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					BOSSA TİCARET VE SANAYİ İŞLETMELERİ T.A.Ş.

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2009
(Amounts expressed in Turkish Lira (“TRY”) unless otherwise indicated.)


NOTE 1 - ORGANISATION AND NATURE OF OPERATIONS

Bossa Ticaret ve Sanayi İşletmeleri T.A.Ş. (“Bossa” or the “Company”) was established in 1951 as a
Turkish company. The company was established for the primary purpose of manufacturing, marketing
and selling textile products. In 2008, the Company established Atatürk Airport Free Trade Zone
Branch in order to manage their export operations.

Hacı Ömer Sabancı Holding has owned the 50.12% shares of Bossa until 22 October 2008. As of
22 October 2008 Akkardan Sanayi and Ticaret A.Ş. has aquired the 50,12% shares. As a result of this
transaction Akkardan Sanayi and Ticaret A.Ş. became the ultimate parent company.

On average 1.768 personnel are employed by the Company (31 December 2008: 1.935).

The Company is registered in Turkey and the address of the registered office is as follows:

Güzelevler Mahallesi Girne Bulvarı No: 296 01310 Yüreğir - ADANA


NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

2.1      Basis of presentation

The Capital Markets Board of Turkey (“CMB”) regulated the principles and procedures of
preparation, presentation and announcement of financial statements prepared by the entities with the
Communiqué No: XI-29, “Principles of Financial Reporting in Capital Markets” (“the
Communiqué”). This Communiqué is effective for the annual periods starting from 1 January 2008
and supersedes the Communiqué No: XI–25 “The Financial Reporting Standards in the Capital
Markets”. According to the Communiqué, entities shall prepare their financial statements in
accordance with International Financial Reporting Standards (“IAS/IFRS”) endorsed by the European
Union. Until the differences of the IAS/IFRS as endorsed by the European Union from the ones issued
by the International Accounting Standards Board (“IASB”) are announced by Turkish Accounting
Standards Board (“TASB”), IAS/IFRS issued by the IASB shall be applied. Accordingly, Turkish
Accounting Standards/ Turkish Financial Reporting Standards (“TAS/TFRS”) issued by the TASB
which are in line with the aforementioned standards shall be considered.

With the decision taken on 17 March 2005, the CMB has announced that, effective from 1 January
2005, for companies operating in Turkey and preparing their financial statements in accordance with
CMB Financial Reporting Standards the application of inflation accounting is no longer required.
Accordingly, the Company did not apply IAS 29 “Financial Reporting in Hyperinflationary
Economies” issued by the IASB in its financial statements for the accounting periods starting
1 January 2005.

As the differences of the IAS/IFRS endorsed by the European Union from the ones issued by the
IASB has not been announced by TASB as of date of preparation of these financial statements, the
financial statements have been prepared within the framework of Communiqué XI, No: 29 and related
promulgations to this Communiqué as issued by the CMB in accordance with the accounting and
reporting principles accepted by the CMB (“CMB Financial Reporting Standards”) which is based on
IAS/IFRS. The financial statements and the related notes to them are presented in accordance with the
formats required by the CMB including the compulsory disclosures. Accordingly, required
reclassifications have been made in the comparative financial statements.

                                                           7
NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.2   Adoption of new and revised standards

a)    The following standards are published in 2009 but they are not relevant to the Company’s
      operations:

      i)    Standards, amendments and interpretations that are effective beginning from 1 July 2009:

                  IAS 1, “Presentation of financial statements” Comprehensive Changes Related to
                   Requirement of Statement of Net Income Recognised Directly Under Equity
                  IAS 23, “(Amendment) Borrowing costs”.
                  IAS 32, “Financial Instruments: Presentation” Amendments “Puttable financial
                   instruments and obligations arising on liquidation”
                  IAS 39, “Financial Instruments: Recognition and Measurement” Amendments for
                   eligible hedged items
                  IFRS 1 (Amendment), “First time adoption of IFRS”
                  IFRS 2 (Amendment), “Share based payments”
                  IFRIC 15, “Agreements for construction of real estates”
                  IAS 31, (Amendment) “Interests in joint ventures”
                  IAS 28, (Amendment) “Investments in associates”
                  IFRS 8, “Operating segments”

      ii)   Effective for annual periods beginning on or after 1 July 2009

                  IAS 27 (Amendment), “Consolidated and Separate Financial Statements”
                  IFRS 3 (Amendment), “Business Combinations”
                  IFRS 5 (Amendment), “Non-current Assets Held for Sale and Discontinued
                   Operations”

b)    Standards, amendments and interpretations, that are effective in 2009 and are relevant to the
      Company’s interim financial statements:

                  IAS 40 (Amendment), “Investment Property”

2.3   Convenience translation into English of financial statements originally issued in Turkish

The accounting principles described in Note 2 to the financial statements (defined as “CMB Financial
Reporting Standards”) differ from IFRS issued by the International Accounting Standards Board with
respect to the application of inflation accounting for the period between 1 January - 31 December
2005. Accordingly, the accompanying financial statements are not intended to present the financial
position and results of operations in accordance with IFRS

2.4   Summary of Significant Accounting Policies

Preparation of financial statements necessitates the usage of estimates and assumptions that can affect
the amounts of reported assets and liabilities as at balance sheet date, the explanation for the
contingent assets and liabilities and the income and expenses reported during the accounting period.
Although these estimates and assumptions are based on Company management‟s best estimates
related with the current conditions and transactions, actual results may differ than these estimates.
NOTE 2 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.5   Summary of Significant Accounting Policies

The condensed interim financial statements related to the six month period ended have been prepared
in accordance with IAS 34, the standard of IFRS related to the preparation of interim period financial
statements. The accounting policies used in the preparation of the condensed interim financial
statements for the period ended 30 June 2009 are consistent with those used in the preparation of
financial statements for the year ended 31 December 2008. Accordingly, these condensed interim
financial statements should be read in conjunction with the statements for the year ended
31 December 2008.

