements for 2016 La Cala de Mijas, February 22, 2017 Directors: David Kelly Kenneth Flockhart Lars A. Granberg Per M. Börjesson Joaquín Jiménez

LA CALA GOLF CLUB S.L. Notes to the Annual Accounts for the ended 31st December 2016 1.- Company s activities La Cala Golf Club S.L. was formed in Spain as a limited company by means of a public deed dated on 12 January 1989, having been converted into a private limited company by agreement of the Shareholders Meeting held on 13th November 2006 which was notarised on 22 December, 2006, and filed into the Mercantile Register of Málaga in February 2007. Its registered offices and activities are located in La Cala de Mijas (Mijas, Málaga). It is principally engaged in the conservation, maintenance and management of the golf center at urbanisation La Cala Golf, situated in Mijas (Málaga, Spain). The services provided by Ranchos Reunidos S.A. (the operator) concerning the golf facility are currently regulated by the operating management agreement signed by both companies, effective 1st January, 1997 and subsequent annexes. In accordance with these agreements, the golf facility is running as part of La Cala Resort. The company s majority shareholder is Ranchos Reunidos S.A., which pertains to a Spanish holding company, Fodeintur S.A., which is not required to prepare consolidated annual accounts due to the small size of the group. The mentioned companies and the Spanish company Sunset Beach Club S.A. are owned by PLL Property & leisure Limited (before called FBD Property & Leisure Limited ), with registered office in Ireland in which consolidated financial statements are included the Company s financial information. 2.- Basis of presentation 2.1 Framework of financial information rules applicable to the Company The annual accounts have been prepared by the Directors in accordance with the framework of financial information applicable to the Company, which is the one established by: a) the Commercial Code and the other commercial rules, b) the accounting plan approved by the Spanish Royal Decree 1514/2007 and the corresponding sector of economic activity adaptations, c) the mandatory rules approved by the Spanish Institute of Accountancy and Audit developing the accounting plan and complementary rules, d) the rest of applicable Spanish accounting rules. 2.2 True reflection The annual accounts for 2016, which have been obtained from the Company s accounting records as of 31st December 2016, are presented with the framework of the applicable financial information rules and in particular with the accounting principles and criteria contained in the mentioned framework, and give a true and fair view of the equity, financial situation, results and cash flows of the Company for the accounting. These annual accounts, which have been adopted by the Directors, are pending approval by the Shareholders Meeting, being the Directors opinion that such accounts will be approved without modifications. The annual accounts for 2015 were approved by the Shareholders Meeting held on 5th April 2016. 2.3 Non-compulsory accounting principles applied Non-compulsory accounting principles have not been applied. In addition, the Directors have prepared these annual accounts taking into consideration all of the compulsory accounting principles and rules having a significant effect in such accounts. There is no accounting principle that being compulsory has not been applied. 2.4 Critical aspects of the valuation and estimation of uncertainty In preparing the annual accounts the Directors makes estimates that affect the reported amounts of assets, liabilities, income, expense and commitments. Basically these estimates relate to: The evaluation of potential losses for the deterioration of certain assets (see Note 4.2) The hypothesis used in the calculation of other commitments with staff and other provisions (see Note 4.12) The useful life of the tangible and intangible fixed assets (Notes 4.1 and 4.2). 2

Although these estimates have been made based on the most accurate information available at the end of 2015, it is possible the future events could provoke the modification (up or down) of such estimates in future s which would be made on a prospective basis. At 31 st December 2016 the Company s current liabilities exceeded its current assets by 1.687.842,93 euros (2.128.261,73 euros at 31 st December 2015), including the net balances due to group companies amounting to 841.186,65 euros (1.138.445,71 euros at 31 st December 2015, see Note 15). In the opinion of the Directors, the Company will generate sufficient cash flow to meet its obligations on a timely basis and, if necessary, will continue obtaining from Group Companies additional financing or refinancing as might be required. Consequently, the annual accounts have been prepared on a going concern basis, which contemplated the realization of assets and the satisfaction of liabilities in the normal course of business. 2.5 Comparison of the information The information included in the Notes corresponding to 2015 is presented for comparative purposes with the corresponding information for 2016 except in the cases that the comparison is not required. 2.6 Grouping of items Certain items of the balance sheet, the profit and loss account and the statements of changes in equity have been grouped to facilitate their understanding although if significant the corresponding disclosures have been included in the Notes. 2.7 Changes in accounting principles During 2016 there have not been significant changes in the accounting principles with respect to those applied in 2015. 2.8 Error adjustments In preparing the annual accounts for 2016 no significant errors requiring the reformulation of the annual accounts for 2015 have been detected. 3.- Application of the result The proposal for the application of the 2016 s result which the Board of Directors will submit to the Shareholder s Meeting is as follows: Year 2016 To set off losses from previous s To reserve of capitalization 424.289,09 13.866,81 Total 438.155,90 4.- Accounting and recording policies The principal accounting policies adopted by the Company in preparing the annual accounts for 2016, in accordance with those established in the general accounting rules, are the following: 4.1 Intangible fixed assets Generally, the intangible assets are initially valued at the acquisition price or production cost. Afterwards, such assets are valued at cost less the accumulated depreciation and, if applicable, any deterioration in value. Such assets are amortized over their estimated useful lives. The Company includes in the caption Software those costs incurred in the acquisition and development of computer programs. The related maintenance costs are recorded in the profit and loss account when incurred. Software is amortized on a straight-line basis over a period of 4 s. 4.2 Tangible fixed assets Tangible assets are initially valued at the acquisition price or production cost and subsequently valued at cost less the accumulated depreciation and, if applicable, any deterioration in value. Repair and maintenance expenses are considered as current expenses when incurred. On the contrary, the costs of expansion, modernization or improvements leading to increased productivity, capacity or efficiency or to a lengthening of the useful life of the assets are capitalized. 3

Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as follows: Depreciation percentage Buildings 2-8% Technical installations 12-15% Machinery 12-15% Other installations and furniture 10-15% Vehicles 16% Other 10-25% Certain part of the costs incurred in the construction of the golf courses and connected facilities (for a total amount of approximately 3.657.500,00 euros) are considered as permanent improvements to the land and, consequently, not subject to depreciation. At each balance sheet date or if considered necessary, the Company reviews the carrying amounts of its tangible assets by means of the impairment test, to determine whether there is any indication that those assets have suffered an impairment loss. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior s. A reversal of an impairment loss is recognised in the profit and loss account. 4.3 Leasing Financial leases Leases are classified as financial leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Assets held under finance leases are recognised as assets of the Company at their acquisition cost and simultaneously the corresponding liability to the lessor is included in the balance sheet as a finance lease obligation for the same amount. This amount will be the lower between the fair value of the asset and the actual value of the minimum rental agreed when signing the contract, including the purchase option when there are no doubts that the Company will exercise such options. Possible contingent rental instalments, cost of services and recoverable tax will not be included. Finance costs are charged to the profit and loss account over the term of the relevant lease applying the effective interest tax rate. Contingent rental instalments, if any, are recognised when incurred. Depreciation is calculated based on the respective useful life of the assets corresponding to these contracts. Operating leases Rentals payable under operating leases are charged to the profit and loss account when incurred. Any collection or payment when contracting an operating lease will be treated as an advance and will be spread on a straight-line basis over the lease term. 4.4 Financial instruments 4.4.1 Financial assets Classification- The financial instruments are classified in the following categories: a) Trade receivable and loans: financial assets with origin in the sale of goods and services or those not having a trade commercial origin that are not equity instruments nor derivative financial instruments, being the corresponding receivable of a fixed nature and not subject to negotiation in an active market. b) Investments held until maturity: these are debts securities with fixed maturity date being the collection determinable, which are negotiated in an active market and with respect to those the Company has the expressed intention and ability to hold to maturity. c) Investments held for trading: these are those available for sale in the short-term, or those pertaining to a portfolio which has been recently traded. 4

Initial valuation - The financial assets are valued at cost, including the attributable direct connected expenses. Subsequent valuation - Trade receivable and loans and Investments held until maturity are valued at amortised costs. Investments held for trading, if any, are measured at fair value, the corresponding variations being recorded in the profit and loss account. Financial assets are written off the balance sheet when the risks and rewards of ownership of the assets are substantially transferred. At least at end the Company reviews the carrying amounts of those financial assets not recorded at fair value. It is considered that those assets have suffered an impairment loss if their recoverable amount is less that the book value. Such impairment loss, if any, is recorded in the profit and loss account. Specifically with respect to the trade receivables, the allowances for estimated irrecoverable or doubtful accounts are calculated based on an individual analysis considering the following criteria: outstanding due over one, difficult recovery or doubtful collection based on the solvency of the debtors. Movement in allowances for Trade receivable during s 2016 and 2015 have been respectively as follows: 4.4.2 Financial liabilities Euros Allowances at end of 2014 30.886,09 Allowances at end of 2015 - Allowances at end of 2015 30.886,09 Allowances recorded in 2016 - Allowances at end of 2016 30.886,09 The financial liabilities are those debts with origin in the purchase of goods and services or those not having a trade commercial origin that cannot be considered as derivative financial instruments. Afterwards such liabilities are recorded at their amortized cost. Financial liabilities are written off the balance sheet when the corresponding obligations have been settled. 4.4.3 Equity instruments An equity instrument represents a participation in the Company s equity after deducting all the liabilities. The equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs. 4.5 Inventories Inventories are stated at the lower of cost and net realisable value. The commercial discounts, rebates and other similar items and the interest included in the nominal value of debts are deducted from the acquisition price. Net realisable value represents the estimated selling price less all estimated costs to completion and costs to be incurred in marketing, selling and distribution. Cost is calculated using the weighted average method. The corresponding loss is recognized in the profit and loss account when the net realizable value is less than cost value. 4.6 Transactions in other currencies The functional currency used by the Company is Euro. Consequently, the transactions in currencies other than Euro are recorded at the rates of exchanges prevailing on the dates of the transactions. Monetary assets and liabilities in foreign currencies have been translated into Euro at closing rates at the balance sheet date. Gains and losses on translation are recognised in the profit and loss account in the period in which they arise. 4.7 Corporate income tax Income tax expense represents the sum of the tax currently payable and deferred tax. 5

