ZİRAAT YATIRIM MENKUL DEĞERLER A.Ş. 01 January December 2014 INDEPENDENT AUDITOR S REPORT

Transcription

1 01 January December 2014 INDEPENDENT AUDITOR S REPORT

2 Yönetim Kurulu'na Introduction We have audited the accompanying statement of financial position of ZİRAAT YATIRIM MENKUL DEĞERLER A.Ş. ( Company ) as at December 31, 2014 and the related statement of comprehensive income, statement of changes in shareholders equity and statement of cash flows for the year then ended and a summary of significant accounting policies and explanatory notes. Management's Responsibility for the Financial Statements The Company s management is responsible for the preparation and fair presentation of these financial statements in accordance with the Turkish Accounting Standards published by the Public Oversight Accounting and Auditing Standards Authority ( POA ) and for such internal controls as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to error and/or fraud. Independent Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards issued by the Capital Markets Board of Turkey. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments; the Company s internal control system is taken into consideration. Our purpose, however, is not to express an opinion on the effectiveness of internal control system, but to design procedures that are appropriate for the circumstances in order to identify the relation between the financial statements prepared by the Company and its internal control system. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Company management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the accompanying financial statements present fairly the financial position of Company as at December 31, 2014 and their financial performance and cash flows for the year then ended in accordance with the Turkish Accounting Standards.

3 Other The Company's 2013 audited financial statements an unqualified opinion by another independent auditing company. Reports on Other Responsibilities Arising from Regulatory Requirements In accordance with subparagraph 4, Article 402 of the TCC, no significant matter has come to our attention that causes us to believe that the Company s bookkeeping activities for the period 1 January 31 December 2014 and financial statements are not in compliance with the code and provisions of the Company s articles of association in relation to financial reporting. In accordance with subparagraph 4, Article 402 of the TCC, the Board of Directors submitted to us the necessary explanations and provided required documents within the context of audit , Ankara Karar Bağımsız Denetim ve Danışmanlık A.Ş. Member Firm of JHI Association Ali Osman EFLATUN Sorumlu Ortak Başdenetçi

4 İÇİNDEKİLER FINANCIAL POSITION COMPREHENSIVE INCOME STATEMENT... 3 CHANGES IN EQUITY STATEMENT... 4 CASH FLOW STATEMENTS... 5 NOTES TO THE FINANCIAL STATEMENTS

5 Financial Position For The Periods Ended (Currency Turkish Lira TL unless otherwise expressed) Notes Number ASSETS Current Assets Cash and cash equivalents [3] Financial investment [4] Trade receivables [6] Other receivables [7] Prepaid expenses [8] Current income tax assets [9] Other current assets [10] Due from related parties Total Non-current assets Financial investment [4] Other receivables [7] Investments in equity accounted investees [11] Tangible Assets [12] Intangible Assets [13] Deferred Tax Assets [14] Total TOTAL ASSETS Sayfa 1

6 LIABILITIES Current liabilities Financial Position For The Periods Ended (Currency Turkish Lira TL unless otherwise expressed) Notes Number Financial liabilities [5] Trade payables [6] Due to related parties Trade payables, third parties Other payables [7] Current income tax liabilities [15] Provisions [16] Employee Benefits Other Short Term Provisions Other current liabilities [10] Due to related parties Trade payables, third parties Total Non-current liabilities Provision for employee benefits [17] Total EQUITY Paid-in capital [18] Adjustment to share capital [19] Other comprehensive income/expense not to be reclassified to [20] profit or loss Revaluation and classification profit / loss Other profit/loss Restricted reserves [21] Previous years profits / losses [22] Net income (loss) for the period Total TOTAL LIABILITIES AND EQITY Sayfa 2

