Annual / Quarterly Financial Statement • May 21, 2024
Annual / Quarterly Financial Statement
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(ORIGINALLY ISSUED IN TURKISH)
| BALANCE SHEET | 1-2 |
|---|---|
| STATEMENTS OF PROFIT OR LOSS | 3 |
| STATEMENTS OF OTHER COMPREHENSIVE INCOME | 4 |
| STATEMENTS OF CHANGES IN EQUITY | 5 |
| STATEMENTS OF CASH FLOWS |
6 |
| NOTES TO THE FINANCIAL STATEMENTS |
7-42 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| Unaudited | Audited | ||
|---|---|---|---|
| Assets | Notes | 31 March 2024 | 31 December 2023 |
| Current assets | |||
| Cash and cash equivalences | 4 | 724,501 | 913,615 |
| Short term financial investments | 5 | 98,615 | 150,956 |
| Trade receivables | 206,529 | 136,298 | |
| - Receivables from related parties | 23 | 63,481 | 59,695 |
| - Receivables from third parties | 8 | 143,048 | 76,603 |
| Other receivables | 5,398 | 8,493 | |
| - Other receivables from third parties | 9 | 5,398 | 8,493 |
| Derivative financial assets inventories | 25.2 | 391 | - |
| Inventories | 10 | 662,025 | 708,334 |
| Prepaid expenses | 15 | 89,850 | 20,079 |
| Curent tax-related assets | 15 | 68,162 | 114,963 |
| Other current assets | 3 | 51,006 | |
| - Other current assets from third parties | 15 | 3 | 51,006 |
| Total current assets | 1,855,474 | 2,103,744 | |
| Non-current assets | |||
| Financial investments | 5 | 785 | 893 |
| Other receivables | - | 441 | |
| - Other receivables from third parties | 9 | - | 441 |
| Property, plant and equipment | 11 | 637,487 | 641,131 |
| Right of use assets | 7 | 138,494 | 155,084 |
| Intangible assets | 12 | 83,523 | 90,897 |
| Prepaid expenses | 15 | 10,834 | 7,631 |
| Deferred tax assets | 21 | 31,469 | 27,730 |
| Total non-current assets | 902,592 | 923,807 | |
| Total assets | 2,758,066 | 3,027,551 |
The financial statements for the financial period of 31 March 2024 were approved at the Board of Directors meeting dated 21 March 2024 and signed by General Manager Oğuz Uçanlar and Financial Affairs Director Yasemen Güven Çayırezmez on behalf of the Board of Directors.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| Unaudited 31 March 2024 |
Audited 31 December 2023 |
||
|---|---|---|---|
| Liabilities | Notes | ||
| Current liabilities | |||
| Short term borrowings | 7 | 830,581 | 897,385 |
| -Short-term borrowings from third parties | 830,581 | 897,385 | |
| - Bank loans | 370,124 | 351,542 | |
| - Issued debt instruments | 460,457 | 545,843 | |
| Short-term portion of long-term borrowings | 71,377 | 300,917 | |
| -Short term portion of long term borrowings from third parties | 7 | 71,377 | 300,917 |
| - Bank loans | 27,382 | 31,155 | |
| - Lease liabilities | 43,995 | 45,068 | |
| - Issued debt instruments | - | 224,694 | |
| Trade payables | 191,044 | 160,667 | |
| - Due to related parties | 23 | 12,263 | 7,661 |
| - Due to third parties | 8 | 178,781 | 153,006 |
| Employee benefit liabilities | 9 | 40,049 | 69,156 |
| Other payables | 5,790 | 456 | |
| - Due to third parties | 9 | 5,790 | 456 |
| Derivative instruments | 25.2 | - | 1,980 |
| Deferred income | 15 | 129,959 | 182,641 |
| 18,447 | 9,855 | ||
| Short term provision | 14 | ||
| - Provisions for employment benefits | 13 | 18,260 187 |
9,640 215 |
| - Other short-term provisions | |||
| Total current liabilities | 1,287,247 | 1,623,057 | |
| Non-current liabilities | |||
| Long term borrowings | 57,856 | 82,013 | |
| - Long term borrowings from third parties | 7 | 57,856 | 82,013 |
| - Bank loans | - | - | |
| - Lease liabilities | 57,856 | 82,013 | |
| Provision for employee benefits | 9 | 9,549 | 11,070 |
| Long term provision | 23,449 | 33,242 | |
| - Provisions for employment termination benefits | 14 | 23,449 | 33,242 |
| Total non-current liabilities | 90,854 | 126,325 | |
| Equity | |||
| Share capital | 16 | 23,625 | 23,625 |
| Adjustment to share capital | 16 | 436,315 | 436,315 |
| Other comprehensive expenses that will not | |||
| be reclassified to profit or loss | (7,632) | (15,934) | |
| - Losses on remeasurement of defined benefit obligations | (7,632) | (15,934) | |
| Other comprehensive expenses/(income) that will | 12,735 | 6,714 | |
| be reclassified to profit or loss | |||
| - Currency translation differences | - | (4,531) | |
| - Gains/(loss) on hedge Restricted reserves |
16 | 12,735 | 11,245 |
| 227,192 | 227,192 | ||
| Retained earnings | 16 | 600,257 | 98,617 |
| Net profit/(loss) for the period | 87,473 | 501,640 | |
| Total equity | 1,379,965 | 1,278,169 | |
| Total liabilities and equity | 2,758,066 | 3,027,551 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| Unaudited | |||||
|---|---|---|---|---|---|
| 1 January | 1 January | ||||
| Profit or loss | Notes | 31 March 2024 | 31 March 2023 | ||
| Revenue | 17 | 663,475 | 542,941 | ||
| Cost of sales (-) | 17 | (282,243) | (279,471) | ||
| Gross profit | 381,232 | 263,470 | |||
| General administrative expenses (-) | (81,260) | (61,211) | |||
| Marketing expenses (-) | (122,433) | (126,745) | |||
| Research and development expenses (-) | (3,041) | (4,330) | |||
| Other income from operating activities | 18 | 10,281 | 8,775 | ||
| Other expenses from operating activities (-) | 18 | (44,069) | (11,902) | ||
| Operating profit / (loss) | 140,710 | 68,057 | |||
| Income from investment activities | 19 | 60 | 4,735 | ||
| Expens from investment activities (-) | 19 | (4,647) | (281) | ||
| Operating profit before finance income / (expense) | 136,123 | 72,511 | |||
| Finance income | 20 | 88,835 | 45,310 | ||
| Finance expenses (-) | 20 | (152,203) | (118,523) | ||
| Monetary gain / (loss) | 44,127 | 119,416 | |||
| Profit/(Loss) before tax from continuing operations | 116,882 | 118,714 | |||
| Tax income from continuing operations | (29,409) | (32,776) | |||
| - Taxes on expense | 21 | (36,412) | (41,583) | ||
| - Deferred tax income / (expense) | 21 | 7,003 | 8,807 | ||
| Net profit /(loss) for the year | 87,473 | 85,938 | |||
| Profit /(loss) per share (1 TRY per share) | 22 | 3.7026 | 3.6376 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| Unaudited | |||||
|---|---|---|---|---|---|
| 1 January | 1 January | ||||
| Notes | 31 March 2024 | 31 March 2023 | |||
| Net profit /(loss) for the year | 87,473 | 85,938 | |||
| Other comprehensive income/expense | |||||
| Other comprehensive that will be not expenses reclassified |
8,302 | (4,698) | |||
| o f defined benefit Remeasurements - assets/liabilities |
1 4 | 11,069 | (5,441) | ||
| Other comprehensive expenses that will not b e reclassified to profit or loss, tax effect |
(2,767) | 743 | |||
| - Deferred tax income | (2,767) | 743 | |||
| Other comprehensive that will be expenses reclassified to profit or loss |
1,490 | 7,168 | |||
| Other comprehensive income / (expense) on - cash flow hedge |
|||||
| -Other Comprehensive (Loss) Cash Income o n Flow Hedge |
1,987 | 8,962 | |||
| -Other comprehensive that will b e expenses reclassified to profit or loss, tax effect |
(497) | (1,794) | |||
| - Deferred tax (expense)/income | (497) | (1,794) | |||
| Other comprehensive income /(expense) | 9,792 | 2,470 | |||
| Total comprehensive income | 97,265 | 88,408 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| Other comprehensive income (loss) that will not be reclassified in profit or loss |
Other comprehensive loss/(income) that will be reclassified in profit or loss |
Accumulated profits | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Share capital | Inflation adjustment to share capital |
Defined benefit plans revaluation and measurement(losses)/gains |
Currency translation differences |
Gains/(loss) on hedge |
Restricted reserves |
Retained earnings |
Net profit/(loss) for the period |
Total equity | |||
| Balances as of 1 January 2023 | 23,625 | 436,312 | (11,520) | (4,531) | 4,548 | 224,164 | 146,778 | (22,353) | 797,023 | ||
| Transfers | - | - | - | - | - | - | (22,353) | 22,353 | - | ||
| Total comprehensive loss | - | - | (4,698) | - | 7,168 | - | - | 85,938 | 88,407 | ||
| Balances as of 31 March 2023 | 23,625 | 436,312 | (16,218) | (4,531) | 11,715 | 224,164 | 124,425 | 85,938 | 885,430 | ||
| Share capital | Inflation adjustment to share capital |
Defined benefit plans revaluation and measurement(losses)/gains |
Currency translation differences |
Gains/(loss) on hedge |
Restricted reserves |
Retained earnings |
Net profit/(loss) for the period |
Total equity | |||
| Balances as of 1 January 2024 | 23,625 | 436,315 | (15,934) | (4,531) | 11,245 | 227,192 | 98,617 | 501,640 | 1,278,169 | ||
| Transfers | - | - | - | - | - | - | 501,640 | (501,640) | - | ||
| Subsidiary acquisition or disposal | - | - | - | 4,531 | - | - | - | - | 4,531 | ||
| Total comprehensive loss | - | - | 8,302 | - | 1,490 | - | - | 87,473 | 97,265 | ||
| Balances as of 31 March 2024 | - 23,625 |
- 436,315 |
- (7,632) |
- - |
- 12,735 |
- 227,192 |
- 600,257 |
- 87,473 |
1,379,965 |
(Amounts are expressed in thousands of Turkish lira ("TL") unless otherwise stated.)
