Yünsa 30.06.2005

Transcrição

Yünsa 30.06.2005

ADEL KALEMCİLİK TİCARET VE SANAYİ A.Ş.
CONVENIENCE TRANSLATION INTO ENGLISH OF
FINANCIAL STATEMENTS AT 31 DECEMBER 2013
(ORIGINALLY ISSUED IN TURKISH)
CONVENIENCE TRANSLATION INTO ENGLISH OF FINANCIAL STATEMENTS
ORIGINALLY ISSUED IN TURKISH
FINANCIAL STATEMENTS AT 31 DECEMBER 2013
CONTENTS
PAGE
BALANCE SHEET .......................................................................................................................
1-2
STATEMENT OF INCOME .......................................................................................................
3
STATEMENT OF COMPREHENSIVE INCOME...................................................................
4
STATEMENT OF CHANGES IN EQUITY ..............................................................................
5
STATEMENT OF CASH FLOWS ..............................................................................................
6
NOTES TO THE FINANCIAL STATEMENTS ....................................................................... 7-52
NOTE 1
NOTE 2
NOTE 3
NOTE 4
NOTE 5
NOTE 6
NOTE 7
NOTE 8
NOTE 9
NOTE 10
NOTE 11
NOTE 12
NOTE 13
NOTE 14
NOTE 15
NOTE 16
NOTE 17
NOTE 18
NOTE 19
NOTE 20
NOTE 21
NOTE 22
NOTE 23
NOTE 24
NOTE 25
NOTE 26
ORGANIZATION AND NATURE OF OPERATIONS ...........................................................................
BASIS OF PRESENTATION OF FINANCIAL STATEMENTS .............................................................
SEGMENT REPORTING ..........................................................................................................................
CASH AND CASH EQUIVALENTS .......................................................................................................
FINANCIAL ASSETS ...............................................................................................................................
INVESTMENTS IN JOINT VENTURES .................................................................................................
FINANCIAL LIABILITIES.......................................................................................................................
TRADE RECEIVABLES AND PAYABLES ............................................................................................
OTHER RECEIVABLES AND PAYABLES ............................................................................................
INVENTORIES .........................................................................................................................................
PROPERTY, PLANT AND EQUIPMENT ...............................................................................................
INTANGIBLE ASSETS ............................................................................................................................
PROVISIONS, CONTINGENT ASSETS AND LIABILITIES ................................................................
EMPLOYEE BENEFITS ...........................................................................................................................
OTHER ASSETS AND LIABILITIES ......................................................................................................
EQUITY .....................................................................................................................................................
REVENUE AND COST OF SALES .........................................................................................................
EXPENSE BY NATURE ...........................................................................................................................
OTHER OPERATING INCOME AND EXPENSES ................................................................................
FINANCIAL INCOME AND EXPENSES................................................................................................
TAXATION ON INCOME ........................................................................................................................
EARNINGS PER SHARE .........................................................................................................................
TRANSACTIONS AND BALANCES WITH RELATED PARTIES .......................................................
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT ..........................................
FINANCIAL INSTRUMENTS..................................................................................................................
SUBSEQUENT EVENTS ..........................................................................................................................
7
8-23
23
24
24
25
25-26
26
27
27
28-29
30
30-31
32-33
33-34
34-36
36
37
38
39
39-40
40
41-43
44-51
52
52
BALANCE SHEET AT 31 DECEMBER 2013
(Amounts expressed in Turkish Lira (“TRY”) unless otherwise indicated.)
Notes
31 December 2013
Restated
31 December 2012
4
38.699.751
22.765.089
492.915
22.272.174
797.601
76.190.352
359.079
5.206.420
18.517.867
1.277.594
24.352.510
269.488
24.083.022
574.110
71.371.043
297.439
3.275.061
6.916.503
162.536.159
108.064.260
233.985
747.661
30.524.973
2.232.857
1.888.925
70.194
8.835.111
233.985
337.354
22.152.662
404.378
498.624
72.900
-
44.533.706
23.699.903
207.069.865
131.764.163
Assets
Current assets:
Cash and cash equivalents
Trade receivables
- Due from related parties
- Due from other parties
Other receivables
Inventories
Prepaid expenses
Current income tax asset
Other current assets
23
8
9
10
15
15
15
Total current assets
Non-current assets:
Financial assets
Investments in associates
Property, plant and equipment
Intangible assets
Deferred tax assets
Prepaid expenses
Other non-current assets
5
6
11
12
21
15
15
Total non-current assets
Total assets
These financial statements as at and for 31 December 2013 have been approved for issue by the Board
of Directors on 28 February 2014 and signed on its behalf by Chairman of the Audit Committee Kamil
Ömer Bozer, Audit Committee Members Hamit Sedat Eratalar, General Manager Evrim Hizaler and
Finance and Accounting Director Ceyhan Baştürk.
The accompanying notes form an integral part of these financial statements..
1
BALANCE SHEET AT 31 DECEMBER 2013
Notes
31 December 2013
Restated
31 December 2012
7
25.555.716
9.601.500
1.329.523
8.271.977
329.842
2.340.224
71.695
348.020
1.170.638
7.113.553
9.818.241
1.262.146
8.556.095
364.419
1.905.730
71.695
233.646
2.426.092
39.417.635
21.933.376
18.815.801
6.041.627
5.324.221
24.857.428
5.324.221
7.875.000
13.374.985
7.875.000
13.374.985
Liabilities
Current liabilities:
Financial liabilities
Trade payables
- Due to related parties
- Due to other parties
Payables for employee benefits
Other payables
Provisions
Provisions for employee benefits
Other current liabilities
23
8
9
9
13
14
15
Total current liabilities
Non-current Liabilities :
Provision for employee benefits
7
14
Total non-current liabilities
Equity:
Share capital
Adjustment to share capital
Other comprehensive income/expense to be
reclassified to profit or loss
- Currency translation differences
Other comprehensive income/expense not to be
reclassified to profit or loss
- Remeasurements of
employment termination benefit obligations
Restricted reserves
Retained earnings
Net income for the period
16
16
332.040
16
16
(395.595)
8.606.613
63.339.658
49.662.101
(74.230)
(664.210)
7.441.113
52.139.450
24.414.458
Total equity
142.794.802
104.506.566
Total liabilities and shareholders’ equity
207.069.865
131.764.163
The accompanying notes form an integral part of these financial statements.
2
STATEMENT OF INCOME
FOR THE YEAR ENDED 31 DECEMBER 2013
Profit or loss
Notes
Revenue
Cost of sales (-)
17
17
Gross profit
Marketing, selling and distribution (-)
General and administrative expenses (-)
Other operating income
Other operating expenses (-)
18
18
19
19
Operating profit
Income from investing activities
Expenses from investing activities (-)
Loss from investments
accounted with equity method
159.613.655
(82.078.281)
89.996.516
77.535.374
(30.321.101)
(18.422.568)
778.548
(2.019.985)
(24.914.379)
(13.067.478)
1.260.888
(2.301.382)
40.011.410
38.513.023
19
(1.402.363)
(1.619.287)
60.380.628
36.850.686
1.140.462
(5.540.038)
584.491
(6.596.689)
55.981.052
30.838.488
(6.318.951)
(7.709.252)
1.390.301
(6.424.030)
(6.576.236)
152.206
49.662.101
24.414.458
6,3063
3,1002
Profit before tax from continued operations
21
21
Earnings per share
186.099.908
(96.103.392)
21.771.581
-
20
20
Tax income/expense from
continued operations
- Income tax expense for the period (-)
- Deferred tax income
22
3
Restated
2012
19
19
Operating profit before
financial income and expense
Financial income
Financial expenses (-)
2013
(43.050)
STATEMENTS OF COMPREHENSIVE INCOME
Notes
2013
Restated
2012
49.662.101
24.414.458
Other comprehensive income
Items not to be reclassified to profit or loss
- Remeasurements of provision for
employment termination benefit, net of tax
Items to be reclassified to profit or loss
- Currency translation differences
Other comprehensive income, after tax
Total comprehensive income for the period
14
268.615
(389.469)
6
406.270
(11.245)
-
-
50.336.986
24.013.744
4
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2013
Other
comprehensive
income
and
expense
to be
reclassified
to profit or loss
Share
capital
Adjustment
to share
capital
Currency
translation
differences
7.875.000
13.374.985
(74.230)
-
-
-
7.875.000
13.374.985
-
31 December 2013
1 January 2012 (previously reported)
1 January 2013 (previously reported)
Effect of change in
accounting policy (Note 2.6)
1 January 2013 (restated)
Transfers
Dividend payments
Total comprehensive income
Effect of change in
accounting policy (Note 2.6)
1 January 2012 (restated)
Transfers
Dividend payments
Total comprehensive income
31 December 2012
Other
comprehensive
income
and
expense
not to be
reclassified
to profit or loss
Gain/loss on
revaluation
and Restricted
remeasurement reserves
Retained
Earnings
Net profit
for the period
Total
equity
7.441.113
51.864.709
24.024.989
104.506.566
(664.210)
-
274.741
389.469
-
(74.230)
(664.210)
7.441.113
52.139.450
24.414.458
104.506.566
-
406.270
268.615
1.165.500
-
23.248.958
(12.048.750)
-
(24.414.458)
49.662.101
(12.048.750)
50.336.986
7.875.000
13.374.985
332.040
(395.595)
8.606.613
63.339.658
49.662.101
142.794.802
7.875.000
13.374.985
(62.985)
6.378.203
37.985.711
25.964.758
91.515.672
-
-
-
274.741
-
7.875.000
13.374.985
7.875.000
-
(274.741)
-
(62.985)
(274.741)
6.378.203
37.985.711
26.239.499
91.515.672
-
(11.245)
(389.469)
1.062.910
-
25.176.589
(11.022.850)
-
(26.239.499)
24.414.458
(11.022.850)
24.013.744
13.374.985
(74.230)
(664.210)
7.441.113
52.139.450
24.414.458
104.506.566
5
STATEMENT OF CASH FLOWS
Notes
2013
Restated
2012
55.981.052
30.449.019
Cash flows from operating activities
Net profit before taxes
Adjustments:
Foreign exchange (income)/losses
Depreciation and amortization
Loss from sales of property,
plant and equipment and intangible assets
Provision for employment termination benefits
Unused vacation accruals
Bonus accruals
Impaiments
Provision for impairment of inventories
Loss from investments
Interest income
Interest expenses
Unearned finance income
11,12
19
14
14
14
10
19
20
Net cash generated from operating activities before
changes in operating assets and liabilities
(1.132.808)
3.615.455
(167.734)
2.404.650
(21.771.581)
689.326
274.978
348.020
17.623
(327.704)
43.049
1.733.665
166.120
233.646
173.483
63.426
1.402.363
(278.314)
3.388.420
(34.389)
1.619.288
(546.772)
5.616.604
49.117
42.172.441
41.837.561
1.380.696
183.176
(1.255.454)
(4.491.605)
(20.495.409)
(246.898)
(233.646)
(12.915.672)
(7.633.226)
5.301.814
548.653
(16.767.122)
1.838.874
(664.075)
(239.800)
(9.851.297)
4.097.629
14.371.382
Changes in operating assets and liabilities
Change in trade and other receivables
Change in trade and other payables
Change in other liabilities
Change in inventories
Change in other assets
Employment termination benefits paid
Bonus paid
Taxes paid
14
14
21
Net cash used in operating activities
Purchase of property, plant and equipment
and intangible assets
Proceeds from sale of property, plant and equipment
Capital increase in investments
Interests received
11,12
(19.166.193)
27.121.529
(8.793.814)
100.879
6
(1.406.400)
(1.113.400)
278.314
546.772
Net cash used in investing activities
Dividends paid
Proceeds from borrowings
Payments of borrowings
Interest paid
16
Net cash generated from financing activities
Currency translation differences on
cash and cash transactions
6
Net increase/(decrease) in cash and cash equivalents
6.827.250
(9.259.563)
(12.048.750)
236.510.734
(194.170.016)
(3.388.420)
(11.022.850)
192.921.015
(189.972.383)
(5.589.314)
26.903.548
13.663.533
(406.270)
(11.245)
37.422.157
(8.562.959)
Cash and cash equivalents at beginning of the period
4
1.277.594
9.840.553
Cash and cash equivalents at end of the period
4
38.699.751
1.277.594
6
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2013
NOTE 1 - ORGANIZATION AND NATURE OF OPERATIONS
Adel Kalemcilik Ticaret ve Sanayi A.Ş.’s (the “Company”) principal business activity is production of
cedar wood pencils, crayons and other stationery equipment, selling and exporting goods that are
produced in facilities, importing, purchasing and selling of any kind of primary materials, semifinished goods and finished goods that are also in respect to the principle business activity.
