The analysis and assessment of the Board of Directors with regard to financial situation and operating results, and degree of realization of the scheduled activities and operations, and situation of the Company against the established strategic goals:
In 2015, with its transaction volume of 519 million USD, and its market share of 8.15%, İş Leasing maintained its strong positioning in the sector. Having increased its leasing portfolio by 15.7% over the past year, the Company further increased its total assets by 21.8% to 5.5 billion TL. With a net profit of 82 million TL in 2015, the Company recorded a return on equity of 11.7%. As a result of developed techniques applied and care and due diligence shown in credit risk management, the Company’s non-performing debts ratio continued to remain far below the sector average, and was recorded as 4.3%. In 2015, by issuing bonds of 722 million TL in total in domestic bond market, and by diversifying its fund sources through borrowing new finances of 230 million USD in total from reputable domestic and foreign credit institutions, İş Leasing continued its effective and efficient policies aimed at extending the maturities of funds borrowed. Aiming to grow in a disciplined manner, the Company acts selectively in growth in order to effectively and efficiently manage the profit margin pressure increasing as a result of competition, and does not compromise on its strategy of covering the public in its transaction volume, and of creating a portfolio of good quality.
Determination and assessment as to whether the capital of the Company is actually depleted or whether the Company is deeply in debt or not:
As of the end of 2015, capital of the Company is 530,3 million TL, and we have no finding showing, and are not of the opinion, that the capital of the Company is actually depleted or the Company is deeply in debt.
Whether the targets determined in the past periods have been reached or not, and whether the general assembly decisions have been performed or not, and if not reached or performed, the reasons thereof, and assessments:
In 2015, the Company has recorded operating results in tandem with its strategic goals thanks to its dynamic balance
sheet management and by focusing on sustainable growth strategies.
All decisions taken in the General Assembly meetings in the past period have been performed.
Information on direct or indirect subsidiaries of the Company and its shareholding rates:
Information on direct or indirect subsidiaries of the Company and its shareholding rates are presented in details in the footnote no. 9 of financial statements.
Information on donations and grants made during the year:
Donations and grants made by the Company in 2015 are 350 TL.
Lawsuits which are brought forward against the Company, and may affect its financial situation and activities, and probable results thereof:
During the period, the Company has been involved in many lawsuits as the defendant side as a part of its ordinary activities. Accordingly, there exists no legal action or legal proceedings which are not disclosed in footnotes of consolidated financial statements or for which the required provisions and reserves are not set aside and which may make material adverse effects on the financial situation or operating results of the Company.
Transactions of the controlling shareholders, directors, top echelon executives and their spouses and blood relatives and relatives by marriage up to second degree with the Company or its affiliates, which may cause conflicts of interests with the Company or its affiliates:
Opinions and comments of the Board of Directors regarding internal control system and internal audit activities:
Internal control system of the Company covers control and monitoring activities developed by the executive management
in order to ensure that the daily operations of the Company are carried out effectively and efficiently within the frame
of the established policies, guidelines and limits, and aims to establish a structure ensuring that the control culture is
adopted and maintained throughout the Company.
On the other hand, internal audit system of the Company covers the inspection, auditing and reporting processes carried out independently from the executive management in order to ensure that all operations and activities, also including internal control and risk management, are performed in accordance with the policies, strategies and goals, and that the Company assets are protected and maintained.
Our Board of Directors has assigned the Audit Committee for supervision, assessment and direction of initiatives and works within the scope of internal control and internal audit activities. Internal Audit, Internal Control and Risk Management Units, reporting to the Board of Directors through the Audit Committee, ensures that risk culture is created, developed and improved throughout the Company through its risk-based audit approach. The Audit Committee of the Company periodically assesses the efficiency of internal control system and the results of internal control activities through internal audit reports prepared and issued by the Internal Audit, Internal Control and Risk Management Units, and shares with the Board of Directors its proposals and suggestions on the actions required to be taken with respect to the findings of the said reports.
Explanations on administrative and juridical sanctions imposed on the Company and members of its managerial body due to practices and acts in conflict with the laws:
Information on private audits and public audits conducted during the accounting period:
During 2015 accounting period, the Company has been subject to a limited independent audit as of 30.06.2015, and to an independent audit as of 31.12.2015 by Akis Bağımsız Denetim ve Serbest Muhasebeci Mali Muşavirlik A.Ş. Furthermore, as a requirement of full certification of corporate tax, the Company’s financial statements have been subject to tax audit in quarterly periods by DRT Yeminli Mali Muşavirlik A.Ş.
Legal transactions and actions performed with the parent company, or an affiliate of parent company, in favor of the parent company or any affiliate thereof under direction of parent company; and all other measures taken or avoided to be taken in favor of the parent company or any affiliate thereof in the past activity year; and according to the conditions and circumstances known by them as of the time the legal transaction is performed or the measure is taken or is avoided to be taken, whether an appropriate counter-obligation is provided in each legal transaction or not, and whether the measure taken or avoided to be taken has caused damages to the company or not, and if the company has incurred damages, whether such damages are offset and balanced or not:
There exists no legal transactions and actions performed with the parent company of the Company, or an affiliate of parent company, in favor of the parent company or any affiliate thereof under direction of parent company; and no measures taken or avoided to be taken in favor of the parent company or any affiliate thereof in the past activity year.
“Conclusion” section of the Affiliation Report:
During 2015 activity year, within the frame of the relevant provisions of the Turkish Commercial Code, our Company is affiliated to the group of companies of T. İş Bankası A.Ş. Pursuant to article 199 of the Turkish Commercial Code, our Company’s Board of Directors has incorporated the following statement in its affiliation report issued about its relations with its parent company and with affiliates of its parent company: “With respect to all transactions performed by the Company and its parent company and the affiliates thereof during the activity year of 01.01.2015 – 31.12.2015, to the best of its knowledge, all legal transactions and actions performed in favor of the parent company or any affiliate thereof under direction of parent company, and all measures taken or avoided to be taken in favor of the parent company or any affiliate thereof in 2015 activity year have been considered and evaluated. We hereby declare that our Company has not incurred damages due to a transaction conducted in 2015 within the knowledge of the Company.”