7 Statements of Comprehensive Income for the Periods Ended (Currency Turkish Lira TL unless otherwise expressed) Notes COMPREHENSIVE INCOME Number Sales [23] Cost of sales (-) [23] GROSS PROFIT General administrative expenses (-) [25] Marketing expenses (-) [24] Other operating income [26] Other Operating Expenses (-) [27] OPERATING PROFIT/LOSS Share of profit/loss of equity accounted ınvestees, net of ıncome tax [11] FINANCE COSTS BEFORE OPERATING PROFIT / LOSS Financing expenses [28] Financial revunues [28] PROFIT BEFORE TAX FROM CONTINUED OPERATIONS Tax Income/Expense of Continued Operations Corporation tax [15] Defered tax revenue /expenses [29] NET INCOME FROM CONTINUED OPERATIONS Earnings Per Share Earnings per share from continuing operations [31] 0, , , , NET INCOME /EXPENSE OTHER COMPREHENSIVE INCOME Items Not to be Reclassified to Profit or Loss Defined benefit plan re-measurement gains [17,20] Investments accounted for using the equity method shares of other comprehensive income [11] Tax related to other comprehensive income that will not be reclassified to profit or loss Defered tax revenue /expenses [20,29] OTHER COMPREHENSIVE INCOME TOTAL COMPREHENSIVE INCOME Sayfa 3

8 Changes in Equity Statement for the Periods Ended (Currency Turkish Lira TL unless otherwise expressed) Notes Number Share Capital Equity Inflation Restatement Differences Other Comprehensive Income/Expense not to be Reclasiffied to Profit or Loss Restricted Reserves Previous Years Profits / losses Net Income (loss) for the Period TOTAL Previous period income by transfer Capital inflows Changes in actuarial (net) [17,20] Net income / loss for the period Previous period income by transfer Dividend payments Changes in actuarial (net) [17,20] Investments accounted for using the equity method shares of other [11,20] comprehensive income Net income / loss for the period Sayfa 4

9 Cash Flow Statement for the Periods Ended (Currency Turkish Lira TL unless otherwise expressed) Notes Number A. CASH FLOWS FROM OPERATİNG ACTİVİTİES Cash inflow from operating activities; Sales [24,6] Interest, fee, premium, commission and other income [29] Other cash inflows from operating activities [27] Cash outflow from operating activities; Cost of sales [24,4,6] Interest, fee, premium, commission and other expense [29] Other cash outflows from operating activities [25,26] Cash flow from operating activities Dividend income [29] Tax payments / refunds [9,15] Other cash inflows / outflows [7,8,10] B. CASH FLOWS FROM INVESTİNG ACTİVİTİES Acquisition of fixed assets [12,13] Financial asset purchases [4] Sales of financial assets [4] C. CASH FLOWS FROM FİNANCİNG ACTİVİTİES Proceeds from/repayments of financial liabilities Dividends paid NET İNCREASE/(DECREASE) İN CASH ANDEASH EQUİVALENTS BEFORE CURRENCY TRANSLATİON DİFFERENCE (A+B+C) D. EFFECTS OF CURRENCY DİFFERENCES ON CASH AND CASH EQUİVALENTS NET INCREASE/(DECREASE) in CASH and CASH EQUIVALENTS (A+B+C+D) E. CASH AND CASH EQUİVALENTS AT THE BEGİNNİNG OF THE PERİOD [3] CASH AND CASH EQUİVALENTS AT THE END OF THE PERİOD (A+B+C+D+E) Sayfa 5

10 NOT 1. ORGANIZATION AND OPERATIONS OF THE CAMPANY Ziraat Yatırım Menkul Değerler A.Ş. ( The Company ) was founded in February 18, 1997 in accordiance with Capital Market Law and the related legislation to perform capital market operations. The company is to operate in accordiance with Capital Market Legislation together operating certificates as follows: a) Acts as an Intermediary for the Sale and Purchase b) Public Offering Intermediary c) Investment Consultancy d) Portfolio Management e) Repo and Reverse Repo Transactions f) Credited Securities, Short-selling and Borrowing and Lending Transactions of Securities g) Acts as an Intermediary for the Sale and Purchase of Derivate Instruments Repurchase and Reverse Repurchase Authorization has been canceled as of January 2015 The address of the headquarters of the company is in Levent Mahallesi Gonca Sokağı (Emlak Pasajı) No. 22 Kat Beşiktaş- İSTANBUL / TURKEY. Also, the branch offices of the company are in Eminönü, Kadıköy, İzmir, and Ankara. There are also agents in Adana, İstanbul/Galleria, İstanbul/Ataşehir, Kocaeli, Diyarbakır, Bursa, Balıkesir, Nazilli, Denizli, Antalya, Bandırma/Balıkesir, Beşiktaş/İstanbul, Samsun, Eskişehir İzmir/Karşıyaka and Kayseri. The details of the company s shareholders are as follows; Name % TL % TL T.C. Ziraat Bankası A.Ş. (A Group) 50, , T.C. Ziraat Bankası A.Ş. (B Group) 25, , Ziraat Finansal Kiralama A.Ş. (B Group) 24, , İdris Demirel (B Group) 0, , Fikrettin Aksu (B Group) 0,00 2 0,00 2 Total 100, , Any privilege is not granted to equity. Sayfa 6