The Company was established in 17 July 1967 and at the same date registered with Istanbul Chamber
of Industry and Istanbul Chamber of Commerce with the register number of 96078.
The address of the Company’s head office is as follow:
Esentepe Mah. Anadolu Cad. No:7
34870 Kartal, İstanbul
The Company is registered with the Capital Markets Board (“CMB”) and its shares have been quoted
on the Istanbul Stock Exchange (“ISE”) since 1996. As of 31 December 2013, the publicly quoted
shares are 22.60% of the total shares. the principal shareholders and their respective shareholdings in
the Company are as follows:
Shareholders
(%)
Anadolu Endüstri Holding A.Ş.
Faber-Castell Aktiengesellschaft
Publicly quoted
Other
56,89
15,40
22,60
5,11
100,00
The Company’s interest in jointly controlled entities is accounted for using the equity method:
Company name
Principal activity
Country
(%)
LLC Faber-Castell Anadolu
Trade of stationery
Russia
50,00
Faber Castell Anadolu LLC is established and registered in Moscow, Russia as a jointly controlled
entity at September 13, 2011. The principal activities are; trading and distributing of stationery, art,
painting and hobby equipments and toys.
7
NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
2.1
Basis of presentation
2.1.1 Financial reporting standards
The enclosed consolidated financial statements have been prepared in line with Capital Markets Board
("CMB"), Communiqué Serial: II, No. 14.1 on "Principles on Financial Reporting in Capital Market",
promulgated in Official Gazette No. 28676 dated 13 June 2013. Pursuant to Article 5 of the
Communiqué, Turkish Accounting Standards / Turkish Financial Reporting Standards ("TAS/TFRS")
enforced by Public Oversight Accounting and Auditing Standards Authority ("KGK"), and their
relevant appendices and interpretations ("TAS/TFRS") have been taken as basic
The Group has prepared its consolidated financial statements for the interim period ending on 31
December 2013 within the framework of CMB's Communiqué Serial: XII, No. 14.1 and
announcements introducing explanations to this communiqué and in line with TAS 34 "Interim
Financial Reporting" standard. Interim consolidated financial statements and notes have been
presented in accordance with the formats recommended to be applied by CMB and by including the
obligatory information.
The Company (and its Affiliates registered in Turkey) takes the Turkish Commercial Code ("TCC"),
tax legislation and Uniform Chart of Accounts introduced by Turkish Ministry of Finance as basic for
book keeping and preparation of the statutory financial statements. Interim consolidated financial
statements have been prepared in Turkish Lira based on the historical costs, as well as the financial
assets and liabilities presented with their fair values. Interim consolidated financial statements have
been arranged by applying the required adjustments and classifications to the statutory records
prepared on historical cost basis in order to provide accurate presentation in line with TAS/TFRS.
Preparation of Financial Statements in Hyperinflationary Periods
In accordance with the CMB’s decision No: 11/367 issued on 17 March 2005, companies operating in
Turkey which prepare their financial statements in accordance with the CMB Accounting Standards
(including the application of IFRS) are not subject to inflation accounting effective from 1 January
2005. Therefore, as of 1 January 2005, IAS 29 “Financial Reporting in Hyperinflationary Economies”
is not applied in the accompanying consolidated financial statements.
2.2
Summary of significant accounting policies
The significant accounting policies followed in the preparation of these financial statements are
summarised below:
2.2.1 Revenue recognition
The Company’s revenue consists of domestic and export sales of cedar wood pencils, crayons and
copy pens, pens, mechanical pencil and their mins, markers, pastels, watercolors, erasers, finger
paints, modelling clay, body-color painting and other stationery equipments by producing and
importing them.
Revenues are recognized on an accrual basis at the fair values incurred or to be incurred, when the
amount of revenue can be reliably measured and it is probable that the future economic benefits
associated with the transaction will flow to the entity. Net sales represent the fair value of goods
shipped less sales discounts and returns.
8
NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)
2.2
2.2.1
Summary of significant accounting policies (Continued)
Revenue recognition (Continued)
Revenue from the sale of goods is recognized when all the following conditions are gratified:





The significant risks and the ownership of the goods are transferred to the buyer,
The Company refrains the managerial control over the goods and the effective control over the
goods sold,
The revenue can be measured reasonably,
It is probable that the economic benefits related to transaction will flow to the entity,
The costs incurred or will be incurred in conjunction with the transaction can be measured
reliably.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the
effective interest rate applicable, which is the rate that discounts the estimated future cash receipts
through the expected life of the financial asset to that asset’s net carrying amount.
Dividend income obtained from stock investments are registered when shareholders originate to
receive dividend.
Rent income earned from real estate is booked according to straight-line method in the course of rental
contract.
When there is a significant financing element in sales, fair value is calculated with a hidden interest
rate that will appear in financing element of future cash flows. The difference is reflected according to
accrual basis to financial statements.
2.2.2 Inventories
The inventories of the Company mainly composed of raw materials, auxiliary materials, packaging
materials, semi-finished goods and pencil and other stationery equipment as finished goods.
Inventories are valued at the lower of cost or net realizable value. Cost of inventories comprises the
purchase cost and the cost of bringing inventories into their present location and condition. Bringing
inventories into their present location and condition also includes costs that are directly associated
with production such as direct labour expenses. The allocation of fixed production overheads to the
costs of conversion is based on the normal capacity of the production facilities. Idle time expenses
arising from the ceases in production other than planned in the factory’s annual production plan are
not associated with inventories and are recognised as cost of finished goods.
The cost of inventories is determined on the monthly weighted average basis. Net realizable value is
the estimated selling price in the ordinary course of business, less the costs of completion and selling
expenses.
9
2.2
2.2.3 Loans and borrowing costs
Borrowings are recognised initially at the proceeds received, net of transaction costs incurred.(Note:7)
In subsequent periods, borrowings are stated at amortised cost using the effective yield method; any
difference between proceeds (net of transaction costs) and the redemption value is recognised in the
statement of income over the period of the borrowings. When it comes to the assets which take long
time to get ready to usage and sales, borrowing costs related to production or construction are
integrated to the cost of the asset.
2.2.4 Property, plant, equipment
Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is
provided on restated amounts of property, plant and equipment using the straight-line method based on
the estimated useful lives of the assets.
Depreciation is calculated according to straight-line method to carry costs of every fixed asset with
following ratios (%) while useful lives are taken as a basis:
Land improvement
Buildings
Machinery and equipment
Vehicles
Fixtures
3,33-50
2-5
8,33-10
20
20
Depreciation is not provided for land due to their indefinite useful life.
Gains or losses on disposals of property, plant and equipment are included in the related income or
expense accounts, as appropriate.
Repair and maintenance expenses are charged to the statement of income as they are incurred. Repair
and maintenance expenditures are capitalized if they result in an enlargement or substantial
improvement of the respective asset.
2.2.5 Intangible assets
Intangible assets are presented with their costs after accumulated amortization and depletion and
permanent impairment are reduced from the costs. Amortization for these assets is calculated
considering their expected useful lives by using straight-line method. Expected useful lives and
straight-line methods are revised to determine potential effects of changes of estimations every year
and if there is any that change is prudentially booked.
Software purchased is capitalized on the spot of purchase considering the costs that are occurred
between the purchase date and the date that software becomes ready for use. Amortization of the costs
is booked as their useful lives.
10
2.2
2.2.6 Impairment of assets
Amortization is not calculated for assets that have eternal lives such as goodwill. Every year
impairment test is applied on these assets. When incidents occur that makes book value is impossible
to gain back for assets that are depreciable, impairment test is applied on them. An impairment loss is
recognised for the amount by which the carrying amount of the asset or a cash generating unit related
to the asset exceeds its recoverable amount, which is the higher of an asset’s net selling price and
value in use. Impairment losses are recognised in the statement of income.
Impairment losses on assets can be reversed, to the extent of previously recorded impairment losses, in
cases where increases in the recoverable value of the asset can be associated with events that occur
subsequent to the period when the impairment loss was recorded.
2.2.7 Research and development expenses
Research and development expenses are booked when they occur. Costs incurred on development
projects relating to the design and testing of new or improved products are recognized as intangible
assets when it is probable that the project will be a success considering its commercial and
technological feasibility, and only if the cost can be measured reliably. Other development
expenditures are recognized as an expense as incurred. Development expenditures previously
recognized as an expense are not recognized as an asset in a subsequent period.
2.2.8 Borrowing costs
Borrowings are recognized initially at the proceeds received, net of transaction costs incurred.
Borrowings are subsequently stated at amortized cost using the effective yield method. Any difference
between proceeds, net of transaction costs, and the redemption value is recognized in the income
statement as financial expense over the period of the borrowings. Borrowing costs that are directly
attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of
the cost of that asset in the period in which the asset is prepared for its intended use or sale. All other
borrowing costs are charged to the income statement when they are incurred.
2.2.9 Financial Instruments
(i)
Financial assets
Financial investments, except financial assets classified at fair value through profit or loss and
financial assets initially recognized at fair value, are recognized at fair value net of directly attributable
transaction costs. Investments are recognized and derecognized on a trade date where the purchase or
sale of an investment is under a contract whose terms require delivery of the investment within the
timeframe established by the market concerned.
Financial assets are classified into the following specified categories: financial assets classified as ‘at
fair value through profit or loss’ (“FVTPL”), ‘held-to-maturity investments’, ‘available-for-sale’
(“AFS”) financial assets and ‘loans and receivables’. The classification depends on the nature and
purpose of the financial assets and is determined at the time of initial recognition.
11
2.2
2.2.9 Financial Instruments (Continued)
Effective interest method
The effective interest method is used for calculating the amortized cost of a financial asset and for
allocating interest income over the relevant period. The effective interest rate discounts the estimated
future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter
period.
