BIRLESIM_MUHENDISLIK 2023 ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2023 ANNUAL REPORT 184 Birleşim Mühendislik Isitma Soğutma Havalandirma Sanayi Ticaret A.Ş. and its Subsidiaries (Amounts are expressed in terms of purchasing power of Turkish Lira (“TL”) as of December 31, 2023 unless otherwise stated.) Notes to the Consolidated Financial Statements For the Year Ended 31 December 2023 16. COMMITMENTS ASSETS AND LIABILITIES (Continued) As of the report date, there are ongoing lawsuits filed by the Group amounting to TL 4.990.408 and enforcement proceedings amounting to TL 1.969.863. As of the report date, there are ongoing lawsuits filed against the Group amounting to TL 4.548.668 and enforcement proceedings amounting to TL 1.371.205. The Group has made provisions in the amount of TL 5.919.873 for the related legal processes (Note 15). 17. EMPLOYMENT BENEFITS As of the 31 December 2023 and 2022, Employment Benefits details are as follows: Liabilities for Employment Benefits 31 December 2023 31 December 2022 Due to Personnel 13.430.353 10.061.277 Social Security Premiums Payable 11.798.520 8.136.538 Total 25.228.873 18.197.815 Employee benefits Within the framework of the existing laws in Turkey, the Group is required to pay termination benefits to each employee who has completed one year of service and whose employment is terminated without due cause, is called up for military service, dies or completes a total of 20 years of service for women and 25 years for men or achieves the retirement age. Monthly severance pay ceiling should not be exceeded in the calculations.. The severance payment obligation is not legally subject to any funding. Pay January December 31, 2023 severance pay is calculated from the monthly ceiling of TL 35.058.58 effective from January 1, 2024 (December 31, 2022: TL 19.982.83). Employment termination benefits liability is calculated according to the estimated present value of the potential future liability arising out of the retirement of the Group employees. TAS 19 “Employee Benefits” requires actuarial valuation methods to be developed to estimate the liabilities of the Group under defined benefit plans. Accordingly, actuarial assumptions that were used in the calculation of the total liabilities are specified below. The main assumption is that the maximum obligation for each service year increases in line with inflation. Therefore, the applied discount rate refers to the expected real rate after adjusting for future inflation effects. As of December 31, 2023, the provisions in the attached financial statements are calculated by estimating the present value of the possible future liability arising from the retirement of employees. December 31, 2023, provisions were calculated with a real discount rate of 3.12%, based on the assumption of an annual inflation rate of 21.70% and a discount rate of 25.50% (December 31, 2022: 2.92%). The estimated rate of severance pay amounts that will not be paid as a result of discretionary layoffs and will remain with the Company has also been taken into account. Short-term Provisions for Employment Benefits 31 December 2023 31 December 2022 Vacation Provision 5.834.014 6.502.004 Total 5.834.014 6.502.004 Vacation Provisions Movements 1 January - 31 December 2023 1 January - 31 December 2022 Opening Balance 6.502.004 5.126.626 Movement During the Period, net 1.887.977 3.381.150 Monetary Gain/Loss (2.555.967) (2.005.772) Closing Balance 5.834.014 6.502.004