The tax currently payable is based on the taxable profit for the. The deductions and other tax incentives in the tax quotas, withholding tax excluded, as well as the tax losses from prior s and effectively applied result in a lesser tax payment. Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the annual accounts and the corresponding tax assessment basis used in the computation of the taxable result, and is accounted for using the balance sheet liability method. Deferred tax is measured at the tax rates that are expected to apply in the periods in which the temporary differences are expected to reverse based on tax rates and laws enacted or substantially enacted at the balance sheet date. Deferred tax liabilities are generally recognised for all taxable temporary differences, except those related to the initial recognition of goodwill or other assets and liabilities not having any effect in both the tax and the accounting result and is not a business combination. Similarly deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. When deferred tax relates to items charged or credited directly to equity, the deferred tax is also dealt with in equity At end the Company reviews the carrying amount of the deferred tax assets recorded to determine whether any adjustment is necessary and recording the corresponding impairment loss if applicable. Also at each balance sheet date the deferred tax assets not recorded are evaluated and recognised in the balance sheet if it is considered that their recovery with future taxable results is probable. 4.8 Income and expenses Income and expenses are recognised on an accrual basis, this means when the actual cash flow of the related goods and services occurs, regardless of when the resulting monetary or financial flow arises. Income is recorded at nominal value, discounts and deductible tax deducted. Sales of goods are recognised when goods are delivered and title has passed. Income from services rendered is recognized by reference to the stage of completion of the services at the balance sheet date, assuming that the result of the transaction can be reliably measured. Interest income and financial expenses are accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable. In any case interest income accrued after the acquisition date is recognised in the profit and loss account. 4.9 Provisions and contingencies In preparing the annual accounts the Directors differentiate between: a) Provisions: credit balances covering present obligations as a result of past events which it is probable that will result in an outflow of economic benefits that can be reasonably estimated but being indeterminate with respect to the exact amount and date of settlement. b) Contingent liabilities: possible obligations as a result of past events whose future occurrence or not is conditioned on future events that are independently of the Company s control. The annual accounts include all the provisions in connection with which there are more probabilities to pay than the contrary. Contingent liabilities are not recorded in the annual accounts but disclosed in the Notes to the accounts unless the occurrence is considered remote. The Directors are not aware of relevant contingent liabilities at -end or at the date of issuing these annual accounts. Provisions are recorded at the actual value of the best estimation of the necessary amount to settle or transfer the obligation, considering the pertinent available information of the corresponding event and their consequences, being recorded the possible adjustment for the estimation update as financial expenses on an accrual basis. 4.10 Indemnities for dismissal According with labour legislation the Company is obliged to pay indemnities to those employees that under certain conditions are dismissed. Therefore these indemnities are recorded as expenses in the when the termination decision is adopted. The annual accounts do not include any provision for this concept as events of this nature are not expected. 6

