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Company Description
Financial Highlights
Message to Shareholders
10
Management Report
14
19
Corporate Governance
20
Corporate Information
22
29
Company Description
PT Asia Pacific Fibers Tbk (formerly PT Polysindo Eka Perkasa Tbk), established in 1984, is a leading
polyester manufacturer in Indonesia. Its manufacturing operations span the entire polyester
production chain, from raw materials to end products, ensuring quality and consistency. PT Asia
Pacific Fibers is the only integrated producer of polyester in Indonesia. The manufacturing facility for
PTA, continuous polymer, and staple fiber is located in Karawang, West Jawa. Filament yarn,
produced at the largest yarn facility in Indonesia, is located in Semarang, Central Jawa.
PT Asia Pacific Fibers current products include Purified Terephthalic Acid (PTA), polyester chips,
polyester staple fiber, polyester filament yarn, and performance fabrics. The Companys products
are marketed and sold both in domestic and international markets.
The following is the report on the business performance of PT Asia Pacific Fibers Tbk in 2010. The
term Company used throughout the report refers to PT Asia Pacific Fibers Tbk and all its
subsidiaries. The term APF refers to PT Asia Pacific Fibers Tbk as a stand-alone entity, while the
term Texmaco Jaya refers exclusively to PT Texmaco Jaya Tbk.
Financial Highlights
The following table sets forth the financial highlights of the Company for the years ended 31st
December 2008 to 2012.
The Companys current auditors are Drs. Hendrawinata Eddy & Siddhartha (Indonesian Member firm
of Kreston International)
st
Current Assets
Fixed Assets-Net
Total Assets
Liabilities
Equity
Net Sales
Gross Profit
Operating Profit
Net Income
Net Working Capital (1)
Profit per Share-Net
Gross Profit Margin
Net Profit Margin
Return on Investment
Return on Equity
Current Ratio
Debt to Total Assets
Debt to Equity
%
%
%
%
2012
US$ 000
2011
US$ 000
237,040
129.394
403.252
1,201,091
(797,838)
599,331
(5,982)
(23,515)
(32,119)
(931,551)
US$ (0.01)
0.07
0.11
NA
NA
0.2
2.98
(1.51)
231,660
184.837
452.635
1,218,898
(766,263)
635,535
13,879
(19.863)
(8,840)
(936,758)
US$ 0.00
2.18
1.39
NA
NA
0.2
2.69
(1.59)
Notes:
(1)
Current Assets minus Current Liabilities
(2)
As Restated
(2)
31 December
2010
Rp Mill
1,698,564
1,775,584
3,948,489
11,900,693
(7.952.202)
4,455,449
331,393
14,196
334,977
(9,522,265)
Rp141
0.07
0.08
8,5
NA
0.2
2.98
(1.50)
2009
Rp Mill
1,423,994
2,290,009
4,569,624
12,449,681
(7,880,058)
3,511,507
(43,902)
(314,297)
1,182,788
(10,226,269)
Rp(498)
(1.3)
33.7
25.9
NA
0.1
2.72
(1.58)
2008
Rp Mill
1,235,848
2,802,157
4,912,990
13,979,999
(9,067,010)
3,740,569
(217,811)
(518,217)
(2,120,676)
(11,798,530)
Rp(245)
(5,8)
(56,7)
(43.1)
NA
0.1
2.85
(1.54)
The Companys continuous efforts to restructure its balance sheet have been positive with PPA, one
of the companys secured creditors, actively reviewing a proposal to resolve their outstanding issues.
After this restructuring, the Company will be in a position to significantly improve its financial
standing and will finally be able to implement its long-term growth plan.
The Commissioners wish to extend their appreciation to the Directors and all APF employees for
their continued efforts and dedication throughout 2012 year where the company faced continued
financial and operational challenges whilst strengthening its strategic market position. The Company
continued to improve its corporate governance standards and complied with the various regulations
and requirements by BAPEPAM and BEI. We also wish to acknowledge our sincere gratitude to our
customers, suppliers, and shareholders for their continued support and the confidence they have
entrusted to the Company in this critical transition period.