| Unaudited | ||||
|---|---|---|---|---|
| Notes | 2024 | 2023 | ||
| Cash flow from operating activities | 118,395 | (35,195) | ||
| Net profit /(loss) for the period | 87,473 | 85,938 | ||
| Adjustments to reconcile net profit /(loss) for the period | 143,534 | (35,672) | ||
| Adjustments for depreciation and amortization expense | 11.12 | 34,784 | 34,242 | |
| Adjustments for provisions | 16,502 | 16,862 | ||
| -Adjustments for employment termination benefits | 18 | 16,502 | 17,029 | |
| - Adjustments for lawsuit and other provisions | - | (167) | ||
| Adjustments for interest income/expense | 108,462 | 84,526 | ||
| - Adjustments for interest income | 2 0 | (78,424) | (38,456) | |
| - Adjustments for interest expense | 2 0 | 152,151 | 113,699 | |
| - Rediscount on interest loss | 18 | 39,527 | 10,147 | |
| - Rediscount on interest income | 18 | (4,792) | (864) | |
| Adjustments for fair value gains | 1,458 | 585 | ||
| Adjustments for tax incomes | 21 | 29,409 | 32,776 | |
| Gain on sale of tangible and intangible assets | 4,587 | 166 | ||
| Monetary gain | (51,668) | (204,829) | ||
| Changes in working capital | 108,652 | (41,357) | ||
| Decrease/(increase) in trade receivables | (109,757) | (174,195) | ||
| Decrease/(increase) in other receivables | 7,109 | (2,155) | ||
| Increase/(decrease) in inventory | 46,309 | (197,697) | ||
| Decrease/(increase) in prepaid expenses | (72,975) | (77,914) | ||
| Increase/(decrease) in trade payables | 35,169 | 77,595 | ||
| Increase/(decrease) in employment termination benefits | (30,627) | 16,228 | ||
| Decrease/(increase) in other payables | 5,334 | (583) | ||
| Increase in deferred revenue | (52,681) | 305,507 | ||
| Decreases/increases in others | 280,771 | 11,857 | ||
| - Increase/(decrease) in other assets | 280,799 | 20,555 | ||
| - Increase/(decrease) in other liabilities | (28) | (8,698) | ||
| Cash used in operating activities | 339,659 | 8,910 | ||
| Employee termination benefits paid | 14 | (1,728) | (36,947) | |
| Tax paid | (219,536) | (7,158) | ||
| Cash flow from investing activities | (13,858) | (7,751) | ||
| Proceeds from sale of property, plant and equipment | (3,446) | 6,179 | ||
| Acquisition of property, plant and equipment and intangible assets | 11.12 | (10,412) | (13,930) | |
| Cash flow from financing activities | (176,599) | 269,823 | ||
| Proceeds from bank borrowings | 7 | 82,530 | 1,017,285 | |
| Repayment of borrowings | 7 | (193,757) | (544,963) | |
| Repayment of lease liabilities | (14,097) | (17,369) | ||
| Dividends paid | 16 | - | - | |
| Interest paid | 7 | (183,562) | (133,085) | |
| Interest received | 72,817 | 27,379 | ||
| Other cash inflow | 59,470 | (79,424) | ||
| Monetary gain/(lose) impact on cash and cash equivalents | (117,929) | (73,614) | ||
| Decrease /(increase) in cash and cash equivalents | (189,991) | 153,263 | ||
| Cash and cash equivalents at the beginning of the year | 4 | 899,853 | 551,445 | |
| Cash and cash equivalents at the end of the year | 4 | 709,862 | 704,708 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
Adel Kalemcilik Ticaret ve Sanayi A.Ş. ("Company") 's fields of activity are, respectively, the production of pencils, colored pencils, toys and other stationery equipment, the sale and export of finished products in the facilities, and importing all kinds of raw materials, semi-finished products and finished products, to buy and sell.
The company was established on 17 July 1967 and registered with the Istanbul Chamber of Industry (İSO) and the istanbul chamber of commerce (İTO) on the same date with the registration number 96078.
The registered address of the company's headquarters is as follows:
Fatih Sultan Mehmet Dist. Balkan St. No:58 Buyaka E Block 34771 Tepeüstü - Ümraniye/İstanbul
The Company is registered to the Capital Markets Board ("CMB") and its shares have been traded on Borsa Istanbul ("BIST") since 1996. As of 31 March 2024, the Company has 27.71% of its shares registered in the BIST. The shareholders holding the majority of the Company's shares and their share ratios are as follows:
| 56.89 |
|---|
| 15.40 |
| 27.71 |
100.00
(%)
The average number of employees of the Company as at 31 March 2024 is 348 (31 December 2023: 367).
As of 31 March 2024, the joint venture of the Company accounted for using the equity method and its shareholding ratios are as follows:
| Company name | Field of Activity | Country | 31 March 2024 (%) |
31 December 2023 (%) |
|---|---|---|---|---|
| All types of stationery | ||||
| LLC Faber-Castell Anadolu | buying and selling products Rusya | - | 50.00 |
LLC Faber-Castell Anatolia has terminated and closed the operation of the historical files of March 2024, which has been inactive since 2019.
LLC Faber-Castell Anadolu which is Moscow-based joint venture registered in the Russia on 13 September 2011 was established to import and export, trade and distribute all types of stationery and office supplies, painting equipment, hobby products and toys.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
The accompanying financial statements are prepared in accordance with the requirements of Capital Markets Board ("CMB") Communiqué Serial II, No: 14.1 "Basis of Financial Reporting in Capital Markets", which was published in the Official Gazette No:28676 on June 13, 2013. The accompanying financial statements are prepared based on the Turkish Accounting Standards and interpretations ("TAS") issued by the Public Oversight Accounting and Auditing Standards Authority ("POA") under Article 5 of the Communiqué.
The financial statements are presented in accordance with the 2022 TFRS Taxonomy, which was published in the Official Gazette dated 7 June 2019 and numbered 30794 by the POA and updated by the POA on 4 October 2022, based on the financial statement examples in the Financial Statement Examples and User Guide.
The Company's companies operating in Turkey submit their accounting records and legal financial statements in accordance with the principles and conditions issued by the Capital Markets Board (CMB), the provisions of the Turkish Commercial Code (TTK) and Tax Legislation, and the requirements of the Uniform Chart of Accounts published by the Ministry of Finance. It prepares Turkish Lira as. Subsidiaries and joint ventures operating abroad prepare their accounting records and legal financial statements in accordance with the laws and regulations of the country in which they operate.
The Company's financial statements as of 31 March 2024 were approved by the Company's Board of Directors on 21 March 2024. The Board is authorized to amend the financial statements.
The Company is based on the Turkish Commercial Code ("TCC"), tax legislation and the Uniform Chart of Accounts issued by the Ministry of Finance of the Republic of Turkiye in keeping its accounting records and preparing its statutory financial statements. Investments valued by the equity method in foreign countries, have prepared their statutory financial statements in accordance with the laws and regulations applicable in the countries in which they operate. Financial statements of company have been prepared in Turkish lira on the basis of historical cost, excluding financial assets and liabilities that are expressed at their fair values. The financial statements have been prepared by reflecting the necessary adjustments and classifications in order to make the correct presentation in accordance with TMS/TFRS to the legal records prepared on the historical cost basis.
The Company prepared its financial statements as at and for the year ended 31 December 2023 by applying TAS 29 "Financial Reporting in Hyperinflationary Economies" in accordance with the announcement made by POA on 23 November 2023 and the "Implementation Guide on Financial Reporting in High Inflation Economies". The standard requires that financial statements prepared in the currency of a hyperinflationary economy be expressed in terms of the purchasing power of that currency at the balance sheet date and that comparative figures for prior period financial statements be expressed in terms of the measuring unit current at the end of the reporting period. Accordingly, the Company has also presented its financial statements as of 31 December 2023 in terms of the purchasing power of that currency as of 31 March 2024.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
In accordance with the CMB's decision dated 28 December 2023 and numbered 81/1820, it has been decided that issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards will apply inflation accounting in accordance with TAS 29 standards, starting from their annual financial reports for the accounting periods ending as of 31 December 2023.
The adjustment made in accordance with TAS 29 were made using the correction coefficient obtained from the Consumer Price Index in Turkey ("CPI") published by the Turkish Statistical Institute ("TSI"). As of 31 March 2024, the indexes and index coefficients used in the correction of financial statements are as follows:
| Date | Index | Conversion Factor | Three-Year Cumilative Inflation |
|---|---|---|---|
| 31 March 2024 | 2,139.47 | 1.00000 | %211 |
| 31 December 2023 | 1,859.38 | 1.15064 | %268 |
| 31 March 2023 | 1,269.75 | 1.68495 | %152 |
The main elements of the Company's adjustment for financial reporting purposes in high-inflation economies are as follows:
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
A partnership is a joint venture in which entities with joint control in an arrangement have rights to the equity in the joint arrangement. Joint control is based on the control contract on an economic activity.
This control is deemed to exist when the decisions of the relevant activities require the parties sharing the control to agree with the unanimity of votes.
The results and assets and liabilities of associates or joint ventures are incorporated in these financial statements using the equity accounting method, except when the investment, or a portion thereof, is classified as held for sales, in which case it is accounted for in accordance with TFRS 5. Under the equity method, an investment in associate or a joint venture is initially recognized in the financial statement of financial position at cost and adjusted thereafter to recognize the Company's share of the porfit or loss and other comprehensive income of the associate or a joint venture.
When the Company's whare of losses of an associate or a joint venture exceeds the Company's interest in that associate or a joint venture (which includes any long term interests that, in substance, form part of the Company's net investment in the associate or a joint venture), the company discontinues recognizin its share of further losses. Additional losses are recognized only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate or a joint venture.
