TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.
CONVENIENCE TRANSLATION INTO ENGLISH OF CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 SEPTEMBER 2023
(ORIGINALLY ISSUED IN TURKISH)
HİZMETE ÖZEL CONFIDENTIAL
TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.
CONTENTS | PAGE | ||
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION | 1 - 2 | ||
CONDENSED INTERIM STATEMENTS OF PROFIT | |||
OR LOSS AND OTHER COMPREHENSIVE INCOME | 3 | ||
CONDENSED INTERIM STATEMENTS OF | |||
CHANGES IN EQUITY | 4 - 5 | ||
CONDENSED INTERIM STATEMENTS OF CASH FLOWS | 6 | ||
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS | 7 - 50 | ||
NOTE 1 | ORGANISATION AND NATURE OF OPERATIONS OF THE COMPANY | 7 | |
NOTE 2 | BASIS OF PRESENTATION OF FINANCIAL STATEMENTS | 7 | - 12 |
NOTE 3 | REPORTING BY SECTIONS | 12 | |
NOTE 4 | CASH AND CASH EQUIVALENTS | 13 | |
NOTE 5 | FINANCIALINVESTMENTS | 13 | |
NOTE 6 | FINANCIAL LIABILITIES | 14 | - 16 |
NOTE 7 | TRADE RECEIVABLES AND PAYABLES | 16 | - 17 |
NOTE 8 | INVENTORIES | 18 | |
NOTE 9 | PROPERTY, PLANT AND EQUIPMENT | 19 | - 20 |
NOTE 10 | RIGHT OF USE ASSETS | 20 | - 21 |
NOTE 11 | INTANGIBLE ASSETS | 21 | - 22 |
NOTE 12 | OTHER ASSETS AND LIABILITIES | 22 | |
NOTE 13 | PREPAID EXPENSES AND DEFERRED INCOME | 23 | |
NOTE 14 | PROVISIONS, CONTINGENT ASSETS AND LIABILITIES | 23 | - 27 |
NOTE 15 | EMPLOYEE BENEFITS | 28 | |
NOTE 16 | EQUITY | 28 | - 30 |
NOTE 17 | REVENUE AND COST OF SALES | 30 | |
NOTE 18 | OTHER INCOME/EXPENSE FROM OPERATING ACTIVITIES | 31 | |
NOTE 19 | FINANCIAL INCOME | 31 | |
NOTE 20 | FINANCIAL EXPENSE | 31 | |
NOTE 21 | TAX ASSETS AND LIABILITIES | 32 | - 35 |
NOTE 22 | EARNINGS PER SHARE | 35 | |
NOTE 23 | RELATED PARTY EXPLANATIONS | 35 | - 40 |
NOTE 24 | FINANCIAL INSTRUMENTS AND NATURE AND EXTENT OF RISKS ARISING FROM | ||
FINANCIAL INSTRUMENTS | 41 | - 50 | |
NOTE 25 | SUBSEQUENT EVENTS | 50 |
HİZMETE ÖZEL CONFIDENTIAL
TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
(Amounts expressed in Turkish Lira ("TRY") unless otherwise indicated.)
