ÇHS AR21-ENG-030622

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ AND ITS SUBSIDIARIES (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) 98 Çelebi Ground Handling Inc. 2021 Annual Report Movements of provisions for other litigations and indemnities within the accounting period of 1 January - 31 December 2021 are as follows: 2021 2020 As of 1 January 8.094.479 6.782.526 Addition during the period 1.263.592 1.944.654 Payments during the period (1.818.923) (632.701) Foreign currency translation differences 1.508.002 - As of end of the period 9.047.150 8.094.479 Short-term provision for employee benefits 31 December 2021 31 December 2020 Provision for employee termination benefits (*) 35.091.091 14.124.394 Provision for unused vacation rights 18.976.928 11.490.497 54.068.019 25.614.891 (*) Consists of employee termination benefits of the outsourced employees of CASI, Celebi Delhi Cargo and Çelebi Cargo, the subsidiaries of the Group. b) Long-term provisions Long-term provision for employee benefits 31 December 2021 31 December 2020 Provision for employee terminatin benefits 45.879.138 34.788.905 45.879.138 34.788.905 Provision for employment termination benefits is recorded based on the explanations below. The Group does not have any other defined benefit plans except for the legally mandatory one explained below. The provision has been calculated by estimating the present value of the future probable obligation of the Group arising from the retirement of employees. Under the Turkish Labour Law, the Group is required to pay termination benefits to each employee who has completed one year of service, who achieves the retirement age (58 for women and 60 for men), who has charged 25 years of services (20 years for women) and whose employment is terminated without due cause, is called up for military service or who dies. Since the legislation was changed on 23 May 2002, there are certain transitional provisions relating to length of service prior to retirement. The amount payable as of 31 December 2021 consists of one month’s salary limited to a maximum of TL 8.284,51 (31 December 2020: TL 7.117,17) for each year of service. The liability is not funded, as there is no funding requirement. In accordance with local regulations in India, the Group is required to make employee termination benefit payments to each employee in its subsidiaries, joint ventures and associate, who has completed five year of service, who is called up for military service, who achieves the retirement age, who early retires, or who dies. Turkish Financial Reporting Standards require actuarial valuation methods to be developed to estimate the enterprise’s obligation under defined benefit plans. The principal assumption is that the maximum liability for each year of service will increase in line with inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the anticipated effects of future inflation.