Comparative figures are reclassified, where necessary, to conform to changes in presentation in the current period financial statements and significant changes are explained. The financial statements of the Company include comparative financial information to enable the determination of the trends in the financial position and performance. The Company has prepared its financial position statement as of 31 March 2024 with the financial position statement prepared as of 31 December 2023; The profit or loss statement for the period 1 January- 31 March 2024, the profit or loss statement for the 1 January- 31 March 2023 accounting period, and the other comprehensive income statement for the 1 January- 31 Match 2024 accounting period, the 1 January- 31 March 2023 accounting period, other comprehensive income statement, cash flow statement for the accounting period 1 January- 31 March 2024 and statements of changes in shareholders' equity are prepared comparatively with the related financial statements for the accounting period 1 January - 31 March 2023.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
Explanations regarding the effects of the new TAS/TFRS on financial statements:
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
Changes in accounting policies or accounting errors are applied retrospectively and the financial statements of the comparative period are restated. If estimated changes in accounting policies are for only one period, changes are applied on the current year but if the estimated changes are for the following periods, changes are applied both on the current and following years prospectively. Except for the subject mentioned in "Comparative Information and Restatement of Prior Period Financial Statements", the Company has not identified any significant accounting error or estimated changes in accounting policies in the current year.
The nature and amount of a change in the accounting estimate that has an effect on the current period's operating result or is expected to have an effect on the following periods is disclosed in the footnotes of the financial statements, unless it is not possible to estimate the effect on future periods. There has been no change or error in the accounting estimates of the financial statements for the 31 March 2024 accounting period.
The financial statements of the joint venture operating in a foreign country have been prepared in accordance with the legislation in force in the country in which it operates and have been prepared by reflecting the necessary corrections and classifications in order to comply with the "Communiqué on the Principles of Financial Reporting in the Capital Markets".
The assets and liabilities of subsidiaries and joint ventures operating in foreign countries are translated at the rate of exchange ruling at the balance sheet date and the income statements of foreign subsidiaries and joint ventures are translated at average exchange rates. Differences that occur by the usage of closing and average exchange rates are followed under currency translation differences classified under equity.
The company organizes a sales campaign for certain products at the beginning of the year. Afterwards, distributor fairs are held within the scope of the sale of the products produced in the first period of the year. In these fairs, checks, DDS and credit cards are received against the order amounts of the customers, and most of the orders are shipped in the first half of the year.
Derivatives are recognized initially at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
Provision for doubtful receivables is recognized using expected credit losses as defined in TFRS 9. The allowance for doubtful receivables is calculated using expected credit losses and excluding dealers subject to the Direct Debit System, taking into account the Company's estimates for the future in addition to past experience.
Government incentives are not recognized unless there is a reasonable reason to believe that the Company fulfills the requirements of these incentives and that this incentive will be received. These incentives are recognized in revenues in the period to match the costs they are expected to cover. Income from government incentives is recognized as a deduction from an appropriate expense item.
Fields of activity of the Company established in Türkiye are, respectively, the production of wooden wall pencils, colored pencils, toy products and other stationery equipment, the sale and export of finished products in the facilities, and importing all kinds of raw materials, semi-finished products and finished products, to buy and sell.
The Company's field of activity, the nature and economic characteristics of the products, the production processes, the classification according to the risks of the customers and the methods used in the distribution of the products are similar. In addition, the organizational structure of the Company has been established in such a way that a single activity is managed instead of the Company being managed in separate divisions containing different activities. For these reasons, the Company's operations are considered as a single operating segment, and the Company's operating results, the determination of the resources to be allocated to these activities, and the examination of the performances of these activities are evaluated within this framework.
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Demand deposit | 19,686 | 162 |
| Time deposit | 687,584 896,569 |
|
| Other cash equivalents | 2,592 | 3,122 |
| Cash and cash equivalents in the statement of cash flows | 709,862 | 899,853 |
| Interest income accruals | 14,639 | 13,762 |
| Total | 724,501 | 913,615 |
The Company has no blocked deposits as of 31 March 2024 (31 December 2023: None).
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
As of 31 March 2024, the Company has allocated USD 2,818,199 equivalent of TL 90,987 from its bank deposits for the payments related to raw material and trade goods purchases to be made in the future periods in order to hedge against fluctuations in foreign exchange rates and the related amount has been subject to hedge accounting. (31 December 2023: USD 2,600,000 equivalent of TL 88,069)
| 31 March 2024 TL |
31 December 2023 TL |
|
|---|---|---|
| Short-term financial investment (*) | 98,615 | 150,956 |
| 98,615 | 150,956 |
(*) Opened by converting 1,000,0000, 1,000,000, 1.000.000 USD, with interest of 39,00%, 35,00%, 35,00%, respectively. The maturity dates of exchange rate protected deposit accounts are 15 April 2024, 8 May 2024, 15 May 2024.
| 31 March 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| % | TL | % | TL | |
| Ülkü Kırtasiye Ticaret ve Sanayi A.Ş. | 7.67 | 7 2 | 7.67 | 7 2 |
| Other long-term investments (*) | - | 713 | - | 821 |
| 785 | 893 |
(*) It is the amount of venture capital investment fund received by our company on a long-term basis, equal to 2% of the corporate tax incentive amount used, as it is an R&D center.
As of 31 March 2024 and 31 December 2023, the joint venture of the Company is as follows:
| 31 March 2024 | Pay (%) 31 December 2023 | Pay (%) | ||
|---|---|---|---|---|
| LLC Faber-Castell Anadolu | - | 50.00 | - | 50.00 |
| - | - | |||
| 31 March 2024 | Assets | Liabilities | Net sales | Profit/(loss) |
| Faber-Castell Anadolu LLC(*) | - | - | - | - |
| 31 December 2023 | Assets | Liabilities | Net sales | Profit/(loss) |
| Faber-Castell Anadolu LLC | 1,995 | 4,247 | - | (2,198) |
* As of March 2024, the liquidation process has been completed in accordance with Russian laws and the current situation, which has been inactive since 2019, has been terminated and closed.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| 31 March 2024 | Interest rate % | Balance | |
|---|---|---|---|
| Short term borrowings | |||
| TL loans | 38.5 - 49 | 370,124 | |
| Issued Debt Instruments (*) | 42.5 46 | 460,457 |
(*) The Company will sell to qualified investors without public offering, 150,000 TL with 364 days maturity, simple 42,50% fixed interest, single coupon payment at redemption dated 17.07.2024, 15.03.2024 with 364 days maturity, simple 46,00% fixed interest, redemption dated 13.09.2024, and there are debt instruments worth 260,000 TL with 2 coupon payments on 13.09.2024.
830,581
As of 31 March 2024, the interest accrual calculated for the Company's short-term loans is classified within the relevant short-term bank loans, and the interest accrual calculated for the issued debt instruments is classified within the issued debt instruments.
| 31 March 2024 | Interest rate % | Balance |
|---|---|---|
| Short-term portions of long-term borrowings | ||
| Short-term portions of long-term finance leases | 14.89 - 21.10 | 43,995 |
| Short-term portions of long-term loans | 12 - 17.32 | 27,382 |
| 71,377 |
As of 31 March 2024, the interest accrual calculated for the short-term parts of the Company's longterm borrowings is classified within the short-term parts of the relevant long-term borrowings.
| 31 March 2024 | Interest rate % | Balance |
|---|---|---|
| Long term borrowings | ||
| Long-term lease liabilities | 14.89 - 21.10 | 57,856 |
| 57,856 |
The details of the Company's short and long-term borrowings as of 31 December 2023 are as follows;
| 31 December 2023 | Interest rate % | Balance |
|---|---|---|
| Short term borrowings | ||
| TL loans | 17.64 - 49.87 | 351,542 |
| Issued debt instruments | 42.5 - 46 | 545,843 |
| 897,385 |
As of 31 December 2023, the interest accrual calculated for the Company's short-term loans is classified within the relevant short-term bank loans.
| 31 December 2023 | Interest rate % | Balance |
|---|---|---|
| Short-term portions of long-term borrowings | ||
| Short-term portions of long-term finance leases | 8.45 | 45,068 |
| Short-term portions of long-term loans | 12 - 17.32 | 31,155 |
| Short-term portions of long-term issued debt instruments | 32.50 | 224,694 |
| 300,917 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
As of 31 December 2023, the interest accrual calculated for the short-term parts of the Company's long-term borrowings is classified within the short-term parts of the relevant long-term borrowings.
| 31 December 2023 | Interest rate % | Balance |
|---|---|---|
| Long term borrowings | ||
| Long term lease liabilities | 14.89 - 21.10 | 82,013 |
| 82,013 |
As of 31 March 2024 and 31 December 2023, the maturity details of the Company's long-term loans and financial lease borrowings are given below.
| 31 March 2024 | Total |
|---|---|
| liabilities | |
| 1-2 years | 57,856 |
| 57,856 | |
| 31 December 2023 | Total |
| liabilities | |
| 1-2 years | 82,013 |
| 82,013 |
The movement table of bank loans is as follows:
| 2024 | 2023 | |
|---|---|---|
| 1January | 1,153,233 | 950,260 |
| Cash inflows from borrowing | 82,530 | 1,017,285 |
| Cash outflows related to debt payments | (193,757) | (544,963) |
| Interest expense | 147,007 | 110,157 |
| Interest paid | (183,562) | (133,085) |
| Inflation differences | (147,485) | (266,404) |
| 31 March | 857,966 | 1,133,250 |
The movement table of lease liabilities is as follows:
| 2024 | 2023 | |
|---|---|---|
| 1January | 127,082 | 59,014 |
| Cash inflow within the period | - | 40,428 |
| Cash outflows related to lease payments for the period | (14,097) | (17,369) |
| Interest expense | 5,144 | 3,543 |
| Interest paid | - | (2) |
| Foreign exchances gain/(loss) | - | (32) |
| Inflation differences | (16,278) | (1,768) |
| 31 March | 101,851 | 83,814 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
The movement table of the right-of-use assets of the Company as of 31 March 2024 and 31 December 2023 is given below.
| Right of use assets | Vehicles | Buildings | Total |
|---|---|---|---|
| As of 1 January 2024, | 32,191 | 122,893 | 155,084 |
| Disposal | (2,120) | - | (2,120) |
| Current depreciation expense (*) | (4,755) | (9,715) | (14,470) |
| As of 31 March 2024 | 25,316 | 113,178 | 138,494 |
(*) 82 TL of depreciation expenses are included in the cost of goods sold, 1,504 TL in general administrative expenses, and 12,884 TL in marketing, sales and distribution expenses.
| Right of use assets | Vehicles | Buildings | Total | |
|---|---|---|---|---|
| As of 1 January 2023, | 39,459 | 40,325 | 79,784 | |
| Additions | 10,852 | - | 10,852 | |
| Changes in contracts | - | 29,577 | 29,577 | |
| Current depreciation expense (*) | (4,882) | (8,738) | (13,620) | |
| As of 31 March 2023 | 45,428 | 61,164 | 106,593 |
(*) 143 TL of depreciation expenses are included in the cost of goods sold, 1,875 TL in general administrative expenses, and 11,602 TL in marketing, sales and distribution expenses.