4.11 Assets of environmental nature Assets of environmental nature are considered as those used in the normal activities of the Company with the purpose of minimizing the adverse environmental impact and those contributing to the protection and improvement of the environment, including the reduction or elimination of future contamination. The activities of the Company do not have a significant environmental impact. 4.12 Commitments and obligations with employees The current collective wage agreement applicable to most of the employees recognises certain incentives upon voluntary leaving, retirement or permanent total disability, at a cost (equivalent to certain periods of remunerated holidays), in such case, proportional to their salary and calculated on the basis of the employee s age and length of service. According to Management s estimation based on actuarial hypothesis, the Company maintains a provision of 189.231,43 and 171.246,92 euros for this concept at 31 st December 2016 and 2015 respectively. The commitments assumed by the Company for the contingencies of death or total disability of working staff are covered with insurance policies. 4.13 Transactions with group and related companies The Company carries out its transactions with group companies on an arm s-length basis, being the prices adequately documented. Therefore there are no specific risks with respect to this matter for which significant liabilities would arise in the future. 4.14 Grants Grants are recognized in accordance with the following criteria: a) Non-refundable capital grants: They are recorded at fair value depending if being monetary or non-monetary grants and are allocated to the profit and loss account on a systematic and rational basis in proportion with the depreciation charges for the corresponding assets or, if applicable, when the assets are disposed of, impaired or derecognized, with the exception of grants received from equity holders or owners which are directly recognized as reserves and not considered as income, independently of the type of grant involved assuming that is non-refundable. b) Repayable grants: They are recorded as liabilities until meeting the criteria for classification as non-refundable. c) Grants awarded to finance specific expenses: they are recognized as income in the reporting period in which the financed expenses are accrued. 5.- Intangible fixed assets The movements in this caption of the balance sheet during 2016 and 2015 were (in euros): Year 2016 Cost At beginning of the Additions Disposals At end of the Software 51.954,32 - - 51.954,32 Total cost 51.954,32 - - 51.954,32 Depreciation At beginning of the Additions Disposals At end of the Software (43.184,05) (7.184,78) - (50.368,83) Total depreciation (43.184,05) (7.184,78) - (50.368,83) 7

Total intangible assets At beginning of the At end of the Cost 51.954,32 51.954,32 Depreciation (43.184,05) (50.368,83) Deterioration - - Total net 8.770,27 1.585,49 At 31 st December 2016 the cost of fully depreciated assets amounted to 41.829,20 euros (21.589,82 euros at 31 st December 2015). Year 2015 Cost At beginning of the Additions Disposals At end of the Software 50.479,21 1.475,11-51.954,32 Total cost 50.479,21 1,475,11-51.954,32 Depreciation At beginning of the Additions Disposals At end of the Software (35.808,05) (7.376,00) - (43.184,05) Total depreciation (35.808,05) (7.376,00) - (43.184,05) Total intangible assets At beginning of the At end of the Cost 50.479,21 51.954,32 Depreciation (35.808,05) (43.184,05) Deterioration - - Total net 14.671,16 8.770,27 At 31 st December 2015 the cost of fully depreciated assets amounted to 21.589,82 euros (21.589,82 euros at 31 st December 2014). 6.- Tangible fixed assets The movements in this caption of the balance sheet during 2016 and 2015 respectively, and the most connected relevant information were (in euros): Year 2016 Cost At beginning of the Additions Transfers Disposals At end of the Land and buildings 11.084.022,75 - - - 11.084.022,75 Technical installations 120.142,53 9.803,15 - - 129.945,68 Machinery 1.300.954,57 162.804,34 - - 1.463.858,91 Other installations and furniture 175.023,05 510,60 - - 175.533,65 Vehicles 125.065,53 11.760,00 - (3.600,00) 133.225,53 Data processing equipment and other 301.802,11 24.968,45 - (8.694,46) 318.076,10 Total cost 13.107.010,54 209.846,54 - (12.294,46) 13.304.562,62 8

Depreciation At beginning of the Additions Transfers Disposals At end of the Land and buildings (3.541.572,98) (221.233,44) - - (3.762.806,42) Technical installations (73.363,90) (7.306,95) - - (80.670,85) Machinery (1.018.343,24) (59.323,31) - - (1.077.666,55) Other installations and furniture (166.654,92) (2.716,62) - - (169.371,54) Vehicles (92.657,21) (13.028,71) - 3.600,00 (102.085,92) Data processing equipment and other (243.438,01) (12.788,30) - 106,82 (256.119,50) Total depreciation (5.136.030,27) (316.397,33) - 3.706,82 (5.448.720,78) Total tangible fixed assets At beginning of the At end of the Cost 13.107.010,54 13.304.562,62 Depreciation (5.136.010,27) (5.448.720,78) Deterioration - - Total net 7.970.980,27 7.855.841,84 Year 2015 Cost At beginning of the Additions Transfers Disposals At end of the Land and buildings 11.026.964,61 90.540,58 - (33.482,44) 11.084.022,75 Technical installations 102.645,41 17.497,12 - - 120.142,53 Machinery 1.117.593,04 183.361,53 - - 1.300.954,57 Other installations and furniture 174.453,05 570,00 - - 175.023,05 Vehicles 95.416,53 29.649,00 - - 125.065,53 Data processing equipment and other 277.765,85 24.451,81 - (415,55) 301.802,11 Total cost 12.794.838,49 346.070,04 - (33.897,99) 13.107.010,54 Depreciation At beginning of the Additions Transfers Disposals At end of the Land and buildings (3.357.101,02) (217.954,40) - 33.482,44 (3.541.572,98) Technical installations (67.936,25) (5.427,65) - - (73.363,90) Machinery (966.793,96) (51.549,28) - - (1.018.343,24) Other installations and furniture (160.595,98) (6.058,94) - - (166.654,92) Vehicles (87.094,06) (5.563,15) - - (92.657,21) Data processing equipment and other (232.541,49) (10.910,38) - 13,85 (243.438,01) Total depreciation (4.872.062,76) (297.463,80) - 33.496,29 (5.136.030,27) 9

