PARK ELEKTRİK ÜRETİM
MADENCİLİK SANAYİ VE TİCARET A.Ş.
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2011
(TRANSLATED INTO ENGLISH FROM
THE ORIGINAL TURKISH REPORT)
Table of Contents / PageBALANCE SHEET / 1 - 2
COMPREHENSIVE STATEMENT OF INCOME / 3
STATEMENT OF CHANGES IN EQUITY / 4
STATEMENT OF CASH FLOWS / 5
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 / ORGANIZATION AND OPERATIONS OF THE COMPANY / 6
NOTE 2 / BASIS OF THE FINANCIAL STATEMENTS / 7 – 25
NOTE 3 / BUSINESS COMBINATIONS / 25
NOTE 4 / SEGMENT REPORTING / 25 - 26
NOTE 5 / CASH AND CASH EQUIVALENTS / 27
NOTE 6 / FINANCIAL INVESTMENTS / 27
NOTE 7 / FINANCIAL BORROWINGS / 28
NOTE 8 / TRADE RECEIVABLES AND PAYABLES / 28 – 29
NOTE 9 / OTHER RECEIVABLES AND PAYABLES / 29
NOTE 10 / INVENTORIES / 30
NOTE 11 / INVESTMENT PROPERTY / 30
NOTE 12 / PROPERTY, PLANT AND EQUIPMENT / 31 – 33
NOTE 13 / INTANGIBLE FIXED ASSETS / 33 – 34
NOTE 14 / GOODWILL / 35
NOTE 15 / GOVERNMENT GRANTS AND INCENTIVES / 35
NOTE 16 / PROVISIONS, CONTINGENT ASSETS AND LIABILITIES / 35 – 40
NOTE 17 / COMMITMENTS / 41
NOTE 18 / EMPLOYEE BENEFITS / RETIREMENT PAY PROVISIONS / 41 – 42
NOTE 19 / OTHER ASSETS AND LIABILITIES / 42 – 43
NOTE 20 / EQUITY / 43 – 45
NOTE 21 / SALES AND COST OF SALES / 46
NOTE 22 / RESEARCH AND DEVELOPMENT EXPENSES, MARKETING, SELLING AND DISTRIBUTION EXPENSES, GENERAL ADMINISTRATIVE EXPENSES / 47
NOTE 23 / EXPENSES BY NATURE / 47 – 48
NOTE 24 / OTHER OPERATING INCOME / (EXPENSES) / 48
NOTE 25 / FINANCIAL INCOME / 49
NOTE 26 / FINANCE EXPENSES / 49
NOTE 27 / TAX ASSETS AND LIABILITIES / 50 – 51
NOTE 28 / EARNINGS PER SHARE / 52
NOTE 29 / RELATED PARTY DISCLOSURES / 52 – 56
NOTE 30 / NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS / 57 – 67
NOTE 31 / EVENTS AFTER THE BALANCE SHEET DATE / 67
NOTE 32 / OTHER ISSUES THAT SIGNIFICANTLY AFFECT THE FINANCIAL STATEMENTS OR OTHER ISSUES REQUIRED FOR THE CLEAR UNDERSTANDING OF FINANCIAL STATEMENTS / 68
Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş.
