BIRLESIM_2022 ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2022 FAALİYET RAPORU 136 Birleşim Mühendislik Isıtma Soğutma Havalandırma Sanayi Ticaret Anonim Şirketi and Its Subsidiaries (Currency in Turkish Lira (“TL”) unless otherwise stated). Notes to the Consolidated Financial Statements for the Year Ended 31 December 2022 2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued) 2.1 Basis of presentation of the consolidated financial statements (Continued) The Company keeps his accounting records in TL (Turkish Lira) in compliance with commercial legislation, financial legislation and Uniform Chart of Accounts requirements issued by Ministry of Finance. The financial statements are based on legal records and stated as TL. They are also prepared by subjecting to certain amendments and classifications in order to properly reflect the situation of the Company pursuant to Accounting Standards of Turkey. Approval of Financial Statements The consolidated financial statements prepared on 31 December 2022 were approved by the boards meeting dated 24 February 2023. General assembly has the right to correct these financial statements prepared according legal regulations. Reporting and valid Currency The Company’s and its subsidiaries’ functional and reporting currency is stated as Turkish Lira (“TL”) and unless otherwise is indicated, all financial information is expressed in TL. Going concern The Group prepared its consolidated financial statements in accordance with the going concern principle. 2.2 Inflation Accounting Capital Market Board made an announcement on 17 March 2005 to the effect that inflation accounting should be discontinued for companies that operate in Turkey and prepare their financial statements in accordance with Accounting and Reporting Standards issued by the Capital Market Board in effect from 01. January 2005. Based on this resolution the financial statements of the Group as from 01 January 2005 were not restated for the effects of inflation accounting as required by TAS 29” Financial Reporting in Hyperinflationary Economies”. 2.3 Basis of Consolidation The subsidiaries included in consolidation and the shareholding percentage at 31.12.2022 and 31.12.2021 is set out below: Name of consolidated subsidiary 31 December 2022 31 December 2021 Erde Mühendislik Sanayi ve Ticaret A.Ş. 100,00% 100,00% Solar Santral Enerji A.Ş. 70,00% - The consolidated financial statements include the financial statements of the entity controlled by the Company and the Company. The control is provided by the Company to: - having power over the invested company/asset; - be open to, or entitled to, variable returns from the investee/entity; - use the power to have an impact on returns. In the event of a situation or event that could lead to any change in at least one of the criteria listed above, the Company shall reassess whether it has control over its investment.