Current Period | Audited | |||
Unaudited | ||||
Notes | 30 September | 31 December | ||
2023 | 2022 | |||
ASSETS | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 4 | 7,180,694,578 | 4,416,872,941 | |
Financial investments | 5 | 7,507,228 | 420,033,225 | |
Trade receivables | ||||
- | Trade receivables from related parties | 7, 23 | 405,588,806 | 1,274,066,993 |
- | Trade receivables from third parties | 7 | 1,835,673,900 | 827,840,777 |
Inventories | 8 | 5,916,701,667 | 3,614,962,987 | |
Prepaid expenses | 13 | 20,773,269 | 15,168,023 | |
Current income tax assets | 21 | - | 3,069 | |
Other current assets | 12 | 1,040,800,710 | 1,008,138,837 | |
TOTAL CURRENT ASSETS | 16,407,740,158 | 11,577,086,852 | ||
NON - CURRENT ASSETS | ||||
Trade receivables | ||||
- | Trade receivables from third parties | 7 | 109,458 | 109,458 |
Other receivables | ||||
- | Other receivables from third parties | 412,390 | 393,753 | |
Property, plant and equipment | 9 | 1,229,711,244 | 931,097,842 | |
Right of use assets | 10 | 99,840,843 | 93,425,351 | |
Intangible assets | 11 | 932,457,908 | 621,820,738 | |
Prepaid expenses | 13 | 127,709,816 | 90,815,165 | |
Deferred tax assets | 21 | 1,222,802,694 | 481,193,003 | |
TOTAL NON - CURRENT ASSETS | 3,613,044,353 | 2,218,855,310 | ||
TOTAL ASSETS | 20,020,784,511 | 13,795,942,162 |
The financial statements prepared as at and for the period ended 30 September 2023 have been approved by the Board of Directors on 24 October 2023.
The accompanying notes form an integral part of these condensed interim financial statements.
1
HİZMETE ÖZEL CONFIDENTIAL
TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
(Amounts expressed in Turkish Lira ("TRY") unless otherwise indicated.)
Current Period | Audited | |||
Unaudited | ||||
Notes | 30 September 2023 | 31 December 2022 | ||
LIABILITIES | ||||
CURRENT LIABILITIES | ||||
Short-term financial liabilities | ||||
Short-term financial liabilities to other parties | ||||
- | Bank borrowings | 6 | 2,103,492,670 | 2,432,320,224 |
- | Other financial liabities | |||
Short-term portion of long-term financial liabilities | ||||
Short-term portion of long-term financial liabilities from | ||||
related parties | ||||
- | Lease liabilities | 6 | 52,924,901 | 24,918,517 |
Short-term portion of long-term financial liabilities from | ||||
third parties | 552,204,989 | 848,288,136 | ||
- Bank borrowings | 6 | |||
- | Lease liabilities | 6 | 15,805,98 | 7,441,898 |
Trade payables | 298,676,871 | 271,784,705 | ||
- Trade payables to related parties | 7, 23 | |||
- Trade payables to third parties | 7 | 6,030,515,587 | 4,653,430,244 | |
Payables related to employee benefits | 15 | 326,354,265 | 149,120,886 | |
Other payables | ||||
- Other payables to third parties | 62,137,331 | 124,654,842 | ||
Government incentives and aids | 12 | 3,121,626 | 3,321,575 | |
Deferred income | 13 | 787,295,008 | 566,700,564 | |
Tax liability for the period | 21 | 1,040,023,428 | - | |
Short - term provision | 30,910,891 | 13,328,665 | ||
- | Short term provision for employee benefits | 14 | ||
- | Other short term provisions | 14 | 155,137,354 | 120,401,000 |
TOTAL CURRENT LIABILITIES | 11,458,600,907 | 9,215,711,256 | ||
NON - CURRENT LIABILITIES | ||||
Long-term financial liabilities | ||||
Long-term financial liabilities from related parties | 44,972,449 | 68,144,904 | ||
- | Lease liabilities | 6 | ||
Long-term financial liabilities from third parties | 193,318,992 | 507,427,245 | ||
- Bank borrowings | 6 | |||
- | Lease liabilities | 6 | 1,090,649 | 1,652,616 |
- | Other Long-term liabilities | 6 | 117,875,047 | - |
Long - term provisions | ||||
- | Long term provision for employee benefits | 14 | 275,206,361 | 256,458,270 |
- | Other long term provisions | 14 | 172,264,260 | 108,334,042 |
TOTAL NON-CURRENT LIABILITIES | 804,727,758 | 942,017,077 | ||
EQUITY | 7,757,455,846 | 3,638,213,829 | ||
Paid-in share capital | 16 | 100,066,875 | 53,369,000 | |
Adjustments to share capital | 16 | - | 39,014,356 | |
Merger reserve | (5,569,000) | (5,569,000) | ||
Restricted profit reserves | 448,435,448 | 238,702,293 | ||
Other accumulated comprehensive income and | ||||
expense not to be reclassified to profit or loss | ||||
- Actuarial loss arising from | (222,600,487) | (194,390,177) | ||
defined benefit plans | ||||
Other accumulated comprehensive income and | ||||
expense to be reclassified to profit or loss | 10,524,341 | 58,947,006 | ||
- | Gain/(Losses) on cash flow hedging | |||
Retained earnings | 1,130,723,677 | 477,121,790 | ||
Net profit for the year | 6,295,874,992 | 2,971,018,561 | ||
TOTAL LIABILITIES | 20,020,784,511 | 13,795,942,162 |
The accompanying notes form an integral part of these condensed interim financial statements.
