December 22nd,2008

TRM 231 FINANCIAL ACCOUNTING ASSIGNMENT 1 : FINANCIAL STATEMENTS OF MGROS

NEE ROMAN 2006104603

1.Balance Sheet In Summary Form

MIGROS
Summary Consolidated Balance Sheet (YTL) 2007 Assets Current Assets Non-current Assets Total Assets Liabilities Short Term Liabilities Long Term Liabilities Minority Interests Shareholders' Equity Total Liabilities And Shareholders' Equity 1,626,725 1,203,000 2,829,725 1,180,047 180,345 265 1,469,068 2,829,725 2006 1,002,806 1,787,126 2,789,932 1,263,465 603,498 199 922,77 2,789,932 Change (%) 62.2 -32.7 1.4 -6.6 -70.1 33.2 59.2 1.4

a.Major Asset Categories And Respective Changes

Notes Current Assets Cash and Cash Equivalents Marketable Securities(net) Inventories(net) Non Current Assets Tangible Assets(net) 19 4 5 12

2007 1.626.725 422.803 566.228 400.744 1.203.000 742.786 57,49% 14,94% 20,01% 14,16% 42,51% 26,25%

2006 1.002.806 325.476 159.881 394.213 1.787.126 1.048.927 35,94% 11,67% 5,73% 14,13% 64,06% 37,60%

% change 62,2% 29,9% 254,2% 1,7% -32,70% -29,20%

The major assets of the company are cash and cash equivalents, marketable securities,inventories and tangible assets.Marketable securities change significantly from 2006 to 2007.

b. Notes Short Term Liabilities Current Portion Of Long Term Debt Trades Payable(net) Long Term Liabilities Financial Liabilities(net) Shareholders' Equity Share Capital Profit Reserves Profit For The Year Total Liabilities And Equity 25 27 6 6 7 2007 1.180.047 117.828 871.489 180.345 142.663 1.469.068 178.030 83.962 552.875 2.829.725 41,70% 4.16% 30,80% 6,37% 5.04% 51,92% 6,29% 2,97% 19,54% 100% 2006 1.263.465 171.528 907.535 603.498 572.060 922.770 176.267 61.816 78.686 2.789.932 45,29% 6,15% 32,53% 21,63% 20,50% 33,07% 6,32% 2,22% 2,82% 100% % Change -6,6% -31,30 -4,0% -70.1% -75,10% 59,20% 1,00% 35,80% 602,60% 1,40%

Major sources of the assets are shareholders equity and trades payable and financial liabilities. 178.030ytl has been invested by the owners. 142.663 ytl has been taken from third parties and it has changed significantly from 2006 to 2007 approximately -75%. 2. MGROS TRK TCARET ANONM RKET Income Statement Notes Operating Income Sales(net) Cost Of Sales(-) Gross Profit Operating Expenses(-) Operating Income Profit Before Tax and Monetary Gain/Loss Minority Interests 33,36 33,36 37 33 31.12.2007 4.793.359 100,0% (3.598.461 -75,07 ) 1.194.898 24,93 (981.481) -20,48 213.417 4,45 638.414 24 (38) 13 (0) 31.12.2006 4.272.969 (3.189.957) 1.083.012 (877.926) 205.086 158.055 (3.755) 100,0% (75) 25 (21) 5 4 (0) 12,2 12,8 10,3 11,8 4,1 303,9 -99,0 3

Profit Before Tax Profit For The Year Earnings Per Share

42

638.592 552.875 3,11

12

155.009 78.686 0,44

4 2

312,0 602,6

2.a
Domestic Sales Foreign Sales Other Sales Less: Discounts and Returns Sales Revenue-Net Cost Of Sales Gross Operating Profit 2007 2006 %change 4.315.477 3.770.817 14,44 524.569 553.938 -5,30 20.238 24.837 -18,52 -66.925 -76.623 4.793.359 4.272.969 -3.598.461 3.189.957 1.194.898 1.083.012 -12,66 12,18 12,81 10,33

Sales mostly composed of domestic sales. The net sales change 12,18% from 2006 to 2007. 2.b
2007 General and Administrative Expenses Selling And Marketing Expenses Total 252.323 729.158 981.481 25% 74% 100% 2006 248.567 629.359 877.926 28% 72% 100% Change % 1,51% 15,86% 11,80%

According to note 37, most important operating expenses are staff cost and rent expense.Major expenses of the company didnt change significantly during the period.