Balance Sheet as of 31 December 2011
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
Audited / Audited31 December / 31 December
ASSETS / Notes / 2011 / 2010
Current Assets / 297.678.924 / 273.410.595
Cash and Cash Equivalents / 5 / 51.774.881 / 22.028.301
Trade Receivables / 8 / 10.551.340 / 16.761.819
Due from Related Parties / 5.632.065 / 2.943.516
Other Trade Receivables / 4.919.275 / 13.818.303
Other Receivables / 9 / 195.509.145 / 216.422.912
Due from Related Parties / 195.454.195 / 216.420.851
Other Receivables / 54.950 / 2.061
Inventories / 10 / 37.484.934 / 14.148.849
Other Current Assets / 18 / 2.358.624 / 4.048.714
Non-current Assets / 186.424.631 / 96.996.526
Other Receivables / 9 / 117.773 / 87.612
Financial Investments / 6 / 9.990.294 / 9.990.294
Investment Property / 11 / 53.213.120 / -
Property, Plant and Equipment / 12 / 61.142.685 / 56.537.718
Intangible Fixed Assets / 13 / 60.272.410 / 29.798.114
Goodwill / 14 / - / -
Deferred Tax Assets / 27 / 283.723 / 152.319
Other Non-current Assets / 19 / 1.404.626 / 430.469
TOTAL ASSETS / 484.103.555 / 370.407.121
Audited / Audited
31 December / 31 December
LIABILITIES / Notes / 2011 / 2010
Current Liabilities / 34.255.807 / 23.590.464
Financial Leasing Liabilities / 7 / 1.088.279 / -
Trade Payables / 8 / 21.446.006 / 9.858.480
Due to Related Parties / 4.207.594 / 480.402
Other Trade Payables / 17.238.412 / 9.378.078
Other Payables / 9 / 2.899.564 / 3.532.203
Due to Related Parties / 1.236.226 / 1.096.446
Other Payables / 1.663.338 / 2.435.757
Current Tax Liability / 27 / 4.841.044 / 4.592.590
Provisions / 16 / 2.516.075 / 1.114.504
Other Current Liabilities / 19 / 1.464.839 / 4.492.687
Non-current Liabilities / 6.391.196 / 4.255.816
Financial Leasing Liabilities / 7 / 1.444.261 / -
Provisions for Employee Benefits / 18 / 4.946.935 / 4.255.816
EQUITY / 443.456.552 / 342.560.841
Share Capital / 20 / 148.867.243 / 148.867.243
Inflation Adjustments to Share Capital / 20 / 16.377.423 / 16.377.423
Premium in Excess of Par / 20 / 132.368 / 132.368
Subsidiary Emission Premiums / 20 / 6.175.274 / 6.175.274
Valuation Funds / 20 / 19.749.007 / 21.877.363
Legal Reserves / 20 / 11.273.635 / 9.321.591
Special Reserves / 20 / - / -
Retained Earnings / 20 / 139.985.891 / 102.641.202
Net Profit / (Loss) for the Period / 100.895.711 / 37.168.377
TOTAL LIABILITIES AND EQUITY / 484.103.555 / 370.407.121
2
The accompanying notes form an integral part of these financial statements.
Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş.
Statement of Comprehensive Income for the Period Ended 31 December 2011
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
1 January - / 1 January -31 December / 31 December
Notes / 2011 / 2011
Sales revenue / 21 / 172.521.194 / 83.794.267
Cost of sales (-) / Cost of services(-) / 21 / (65.615.478) / (40.176.776)
Gross profit / 106.905.716 / 43.617.491
Marketing, selling and distribution expenses (-) / 22 - 23 / (8.990.046) / (5.438.014)
General administrative expenses (-) / 22 – 23 / (17.344.737) / (12.653.243)
Other operating income / 24 / 16.042.780 / 3.858.655
Other operating expenses (-) / 24 / (3.325.557) / (6.635.867)
Operating profit / 93.288.156 / 22.749.022
Financial income / 25 / 37.468.712 / 24.736.246
Financial expenses (-) / 26 / (4.521.867) / (1.857.626)
Profit before taxation from continued operations / 126.235.001 / 45.627.642
Tax charge from continued operations / (25.339.290) / (8.459.265)
Current tax charge / 27 / (25.470.694) / (9.759.957)
Deferred tax benefit / (charge) / 27 / 131.404 / 1.300.692
Profit from continued operations / 100.895.711 / 37.168.377
Profit / (loss) after taxation from discontinued operations / - / -
Profit / (loss) for the period / 28 / 100.895.711 / 37.168.377
Other comprehensive income / - / 3.602.091
Changes in revaluation fund of property, plant and equipment / - / 3.602.091
Total comprehensive income / 100.895.711 / 40.770.468
Earnings per share / 28 / 0,00678 / 0,00250
4
The accompanying notes form an integral part of these financial statements.
Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş.
Statement of Changes in Equity for the Period Ended 31 December 2011
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
Notes / Share Capital / Inflation Adjustments to Share Capital / Premium in Excess of Par / Subsidiary Emission Premiums / Valuation Funds / Legal Reserves / Special Reserves / Retained Earnings / (Accumulated Losses) / Net Profit / (Loss) for the Period) / Total EquityBalances as of 1 January 2011, / 148.867.243 / 16.377.423 / 132.368 / 6.175.274 / 21.877.363 / 9.321.591 / - / 102.641.202 / 37.168.377 / 342.560.841
Transfers / 20 / - / - / - / - / - / - / - / 37.168.377 / (37.168.377) / -
Valuation fund depreciation charge / 20 / - / - / - / - / (2.128.356) / - / - / 2.128.356 / - / -
Legal reserves / 20 / - / - / - / - / - / 1.952.044 / - / (1.952.044) / - / -
Total comprehensive income for the period / 28 / - / - / - / - / - / - / - / - / 100.895.711 / 100.895.711
Balance as of 31 December 2011 / 148.867.243 / 16.377.423 / 132.368 / 6.175.274 / 19.749.007 / 11.273.635 / - / 139.985.891 / 100.895.711 / 443.456.552
Balances as of 1 January 2010 / 148.867.243 / 16.377.423 / 132.368 / 6.175.274 / 19.391.476 / 8.467.338 / 75 / 82.952.277 / 19.426.974 / 301.790.448
Transfers / 20 / - / - / - / - / - / - / - / 19.426.974 / (19.426.974) / -
Valuation fund depreciation charge / 20 / - / - / - / - / (1.116.204) / - / - / 1.116.204 / - / -
Legal reserves / 20 / - / - / - / - / - / 854.253 / - / (854.253) / - / -
Amortization of property, plant and equipment renovation fund / 20 / - / - / - / - / - / (75) / - / - / (75)
Total comprehensive income for the period / 28 / - / - / - / - / 3.602.091 / - / - / - / 37.168.377 / 40.770.468
Balance as of 31 December 2010 / 148.867.243 / 16.377.423 / 132.368 / 6.175.274 / 21.877.363 / 9.321.591 / - / 102.641.202 / 37.168.377 / 342.560.841
4
The accompanying notes form an integral part of these financial statements.
Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş.
Statement of Cash Flows for the Period Ended 31 December 2011
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
1 January - / 1 January -31 December / 31 December
STATEMENT OF CASH FLOWS / Notes / 2011 / 2010
Net profit for the period / 100.895.711 / 37.168.377
- Amortization and depreciation of fixed assets / 12 – 13 / 19.880.900 / 18.768.934
- Provision for employment termination benefits / 18 / 872.499 / 956.565
- Provision for unused vacation and seniority allowance / 18 / 71.550 / 330.313
- Allowance for diminution in value of inventories / 10 / 63 / (73.181)
- Provisions released / 16 / (195.071) / (58.000)
- Provision for doubtful receivables / 8 / (80.573) / (42.665)
- Tax expense / 27 / 25.339.290 / 8.459.265
- Interest income / 25 / (23.037.524) / (21.309.413)
- Unrealized foreign exchange (gains) / losses / 25 - 26 / (8.788.215) / (2.683.272)
- Discount expense / (income) / 25 / 56.524 / (541.719)
- (Gain) / loss on sales of fixed assets / 24 / 1.467 / (38.172)
- Other provisions / 16 / 362.516 / 381.101
Operating cash flows provided before changes in
working capital / 115.379.137 / 41.318.133
(Increase) / decrease in trade receivables / 8 / 6.157.309 / 1.773.168
(Increase) / decrease in inventories / 10 / (23.336.148) / (7.215.700)
(Increase) / decrease in other receivables / 9 / (33.025.617) / (11.293.871)
Increase / (decrease) in trade payables / 8 / 11.664.745 / 2.722.679
(Increase) / decrease in other current assets / 19 / 715.933 / (3.491.042)
Increase / (decrease) in provisions / 16 / 1.234.126 / 133.798
Increase / (decrease) in other payables / 19 / (632.639) / 1.813.163
Increase / (decrease) in other current and non-current liabilities / 19 / (3.046.788) / (9.282.486)