11 Founder of the company that funds are as follows; a) Ziraat Yatırım Menkul Değerler A.Ş. A Tipi Değişken Fon b) Ziraat Yatırım Menkul Değerler A.Ş. B Tipi Değişken Fon c) Ziraat Yatırım Menkul Değerler A.Ş. B Tipi Tahvil Bono Fon d) Ziraat Yatırım Menkul Değerler A.Ş. B Tipi Likit Fon Firm conducts operational activities of 10 funds which are established by Ziraat Emeklilik A.Ş. However, it brokers purchase and sale of 10 funds which are established by Ziraat Bankası. The number of employees of the company as of 31 December 2014 is 105 ( ) The company has ownership of 24,99% of Ziraat Portföy Yönetim A.Ş. Corporate investments reported by using equity method attached in the financial statements. Ziraat Portföy Yönetimi A.Ş. ; It was founded in 13 February 2002 and has taken portfolio management certificate from Capital Market Board in 26 November Ziraat Portföy Yönetimi A.Ş. to managed funds are as follows: a) Founder of Ziraat Bank A.Ş. that funds; A Tipi Değişken Değer Fon, A Tipi Karma Fon, A Tipi İMKB 030 Endeks Fon, A Tipi Başak Fon, B Tipi Kısa Vadeli Tahvil Bono Fon, B Tipi Büyüme Amaçlı Tahvil Bono Fon, B Tipi Altın Fon, B Tipi TÜFE Endeksli Tahvil Fon, B Tipi Likit Fon, B Tipi Büyüyen Çocuk Fon, B Tipi %100 Apk 6. Alt Fon, B Tipi %100 Apk 7. Alt Fon b) Founder of Ziraat Yatırım Menkul Değerler A.Ş. that funds; ; A Tipi Değişken Fon, B Tipi Değişken Fon, B Tipi Likit Fon, B Tipi Tahvil Bono Fonu c) Ziraat Hayat Ve Emeklilik A.Ş.; Gelir Amaçlı Kar. Borç. Döv. Fon, Likit Karma Fon, Kamu. Borçl. Ar. Fon, Esnek Fon, Alt. Esnek Fon, Büyüme Amç. Hisse Fon, Standart Fon, Devlet Katkı Fon, Devlet Alternatif Katkı Fon, Altın Fon. Sayfa 7

12 NOT 2. BASIS OF PRESENTATION FOR THE FINANCIAL STATEMENTS 2.1. Basis of Presentation Declaration of Conformity The Company reserves statutory accounting records in accordance with The Uniform Chart of Accounts, Turkish Commercial Code and Turkish Tax Laws and accordingly prepares statutory financial statements bases of Turkish Lira (TL) Company prepared its financial statements for the period ended 31 December 2044 in accordance with the TAS 34 Interim financial reporting in the framework of the Communiqué Serial: II and numbered 14.1 and its related announcements. The financial statements and its accompanying notes are presented in compliance with the format recommended by CMB, including its mandatory information Approval of Financial Statements The attached financial statements of the Company, was approved by the Board of Directors on The Company s general board and/or legal authorities have authority to change the attached financial statements Functional Currency Functional currency of the Company is Turkish Lira (TL) and attached financial statements and footnotes are presented in Turkish Lira (TL) Offsetting Financial assets and liabilities, clearly shown in the cases of necessary legal right, clearly intended evaluation the assets and liabilities or acquisition of assets with fulfilment of liabilities followed each other Adjustment of Financial Statements During Hyper-Inflationary Periods With the decision taken on 17 March 2005, the CMB announced that, effective from 1 January 2005, the application of inflation accounting is no longer required for companies operating in Turkey and preparing their financial statements in accordance with the financial reporting standards accepted by the CMB ( CMB Financial Reporting Standards ). Accordingly, TAS 29, Financial Reporting in Hyperinflationary economies, issued by the POA, has not been applied in the financial statements for the accounting year commencing 1 January Sayfa 8