As of 31 March 2024 and 31 December 2023, the Company's trade receivables are as follows:
| Trade Receivables | 31 March 2024 | 31 December 2023 |
|---|---|---|
| Trade receivables from related parties (Note 23) | 63,481 | 59,695 |
| Trade receivables from third parties | 143,048 | 76,603 |
| 206,529 | 136,298 | |
| Trade receivables from third parties | 31 March 2024 | 31 December 2023 |
| Cheques and notes receivables | 352 | 1,108 |
| Trade receivables | 193,608 | 87,092 |
| Rediscount | (44,534) | (4,258) |
| Provisions for doubtful trade receivables | (6,378) | (7,339) |
| 143,048 | 76,603 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
As of 31 March 2024 and 31 December 2023, the movement table for doubtful trade receivables is as follows:
| 2024 | 2023 | |
|---|---|---|
| 1 January | 7,339 | 11,103 |
| Inflation correction differences | (961) | (1,236) |
| 31 March | 6,378 | 9,867 |
| Trade payables | 31 March 2024 | 31 December 2023 |
| Trade payables to related parties (Note 23) | 12,263 | 7,661 |
| Trade payables to third parties | 178,781 | 153,006 |
| 191,044 | 160,667 | |
| Trade payables to third parties | 31 March 2024 | 31 December 2023 |
| Suppliers | 189,204 | 147,064 |
| Other trade payables | - | 12,873 |
| Rediscount (-) | (10,423) | (6,931) |
| 178,781 | 153,006 | |
| Other receivables | 31 March 2024 31 December 2023 | |
| Other receivables from third parties | 5,398 | 8,493 |
| 5,398 | 8,493 | |
| Other receivables from third parties | 31 March 2024 31 December 2023 | |
| Sublease receivables | 3,573 | 4,781 |
| Deposits and guarantees given | 318 | 1,310 |
| Receivables from employees | 1,380 | 2,110 |
| Other miscellaneous receivables | 127 | 292 |
| 5,398 | 8,493 | |
| Other long-term receivables | 31 March 2024 31 December 2023 | |
| Sublease receviables | - | 441 |
| - | 441 | |
| Other payables | 31 March 2024 31 December 2023 | |
| Other payables to third parties | 5,790 | 456 |
| 5,790 | 456 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| Other payables to third parties | 31 March 2024 31 December 2023 | |
|---|---|---|
| Taxes, fees and deductions payables | 4,900 | - |
| Other | 890 | 456 |
| 5,790 | 456 | |
| Employee benefit liabilities | 31 March 2024 31 December 2023 | |
| Social security premiums payable | 15,920 | 14,188 |
| Due to employees | 19,522 | 20,571 |
| Other withholding tax liabilities | 4,607 | 34,397 |
| 40,049 | 69,156 |
| 9,549 | 11,070 | |
|---|---|---|
| Due to employees | 9,549 | 11,070 |
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Raw materials | 271,440 | 214,462 |
| Semi-finished goods | 104,887 | 78,078 |
| Finished goods | 133,683 | 208,579 |
| Trade goods | 165,906 | 218,293 |
| Other inventories | 4,930 | 7,743 |
| Impairment of inventories (*) | (18,821) | (18,821) |
| 662,025 | 708,334 |
(*) As of 31 March 2024 and 2023, the movement table regarding the stock impairment provision allocated as a result of the evaluation regarding the recoverability of stocks is as follows:
| 2024 | 2023 | |
|---|---|---|
| 1 January | 18,821 | 15,519 |
| Provisions no longer required (-) | - | - |
| Addition | - | - |
| 18,821 | 15,519 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| Lands | Land improvements |
Buildings | Machinery and equipment |
Vehicles | Furniture and | Construction in progress |
Special | Total | |
|---|---|---|---|---|---|---|---|---|---|
| and buildings | fixtures | Costs | |||||||
| As of 1 January 2024, |
|||||||||
| Cost | 34,545 | 16,367 | 538,179 | 744,376 | 12,076 | 201,567 | - | 4,165 | 1,551,275 |
| Accumulated depreciation |
- | (14,812) | (98,295) | (604,810) | (12,047) | (178,476) | - | (1,704) | (910,144) |
| Net book value |
- 34,545 |
- 1,555 |
- 439,884 |
- 139,566 |
- 2 9 |
- 23,091 |
- - |
- 2,461 |
641,131 |
| Opening balance |
- 34,545 |
- 1,555 |
- 439,884 |
- 139,566 |
- 2 9 |
- 23,091 |
- - |
- 2,461 |
641,131 |
| Additions | - - |
- - |
- 2 |
- 2,297 |
- - |
- 2,282 |
- 5,830 |
- - |
10,411 |
| Disposal cost |
- | - | - | - | - | (2,419) | - | - | (2,419) |
| Disposal depreciation |
- | - | - | - | - | 1,304 | - | - | 1,304 |
| Transfers | - | - | - | - | - | - | - | - | - |
| Depreciation (*) |
- | (54) | (2,887) | (7,513) | (10) | (2,406) | - | (70) | (12,940) |
| Closing balance |
- 34,545 |
- 1,501 |
- 436,999 |
- 134,350 |
- 1 9 |
- 21,852 |
- 5,830 |
- 2,391 |
637,487 |
| of As 31 March 2024, |
- - |
- - |
- - |
- - |
- - |
- - |
- - |
- - |
|
| Cost | 34,545 | 16,367 | 538,181 | 746,673 | 12,076 | 201,430 | 5,830 | 4,165 | 1,559,267 |
| Accumulated depreciation |
- | (14,866) | (101,182) | (612,323) | (12,057) | (179,578) | - | (1,774) | (921,780) |
| Net book value |
- 34,545 |
- 1,501 |
- 436,999 |
- 134,350 |
- 1 9 |
- 21,852 |
- 5,830 |
- 2,391 |
637,487 |
(*) 10,081 TL of depreciation expenses are included in the cost of goods sold, 290 TL in general administrative expenses, 266 TL in research and development expenses and 2,303 TL in marketing, sales and distribution expenses.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| Lands | Land improvements and buildings |
Buildings | Machinery and equipment |
Vehicles | Furniture and fixtures |
Construction in progress |
Special Costs |
Total | |
|---|---|---|---|---|---|---|---|---|---|
| As of 1 January 2023, |
|||||||||
| Cost | 34,545 | 16,367 | 535,752 | 736,748 | 12,076 | 211,457 | 40,364 | 1,722 | 1,589,031 |
| Accumulated depreciation |
- | (13,232) | (86,307) | (572,750) | (11,943) | (183,660) | - | (1,544) | (869,436) |
| Net book value |
- 34,545 |
- 3,135 |
- 449,445 |
- 163,998 |
- 133 |
- 27,797 |
- 40,364 |
- 178 |
719,595 |
| Opening balance |
- 34,545 |
- 3,135 |
- 449,445 |
- 163,998 |
- 133 |
- 27,797 |
- 40,364 |
- 178 |
719,595 |
| Additions | - - |
- - |
- 164 |
- 2,903 |
- - |
- 3,359 |
- 6,275 |
- 1,228 |
13,929 |
| Disposal cost |
- | - | - | - | - | (19,031) | - | - | (19,031) |
| Disposal depreciation |
- | - | - | - | - | 12,686 | - | - | 12,686 |
| Transfers | - | - | - | - | - | - | - | - | - |
| Depreciation (*) |
- | (865) | (3,647) | (8,621) | (70) | (2,538) | - | (17) | (15,758) |
| Closing balance |
- 34,545 |
- 2,270 |
- 445,962 |
- 158,280 |
- 6 3 |
- 22,273 |
- 46,639 |
- 1,389 |
- 711,421 |
| As of 31 March 2023, |
|||||||||
| Cost | 34,545 | 16,367 | 535,916 | 739,651 | 12,076 | 195,785 | 46,639 | 2,950 | 1,583,929 |
| Accumulated depreciation |
- | (14,097) | (89,954) | (581,371) | (12,013) | (173,512) | - | (1,561) | (872,508) |
| Net book value |
- 34,545 |
- 2,270 |
- 445,962 |
- 158,280 |
- 6 3 |
- 22,273 |
- 46,639 |
- 1,389 |
- 711,421 |
(*) 12,443 TL of depreciation expenses is included in the cost of goods sold, 591 TL is included in general administrative expenses, 269 TL is included in research and development expenses, and 2,455 TL is included in marketing, sales and distribution expenses.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
Intangible assets include computer software, rights and development costs.
| License | Other intangible | ||||
|---|---|---|---|---|---|
| Rights | Developments | agreements | assets | Total | |
| As of 1 January 2024, | |||||
| Cost | 2,558 | 68,671 | 182,562 | 15,084 | 268,875 |
| Accumulated amortizations | (2,249) | (10,875) | (152,475) | (12,379) | (177,978) |
| - | - | - | - | ||
| Net book value | 309 | 57,796 | 30,087 | 2,705 | 90,897 |
| - | - | - | - | ||
| Opening balance | 309 | 57,796 | 30,087 | 2,705 | 90,897 |
| Additions | - | - | - | - | - |
| Transfers | - | - | - | - | - |
| Depreciation (*) | (34) - |
(3,312) - |
(4,028) - |
- - |
(7,374) |
| Dönem sonu | 275 | 54,484 | 26,059 | 2,705 | 83,523 |
| As of 31 March 2024, | - | - | - | - | |
| Cost | 2,558 | 68,671 | 182,562 | 15,084 | 268,875 |
| Accumulated amortizations | (2,283) - |
(14,187) | (156,503) | (12,379) - |
(185,352) |
| Net book value | 275 | - 54,484 |
- 26,059 |
2,705 | 83,523 |
(*) For the current period, amortization shares include 2,273 TL in the cost of goods sold, 376 TL in general administrative expenses, 1,074 TL in research and development expenses and 3,651 TL in marketing, sales and distribution expenses, has been made.
