ÇHS AR21-ENG-030622

21 Çelebi Ground Handling Inc. 2021 Annual Report When keeping their accounting records and preparing their mandatory financial statements, the Group and the Group companies located in Turkey conform to the principles and conditions set forth by KGK, as well as the Turkish Commercial Code (TCC), tax legislation, and the requirements of the Uniform Chart of Accounts issued by the Republic of Turkey Ministry of Treasury and Finance. The accounting records and financial statements of the subsidiaries, joint venture and associate operating in foreign countries, on the other hand, have been drawn up in accordance with the laws and regulations applicable in the countries where they are active. Consolidated financial statements are based on the statutory records of the Company, its subsidiaries, JV and associate, and have been issued to incorporate the required adjustments and reclassifications for the purpose of fair presentation pursuant to the Turkish Financial Reporting Standards. Assets and liabilities of consolidated foreign partnerships have been translated into Turkish lira using the exchange rate on the date of the consolidated financial condition statement, whereas income and expenses have been translated using the average exchange rate. Exchange differences resulting from the closing and the use of average exchange rate are followed up under the FC translation differences account under shareholders’ equity. The Group’s reporting currency is Turkish lira. Under TAS 21 (“The Effects of Changes in Foreign Exchange Rates”), financial statements prepared in terms of Euro were converted into TL using the method described below: a) Assets and liabilities on the balance sheet were translated into TL using the Euro FC buy and sell rate announced by the Central Bank of the Republic of Türkiye (CBRT) on the balance sheet date. b) Profit or loss and other comprehensive income statement was translated into TL using the average or, whenever possible, daily Euro buy and sell rates announced by the CBRT. c) All arising exchange rate differences were reported as a separate element of equity under the name translation differences. The effect of the said accounting standard upon financial statements has been explained in detail under the footnote 2.1.1 in the financial report. The Companies Incorporated into Consolidation The Company’s consolidated financial statements for the period ending 31 December 2021 include the results of the Company, Celebi Nas, CGHH, Celebi Delhi Cargo, CASI, Çelebi Cargo, DASPL, Celebi Cargo GmbH, KSU and Celebi Tanzania which are jointly referred to as the “Group”. 10. DONATIONS In the year ending 31 December 2021, the Group’s donations and grants to various foundations, associations, chambers, public institutions and organizations amounted to TL 394,266.