13 Principals of Shareholders Recognition ; Firm has 24.9 percent of Ziraat Portföy Yönetimi A.Ş. s share. It is accepted that firm has substantial effect on its shareholder; because, the conditions indicated below are existing on the firm which is participated. a) The rate of shareholding is 24.9%. b) Firm should be represented in the participated firm s board of directors. c) Firm should join the determination process of participated firm s significant politics. d) Important transactions should be implemented between the firm and the participated firm. (Portfolio Management) Ziraat Portföy Yönetimi A.Ş. s financial statements dated 31st Decemer, 2014 which are rezognized by using equity method, was audited by independent audit Accounting Policies, Changes In Acc. Estimates and Errors Changes in Accounting Policies An entity shall change an accounting policy only if the change: a) is required by an IFRS; or b) results in the financial statements providing reliable and more relevant information about the effects of transactions, other events or conditions on the entity s financial position, financial performance or cash flows. Changes in accounting policies are applied in the period of the change if they are related to the one period only; however, if they are related to the future periods, they are applied both in the period of change and the future period, prospectively Changes in Accounting Estimates As a result of the uncertainties inherent in business activities, many items in financial statements cannot be measured with precision but can only be estimated. Estimation involves judgements based on the latest available, reliable information 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. Sayfa 9

14 Errors Errors can arise in respect of the recognition, measurement, presentation or disclosure of elements of financial statements. An entity shall correct material prior period errors retrospectively in the first set of financial statements authorised for issue after their discovery by: a) restating the comparative amounts for the prior periods presented in which the error occurred; or b) if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented. A prior period error shall be corrected by retrospective restatement except to the extent that it is impracticable to determine either the period-specific effects or the cumulative effect of the error Summary of Significant Accounting Policies Revenue In revenues, there are amounts of sales of equity instruments and securities with interest income. Purchasing costs or transferred costs discount cost of financial asset- are demonstrated in cost of sales. Interest earned from domestic government bonds, cash market, deposit shown as Financial Income, Interest earned from customers shown as Sales Revenue. Differences of period-end valuation of financial assets at fair value through profit or loss are reported in segments of Other Operation Incomes / Other Operating Expenses. Accrual basis is used for determination of revenue which includes commissions earned. In trading of financial instruments, date of transaction is used Financial Instruments IAS 32, IAS 39 and IFRS 7 Financial Instruments Standards, instruments such as assessing and reporting of cash on hand, bank deposits, securities, trade receivables and payables, receivables and payables from related parties, debt instruments issued, equity instruments, derivative instruments requires as financial instruments. Some of these fair value over amortized cost while others are assessed. Institution under the processing for these instruments using methods of valuation and classification are as follows Cash and Cash Equivalents; The company s existing cash is consisted from cash, bank and bank deposits of three months or less from the date of maturity. Cash equivalents are consisted highly liquid reverse repos. Bank balances in a foreign currency are exchanged at the balance sheet day rate. In balance sheet current value of cash and bank deposits are these assets fair value. Cash equivalents are shown with sum of carried at cost and accrued interests. Securities purchased under agreements to resell ( reverse repos ) are assessed using the effective yield method. In the stock money markets, receivables resulting from time money sales and payables resulting from time money purchases are assessed using the effective yield method. Sayfa 10

