CELEBİ 2021 ANNUAL REPORT

114 Çelebi Ground Handling Inc. 2022 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2022 ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ AND ITS SUBSIDIARIES (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) Short-term provision for employee benefits 31 December 2022 31 December 2021 Provision for employee termination benefits (*) 7.767.888 35.091.091 Provision for unused vacation rights 38.745.670 18.976.928 46.513.558 54.068.019 (*) 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 31 December 2022 31 December 2021 Provision for employment termination benefits 143.103.765 45.879.138 143.103.765 45.879.138 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 23 May 2002, there are certain transitional provisions relating to length of service prior to retirement. The amount payable as of 31 December 2022 consists of one month’s salary limited to a maximum of TL 15.371,40 (31 December 2021: TL 8.284,51) 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 years of service, who is called up for military service, who achieves the retirement age, who early retires, or who dies. Turkish Financial Reporting Standards require actuarial valuation methods to be developed to estimate the enterprise’s obligation under defined benefit plans. The principal assumption is that the maximum liability for each year of service will increase in line with inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the anticipated effects of future inflation. The Group calculates the reserve for employment termination benefits every six months the maximum amount of TL 19.982,83 which is effective from 1 January 2023 (1 January 2022: TL 10.848,59) has been taken into consideration in the calculations. 2022 2021 As of 1 January 80.970.229 48.913.299 Payments of provisions during the period (17.601.806) (21.580.507) Service cost of employment termination benefits 20.458.846 22.321.987 Interest cost of employment termination benefits 7.825.575 4.224.633 Actuarial gain/(loss) 52.208.937 9.792.230 Foreign currency translation differences 12.799.399 16.342.236 Transfers (5.789.527) 956.351 As of period end 150.871.653 80.970.229