Income from financial assets that are classified as held to maturity, available for sale and loans and
receivables is recognized on an effective interest basis.
a)
Financial assets at fair value through profit or loss
Financial assets are classified as financial assets at fair value through profit or loss where the
Company acquires the financial asset principally for the purpose of selling in the near future or the
financial asset is a part of an identified portfolio of financial instruments that the Company manages
together and has a recent actual pattern of short term profit taking as well as derivatives that are not
designated and effective hedging instruments. Financial assets at fair value through profit or loss are
carried at fair value, with any resulting gain or loss recognized in profit or loss incorporating any
dividend or interest earned on the financial asset. Assets in this category are classified as current
assets.
b)
Held-to-maturity investments
Bills of exchange and debentures with fixed or determinable payments and fixed maturity dates that
the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity
investments. Held-to-maturity investments are recorded at amortized cost using the effective interest
method less impairment, with revenue recognized on an effective yield basis.
c)
Available-for-sale financial assets
Investments other than held-to-maturity financial assets, held for fair value through profit or loss and
loans and receivables are classified as available-for-sale, and are measured at subsequent reporting
dates at fair value except for available-for-sale investments that do not have quoted prices in active an
market and whose fair values can not be reliably measured are carried at cost. Gains and losses on
available for sale financial assets at amortized cost are recognized in the income statement. Gains and
losses arising from changes in fair value are recognized directly in equity, until the security is disposed
of or is determined to be impaired, at which time the cumulative gain or loss previously recognized in
equity is included in the profit or loss for the period. Impairment losses recognized in profit or loss for
equity investments classified as available-for-sale are not subsequently reversed through profit or loss.
Impairment losses recognized in profit or loss for debt instruments classified as available-for-sale are
subsequently reversed if an increase in the fair value of the instrument can be objectively related to an
event occurring after the recognition of the impairment loss.
In case of the right to receive dividend of the Company, dividends related to available-for-sale equity
instruments are recognized in profit or loss.
12
2.2
Fair value of available for sale monetary assets denominated in foreign currency is determined in that
foreign currency and converted using the spot rate at the reporting date. Change in fair value
attributable to conversion differences that result from a change in amortized cost of the asset is
recognized in profit or loss, and other changes are recognized in equity.
d)
Loans and receivables
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not
quoted in an active market are classified as “loans and receivables”. Loans and receivables are
measured at amortized cost using the effective interest method less any impairment.
Impairment of financial assets
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at each balance
sheet date. Financial assets are impaired where there is objective evidence that, as a result of one or
more events that occurred after the initial recognition of the financial asset, the estimated future cash
flows of the investment have been impacted. For financial assets carried at amortized cost, the amount
of the impairment is the difference between the asset’s carrying amount and the present value of
estimated future cash flows, discounted at the original effective interest rate.
Carrying amount of the financial asset is reduced by the impairment loss directly for all financial
assets with the exception of trade receivables where the carrying amount is reduced through the use of
an allowance account. When a trade receivable is uncollectible, it is written off against the allowance
account. Subsequent recoveries of amounts previously written off are credited against the allowance
account. Changes in the carrying amount of the allowance account are recognized in profit or loss.
With the exception of AFS equity instruments, in a subsequent period, if the amount of impairment
loss decreases and the decrease can be related objectively to an event occurring after the impairment
was recognized, the previously recognized impairment loss is reversed through profit or loss to the
extent that the carrying amount of the investment at the date the impairment is reversed does not
exceed what the amortized cost would have been had the impairment not been recognized.
In respect of AFS equity securities, any increase in fair value subsequent to an impairment loss is
recognized directly in equity.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly
liquid investments which their maturities are three months or less from date of acquisition and that are
readily convertible to a known amount of cash and are subject to an insignificant risk of changes in
value. The carrying amount of these assets approximates their fair value.
13
2.2
(ii)
Financial liabilities and equity instruments issued by the Company are classified according to the
substance of the contractual arrangements entered into and the definitions of a financial liability and
an equity instrument. An equity instrument is any contract that evidences a residual interest in the
assets of the Company after deducting all of its liabilities. The accounting policies adopted for specific
financial liabilities and equity instruments are set out below.
Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities.
a)
Financial liabilities at fair value through profit or loss
Financial liabilities are classified as at FVTPL where the financial liability is either held for trading or
it is designated as at FVTPL. Financial liabilities at FVTPL are carried at fair value, with any resultant
gain or loss recognized in profit or loss. Net gain or loss recognized in profit or loss incorporates any
interest paid on the financial liability
.
b)
Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction
costs.
Other financial liabilities are subsequently measured at amortized cost using the effective interest
method plus the interest expense recognized on an effective yield basis.
The effective interest method is calculating the amortized cost of a financial liability and of allocating
interest expense over the relevant period. The effective interest rate discounts the estimated future cash
payments through the expected life of the financial liability or where appropriate, a shorter period.
(iii)
Derivative financial instruments
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently re-measured at their fair value. The Company enters into currency futures contracts in
order to minimize foreign exchange basis borrowings. There is no open derivative contract entered
into as of 31 December 2013.
2.2.10 Foreign currency transactions and balances
Transactions in foreign currencies during the year have been translated at the exchange rates
prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign
currencies have been translated into TRY at the exchange rates prevailing at the balance sheet dates.
Foreign currency exchange gains or losses arising from the settlement of such transactions and from
the translation of monetary assets and liabilities are recognized in the statement of income.
14
2.2
2.2.11 Earnings per share
Earnings per share disclosed in the accompanying statement of income are determined by dividing net
income by the weighted average number of shares circulating during the period concerned.
In Turkey, companies can raise their share capital by distributing “Bonus Shares” to shareholders from
retained earnings. In computing earnings per share, such “bonus share” distributions are assessed as
issued shares. Accordingly, the retrospective effect for those share distributions is taken into
consideration in determining the weighted-average number of shares outstanding used in this
computation.
2.2.12 Subsequent events
Subsequent events comprise any event between the balance sheet date and the date of authorization of
the financial statements for publication, even if any event after balance sheet date occurred subsequent
to an announcement on the Company’s profit or following any financial information disclosed to
public.
The Company adjusts the amounts recognized in the financial statements to reflect the adjusting events
after the balance sheet date. If non-adjusting events after the balance sheet date have material
influences on the economic decisions of users of the financial statements, they are disclosed in the
notes to the financial statements.
2.2.13 Provisions, contingent liabilities and contingent assets
Provisions are recognized when the Company has a present obligation as a result of a past event, and it
is probable that the Company will be required to settle that obligation, and a reliable estimate can be
made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the
present obligation at the balance sheet date considering the risks and uncertainties surrounding the
obligation.
Where a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement
will be received and the amount of the receivable can be measured reliably.
2.2.14
Related parties
For the purpose of these financial statements, shareholders, key management personnel and Board
members, in each case together with their families and companies controlled by/or affiliated with
them, associated companies are considered and referred to as related parties. The transactions with
related parties for operating activities are made with prices which are convenient with market prices.
15
2.2
2.2.15
Taxes on income
Taxes include current period income taxes and deferred taxes. Current year tax liability consists of tax
liability on the taxable income calculated according to currently enacted tax rates and to the effective
tax legislation as of balance sheet date.
Deferred income tax is provided, using the liability method, for temporary differences arising between
the tax bases of assets and liabilities and their carrying values for financial reporting purposes. Tax
bases of assets and liabilities comprise of the amounts that will affect the future period tax charges
based on the tax legislation. Currently enacted tax rates, which are expected to be effective during the
periods when the deferred tax assets will be utilised or deferred tax liabilities will be settled, are used
to determine deferred income tax.
Deferred tax liabilities are recognised for all taxable temporary differences, where deferred tax assets
resulting from deductible temporary differences are recognised to the extent that it is probable that
future taxable profit will be available against which the deductible temporary difference can be
utilised. Deferred tax assets arising from deductible temporary differences associated with such
investments and interests are only recognized to the extent that it is probable that there will be
sufficient taxable profits against which to utilize the benefits of the temporary differences and they are
expected to reverse in the foreseeable future.
Deferred tax assets and liabilities related to income taxes levied by the same taxation authority are
offset when there is a legally enforceable right to offset current tax assets against current tax liabilities.
2.2.16 Provision for employment termination benefits
Under the Turkish law and union agreements, severance payments are made to employees retiring or
involuntarily leaving the Company. Such payments are considered as being part of defined retirement
benefit plan as per International Accounting Standard No: 19 (Revised) “Employee Benefits”
(“IAS 19”).
The retirement benefit obligation recognized in the balance sheet represents the present value of the
defined benefit obligation as adjusted for unrecognized actuarial gains and losses.
2.2.17 Statement of cash flows
Cash and cash equivalents include cash and bank deposits and the investments that are readily
convertible into cash and highly liquid assets with less than three months to maturity. The cash flows
raised from operating activities indicate cash flows due to the Company’s operations. The cash flows
due to investing activities indicate the Company cash flows that are used for and obtained from
investments (investments in property, plant and equipment and financial investments).
The cash flows due to financing activities indicate the cash obtained from financial arrangements and
used in their repayment.
16
2.2
2.2.18 Share capital and dividends
Ordinary shares are classified as equity. Dividends on ordinary shares are recognized in equity in the
period in which they are declared.
2.2.19 Offsetting
All items with significant amounts and nature, even with similar characteristics, are presented
separately in the financial statements. Insignificant amounts are grouped and presented by means of
items having similar substance and function. When the nature of transactions and events necessitate
offsetting, presentation of these transactions and events over their net amounts or recognition of the
assets after deducting the related impairment are not considered as a violation of the rule of nonoffsetting.
2.2.20 Trade receivables and provision for doubtful receivables
Trade receivables that are created by the Company by way of providing goods or services directly to a
debtor are carried at amortised cost. Trade receivables are stated at face value less allowance for the
unearned portion of imputed finance income included in their face values by using the effective interest
rate method. Short duration receivables with no stated interest rate are measured at the original invoice
amount unless the effect of imputing interest is significant.
A credit risk provision for trade receivables is established if there is objective evidence that the Company
will not be able to collect all amounts due. The amount of the provision is the difference between the
carrying amount and the recoverable amount. The recoverable amount is the present value of all cash
flows, including amounts recoverable from guarantees and collateral, discounted based on the original
effective interest rate of the originated receivables at inception.
After allocation of impairment provision, the impairment amount is deducted from the provision and
recorded as other income when it is partially or fully collected.
2.2.21 Comparative Information and Restatement of Prior Periods Financial Statements
The financial statements of the Company are presented comparatively to enable the determination of
the trends of the financial position and performance. The balance sheet of the Company at
31 December 2013 has been presented with the comparative financial statements of 31 December
2012 and the statement of income, the statement of comprehensive income, the statement of changes
in equity and the statement of cash flows for the year ended 31 December 2013 have been presented
with the comparative financial information, for the year ended 31 December 2012.
17
2.3
Amendments in International Financial Reporting Standards
a.
Standards, amendments and IFRICs applicable to 31 December 2013 year ends
The changes below do not have any significant impact on the financial statements at 31 December
2013
-
Amendment to IAS 1, ‘Financial statement presentation’, regarding other comprehensive
income; is effective for annual periods beginning on or after 1 July 2012. The main change
resulting from these amendments is a requirement for entities to group items presented in ‘other
comprehensive income’ (OCI) on the basis of whether they are potentially reclassifiable to
profit or loss subsequently (reclassification adjustments). The amendments do not address
which items are presented in OCI.
-
Amendment to IAS 19, ‘Employee benefits’; is effective for annual periods beginning on or
after 1 January 2013. These amendments eliminate the corridor approach and calculate finance
costs on a net funding basis.
-
Amendment to IFRS 1, ‘First time adoption’, on government loans; ; is effective for annual
periods beginning on or after 1 January 2013. This amendment addresses how a first-time
adopter would account for a government loan with a below-market rate of interest when
transitioning to IFRS. It also adds an exception to the retrospective application of IFRS, which
provides the same relief to first-time adopters granted to existing preparers of IFRS financial
statements when the requirement was incorporated into IAS 20 in 2008.