Message to Shareholders
Dear Shareholders:
Despite slower global economic growth and continued uncertainty in the global financial markets,
Indonesias economic growth remained strong throughout 2012. Indonesias GDP grew 6.23% in
2012 and the country remained among the worlds fastest-growing economies (the second best
after that of China among G-20 members). While many other emerging markets in Asia are reliant on
exports, more than 60% of Indonesias GDP is generated by domestic consumption, shielding it from
the vicissitudes of the global economy. Indonesia's resilience to the global economic slowdown
driven by its robust domestic consumption has made it a magnet for foreign investment. However,
the growth was slightly below 2011s 6.5% growth, primarily due to slowing export growth of
commodities such as coal and palm oil to China. The deceleration in the fourth quarter 2012 should
provide a cautious approach for future.
On the other hand, Indonesia suffered its first ever-annual trade deficit in 2012 as exports to most of
its trading partners fell during the year amid the slowdown in the global economy. The countrys first
annual trade deficit in 2012 has put pressure on the rupiah currency. The rupiah weakened through
the year 2012 and has fallen steeply to close at Rp 9,670 per US$ as compared to Rp 9,068 per US$
as at December 2011, depreciating over 6.6% during the year. The countys trade deficit reached
US$1.65 billion last year, the first such deficit in Indonesias history. Exports dropped to US$190.04
billion, down by 6.61% from last year, much deeper than the forecast. Imports, on the other hand
surged by 8.2% to US$191.67 billion, driven by imports of intermediary goods for domestic
production (73.10%), followed by capital goods (19.90%) and consumer goods (7%).
demand for fibers. This in turn looks set to stimulate a reversal in future trade flows of both higher
added value textiles and apparel.
Soft outlook for crude, improving capacity positions in PTA, supported by PX should ensure soft price
structure for polyester in 2013 15, while the polyester consumption is expected to remain strong.
Besides, soft cotton prices projected till end of the cotton season would also limit the polyester
prices and margins in 2013. Hence the prices of PSF and yarn are expected to remain soft and the
polyester chain margins will be under pressure at least in 2013. Any longer term shortages of cotton
would only add further upside to the projected growth and margins.
Domestic market continue to remain strong, irrespective of declining prices, driven by strong
domestic consumption with per-capita consumption rose to 6.18 kg in 2012 from 6.03 kg for the
previous year. While the domestic demand for polyester staple fiber increased by 7%, the filament
yarn demand rose by 16% over shooting the growth in production forcing significant increase in
import of filament yarn. Import of filament yarn increased by 45% in volume during 2012. Prompted
by this strong growth in domestic consumption for polyester, the upstream manufacturers have
taken up capacity additions to increase up to 1 million tons each for fiber and filament yarn
capacities by 2014 from the current levels of 700 thousand tons and 850 thousand tons respectively.
Supported by a strong and sustained economic growth of 6.23% in 2012 and projected growth of
6.3% in 2013 with the inflation under check, the consumer confidence level continues to remain
robust boosting the domestic consumption. The per capita consumption of textiles is projected to
move up to 6.60 kg in 2013 with corresponding increase in polyester consumption.
Textile exports from Indonesia decreased in 2012 to US$12.56 billion as compared to US$13.26
billion in 2011. While the total volume of textile exports increased marginally by 0.5%, the decrease
in value was mainly due to fall in prices triggered by the global recessionary trend and drop in
international prices for cotton and polyester. Whereas, volume of textile imports in 2012 surged
significantly by 12.2% mainly driven by yarn imports (both spun and filament yarn). However, in
value terms textile imports decreased to US$7.94 billion in 2012 as compared to US$8.53 billion in
2011, registering a decrease of 6.9%, mainly due to declining price trend.
