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.) 88 Çelebi Ground Handling Inc. 2021 Annual Report The movement table of borrowings from lease transactions between 1 January 2021 and 31 December 2021 is as follows: 2021 2020 Beginning of the period - 1 January 714.699.774 458.746.839 Celebi Nas beginning of the period (*) 399.928 - Additions 145.158.142 136.734.310 Interest expense 39.980.238 36.552.454 Lease payments (119.119.474) (70.424.046) Exchange differences and foreign currency translation differences 481.089.395 153.090.217 End of the period - 31 December 1.262.208.003 714.699.774 (*) It is related to the full consolidation of Celebi Nas. NOTE 8 - TRADE RECEIVABLES AND PAYABLES Short-term trade receivables 31 December 2021 31 December 2020 Trade receivables from third parties 459.371.597 216.660.285 Less: Provision for impairment (79.272.561) (53.241.619) Trade receivables from third parties (net) 380.099.036 163.418.666 Trade receivables from related parties (Note 31) 589.742 5.343.963 Total short-term trade receivables 380.688.778 168.762.629 The average collection period of trade receivables is 0-2 months, and they are classified as short-term trade receivables. The Group holds its trade receivables to collect the contractual cash flows and therefore measures at amortized cost using the effective interest method. Movements of provisions for doubtful receivables within accounting periods are as follows: 31 December 2021 31 December 2020 Opening balance 53.241.619 36.457.770 Foreign currency translation differences 19.179.732 1.293.422 Collections and provisions released (3.659.752) (2.656.075) Additional provisions in the current period 10.510.962 18.146.502 Closing balance 79.272.561 53.241.619