-
Amendment to IFRS 7, ‘Financial instruments: Disclosures’, on asset and liability offsetting¸; is
effective for annual periods beginning on or after 1 January 2013. This amendment includes
new disclosures to facilitate comparison between those entities that prepare IFRS financial
statements to those that prepare financial statements in accordance with US GAAP.
-
Amendment to IFRSs 10, 11 and 12 on transition guidance; is effective for annual periods
beginning on or after 1 January 2013. These amendments provide additional transition relief to
IFRSs 10, 11 and 12, limiting the requirement to provide adjusted comparative information to
only the preceding comparative period. For disclosures related to unconsolidated structured
entities, the amendments will remove the requirement to present comparative information for
periods before IFRS 12 is first applied.
-
Annual improvements 2011; is effective for annual periods beginning on or after 1 January
2013. These annual improvements address six issues in the 2009-2011 reporting cycle. It
includes changes to: IFRS 1, ‘First time adoption’, IAS 1, ‘Financial statement presentation’,
IAS 16, ‘Property plant and equipment’, IAS 32, ‘Financial instruments; Presentation’ and IAS
34, ‘Interim financial reporting’.
-
IFRS 10, ‘Consolidated financial statements’; is effective for annual periods beginning on or
after 1 January 2013. The objective of IFRS 10 is to establish principles for the presentation and
preparation of consolidated financial statements when an entity controls one or more other
entity (an entity that controls one or more other entities) to present consolidated financial
statements. It defines the principle of control, and establishes controls as the basis for
consolidation. It sets out how to apply the principle of control to identify whether an investor
controls an investee and therefore must consolidate the investee. It also sets out the accounting
requirements for the preparation of consolidated financial statements.
18
2.3
Amendments in International Financial Reporting Standards (Continued)
-
IFRS 11, ‘Joint arrangements’; is effective for annual periods beginning on or after
1 January 2013. IFRS 11 is a more realistic reflection of joint arrangements by focusing on the
rights and obligations of the arrangement rather than its legal form. There are two types of joint
arrangement: joint operations and joint ventures. Joint operations arise where a joint operator
has rights to the assets and obligations relating to the arrangement and therefore accounts for its
interest in assets, liabilities, revenue and expenses. Joint ventures arise where the joint operator
has rights to the net assets of the arrangement and therefore equity accounts for its interest.
Proportional consolidation of joint ventures is no longer allowed.
-
IFRS 12, ‘Disclosures of interests in other entities’; is effective for annual periods beginning on
or after 1 January 2013. IFRS 12 includes the disclosure requirements for all forms of interests
in other entities, including joint arrangements, associates, special purpose vehicles and other off
balance sheet vehicles.
-
IFRS 13, ‘Fair value measurement’ ; is effective for annual periods beginning on or after
1 January 2013. IFRS 13 aims to improve consistency and reduce complexity by providing a
precise definition of fair value and a single source of fair value measurement and disclosure
requirements for use across IFRSs. The requirements, which are largely aligned between IFRS
and US GAAP, do not extend the use of fair value accounting but provide guidance on how it
should be applied where its use is already required or permitted by other standards within IFRSs
or US GAAP.
-
IAS 27 (revised 2011), ‘Separate financial statements’; is effective for annual periods
beginning on or after 1 January 2013. IAS 27 (revised 2011) includes the provisions on separate
financial statements that are left after the control provisions of IAS 27 have been included in the
new IFRS 10.
-
IAS 28 (revised 2011), ‘Associates and joint ventures’; is effective for annual periods beginning
on or after 1 January 2013. IAS 28 (revised 2011) includes the requirements for joint ventures,
as well as associates, to be equity accounted following the issue of IFRS 11.
-
IFRIC 20, ‘Stripping costs in the production phase of a surface mine’ is effective for annual
periods beginning on or after 1 January 2013. This interpretation sets out the accounting for
overburden waste removal (stripping) costs in the production phase of a mine. The
interpretation may require mining entities reporting under IFRS to write off existing stripping
assets to opening retained earnings if the assets cannot be attributed to an identifiable
component of an ore body.
19
NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS ( Continued)
2.3
b.
New IFRS standards, amendments and IFRICs effective after 1 January 2014:
The changes below do not have any significant impact on the financial statements at 31 December
2013
-
Amendment to IAS 32, ‘Financial instruments: Presentation’, on asset and liability offsetting is
effective for annual periods beginning on or after 1 January 2014.These amendments are to the
application guidance in IAS 32, ‘Financial instruments: Presentation’, and clarify some of the
requirements for offsetting financial assets and financial liabilities on the balance sheet.
-
Amendments to IFRS 10, 12 and IAS 27 on consolidation for investment entities is effective for
annual periods beginning on or after 1 January 2014. These amendments mean that many funds
and similar entities will be exempt from consolidating most of their subsidiaries. Instead, they
will measure them at fair value through profit or loss. The amendments give an exception to
entities that meet an ‘investment entity’ definition and which display particular characteristics.
Changes have also been made IFRS 12 to introduce disclosures that an investment entity needs
to make.
-
Amendment to IAS 36, 'Impairment of assets' on recoverable amount disclosures is effective for
annual periods beginning on or after 1 January 2014.This amendment addresses the disclosure
of information about the recoverable amount of impaired assets if that amount is based on fair
value less costs of disposal.
-
Amendment to IAS 39 ‘Financial Instruments: Recognition and Measurement’ - ‘Novation of
derivatives is effective for annual periods beginning on or after 1 January 2014. This
amendment provides relief from discontinuing hedge accounting when novation of a hedging
instrument to a central counterparty meets specified criteria.
-
IFRIC 21, 'Levies' is effective for annual periods beginning on or after 1 January 2014. This is
an interpretation of IAS 37, 'Provisions, contingent liabilities and contingent assets'. IAS 37 sets
out criteria for the recognition of a liability, one of which is the requirement for the entity to
have a present obligation as a result of a past event (known as an obligating event). The
interpretation clarifies that the obligating event that gives rise to a liability to pay a levy is the
activity described in the relevant legislation that triggers the payment of the levy.
-
IFRS 9 ‘Financial instruments’ – classification and measurement; is effective for annual periods
beginning on or after 1 January 2015. This standard on classification and measurement of
financial assets and financial liabilities will replace IAS 39, ‘Financial instruments: Recognition
and measurement’. IFRS 9 has two measurement categories: amortised cost and fair value. All
equity instruments are measured at fair value. A debt instrument is measured at amortised cost
only if the entity is holding it to collect contractual cash flows and the cash flows represent
principal and interest. For liabilities, the standard retains most of the IAS 39 requirements.
20
NOTE 2 - BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
2.3
-
These include amortised-cost accounting for most financial liabilities, with bifurcation of
embedded derivatives. The main change is that, in cases where the fair value option is taken for
financial liabilities, the part of a fair value change due to an entity’s own credit risk is recorded
in other comprehensive income rather than the income statement, unless this creates an
accounting mismatch. This change will mainly affect financial institutions.
-
Amendments to IFRS 9,‘Financial instruments’, regarding general hedge. These amendments
to IFRS 9, 'Financial instruments', bring into effect a substantial overhaul of hedge accounting
that will allow entities to better reflect their risk management activities in the financial
statements.
-
Amendment to IAS 19 regarding defined benefit plans; ; is effective for annual periods
beginning on or after 1 July 2014. These narrow scope amendments apply to contributions from
employees or third parties to defined benefit plans. The objective of the amendments is to
simplify the accounting for contributions that are independent of the number of years of
employee service, for example, employee contributions that are calculated according to a fixed
percentage of salary.
-
Annual improvements 2012; is effective for annual periods beginning on or after 1 July 2014.
These amendments include changes from the 2010-12 cycle of the annual improvements
project, that affect 7 standards:
-
IFRS 2, ‘Share-based payment’
IFRS 3, ‘Business Combinations’
IFRS 8, ‘Operating segments’
IFRS 13, ‘Fair value measurement’
IAS 16, ‘Property, plant and equipment’ and IAS 38,‘Intangible assets’
Consequential amendments to IFRS 9, ‘Financial instruments’, IAS 37, ‘Provisions, contingent
liabilities and contingent assets’, and
IAS 39, Financial instruments - Recognition and measurement’.
-
Annual improvements 2013; is effective for annual periods beginning on or after 1 July 2014. The
amendments include changes from the 2011-2013 cycle of the annual improvements project that affect
4 standards:
-
IFRS 1, ‘First time adoption’
IFRS 3, ‘Business combinations’
IFRS 13, ‘Fair value measurement’ and
IAS 40, ‘Investment property’.
21
2.4
Changes in the Accounting Policies and Errors
Significant changes in accounting policies or significant errors are corrected, retrospectively; by
restating the prior period financial statements. There are no significant changes in the accounting
policies for the period of 1 January - 31 December 2013.
2.5
Financial statements of joint ventures operating in other countries
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange
gains and losses resulting from the settlement of such transactions and from the translation at
period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in the consolidated statement of loss.
The results and financial position of all the Group entities that have a functional currency different
from the presentation currency are translated into the presentation currency as follows:
-
-
2.6
assets and liabilities are translated at the closing rate at the date of that balance sheet,
income and expenses are translated at average exchange rates unless this average is not
reasonable approximate of the cumulative effect of the prevailing on the transaction dates in
which case income and expenses are translated at the rate on the dates of the transactions, and
exchange differences resulted from translation of net assets both with the closing rate and
average rate are recognised as a separate component of equity (currency translation difference)
and in the other comprehensive income.
Comparatives and adjustment of prior periods’ financial statements
The Company's consolidated financial statements for the current period are prepared in comparison
with the previous periods in order to be able to determine the financial position and performance
trends. The comparative information is reclassified when necessary with the aim of ensuring
consistency with the presentation of the current period's consolidated financial statements.
In this context, the Company early adopted the revision in IAS 19 and has accounted for the
remeasurements of provision for employment termination benefits in other comprehensive income,
which was priorly accounted for in the statement of income.
22
2.6
Comparatives and adjustment of prior periods’ financial statements (Continued)
The effects of this corrections on the financial statements for the year ended 31 December 2012 are as
follows:
31 December 2012 (previously reported)
Retained
earnings
Other
comprehensive
income
Profit
for the
period
51.864.709
(11.245)
24.024.989
274.741
(389.469)
389.469
52.139.450
(400.714)
24.414.458
Change in the accounting policy in relation to
employment termination benefits, net of tax
31 December 2012 (Restated)
In accordance with the announcement regarding the financial statements and note formats, which
would be prepared as per the decision taken at CMB meeting No. 20/670 dated 07 June 2013, the
Group has made the necessary classifications according to the changes in display made in the current
period, in consolidated financial statements of the period.
NOTE 3 - SEGMENT REPORTING
The Company, which is incorporated and domiciled in Turkey, has primary operation of production of
cedar wood pencils, crayons and other stationery equipment, sell and export goods that are produced
in facilities, import purchase and sell of any kind of primary materials, semi-finished goods and
finished goods. The Company’s operating segments, nature and economic characteristics of products,
nature of production processes, classification of customers in terms of risk for their products and
services and methods used to distribute their products are similar. Furthermore, the Company structure
has been organized to operate in one segment rather than separate business segments. Consequently,
the business activities of the Company are considered to be in one operating segment and the operating
results, resources to be allocated to the segment and assessment of performance are managed in this
respect.