Company Performance
The Companys performance was significantly impacted by the down turn in global economy during
the year 2012, rising energy costs coupled with decline in polyester chain margins. Despite the
dampening market conditions, the Company was able to maintain the operations of both of its
plants to the near full capacity with high standards of efficiency. The Company has posted a sales
turn over of US$600 million as compared to US$635 million in the previous year. Despite increased
volume of production and sales, the total sales revenue declined due to drop in selling prices for all
products triggered by sharp fall in PTA margins during the year. The company has therefore ended
the year with an operating loss of US$23.51 million as compared to US$19.86 million for the
previous year. However the Company was still able to post an EBITDA of US$36.84 million for 2012
as compared to an EBITDA of US$77.7 million for 2011. Performance Fabric division of the Company
significantly improved its performance during the year 2012 by achieving sales revenue of US$11.32
million with an EBITDA of US$1.74 million. The overall fall in profitability is primarily on account of
the steep fall in PTA margins during 2012 that bottomed out in last quarter below the cash cost. This
steep fall in margin was mainly driven by the huge capacity addition of PTA in China coupled with
weak demand for polyester products on account of lull in global textile trade.
We are pleased to inform that the Company added a range of specialty and value added products to
its existing product portfolio through Capex investments and successfully placed these products both
in domestic and international markets.
The fiber expansion project at Karawang with a capacity addition of 54,000 MT per annum was
completed during the year 2012 and the commercial production started from May 2012, resulting in
PSF volume increase of 13% for part of the year. With the benefits of the on going Capex projects
accruing to the Company effective 2013, the Company expects to gain significant contribution to its
future earnings.
In compliance with the PSAK 10 (Indonesian Accounting Standards), the Company has reported its
financials in US Dollars for the year 2012 as US Dollar being the dominant functional currency.
Outlook
The economic outlook for Indonesia in 2013 remains positive despite a weak global economy, but
maintaining strong investment growth is vital. The World Bank projects a marginal rise in GDP to 6.3
percent in 2013. This projection assumes that domestic consumption and investment growth remain
strong, while improving growth in Indonesias major trading partners supports a modest recovery in
exports.
However, domestic environment for manufacturing sectors expect to undergo a tough phase with
the looming escalatory trend in two major cost fronts viz., manpower and energy. Both gas prices
and electricity tariff are increasing in 2013, with further increases beyond 2014 not entirely ruled
out. These factors will add to the pressure on cost competitiveness of the domestic manufacturers.
The Company has, however, taken a series of cost-saving initiatives, especially in energy saving areas
and manpower rationalization efforts to offset these cost increases. In order to fully secure the
energy supplies and also to optimize its cost of energy for the manufacturing unit in Karawang, the
Company is actively pursuing through restructure and reorganization of power producing plant in
Karawang.
The Company is actively engaged with its secured creditors to find a solution to its long pending
secured debt restructuring at the earliest possible time. The Company has presented an alternate
restructuring option to its secured creditors that are under active consideration. Post restructure,
the Company will have a sound and healthy financial base with its debts brought down to
sustainable levels. This would in turn enable the company to raise finance from market to meet its
short and long term investments to fund its growth plans. All of these efforts will improve the
performance of the Company significantly, and to reposition it to the forefront of the polyester
industry combining market reach, innovation and integration driving superior performance and
reputation.
We would like to take this opportunity to express our sincere gratitude to our Shareholders,
Customers, Suppliers, Bankers, and Employees who continue to support the Company during this
crucial stage of restructuring and re-emergence as a prominent leader in the manufacture of high
quality polyester products.
V. Ravi Shankar
President Director
Annual Report 2012
Age
50
51
Robert McCarthy
58
68
10
Principal Occupation
60
Kamun Cheong
33
11
Age
V. Ravi Shankar
49
71
S. Jegatheesan
63
55
12
Principal Occupation
13
Management Report
14
Staple Fiber
Global polyester staple fiber production in 2012 was estimated to be 15.23 million tons as compared
to 14.51 million tons in 2011, registering a growth of 5% over 2011. The Companys staple fiber
production in the year 2012 increased by 13% over the previous year mainly contributed by the
capacity increase supported by steady demand in the domestic market.
Filament Yarn
In 2012, global polyester filament yarn production was estimated at 26.68 million tons as compared
to 25.13 million tons in 2011, thus registering a growth of over 6%. The Companys filament yarn
production continues to remain at optimum levels and increased by 5% driven by steady market
demand.
