Menderes Tekstil Sanayi ve Ticaret Anonim Sirketi : 30.09.2022 Financial Statements

MENDERES TEKSTİL SANAYİ VE TİCARET A.Ş.

CONSOLIDATED FINANCIAL STATEMENTS

AND AUDITORS' REVIEW REPORT

FOR THE INTERIM PERIOD ENDED AT 30 SEPTEMBER 2022

CONTENTS	PAGE
Consolidated Financial Statements	1-2
Consolidated Income Statements and Other Comprehensive Income Statements	3-4
Consolidated Changes in Equity Statements	5
Consolidated Cash Flows Statements	6-7
Notes to the Consolidated Financial Statements	8-81
NOTE 1	Organization and Nature of Activities………………………………………………………………………………………………………	8-9
NOTE 2	Basis of Presentation of Financial Statements………………………………………………………………………………………………	10-28
NOTE 3	Segment Reporting…………………………………………………………………………………………………………………………	29-32
NOTE 4	Cash and Cash Equivalents …………………………………………………………………………………………………………………	33
NOTE 5	Financial Investments………………………………………………………………………………………………………………………	33
NOTE 6	Related Party Transactions …………………………………………………………………………………………………………………	34-38
NOTE 7	Trade Receivables and Trade Payables………………………………………………………………………………………………………	39-40
NOTE 8	Financial Borrowings………………………………………………………………………………………………………………………	41-43
NOTE 9	Other Receivables and Payables……………………………………………………………………………………………………………	44
NOTE 10	Derivative Instruments………………………………………………………………………………………………………………………	45
NOTE 11	Inventories……………………………………………………………………………………………………………………………………	45
NOTE 12	Biological Assets……………………………………………………………………………………………………………………………	45
NOTE 13	Prepaid Expenses and Deferred Income……………………………………………………………………………………………………	46
NOTE 14	Current Period Tax Income Assets…………………………………………………………………………………………………………	46
NOTE 15	Investments Valued with Equity Pick-up Method……………………………………………………………………………………………	47
NOTE 16	Investment Properties………………………………………………………………………………………………………………………	48
NOTE 17	Tangible Fixed Assets ………………………………………………………………………………………………………………………	49-50
NOTE 18	Right of Use Assets …………………………………………………………………………………………………………………………	50
NOTE 19	Intangible Assets ……………………………………………………………………………………………………………………………	51
NOTE 20	Provisions, Contingent Assets and Liabilities………………………………………………………………………………………………	52-54
NOTE 21	Short Term Provisions………………………………………………………………………………………………………………………	55
NOTE 22	Employee Benefit Liabilities…………………………………………………………………………………………………………………	56
NOTE 23	Other Current Assets and Liabilities…………………………………………………………………………………………………………	56
NOTE 24	Share Capital…………………………………………………………………………………………………………………………………	56-60
NOTE 25	Sales and Cost of Sales………………………………………………………………………………………………………………………	61-63
NOTE 26	Research and Development General Administrative Expenses and Marketing Expenses…………………………………………………	64-65
NOTE 27	Other Operating Income/(Expenses)…………………………………………………………………………………………………………	66
NOTE 28	Investment Activities Income / (Expenses)…………………………………………………………………………………………………	67
NOTE 29	Finance Income / (Expenses)………………………………………………………………………………………………………………	68
NOTE 30	Tax Assets and Liabilities……………………………………………………………………………………………………………………	69-71
NOTE 31	Earnings Per Share…………………………………………………………………………………………………………………………	71
NOTE 32	Financial Instruments………………………………………………………………………………………………………………………	71
NOTE 33	Nature and Level of Risks Derived From Financial Instruments……………………………………………………………………………	72-78
NOTE 34	Financial Instruments (Fair Value Disclosures and Hedge Accounting Disclosures)………………………………………………………	79-81