23
NOTE 4 - CASH AND CASH EQUIVALENTS
Cash on hand
Demand deposits
Time deposits
Other cash and cash equivalents
31 December 2013
31 December 2012
374.693
38.314.949
10.109
4.201
657.995
615.087
311
38.699.751
1.277.594
There are no blocked deposits as of 31 December 2013 and 2012. As of 31 December 2013, time
deposits amounting to TRY 6.427.699.Maturity of the deposits is less than one month and effective
rate for TRY denominated deposit is 0,1%.Time deposits amounting to TRY 19.087.250.The maturity
of the time deposits is one month and effective rate for TRY denominated deposits is 3,7%.Time
deposits amounting to TRY 12.800.000.Maturity of the time deposits is less than one month and
effective rate for TRY denominated deposit is 7,3%.
NOTE 5 - FINANCIAL INVESTMENTS
Ülkü Kırtasiye Ticaret ve Sanayi A.Ş.
Tasfiye halinde Anelsan A.Ş.
Less: provision for impairment
31 December 2013
(%)
TRY
31 December 2012
(%)
TRY
7,67
1,50
-
7,67
1,50
-
233.985
746.014
(746.014)
233.985
233.985
746.014
(746.014)
233.985
Since Anelsan A.Ş., of which the Company has investment with a share of 1,5%, has negative net
assets, the total of the investment has been impaired.
24
NOTE 6 - INVESTMENT IN JOINT VENTURES
Jointly controlled entity of the Company as of 31 December 2013 and 2012 is as follows:
31 December 2013
Pay (%)31 December 2012
747.661
50,00
337.354
Pay (%)
50,00
Movement in jointly controlled entity during 2013:
Opening
Cost of establishment of jointly controlled entity
Share of loss in the joint ventures accounted
using the equity method (Note 19)
Effect of currency translation differences
Closing
2013
2012
337.354
1.406.400
854.486
1.113.400
(1.402.363)
406.270
(1.619.287)
(11.245)
747.661
337.354
Assets, liabilities, net sales and profit/(loss) of the joint ventre as of 31 December 2013 and 2012 are as
follows:
2013
2012
Assets
Liabilities
Net sales
5.470.833
4.858.967
8.814.895
Assets
Liabilities
Net sales
4.732.010
4.104.049
5.296.579
Profit/(loss)
(2.804.726)
Profit/(loss)
(3.238.574)
NOTE 7 - FINANCIAL LIABILITIES
31 December 2013
Short term borrowings
EURO borrowings (*)
USD borrowings
TRY borrowings
Interest rate %
TRY amount
3,35 - 3,43
3,15
0,00
22.281.969
3.273.443
304
25.555.716
(*) This borrowing amount is composed of the principle amount lended in order to finance the construction of
the new plant in Şekerpınar land. The interest payment of the loan will be paid in less then 12 months and
reltaed interest accrual was classified in short term borrowings. The principle of the loan will be paid in longterm.
25
NOTE 7 - FINANCIAL LIABILITIES (Continued)
31 December 2013
Interest rate %
TRY amount
3,35 - 3,43
18.815.801
Long term borrowings
EURO borrowings (*)
18.815.801
31 December 2012
Short term borrowings
TRY borrowings
USD borrowings
Interest rate %
TRY amount
0,00 - 6,00
4,90
4.343.935
2.769.618
7.113.553
(*) This borrowing amount is composed of the principle amount lended in order to finance the construction of
the new plant in Şekerpınar land. The interest payment of the loan will be paid in less then 12 months and
reltaed interest accrual was classified in short term borrowings. The principle of the loan will be paid in longterm.
The Company did not give any guarantee for its financial liabilities. Since the maturities of the
financial liabilities are short, the carrying values are approximate to the fair values of financial
liabilities.
NOTE 8 - TRADE RECEIVABLES AND PAYABLES
Trade receivables
31 December 2013
Notes receivable (Dipnot 2.4)
Trade receivables
Less: Unearned finance income (-)
Less: Provision for doubtful receivables (-)
Trade payables
Suppliers
Other trade payables
Less: Unearned credit finance charges (-)
26
31 December 2012
14.312.037
8.671.771
(190.597)
(521.037)
17.958.940
6.826.792
(199.296)
(503.414)
22.272.174
24.083.022
31 December 2013
31 December 2012
7.247.157
1.074.206
(49.386)
4.110.707
4.466.049
(20.661)
8.271.977
8.556.095
NOTE 9 - OTHER RECEIVABLES AND PAYABLES
Short term other receivables
31 December 2013
31 December 2012
Deposits and guarantees given
Receivables from personnel
Other
544.823
245.149
7.629
462.487
102.869
8.754
797.601
574.110
31 December 2013
31 December 2012
329.842
364.419
329.842
364.419
31 December 2013
31 December 2012
1.837.966
500.821
1.437
1.484.158
408.836
12.736
2.340.224
1.905.730
31 December 2013
31 December 2012
Employee termination benefits
Payables to personnel
Short term other payables
Taxes and duties payables
Social Security Instution premium payables
Other
NOTE 10 - INVENTORIES
Raw materials and supplies
Semi-finished goods
Finished goods
Trade goods
Other inventories
Less: Provision for impairment on inventories
17.458.868
3.399.908
31.701.262
22.927.506
804.630
(101.822)
16.880.147
3.945.844
22.494.122
28.159.865
320.591
(429.526)
76.190.352
71.371.043
Movements of provision for impairment on inventories as of 31 December 2013 and 2012 are as
follows:
2013
2012
Balance at the beginning of the period
Additions
Reversal of provision (-)
Balance at the end of the period
27
429.526
366.100
(327.704)
63.426
-
101.822
429.526
CONVENIENCE TRANSLATION INTO ENGLISH OF FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH
NOTE 11 - PROPERTY, PLANT AND EQUIPMENT
Land
Land(*) improvements(*)
Buildings(*)
Machinery and
equipments
Vehicles
Furniture Construction in
and fixtures
progress
Total
As of 1 January 2013
Cost
Accumulated depreciation
2.728.729
-
964.626
(720.083)
13.933.001
(8.444.217)
76.097.836
(67.598.347)
459.489
(273.680)
8.609.397
(4.770.569)
1.166.480
-
103.959.558
(81.806.896)
Net book value
2.728.729
244.543
5.488.784
8.499.489
185.809
3.838.828
1.166.480
22.152.662
Opening
2.728.729
244.543
5.488.784
8.499.489
185.809
3.838.828
1.166.480
Additions
Cost of disposals
Accumulated depreciation of disposals
Transfers
Current period depreciation
-
1.200
(70.690)
6.908
(27.966)
Closing
2.728.729
153.995
As of 31 December 2013
Cost
2.728.729
-
895.136
(741.141)
Net book value
2.728.729
153.995
(*)
(**)
20.850
(6.631.067)
1.414.519
(100.136)
192.950
7.322.784
(7.129.834)
192.950
22.152.662
(**)
3.897.536
(1.974.896)
1.952.321
93.604
(1.726.529)
269.813
(45.178)
4.529.058
(130.584)
83.541
(1.400.430)
9.501.295
(1.290.858)
-
18.219.752
(8.807.237)
3.457.289
(1.197.254)
(3.300.239)
10.741.525
410.444
6.920.413
9.376.917
30.524.973
78.114.080
(67.372.555)
729.302
(318.858)
13.007.871
(6.087.458)
9.376.917
-
112.174.819
(81.649.846)
10.741.525
410.444
6.920.413
9.376.917
30.524.973
On 15 October 2012, the Company has publicly announced through KAP that; the Company has initiated valuation process for the sales of its land and buildings located in
Istanbul, Kartal, 4458 block, 139 section, 28, 38, 39, 164 and 165 parcels which is 16.681 metresquares in total. Those assets were valued by three seperate independent real
estate valuation companies licensed by the Capital Markets Board and were valued between TRY 22 million and TRY 27 million exluding value added taxes. On 8 March 2013,
the Board of Directors has autorised the Company management to continue their preperation and work in relation to moving the Company to Kocaeli, Çayırova, Şekerpınar and
the sales process of the land and buildings through tender and as cash in advance.
The amount includes the borrowings costs that were capitalised in the context of IAS 23 for the construction in progress in Şekerpınar.
As of 31 December 2012, TRY1.445.307 of the depreciation expense is included in “cost of goods sold” and TRY1.854.932 is included in “general administrative expenses”
28
NOTE 11 - PROPERTY, PLANT AND EQUIPMENT (Continued)
Machinery
Land
Land improvements
and
Buildings
equipments
Vehicles
Furniture
and fixtures
Construction
in
progress
Total
As of 1 January 2012
Cost
2.728.729
-
891.826
(689.244)
13.786.471
(8.289.375)
74.437.543
(68.387.648)
459.489
(251.483)
5.551.052
(4.146.106)
45.000
-
97.900.110
(81.763.856)
Net book value
2.728.729
202.582
5.497.096
6.049.895
208.006
1.404.946
45.000
16.136.254
Opening
2.728.729
202.582
5.497.096
6.049.895
208.006
1.404.946
45.000
16.136.254
3.517.228
(2.379.485)
2.253.051
522.550
(1.463.750)
(22.197)
3.120.488
(62.143)
44.649
(669.112)
1.929.040
(807.560)
-
8.643.476
(2.441.628)
2.297.700
(142.400)
(2.340.740)
Additions
Cost of disposals
Accumulated depreciation of disposals
Transfers
Current period depreciation
-
72.800
(30.839)
3.920
142.610
(154.842)
Closing
2.728.729
244.543
5.488.784
8.499.489
185.809
3.838.828
1.166.480
22.152.662
As of 31 December 2012
Cost
2.728.729
-
964.626
(720.083)
13.933.001
(8.444.217)
76.097.836
(67.598.347)
459.489
(273.680)
8.609.397
(4.770.569)
1.166.480
-
103.959.558
(81.806.896)
Net book value
2.728.729
244.543
5.488.784
8.499.489
185.809
3.838.828
1.166.480
22.152.662
As of 31 December 2012, TRY1.241.564 of the depreciation expense is included in “cost of goods sold” and TRY1.099.176 is included in “general administrative expenses”.
29
NOTE 12 - INTANGIBLE ASSETS
2013
As of 1 January
Cost
Accumulated amortization
2012
693.416
(289.038)
400.678
(225.128)
Net book value
404.378
175.550
Net book value at the beginning of the period
404.378
175.550
Additions
Transfers
Disposals
Amortization
958.779
1.197.254
(12.338)
(315.216)
150.338
142.400
(63.910)
Net book value at the end of the period
2.232.857
404.378
As of 31 December
Cost
Accumulated amortization
2.837.111
(604.254)
693.416
(289.038)
Net book value
2.232.857
404.378
Amortization expense is included in “general administrative expenses”.
NOTE 13 - PROVISIONS, COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES
Provisions
Provision for lawsuits
31 December 2013
31 December 2012
71.695
71.695
71.695
71.695
Contingent liabilities
Under 7th Tax Court Decision No. 2008/2839, File No: 2007/2133, dated 20 October 2008,
communicated to the Company on 9 January 2009, the Company was subject to payment of TRY 71.695
(TRY 50.313 anti-damping tax, TRY 21.382 delay interest) to the Haydarpaşa Customs Administration;
the Company filed an objection to this decision with the Council of State on 29 January 2009.
Contingent assets
Debt enforcement proceedings were initiated at the Istanbul 13th Enforcement Office under file No.
2004/16698 E. regarding Adel Kalemcilik Ticaret ve Sanayi A.Ş.’s receivables from nine cheques,
amounting to TRY 304.315 in total. The enforcement has been finalised. The debtor company filed a
property declaration stating that it has no distrainable properties.
Since Adel Kalemcilik Ticaret ve Sanayi A.Ş. could not collect its receivables due to its current account
relationship with its client, amounting to TRY 17.357, an action for debt was filed with the Kadıköy 2nd
Commercial Court of First Instance with file number 2009/761 E. The receivables were registered in order
table in Kadıköy Bankruptcy Office with file number 2009/47 E. Because of this pendency, it was decided
to not to finalise the case.
