Aydem Yenilenebilir Enerji Anonim Şirketi and Its Subsidiaries
Consolidated Financial Statements For the Year Ended 31 December 2023
Güney Bağımsız Denetim ve SMMM A.Ş. | Tel: +90 212 315 3000 |
Maslak Mah. Eski Büyükdere Cad. | Fax: +90 212 230 8291 |
Orjin Maslak İş Merkezi No: 27 | ey.com |
Daire: 57 34485 Sarıyer | Ticaret Sicil No : 479920 |
İstanbul - Türkiye | Mersis No: 0-4350-3032-6000017 |
(Convenience translation of a report and consolidated financial statements originally issued in Turkish)
INDEPENDENT AUDITOR'S REPORT
To the General Assembly of Aydem Yenilenebilir Enerji Anonim Şirketi
- Report on the Audit of the Consolidated Financial Statements
- Opinion
We have audited the consolidated financial statements of Aydem Yenilenebilir Enerji Anonim Şirketi (the Company) and its subsidiaries the Group, which comprise the consolidated statement of financial position as at December 31, 2023, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with the Turkish Financial Reporting Standards (TFRS).
- Basis for Opinion
We conducted our audit in accordance with standards on auditing as issued by the Capital Markets Board of Turkey and Independent Auditing Standards (InAS) which are part of the Turkish Auditing Standards as issued by the Public Oversight Accounting and Auditing Standards Authority of Turkey (POA). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics for Independent Auditors (Code of Ethics) as issued by the POA, and we have fulfilled our other ethical responsibilities in accordance with the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
A member firm of Ernst & Young Global Limited
- Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter | How our audit addressed the key audit matter |
Valuation of power plants | |
Power plants comprises 85% of total assets of | Among the other audit procedures we performed, |
the Group as at 31 December 2023. The Group | we assessed the qualifications, competencies and |
measures power plants using the revaluation | independence of the professional appraisers |
method as stated in Note 2.8 in the | engaged by the management. |
consolidated financial statements; therefore, | |
management makes estimates and uses | We have evaluated the appropriateness of the |
assumptions to determine those fair values. | information and assumptions used in the |
The fair value is measured, as explained in | valuations. These include the estimates by the |
note 2.8 to the consolidated financial | external appraisal firms (such as the market price, |
statements, based on appraisal reports by | production volume and discount rate). For this |
independent and external appraisers. For the | assessment, we involved valuation experts from |
valuations, estimates are made of the expected | another entity that we have engagemed with to |
future cash flows taking into account the related | support our audit. We assessed whether the |
risks. | valuation methods as applied by appraisers are |
acceptable for the valuation of the power plants. | |
Detailed explanations on property, plant and | |
equipment are provided in Note 2.8 and Note | In addition, we have assessed the appropriateness |
9.1 to the consolidated financial statements. | of the disclosures in the consolidated financial |
statements and notes regarding the above- | |
Since the valuation of power plants is complex | mentioned accounting policy, estimates used and |
and highly dependent on estimates and | the valuation methodology and their conformity to |
assumptions, and also given the magnitude of | TFRS. |
the amounts involved, we consider the | |
valuation of power plants as a key audit matter. | |
(2)
A member firm of Ernst & Young Global Limited
3) | Key Audit Matters (Continue'd) | |
Key Audit Matter | How our audit addressed the key audit matter | |
Cash Flow Hedge Transaction | ||
As stated in note 2.7, As of 31 December 2023, | Among the other audit procedures we performed, | |
the Group used its bond amounting to USD | we assessed the qualifications, competencies and | |
574.107.000 as a hedging instruments to | independence of the professional appraisers | |
hedge against the exchange rate risk resulting | engaged by the management. | |
from the highly probable sales income earned | ||
in the scope of Renewable Energy Sources | We have evaluated the appropriateness of the | |
Support Mechanism ("YEKDEM") and bilateral | information and assumptions used in the | |
agreements, and implemented cash flow hedge | valuations. These include the estimates by the | |
accounting for highly-probable YEKDEM and | external appraisal firms (such as the market price, | |
bileteral agreement sales as a result of | production volume and discount rate). For this | |
efficiency tests carried out within this scope. | assessment, we involved valuation experts of a | |
firm which is in our audit network to support our | ||
The criteria for the application of the hedge | audit. We assessed whether the valuation methods | |
