Enkai Annual Report 31122017
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35°39’35.2”N | 44°56’28.7”E Sulaymaniyah 1,500 MW Combined Cycle Power Plant, Iraq Sustainability & Growth Annual Report 2017 ANNUAL REPORT 2017 ENGINEERING & CONSTRUCTION POWER GENERATION REAL ESTATE TRADE Board of Directors’ Responsibility for the Annual Report KMPG Bağımsız Denetim ve The Group management is responsible for the annual report in accordance with the Serbest Muhasebeci Mali Müşavirlik A.Ş. Articles 514 and 516 of the Turkish Commercial Code (“TCC”) Numbered 6102 and CMB’s İş Kuleleri Kule 3 Kat:2-9 Series No: II.14.1 “Communique on Principles of Financial Reporting in Capital Markets” Levent 34330 Istanbul (“Communique”) with the following: Tel +90 212 316 6000 Fax +90 212 316 6060 a) The Group management prepares its annual report within the first three months www.kpmg.com.tr following the reporting date and submits it to the general assembly. b) The Group management prepares its annual report in such a way that it presents Convenience Translation into English of the Independent Auditor’s accurately, completely, directly, true and fairly the flow of annual operations and Report Related to Annual Report Originally Issued in Turkish consolidated financial position of the Group. In this report, the financial position of the Group is assessed in accordance with the consolidated financial statements. The annual Report on the Audit of Board of Directors’ Annual Report Based on report shall also clearly state the details about the Group’s development and risks that might be encountered. The assessment of the board of directors on these matters is Standards on Auditing included in the report. To the Board of Directors and Shareholders of Enka İnşaat ve Sanayi Anonim Şirketi c) The annual report also includes: Opinion - Significant events after the reporting period, We have audited the accompanying annual report of Enka İnşaat ve Sanayi Anonim - The Group’s research and development activities, Şirketi (the “The Company”) and its subsidiaries and joint operations (“collectively referred to as “the Group”), for the period 1 January 2017 - 31 December 2017. - Employee benefits such as wages, premiums and bonuses paid to board members and key management personnel, appropriations, travel, accommodation and representation In our opinion, the consolidated financial information included in the annual report expenses, cash and cash facilities, insurance and similar guarantees. and the analysis of the Board of directors about the consolidated financial position of the Group are consistent, in all material respects, with the audited complete set When preparing the annual report, the Board of Directors also consider the related of consolidated financial statements and information obtained during the audit and regulations issued by the Ministry of Customs and Trade and related institutions. provides a fair presentation. Auditor’s Responsibility for the Audit of the Annual Report Basis for Opinion Our objective is to express an opinion on whether the consolidated financial information We conducted our audit in accordance with the standards on auditing issued by the included in the annual report and analysis of the Board of Directors in relation to the Capital Markets Board of Turkey (“CMB”) and Independent Standards on Auditing consolidated financial position of the Group are consistent with the audited consolidated (“ISAs”) which is a component of the Turkish Auditing Standards issued by the Public financial statements of the Group and the information obtained during the audit and give Oversight, Accounting and Auditing Standards Authority (“POA”). Our responsibilities a true and fair view and form a report that include this opinion in accordance with the TCC under those standards are further described in the Auditor’s Responsibilities for the and the Communique. Audit of Annual Report section of our report. We declare that we are independent of the Group in accordance with the Code of Ethics for Auditors issued by POA (“Code We conducted our audit in accordance with standards on auditing issued by CMB and ISAs. of Ethics”). We have fulfilled our other ethical responsibilities in accordance with the Those standards are required that compliance with ethical requirements and planning of Code of Ethics and regulations. We believe that the audit evidence we have obtained audit to obtain reasonable assurance on whether the consolidated financial information is sufficient and appropriate to provide a basis for our opinion. included in the annual report and analysis of the Board of Directors for the consolidated financial position of the Group are consistent with the consolidated financial statements Auditor’s Opinion on Complete Set of Consolidated Financial Statements and the information obtained during the audit and provides a fair presentation. We have expressed an unqualified opinion on the complete set of consolidated KPMG Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi A member firm of KPMG International Cooperative financial statements of the Group for the period 1 January 2017 - 31 December 2017 on 2 March 2018. Other Matter The annual report of the Group for the period 1 January 2016 - 31 December 2016 was Erdal Tıkmak, SMMM audited by another auditor who expressed an unmodified opinion on 1 March 2017 Partner regarding the appropriateness of this annual report. 