| Rights | Developments | License Other intangible |
Total | ||
|---|---|---|---|---|---|
| agreements | assets | ||||
| As of 1 January 2023, | |||||
| Cost | 2,286 | 17,167 | 174,644 | 15,084 | 209,181 |
| Accumulated amortizations | (2,048) | (6,236) | (138,885) | (8,297) | (155,466) |
| - | - | - | - | ||
| Net book value | 238 | 10,931 | 35,759 | 6,787 | 53,715 |
| - | - | - | - | ||
| Opening balance | 238 | 10,931 | 35,759 | 6,787 | 53,715 |
| Additions | |||||
| - | - | - | - | - | |
| Transfers Depreciation (*) |
- (47) |
- (1,194) |
- (3,624) |
- | - (4,865) |
| - | - | ||||
| Dönem sonu | 191 | - 9,737 |
- 32,135 |
- 6,787 |
48,850 |
| As of 31 March 2023, | - | - | - | - | |
| Cost | 2,286 | 17,167 | 174,644 | 15,084 | 209,181 |
| Accumulated amortizations | (2,095) | (7,430) | (142,509) | (8,297) | (160,331) |
| - | - | - | - | ||
| Net book value | 191 | 9,737 | 32,135 | 6,787 | 48,850 |
(*) For the current period, amortization shares include 622 TL in the cost of goods sold, 646 TL in general administrative expenses, 705 TL in research and development expenses, and 2,892 TL in marketing, sales and distribution expenses, has been made.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Provisions for lawsuits | 187 | 215 |
| 187 | 215 |
9 employees of the Company have filed 7 lawsuits against the Company for the cancellation of their employment contracts, reinstatement and other compensation claims and a provision for lawsuits amounting to TL 187 has been set aside as a result of the evaluations of the lawyers in relation to the related lawsuits.
| As of 1 January, | 2024 216 |
2023 1,501 |
|---|---|---|
| Provisions no longer required (-) | - | (167) |
| Inflation difference | (29) | - |
| As of 31 March, | 187 | 1,334 |
After Adel Kalemcilik Ticaret ve Sanayi A.Ş. could not collect its receivable of 60 TL arising from its current account relationship with its customer, Istanbul 18th Enforcement Directorate file number 2012/20785E and 2012/18797E and Kartal 1st Enforcement Directorate file number 2012/6142E. Enforcement proceedings were carried out with and the sale of the seized real estate was requested on 7 October 2013. The valuation report has been notified and the real estate sales process continues.
2014/14137E, 2014/15246E, 2014/16896E, filed under Izmir 2, 8, 10 and 14th Enforcement Directorate, as a result Adel Kalemcilik Ticaret ve Sanayi A.Ş.'s inability to collect its receivable of 594 TL arising from its current account relationship with its customer and 2015/574E, enforcement proceedings were initiated against the debtor company, and a payment order notification was issued against the debtor company, by proceeding with the main proceeding through a lien specific to bills of exchange. Investigations continue for the purpose of collecting the receivable.
There are commercial lawsuits filed against Adel Kalemcilik Ticaret ve Sanayi A.Ş. by the employees of the two subcontractors, whose contracts the Company terminated as of 31 August 2013, due to their failure to fulfill their legal obligations towards their employees, within the framework of the principles of joint and several liability. Provision has been made as of 31 March 2024. The company has objected to the enforcement proceedings in question and the proceedings are continuing.
Following the failure of Adel Kalemcilik Ticaret ve Sanayi A.Ş. to collect its receivables arising from its current account relationship with its customer, a lawsuit was filed with the file number 2016/12354 E (New Basis: 2021/14645 E.) filed within the Istanbul Anatolian 17th Enforcement Directorate. Provision has been made for the amount. Main proceedings have been initiated and the assets recorded on the debtor have been inquired about. There are no assets registered in the name of the debtor, investigations are continuing to collect the receivable.
Following the inability of Adel Kalemcilik Ticaret ve Sanayi A.Ş. to collect due to its current account relationship with its customer, a receivable was recorded in the bankruptcy estate with the file number 2017/32 at Istanbul Anadolu 3rd Bankruptcy Directorate. A provision has been made for the said amount.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| Deposits and guarantees given | 31 March 2024 | 31 December 2023 |
|---|---|---|
| Letters of credit | 109,241 | 140,247 |
| Guarantees letter | 23,039 | 35,281 |
As of 31 March 2024 and 31 December 2023, the tables regarding the Company's collateral/pledge/mortgage ("CPM") position are as follows:
| Letter of guarantees, pledge and mortgages provided by the Company | TL equivalents | TL |
|---|---|---|
| A. Total amount of GPMs given on behalf of the Company's legal personality | 109,241 | 109,241 |
| Total amount of GPMs given in favor of subsidiaries included in full |
||
| B. consolidation |
- | - |
| Total amount of GPMs given by the Company for the liabilities of 3rd parties | ||
| C. in |
- | - |
| order to run ordinary course of business | ||
| D. Total amount of other GPM's | - | - |
| i. Total amount of GPMs given in favor of the parent Company | - | - |
| ii. Total amount of GPMs given in favor of other group companies not in the | ||
| scope | - | - |
| of B and C above | ||
| iii. Total amount of GPMs given in favor of third party companies not in the | ||
| scope of C above | - | - |
| 109,241 | 109,241 |
| Letter of guarantees, pledge and mortgages provided by the Company | TL equivalents | TL | |
|---|---|---|---|
| A. Total amount of GPMs given on behalf of the Company's legal personality | 140,247 | 140,247 | |
| B. | Total amount of GPMs given in favor of subsidiaries included in full |
||
| consolidation | - | - | |
| C. Total amount of GPMs given by the Company for the liabilities of 3rd parties | |||
| in | - | - | |
| order to run ordinary course of business | |||
| D. Total amount of other GPM's | - | - | |
| i. Total amount of GPMs given in favor of the parent Company | - | - | |
| ii. Total amount of GPMs given in favor of other group companies not in the | |||
| scope | - | - | |
| of B and C above | |||
| iii. Total amount of GPMs given in favor of third party companies not in the | |||
| scope of C above | - | - | |
| 140,247 | 140,247 |
The ratio of other CPMs given by the Company to the Company's equity capital is 0% as of 31 March 2024 (31 December 2023: 0%).
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| Short term employee benefits | 31 March 2024 | 31 December 2023 |
|---|---|---|
| Premium accruals | 12,206 | 6,677 |
| Provisions for unused vacations | 6,054 | 2,963 |
| 18,260 | 9,640 | |
| Long term employee benefits | 31 March 2024 | 31 December 2023 |
| Provisons for employee termination benefits | - 23,449 |
- 33,242 |
| 23,449 | 33,242 |
The movement table of unused vacation accruals as of 31 March 2024 and 2023 is as follows:
| 2024 | 2023 | |
|---|---|---|
| As of 1 January, | 2,963 | 1,765 |
| Addition | 4,521 | 6,583 |
| Charge for the period | (1,043) | (1,360) |
| Inflation Difference | (387) | (196) |
| As of 31 March, | 6,054 | 6,792 |
In accordance with the provisions of the Labor Law in force, there is an obligation to pay the legal severance pay to employees whose employment contract has ended so that they are entitled to severance pay. In addition, in accordance with the legislation currently in force, there is an obligation to pay the legal severance pay to those who have the right to leave the job by receiving severance pay. As of 1 January 2024, the severance pay to be paid is subject to a monthly ceiling of 35,058.58 full TL (1 January 2023: 19,982.83 TL). Severance pay liability is not legally subject to any funding. Severance pay liability is calculated based on the estimation of the present value of the company's possible future liability arising from the retirement of employees. TAS 19 ("Employee Benefits") requires the company to develop its liabilities within the scope of defined monthly plans using actuarial valuation methods. Accordingly, the actuarial assumptions used in calculating total liabilities are stated below:
Severance pay liability is not legally subject to any funding. The severance pay provision is calculated by estimating the present value of the future probable obligation of the company arising from the retirement of its employees. TAS 19 ("Employee Benefits") requires the company's liabilities to be developed using actuarial valuation methods within the scope of defined benefit plans. Accordingly, the actuarial assumptions used in the calculation of total liabilities are as follows:
The main assumption is that the maximum liability for each year of service increases in line with inflation. Therefore, the discount rate applied represents the expected real rate after adjusting for the effects of future inflation. As of 31 March 2024 and 31 December 2023, provisions in the attached financial statements are calculated by estimating the present value of the possible future liability arising from the retirement of employees.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| NOTE 14 - Employee benefits (Continued) |
||
|---|---|---|
| 2024 | 2023 | |
| As of 1 January, | 33,242 | 71,930 |
| Service cost | 6,446 | 5,440 |
| Severance pay paid | (685) | (35,586) |
| Actuarial losses | (11,069) | 5,441 |
| Inflation difference | (4,485) | (8,841) |
| 31 March 2023 | 23,449 | 38,384 |
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Discount rate (%) | 2.72 | 1.72 |
| Turnover rate used in retirement probability calculation (%) | 92.38 | 92.60 |
| Short-term prepaid expenses | 31 March 2024 | 31 December 2023 |
|---|---|---|
| Advances given | 80,267 | 9,886 |
| Prepaid expenses for the next months | 9,583 | 10,193 |
| 89,850 | 20,079 | |
| Current tax assets | 31 March 2024 | 31 December 2023 |
| Prepaid taxes and funds | 68,162 | 114,963 |
| 68,162 | 114,963 | |
| Other current assets | 31 March 2024 | 31 December 2023 |
| Deffered VAT | - | 50,959 |
| Work advance | - | 1 2 |
| Advances to personnel | - | 2 9 |
| Other miscellaneous current assets | 3 | 6 |
| 3 | 51,006 | |
| Long-term prepaid expenses | 31 March 2024 | 31 December 2023 |
| Prepaid expenses for future years | 10,834 | 7,631 |
| 10,834 | 7,631 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| Deffered income | 31 March 2024 | 31 December 2023 |
|---|---|---|
| Advances received | 129,959 | 177,442 |
| Short-term deferred income | - | 5,199 |
| 129,959 | 182,641 |
The shareholders of the Company and their shares in the capital are given below.
| 31 March 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| % Share | Balance | % Share | Balance | |
| AG Anadolu Grubu Holding A.Ş. | 56.89 | 13,439 | 56.89 | 13,439 |
| Faber - Castell Aktiengesellschaft | 15.4 | 3,638 | 15.4 | 3,638 |
| Shares publicly held | 27.71 | 6,548 | 27.71 | 6,548 |
| Paid in capital | 100.00 | 23,625 | 100.00 | 23,625 |
| Inflation adjustment to share capital | 436,315 | 436,315 | ||
| Total capital | 459,940 | 459,940 |
Capital adjustment differences express the effect of realigning cash additions to paid-in capital with year-end purchasing power.