2
HİZMETE ÖZEL CONFIDENTIAL
TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.
CONDENSED INTERIM STATEMENTS OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 SEPTEMBER 2023
(Amounts expressed in Turkish Lira ("TRY") unless otherwise indicated.)
Current | Current | Prior | Prior | ||||
Period | Period | Period | Period | ||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||
1 January - | 1 July - | 1 January - | 1 July- | ||||
Notes | 30 September | 30 September | 30 September | 30 September | |||
2023 | 2023 | 2022 | 2022 | ||||
Revenue | 17 | 32,416,000,955 | 12,087,497,672 | 14,616,448,422 | 5,735,695,920 | ||
Cost of sales (-) | 17 | (23,140,517,013) | (8,132,523,514) | (11,856,013,855) | (4,609,213,200) | ||
GROSS PROFIT | 9,275,483,942 | 3,954,974,158 | 2,760,434,567 | 1,126,482,720 | |||
Marketing expenses (-) | (955,416,731) | (403,554,339) | (395,282,227) | (155,759,152) | |||
General administrative expenses (-) | (538,976,807) | (191,483,094) | (241,540,030) | (93,528,938) | |||
Research and development expenses (-) | (95,713,808) | (33,329,255) | (49,920,258) | (16,771,181) | |||
Other income from operating activities | 18 | 2,183,064,322 | 1,051,615,177 | 939,291,963 | 234,204,537 | ||
Other expenses from operating activities (-) | 18 | (2,609,907,088) | (1,269,375,132) | (1,143,800,135) | (286,722,699) | ||
OPERATING PROFIT | 7,258,533,830 | 3,108,847,515 | 1,869,183,880 | 807,905,287 | |||
Income from investment activities | 5,033,483 | 1,780,661 | 972,621 | (736) | |||
OPERATING INCOME BEFORE | 7,263,567,313 | 3,110,628,176 | 1,870,156,501 | 807,904,551 | |||
FINANCIAL INCOME | |||||||
Financial income | 19 | 1,350,243,541 | 389,774,057 | 422,389,087 | 93,886,386 | ||
Financial expenses | 20 | (1,118,223,498) | (300,160,803) | (520,294,894) | (192,788,884) | ||
PROFIT BEFORE TAXATION ON | 7,495,587,356 | 3,200,241,430 | 1,772,250,694 | 709,002,053 | |||
INCOME | |||||||
Taxes on income (-) | 21 | (1,920,782,374) | (908,120,540) | (334,487,474) | (109,099,355) | ||
Deferred tax income/(expense) | 21 | 721,070,010 | 424,871,792 | 174,289,449 | 52,827,628 | ||
NET PROFIT FOR THE PERIOD | 6,295,874,992 | 2,716,992,682 | 1,612,052,669 | 652,730,326 | |||
Earnings per share (TRY) | 22 | 0,8580 | 0,2715 | 0,3021 | 0,1223 | ||
Other comprehensive income/(expense) | |||||||
Not to be reclassified to profit or loss: | |||||||
Actuarial loss arising from defined benefits | |||||||
plans | 14 | (37,613,747) | 1,074,291 | (30,176,847) | 1,595,780 | ||
Other comprehensive expense not to be | |||||||
reclassified | |||||||
to profit or loss, tax effect | |||||||
Actuarial gain/ loss arising from defined benefit | |||||||
plans, tax effect | 21 | 9,403,437 | 1,665,829 | 6,035,369 | (319,156) | ||
To be reclassified to profit or loss : | |||||||
Profit/(Losses) on cash flow hedging | |||||||
Other comprehensive expense to be | (59,558,909) | (25,132,267) | (80,743,038) | (23,429,839) | |||
reclassified to profit or loss, | |||||||
tax effect | |||||||
Losses on | |||||||
cash flow hedging, tax effect | 21 | 11,136,244 | 4,250,916 | 18,570,899 | 5,388,863 | ||
Other comprehensive income/(expense) | (76,632,975) | (18,141,231) | (86,313,617) | (16,764,352) | |||
6,219,242,017 | 2,698,851,451 | ||||||
TOTAL COMPREHENSIVE INCOME | 1,525,739,052 | 635,965,974 |
The accompanying notes form an integral part of these condensed interim financial statements.