MENDERES TEKSTİL SANAYİ VE TİCARET ANONİM ŞİRKETİ

CONSOLIDATED BALANCE SHEETS AS OF 30 SEPTEMBER 2022

(Currency - Turkish Lira 'TRY' unless expressed otherwise)

		Unreviewed	Audited
	Footnote	Current Period	Prior Period
ASSETS	References	30.09.2022	31.12.2021
Current Assets		2,772,759,941	1,454,979,574
Cash and Cash Equivalents	4	24,154,198	118,035,517
Financial Investments	5	1,855,070	-
Trade Receivables		804,511,287	373,941,123
Trade Receivables from Related Parties	6-7	386,867,441	188,541,819
Trade Receivables from Third Parties	7	417,643,846	185,399,304
Other Receivables		146,259,680	161,775,794
Other Receivables from Related Parties	6-9	126,306,705	152,062,297
Other Receivables from Third Parties	9	19,952,975	9,713,497
Derivative Financial Instruments	10	4,762,115	-
Inventories	11	1,626,284,908	683,151,692
Biological Assets	12	35,623,787	9,385,653
Prepaid Expenses	13	30,591,165	21,442,802
Current Tax Assets	14	2,757,014	1,868,281
Other Current Assets	23	95,960,717	85,378,712
Non-Current Assets		2,464,981,675	2,350,372,967
Other Receivables	9	144,597	142,248
Investments Valued by Equity Pick-up Method	15	84,505,186	83,566,338
Investment Properties	16	139,757,592	139,757,592
Tangible Assets	17	1,964,692,703	1,968,553,618
Intangible Assets	19	21,825,701	17,403,176
Prepaid Expenses	13	31,652,049	1,686,080
Deferred Tax Assets	30	222,403,847	139,263,915
TOTAL ASSETS		5,237,741,616	3,805,352,541

The accompanying notes form an integral part of these financial statements.

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MENDERES TEKSTİL SANAYİ VE TİCARET ANONİM ŞİRKETİ

CONSOLIDATED BALANCE SHEETS AS OF 30 SEPTEMBER 2022

(Currency - Turkish Lira 'TRY' unless expressed otherwise)

		Unreviewed	Audited
	Footnote	Current Period	Prior Period
LIABILITIES	References	30.09.2022	31.12.2021
Current Liabilities		2,393,504,250	1,674,044,877
Financial Borrowings	8	1,215,627,916	704,769,579
Current Installments of Long Term Financial Borrowings	8	364,664,909	599,100,695
Trade Payables	7	705,410,451	293,912,845
Employee Benefit Liabilities	22	38,678,696	26,603,146
Other Payables		4,448,030	7,984,705
Other Payables to Related Parties	6-9	38,751	3,865,219
Other Payables to Third Parties	9	4,409,279	4,119,486
Deferred Income	13	40,434,195	25,968,931
Current Tax Liabilities of Period Profit	30	1,364,272	1,727,939
Current Provisions		22,875,781	13,977,037
Provision for employee benefits	21	18,903,544	9,698,737
Other current provisions	21	3,972,237	4,278,300
Non-Current Liabilities		1,235,517,323	1,109,201,586
Long Term Borrowings	8	864,143,355	776,793,301
Long Term Provisions		120,398,500	78,630,230
Long Term Provisions for Employee Benefits	21	120,398,500	78,630,230
Deferred Tax Liabilities	30	250,975,468	253,778,055
Equity		1,608,720,043	1,022,106,078
Parent Company's Equity		1,588,621,418	1,007,900,874
Paid in Capital	24.1	250,000,000	250,000,000
Inflation Adjustments of Capital	24.2	860,487	860,487
Accumulated Other Comprehensive Income or Expenses not to be
Reclassified on Profit or Loss
Gains / losses on revaluation and remeasurement
-Increase / Decrease on Revaluation of Tangible Assets	24.3	1,203,535,433	1,203,535,433
-Defined Benefit Plans Re-Measurement Gains / (Losses)	24.3	7,224,720	11,386,834
Accumulated Other Comprehensive Income or Expenses to be
Reclassified on Profit or Loss
Share of other comprehensive income of investments accounted
for using the equity method that will not be reclassified to profit or
loss	24.4	42,649,562	42,649,562
Restricted Reserves		10,340,261	10,340,261
Legal Reserves	24.5	10,340,261	10,340,261
Retained Earnings / Losses	24.6	(510,871,703)	(243,093,206)
Net Profit / (Loss) for the Period	31	584,882,658	(267,778,497)
Minority Interests	24.7	20,098,625	14,205,204
TOTAL LIABILITIES AND EQUITY		5,237,741,616	3,805,352,541