Investment Property

Investment property is defined as property held to earn rentals or for capital appreciation or both,
rather than for: use in the production of supply of goods or services or for administrative purposes; or
sale in the ordinary course of business and according to cost accounting, has been accounted the cost
minus accumulated depreciation (excluded land) and less impairment amount, if consist (Note 7). The
estimated useful life of the building classified under investment property is 40 years.


NOTE 3 - CASH AND CASH EQUIVALENTS

                                                                   30 June 2009    31 December 2008

Bank
 - time deposits                                                              25.069.938             12.948.158
 - demand deposits                                                             5.121.815             18.826.683
Other                                                                          6.095                  6.745

                                                                              30.197.848             31.781.586

The time deposits are short term with maturities of less than three months as of 30 June 2009 and
30 June 2008.

Time deposits at 30 June 2009 are TRY denominated and interest rates vary between 9% and 13%
(31 December 2008: 16% - 23%).

Cash and cash equivalents included in the statements of cash flows at 30 June 2009 and 2008 are as
follows:

                                                                   30 June 2009            30 June 2008

Cash and banks                                                                30.197.848             38.502.954
Less: interest accrued                                                       (22.438)              (238.077)

                                                                              30.175.410             38.264.877
NOTE 4 - BORROWINGS

                                             30 June 2009               31 December2008
                                  Yearly effective                Yearly effective
                                  interest rate %         TRY     interest rate%        TRY

Short term bank borrowings:

TRY borrowings                             13,09          13.853.787         15,50          8.665.975
US Dollar borrowings                        7,44          13.566.889          8,33         12.047.990
Euro borrowings                             8,22          11.807.950          8,59          6.422.400

                                                          39.228.626                       27.136.365

Interest accrued                                         828.136                          457.318

                                                                40.056.762                 27.593.683

                                             30 June 2009               31 December2008
                                  Yearly effective                Yearly effective
                                  interest rate %         TRY     interest rate%        TRY

Long Term Bank Borrowings:

US Dollar borrowings                           -            -                 8,33        352.870

                                               -            -                             352.870


NOTE 5 - TRADE RECEIVABLES AND PAYABLES

Short term trade receivables:                               30 June 2009      31 December 2008

Trade receivables                                                       42.876.990         47.031.861
Notes receivables                                                       23.232.584         25.240.196

                                                                        66.109.574         72.272.057

Less: unearned credit finance income (-)                              (585.233)           (727.461)
Provision for doubtful receivables (-)                                  (3.233.334)         (3.616.633)

Trade receivables, net                                                  62.291.007         67.927.963
NOTE 5 - TRADE RECEIVABLES AND PAYABLES (Continued)

The Company determines credit limits for its customers (excluding related parties) by using
receivable insurance, letter of guarantee, mortgage and other guarantees.

                                                                 30 June 2009   31 December 2008

Letter of guarantees taken                                                  5.706.470            5.740.822
Mortgages received                                                          4.312.250            3.220.750

Total                                                                     10.018.720             8.961.572

The analysis of overdue and impaired trade receivables are as follows;

Time elapsed after maturity                                      30 June 2009   31 December 2008

0 - 3 months                                                             444.171                76.852
3 - 9 months                                                              76.852               207.232
Over 9 months                                                              2.712.311             3.332.549

Total                                                                       3.233.334            3.616.633

The movements of the provision for doubtful receivables for the six-month period ended at 30 June
2009 and 2008 are as follows;
                                                               30 June 2009         30 June 2008

1 January                                                                   3.616.633            3.172.777
Additional provisions                                                     465.182              627.418
Provisions cancelled during the period                                   (848.481)            (310.923)

30 June                                                                     3.233.334            3.489.272

As at 30 June 2009 trade receivables are discounted with the interest rates 7,45%, 6,89%, 7.48% and
9,58% (31 December 2008: 8,86%, 6,92%, 8,65% and 16,73%) for Euro, US Dollar, GBP and TRY
denominated trade receivables respectively.

Short term trade payables:                                       30 June 2009   31 December 2008

Payables to suppliers                                                      9.725.671            15.079.088
Notes payable                                                            164.475               171.157
Unincurred credit finance charges (-)                                    (48.842)             (110.609)

                                                                            9.841.304           15.139.636

As at 30 June 2009 trade payables are discounted with the interest rates 7,68%,7,18% and 9,54%
(31 December 2008: 8,89%, 7,38% and 16,88%) for Euro, US Dollar and TRY denominated trade
payables respectively.
NOTE 6 - INVENTORIES

                                                                 30 June 2009      31 December 2008

Finished goods                                                               22.802.320           25.315.343
Semi-finished goods                                                          19.945.869           20.268.025
Raw materials                                                                18.769.793           24.264.501
Other inventories                                                             2.215.325            1.173.794

                                                                             63.733.307           71.021.663

The total amount of inventory expensed and included in the cost of goods sold for the period ended at
30 June 2009 is TRY 37.033.632 (30 June 2008: TRY 61.525.091).


NOTE 7 - INVESTMENT PROPERTY

The movements of the Company‟s investment property as of 30 June 2009 are as follows:

                                        1 January 2009           Additions             30 June 2009

Cost:
Land                                                    -                18.853.365               18.853.365
Buildings                                               -                 3.759.499                3.759.499

Total                                                   -                22.612.864               22.612.864

Accumulated depreciation:
Buildings                                               -               (47.110)                 (47.110)

Net book value                                          -                                         22.565.754

In accordance with the CMB „s Communiqué No: IV-29 No: 1, the fair value of related real estate is
TRY 26.075.550 according to expert report has been prepared at 13 February 2009.