Total tangible fixed assets At beginning of the At end of the Cost 12.794.838,49 13.107.010,54 Depreciation (4.872.062,76) (5.136.010,27) Deterioration - - Total net 7.922.775,73 7.970.980,27 At 31st December 2016 and 2015 Land and buildings includes: Euros 31/12/2016 31/12/2015 Golf courses I & II (See Note 4.2) 8.044.104,60 8.044.104,60 Golf academy 1.069.980,86 1.069.980,86 Club house 956.748,80 956.748,80 Buggy paths Machine shed and warehouse 334.334,83 487.374,92 334.334,83 487.374,92 Grass nursery 141.607,44 141.607,44 Other assets 49.871,30 49.871,30 Total 11.084.022,75 11.084.022,75 In the opinion of the Directors, taking into consideration the valuation report issued by independent experts in 2015, considering, among other factors, the business plans and forecasted free cash flows for the next s, the market value of tangible fixed assets is not less than book value. The most relevant hypothesis of the valuation made in the context of al overall valuation of La Cala Resort assets owned by the majority shareholder are the following: a) main valuation methods: forecasted discounted cash flows, b) average discount rate of 7,60%, c) average increase in annual revenue of 7,9% between 2015 and 2018 and an average EBITDA over revenue of 167% in such period, hypothesis which are being complied with in 2015 and 2016. At 31st December 2016 and 2015 the detail of the cost of fully depreciated assets in use was respectively as follows: (in euros): Description Gross accounting value at 31/12/2016 Gross accounting value at 31/12/2015 Golf courses installations 1.310.224,06 1.023.447,94 Technical installations and machinery 964.430,43 867.639,45 Other installations and furniture 153.822,54 152.755,04 Vehicles 80.676,14 84.276,14 Other assets 229.072,84 211.394,95 Total 2.738.226,01 2.339.513,52 The Company has taken out insurance policies to cover the possible risks to which it various tangible fixed assets are subject and the possible claims which might be made against it as a result of the exercise of its activity; it is considered that these policies sufficiently cover the risks to which such assets are subject to. 7.- Leasing 7.1 Finance leases At 31 st December 2016 and 2015 the detail of the assets under finance leases is respectively as follows: (in euros): 10

Assets valued at the current value of the minimum payments 31/12/2016 31/12/2015 Tangible fixed assets 306.032,22 166.185,87 Investment properties - - Intangible fixed assets - - Total 306.032,22 166.185,87 At the end of s 2016 and 2015 the minimum debt instalments (including if appropriate the purchase options) as a consequence of the contracts in force, not considering possible repercussion of common expenses or any possible future increase of the agreed rental amounts are respectively as follows (in euros): Finance leases Minimum instalments Nominal value 2016 2015 Actual Nominal value value Actual value Less than one 62.980,00 62.980,00 34.673,84 31.599,30 One to five s 186.104,00 186.104,00 119.086,05 114.466,63 More than five s - - - - Total 249.084,00 249.084,00 153.762,89 146.065,93 At the end of 2016 the finance lease correspond to three golf machinery contracts signed during 2015 and 2016 for 5 s, with interest rate between 1,95 and 2,65%. The nominal value of the purchase options amounts to 5.301,13 euros. Rental instalments paid in s 2016 and 2015 amounted to 44.780,83 and 26.191,10 euros respectively; the minimum future payments derived from this contract are not included in the corresponding prior detail. 7.2 Operating leases At 31 st December 2016 and 2015 the minimum rental debts as a consequence of the contracts in force, not considering possible repercussion of common expenses or any possible future increase of the agreed rental amounts are respectively as follows (in euros): Nominal Value Operating leases 31/12/2016 31/12/2015 Minimum amounts Less than one 180.556,72 109.043,10 One to five s 175.466,40 30.121,92 More than five s - - Total 356.023,12 139.165,02 The detail of the operating lease rental charged to the profit and loss accounts of s 2016 and 2015 is respectively as follows (in euros): 2016 2015 Minimum rental payments 348.199,13 256.278,30 Contingent instalments paid - - Total net 348.199,13 256.278,30 As lessee the most important contracts in force at the end of s 2016 and 2015 respectively are the following: 1.- Rental of a golf course and other golf installations from the group company Ranchos Reunidos, S.A. The golf course contract period started on 1st January 2005 for an initial period of 5 s which was subsequently extended for another 5 s until 31 st December 2015. In 2016 a new rental contract was signed for the mentioned golf course for a period of 3 s ending on 31st December 2018, the annual rental price amounting to 100.000 euros. In 2016 and 2015 the corresponding total annual rental prices amounted to 100.000,00 and 1,00 euro respectively. 2.- Contracts related to buggy cars for golf players. Rental paid in 2016 and 2015 amounted to 128.362,89 and 140.647,26 euros respectively. 11

