ÇELEBİ AR19-270720 (1)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2019 ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish 90 Çelebi Ground Handling Inc. 2019 Annual Report NOTE 8 - TRADE RECEIVABLES AND PAYABLES Short-term trade receivables December 31, 2019 December 31, 2018 Due from third parties 249.583.427 186.052.360 Less: Provision for doubtful receivables (36.457.770) (12.329.145) Trade receivables from third parties (net) 213.125.657 173.723.215 Due from related parties (Note 31) 3.873.386 1.608.646 Total short-term trade receivables 216.999.043 175.331.861 Movements of provision for doubtful receivables is as follows: December 31, 2019 December 31, 2018 Opening balance 12.329.145 6.112.405 Foreign currency translation differences 350.983 700.755 Collections and provision reversals (2.032.857) (3.992.569) Additional provisions in current period 25.810.499 9.508.554 Closing balance 36.457.770 12.329.145 Credit risks exposed by the Group for each financial instrument type as of December 31, 2019 and 2018 are shown below: Trade receivables Other receivables December 31, 2019 Related party Other Related party Other Bank deposits (*) The maximum of credit risk exposed at 3.873.386 213.125.657 108.144.891 113.259.851 266.054.387 the reporting date - Amount of risk covered bu guarentees - 7.039.100 - - - Net carrying value of financial assets which are not due or not impaired 3.873.386 125.158.474 108.144.891 113.259.851 266.054.387 Net carring value of financial assets which are overdue but not impaired - 87.967.180 - - - - Amount of risk covered bu guarentees - 5.878.941 - - - Net carrying value of impaired assets - Overdue (gross carrying value) - 36.457.770 - - - - Impairment amount (-) - (36.457.770) - - - - Amount of risk covered by guarentees - - - - - (*) Relevant balance includes restricted bank balances that are classified under financial investments.