Performance Fabric
The performance fabric division continued to operate through a production tolling arrangement with
its erstwhile subsidiary, Texmaco Jaya. Even after the bankruptcy of PT Texmaco Jaya, the tolling
arrangements continued with the approval of the commercial court. The production and sales of
performance fabrics optimized during the year 2012.
Product Range
The Companys product range includes:
Product
1. PTA (Purified Therepthalic Acid)
2. Polyester Chips
Type
Semi-Dull
Super Bright
Optical Bright
Normal
Normal
Micro Filament
5. Fabrics
Hi filament
Differential
Shrinkage
High
performance
fabrics
Utilization
Manufacture of Polyester Chips
Polyester Filament yarn/staple fiber
Filament yarn/ staple fiber
Polyester staple fiber
Filament yarn
Spun Yarn
Non Woven
Fiber Fill
Tailored Clothing - Formal and Casual
Super fine apparel fabrics with cotton
tencel free
Fine apparel fabrics
Fine apparel fabrics
Outdoor wear, Winter clothing active wear,
sportswear, childrens wear
15
Marketing Distribution
APF is a trusted long-term partner for global textile consumers producing fabrics for apparel, hometextiles, Automotive, footwear, sportswear, hygiene and health care and various other applications.
The Company has a very strong marketing network and supply chain management which
differentiate it from its competitors. It maintains a very close collaboration with its customers
through tailored and innovative branded products unique to APF and enjoy high level of customer
loyalty. As a strategic move, the marketing team focuses on product and application innovation to
customize products for value creation. APF has recently developed and branded the premium tier of
its portfolio of specialty products that provide performance Comfort, aesthetic and other
advantages.
APF continues to focus its efforts to maintain the leadership position in the domestic market and
increase its market share for its products filament yarn and staple fiber.The Company has allocated
higher volume of production to domestic market to meet the increased requirement of the down
stream customers. Domestic sale proportion has increased to 83% in 2012 as compared to 78.8% for
the previous year.
Human Resources
Asia Pacific Fibers recognizes that human resources are the core assets of the company and
continuously strives to nurture and develop the talents and skills to keep pace with the
advancement in technology and changing customer needs. The employees are put on specialized
training to upgrade their skill levels with a view to provide career growth opportunities. A wellstructured performance appraisal and incentive scheme is in place to boost the motivation of the
employees. The employees are encouraged to participate in collective decision-making process
through well-established communication channels across the organization and contribute to value
creation. The Company endeavors to maintain harmonious industrial relations and implemented a
number of welfare measures such as education, health, and social security to improve their social
status. The Company has also formulated an Employee Stock Option Plan to reward performance
and promote a sense of belongingness amongst the employees.
Environment
With its strong commitment to environmental safety and protection, the Company is strictly
adhering to stringent emission norms of its effluents. The Company is fully compliant to all
applicable environmental standards of Indonesia, with Badan Pengendali Lingkungan (BAPEDAL) as
its regulating authority. The Company also installed and commissioned 100% waste recycling facility
at Karawang (Glycolysis) to convert all its waste into green label products and to ensure ZERO
waste from its production facilities.
Location & Type of Assets Work more than 5% of Total Assets
The Company has certain assets whose values exceed 5% of the Companys total assets. For APF,
these assets, which essentially consist of land, machinery and buildings, including the PTA Plant,
Polymer facilities, fiber line and yarn equipment, and are located in two manufacturing facilities in
Kaliwungu, in Central Java, and Karawang, in West Java.
16
Dividend Policy
APF has historically paid an annual dividend after approval of the Companys shareholders at the
Annual General Meeting of the shareholders. However in view of the current financial situation, APF
has not declared a dividend for 2012.