3
TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.
CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY
FOR THE INTERIM PERIOD ENDED 30 SEPTEMBER 2022
(Amounts expressed in Turkish Lira ("TRY") unless otherwise indicated.)
Other | ||||||||||
accumulated | ||||||||||
Other accumulated | income or | |||||||||
income or expense | expense items | |||||||||
items | to be | |||||||||
not be reclassified | reclassified to | |||||||||
to profit or loss | profit or loss | |||||||||
Actuarial loss | ||||||||||
Paid in | Adjustment | arising from | Losses on | Restricted | ||||||
share | to share | Merger | defined benefit | cash flow | profit | Retained | Net profit | |||
capital | capital | reserve | plans | hedges | reserves | earnings | for the period | Equity | ||
1 January 2023 | 53,369,000 | 39,014,356 | (5,569,000) | (194,390,177) | 58,947,006 | 238,702,293 | 477,121,790 | 2,971,018,561 | 3,638,213,829 | |
Transfers | - | - | - | - | - | 209,733,155 | 2,761,285,406 | (2,971,018,561) | - | |
Dividends | - | - | - | - | - | - | (2,100,000,000) | - | (2,100,000,000) | |
Comprehensive income | 46,697,875 | (39,014,356) | - | - | - | - | (7,683,519) | - | - | |
Net profit for the period | - | - | - | - | - | - | - | 6,295,874,992 | 6,295,874,992 | |
Other comprehensive income | ||||||||||
Actuarial loss arising from | ||||||||||
defined benefits plans | - | - | - | (28,210,310) | - | - | - | - | (28,210,310) | |
Losses on cash flow hedging | - | - | - | - | (48,422,665) | - | - | - | (48,422,665) | |
Total other comprehensive | - | (76,632,975) | ||||||||
Income/(expense) | - | - | - | (28,210,310) | (48,422,665) | - | - | |||
Total comprehensive income | - | - | - | (28,210,310) | (48,422,665) | - | - | 6,295,874,992 | 6,219,242,017 | |
30 September 2023 | ||||||||||
100,066,875 | - | (5,569,000) | (222,600,487) | 10,524,341 | 448,435,448 | 1,130,723,677 | 6,295,874,992 | 7,757,455,846 |
The accompanying notes form an integral part of these condensed interim financial statements.
4
HİZMETE ÖZEL CONFIDENTIAL
TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.
CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY
FOR THE INTERIM PERIOD ENDED 30 SEPTEMBER 2023
(Amounts expressed in Turkish Lira ("TRY") unless otherwise indicated.)
