19.	FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company manages its capital to ensure that it will be able to continue as a going concern while maxizing the return to stockholders through the optimization of the debt and equity balance. The capital structure of the Company consists of debt, which includes the borrowings, cash and cash equivalents and equity, comprising issued capital reserves and retained earnings.

30.09.2011	Financial assets at amortized cost	Loans and receivables	Financial liabilities as amortized cost	Carrying value	Fair Value
Financial Assets
Cash	65,974		439,673	439,673	439,673

30.09.2010	Financial assets at amortized cost		Loans and receivables		Financial liabilities as amortized cost		Carrying value		Fair Value

Cash & Cash Equivalent		-	$	41,966	$	41,966	$	41,966	$	41,966
Trade receivables (including related parties)		-	$	1,497,496	$	1,497,496	$	1,497,496	$	1,497,496
Trade Payables		-			$	1,301,865	$	1,301,865	$	1,301,865

Financial risk factors

The Company’s activities expose it to a variety of financial risks, credit risk and liquidity risk. The Company’s overall risk management program focuses on the unpredictability of financial markets seeks to minimize potential adverse effects on the Company’s financial performance.

Market risk

The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates.

Foreign currency risk management

The Company undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate fluctuations arise. Foreign currency position, net for the periods ended September 30, 2011 and 2010 can be summarized as follows:

30.09.2011	Financial assets at amortized cost	Loans and receivables	Financial liabilities as amortized cost	Carrying value	Fair Value

	-	-	-	-	-

30/09/10		Foreign Currency			TRY
Cash	USD	$	1,150.00			1,669.00
Banks	USD	$	2,018.00			2,928.00
Due from related parties	USD	$	674,602.00			978,982.00
Trade receivables	USD	$	815,869.00			1,237,990.00
Due from shareholders	USD	$	10,484.00			15,214.00
Advances given(Inventories)	USD	$	67,225.00			97,557.00
Trade payables	USD	$	(42,593.00	)		(61,811.00	)
Advances received (Other current liabilities)	USD	$	0.00			0.00
Due to related party	USD	$	(1,125,741.00	)		(1,633,675.00	)
Share purchase advances	USD	$	(750,000.00	)		(1,088,400.00	)
Due to Shareholders	USD	$	(12,809.00	)		(18,588.00	)

Credit risk management

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in a financial loss to the company. The Company has adopted a policy of only dealing with creditworthy counterparties. The Company’s exposure and the credit ratings of it counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.

Liquidity risk management

Liquidity risk arises from the fact that the Company may not receive funds from its counterparties at the expected time. This risk is managed by maintaining a balance between continuity of funding and flexibility through the use of overdrafts and trade receivables.

The following tables details the Company’s remaining contractual maturity for its non derivative financial liabilities. The tables have been drawn up on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.

		30.09.2011		30.09.2010





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