8.- Investments (long and short term) The movements in these captions of the balance sheet during 2016 and 2015 respectively, and the most connected relevant information were (in euros): Year 2016 Euros Depósits and guarantees given: Long-term Short-term 31/12/2015 Additions/(Disposals) 31/12/2016 1.881,62 239,04 - - 1.881,62 239,04 Year 2015 Euros Depósits and guarantees given: Long-term Short-term 31/12/2014 Additions/(Disposals) 31/12/2015 1.881,62 239,04 - - 1.881,62 239,04 Information of the nature and level of risks of the financial investments Quality information The Management of the Group to which the Company pertains has established the necessary procedures in order to control the exposure to the variation in interest rates and exchange rates as well as the credit and liquidity risks. Disclosed as follows are the main financial risks that could affect to the Company: a) Credit risks: Generally the Company maintains cash and cash equivalents in banks with adequate rates. b) Liquidity risk: To ensure liquidity and settle the trade and connected liabilities, the Company has the cash and cash equivalents disclosed in the balance sheet, as well as, if necessary, the financial support of other group companies. c) Market risk (includes interest rate, exchange rate and other price rates): Both cash and debts with financial institutions are exposed to the interest rate risk which in the current circumstances would not be considered to have a significant effect in the financial results and cash flow. Foreign currency risk is not relevant. 9.- Inventories Inventories mainly include pro shop merchandise for sale. The movement of the inventory depreciation was as follows: Year 2016 At beginning of the Additions Disposals Other At end of the Inventory depreciation (15.413,65) (6.979,42) (22.393,07) 12

Year 2015 At beginning of the Additions Disposals Other At end of the Inventory depreciation (9.149,13) (6.264,52) (15.413,65) The inventory depreciation figure and updates have been based an individual analysis of the items, considering possible obsolescence and rotation of the merchandise. 10.- Equity and Shareholders Funds At 31 st December 2016 and 2015 the Company s share capital amounted to 6.945.000,00 euros, represented by 2.315 registered shares with a par value of 3.000,00 euros each, all of the same type and fully subscribed and paid up. The composition of the share capital was respectively as follows: 10.1 Legal Reserve % Nominative shareholder 31/12/2016 31/12/2015 Ranchos Reunidos, S.A. 75,64 75,29 Other individual and corporate shareholders 23,06 23,41 Swedish Golf Federation 1,30 1,30 100,00 100,00 In accordance with Spanish Company Law, 10% of profits of private limited liability companies must be set aside to a legal reserve until such reserve is equal to 20% of the share capital. The legal reserve can be used to increase the share capital if exceeding such 20% or to offset losses in the event that there are no other funds available for this purpose. 10.2 Capital grants The information corresponding to the capital grants obtained by the Company, which are related with the acquisition of fixed assets, is as follows: Entity Date of conditions complied with Total amount obtained Taken to income in 2016 Pending to be taken to income at al 31/12/16 (b ) Agencia Andaluza de la Energía (a) 2016 8.383,84 (1.242,05) 5.356,34 8.383,84 (1.242,05) 5.356,34 (a) Grant given by the public entity Agencia Andaluza de la Energía de la Consejería de Economía,Innovación,Ciencia y Empleo de la Junta de Andalucía in relation with the acquisition of installations for the improvement of energy efficiency for a cost of 20.959,59 euros. (b) Net of tax effect. 11.- Provisions and contingencies 11.1 Provisions- Commitments with staff The provisions included in the balance sheet at the end of s 2016 and 2015 respectively correspond to retirement benefit with the staff (see Note 4.12). The current value of the staff retirement benefit obligation has been obtained from the specific analysis carried our by qualified insurance companies in prior s, being the major assumptions: age of retirements 65 and annual average salary rate increase of 1%. 13