Amortisation charges incurred during the six-month period ended at 30 June 2009 was accounted for
in general administrative expenses.
NOTE 8 - PROPERTY, PLANT AND EQUIPMENT

The movements of the Company‟s property, plant and equipment and amortization as of 30 June 2009
are as follows:

                             1 January                                                     30 June
                                  2009      Additions       Disposals     Transfers           2009

Cost:
Land                                  2.893.060     -               -             -               2.893.060
Land improvements                     8.817.836     -               -             -               8.817.836
Buildings                           102.807.136     -             (18.915)        -             102.788.221
Machinery and equipment             593.128.416    52.963          (5.227.938)   89.860         588.043.301
Motor vehicles                        2.582.085     -             (97.075)        -               2.485.010
Furniture and fixtures               13.380.167    40.550         (33.394)       19.875          13.407.198
Other tangible assets               570.302         -               -             -             570.302
Advances given and construction
 in progress                         77.112        23.187.784       -            (22.725.901)   538.995

                                    724.256.114    23.281.297      (5.377.322)   (22.616.166)   719.543.923

Accumulated depreciation:
Land improvements                    (4.226.264) (166.487)     -                   -              (4.392.751)
Buildings                           (52.557.473) (1.462.143) 18.915                -             (54.000.701)
Machinery and equipment            (478.058.696) (12.643.781) 5.227.938            -            (485.474.539)
Motor vehicles                       (1.486.083) (91.725)     34.747               -              (1.543.061)
Furniture and fixtures              (11.068.429) (332.666)    29.106               -             (11.371.989)
Other tangible assets              (567.056)     (297)         -                   -            (567.353)

                                   (547.964.001) (14.697.099)      5.310.706       -            (557.350.394)

Net book value                      176.292.113                                                 162.193.529

The depreciation charges incurred for the six-month period ended at 30 June 2009 was included under
following accounts, TRY 12.827.121 in cost of goods sold, TRY 308.327 in research and
development expenses, TRY 160.471 in marketing, selling and distribution expenses, TRY 869.748 in
general administrative expenses and TRY 531.432 in other expenses.
NOTE 8 - PROPERTY, PLANT AND EQUIPMENT (Continued)

The movements of the Company‟s property, plant and equipment and amortization as of 30 June 2008
are as follows:

                              1 January                                                    30 June
                                   2008      Additions     Disposals       Transfers          2008

Cost:
Land                                   3.876.683   -             (983.623)        -               2.893.060
Land improvements                     11.167.443   -               (2.349.607)    -               8.817.836
Buildings                            131.362.750   -              (28.675.821)    -             102.686.929
Machinery and equipment              594.179.785 228.586           (5.759.041)    4.334.976     592.984.306
Motor vehicles                         2.894.298   -             (216.839)        -               2.677.459
Furniture and fixtures                13.332.031 82.033          (107.053)       30.183          13.337.194
Other tangible assets                570.302       -                -             -             570.302
Advances given and construction
 in progress                            3.440.620     4.013.451 (33.839)          (4.495.834)      2.924.398

                                     760.823.912      4.324.070 (38.125.823) (130.675)          726.891.484

Accumulated depreciation:
Land improvements                     (5.750.985) (182.950)     1.874.562          -              (4.059.373)
Buildings                            (72.898.563) (1.539.032) 23.345.174           -             (51.092.421)
Machinery and equipment             (461.738.892) (12.455.576) 5.217.998           -            (468.976.470)
Motor vehicles                        (1.485.137) (113.615)   137.437              -              (1.461.315)
Furniture and fixtures               (10.471.723) (392.712)   102.117              -             (10.762.318)
Other tangible assets               (566.482)     (278)         -                  -            (566.760)

                                    (552.911.782) (14.684.163) 30.677.288          -            (536.918.657)

Net book value                       207.912.130                                                189.972.827

The depreciation charges incurred for the six-month period ended 30 June 2008 was included in the
following accounts, TRY 13.146.264 in cost of goods sold, TRY 329.273 in research and
development expenses, TRY 157.560 in marketing, selling and distribution expenses, TRY 825.035 in
general administrative expenses and TRY 226.031 in other expenses.


NOTE 9 - INTANGIBLE ASSETS

The movements of intangible assets within the period are as follows:

                              1 January                                                    30 June
                                   2009      Additions     Disposals       Transfers          2009

Cost                                    4.763.881     -                -          3.302            4.767.183
Accumulated amortisation               (3.683.294) (228.900)           -          -               (3.912.194)

Net book value                          1.080.587                                               854.989
NOT 9 - INTANGIBLE ASSETS (Continued)

                               1 January                                                      30 June
                                    2008      Additions     Disposals         Transfers          2008

Cost                                     4.361.051     -            (3.823)        130.675           4.487.903
Accumulated amortisation                (3.227.117) (227.994)        3.823           -              (3.451.288)

Net book value                           1.133.934                                                   1.036.615

Amortisation charges incurred during the six-month period ended at 30 June 2009 and 2008 was
accounted for in general administrative expenses.


NOTE 10 - COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES
Contingent Assets and Liabilities:                                30 June 2009     31 December 2008

Guarantee letters given                                                        11.760.983           12.984.455

                                                                  30 June 2009     31 December 2008

Letters of guarantees taken                                                     6.347.261            6.395.932
Mortgages taken                                                                 4.498.250            3.406.750

                                                                               10.845.511            9.802.682

The Company has USD 24.951.435 export commitments related with the investment incentive
certificates obtained (31 December 2008: USD 67.521.298).


