CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 86 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 Movement of financial liabilities for the period ended December 31, 2018 is as follows: 2018 2017 As of January 1 341.352.806 322.576.763 Addition in current year 379.549.694 130.949.500 Principal payments (140.952.126) (134.423.151) Interest payments (13.595.794) (16.746.027) Change in exchange differences 137.368.967 37.427.690 Change in interest accruals 18.090.881 1.568.031 As of December 31 721.814.428 341.352.806 NOTE 8 - TRADE RECEIVABLES AND PAYABLES Short-term trade receivables December 31, 2018 December 31, 2017 Due from third parties 186.052.360 122.450.352 Less: Provision for doubtful receivables (12.329.145) (6.112.405) Trade receivables from third parties (net) 173.723.215 116.337.947 Due from related parties (Note 30) 1.608.646 1.702.170 Total short-term trade receivables 175.331.861 118.040.117 The Group uses the simplified approach in TFRS 9 to calculate the expected credit losses of the financial assets. This method requires the recognition of lifetime expected credit losses for all trade receivables. According to the impairment provision model in accordance with TFRS 9, the Group has accounted for an additional provision of TL 4.431.612 in the consolidated financial statements. The effect of the provision on net profit for the year 2018 is TL 3.754.188. Movements of provision for doubtful receivables is as follows: December 31, 2018 December 31, 2017 Opening balance 6.112.405 2.996.580 Foreign currency translation differences 700.755 240.114 Collections and provision reversals (3.992.569) (3.119) Additional provisions in current period 9.508.554 2.878.830 Closing balance 12.329.145 6.112.405