Financial - Turkish Airlines

(Convenience Translation of Report and Financial Statements Originally Issued in Turkish)TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIESNotes to the Audited Consolidated Financial StatementsFor the Year Ended 31 December 2012(All amounts are expressed in Turkish Lira (TL) unless otherwise stated.)10. TRADE RECEIVABLES AND PAYABLESShort-term trade receivables are as follows:31 December 2012 31 December 2011Trade receivables 831.808.273 837.720.730Due from related parties (Note 37) 18.975.259 6.969.060Allowance for doubtful receivables (73.380.910) (79.913.899)777.402.622 764.775.891The Group provided provision for the receivables carried to legal proceedings and for the others by making historicalstatistical calculations. Movement of the doubtful receivables for the period ended 31 December 2012 and 2011 are asfollows:1 January - 1 January -31 December 2012 31 December 2011Opening Balance 79.913.899 70.377.121Charge for the period 13.362.362 25.733.253Collections during the period (16.012.185) (13.071.676)Currency translation adjustment (3.883.166) 476.370Receivables written-off - (3.601.169)Closing Balance 73.380.910 79.913.899Explanations about the credit risk of Group’s receivables are provided in Note 38 Credit Risk.Short-term trade payables are as follows:31 December 2012 31 December 2011Trade payables 695.190.493 685.188.842Due from related parties (Note 37) 215.000.995 180.943.942Other 2.132.786 4.307.686912.324.274 870.440.47011. OTHER RECEIVABLES AND PAYABLESOther short-term receivables are as follows:31 December 2012 31 December 2011Prepayments made for aircrafts, to be received back in cash (net) 475.603.418 710.354.962Restriction on transfer of funds from banks (*) 160.469.134 55.060.221Receivables from purchasing transactions abroad 97.545.951 7.779.605V.A.T Return 11.832.018 12.815.278Receivables from training of captain candidates 2.751.021 2.155.594Receivables from employees 2.511.696 2.808.754Nontrading receivables from related parties (Note 37) 8.531 58.082Other receivables 3.404.331 1.667.380754.126.100 792.699.876(*)As of 31 December 2012, the balance of this account is related to bank balances and blocked deposits inJohannesburg, Khartum, Cidde, Bangladeş, Akra, Addis Ababa, Taşkent, Sao Paulo, Mumbai, Kazablanka, Bingazi,Misurata,and Tripoli.32 TÜRK HAVA YOLLARI ANNUAL REPORT 2012