NOTE 11 - PROVISION FOR EMPLOYMENT TERMINATION BENEFITS
Long Term:                                                        30 June 2009     31 December 2008
Provision for employment termination benefits                                   7.576.414            7.829.153

Under the Turkish Labour Law, the Company is required to pay termination benefits to each
employee who has completed one year of service and whose employment is terminated without due
cause, or who is called up for military service, dies or retires after completing 25 years of service
(20 years for women) and achieves the retirement age (58 for women and 60 for men). Since the
legislation was changed on 23 May 2002 there are certain transitional provisions relating to the length
of service prior to retirement. The Company‟s provision for employment termination benefit,
employment termination benefit ceiling is regulated for every six months, is calculated from TRY
2.365,16 effective from 1 July 2009. The provision has been calculated by estimating the present
value of the future probable obligation of the Company arising from the retirement of the employees.
The Communique requires the Company to use actuarial valuation methods in the estimation of
employment termination benefit. Accordingly, the following assumptions were used in the calculation
of the total liability:
                                                                  30 June 2009     31 December 2008
Discount Rate                                                            %6,26                  %6,26
Turnover rate to estimate the probability of retirement                   %98                    %98
NOTE 11 - PROVISION FOR EMPLOYMENT TERMINATION BENEFITS (Continued)

Movements in the provision for employment termination benefits during the six-month periods ended
at 30 June 2009 and 2008 are as follows:

                                                                             2009                   2008

1 January                                                                        7.829.153              7.815.975
Increase during the period (*)                                                   2.050.379              1.445.872
Payments during the period                                                      (2.303.118)            (1.476.629)

30 June                                                                          7.576.414              7.785.218

(*)   The increases in provisions for employment termination benefits during the six-month period ended 30
      June 2009 and 2008 have been included in general administrative expenses.


NOTE 12 - EQUITY

The composition of the Company‟s statutory paid-in capital at 30 June 2009 and 31 December 2008
are as follows:

                                                  30 June 2009                  31 December 2008
                                                  TRY        Pay (%)               TRY       Pay (%)

Akkardan Sanayi ve Ticaret A.Ş.                     105.208.220 97,42                 78.950.424 73,10
Public quatation                                      2.791.780 2,58                  29.049.576 26,90

Share Capital                                       108.000.000 100,00               108.000.000 100,00

Adjustment to share capital                         149.104.739                      149.104.739

                                                    257.104.739                      257.104.739

Akkardan Sanayi Ticaret A.Ş. tookover the shares from the shareholders between 22 April 2009 and
6 May 2009, and result of the transaction the share premium increased to 97,42%

The legal reserves consist of first and second reserves, appropriated in accordance with the Turkish
Commercial Code (“TCC”). The TCC stipulates that the first legal reserve is appropriated out of
statutory profits at the rate of 5% per annum until the total reserve reaches 20% of the Company‟s
paid-in share capital. The second legal reserve is appropriated at the rate of 10% per annum of all cash
distributions in excess of 5% of the paid-in share capital. Under the TCC, the legal reserves can only
be used to offset loss and are not available for any other usage unless the loss exceeds 50% of paid-in
share capital.
NOTE 12 - EQUITY (Continued)

In accordance with the Communiqué No:XI-29 and related announcements of CMB, effective from
1 January 2008, “Share capital”, “Restricted Reserves” and “Share Premiums” shall be carried at their
statutory amounts. The valuation differences (such as inflation adjustment differences) shall be
disclosed as follows:

-     if the difference is arising due to the inflation adjustment of “Paid-in Capital” and not yet been
      transferred to capital should be classified under the “Inflation Adjustment to Share Capital”;

-     if the difference is due to the inflation adjustment of “Restricted Reserves” and “Share
      Premium” and the amount has not been utilised in dividend distribution or capital increase yet,
      it shall be classified under “Retained Earnings”.

Other equity items shall be carried at the amounts calculated based on CMB Financial Reporting
Standards.

Capital adjustment differences have no other use other than being transferred to share capital.

In accordance with the above explanations for the Communiqué No: XI-29, the composition of the
Company‟s shareholders‟ equity at 30 June 2009 and 2008 is as follows:

                                                                   30 June 2009     31 December 2008

Paid-in Capital                                                              108.000.000            108.000.000
Paid-in capital restatement difference                                       149.104.739            149.104.739
Share Issue premium                                                            3.435                  3.435
Restricted reserves                                                           33.945.028             23.436.587
Retained earnings/(accumulated deficit)                                       (8.871.161)           (15.506.551)
Net (loss)/ income for the period                                             (1.207.440)            26.143.831

Total shareholders’ equity                                                   280.974.601            291.182.041

The CMB Communiqué No: XI-29 is effective from its publishing in the official Gazette on 9 April
2008 and mandatory formats for the financial statements to be prepared in accordance with the
Communiqué No: XI-29 has been announced by the weekly bulletin numbered 2008/16 on 14 April
2008. As the announcement of these regulations occurred after the Company‟s General Assembly on
26 March 2008, the decision to distribute dividends from 2007 fiscal year profits has been taken
without taking into consideration the “Restricted Reserves” item which has been included in the
required financial statements format of the CMB.

In accordance with the Communiqué No: XI-29 and related announcements of CMB, the composition
of restricted reserves at 30 June 2009 and 31 December 2008 are as follows;

Restricted reserves                                                30 June 2009     31 December 2008

Gain on sale of marketable securities                                         16.247.079              7.329.940
First legal reserves                                                           9.923.765              8.692.463
Second legal reserves                                                          7.774.184              7.414.184

                                                                              33.945.028             23.436.587
NOTE 13 - SALES AND COST OF SALES

                                  1 January -         1 April -       1 January -         1 April -
                                 30 June 2009     30 June 2009       30 June 2008     30 June 2008

a)    Sales

Domestic sales                            55.342.333        29.894.329        77.556.907        41.671.290
Foreign sales                             54.634.964        30.146.868        75.284.356        34.694.086

                                         109.977.297        60.041.197       152.841.263        76.365.376

b)    Cost of Sales

Cost of domestic sales                    (49.871.353)     (27.139.492)       (60.436.648)     (30.822.728)
Cost of foreign sales                     (37.604.791)     (19.639.351)       (55.687.481)     (25.885.047)

                                          (87.476.144)     (46.778.843)      (116.124.129)     (56.707.775)


NOTE 14 - OPERATING EXPENSES

Research and Development Expenses

                                  1 January -         1 April -       1 January -         1 April -
                                 30 June 2009     30 June 2009       30 June 2008     30 June 2008