30
NOTE 13 - PROVISIONS, COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES
(Continued)
Since Adel Kalemcilik Ticaret ve Sanayi A.Ş. could not collect its receivables due to its current account
relationship with its client, amounting to TRY 173.483, an executive proceeding was started with the
İstanbul 18th Enforcement Office with file number 2012/18797 E. It was levied a distraint to debtor's real
estate and 8 vehicles. In addition, relying on such receivables, executive proceedings were started with the
İstanbul 18th Enforcement Office with file number 2012/20785 E. and with the Kartal 1st Enforcement
Office with file number 2012/6142 E. On 31 January 2013, a notice of levy was sent to several banks.
The Company had an ongoing lawsuit with the general directorate of highways in relation to the
expropriated price of the assets of Company located in Giresun, Ulper, 640B14C3C section, 134 block 1
parcel. Such lawsuit was concluded on 19 July 2013 and the Company was decided to have TRY445.137
as expropriated price and interets amounting to TRY 6.364. The desicion was taken to court of appeal by
both parties.
Commitments and guarantees given
31 December 2013
5.766.673
227.917
Letter of credit commitments
Letters of guarantee
31 December 2012
5.090.877
206.049
The details of collaterals, pledges and mortgages (“CPM”) of the Company at 31 December 2013 and
2012 are as follows:
CPM given by the Company
TRY Equivalent
A. CPM given on behalf of the Company’s legal personality
B. CPM given on behalf of fully consolidated subsidiaries
C. CPM given for continuation of its economic
activities on behalf of third parties
D. Total amount of other CPM
i. CPM given on behalf of the Parent
ii. CPM given on behalf of the Group’s companies
excluding the articles B and C
iii.CPM given on behalf of third parties
excluding the article C
CPM given by the Company
Euro
TRY
227.917
-
-
-
227.917
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
227.917
-
-
227.917
Euro
TRY
TRY Equivalent
A. CPM given on behalf of the Company’s legal personality
B. CPM given on behalf of fully consolidated subsidiaries
C. CPM given for continuation of its economic
activities on behalf of third parties
D. Total amount of other CPM
i CPM given on behalf of the Parent
ii. CPM given on behalf of the Group’s companies
excluding the articles B and C
iii. CPM given on behalf of third parties
excluding the article C
31 December 2013
USD
31 December 2012
USD
206.049
-
-
-
206.049
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
206.049
-
-
206.049
Proportion of other CPM’s on equity at 31 December 2013 are 0,16% respectively (2012: 0,20%).
31
NOTE 14 - EMPLOYEE BENEFITS
Short term employee benefits
31 December 2013
31 December 2012
348.020
233.646
348.020
233.646
31 December 2013
31 December 2012
5.056.283
985.344
4.613.855
710.366
6.041.627
5.324.221
Accruals for bonus
Long term employee benefits
Provision for employment termination benefits
Accruals for unused vacation
The movement of accruals for unused vacation as of 31 December 2013 and 2012 are as follows::
2013
2012
Beginning of the period
710.366
544.246
Provision for the period
274.978
166.120
End of the period
985.344
710.366
Employment termination benefits
Under the Turkish Labour Law, the Company is required to pay termination benefits to each employee
who has completed one year of service and who achieves the retirement age (58 for women and 60 for
men) and whose employment is terminated without due cause, is called up for military service, or dies.
The liability is not funded, as there is no funding requirement.
Provision for employment termination benefits is calculated by estimating the present value of the
future probable obligation arising from the retirement of the employees of the Company. International
Financial Reporting Standards require actuarial valuation methods to be developed to estimate the
enterprise's obligation under defined benefit plans. Accordingly the following actuarial assumptions
were used in the calculation of the total provision:
Discount rate (%)
Turnover rate to estimate the probability of retirement (%)
31 December 2013
31 December 2012
3,95
100
2,48
100
At 31 December 2013 the amount payable consists of one month's salary limited to a maximum of
TRY 3,254 (31 December 2012: TRY3,034) for each year of service.
32
NOTE 14 - EMPLOYEE BENEFITS (Continued)
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. As the maximum liability is revised semi-annually, the
maximum amount of 3.438,22 TL (1 January 2013: 3.129,25 TL) which is effective from 1 January
2014, has been taken into consideration in calculating the provision for employment termination
benefits of the Company.
Movements of the provision for employment termination benefits in 2013 and 2012 were as follows:
2013
2012
Beginning of the period
Sevice cost
Interest cost
Payments
Remeasurements of
employment termination benefit
4.613.855
928.517
96.578
(246.898)
3.544.265
1.040.698
206.131
(664.075)
(335.769)
486.336
End of the period
5.056.283
4.613.855
31 December 2013
31 December 2012
359.079
297.439
359.079
297.439
31 December 2013
31 December 2012
5.206.420
3.275.061
5.206.420
3.275.061
31 December 2013
31 December 2012
11.410.960
7.067.982
34.671
4.254
1.123.876
5.310.482
24.564
457.581
18.517.867
6.916.503
NOTE 15 - OTHER ASSETS AND LIABILITIES
Short term prepaid expenses
Prepaid expenses
Current income tax asset
Prepaid taxes and funds (Note 21)
Other current assets
Advances given
Transferred Value Added Tax (“VAT”)
Job advances
Other
33
NOTE 15 - OTHER ASSETS AND LIABILITIES (Continued)
Other non-current assets
Advances given
31 December 2013
31 December 2012
8.835.111
-
8.835.111
-
The balance is composed of advances given to Aytaç İnşaat San. ve Tic. A.Ş. for the construction of
the new plant in Şekerpınar.
Long term prepaid expenses
31 December 2013
31 December 2012
70.194
72.900
70.194
72.900
31 December 2013
31 December 2012
1.170.638
2.426.092
1.170.638
2.426.092
Prepaid expenses
Other current liabilities
Advances received (Note 2.4.)
This liability consists of checks that have been obtained as a guarantee of customer orders.
NOTE 16 - EQUITY
Paid-in capital
The Company’s shareholders and their shares in paid-in capital are as follows:
31 December 2013
Share %
Amount
Faber-Castell Aktiengesellschaft
Publicly quoted
Other
Paid-in capital
31 December 2012
Share %
Amount
56,89
15,40
22,60
5,11
4.479.718
1.212.647
1.779.853
402.782
56,89
15,40
22,60
5,11
4.479.718
1.212.647
1.779.853
402.782
100,00
7.875.000
100,00
7.875.000
Adjustment to share capital
13.374.985
13.374.985
Total share capital
21.249.985
21.249.985
Adjustment to share capital represents the restatement effect of cash and cash equivalent contributions
to share capital. The Company is not included in registered capital system.
34
NOTE 16 - EQUITY (Continued)
Total shares, share groups and concessions:
While, 1.212.647.073 of the total shares of the Company amounting to TRY 1.212.647 are registered in
accordance with Foreign Capital Regulations, 6.662.352.927 of the total shares amounting to
TRY 6.662.353 are bearer shares. There are no privileges to the shareholders regarding Board of Directors
election.
Restricted Reserves
According to Turkish Commercial Code (“TCC”), legal reserves are consist of two parts as the first
and second reserves. According to TCC, the first legal reserves is allocated from the 5% of net profit
for the year until the amount reaches to 20% of paid in capital. The second legal reserves is allocated
from the 10% of the dividend distributed which exceeds the 5% of the paid in capital.
According to TCC, unless the legal reserves exceeds the 50% of paid in capital, they could be utilesed
solely through offsetting the net losses incurred. In the context of Corporate Tax Law 5520 Article 5/e,
as a result of sales of property and financial investments, 75% of gain on sales was classified as Profit
from the sale of “participation shares and property”.
Legal reserves
Profit from the sale of participation shares and property
31 December 2013
31 December 2012
7.321.694
1.284.919
6.156.194
1.284.919
8.606.613
7.441.113
Retained earnings
Retained earnings consist of extraordinary reserves and other retained earnings. Based on CMB
regulations, breakdown of the retained earnings is as follows:
Extraordinary reserves
Other retained earnings
31 December 2013
31 December 2012
61.848.346
1.491.312
50.648.138
1.491.312
63.339.658
52.139.450
Dividend distribution
Based on the CMB Decree 7/242, dated 25 February 2005, if the amount of profit distributions
calculated in accordance with the net distributable profit requirements of the CMB does not exceed the
statutory net distributable profit, the total amount of distributable profit should be distributed. If it
exceeds the statutory net distributable profit, the total amount of the statutory net distributable profit
should be distributed. It is stated that dividend distributions should not be made if there is a loss in
either the financial statements prepared in accordance with CMB regulations or in the statutory
financial statements. Based on CMB Decree No. 02/51, dated 27 January 2010, there is no mandatory
minimum profit distribution requirement for the quoted entities at the stock exchange.
Inflation adjustment difference in equity can be utilized in issuing bonus shares and in offsetting
accumulated losses; the carrying amount of extraordinary reserves could have been utilized in issuing
bonus shares, cash dividend distribution and offsetting accumulated losses. However, adjustment to
share capital is taxable if it is used in cash dividend distribution.
35
NOTE 16 - EQUITY (Continued)
The Company management’s profit distribution decision will be taken in General Assembly meeting.
If the profit is going to be distributed, the total amount should be funded from statutory distributable
profits.
During the General Assembly on 6 May 2013, based on the Board of Directors minute dated 9 April
2013 and in accordance within the framework of CMB's Communiqué Serial:XI No: 29 dated 9
January 2009, dividend distribution was intercoursed and decided to be distributed which constitute
153% of the paid in capital amounting to gross TRY12.048.750 and net TRY10.241.437,50.
Accordingly, as agreed on 6 May 2013, the dividend which was attributable to gross TRY1.53 per
TRY1 nominal share (%127), net TRY1,3005 (105,05) was began to be distributed on 31 May 2013
and concluded on 4 June 2013 as cash.
Details of dividend distribution are as follows:
Dividends paid to shareholders
Board of Directors share from profit
2013
2012
12.048.750
-
10.001.250
1.021.600
12.048.750
11.022.850
NOTE 17 - REVENUE AND COST OF SALES
2013
2012
Domestic sales
Foreign sales
Sales discounts (-)
224.920.805
10.014.415
(48.835.312)
194.605.154
8.513.454
(43.504.953)
Net sales
186.099.908
159.613.655
Cost of sales (-)
(96.103.392)
(82.078.281)
89.996.516
77.535.374
2013
2012
Raw materials used
Labor costs
Overhead costs
Depreciation and amortization expenses
Change in semi-finished goods inventory
Change in finished goods inventory
35.293.882
8.040.533
12.526.653
1.445.307
545.936
(9.207.140)
32.161.463
6.492.314
11.847.525
1.241.564
(389.971)
(6.708.484)
Cost of goods sold
48.645.171
44.644.411
Cost of trade goods sold
47.458.221
37.433.870
Cost of sales
96.103.392
82.078.281
Gross profit
36
NOTE 18 - EXPENSE BY NATURE
Details of operating expenses are as follows :
Raw materials and trade goods
Personnel expenses
Domestic sale expenses
Outsourcing expenses
Advertising expenses
Depreciation and amortization
Rent expenses
Licence fees
Repair and maintenance expenses
Fuel, water and electricity expenses
Information technologies expenses
Other
Tax and duties
Export expenses
International travel expenses
Domestic travel expenses
Travelling expenses
Insurance expenses
Market research and quality enhancement expenses
Communication expenses
Other supplies
Stationery expenses
2013
2012
75.536.205
29.567.465
11.742.867
4.233.612
3.695.483
3.615.455
2.775.537
2.496.861
1.831.521
1.593.426
1.575.011
1.112.381
1.074.289
755.299
645.823
588.551
571.538
521.127
348.085
212.863
204.050
149.612
62.918.959
24.692.840
8.858.940
6.784.227
2.217.114
2.404.650
1.161.848
1.975.033
2.153.298
1.355.276
1.393.735
914.875
557.823
532.180
372.300
261.785
434.703
434.751
205.005
191.527
128.597
110.672
144.847.061
120.060.138
Expenses by nature comprise cost of sales, research and development costs, selling, marketing and
distribution expenses and general administrative expenses.