Income taxes paid / 27 / (25.222.240) / (2.857.313)
Interest paid / 26 / (713.854) / (355.706)
Employment termination benefits paid / 18 / (181.380) / (357.292)
Unused vacation rights paid / 18 / (52.610) / -
Cash (used in) / generated from operations / 48.939.974 / 12.907.531
Cash flows from investing activities
Acquisitions of fixed assets / 11 – 12 - 13 / (50.778.477) / (15.619.044)
Proceeds from sales of fixed assets / 12 - 13 / 123.627 / 287.562
Interest received / 23.751.378 / 21.665.119
Net cash generated from investing activities / (26.903.472) / 6.333.637
Cash flows from financing activities
Cash paid on finance leases / 7 / (1.061.242) / -
Financial borrowings paid / 7 / - / (28)
Effect of foreign exchange (gains) / losses / 25 - 26 / 8.771.320 / 2.683.272
Net cash used in financing activities / 7.710.078 / 2.683.244
Increase / (decrease) in cash and cash equivalents / 29.746.580 / 21.924.412
Cash and cash equivalents at the beginning of the period / 5 / 22.028.301 / 103.889
Cash and cash equivalents at the end of the period / 5 / 51.774.881 / 22.028.301
5
The accompanying notes form an integral part of these financial statements.
Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş.
Notes to the Financial Statements for the Period Ended 31 December 2011
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
1. Organization and Operations of the Company
Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş. (“the Company”) was established in 1994 and the Company engages in mining; mine ore and mineral extraction; mine processing; purification and refining of any kind of mine that it produces or provides; establishing and operating cogeneration plants for the need of electricity, energy and steam needs; excess energy sales; all kinds of fiber production from glass mine and mine in general; all kinds of production using fiber; electricity production and distribution and establishing and operating electricity plants; any kind of trading businesses in relation to such plants; establishing and processing plants for the electrical energy production and also engages in the acquisition, performing leasing transactions and energy sale of electrical energy production companies to companies with wholesale and retail licenses as well as regular customers through bilateral agreements.
Upon the approval and issuance of Decision No: 6/141 by Capital Markets Board (the “CMB) on 24 March 20010 and the General Assembly’s approval registered on 30 April 2010, the Company has merged with Ceytaş Madencilik Tekstil Sanayi ve Ticaret A.Ş. through take over applying the requirements set out in Article 451 of the Turkish Commercial Code and Articles 18 - 20 of the Corporate Tax Law in accordance with the CMB’s Communiqué Serial: I, No: 31 “Principles of Business Combinations”.
The Company’s legal headquarter is located at Paşalimanı Caddesi No: 41 Üsküdar / Istanbul. One of the Company’s branches, “Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş. Madenköy Branch” is established in Madenköy - Şirvan / Siirt and engages in concentrated copper production and one of its other branches, “Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş. Silopi Branch”, is established for extracting asphaltite in Silopi / Şırnak. One of its branches, which is established to engage in the textile business and is located at Kapıkule Yolu in Edirne, has become idle since the Company has ceased its textile operations. Similarly, another branch of the Company established to operate as a spinning mill in Ceyhan / Adana which was taken over following the merger is also an idle facility. As of 30 December 2011, the Company has 635 employees (31 December 2009: 516).