Personnel expenses                         1.091.022       572.373             1.362.567       730.091
Share of service department              902.086           441.938           963.813           484.782
Consultancy expense                      648.859           338.953           356.563           224.889
Depreciation expense                     308.327           153.874           329.273           165.413
Material expense                          69.633            40.255            60.700            29.778
Other                                    188.848           117.168           238.302           113.299

                                           3.208.775         1.664.561          3.311.218        1.748.252

Selling, Marketing and Distribution Expenses

Export expense                             4.716.790         2.237.787         4.511.405         2.296.518
Personnel expenses                         2.557.326         1.309.582         3.226.134         1.623.891
Advertisement expense                      2.278.817       718.535             1.805.421       850.844
Share of auxiliary departments           815.406           388.542           856.659           428.095
Communication expense                    612.365           574.537           755.474           366.140
Rent expense                             512.686           262.405           276.130           140.694
Travel expense                           314.365           180.658           541.649           221.385
Depreciation expense                     160.471            80.372           157.560            79.377
Other                                    792.179           410.680           657.596           316.307

                                          12.760.405         6.163.098        12.788.028         6.323.251
NOTE 14 - OPERATING EXPENSES (Continued)
General Administrative Expenses
                                  1 January -               1 April -         1 January -             1 April -
                                 30 June 2009           30 June 2009         30 June 2008         30 June 2008
Personnel costs                               7.881.797             3.457.185            7.899.573            4.107.865
Consultancy expense                           1.607.764           768.930                1.841.465            1.003.267
Depreciation expenses                         1.145.758           594.153                1.053.029          522.921
Insurance Expenses                          594.385               295.312              323.869              159.337
Share of auxiliary departments              399.674               141.601              410.289              198.166
Provision of unused vacation                373.423               263.332              373.009              132.300
Maintenance service                         314.498               163.537              500.228              492.920
Travel expenses                             281.540               131.776              333.885              144.126
Rent expenses                               169.972                86.379              156.431               91.923
Office expenses                             156.120                44.515              195.691               87.641
Taxes and duties                             55.649                15.734              232.359              102.157
Other                                       909.823               669.137              898.382              112.271
                                              13.890.403            6.631.591           14.218.210             7.154.894

NOTE 15 - OTHER INCOME/EXPENSES
                                  1 January -               1 April -         1 January -             1 April -
                                 30 June 2009           30 June 2009         30 June 2008         30 June 2008
Other income:
Miscellaneous sales                           3.806.358           503.975                3.299.311            1.063.573
Previous period income                      608.136               437.912              343.804              135.426
Gain on sale of property,
  plant and equipment (*)                   379.219               379.219               19.242.973           32.619
Rent income                                 181.015               105.074              170.940               72.300
Provisions reversed                           -                     -                  311.923               11.664
Other income                                597.912               239.955              893.248              411.849
                                               5.572.640            1.666.135           24.262.199             1.727.431
Other expense:
Cost of miscellaneous sales                  (3.923.346)         (470.918)              (2.951.547)        (920.637)
Idle time expenses                         (592.228)             (477.023)            (476.395)            (265.094)
Other taxes and duties                     (426.628)             (177.130)            (846.673)            (534.697)
Provision expenses                         (397.151)             (397.151)            (627.418)            (335.178)
Indemnity and penalty expenses             (155.738)             (110.013)             (55.734)             (30.214)
Loss on sale of
  property, plant and equipment               (4.982)                -                (476.384)            (178.989)
Loss on sale of
  financial investment                        -                     -                 (398.003)            (398.003)
Other expense                              (436.534)             (221.344)              (1.463.500)        (966.738)
                                              (5.936.607)          (1.853.579)           (7.295.654)          (3.629.550)
Other income/(expense)-net                 (363.967)             (187.444)              16.966.545             1.902.119
(*)   In accordance with the Corporate Tax Law numbered 5520, the Company included the 75% of the profit
      per its statutory accounts on the sale of property during March 2008 in the amount of TRY 8.917.139 in a
      special fund account to be kept for five years. In accordance with the financial reporting standards issued
      by the CMB the gain on sale of fixed asset in the amount of TRY 18.882.362 has been included in the
      current year statement of income.
NOTE 16 - FINANCIAL INCOME

                               1 January -          1 April -         1 January -         1 April -
                              30 June 2009      30 June 2009         30 June 2008     30 June 2008

Interest income                           5.728.981         2.203.551           8.725.926        5.151.189
Foreign exchange gains                    2.186.461       465.149               5.884.862      128.279
Other                                     -                 -                  67.957           15.968

                                          7.915.442         2.668.700          14.678.745        5.295.436


NOTE 17 - FINANCIAL EXPENSES

                               1 January -          1 April -         1 January -         1 April -
                              30 June 2009      30 June 2009         30 June 2008     30 June 2008

Interest expense                         (2.812.187)       (1.279.820)         (2.670.974)      (1.173.203)
Foreign exchange losses                  (2.486.572)      499.316              (5.399.417)    (824.627)

                                         (5.298.759)     (780.504)             (8.070.391)       (1.997.830)


NOTE 18 - TAX ASSETS AND LIABILITIES

The taxation on income reflected to income statements for the period ended 30 June 2009 and 2008 is
as follows:

                               1 January -          1 April -         1 January -         1 April -
                              30 June 2009      30 June 2009         30 June 2008     30 June 2008

- Current tax                         (739.218)          (739.218)            (5.180.547)        (2.422.961)
- Deferred tax                           4.637.492          3.531.148        683.168              1.046.463

                                          3.898.274         2.791.930          (4.497.379)       (1.376.498)

                                                                30 June 2009    31 December 2008

Corporation tax payable                                                    739.218                6.726.105
Less: Prepaid taxes (-)                                                   (234.314)              (6.158.134)

Taxes payable, net                                                        504.904              567.971

Deferred tax liability, net                                                  4.400.368           9.037.860
NOTE 18 - TAX ASSETS AND LIABILITIES (Continued)

The Corporate Tax Law was amended as of 13 June 2006 with Law No 5520. The majority of the clauses
of Law No 5520 are effective as of 1 January 2006. The corporation tax rate of the fiscal year 2008 is
20%. Corporation tax is payable at a rate of 20% on the total income of the Company after adjusting for
certain disallowable expenses, corporate income tax exemptions (participation exemption, and investment
allowance, etc) and corporate income tax deductions (like research and development expenditures
deduction). No further tax is payable unless the profit is distributed.