The Company has 3,637,941 registered shares amounting to TL 3,638 and 19,987,059 registered shares amounting to TL 19,987 in accordance with the Foreign Capital Legislation. There are no privileges granted to shareholders in the election of the board of directors.
According to the Turkish Commercial Code, legal reserves are divided into two: first and second legal reserves. According to the Turkish Commercial Code, the first legal reserves are allocated as 5% of the legal net profit until 20% of the company's paid capital is reached. The second set of legal reserves is 10% of the distributed profit exceeding 5% of the paid capital. According to the Turkish Commercial Code, as long as legal reserves do not exceed 50% of the paid-in capital, they can only be used to offset losses and cannot be used in any other way. As a result of the sale of the company's real estate and participation shares, which are evaluated within the scope of Article 5/e of the Corporate Tax Law No. 5520, 75% of the sales profit is classified as "Profit from the sale of real estate and participation shares".
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Legal reserves | 222,937 | 222,937 |
| Real estate and subsidiary shares sales profit | 3,355 | 3,355 |
| R&D investment fund | 900 | 900 |
| 227,192 | 227,192 |
Publicly listed companies distribute dividends in accordance with the requirements of CMB as explained below:
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Extraordinary reserves | 95,586 | 109,978 |
| Other retained earnigs /(loss) | 504,671 | (11,361) |
| 600,257 | 98,617 |
As of 31 March 2024 and 2023, the fund items included in shareholders' equity in the financial statements prepared in accordance with the Tax Procedure Law are as follows.
| 31 Mart 2024 | |||
|---|---|---|---|
| Retained Earnings | CPI Adjusted Statuary Entrys |
PPI Adjusted Statuary Entrys |
Followed ammount of |
| Adjustments to share capital | 517,253 | 436,315 | 80,938 |
| Reserves on retained erning | 293,419 | 227,192 | 66,227 |
In accordance with the CMB decision numbered 7/242 dated 25 February 2005; If the profit distribution amount calculated in accordance with the CMB's regulations regarding the minimum profit distribution obligation, based on the net distributable profit found in accordance with the CMB regulations, can be fully covered from the distributable profit in the legal records, this entire amount will be distributed, and if not, the entire net distributable profit in the legal records will be distributed. If there is a period loss in the financial statements prepared in accordance with CMB regulations or in any of the legal records, no profit distribution will be made. With the decision of the CMB dated 27 January 2010, it was decided not to impose any minimum profit distribution obligation on dividend distribution for publicly held joint stock companies whose shares are traded on the stock exchange.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
Capital increase, free of charge, capital inflation adjustment differences and registered values of extraordinary reserves; It can be used for cash profit distribution or loss offset. However, equity inflation adjustment differences are subject to corporate tax if used in cash profit distribution.
The company management took the profit distribution decision at the general meeting. In case of distribution of these profits, the entire profit distribution amount will be covered from the distributable profit in the legal records.
At the Ordinary General Assembly meeting held on April 16, 2024, it was decided to distribute a net period profit of 150,002 full TL as a dividend from the Company's 2023 operating year according to the Profit Distribution Table prepared within the scope of the Capital Markets Board Dividend Guide. It was decided to distribute the gross dividend to full taxpayer institutions at a rate of 634.93%, which is 6.3493 full TL for each share with a nominal value of 1 full TL, and at a net rate of 571.44%, which is 5.7144 full TL for each share with a nominal value of 1 full TL. Dividend payments will be made on September 26, 2024.
| 1 January 31 March 2024 |
1 January 31 March 2023 |
|
|---|---|---|
| Domestic sales | 934,978 | 649,680 |
| Foreign sales | 37,238 | 25,892 |
| Sales discounts (-) | (308,741) | (132,631) |
| Net sales | 663,475 | 542,941 |
| Cost of sales (-) | (282,243) | (279,471) |
| Gross profit | 381,232 | 263,470 |
The breakdown of the cost of sales by periods is as follows:
| 1 January | 1 January | |
|---|---|---|
| 31 March 2024 | 31 March 2023 | |
| Direct material cost | 72,452 | 226,780 |
| Direct labour costs | 51,248 | 70,594 |
| General production expenses | 24,602 | 23,808 |
| Depreciation and amortization expenses | 12,436 | 3,683 |
| Change in semi-finished goods | (26,809) | (29,538) |
| Change in finished goods | 74,896 | (85,774) |
| Cost of products sold | 208,825 | 209,553 |
| Cost of goods sold | 73,418 | 69,918 |
| Cost of sales | 282,243 | 279,471 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| 1 January 31 March 2024 |
1 January 31 March 2023 |
|
|---|---|---|
| Other income from main operations | ||
| Currency translation income | 4,379 | 2,368 |
| Rediscount interes gains | 4,792 | 864 |
| Other | 1,110 | 5,543 |
| 10,281 | 8,775 | |
| 1 January 31 March 2024 |
1 January 31 March 2023 |
|
| Other expenses from main operations | ||
| Rediscount interes loss | 39,527 | 10,147 |
| Currency translation expense | 4,054 | 1,103 |
| Other | 488 | 652 |
| 44,069 | 11,902 |
| 1 January 31 March 2024 |
1 January 31 March 2023 |
|
|---|---|---|
| Income from investment activities | ||
| Gain on sale of investment funds | 4 0 | 4,619 |
| Profit on sale of other property, plant and equipment, net | 2 0 | 116 |
| 6 0 | 4,735 | |
| 1 January 31 March 2024 |
1 January 31 March 2023 |
|
| Expenses from investment activities | ||
| Loss on sale of other property, plant and equipment (-) | (119) | (281) |
| Closing expense for joint venture | ||
| (4,528) | - |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| Finance income | 1 January 31 March 2024 |
1 January 31 March 2023 |
|---|---|---|
| Foreign exchange income | 10,411 | 6,852 |
| Interest income | 71,089 | 33,167 |
| Interest income from sublease | 203 | - |
| Income on currency-protected interest | 7,132 | 5,291 |
| 88,835 | 45,310 | |
| Finance expenses | 1 January 31 March 2024 |
1 January 31 March 2023 |
| Interest expenses | 152,151 | 113,700 |
| Foreign exchange expenses | 52 | 4,823 |
| 152,203 | 118,523 |
The company is subject to taxation within the scope of the tax laws and other legislation of the countries in which it operates.
In Turkey, the corporate tax rate is 25%. The corporate tax return must be declared by the evening of the twenty-fifth day of the fourth month following period. It must be paid in one piece by the end of this month. In accordance with the tax legislation, provisional tax is calculated and paid at the corporate tax rate on the earnings generated quarterly, and the amounts paid in this way are offset from the tax calculated on annual earnings.
In accordance with the tax legislation in Turkey, financial losses can be carried forward for a maximum of five years following the year in which they occurred. In addition, tax declarations and relevant accounting records can be examined by the tax administration within five years.
| 1 January | 1 January | |
|---|---|---|
| 31 March 2024 | 31 March 2023 | |
| Current period statutory tax provision (-) | (36,412) | (41,583) |
| Deferred tax income | 7,003 | 8,807 |
| Total deferred tax income, net | (29,409) | (32,776) |
The reconciliation of the period tax expense with the profit for the period is as follows:
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Period income tax provision | (36,412) | (153,600) |
| Prepaid tax expenses (-) | 104,574 | 268,563 |
| Profit for the period tax (liability)/receivable, net | 68,162 | 114,963 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
The profits obtained by the Company from its investments subject to incentive certificates are subject to corporate tax at reduced rates, starting from the accounting period in which the investment is partially or fully operated, until it reaches the contribution amount to the investment.
Within the scope of the Company's incentive certificates, there is no reduced corporate tax advantage used against the current period legal tax. (31 December 2023: None )
The company capitalizes its R&D expenditures within the scope of Law No. 5746 in its legal books. According to the provisions of the same law, by calculating the R&D expenditures made by the Company within the framework of the relevant legislation, it benefits from the R&D discount for the part of the R&D expenditures allowed by law.