Other | ||||||||||
accumulated | ||||||||||
Other accumulated | income or | |||||||||
income or expense | expense items | |||||||||
items | to be reclassified | |||||||||
not be reclassified | to profit or loss | |||||||||
to profit or loss | ||||||||||
Actuarial loss | ||||||||||
Paid in | Adjustment | arising from | Losses on | Restricted | ||||||
share | to share | Merger | defined benefit | cash flow | profit | Retained | Net profit for | |||
capital | capital | reserve | plans | hedges | reserves | earnings | the period | Equity | ||
1 January 2022 | 53,369,000 | 39,014,356 | (5,569,000) | (62,365,129) | 110,720,788 | 118,969,138 | 474,667,368 | 1,322,187,577 | 2,050,994,098 | |
Transfers | - | - | - | - | - | 119,733,155 | 1,202,454,422 | (1,322,187,577) | - | |
Dividends | - | - | - | - | - | - | (1,200,000,000) | - | (1,200,000,000) | |
Comprehensive income | - | - | - | - | - | - | - | - | - | |
Net profit for the period | - | - | - | - | - | - | - | 1,612,052,669 | 1,612,052,669 | |
Other comprehensive income | ||||||||||
Actuarial loss arising from | - | - | - | (24,141,478) | - | - | - | - | (24,141,478) | |
defined benefits plans | ||||||||||
Losses on cash flow hedging | - | - | - | - | (62,172,139) | - | - | - | (62,172,139) | |
Total other comprehensive | ||||||||||
Income/(expense) | - | - | - | (24,141,478) | (62,172,139) | - | - | - | (86,313,617) | |
Total comprehensive income | - | - | - | (24,141,478) | (62,172,139) | - | - | 1,612,052,669 | 1,525,739,052 | |
30 September 2022 | 53,369,000 | 39,014,356 | (5,569,000) | (86,506,607) | 48,548,649 | 238,702,293 | 477,121,790 | 1,612,052,669 | 2,376,733,150 |
The accompanying notes form an integral part of these condensed interim financial statements.
5
HİZMETE ÖZEL CONFIDENTIAL
TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.
CONDENSED INTERIM STATEMENTS OF CASH FLOWS
FOR THE INTERIM PERIOD ENDED 30 SEPTEMBER 2023
(Amounts expressed in Turkish Lira ("TRY") unless otherwise indicated.)
Current period | Prior period | ||
unaudited | unaudited | ||
1 January - | 1 January - | ||
30 September | 30 September | ||
Notes | 2023 | 2022 | |
A. CASH FLOWS FROM OPERATING ACTIVITIES | 6,023,326,718 | 1,041,050,185 | |
Net profit for the period | 6,295,874,992 | 1,612,052,669 | |
Adjustments to reconcile profit for the period | 1,443,137,519 | 667,105,596 | |
Amortization and depreciation | 260,738,771 | 149,395,298 | |
Provision for impairment on inventories | 8 | (960,885) | 3,302,028 |
Provision for employee benefits | 14 | 58,348,863 | 25,327,008 |
Provision for doubtful receivables | 7 | (724,626) | (1,846,764) |
Other provisions | 14 | 98,666,572 | 22,711,731 |
Government incentives and aids | (199,949) | (362,172) | |
Interest income and expense | 19, 20 | (429,521,150) | 203,460,720 |
Adjustments related to fair value losses (gains) of financial assets | 139,885,500 | - | |
Tax income/expense | 21 | 1,199,712,364 | 160,198,025 |
(Gain)/loss from sales of property plant and equipment | (5,033,483) | (972,621) | |
Other adjustments to reconcile profit | 122,225,542 | 105,892,343 | |
Changes in working capital | (775,297,622) | (1,038,354,955) | |
Trade receivables from third parties | (1,007,108,497) | (291,398,138) | |
Trade receivables from from related parties | 868,478,187 | (339,794,095) | |
Inventories | (2,300,777,795) | (976,854,752) | |
Other current assets | (32,658,804) | (243,082,563) | |
Other receivables | (18,637) | 562,442 | |
Prepaid expenses | (42,499,897) | (30,099,857) | |
Trade payables to related parties | 26,892,166 | (39,176,671) | |
Trade payables to third parties | 1,377,085,343 | 720,626,743 | |
Deferred income | 220,594,444 | 140,326,175 | |