Dividends paid to non-resident corporations, which have a place of business in Turkey, or resident
corporations are not subject to withholding tax. Otherwise, except from these corporations‟ dividends
subject to withholding tax at the rate of 15%. An increase in capital via issuing bonus shares is not
considered as a profit distribution and thus does not incur withholding tax.

Corporations calculate corporate tax quarterly at the rate of 20% on their corporate income and declare it
until the 14th day and pay it on the 17th day of the second month following each calendar quarter end.
Advance tax paid by corporations is credited against the annual corporation tax liability. The balance of
the advance tax paid may be refunded or used to set off against other liabilities to the government.

In accordance with Tax Law No: 5024 “Law Related to Changes in Tax Procedure Law, Income Tax
Law and Corporate Tax Law” that was published on the Official Gazette on 30 December 2003 to amend
the tax base for non-monetary assets and liabilities, effective from 1 January 2004, the income and
corporate taxpayers will prepare the statutory financial statements by adjusting the non-monetary assets
and liabilities for the changes in the general purchasing power of the Turkish Lira. In accordance with the
aforementioned law‟s provisions, in order to apply inflation adjustment, the cumulative inflation rate
(SIS-WPI) over the last 36 months and 12 months must exceed 100% and 10%, respectively. Inflation
adjustment has not been applied as these conditions were not fulfilled in the years 2008 and 2007.

In Turkey, there is no procedure for a final and definitive agreement on tax assessments. Companies file
their tax returns within the 25th of the fourth month following the close of the financial year to which
they relate.Tax returns are open for 5 years from the beginning of the year that follows the date of filing
during which time the tax authorities have the right to audit tax returns, and the related accounting
records on which they are based, and may issue re-assessments based on their findings.Under the
Turkish taxation system, tax losses can be carried forward to offset against future taxable income for up
to 5 years. Tax losses cannot be carried back to offset profits from previous periods.There are numerous
exemptions in Corporate Tax Law concerning corporations. Those related to the Company are as
follows:

Exemption for dividend income:

Dividend income from participation in shares of capital of another full fledged taxpayer corporation
(except for dividends from investment funds participation certificates and investment partnerships
shares) are exempt from corporate tax. Accordingly, gains of the above nature which are in the
profit/(loss) figures are taken into consideration, in the calculation of corporate tax..

Apart from the above mentioned exceptions in the determination of the corporate tax base, allowances
cited in the articles 8, 9 and 10 of Corporate Tax Law and article 40 of Income Tax Law are taken into
consideration.
NOTE 18 - TAX ASSETS AND LIABILITIES (Continued)
The corporate tax charge calculation for the six-month period ended 30 June 2009 and 2008 is as
follows:
                                                                1 January -         1 January -
                                                               30 June 2009       30 June 2008
Statutory income before taxation                                                 3.984.632             23.817.271
Disallowable expenses                                                          105.908                  2.421.850
Other allowances discounts                                                    (394.452)              (336.384)

Corporate tax base                                                               3.696.088             25.902.737

Effective tax rate (%20)                                                      739.218                   5.180.547

Current period tax charge                                                     739.218                   5.180.547

The Company recognise; deferred tax assets and liabilities based upon temporary differences arising
between its financial statements as reported under CMB Accounting Standards and its statutory tax
financial statements. Deferred income taxes are calculated on temporary differences that are expected to
be realised or settled based on the taxable income in coming years under the liability method using a
principal tax rate of 20%.
The composition of cumulative temporary differences and the related deferred tax assets and liabilities in
respect of items for which deferred income tax has been provided at 30 June 2009 and 31 December
2008 using the enacted tax rates, is as follows:
                                            Cumulative temporary                   Deferred tax
                                                  differences                   assets / (liabilities)
                                              30 June 31 December               30 June 31 December
                                                 2009         2008                 2009               2008
Net difference between
  the carrying amount and tax base of
  property, plant and equipment and
  intangible assets                                  41.265.502       50.490.393       (5.425.095)    (10.098.079)
Net difference between the carrying
  amount and tax base of inventory                    4.037.459        4.198.153    (807.492)        (839.631)
Provision for unused vacation                      (760.800)        (875.100)        152.160          175.020
Provision for employment
  termination benefits                               (7.576.414)   (7.829.153)         1.515.283        1.565.831
Other-net                                          (823.882)     (794.994)           164.776          158.999

Deferred income tax liability - net                                                    (4.400.368)     (9.037.860)

Deferred income tax assets
                                                                    30 June 2009     31 December 2008
Deferred income tax assets to
 be recovered after more than 12 months                                          1.515.283              1.565.831
Deferred income tax assets to
 be recovered within 12 months                                                316.936                 334.019
                                                                                 1.832.219              1.899.850
NOTE 18 - TAX ASSETS AND LIABILITIES (Continued)

Deferred income tax liabilities
                                                                       30 June 2009        31 December2008

Deferred income tax liabilities to
 be settled after more than 12 months                                              5.425.095             10.098.079
Deferred income tax liabilities to
 be settled within 12 months                                                   807.492                  839.631

                                                                                   6.232.587             10.937.710

The movement of deferred income taxes is as follows:                          2009                     2008

1 January                                                                         (9.037.860)            (11.103.231)

Deferred income tax benefit for the period                                         4.637.492            683.168

30 June                                                                           (4.400.368)            (10.420.063)


NOTE 19 - EARNINGS PER SHARE

Earnings per share for each class of shares disclosed in these statements of income is determined by
dividing the net income after deducting the 10% portion attributable to usufruct shares that class of
share by the weighted average number of shares.