As of 31 March 2024, the Company used an R&D discount advantage of 1,196 TL (31 March 2023: 959 TL) in return for legal tax.
| Total temprorary differences | Deferred tax | |||
|---|---|---|---|---|
| 31 March 2024 | 31 December 2023 | 31 March 2024 | 31 December 2023 | |
| Tangible and intangible assets | (10,401) | 126,044 | (2,600) | 31,511 |
| Provisions for employee termination benefits | 23,449 | 41,153 | 5,862 | 10,288 |
| Provisions for subsidiary premium | 137,240 | - | 34,310 | - |
| Provision for loyalty | 10,434 | - | 2,609 | - |
| Provision for decrease in value of inventories | 18,820 | (72,420) | 4,705 | (18,105) |
| Incentive premium accurals | 13,846 | 27,032 | 3,462 | 6,758 |
| Lease services | (40,226) | (33,295) | (10,057) | (8,324) |
| Other adjustment | (27,281) | 22,422 | (6,822) | 5,602 |
| Deferred tax receviable/(liability) | 125,881 | 110,936 | 31,469 | 27,730 |
| 2024 | 2023 | |||
| 1 January | 27,730 | (117,907) | ||
| Profit /(loss) for the period | 7,003 | 8,807 | ||
| Severance pay accounted under equity | (2,768) | 743 | ||
| Impact of derivative financial instruments | (496) | (1,794) | ||
| 31 March 2024 | 31,469 | (110,151) |
Earnings per share is calculated by dividing the profit for the period by the weighted average number of shares of the Company during the period. The Company's earnings per share calculation is as follows.
| 1 January | 1 January | |
|---|---|---|
| 31 March 2024 | 31 March 2023 | |
| Profit /(loss) for the period | 87,473 | 85,938 |
| Average number of shares | ||
| (1-TL nominal value | ||
| weighted average number of shares) | 23,625,000 | 23,625,000 |
| Earnings per share /(loss) (Full TL) | 3.7026 | 3.6376 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| Receivables from related parties | ||
|---|---|---|
| 31 March 2024 | 31 December 2023 | |
| A.W.Faber Castell (M) (3) | 20,559 | - |
| A.W.Faber-Castell(Guangzhou) (3) | 13,628 | - |
| A.W.Faber-Castell Vertrieb GmbH (3) | 3,224 | 5,486 |
| Migros Ticaret A.Ş. (3) | 24,521 | 52,480 |
| Aep Anadolu Etap Penkon (3) | 1,123 | 2,939 |
| Other | 2,128 | 2,250 |
| 65,183 | 63,155 | |
| Less: Rediscount on receivables/ payables (-) | (1,702) | (3,460) |
| 63,481 | 59,695 |
| Payable to related parties | ||
|---|---|---|
| 31 March 2024 | 31 December 2023 | |
| AG Anadolu Grubu Holding A.Ş. (1) | 4,961 | 8,003 |
| AEH Sigorta Acentalığı A.Ş. (3) | 7,995 | 5 |
| Other | 1 9 | 2 2 |
| 12,975 | 8,029 | |
| Less: Rediscount on receivables/ payables (-) | (712) | (368) |
| 12,263 | 7,661 |
1) Partners
2) Joint ventures
3) Other companies managed by the partner
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| 1 January | 1 Ocak - | |
|---|---|---|
| 31 March 2024 | 31 March 2023 | |
| Product purchase | ||
| A.W.Faber-Castell Vertrieb GmbH (3) | 2,949 | 3,208 |
| A.W. Faber-Castell (Guangzhou) Stationery Co. Ltd. (3) | - | 10,180 |
| A.W.Faber Castell (M) Sdn.Bhd. (3) | - | 14,276 |
| P.T.A.W.Faber Castell Ind. (3) | 4,899 | - |
| Pt. Pencıl Lead Indonesıa (3) | - | 5,021 |
| Other | - | 1,199 |
| 7,848 | 33,884 | |
| 1 January | 1 Ocak - | |
| 31 March 2024 | 31 March 2023 | |
| Product sales | ||
| Migros Ticaret A.Ş. (3) | 60 | 15,977 |
| A.W.Faber-Castell Vertrieb GmbH (3) | 1,590 | 3,245 |
| A.W.Faber Castell Brezilya S.A.(3) | 711 | 393 |
| Other | 55 | 45 |
| 2,416 | 19,660 | |
| 1 January | 1 Ocak - | |
| 31 March 2024 | 31 March 2023 | |
| Services received | ||
| AG Anadolu Grubu Holding A.Ş. (1) | 11,767 | 8,202 |
| Migros Ticaret A.Ş. (3) | 111 | 263 |
| Other | 6 | 75 |
| 11,884 | 8,540 | |
| 1 January | 1 Ocak - | |
| 31 March 2024 | 31 March 2023 | |
| Services given | ||
| AG Anadolu Grubu Holding A.Ş. (1) | - | 1,363 |
| Anadolu Kafkasya Enerjı Yatırımları A.Ş. (3) | 769 | 577 |
| AEP Anadolu Etap Penkon Gıda ve Tarım Ürün San ve Tic A.Ş (3) | 3,077 | 1,732 |
| Other | 258 | 172 |
| 4,104 | 3,844 |
1) Partners, 2) Joint Ventures 3) Other companies managed by the partner
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
Key management personnel consist of the Head of the Agriculture, Energy and Industry Group, the General Manager and the managers who report directly to the General Manager. Benefits for senior executives are as follows:
| 2024 | 2023 | |
|---|---|---|
| Short-term employee benefits | 21,121 | 24,303 |
| Other long-term benefits | 623 | 717 |
| 21,744 | 25,020 |
The Company manages its capital to ensure that it will maintain its status as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance, The capital structure of the Company consists of debt, which includes the borrowings and other debts, cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings.
The management of the Company considers the cost of capital and the risks associated with each class of capital. The management of the Company aims to balance its overall capital structure through the payment of dividends, new share issues and the issue of new debt or the redemption of existing debt. The Company controls its capital using the net debt / total equity ratio. This ratio is the calculated as net debt divided by total equity.
Net debt is calculated as total liability (comprises of financial liabilities, leasing and trade payables as presented in the statement of financial position) less cash and cash equivalents.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
As of 31 March 2024 and 31 December 2023, net debt/(equity+net debt) ratio is as follows:
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Total borrowings | 959,814 | 1,280,315 |
| Less: Cash and cash equivalents | (823,116) | (1,064,571) |
| Net dept | 136,698 | 215,744 |
| Total equity | 1,379,965 | 1,278,169 |
| Total equity + net dept | 1,516,663 | 1,493,913 |
| Net dept / (total equity+net dept) ratio | %9 | %14 |
Financial instruments have a counterparty risk as they may not fulfill requirements of the agreement. The Company manages credit risk by constantly evaluating the credibility of the related parties and by determining counterparty credit limits and due dates on a customer basis. Company also receives collaterals from customers as needed. Instruments that increase the credit reliability as guarantees received to determine the maximum amount of credit risk as of reporting date, are not taken into account.
Concentrations of credit risk arise when a number of counterparties are engaged in similar business activities or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations of credit risk indicate the relative sensitivity of the Company's performance to developments affecting a particular industry or geographic location.
Transactions in foreign currency cause the exchange rate risk to occur.
The Company is exposed to exchange rate risk due to changes in the exchange rates used in the conversion of foreign currency assets and liabilities into Turkish lira. Currency risk arises due to future commercial transactions and the difference between recorded assets and liabilities.
The TL equivalents of foreign currency assets and liabilities held by the Company are as follows:
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Assets | 157,964 | 139,470 |
| Liabilities | (66,145) | (47,960) |
| Net balance sheet foreign currency position | 91,819 | 91,510 |
The Company is exposed to currency risk mainly in US Dollar and Euro.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| Profit/Loss 31 March 2024 | Appreciation of foreign currency |
Depreciation foreign currency |
|---|---|---|
| If the US Dollar changes 20% +/- against TL : | ||
| 1- USD net asset/liability | 20,180 | (20,180) |
| 2- Part hedged against USD risk (-) (*) | - | - |
| 3- USD net effect (1+2) | 20,180 | (20,180) |
| In case the Euro changes 20% +/- against TL: | ||
| 4- Euro net asset/liability | (1,816) | 1,816 |
| 5- Hedged portion from Euro risk (-) | - | - |
| 6- Euro net effect (4+5) | (1,816) | 1,816 |
| On average 20% +/- change in other exchange rates against TL: | ||
| 7- Other foreign currency net asset/liability | - | - |
| 8- Hedged portion from other exchange rate risk (-) | - | - |
| 9- Net effect on other FX assets (7+8) | - | - |
| 18,364 | (18,364) | |
| Appreciation of | Depreciation | |
| Profit/Loss 31 December 2023 | foreign currency | foreign currency |
| If the US Dollar changes 20% +/- against TL : | ||
| 1- USD net asset/liability | 17,780 | (17,780) |
| 2- Part hedged against USD risk (-) (*) | - | - |
| 3- USD net effect (1+2) | 17,780 | (17,780) |
| In case the Euro changes 20% +/- against TL: | ||
| 4- Euro net asset/liability | 522 | (522) |
| 5- Hedged portion from Euro risk (-) | - | - |
| 6- Euro net effect (4+5) | 522 | (522) |
| On average 20% +/- change in other exchange rates against TL: | ||
| 7- Other foreign currency net asset/liability | - | - |
| 8- Hedged portion from other exchange rate risk (-) | - | - |
| 9- Net effect on other FX assets (7+8) | - | - |
| 18,302 | (18,302) |
(*) The effect of derivative instruments for hedging purposes is not taken into account.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
It summarizes the Company's foreign currency position risk. The recorded amounts of foreign currency assets and liabilities held by the Company are as follows. by foreign currency type:
| 31 March 2024 | 31 December 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| TL equivalent | USD | Avro | GBP | Other | TL equivalent | USD | Avro | GBP | Other | |
| 1. Trade receivables | 41,421 | 1,110 | 161 | - | - | 28,842 | 668 | 166 | - | - |
| 2a. Monetary financial assets | 81,350 | 2,514 | 5 | - | - | 88,069 | 2,600 | - | - | - |
| 2b. Non-monetary financial assets | - | - | - | - | - | - | - | - | - | - |
| 3. Other | 35,193 | 997 | 86 | - | - | 22,559 | 582 | 76 | - | - |
| 4. Total current assets (1+2+3) | 157,964 | 4,621 | 252 | - | - | 139,470 | 3,850 | 242 | - | - |
| 5. Trade receivables | - | - | - | - | - | - | - | - | - | - |
| 6a. Monetary financial assets | - | - | - | - | - | - | - | - | - | - |
| 6b. Non-monetary financial assets | - | - | - | - | - | - | - | - | - | - |
| 7. Other | - | - | - | - | - | - | - | - | - | - |