2013
2012
Cost of sales
Marketing, selling and distribution expenses
General and administrative expenses
96.103.392
30.321.101
18.422.568
82.078.281
24.914.379
13.067.478
144.847.061
120.060.138
Allocation of personnel expenses to cost of sales, selling, marketing and distribution expenses and
general administrative expenses:
Cost of sales
General and administrative expenses
Marketing, selling and distribution expenses
37
2013
2012
11.899.896
10.582.356
7.085.213
11.193.503
7.627.637
5.871.700
29.567.465
24.692.840
NOTE 19 - OTHER OPERATING INCOME AND EXPENSES
Other operating income
Foreign exchange gains
Insurance benefits
Income from services
Compensation income
Rental income
Other
Other operating expense
Donations
Accrued financial expenses
Other
2013
2012
397.970
29.891
23.958
17.623
10.560
298.546
152.926
981.211
21.780
9.350
95.621
778.548
1.260.888
2013
2012
1.850.000
(34.389)
204.374
1.700.000
80.841
520.541
2.019.985
2.301.382
2013
2012
Other income from investing activities are as follows:
Income/(loss) from investing activities
Gain/(loss) on sales of property, plant and equipment
21.771.581
(43.050)
21.771.581
(43.050)
On 27 June 2013, the Company has sold its property registered in Istanbul, Büyükçekmece, Esenyurt
amounting to TRY 27.850.000 and in accordance with the desicion made by Board of Directors dated
24 June 2013, it was planned to account for the 75% of the gain on sales of property under equity (in
accordance with Corporate Tax Law Artice 5/e). Baed on the Law, the amount accounted for under
equity shall not be utilised for the following five years.
2013
2012
Loss on investments
Using equity accounting method
LLC Faber-Castell Anadolu (Note 6)
38
(1.402.363)
(1.619.287)
(1.402.363)
(1.619.287)
NOTE 20 - FINANCIAL INCOME AND EXPENSES
Financial income
Foreign exchange gains
Interest income
Financial expenses
Interest expenses
Foreign exchange losses
Interest expense on employment termination benefits
Other
2013
2012
862.148
278.314
37.719
546.772
1.140.462
584.491
2013
2012
3.388.420
1.994.956
96.578
60.084
5.616.604
447.895
206.131
326.059
5.540.038
6.596.689
2013
2012
NOTE 21 - TAXATION ON INCOME
Taxation on income (-)
Deferred tax income
(7.709.251)
1.390.301
(6.576.236)
152.206
Total tax expense (net)
(6.318.951)
(6.424.030)
Reconciliation between current year tax expense and profit is as follows:
2013
2012
Profit before tax
55.981.052
30.838.488
Tax rate
Calculated tax expense
Discount and additions
%20
11.196.211
(4.877.260)
%20
6.167.698
256.332
6.318.951
6.424.030
31 December 2013
31 December 2012
Tax expense
Current income tax liabilities
Less: Corporate income taxes paid
Current income tax liabilities (net) ( Note 15)
39
7.709.252
(12.915.672)
6.576.236
(9.851.297)
(5.206.420)
(3.275.061)
NOTE 21 - TAXATION ON INCOME (Continued)
Prepaid corporate income taxes are included as part of other current assets to be offset against future
tax liabilities in the accompanying balance sheet at 31 December 2013 and 2012 (Note 15).
Temporary Differences
Deferred taxation
31 December 31 December 31 December 31 December
2013
2012
2013
2012
Provision for employee benefits
Property, plant and equipment and
intangible assets
Provision for unused vacation
Provision for unused Adel Club points
Accruals for premiums
Provision for impairment of inventories
Provision for lawsuits
Unearned credit finance expense
on trade receivables
Promotional materials
Accruals for personnel bonus
Accruals for dealer premiums
Revenue cut-off
Provision for returns
Unearned credit finance income
on trade payables
Unearned credit finance expense
on notes receivables
Other
5.056.284
4.613.855
2.500.729
985.343
798.990
348.020
101.822
50.313
(4.113.239)
710.366
122.751
233.646
429.526
50.313
1.011.257
922.771
500.146
197.069
159.798
69.604
20.364
10.063
(822.648)
142.073
24.550
46.729
85.905
10.063
49.192
4
(207.597)
(141.604)
29.653
85.472
192.094
1.663
-
9.838
1
(41.519)
(28.321)
5.931
17.094
38.419
333
-
(58.459)
(27.173)
(11.692)
(5.435)
(48.050)
9.637
164.177
16
(9.610)
1.927
32.835
4
Deferred tax asset, net
1.888.925
498.624
2013
2012
498.624
346.418
Deferred tax income
1.390.301
152.206
Closing deferred tax asset, net
1.888.925
498.624
Opening
40
NOTE 22 - EARNINGS PER SHARE
Earnings per share for each class of share disclosed in the income statement is determined by dividing
the net income attributable to that class of share by the weighted average number of shares of that
class outstanding during the year. Earnings per share in terms of share groups are as follows:
Net profit for current period
Weighted average number of ordinary
shares with nominal value TRY each
2013
2012
49.662.101
24.414.458
7.875.000
7.875.000
6,3063
3,1002
Earnings per share
NOTE 23 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES
a)
Related party balances
Receivables
Payables
31 December 31 December 31 December 31 December
2013
2012
2013
2012
245.186
A.W. Faber-Castell Ceska Rep. SPOL s.r.o.
94.120
A.W. Faber-Castell Italia s.r.l
76.948
PT Faber-Castell International Indonesia
40.504
A.W. Faber-Castell (aust) pty ltd a.c.n.
17.641
A.W. Faber-Castell Vetrieb GmbH
9.759
Efes Pazarlama A.Ş.
4.269
Anelsan Anadolu Elekt. A.Ş.
2.220
A.W. Faber-Castell Peruana SA
473
Coco-Cola İçecek A.Ş.
Anadolu Termik Santralları Elektrik Üretim A.Ş.
Faber-Castell U.S.A. Inc.
Anadolu Isuzu Oto. San. ve Tic. A.Ş.
Çelik Motor Tic. A.Ş.
Alternatif Bank A.Ş.
Anadolu Restoran İşletmeleri Ltd. Şti.
Anadolu Efes Biracılık ve Malt San. A.Ş.
Efestur Turizm İşletmeleri A.Ş.
Ülkü Kırtasiye A.Ş.
Anadolu Sigorta Acentalığı A.Ş.
Anadolu Bilişim Hizmetleri A.Ş.
Other
1.925
Less: unearned credit finance income (-)
106.707
29.298
11.406
14.274
27.482
398
9.911
8.272
511
56.772
5.032
131
2.360
2.327
155.203
63.439
74.256
134.787
33.507
518.196
354.390
1.119
839
31.862
5.590
523.428
6.552
13.670
36.483
94.584
84.277
434.983
35.271
493.045
(130)
270.063
(575)
1.338.596
(9.073)
1.268.658
(6.512)
492.915
269.488
1.329.523
1.262.146
41
NOTE 23 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued)
b)
Transactions with related parties
Purchases of goods
A.W. Faber-Castell (Guangzhou) Stationery Co. Ltd.
A.W. Faber Castell (M) Sdn. Bhd.
A.W. Faber Castell Peruana S.A.
A.W. Faber Castell(I) Pvt. Ltd. India
P.T. A.W. Faber Castell Ind.
A.W. Faber Castell Brezilya S.A.
Eberhard Faber Vertieb GmbH
Other
Purchases of services
Anadolu Bilişim Hizmetleri A.Ş.
Anadolu Restoran İşletmeleri Ltd. Şti.
Efestur Turizm İşletmeleri A.Ş.
Çelik Motor Tic. A.Ş.
Other
Sales of goods
A.W. Faber-Castell Ceska Rep. SPOL s.r.o
A.W. Faber-Castell Italia s.r.l
A.W. Faber Castell Brezilya S.A.
A.W. Faber Castell Peruana S.A.
Faber-Castell Argentina
PT Faber-Castell International Indonesia
Efes Pazarlama A.Ş.
Alternatif Bank
Faber-Castell U.S.A. Inc.
Anadolu Efes Biracılık ve Malt San. A.Ş.
Other
42
2013
14.260.894
6.849.068
5.563.289
1.872.463
1.077.546
643.536
440.813
1.604
-
2012
19.285.742
6.326.143
4.365.769
1.577.514
467.751
748.408
605.957
279.004
253.385
30.709.213
33.909.673
2013
2012
3.088.814
3.047.939
1.615.510
1.378.809
1.168.496
958.412
675.153
1.650.903
1.908.273
1.395.195
1.086.930
1.027.567
747.470
458.262
11.933.133
8.274.600
2013
2012
453.982
325.628
298.429
253.940
131.425
130.696
98.352
94.886
84.115
41.221
23.709
22.489
111.245
205.256
335.211
399.522
111.947
81.661
95.489
41.865
52.128
40.863
10.605
33.586
111.237
2.070.117
1.519.370
NOTE 23 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued)
Sales of services
Other
2013
2012
1.067.019
200.835
30.367
11.614
41.271
21.120
10.514
1.309.835
72.905
2013
2012
Financial income / (expenses) - net
Alternatif Bank
Alternatif Yatırım A.Ş.
161.492
(42)
259.285
(316.912)
-
161.450
(57.627)
Other transactions
2013
Anadolu Eğitim ve Sosyal Yardım Vakfı(*)
Other
2012
1.850.000
(7.381)
1.700.000
44.519
1.842.619
1.744.519
Donations were made to Anadolu Eğitim ve Sosyal Yardımlaşma Vakfı.
(*)
c)
Key management compensation
Key management consists of the Chairman of the Board and the General Manager. Key management
compensation provided or will be provided is as follows:
Short term employee benefits
Employment termination benefits
Post-employment benefits
Other long term benefits
Share based payments
43
2013
2012
4.529.660
165.906
-
3.716.831
134.067
-
4.695.566
3.850.898
NOTE 24 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT
a)
Capital Risk Management
The Company manages its capital to ensure that entities in the Company will be able to continue as a
going concern while maximizing its profit and market value through the optimization of the debt and
equity balance.
The Company’s equity comprised of borrowings, cash and cash equivalents and respectively share
capital, capital reserves, profit reserves and retained earnings items.
Risks, associated with each capital class, and the capital cost are evaluated by the top management. It
is aimed that the capital structure will be set in balance by means of new borrowings or repaying the
existing debts as well as dividend payments and new share issuances based on the top management
evaluations.
The Company monitors capital by using debt to total capital ratio. This ratio is calculated by dividing
the net debt by total capital. The net debt is calculated by excluding the cash and cash equivalent
amounts from the total debt amount (including credits, leasing and commercial debts as indicated in
the balance sheet). Total capital is calculated by adding net debt to shareholders’ equity as indicated in
the balance sheet.