The accompanying notes form an integral part of these financial statements.

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MENDERES TEKSTİL SANAYİ VE TİCARET ANONİM ŞİRKETİ

CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME STATEMENT

FOR THE PERIOD OF 1 JANUARY-30 SEPTEMBER 2022

(Currency - Turkish Lira 'TRY' unless expressed otherwise.)

		Unrewieved	Unrewieved	Unrewieved	Unrewieved
		Current Period	Prior Period	Prior Period	Prior Period
		01.01-	01.01-	01.07-	01.07-
	Footnotes	30.09.2022	30.09.2021	30.09.2022	30.09.2021
Revenue	25.1	3,082,300,820	1,477,986,841	1,279,005,231	634,638,347
Cost of Sales (-)	25.2	(2,004,735,898)	(1,222,681,824)	(916,805,960)	(531,913,167)
Gross Profit / (Loss)		1,077,564,922	255,305,017	362,199,271	102,725,180
General Administrative Expenses (-)	26.3	(58,052,952)	(28,947,796)	(28,006,587)	(9,553,584)
Marketing Expenses (-)	26.2	(79,590,566)	(40,816,536)	(40,748,183)	(16,898,575)
Research and Development
Expenses (-)	26.1	(9,583,129)	(6,561,145)	(4,721,107)	-
Other Operating Income	27.1	251,105,474	70,742,503	70,201,081	11,423,399
Other Operating Expenses (-)	27.2	(157,270,660)	(41,385,922)	(39,724,942)	(5,243,759)
Operating Profit / (Loss)		1,024,173,089	208,336,121	319,199,533	82,452,661
Income from Investment Activities	28.1	17,364,904	2,838,394	622,744	5,000
Expenses from Investment
Activities (-)	28.2	-	(40,219)	-	(39,402)
Shares of Profit/(Loss) from
Investments Valued by Equity Pick-up
Method	28.3	938,848	306,758	408,258	93,302
Operating Activity Profit/(Loss)
Before Financial Expense		1,042,476,841	211,441,054	320,230,535	82,511,561
Financial Income	29.1	54,199,042	35,805,993	7,199,652	8,310,193
Financial Expenses (-)	29.2	(589,758,960)	(252,389,318)	(178,992,944)	(18,996,506)
Operating Activity Profit/(Loss)
Before Taxation		506,916,923	(5,142,271)	148,437,243	71,825,248
Operating Activity Tax
Income/(Expense)
Current Tax Income/(Expense)	30	(1,364,272)	(1,518,575)	1,305,969	243,603
Deferred Tax Income/(Expense)	30	85,266,928	9,919,833	140,796,597	(18,923,006)
Current Period Operating Activity
Profit / (Loss)		590,819,579	3,258,987	290,539,809	53,145,845
Profit/(Loss) for the Period		590,819,579	3,258,987	290,539,809	53,145,845
Distribution of the Period
Income/(Loss)
Minority Interests	24.7	5,936,921	731,464	(2,249,274)	(475,265)
Parent Company's Shares	31	584,882,658	2,527,523	292,789,083	53,621,110
Earnings Per Share	31	2.3395	0.0101	1.1712	0.2145

The accompanying notes form an integral part of these financial statements.

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