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.)Long-term other receivables are as follows:31 December 2012 31 December 2011Prepayments made for aircrafts, to be received back incash (net) 1.167.114.676 409.666.323Restriction on transfer of funds from banks (*) 176.900.543 -Receivables from investment assistance (Note 2.7) 107.714.141 44.013.416Interest swap agreement deposits 44.677.053 31.563.519Deposits and guarentees given 26.601.535 20.534.470Receivables from employees 17.683.343 13.673.264Receivables from training of captain candidates 11.496.227 28.526.223Receivables from Sita deposit certificates 1.643.236 1.484.013Receivables from purchasing transactions abroad - 65.136.8781.553.830.754 614.598.106(*)As of 31 December 2012, the balance of this account is related to bank balances and blocked deposits in Şam, Tahran, Şiraz, Tebriz,Kirmenşah,and Mashad.Short-term other payables are as follows:31 December 2012 31 December 2011Payables to insurance companies 40.187.640 24.514.696Social security premiums payable 36.021.871 56.256.374Taxes and funds payable 24.282.062 34.799.256Deposits and guarantess received 21.881.619 24.359.807Other advances received 20.187.231 5.256.463Charter advances 1.041.539 2.202.096Other liabilities 9.892.163 3.944.158153.494.125 151.332.850Long-term other payables are as follows:31 December 2012 31 December 2011Deposits and guarantees received 15.659.634 11.439.39412. RECEIVABLES AND PAYABLES FROM FINANCIAL SECTOR OPERATIONSNone (31 December 2011: None).13. INVENTORIES31 December 2012 31 December 2011Spare parts 230.339.657 224.154.746Other inventories 46.562.105 45.186.648276.901.762 269.341.394Provision for impairment (-) (17.701.999) (17.555.587)259.199.763 251.785.80733