accounting include defining, documenting and | as applied by appraisers are acceptable for the | |
regularly testing the effectiveness of the hedge | valuation of the power plants. | |
accounting transactions. Due the fact that | ||
hedge accounting has complicated structure | In addition, we have assessed the appropriateness | |
and requires complex calculations, we | of the disclosures in the consolidated financial | |
considered this to be one of the key audit | statements and notes regarding the above- | |
matters. | mentioned accounting policy, estimates used and | |
the valuation methodology and their conformity to | ||
TFRS. | ||
(3)
A member firm of Ernst & Young Global Limited
3) Key Audit Matters (Continue'd)
Key audit matter | How our audit addressed the key audit |
matter | |
Application of the hyperinflationary | |
accounting | |
As stated in Note 2.2 to the consolidated | Our audit procedures included the following; |
financial statements, the Group has started to | • We inquired management responsible |
apply "TAS 29 Financial Reporting in | |
for financial reporting on the principles, | |
Hyperinflation Economies" since the functional | |
which they have considered during the | |
currency of the Group (Turkish Lira) is the | |
application of TAS 29, identification of | |
currency of a hyperinflationary economy as per | |
non-monetary accounts and tested TAS | |
TAS 29 as of December 31, 2023. | |
29 models designed, | |
In accordance with TAS 29, consolidated | • We have tested the inputs and indices |
used, to ensure completeness and | |
financial statements and corresponding figures | |
accuracy of the calculations, | |
for previous periods have been restated for the | |
• We have audited the restatements of | |
changes in the general purchasing power of | |
corresponding figures as required by | |
Turkish Lira and, as a result, are expressed in | |
TAS 29, | |
terms of purchasing power of Turkish Lira as of | |
• We assessed the adequacy of the | |
the reporting date. | |
disclosures in inflation adjusted financial | |
In accordance with the guidance in TAS 29, the | statements for compliance with TAS 29. |
Group utilised the Turkey consumer price | |
indices to prepare inflation adjusted financial | |
statements. The principles applied for inflation | |
adjustment is explained in Note 2.1. | |
Given the significance of the impact of TAS 29 | |
on the reported result and financial position of | |
the Group, we have assessed the hyperinflation | |
accounting as a key audit matter. | |
- Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with TFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting process.
(4)
A member firm of Ernst & Young Global Limited
(Convenience translation of a report and consolidated financial statements originally issued in Turkish)
- Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
In an independent audit, our responsibilities as the auditors are:
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with standards on auditing as issued by the Capital Markets Board of Turkey and InAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with standards on auditing as issued by the Capital Markets Board of Turkey and InAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
(5)
A member firm of Ernst & Young Global Limited
(Convenience translation of a report and consolidated financial statements originally issued in Turkish)
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
- Report on Other Legal and Regulatory Requirements
- Auditors' report on Risk Management System and Committee prepared in accordance with paragraph 4 of Article 398 of Turkish Commercial Code ("TCC") 6102 is submitted to the Board of Directors of the Company on 15 March 2024.
- In accordance with paragraph 4 of Article 402 of the TCC, no significant matter has come to our attention that causes us to believe that the Company's bookkeeping activities for the period 1 January - 31 December 2023 and financial statements are not in compliance with laws and provisions of the Company's articles of association in relation to financial reporting.
- In accordance with paragraph 4 of Article 402 of the TCC, the Board of Directors submitted to us the necessary explanations and provided required documents within the context of audit.
The name of the engagement partner who supervised and concluded this audit is Onur Ünal.
Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi A member firm of Ernst & Young Global Limited
Onur Ünal, SMMM
Partner
15 March 2024 İstanbul, Türkiye
(6)
A member firm of Ernst & Young Global Limited
Aydem Yenilenebilir Enerji Anonim Şirketi and Its Subsidiaries
Contents
Consolidated Statement of Financial Position
Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flow
Notes to the Consolidated Financial Statements
Aydem Yenilenebilir Enerji Anonim Şirketi and Its Subsidiaries
Consolidated statement of financial position as at 31 December 2023
(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2023, unless otherwise indicated.)