Other liabilities | (62,517,511) | 8,582,623 | |
Debt for employee termination benefits | 177,233,379 | 11,953,138 | |
Net cash provided by operating activities | 6,963,714,889 | 1,240,803,310 | |
Employee termination benefits paid | (59,632,293) | (7,542,455) | |
Taxes paid | (880,755,878) | (192,210,670) | |
B. CASH FLOWS FROM INVESTING ACTIVITIES | (545,424,789) | (431,324,410) | |
Proceeds from sales of property, plant and equipment | |||
and intangible assets | 6,177,121 | 979,285 | |
Payments for purchases of property, plant and equipment | |||
and intangible assets | (854,045,137) | (429,479,794) | |
Proceeds from government grants | - | 26,099 | |
Cash inflows from the sale of shares or debt instruments | |||
of other enterprises or funds | 306,643,227 | - | |
Cash outflows from the sale of shares or debt instruments | |||
of other enterprises or funds | (4,200,000) | (2,850,000) | |
C. CASH FLOWS FROM FINANCING ACTIVITIES | (3,113,927,600) | 619,326,705 | |
Proceeds from bank borrowings | 6 | 2,745,000,000 | 3,073,963,849 |
Repayment of bank borrowings | 6 | (4,167,590,852) | (1,095,143,820) |
Dividends paid | 16 | (2,100,000,000) | (1,200,000,000) |
Interest paid | (402,623,026) | (201,385,494) | |
Interest received | 859,499,865 | 58,101,160 | |
Repayment of lease liabilities | 6 | (48,213,587) | (16,208,990) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | |||
BEFORE CURRENCY TRANSLATION | |||
DIFFERENCES (A+B+C) | 2,363,974,329 | 1,229,052,480 | |
D. EFFECT OF CURRENCY TRANSLATION DIFFERENCES | |||
ON CASH AND CASH EQUIVALENTS | 368,162,145 | (11,868,073) | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | |||
(A+B+C+D) | 2,732,136,474 | 1,217,184,407 | |
E. CASH AND CASH EQUIVALENTS AT THE BEGINNING | |||
OF THE PERIOD | 4 | 4,366,412,147 | 1,559,799,196 |
CASH AND CASH EQUIVALENTS AT THE END OF | |||
THE PERIOD (A+B+C+D+E) | 4 | 7,098,548,621 | 2,776,983,603 |
The accompanying notes form an integral part of these condensed interim financial statements.
6
HİZMETE ÖZEL CONFIDENTIAL
TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 SEPTEMBER 2023
(Amounts expressed in Turkish Lira (TRY), unless otherwise indicated)
NOTE 1 - ORGANISATION AND NATURE OF OPERATIONS OF THE COMPANY
Türk Traktör ve Ziraat Makineleri A.Ş. (the "Company") was established in 1954 in Ankara, as Minneapolis Moline Türk Traktör ve Ziraat Makineleri A.Ş. to undertake the manufacturing and trade of farm tractors, harvesters and other agricultural machinery and equipment. The name of the Company was changed as Türk Traktör Ziraat Makineleri A.Ş. in 1968 upon the purchase of 25% of the shares held by Ege Makina ve Ticaret A.Ş., a group company of the Koç Holding A.Ş. ("Koç Holding"). As of 30 September 2023, major shareholders of the Company are Koç Holding and CNHI Osterreich GmbH ("CNHI Osterreich") (Note 16). The number of personnel working within the Company as of 30 September 2023 is 2,944 (Permanent: 2,577 , temporary: 367) (31 December 2022: 2,881 (Permanent 2,782, temporary: 99, average: 2,837). The average number of personnel working within the Company for the period ended 30 September 2023 is 2,883.
The Company conducts marketing and selling activities in the domestic market, through its 131 tractor sales dealers, 149 spare part dealers and 33 construction equipment dealers (31 December 2022 : 131 tractor sales dealers, 150 spare part dealers, 33 construction equipment dealers).
The Company signed an import and distribution agreement providing after-sales services for activities such as domestic oriented sales and marketing for CNHI International SA, New Holland and Case branded imported construction equipment.