12.- Liabilities (long and short-term) 12.1 Long-term liabilities The detail of this caption at the end of s 2016 and 2015 is respectively as follows (in euros): Types Long-term financial instruments Categories Bank loans and Obligations under finance leases Other Total 2016 2015 2016 2015 2016 2015 Debts 247.322,98 220.480,07 17.691,02 20.696,08 265.014,00 241.176,15 Total 247.322,98 220.480,07 17.691,02 20.696,08 265.014,00 241.176,15 The maturity s of the debts includes under the financial Long-term liabilities caption is as follows (in euros): Year 2016 2018 2019 2020 2021 Total Bank loans and Obligations under finance leases 102.151,69 85.231,03 43.180,76 16.759,50 247.322,98 Other 17.691,02 17.691,02 Total 119.842,71 85.231,03 43.180,76 16.759,50 241.176,15 Year 2015 2017 2018 2019 2020 Total Bank loans and Obligations under finance leases 72.975,32 74.947,05 57.668,70 14.889,00 220.480,07 Other 20.696,08 20.696,08 Total 93.671,40 74.947,05 57.668,70 14.889,00 241.176,15 12.2 Short-.term liabilities The detail of this caption at the end of s 2016 and 2015 is respectively as follows (in euros): Type Short-term financial instruments Categories Bank loans and Obligations under Other finance leases Total 2016 2015 2016 2015 2016 2015 Debts 99.703,08 100.807,70 51.159,84 51.293,73 150.862,92 152.101,43 Total 99.703,08 100.807,70 51.159,84 51.293,73 150.862,92 152.101,43 The loans and the financial leases are not affected to any mortgage or other real guarantees and accrue interest at rates between 1,95 and 4,5%. 13.- Public Bodies and Tax situation 13.1 Current balances with Public Bodies The composition of the current balances with Public Bodies is as follows (in euros): 14

Credit balances VAT payable Staff Income tax payable. Social security payable 31/12/2016 31/12/2015 38.681,41 37.534,79 41.073,42 37.322,74 39.166,39 34.943,10 Total 118.921,22 109.800,63 13.2 Reconciliation between net accounting resultt with the taxable Corporate income The reconciliation between book result before tax and the taxable Corporate Income is as follows: Year 2016 Profit & loss account Income and expenses Total recognized directly in equity Income and expenses for the 264.939,66 6.287,88 271.227,54 Increases Decreases Increases Decreases Corporate income tax (5.281,27) (6.287,88) (11.569,15) Permanent differences 17.984,51 17.984,51 Temporary differences Attributable to the : Attributable to prior s: (17.824,12) (17.865,15) (17.824,12) (17.865,15) Set-off of prior s tax losses (186.379,52) (186.379,52) Capitalization reserve deduction (13.866,81) (13.866,81) Taxable income 41.707,30 The capitalization reserve deduction above indicated corresponds to those established in article 25 of Lay 27/2014 which consists of a reduction of the taxable income equivalent to 10% of the net equity increase provided that the following requirements are complied with: a) That the net equity increase is maintained for a period of 5 s since the close of the to which corresponds this reduction unless the Company incur accounting losses. b) That a capitalization reserve is created for the amount of the reduction which will appear in the balance sheet adequately disclosed being un-disposable during the period mentioned in the prior paragraph. Year 2015 Euros Increases Decreases Total Result before tax 161.772,22 Permanent differences 16.250,00 16.250,00 Temporary differences Attributable to the : Attributable to prior s: (8.805,16) (17.865,15) (8.805,30) (17.865,15) Taxable income 151.351,91 13.3 Reconciliation of the accounting result and the Corporate Income tax expense The reconciliation between the accounting result and the Corporate Income tax expense is as follows (in euros): 15