2 March 2018 Istanbul, Turkey KPMG Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş., a Turkish corporation and a member firm of the KPMG network of independent Member firms affiliated with KPMG International Cooperative, a Swiss entity. 2 | ENKA Annual Report 2017 ENKA Annual Report 2017 | 3 41.435885 | 45.139932 South Caucasus Pipeline Expansion (SCPX) Early Works & Facilities, Georgia Content Companies 08 General Assembly Meeting 09 Board of Directors 10 Chairman’s Message 12 Engineering & Construction 16 Oil, Gas & Petrochemicals 18 Power Plants 40 Infrastructure Projects 48 Building Works 52 Group Companies 62 Power Generation 86 Real Estate 90 Trade 104 Social Activities 112 Financial Reports 138 Corporate Governance Principles Compliance Report 140 Basic Ratios & Backlog 159 Independent Auditor’s Report 161 4 | ENKA Annual Report 2017 ENKA İnşaat ve Sanayi A.Ş. 48.601411 | 135.064966 The Board of Directors’ Annual Report Khabarovsk Refinery, Russian Federation Reporting Period : 01.01.2017 - 31.12.2017 Registered Company Name : ENKA İnşaat ve Sanayi A.Ş. Registration or Incorporation : 1957 Registered Country : Istanbul / Turkey Chamber of Commerce Registration Number : 68194 Paid-in Capital : 4,600,000,000 TL (Turkish Lira) 2,556,802,968 US Dollars (equivalent) BS EN ISO 9001 : 2008 Registered Certificate No : FS 57544 BS EN ISO 14001 : 2004 Registered Certificate No : FS EMS 71388 OHSAS 18001 : 2007 Registered Certificate No : OHS 71389 ASME A : 2013 Registered Certificate No : 45151 ASME U : 2013 Registered Certificate No : 45152 ASME U2 : 2013 Registered Certificate No : 45153 ASME S : 2013 Registered Certificate No : 45154 Corporate Governance Rating : 9.18 (November 2017 - Saha Kurumsal Yönetim ve Kredi Derecelendirme A.Ş.) Head Office Address : Balmumcu Mah., Zincirlikuyu Yolu No: 10, 34349 Beşiktaş / İstanbul Phone : +90 (212) 376 10 00 (pbx) Fax : +90 (212) 272 88 69 Official Website : http://www.enka.com E-mail : [email protected] 6 | ENKA Annual Report 2017 ENKA Annual Report 2017 | 7 COMPANIES THE GENERAL ASSEMBLY MEETING Date : March 28, 2018 ENGINEERING & CONSTRUCTION Time : 14:00 Address : Balmumcu Mahallesi, Zincirlikuyu Yolu, No: 6 • ENKA İnşaat ve Sanayi A.Ş. ENKA Konferans Salonu • Çimtaş Çelik İmalat Montaj ve Tesisat A.Ş. Beşiktaş - İstanbul • Çimtaş Gemi İnşa Sanayi ve Ticaret A.Ş. • Cimtas Boru İmalatları ve Ticaret Ltd. Şti. AGENDA • Cimtas (Ningbo) Steel Processing Co. Ltd. 1. Election of the General Assembly Presidential Board and authorization of the Presidential Board for signing the Minutes of the General Assembly Meeting, • Capital City Investment B.V. • Kasktaş Kayar Kalıp Altyapı Sondaj Kazık ve Tecrit A.Ş. 2. Reading and discussing the Annual Report of the Board of Directors and the Financial Statements for the fiscal year 2017, • ENKA Teknik Genel Müteahhitlik Bakım İşletme Sevk ve İdare A.Ş. 3. Reading and discussing the Report of Independent Auditors, • Titaş Toprak İnşaat ve Taahhüt A.Ş. • ENKA Holding B.V. 4. Regarding the regulations of Capital Markets Board, informing the shareholders about the donations made within the fiscal year 2017 under the framework of Company’s current Donation and Aid Policy, • ENKA Construction and Development B.V. 5. Approval of Balance Sheet and Income Statement Accounts of 2017, • ENKA Power Systems B.V. 6. Acquittal and release of the Board Members due to the Company’s activities for the fiscal year 2017, POWER GENERATION 7. Election of the Board Members, 8. Regarding the regulations of Capital Markets Board, determining the attendance fee for the Board Members • Adapazarı Elektrik Üretim Ltd. Şti. as 15.500 Turkish Liras per month according to the principles set in the Remuneration Policy Applicable to the • Gebze Elektrik Üretim Ltd. Şti. Board Members and Administratively Responsible Managers, • İzmir Elektrik Üretim Ltd. Şti. 9. Presentation to the approval of the shareholders, of the draft of amendments to the Article 6 and Article 27 of the Articles of Association of the Company which have been approved by the Capital Markets Board and the REAL ESTATE Ministry of Customs and Trade, 10. Approval of the selection of the Independent Auditors recommended