General strategy of the Company based on shareholders’ equity is not different from previous periods.
The Company does not conduct hedging contracts (including derivative financial instruments) for the
purpose of diversifying foreign currency fluctuation risks.
Net debt/ (equity+net debt) ratio is as of 31 December 2013 and 2012 as follows:
31 December 2013
Total liabilities
Less: liquid assets
31 December 2012
53.973.017
(38.699.751)
16.931.794
(1.277.594)
15.273.266
15.654.200
Equity
142.794.802
104.506.566
Equity+net debt
158.068.068
120.160.766
10%
13%
Net debt
Net debt/ (Equity+net debt) ratio
44
NOTE 24 - FINANCIAL
(Continued)
b)
INSTRUMENTS
AND
FINANCIAL
RISK
MANAGEMENT
Financial risk factors
The Company’s activities expose it to a variety of financial risks: market risk (including currency risk,
fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.
The Company’s overall risk management program focuses on the unpredictability of financial markets
and seeks to minimize potential adverse effects on the Company’s financial performance.
c)
Foreign currency risk management
Certain transactions denominated in foreign currencies results in foreign currency.
The Company exposed to currency risk as the mismatch between foreign currency denominated assets
and liabilities. Currency risk is due to future transactions and difference between assets and liabilities
recognised.
The Company’s assets and liabilities denominated in foreign currencies at 31 December 2013 and
2012 are as follows:
31 December 2013
Assets
Liabilities
37.596.985
(43.672.817)
Net balance sheet position
(6.075.832)
31 December 2012
3.082.402
(2.895.706)
186.696
The Company mainly exposes foreign currency risk of USD and EUR.
Profit/ (loss) 31 December 2013
Gain
Loss
Change in USD against TRY by +/- 10%:
1- USD net asset/liabilities
2- USD net hedged amount (-)
3- USD net effect (1+2)
637.967
637.967
(637.967)
(637.967)
Change in EUR against TRY by +/- 10%:
4- Euro net asset/liabilities
5- Euro net hedged amount (-)
6- Euro net effect (4+5)
(1.245.550)
(1.245.550)
1.245.550
1.245.550
Change in Other foreign currency against TRY by +/- 10%:
7- Other foreign currency net asset/liabilities
8- Other foreign currency net hedged amount (-)
9- Other foreign curency net effect (4+5)
(607.583)
45
607.583
NOTE 24 - FINANCIAL
(Continued)
INSTRUMENTS
AND
Profit/ (loss) 31 December 2012
FINANCIAL
RISK
Gain
MANAGEMENT
Loss
Change in USD against TRY by +/- 10%:
1- USD net asset/liabilities
2- USD net hedged amount (-)
3- USD net effect (1+2)
(31.701)
(31.701)
31.701
31.701
50.370
50.370
(50.370)
(50.370)
18.669
(18.669)
Change in EUR against TRY by +/- 10%:
4- Euro net asset/liabilities
5- Euro net hedged amount (-)
6- Euro net effect (4+5)
46
NOTE 24 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Continued)
The breakdown of the Company’s foreign currency denominated monetary and non-monetary assets and liabilities as of the balance sheet date are as follows:
31 December 2013
2a.
2b.
Trade Receivables
Monetary Financial Assets
Non-monetary Financial Assets
3.
Other
4.
5.
6a.
6b.
Total Current Assets (1+2+3)
Trade Receivables
Monetary Financial Assets
Non-monetary Financial Assets
7.
Other
1.
8.
9.
10.
11.
12a.
12b.
13.
14.
15.
16a.
16b.
17.
18.
19.
Total Non-current Assets (5+6+7)
Total Assets (4+8)
Trade Payables
Financial Liabilities
Other Monetary Liabilities
Other Non-monetary Liabilities
Total Current Liabilities (10+11+12)
Trade Payables
Financial Liabilities
Other Monetary Liabilities
Other Non-monetary Liabilities
Total Non-current liabilities (14+15+16)
Total liabilities (13+17)
Net asset/liability position of
off-balance sheet derivatives (19a-19b)
19a. Total asset hedged amount
19b. Total liability hedged amount
20. Net asset/liability position of
foreign currency (9-18+19)
21. Monetary items net asset/liability position of
foreign currency
(1+2a+3+5+6a-10-11-12a-14-15-16a)
22. Fair value of hedged funds of
foreign currency
23. Hedged amount of foreign currency assets
24. Hedged amount of foreign currency liabilities
25.
26.
Export
Import
31 December 2012
TRY Equivalent
USD
EUR
GBP
Other TRY Equivalent
USD
EUR
GBP
Other
1.428.960
25.591.384
10.576.641
37.596.985
37.596.985
389
43.578.325
94.103
43.672.817
43.672.817
498.623
23.717
3.981.506
4.503.846
4.503.846
180
1.500.000
14.549
1.514.729
1.514.729
124.212
8.697.690
707.956
9.529.858
9.529.858
1
13.750.000
21.472
13.771.473
13.771.473
-
-
907.800
223.609
1.950.993
3.082.402
3.082.402
30.192
2.769.871
95.643
2.895.706
2.895.706
377.178
94.122
973.107
1.444.407
1.444.407
14.877
1.553.837
53.527
1.622.241
1.622.241
100.116
23.739
91.990
215.845
215.845
1.561
97
1.658
1.658
-
-
-
-
-
-
-
-
-
-
-
-
(6.075.832)
2.989.117
(4.241.615)
-
-
186.696
(177.834)
214.187
-
-
(6.075.832)
2.989.117
(4.241.615)
-
-
186.696
(177.834)
214.187
-
-
9.867.037
60.458.324
3.513.673
20.565.654
1.255.594
8.181.273
153.925
7.330.531
8.675.021
58.353.856
1.202.636
10.713.493
101.186
4.800.000
47
3.294.290
18.566.008
NOTE 24 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT
(Continued)
d)
Interest rate risk
As of 31 December 2013, the Company has borrowings with variable interest rates amounting to Euro
13.750.000 for the construction of new plant in Şekerpınar. Since such investment is evaluated to be a
qualifying asset, an important portion of the borrowing costs will not recognised under income
statement (2012: none).
e)
Credit risk management
Ownership of financial assets involves the risk that counterparties may be unable to meet the terms of
their agreements. Collection risk of the Company mainly derived from trade receivables. Trade
receivables are netted in balance sheet after provisions for doubtful receivables which are in line with
the Company policies and procedures.
The majority of the Company’s sales are made in domestic through distributors and wholesalers.
Approximately 53% of total sales are produced products. Trade goods are foreign originated.
Therefore, trade goods costs of the Company are bearing foreign exchange rate risk. Raw material
prices are dependent to general price movements in the country approximately. 95% of the total sales
of the Company are made in domestic market and price level is determined by the fluctuations in
foreign exchange rates.
The Company performs collection from distributors by checks. Since the drawers of these checks are
generally distributors, the risk is distributed. As a result of these procedures, the Company did not
incur any
significant
risk
for
receivables
collection.
48
31 December 2013
Maximum credit risk based on
financial instruments as of reporting date
Trade receivables
Related Party
Other
Other receivables
Related Party
Other
Bank
deposits
Derivatives
-
492.915
22.272.174
797.601
-
38.689.642
9.757.438
-
-
-
-
492.915
22.272.174
797.601
-
38.689.642
-
B. Carrying amount of financial assets whose term has been
renegotiated, otherwise past due or impaired
-
-
-
-
-
-
C. Net carrying amount of financial assets past due but not
impaired
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- Collateralized or secured with guarantees
part of maximum credit risk
A. Net book value of not due or
not impaired financial assets
- Under guarantee
D. Net carrying amount of financial assets impaired
- past due (gross carrying value)
- impaired (-)
- Net carrying amount of financial assets under guarantee
- not past due (gross carrying value)
- impaired (-)
-
521.037
(521.037)
-
-
-
-
-
-
-
-
-
-
-
-
-
E.
-
-
-
-
-
-
Off- balance sheet items which include credit risk
49
31 December 2012
Maximum credit risk based on
financial instruments as of reporting date
Trade receivables
Related Party
Other
Other receivables
Related Party
Other
Bank
deposits Derivatives
269.488
24.083.022
574.110
-
1.273.082
-
-
2.805.672
-
-
-
-
269.488
24.083.022
574.110
-
1.273.082
-
B. Carrying amount of financial assets whose term has been
renegotiated, otherwise past due or impaired
-
-
-
-
-
-
C. Net carrying amount of financial assets past due but not
impaired
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- Collateralized or secured with guarantees
part of maximum credit risk
A. Net book value of not due or
not impaired financial assets
- Under guarantee
D. Net carrying amount of financial assets impaired
E.
- past due (gross carrying value)
- impaired (-)
- not past due (gross carrying value)
- impaired (-)
Off- balance sheet items which include credit risk
-
503.414
(503.414)
-
-
-
50
NOTE 24 - FINANCIAL
(Continued)
INSTRUMENTS
AND
FINANCIAL
RISK
MANAGEMENT
Guarantees received from the customers by the Company are as follows:
31 December 2013
31 December 2012
8.164.856
770.000
720.144
78.000
24.438
1.525.000
820.000
436.234
24.438
9.757.438
2.805.672
Letter of guarantees
Mortgages
Guarantee notes
Pledge agreement
Guarantee cheques
f)
Liquidity risk management
The Company manages its liquidity risk by maintaining adequate reserves, banking facilities and
reserve borrowing facilities through a constant monitoring forecast and actual cash flows and
matching the maturity profile of the financial assets and liabilities.
Liquidity risk tables
Conservative liquidity risk management requires maintaining adequate reserves in addition to having
the ability to utilize adequate level of credit lines and funds as well as closing market positions.
Funding risk attributable to the current and future potential borrowing needs is managed by providing
continuous access to adequate number of creditors with high quality.
The following table details the Company’s expected maturity for its financial and other liabilities.
31 December 2013
Carrying
value
Total
contractual
cash outflow
Less than
3 months
Trade payables
Other payables
44.371.517
8.271.977
2.670.066
45.783.581
8.321.363
2.670.066
304.261
8.321.363
2.670.066
31 December 2012
Carrying
value
Total
contractual
cash outflow
Less than
3 months
3-12
months
Trade payables
Other payables
7.113.553
8.556.095
2.270.149
7.152.162
8.576.756
2.270.149
4.343.237
8.576.756
2.270.149
2.808.925
-
51
3-12
months
1-5
years
Over
5 years
8.318.987 37.160.332
-
1-5
years
-
Over
5 years
-
-
NOTE 25 - FINANCIAL INSTRUMENTS
The Company management believes that the carrying values of financial assets are reflecting the fair
values.
Objectives of Financial Risk Management:
Finding access to financial markets and managing financial risks arisen from operational activities of the
Company fall under the responsibility of the Company’s finance department. Aforementioned risks
include market risk (foreign exchange risk, interest rate risk and price risk). Financial risk covers market
risk (exchange rate risk, fair value of interest risk and price risk), credit risk liquidity risk and cash flow
risk.
The Company does not use forward foreign currency transaction agreements as a financial instrument.
No derivative financial instruments are held by the Company in order to minimize or hedge these risks.
The Company does not hold trading securities (including derivative financial instruments) or trade
financial instruments.
NOTE 26 - SUBSEQUENT EVENTS
Based on the desicion of Board of Directors dated 25 July 2011, the Company has participated to the
capital increase in LLC Faber-Castell Anadolu by its share (50%) amounting to Ruble 26.000.000 out of
total Ruble 52.000.000 on 21 January 2014.
52
53

Yünsa 30.06.2005

Transcrição

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