Audited | Audited | ||
Notes | 31 December 2023 | 31 December 2022 | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | 3 | 1,393,347,665 | 2,131,820,839 |
Financial investments | 27 | 626,629,118 | 585,511,774 |
Trade receivables | 2,001,075,460 | 2,148,799,944 | |
- Due from related parties | 5 | 1,928,894,734 | 2,030,660,755 |
- Due from third parties | 6 | 72,180,726 | 118,139,189 |
Other receivables | 655,967,001 | 107,884,655 | |
- Due from related parties | 5 | 641,543,115 | 57,682,313 |
- Due from third parties | 7 | 14,423,886 | 50,202,342 |
Inventories | 8 | 21,071,412 | 20,830,560 |
Prepaid expenses | 26 | 40,244,202 | 44,800,601 |
Other current assets | 13.1 | 42,587 | 84,133 |
Total current assets | 4,738,377,445 | 5,039,732,506 | |
Non-current assets: | |||
Other receivables | 3,262,076 | 2,556,976 | |
- Due from third parties | 7 | 3,262,076 | 2,556,976 |
Property, plant and equipment | 9.1 | 48,608,887,652 | 51,989,813,772 |
Right of use assets | 9.2 | 254,120,885 | 259,469,472 |
Intangible assets | 10 | 1,696,393,888 | 1,738,185,808 |
Investment properties | - | 72,624,161 | |
Prepaid expenses | 26 | 272,515,676 | 667,874,306 |
Other non-current assets | 13.2 | 33,227,884 | 18,177,915 |
Total non-current assets | 50,868,408,061 | 54,748,702,410 | |
Total assets | 55,606,785,506 | 59,788,434,916 |
The accompanying notes form an integral part of these consolidated financial statements.
3
Aydem Yenilenebilir Enerji Anonim Şirketi and Its Subsidiaries
Consolidated statement of financial position as at 31 December 2023
(Amounts expressed in terms of the purchasing power of the Turkish Lira ("TL") as of December 31, 2023, unless otherwise indicated.)
Audited | Audited | ||
Notes | 31 December 2023 | 31 December 2022 | |
LIABILITIES | |||
Current liabilities: | |||
Short-term portion of long-term financial liabilities | 23.1 | 1,495,046,954 | 1,657,468,152 |
Lease liabilities | 23.2 | 16,625,292 | 8,962,032 |
Trade payables | 403,201,926 | 782,958,490 | |
- Due to related parties | 5 | 11,435,775 | 12,727,319 |
- Due to third parties | 6 | 391,766,151 | 770,231,171 |
Liabilities for employee benefits | 12 | 11,764,821 | 5,490,644 |
Other payables | 236,074 | 388,383 | |
- Due to third parties | 7 | 236,074 | 388,383 |
Current provisions | 57,932,618 | 57,766,379 | |
- Provisions for employee benefits | 11.1 | 44,202,139 | 37,234,930 |
- Other short-term provisions | 11.1 | 13,730,479 | 20,531,449 |
Other current liabilities | 13.3 | 101,910,829 | 120,276,188 |
Total current liabilities | 2,086,718,514 | 2,633,310,268 | |
Non-current liabilities: | |||
Financial liabilities | 23.1 | 18,603,594,131 | 20,071,487,686 |
Lease liabilities | 23.2 | 37,868,181 | 41,420,774 |
Other payables | 50,402,202 | 66,256,354 | |
- Due to related parties | 5 | 50,402,202 | 66,256,354 |
Non-current provisions | 68,561,192 | 57,245,791 | |
- Provisions for employee benefits | 11.4 | 68,561,192 | 57,245,791 |
Deferred tax liabilities | 22 | 6,138,866,162 | 7,596,464,840 |
Total non-current liabilities | 24,899,291,868 | 27,832,875,445 | |
Total liabilities | 26,986,010,382 | 30,466,185,713 |
The accompanying notes form an integral part of these consolidated financial statements.
4
Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Aydem Yenilenebilir Enerji AS published this content on 18 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 March 2024 12:35:05 UTC.