15 Fair Value Differences, Financial Assets Not Reflected To Profit or Loss ; This types of financial assets, purpose of selling or repurchasing it in the near term and short-term profit-taking acquired portfolio consists of financial assets. This financial asset consists of share certificates, government bond-treasury bills, investment funds, repo receivables and government bond- Treasury bills as guarantee given. In determining fair value of financial asset, the following prices were received attention: Share Certificates: The valuation date, in the second session of the Istanbul Stock Exchange ( ISE ) closing price Government bond-treasury bills: The valuation day, the best purchase traded in the stock market, the best purchase price or the last transaction price. Investment Funds: The valuation day, the declared purchase price by fund management Repo Receivables: Using the effective interest rate as of the valuation day Positive or negative valuation differences of financial assets are associated with the period s Income Statement. This valuation differences Financial Income / Financial Expenses line item on the financial statements are reflected. The first time recognised of all securities are made by transaction date. Dispose of the securities to make repo are not removed from financial statements so they are shown in their category in financial statements. In turn, because the obtained cash, the debts shown in Other Financial Liabilities line, in liabilities, in the balance sheet. The securities given as guarantee to various institutions are accepted and evaluated as part of portfolio. Trade Receivables and Payables ; In trade receivables, especially the credits that are a credit to customer. The receivable amounts from customers as equalization reserve and commission income are taken. Due to these are the lack of specific term or very short-term nature aren t subjected to rediscount. Nominal values of the net realizable value are accepted. Receivables are carried regularly. If its cash occurs hesitate, the possible collateral damage are taken to the balance sheet with value in the provision by guarantee taking into account. According to the limit set of Capital Market Board, customer s current portfolios are used from customers for credit receivables. Due to purchases goods and services the debts and their sales from customers in return for a portfolio of short-term debts are located in Trade Payables item. When the very short-term and essentially for lack of financing transactions are not related interest; therefore, they do not undergo to interest expense or income rediscount. Sayfa 11

16 Property, Plant and Equipment; Property, plant and equipment which are expected to be used during more than one period, are recorded with amount of historical cost. In other periods, it is also appreciated with cost value. Notice of Turkish Tax Procedure Law is predicated on rate of depreciation. Depreciation is provided on restated amounts of property, plant and equipment using the straight-line method based on the estimated useful lives of the assets. The depreciation period for property and equipment, which approximate the useful lives of such assets, are as follows: Motor Vehicles Furniture and Fixtures Other Tangible Fixed Assets 5 years 3-15 years 5 years Salvage value of tangible assets is estimated as zero 0. Tangible assets; a) When it is sold off b) It s financial status statement is turned off when the economic profit is not expected from using or disposing in the future. Firm removed from its records tangible assets which do not bring economic profit in the future and completed its amortization Intangible Assets; Intangible assets which are expected to be used during more than one period, are recorded with amount of historical cost. In other periods, it is also appreciated with cost value. Notice of Turkish Tax Procedure Law is predicated on rate of depreciation. Depreciation is provided on restated amounts of intangible assets using the straight-line method based on the estimated useful lives (3-5 years) of the assets. Using the useful lives of the intangible assets depreciations are announced in the financial statements. Salvage value of intangible assets is estimated as zero 0. Intangible assets; a) When it is sold off b) It s financial status statement is turned off when the economic profit is not expected from using or disposing in the future. Firm removed from its records intangible assets which do not bring economic profit in the future and completed its amortization. Sayfa 12

17 Impairment of Assets ; According to IAS 36 Impairment of Assets, as the internal and external economic indicators may require, requiring a comparison between the carrying amount and recoverable amount of tangible and intangible assets. An asset is impaired when its carrying amount exceeds its recoverable amount. The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use. The amounts of estimated impairment are recorded as a loss on the determined period. But, there has not to be the entity of such impairment Earning per Share ; Earnings per share disclosed in the accompanying consolidated statement of income is determined by dividing net income by the weighted average number of shares circulating during the year concerned. In Turkey, companies can raise their share capital by distributing Bonus Shares to shareholders from retained earnings. In computing earnings per share, such bonus share distributions are assessed as issued shares. Accordingly, the retrospective effect for those share distributions is taken into consideration in determining the weighted-average number of shares outstanding used in this computation Other Balance Sheet Items ; Other balance sheet items are reflected with carrying amounts Deferred Tax Deferred tax is accounted for using the liability method in respect of temporary differences arising from differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of taxable (statutory) profit. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction which affects neither the tax profit nor the accounting Deferred income tax assets and liabilities related to income taxes levied by the same taxation authority are offset and the net amount reported in the balance Sayfa 13