| 8. Total non-current assets (5+6+7) | - | - | - | - | - | - | - | - | - | - |
| 9. Total assets (4+8) | 157,964 | 4,621 | 252 | - | - | 139,470 | 3,850 | 242 | - | - |
| 10. Ticari payables | 64,402 | 1,450 | 505 | - | - | 46,026 | 1,177 | 164 | - | - |
| 11. Financial liabilities | - | - | - | - | - | - | - | - | - | - |
| 12a. Other monetary liabilities | 1,743 | 46 | 7 | - | - | 1,934 | 48 | 8 | - | - |
| 12b. Othre non-monetary liabilities | - | - | - | - | - | - | - | - | - | - |
| 13. Total current liabilities (10+11+12) | 66,145 | 1,496 | 512 | - | - | 47,960 | 1,225 | 172 | - | - |
| 14. Trade payables | - | - | - | - | - | - | - | - | - | - |
| 15. Financial liabilities | - | - | - | - | - | - | - | - | - | - |
| 16a. Other monetary liabilities | - | - | - | - | - | - | - | - | - | - |
| 16b. Other non-monetary liabilities | - | - | - | - | - | - | - | - | - | - |
| 17. Total non-current liabilities (14+15+16) | - | - | - | - | - | - | - | - | - | - |
| 18. Total liabilities (13+17) | 66,145 | 1,496 | 512 | - | - | 47,960 | 1,225 | 172 | - | - |
| 19. Net asset/ (liability) position of off-balance sheet derivative instruments (19a-19b) | 309,940 | 9,600 | - | - | - | 433,572 | 12,800 | - | - | - |
| 19a. Total asset amount hedged | 309,940 | 9,600 | - | - | - | 433,572 | 12,800 | - | - | - |
| 19b. Total liabilities amount hedged | - | - | - | - | - | - | - | - | - | - |
| 20. Net foreign currency asset / (liability) position (9-18+19) | 401,759 | 12,725 | (260) | - | - | 525,082 | 15,425 | 7 0 | - | - |
| 21. Monetary items net foreign currency asset / (liability) position (1+2a+3+5+6a-10- 11-12a-14-15-16a) |
91,819 | 3,125 | (260) | - | - | 91,510 | 2,625 | 7 0 | - | - |
| 22. Total fair value of financial instruments used for currency hedge | - | - | - | - | - | - | - | - | - | - |
| 23. Amount of Hedged Part of Foreign Currency Assets | - | - | - | - | - | - | - | - | - | - |
| 23. Amount of hedged part of foreign currency liabilities | - | - | - | - | - | - | - | - | - | - |
| 23. Exports | 37,238 | 684 | 154 | - | 9,873 | 179,769 | 3,608 | 786 | - | - |
| 24. Imports | 81,163 | 2,136 | 286 | 3 0 | 8,075 | 497,721 | 14,759 | 3,943 | 105 | 16,369 |
| % 20 increase | - | 20,180 | (1,816) | - | - | - | 15,453 | 453 | - | - |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
As of 31 March 2024, the Company does not have any floating rate borrowings. (31 December 2023: None).
Holding financial instruments also carries the risk that the other party will not be able to fulfill the requirements of the agreement. The Company's collection risk mainly arises from its trade receivables. Trade receivables are evaluated taking into account the Company policies and procedures and accordingly, they are shown in the balance sheet net after provision for doubtful receivables.
The majority of the Company's sales are for the domestic market and it is mainly carried out through dealers and wholesalers. About 76% of the sales are due to the sales of the manufactured products. The commercial goods sold by the Company are of foreign origin. Therefore the company's merchandise costs are sensitive to the exchange rate. The cost of raw materials depends on the general price trend in the country. Approximately 94% of the Company's net sales are domestically oriented and the fluctuations in exchange rates are taken into account when determining price levels.
The Company collects its receivables mainly through checks received from its dealers and also uses a direct debit system (DBS). Since the issuers of the checks received in general are the customers of the dealers, risk distribution is provided. Due to the fact that the Company operates in this system, there is no significant risk arising from its receivables.
The Company tries to manage its liquidity risk by regularly monitoring the cash flows and ensuring the continuation of sufficient funds and borrowing reserves by matching the maturities of financial assets and liabilities.
Prudent liquidity risk management refers to holding sufficient cash, availability of sufficient credit transactions and fund resources, and the power to close market positions.
The funding risk of current and prospective debt requirements is managed by maintaining the availability of sufficient number of high-quality lenders.
The maturity distribution of the Company's derivative and non-derivative financial liabilities in TL terms is shown below.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
The Company considers that the recorded values of financial instruments reflect their fair values.
Level 1: Market price valuation techniques for the determined financial instruments traded in markets (unadjusted)
Level 2: Other valuation techniques including direct or indirect observable inputs Level 3: Valuation techniques not containing observable market inputs
| 31 March 2024 | Seviye 1 | Seviye 2 | Seviye 3 | |
|---|---|---|---|---|
| Derivative financial liabilities | - | - | - | - |
| 31 December 2023 | Seviye 1 | Seviye 2 | Seviye 3 | |
| Derivative financial liabilities | 1,980 | - | 1,980 | - |
| 31 March 2024 | Seviye 1 | Seviye 2 | Seviye 3 | |
| Derivative financial assets | 391 | - | 391 | - |
| 31 December 2023 | Seviye 1 | Seviye 2 | Seviye 3 | |
| Derivative financial assets | - | - | - | - |
Derivative financial instruments are initially recognized at cost, and subsequently valued at fair value on 1 October 2018.
As of 31 March 2024, Adel has a foreign exchange forward transaction with a nominal value of TL 213,084 amounting to USD 6,600,000 (31 December 2023: Nominal value of TL 287,919 amounting to USD 8,500,0000).
As of 31 March 2024, the Company has allocated USD 2,818,199 equivalent of TL 90,987 from its bank deposits for the payments related to raw material and trade goods purchases to be made in the future periods in order to hedge against fluctuations in foreign exchange rates and the related amount has been subject to hedge accounting. (31 December 2023: USD 2,600,000 equivalent of TL 88,069)
The Company documented the relationship between hedging instruments and hedged items at the beginning of the hedge transaction and also documented risk management objectives and the strategy for performing a variety of hedging transactions. Company, both at the beginning of the process of hedging transaction and on a regular basis of the hedging transaction, documented the assessment whether instruments used in hedging transactions are effective in high-level balancing changes in values of hedged items.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
The Company is a party to various forward foreign exchange contracts and options depending on the management of exchange rate fluctuations. The derivative instruments purchased are mainly in foreign currencies in the market in which the Company operates for stock purchases, purchases of machinery and equipment denominated in foreign currency, and other service contracts denominated in foreign currency.
| 2024 | 2023 | |||||
|---|---|---|---|---|---|---|
| Fair Value | Fair Value | |||||
| Contract Amount | Assets | Liabilities | Contract Amount | Assets | Liabilities | |
| For hedging purposes: | ||||||
| Forward transaction | 213,084 | 391 | - | 287,919 | - | 1,980 |
| 213,084 | 391 | - | 287,919 | - | 1,980 | |
| Short term | 213,084 | 391 | - | 287,919 | - | 1,980 |
| 213,084 | 391 | - | 287,919 | - | 1,980 |
The Company's finance department is responsible for ensuring regular access to financial markets and monitoring and managing the financial risks incurred in connection with the Company's activities. These risks are; It includes market risk (including currency risk, fair interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk. The Company does not have speculative financial instruments (including derivative financial instruments) and does not have any activity related to the purchase and sale of such instruments.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRY") as of March 31,2024, unless otherwise stated)
| 31 March 2024 | Notes | Fair value differences reflected in other |
Financial assets shown at amortized cost |
Financial liabilities shown at amortized value |
Book value | Fair value |
|---|---|---|---|---|---|---|
| Financial assets | ||||||
| Cash and cash equivalences | 4 | - | 724.501 - | - | 724.501 | 724.501 |
| Trade receivables from third parties | 8 | - | 143.048 - | - | 143.048 | 143.048 |
| Receivables from related parties | 23 | - | 63.481 - | - | 63.481 | 63.481 |
| Derivatives | 26 ,1 | 391 | - - | - | 391 | 391 |
| Other financial assets | 5, 9 | - | 785 - | - | 785 | 785 |
| Financial liabilities | - | - | - - | - | - | - |
| Financial borrowings | 7 | - | - - | 857.963 | 857.963 | 857.963 |
| Lease liabilities | 7 | - | - - | 101.851 | 101.851 | 101.851 |
| Trade payables | 8 | - | - - | 178.781 | 178.781 | 178.781 |
| Payables from related parties | 23 | - | - - | 12.263 | 12.263 | 12.263 |
| Derivatives | 25.1 | - | - - | - | - | - |
| Other financial liabilities | 9 | - | - - | 5.790 | 5.790 | 5.790 |
| - | - | - - | - | - | - |
| Fair value differences reflected in | Financial assets shown | Financial liabilities | Book value | Fair value | ||
|---|---|---|---|---|---|---|
| 31 December 2023 | Notes | other | at amortized cost | shown at amortized value | ||
| Financial assets | ||||||
| Cash and cash equivalences | 4 | 913.615 - - |
- | 913.615 | 913.615 | |
| Trade receivables from third parties | 8 | 76.603 - - |
- | 76.603 | 76.603 | |
| Receivables from related parties | 23 | 59.695 - - |
- | 59.695 | 59.695 | |
| Other financial assets | 5 | 893 - - |
- | 893 | 893 | |
| Financial liabilities | ||||||
| Financial borrowings | 7 | - - - |
1.153.234 | 1.153.234 | 1.153.234 | |
| Lease liabilities | 7 | - - - |
127.081 | 127.081 | 127.081 | |
| Trade receivables from third parties | 8 | - - - |
153.006 | 153.006 | 153.006 | |
| Payables from related parties | 23 | - - - |
7.661 | 7.661 | 7.661 | |
| Derivatives | 25.1 | - - - |
1.980 | 1.980 | 1.980 | |
| Other financial liabilities | 9 | - - - |
456 | 456 | 456 |
None.
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