Financial Position A&T Finansal Kiralama A.Ş. Annual Report 2024 102 103 (Amounts expressed Turkish lira (“TL”) unless otherwise indicated.) (Amounts expressed Turkish lira (“TL”) unless otherwise indicated.) A&T FİNANSAL KİRALAMA A.Ş. A&T FİNANSAL KİRALAMA A.Ş. NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024 NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024 A& FİNANSAL KİRAL MA A. Ş. NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024 (Amounts expressed Turkish lira (“TL”) unless otherwise indicated.) 43 19 - NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (Continued) b3 Interest rate risk The Company’s operations are subject to the risk of interest rate fluctuations to the extent that interestearning assets and interest-bearing liabilities mature or reprise at different times or in differing amounts. In the case of floating rate assets and liabilities the Company is also exposed to basis risk, which is the difference in reprising characteristics of the various floating rate indices. Risk management activities are aimed at optimizing net interest income, given market interest rate levels consistent with the Company’s business strategies. As at 31 December 2024, according to the analyses calculated by the Company, in case of a 5% increase/(decrease) in foreign currency interest rates with all other variables held constant, the net present value of floating rate financial liabilities would increase/(decrease) by USD 1,089 and EUR 169,099 (31 December 2023: USD 975,21, EUR 175,362). As at 31 December 2024 and 31 December 2023, the Company's interest rate sensitive financial instruments are as follows: 31 December 2024 31 December 2023 Financial assets and liabilities with fixed interest Time deposits 77,977,766 34,698,225 Financial lease receivables, net 1,434,779,323 1,220,940,940 Funds borrowed 97,193,815 198,613,282 Financial assets and liabilities with variable interest Financial lease receivables, net 3,022,747 2,896,137 Funds borrowed 1,296,844,139 1,018,242,008 The tables below analyze the Company's non-derivative financial assets and liabilities according to the appropriate maturity grouping, based on the contract's repricing date as of the balance sheet date. 31 December 2024 In 3 months 3 Month – 1Year 1-5 Years Interest Free Total Cash, cash equivalents and the Central Bank 77,977,766 -- -- 80,099,010 158,076,777 Receivables from leasing transactions(net) 315,863,953 578,116,668 539,028,387 -- 1,433,009,008 Investments under leasing -- -- -- 8,055,370 8,055,370 Other receivables related to leasing transactions -- -- -- 11,637,626 11,637,626 Advances given for leasing transactions -- -- -- 22,367,796 22,367,796 Property, plant and equipment, net -- -- -- 69,100,092 69,100,092 Intangible assets, net -- -- -- 4,945,010 4,945,010 Deferred tax assets -- -- -- 2,295,782 2,295,782 Other Assets 6,817,480 6,817,480 Total Assets 393,841,720 578,116,668 539,028,387 205,318,165 1,716,304,940 Funds borrowed 928,001,122 425,376,232 40,660,600 -- 1,394,037,954 Other obligations -- -- -- 37,900,938 37,900,938 Provisions -- -- -- 24,258,980 24,258,980 Current tax debt -- -- -- 9,400,331 9,400,331 Total liabilities 928,001,122 425,376,232 40,660,600 71,560,249 1,465,598,203 Net repricing position (534,159,402) 152,740,436 498,367,787 133,757,916 250,706,737 A& FİNANSAL KİRAL MA A. Ş. NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024 (Amounts expressed Turkish lira (“TL”) unless otherwise indicated.) 44 19 - NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (Continued) 31 December 2023 In 3 months 3Month- 1Year 1-5 Years Interest Free Total Cash, cash equivalents and the Central Bank 182,256,963 -- -- -- 182,256,963 Receivables from leasing transactions(net) 263,907,511 411,149,136 543,353,068 -- 1,218,409,715 Investments under leasing -- -- -- 10,905,662 10,905,662 Other receivables related to leasing transactions -- -- -- 10,427,114 10,427,114 Advances given for leasing transactions -- -- -- 3,000 3,000 Property, plant and equipment, net -- -- -- 53,964,240 53,964,240 Intangible assets, net -- -- -- 4,906,751 4,906,751 Deferred tax assets -- -- -- 539,447 539,447 Other assets -- -- -- 7,005,705 7,005,705 Total assets 446,164,474 411,149,136 543,353,068 87,751,919 1,488,418,597 Funds borrowed 569,733,847 647,121,443 -- -- 1,216,855,290 Other obligations -- -- -- 42,965,990 42,965,990 Provisions -- -- -- 8,781,185 8,781,185 Current tax debt -- -- -- 4,598,823 4,598,823 Deferred tax liabilities -- -- -- -- - Total liabilities 569,733,847 647,121,443 -- 56,345,998 1,273,201,288 Net repricing position (123,569,373) (235,972,307) 543,353,068 31,405,921 215,217,309 Fair value of financial instruments Fair value is the price that would be received to sell an asset or paid except compulsory sales and Nonperforming loans to transfer a liability in an orderly transaction between market participants at the measurement date. The estimated fair values of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, judgment is necessarily required to interpret market data to estimate the fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The fair values of certain financial assets and liabilities excluding finance lease receivables and borrowings are considered to approximate their respective carrying values due to their short-term nature. Fair value of financial assets is measured according to the assumptions based on quoted bid prices of similar assets, or amounts derived from cash flow models. The table below indicates the fair value of the financial assets which are stated at amortized cost in the statement of financial position: Carrying amount Fair value 31 December 2024 31 December 2023 31 December 2024 31 December 2023 Banks 158,091,057 182,281,571 158,076,777 182,256,963 Finance lease receivables 1,433,009,008 1,218,409,715 1,399,994,510 1,190,339,281 Funds borrowed 1,394,037,954 1,216,855,290 1,250,572,818 1,108,713,867
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