                               1 January -              1 April -         1 January -              1 April -
                              30 June 2009          30 June 2009         30 June 2008          30 June 2008

Net (loss) / income
 for the period (TRY)                        (1.207.440)          3.295.786           25.477.198          4.450.193
Weighted average number of
 shares with nominal
 value of 1Kr                                10.800.000.000      10.800.000.000       10.800.000.000     10.800.000.000
Earnings per
 ordinary share (Kr)                    (0,011)               0,031               0,236                0,041


NOTE 20 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES

a)    Material and service purchases from related parties:

                               1 January -              1 April -         1 January -              1 April -
                              30 June 2009          30 June 2009         30 June 2008          30 June 2008

Akkardan                                     22.650.000            -                   -                   -
Filiz Bakır A.Ş.                              1.650.000            -                   -                   -

                             24.300.000    -           -                                                   -
NOTE 20 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued)

b)    Dividend income

                                  1 January -              1 April -       1 January -             1 April -
                               30 June 2009        30 June 2009       30 June 2008       30 June 2008

Akkardan                                   8.828.954           8.828.954          -                   -

                                           8.828.954           8.828.954          -                   -

c)    Key management personnel compensation:

Company defines the executive management personnel as board of directors, general managers and
general manager deputies.

The benefits provided to executive management consists of salaries, premiums, Social Security
Foundation employer premium, unemployment employer premium and attandence fee paid to board of
directors

The benefits provided to executive management period ended 30 June 2009 and 2008 is as follows:

                                1 January -            1 April -       1 January -           1 April -
                               30 June 2009        30 June 2009       30 June 2008       30 June 2008

Short term employee benefits             905.385            149.217            701.825             351.400
Other long term benefits                  39.757             18.492             29.119              17.000
Benefits due to discharge                412.157            135.789              -                   -

                                           1.357.299        303.498            730.944             368.400


NOTE 21 - FINANCIAL RISK MANAGEMENT

Financial risk management

Financial Risk Factors

The Company‟s activities expose it to a variety of financial risks, including the effects of changes in
debt and equity market prices, foreign currency exchange rates and interest rates. The Company‟s
overall risk management program focuses on the unpredictability of financial markets and seeks to
minimize potential adverse effects on the financial performance of the Company.

Risk management is carried out by top management under policies approved by the Board of
Directors. The management cooperates with other business units and performs the determination and
the evaluation of financial risks.
NOT 21 - FINANCIAL RISK MANAGEMENT (Continued)

Market Risk

Foreign currency risk

The Company is exposed to the foreign exchange risk through the impact of rate changes at the
translation of foreign currency denominated liabilities and assets to local currency. These risks are
monitored and limited by the analysis of foreign currency position.

The Company‟s foreign currencies denominated assets and liabilities at 30 June 2009 and 2008 are as
follows:
                                                                30 June 2009 31 December 2008

Assets                                                                      26.527.725            24.254.294
Liabilities                                                                (27.718.005)          (22.773.629)

Net foreign currency position                                               (1.190.280)            1.480.665

Foreign Currency Analysis

Assets and liabilities denominated in foreign currencies at 30 June 2009 and 31 December 2008 are as
follows:
                                                          30 June 2009
                                     TRY             USD           EURO            GBP       Other

Trade receivable                      22.754.286       1.977.431       8.197.851    842.297        -
Monetary financial assets              3.773.439     190.211           1.526.840     80.853      175
Current Assets                        26.527.725       2.167.642       9.724.691    923.150      175
Total assets                          26.527.725       2.167.642       9.724.691    923.150      175

Trade payables                        (1.746.068) (296.567)     (549.313)            (44.702)       -
Financial liabilities                (25.971.937)   (9.042.332)   (5.652.925)          -            -
Short term liabilities               (27.718.005)   (9.338.899)   (6.202.238)        (44.702)       -
Total liabilities                    (27.718.005)   (9.338.899)   (6.202.238)        (44.702)       -

Net foreign currency
 liability position                    (1.190.280)    (7.171.257)      3.522.453    878.448      175

Export                                53.843.424       8.908.837      17.076.663       1.404.766 -
Import                                17.489.027       5.747.089       3.942.856       1.209    387.654
NOT 21 - FINANCIAL RISK MANAGEMENT (Continued)

                                                          31 December 2008
                                         TRY             USD       EURO                 GBP      Other

Trade receivable                          23.488.884       1.459.902       8.321.907      1.580.704 -
Monetary financial assets                765.410          45.148         178.965        142.756     863
Current Assets                            24.254.294       1.505.050       8.500.872      1.723.460 863
Total assets                              24.254.294       1.505.050       8.500.872      1.723.460 863

Trade payables                             (3.764.072)     (1.068.037) (846.280)     (152.349)        (2.190)
Financial liabilities                     (19.009.557)     (8.278.093)   (3.031.856)    -              -
Short term liabilities                    (22.773.629)     (9.346.130)   (3.878.136) (152.349)        (2.190)
Total liabilities                         (22.773.629)     (9.346.130)   (3.878.136) (152.349)        (2.190)

Net foreign currency
 liability position                        1.480.665       (7.841.080)     4.622.736      1.571.111 (1.327)

Export                                   133.913.505      36.965.368      44.830.760      7.295.661   -
Import                                    64.195.868      34.257.465       9.966.347     14.133       2.813.222

Foreign Currency Sensitivity Analysis:
                                                                               Profit/Loss
                                                                  Appreciation of      Depreciation of
30 June 2009;                                                    foreign currency     foreign currency

10% change in USD/TRY Parity:

