CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 112 Çelebi Ground Handling 2018 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish NOTE 32 - FINANCIAL INSTRUMENTS Fair value of financial instruments The fair value is defined as the price received from an asset sale or paid at a payback period that will be earned between a market participants in a transaction at a measurement date. The estimated fair values of financial instruments have been determined by the Group, using available market information and appropriate valuation methodologies. However, judgment is necessarily required to interpret market data to estimate the fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Group could realize in a current market exchange. The following methods and assumptions are used to estimate the fair value of the financial instruments: Financial Assets It is projected that the carrying values of financial assets, which are presented at their cost value including cash and cash equivalents, are equal to their fair value due to their short term nature. The carrying values of trade receivables are estimated to reflect the fair value with related impairment. Financial Liabilities Short-term bank loans and other monetary liabilities are foreseen to approximate their carrying values due to their short-term nature and the significant portion of long-term bank loans and other monetary liabilities having variable interest rates. Group classifies the fair value measurements of financial instruments at fair value on the financial statements into the following categories, using three levels of hierarchy, according to the sources of each class of financial instruments. • Level 1: Valuation techniques using market prices (unadjusted) in the active market for the identified financial instruments. • Level 2: Other valuation techniques, including indirect or direct observable input. The fair value of financial assets that are not traded in an active market is calculated using the observations on the market at the highest level that can be used and the assumptions at the lowest level for the company. • Level 3: Valuation techniques that do not include observable market inputs. The fair value measurement hierarchy table as of December 31, 2018 is as follows: December 31, 2018 Level 1 Level 2 Level 3 Total Assets Financial investments with fair value difference reflected to other comprehensive income (Note 5) - - 166.650 166.650 December 31, 2018 Level 1 Level 2 Level 3 Total Liabilities Other financial liabilities - - - - December 31, 2017 Level 1 Level 2 Level 3 Total Assets Financial investments with fair value difference reflected to other comprehensive income (Note 5) - - 20.527 20.527 December 31, 2017 Level 1 Level 2 Level 3 Total Liabilities Other financial liabilities - - - - NOTE 33 - SUBSEQUENT EVENTS CASI has participated to offer ground handling services at 16 airports in the tender held by the Airport Authority of India (“AAI”) for ground handling services in 36 airports for a period of 10 years.