18 Corporate Tax In Turkey, Corporate Tax rate on the profits is 20%. Taxable profits are calculated by addition of non-allowable expenses to and deduction of tax exemptions (investment income exemption) and deductions (investment incentive deductions) from the profit disclosed in the statutory income. No other taxes are paid unless profits are distributed. Tax losses that are reported in the Corporation Tax return can be carried forward and deducted from the corporation tax base for a maximum of five consecutive years. The Turkish Tax Procedural Law does not include a procedure for formally agreeing tax assessments. Tax returns must be represented by 25th of April and may be subject to investigation, together with the underlying accounting records, by the tax authorities at any stage during the following five years Related Parties ; A company can control another company or financial and operational decisions can have a significant influence on the concerned parties is considered a related party. Related parties of the company are as follows:; 1. The partners and the founder of their funds, stated in Note The company s founder of the funds 3. Ziraat Portföy Yönetimi A.Ş. 4. Ziraat Sigorta A.Ş. 5. Ziraat Hayat Emeklilik A.Ş. 6. Ziraat Teknoloji A.Ş. 7. Members of inspectorate and board of directors Conditional Assets and Liabilities Assets and liabilities that originate from past incidents and whose presence is not fully under the company management control as it can only be confirmed through the realization of one or more indefinite incidents to take place in the future are not included in the financial statements and reconsidered as conditional liabilities and assets. Sayfa 14

19 Cash Flow Statement In statement of cash flows, cash flows are classified and reported according to operating, investment and finance activities. Cash flows from operating activities reflect cash flows generated from sale activities of the Company. Cash flows from investment activities express cash flows used in investment activities (direct investments and financial investments) and cash flows generated from investment activities of the Company. Cash flows relating to finance activities express sources of financial activities and repayments of these sources of the Company. Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments which their maturities are three months or less from date of acquisition and that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value Subsequent Events ; Events that provide evidence of conditions that existed at the end of the reporting period are adjusted in the financial statements. Events that are indicative of conditions that arose after the reporting period are expounded in balance sheet s notes Significant accounting estimates, assumptions and decisions Preparation of financial statements requires the usage of estimations and assumptions which may affect the reported amounts of assets and liabilities as of the statement of financial position date, disclosure of contingent assets and liabilities and reported amounts of income and expenses during the financial period. The estimations and assumptions may differ from the actual results. Estimations and assumptions are reviewed periodically, adjusted if deemed necessary and reflected to the statement of profit or loss and other comprehensive income in the period they occurred. Assumptions which might have a material effect on the amounts reflected in statement of financial position or might have a material effect in the future are summarized below. Usefull life for fixed assets Working time, rate hike, discount rate, the percentage of those left without compensation Interest rate for deferred tax Sayfa 15

20 Employee Termination Benefits Defined Benefit Plans In accordance with existing social legislation in Turkey, the Company is required to make lumpsum termination indemnities to each employee who has completed one year of service with the Company and whose employment is terminated due to retirement or for reasons other than resignation or misconduct. The Company is calculating the existing liability as appropriate. The liability is discounted to present value using the effective interest rate for fair presentation. All actuarial gains and losses are recognized in the income statement. The Company assumes personnel retires after completing of services are 25 years for men and 20 years for women., The Company assumes 5 % (raise the fee employee) annual increment of earned Termination Indemnity from work as of the balance sheet date until the date of leaving. Thus, when retired, will receive Termination Indemnity, finds appropriate portion of Termination Indemnity on balance sheet date. This amount allows discount at the rate of 8% in accordance with the remaining time to retirement. The rate of Termination Indemnity leaving without was taken as 7%. Defined Contribution Plans For defined contribution plans, the Company pays contributions to publicly administered Social Security Funds on a mandatory basis. Sayfa 16