USD Dollar net liability                                                        (1.097.274)           1.097.274
USD Dollar net hedged amount                                                     -                    -
USD Dollar net risk                                                             (1.097.274)           1.097.274

10% change in EURO/TRY Parity:

Euro net liability                                                            756.235             (756.235)
Euro net hedged amount                                                          -                    -
Euro net risk                                                                 756.235             (756.235)

10% change in other currencies/TRY Parity

Other currencies net asset/(liability)                                        222.011             (222.011)
Other currencies net hedged amount                                              -                    -
Other currencies net gain/(loss)                                              222.011             (222.011)

TOTAL                                                                    (119.028)             119.028
NOT 21 - FINANCIAL RISK MANAGEMENT (Continued)

                                                                           Profit/Loss
                                                              Appreciation of      Depreciation of
31 December 2008;                                            foreign currency     foreign currency

10% change in USD/TRY Parity:

USD Dollar net liability                                                     (1.185.807)            1.185.807
USD Dollar net hedged amount                                                  -                     -
USD Dollar net risk                                                          (1.185.807)            1.185.807

10% change in EURO/TRY Parity:

Euro net liability                                                         989.635               (989.635)
Euro net hedged amount                                                       -                      -
Euro net risk                                                              989.635               (989.635)

10% change in other currencies/TRY Parity

Other currencies net asset/(liability)                                     344.450               (344.450)
Other currencies net hedged amount                                           -                      -
Other currencies net risk                                                  344.450               (344.450)

TOTAL                                                                   148.278             (148.278)

As of 30 June 2009, had the TRY weakened/strengthened by 10% against the US Dollar ceteris
paribus, net income for the period would have been lower/higher by TRY 1.097.274 (31 December
2008: TRY 1.185.807), mainly as a result of foreign exchange losses/gains arising from the translation
of US Dollar assets and liabilities.

As of 30 June 2009, had the TRY strengthened/weakened by 10% against the Euro ceteris paribus, net
income for the period would have been higher/lower by TRY 756.235 (31 December 2008:
TRY 989.635), mainly as a result of foreign exchange gains/losses arising from the translation of Euro
assets and liabilities.

As of 30 June 2009, had the TRY strengthened/weakened by 10% against the other foreign currencies
ceteris paribus, net income for the period would have been higher/lower by TRY 222.011 (31
December 2008: TRY 344.450), mainly as a result of foreign exchange gains/losses arising from the
translation of other foreign currency assets and liabilities
NOT 21 - FINANCIAL RISK MANAGEMENT (Continued)

Interest rate risk

The Company is exposed to interest rate risk through the impact of rate changes on interest bearing
liabilities and assets. The company manages its not used cash on hand by time deposits. Income, other
than not used cash on hand, and cash flows from operations are considerably free from market interest
rate changes. The interest risk of the company arises from fixed rate short term borrowings. To keep
this exposure at a minimum level, the Company tries to borrow at the most suitable rates.

Credit risk

Credit risk arises from cash and cash equivalents and deposits with banks, as well as credit exposures
to customers, including outstanding receivables and committed transactions.

Ownership of financial assets involves the risk that counter parties may be unable to meet the terms of
their agreements. These risks are monitored by credit ratings and limiting the aggregate risk from any
individual counter party (excluding related parties).

Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the
availability of funding through an adequate amount of committed credit facilities and the ability to
close out market positions. Due to the dynamic nature of the underlying business the Company aims at
maintaining flexibility in funding by keeping committed credit lines available.

Funding risk

The ability to fund existing and prospective debt requirements is managed by maintaining the
availability of adequate committed funding lines from high quality lenders.

Capital Risk Management

The Company‟s objectives when managing capital are to safeguard the Company‟s ability to continue
as a going concern in order to provide returns for shareholders and benefits for other stakeholders and
to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends
paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors its capital like the other companies in the same sector on the basis of net
liability/invested capital. This ratio is calculated by dividing total net liability to invested capital. Net
liability is calculated as the total liability less cash and cash equivalents (including borrowings, trade
payables and other payables). Total invested capital is calculated as the total of equity and net
liability.
NOT 21 - FINANCIAL RISK MANAGEMENT (Continued)

The net liability/invested capital ratios at 30 June 2009 and 31 December 2008 are as follows:

                                                                     30 June 2009      31 December 2008

Total liability                                                                  55.478.180              47.752.451
Cash and cash equivalents                                                       (30.197.848)            (31.781.586)

Net liability                                                                    25.280.332              15.970.865

Total invested capital                                                          280.974.601             291.182.041

Total Equity                                                                    306.254.933             307.152.906

Net liability/invested capital                                                  8%                      5%

Fair value of financial assets and liabilities

Fair value is the amount at which a financial asset or liability could be exchanged in a current transaction
between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted
market price, if one exists.

The estimated fair values of financial assets and liabilities have been determined by the Company
using available market information and appropriate valuation methodologies. Accordingly, the
estimates presented herein are not necessarily indicative of the amounts the Company can realize in a
current market exchange.

The following methods and assumptions were used to estimate the fair value of the financial
instruments for which it is practicable to estimate fair value:

Monetary assets

The fair values of balances denominated in foreign currencies, which are translated at year end
exchange rates, are considered to approximate carrying values.

The carrying values of certain financial assets carried at cost, including cash and amounts due from
banks, are considered to approximate their respective fair values due to their short-term nature.

The carrying values of trade receivables along with the related allowances for uncollectibility are
estimated to be their fair values.
NOT 21 - FINANCIAL RISK MANAGEMENT (Continued)

Monetary liabilities

Trading liabilities have been estimated at their fair values.

The fair values of bank borrowings and other monetary liabilities are considered to approximate their
respective carrying values due to their short-term nature.

Long-term borrowings, which are denominated in foreign currencies, are translated to TRY at balance
sheet date exchange rates and accordingly their fair values approximate their carrying values.




                                           ………….…………

				
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