The Company is registered in Turkey in the following address:
Gazi Mahallesi Anadolu Bulvarı No: 52-52A
06560 Yenimahalle Ankara
As of 30 September 2023, 25% of the shares of the Company are quoted on Borsa Istanbul ("BIST") (31 December 2022: 25%) (Note 16).
NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
2.1 Basis of presentation
The main accounting policies used for preparing the Company's financial statements are stated below:
Basis of presentation
The financial statements of the Company have been prepared in accordance with the Turkish Financial Reporting Standards, ("TFRS") and interpretations as adopted in line with international standards by the Public Oversight Accounting and Auditing Standards Authority of Turkey ("POA") in line with the communiqué numbered II-14.1 "Communiqué on the Principles of Financial Reporting In Capital Markets" ("the Communiqué") announced by the Capital Markets Board of Turkey ("CMB") on 13 June 2013 which is published on Official Gazette numbered 28676. TFRS are updated in harmony with the changes and updates in International Financial and Accounting Standards ("IFRS") by the communiqués announced by the POA.
The financial statements are presented in accordance with "Announcement regarding with TFRS Taxonomy" which was published on 4 October 2022 by POA and the format and mandatory information recommended by CMB.
7
TÜRK TRAKTÖR VE ZİRAAT MAKİNELERİ A.Ş.
CONDENSED INTERIM STATEMENTS OF CASH FLOWS
FOR THE INTERIM PERIOD ENDED 30 SEPTEMBER 2023
(Amounts expressed in Turkish Lira ("TRY") unless otherwise indicated.)
NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)
2.1 Basis of presentation (Continued)
The condensed interim financial statements are prepared in accordance with the Communiqué and TAS 34 - "Interim Financial Reporting". In accordance with the TAS 34, entities are allowed to prepare a complete or condensed set of interim financial statements. In this framework, the Company has preferred to prepare condensed financial statements in the interim periods. These interim financial statements should be read in conjunction with the financial statements prepared for the year ended 31 December 2022.
The Company maintains its books of account and prepares its statutory financial statements in Turkish Lira (TRY) in accordance with regulations on accounting and reporting framework and the Uniform Chart of Accounts issued by the Ministry of Finance.
The condensed interim financial statements have been prepared under historical cost conventions except for the financial assets and liabilities carried at fair value and in functional and presentation currency, Turkish Lira, of the Company. The financial statements are based on the statutory records, which are maintained under historical cost conventions, with the required adjustments and reclassifications reflected for the purpose of fair presentation in accordance with TAS.
POA made a statement on 20 January 2022, in order to eliminate the hesitations about whether the companies applying TFRS will apply TAS 29 Financial Reporting in High Inflation Economies in the 2021 financial reporting period. Accordingly, it has been stated that the enterprises applying TFRS do not need to make any adjustments within the scope of TAS 29 Financial Reporting in High Inflation Economies ("TAS 29"), and no new explanation has been made by the POA on the application of TAS 29. Considering that no new disclosure has been made as of the date these financial statements were prepared, while preparing the financial statements as of 30 September 2023, no inflation adjustment was made according to TAS 29.
Functional and presentation currency
Functional and presentation currency of the Company is TRY.
2.2 Changes in accounting estimates
If changes in accounting estimates are related to only one period, they are recognised in the period when changes are applied; if changes in estimates are related to future periods, they are recognized both in the period where the change is applied and future periods prospectively. The accounting policies except the situation stated below used in the preparation of these financial statements for the period ended 30 September 2023 are consistent with those used in the preparation of financial statements for the period ended 31 December 2022.
2.3 Comparative Information and Restatement of Prior Year Financial Statements
The Company, as of September 30, 2023, has prepared the balance sheet in comparative form with the financial statements prepared as of December 31, 2022. The income statement, statement of comprehensive income, statement of cash flows, and statement of changes in equity for the period January 1 - September 30, 2023, have been prepared in comparative form with the period January 1 - September 30, 2022. If deemed necessary, comparative information is reorganized to ensure compatibility with the presentation of the current period financial statements.
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Türk Traktör ve Ziraat Makineleri AS published this content on 03 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 November 2023 14:22:16 UTC.