2016 2015 Accounting result before tax 259.658,39 161.772,22 Adjustments to the accounting result: Permanent differences 17.824,51 16.250,00 Temporary differences: Financial lease operations Fixed assets depreciation (17.824,12) (17.875,15) (8.805,16) (17.875,15) Deduction-capitalization reserve (13.866,81) Set-off of prior s tax losses (186.379,52) (85.031,21) Tax base 41.707,30 66.320,70 Tax quota (10.426,82) (18.569,80) Temporary and permanent differences impact (4.456,03) (2.465,44) Deductions- Other 893,26 - Ajustments from prior s 19.270,86 Capitalization of tax credits 173.216,24 Total Corporate income tax (expense) income recognised in the profit and loss account-financial lease contracts 178.497,51 (21.035,24) 13.4 Breakdown of the Corporate Income tax expense The breakdown of the Corporate Income tax expense is as follows (in euros): 2016 2015 Current tax: Continuing operations (9.533,56) (18.569,80) Discontinuing operations Deferred tax: Continuing operations Discontinuing operations 188.031,07 (2.465,44) Total corporate income tax (expense) income 178.497,51 (21.035,24) 13.5 Deferred tax assets recorded The detail of this caption at 31st December 2016 and 2015 respectively is as follows (in euros): 2016 2015 Tax credit losses-25% rate 130.339,89 Temporary differences-fixed assets depreciation- 30% rate 42.876,35 Total deferred tax assets 173.216,24 - The mentioned deferred tax assets have been recorded in the balance sheet because in the opinion of the Directors, according with the best estimate of future results, the Company will probably recover such assets. At the end of s 2016 and 2015 the detail of these recorded assets was respectively as follows: 2016 2015 Tax base Quota (25% rate) Tax losses - 2005 (a) - 2008 205.923,91-51.480,98 - - 2009 - Timing differences (at 30% rate) 315.435,66 142.921,18 78.858,91 42.876,35 Total deferred tax assets not recorded 664.280,75 173.216,24 (a) Tax losses prior of joining the Fodentur consolidated tax group in 2006. Tax base Quota (25% rate) 13.6 Deferred tax assets not recorded Certain deferred tax assets have not been recorded in the balance sheet as no guarantee that the Company will generate enough tax income to off-set such assets. 16

The Corporate Income Tax Law 27/2014 in force since 1 st of January 2015 introduced certain changes affecting, amongst other, to the compensation of the tax losses and to the tax rate, and consequently to the deferred assets and liabilities. The main corresponding changes, considering the modifications introduced in2016, have been: Reduction of the tax rate from 28% for 2015 to 25% for 2016 and following s, Elimination of the time limit for offsetting the tax losses which was 18 s, Limits for offsetting tax losses: 50% of the taxable income for 2016 and following, with a minimum limit of 1 million euros for companies or consolidated group of companies with total turnover between 20 and 60 million euros. At the end of s 2016 and 2015 the detail of these non-recorded assets considering the modifications introduced by the mentioned Law was respectively as follows: 2016 2015 Tax base Quota (25% rate) Tax base Quota (25% rate) Tax losses - 2005-2008 426.772,00 26.107,59 106.693,00 6.526,90-2009 - 2010-2011 - 2012-2014 - Timing differences (at 30% rate) 278.626,04 169.538,61 136.011,59 24.720,72 69.656,51 42.384,65 34.002,90 6.180,18 321.180,14 278.626,04 169.538,61 136.011,59 24.720,72 160.786,33 80.295,04 69.656,51 42.384,65 34.002,90 6.180,18 48.235,90 Total deferred tax assets not recorded 608.896,86 152.224,24 1.543.743,02 393.975,08 13.7 Deferred tax liabilities The detail of this caption at the end of s 2016 and 2015 was respectively as follows (in euros): 2016 2015 FInance lease contracts 6.567,22 2.465,44 Grants obtained 1.875,45 Total deferred tax liabilities 8,442,67 2,465,44 13.8 Years open to tax inspections Under tax legislation in force, tax returns may not be deemed to be final until they have been accepted by the tax authorities or until the period of 4 s established in this connection has elapsed. At the end of 2016 the last four s are opened for tax inspection for Corporate Income Tax (while the open periods for prior tax losses is ten s) and other tax returns. The Directors consider that the tax returns have been adequately prepared and paid and that consequently in the case of discrepancies derived from the different interpretation of the current tax legislation in specific issued, the contingencies which might become liabilities would not significantly impact the annual accounts. The Company files consolidated Corporate Income tax returns with Fodeintur S.A. (the parent company), which includes Ranchos Reunidos S.A., its subsidiaries (with which consolidated V.A.T. returns are also filed), and since 2015 Sunset Beach Club S.A. The corresponding credit balance maintained with Fodeintur S.A. at 31stDecember 2016 amounts to 9.096,75 euros. 14.- Income and expense 14.1 Turnover Turnover for s 2016 and 2015 corresponds to green fees and connected and fees, buggy rental, pro shop sales and related income, all corresponding to the three golf courses and the academy exploited by the Company. 14.2 Supplies The balances of the captions Merchandise cost of sales and Raw materials cost of sales for s 2016 and 2015 are as follows (in euros): 17