CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 94 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 Movements of other short term privions for the periods ended December 31, 2017 is as follows: Provision for litigation Other provisions Total January 1, 2017 1.593.633 117.285 1.710.918 Addition during the year 3.515.068 - 3.515.068 Payments during the year - (117.285) (117.285) Currency translation differences 64.719 - 64.719 December 31, 2017 5.173.420 - 5.173.420 Short-term provision for employee benefits December 31, 2018 December 31, 2017 Provision for employee termination benefits (*) 5.961.921 3.962.186 Provision for unused vacation rights 6.512.563 4.839.679 12.474.484 8.801.865 (*) Consists of employee termination benefits of the outsourced employees of CASI, Celebi Delhi Cargo and Çelebi Cargo, the subsidiaries of the Group. b) Long-term provisions Long-term provision for employee benefits December 31, 2018 December 31, 2017 Provision for employee termination benefits 27.467.482 22.006.598 27.467.482 22.006.598 Provision for employment termination benefits is recorded based on the explanations below. The Group does not have any other defined benefit plans except for the legally mandatory one explained below. The provision has been calculated by estimating the present value of the future probable obligation of the Group arising from the retirement of employees. Under the Turkish Labour Law, the Group is required to pay termination benefits to each employee who has completed one year of service, who achieves the retirement age (58 for women and 60 for men), who has charged 25 years of services (20 years for women) and whose employment is terminated without due cause, is called up for military service or who dies. Since the legislation was changed on May 23, 2002, there are certain transitional provisions relating to length of service prior to retirement. The amount payable as at December 31, 2018 consists of one month’s salary limited to a maximum of 5.434,42 (December 31, 2017: TL 4.732,48) for each year of service. The liability is not funded, as there is no funding requirement. In accordance with local regulations in India, the Group is required to make employee termination benefit payments to each employee in its subsidiaries, joint ventures and associate, who has completed five year of service, who is called up for military service, who achieves the retirement age, who early retires, or who dies. Total employee termination benefit liability is calculated by 15 days per year of service for the current period ended at September 30, 2018 and the liability is limited to INR 350.000 per employee.