2012
Highest
Lowest
Volume
2011
Highest
Lowest
Volume
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
(Rp)
(Rp)
(Shares)
485
330
10,158,900
480
220
14,103,900
315
188
8,344,200
245
196
11,564,500
(Rp)
(Rp)
(Shares)
245
170
4,343,500
540
180
38,711,200
810
365
70,257,100
590
310
33,241,900
17
Subsequently in January 2012, the Company again sought and obtained approval of its unsecured
creditors for extension 3 years time and re-schedule principal repayments commencing from
February 2015 instead of February 2012 as approved earlier. The majority New Note holders have
approved the above request by the Company in their meeting held on 16 th January 2012 at
Singapore. The Company has subsequently started servicing of interest on new notes with effect
from 15th May 2012 and has so far paid interest for three quarters during the year 2012.
The Company has four subsidiaries: PT Texmaco Jaya Tbk. (Bankrupt under liquidation), Polysindo
International Finance Company BV. (PIFC), Polysindo Mauritius Ltd., and PT EastindoPolymertama
(Eastindo).
PT Texmaco Jaya Tbk (Bankrupt under liquidation)
PT Texmaco Jayas was declared bankrupt by the commercial court Jakarta on 19 th August 2011 as
per the Court order 10/PKPU/2010/PN.NIAGA.JKT.PST. Jo No: 71/PAILIT/2010/PN.NIAGA.JKT.PST.
The Court also appointed Dr. MARSUDIN NAINGGOLAN SH., as the supervisory Judge and a team of
Receivers (Curators) Peter Kurniawan, SH., M.Kn., Lili Badrawati, SH., and Permata N. Daulay, SH.
MH. to monitor and enforce the liquidation process as per the law. Subsequent to completion of
debt verification, the Court had declared PT Texmaco Jaya Tbk insolvent and ordered liquidation of
the bankrupt estate vide Court order no 71/PAILIT/2010/PN.NIAGA.JKT.PST dated 26th September
2011. The Company is currently under liquidation process.
In the meantime, the Court has approved continued operation of its Performance Fabrics division as
a going concern with a view to maintain the value of the bankrupt assets. In accordance with the
Court approval and pursuant to the tolling agreement between the team of curators and PT Asia
Pacific Fibers, the Performance Fabrics division continues to operate on tolling basis.
Polysindo International Finance Company BV. (PIFC) and Polysindo (Mauritius) Ltd.
Polysindo International Finance Company BV (PIFC) and Polysindo (Mauritius) Ltd. are wholly owned
subsidiaries of PT. Asia Pacific Fibers Tbk and act as financing vehicle for APF. The double taxation
treaty between Indonesia and Mauritius has expired, hence APF intends to wind-up Polysindo
(Mauritius) Ltd.
PT Eastindo Polymertama (Eastindo)
Eastindo was originally formed to implement the expansion of PTA and polymer production in
Karawang which was later implemented through APF. As Eastindo has not engaged in any
manufacturing activity, the Company is planning to wind-up PT Eastindo Polymertama.
18
19
Business Risks
The buoyancy and high profit margin prevailed in 2011 for the polyester products took a downward
trend in 2012 as PTA margin and the price of cotton crashed drastically. The volatility in the price of
raw materials Paraxylene and MEG and the price of PTA pose uncertainty with regard to the selling
price of polyester products. The envisaged expansion of polyester products in Indonesia has been
put on hold with uncertainty in the market condition. The increase volume of imports of polyester
filament yarn into Indonesia is putting pressure on the domestic prices as China and India are
dumping their production in Indonesia. Currently the crude oil price (WTI Crude) is hovering above
US$100/barrel. While pricing typically trends with oil prices, in recent months the price for PX is
tracking more to industry supply/demand. PX supply has been balanced to tight during the year 2012
and forecast to remain tighter during first semester of 2013. The Company is still depending on prefinancing arrangements, in addition to the working capital facility provided by the majority owner,
for the procurement of raw materials and in the absence of a conventional source of working capital
through normal banking channels. A formal working capital loan through a bank will be possible only
when the secured debt is restructured.
Debt Restructuring
The secured debt restructuring has not yet been completed, as the Company still awaits a response
from the PPA. Damiano Investments BV, the majority shareholders is also the majority holders of
secured debt, other than the PPA portion. Damiano Investments BV continued to provide working
capital loans and a Letter of Credit facility for the procurement of raw materials. This has helped the
Company to maintain optimum capacity utilization of the Companys production facilities.