2.c 2007 4.793.359 552.875 2006 4.272.969 78.686 Change % 100% 12,18 2,82 602,6

Sales(net) Profit For The Year

100% 19,54

Profit for the year 552.875ytl. It increased by 474189 ytl over the previous year, corresponds to approximately %600 increase. Level of profit changed significantly from 2006 to 2007. The reason behind this profit is the income from sale of joint-venture Ramenka to Enka.( 380.000ytl)

3.a List of major topics that are disclosed: NOTE 2 BASIS OF PRESENTATION OF FINANCIAL STATEMENTS NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NOTE 4 CASH AND CASH EQUIVALENTS NOTE 5 MARKETABLE SECURITIES NOTE 6 FINANCIAL LIABILITIES NOTE 7 TRADE RECEIVABLES AND PAYABLES NOTE 8 FINANCE LEASE RECEIVABLES AND PAYABLES NOTE 9 DUE FROM AND DUE TO RELATED PARTIES NOTE 10 OTHER RECEIVABLES AND PAYABLES NOTE 12 INVENTORIES NOTE 14 DEFERRED TAX ASSETS AND LIABILITIES NOTE 15 OTHER CURRENT/NON-CURRENT ASSETS AND SHORT/LONG-TERM LIABILITIES NOTE 16 FINANCIAL ASSETS NOTE 18 INVESTMENT PROPERTY NOTE 20 INTANGIBLE ASSETS NOTE 21 ADVANCES RECEIVED NOTE 23 PROVISIONS NOTE 24 MINORITY INTEREST/PROFIT-LOSS OF MINORITY INTEREST NOTE 25 SHARE CAPITAL/ADJUSTMENT TO SHARE CAPITAL NOTE 26 CAPITAL RESERVES NOTE 27 PROFIT RESERVES NOTE 28 RETAINED EARNINGS NOTE 29 FOREIGN CURRENCY POSITION NOTE 31 COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES 5

NOTE 34 SUBSEQUENT EVENTS NOTE 35 - DISCONTINUED OPERATIONS NOTE 36 OPERATING REVENUE NOTE 37 OPERATING EXPENSES NOTE 38 OTHER OPERATING INCOME/EXPENSE AND PROFIT/LOSS NOTE 39 FINANCIAL EXPENSES NOTE 40 MONETARY GAIN/LOSS NOTE 41 TAXES ON INCOME NOTE 42 EARNINGS PER SHARE NOTE 43 STATEMENTS OF CASH FLOWS 3.b Note 34 Subsequent Events and Note 35 Discontinued Operations are important things tha are disclosed in the company. Note 34-35 explains where the year profit comes from. Also operating revenue(note 36) and operating expense (note 37), operating income shows us the real position of the company.

4. Net sales increased by %12.2 but cost of the sales also increased by %13, so the gross profit decreased from %25.3 to %24.9. Profit for the year is increased but this increase is not coming from the operating revenue or net sales of the company. It is coming from the sales of the joint venture Ramenka. From my point of view, we should evalute the company success without the sales of Ramenka. Without the Ramenkas profit, profit for the year will be %3.8. (last year it was1.8). In my opinion, Migros should decrease the cost of sales than it will be more successful. Also we can look at current ratio 1.626.725/1.180.047= 1.37 which is a good ratio to pay its current liabilities. Debt ratio 1.360.892/2.829.725= 0.48 is a low debt ratio which is safer ratio and it show us the company will not have problems when it pays its debts.