In view of its tight working capital position and non-completion of secured debt restructuring, in
January 2012, Asia Pacific Fibers (APF) sought and received the approval of its unsecured creditors
for extension of the principal repayment schedule by 3 years and accordingly the first installment
will be due on 15th February 2015.
Corporate Governance
The Company has complied with the various statutory requirements of Indonesian Corporate Law,
Capital Market Law, and Stock Exchange Regulations.
The Board of Commissioners is represented by eminent people in the field of Finance, Economics,
and Law, in addition to the majority shareholders representatives. The Board of Commissioners
meets on a quarterly basis to review the operations of Board of Directors and the Company.
The Board of Directors of the Company meets frequently to review the operations of the Company
and to discuss and finalize important issues.
The Companys Internal Audit Department is headed by Mr. Yohanes Baptis Galuh Adjar
Pamungkas, ably assisted by experienced staff members. Internal audits on various functions are
conducted concurrently and the audit reports are being reviewed by the Independent Commissioner
and the Board of Directors periodically to ensure remedial actions.
The Company has a Corporate Secretarial Department headed by Mr. Tunaryo, and assisted by
experienced staff in the field of finance and legal affairs.
20
The Company has been disclosing material information to the shareholders, stakeholders, and the
public. The Company will continue to strive to bring more transparency and fairness in its reporting
to its shareholders, stakeholders, and the public.
Corporate Social Responsibility (CSR)
The Company has been continuosly and consistently participating in the community development
programme through its Corporate Social Responsibility Programmes (CSR) over the past several
years as a part of its commitment to create a value for society. APF has been actively involved, as a
part of its social obligation to create a better community and environment in and around its
operational facilities. APFs major intiatives are in the field of education, health, environmental
control, civic amenities, infrastructure and development of vocational skills. APF has been carrying
out these CSR activities on a more channelised and focusssed manner through Yayasan Asia Pacific
Fibre. Some of the major ongoing activities and initiatives are given below:
Education Programmes:
a) Construction of elementary school building in the Blendung Village, Klari, Karawang
district.
b) Distribution of scholarships to students in Karawang and Kaliwungu region.
Health care programme:
a) Providing free medical treatment and medicines to the needy people in Sumberejo and
Nolokerto, Kaliwungu, Kendal
b) Construction of building to house the primary health centre for in patients at Klari,
Karawang
Religious and Cultural activities:
a) Construction of boarding school for religious studies, prayer halls and facilities at
Karawang and Kaliwungu.
b) Actively supporting religious and cultural activities in the region to improve social
harmony.
Environmental aspects:
a) Go Green movement in coordination with the University of Jenderal Sudirman
Purwokerto.
b) Planting of teakwood trees in Kaliwung region.
Humanatarian Relief:
a) Renovation/reconstruction of flood effected schools Mangkang Kulon, Semarang.
b) Relief assistance to disaster effected people in Megelang and Padang.
Social and Economic empowerment:
a) Financial assitance to small scale/cottage industries in the region
b) Promotion of fiber waste processing units in the region to provide self employment to
local people.
21
Corporate Information
Date of Incorporation
February 15th, 1984
Listing on the Indonesia Stock Exchange
1.
2.
3.
4.
5.
6.
7.
8.
9.
22
10.
11.
12.
about the changes of Articles of Association, the authorized capital of the Company amounts
to Rp 16,000,000,000,000 consisting of 12,357,255,040 shares. The deed was approved by
Minister of Justice and Human Rights in its decision letter No. AHU-10588.AH.01.02 Year 2008
dated March 3, 2008.
The Company obtained the approval of the shareholders of the Company in the Extra Ordinary
General Meeting of Shareholders held on 24th March 2009, the issuance of 5% (118,845,397
shares) of Issued and Paid-up capital of series C share without preemptive right, for providing
stock option to the Company management and employees (Management Employee Stock
Option Programme).
The Company obtained the approval for the change of name to PT Asia Pacific Fibers Tbk from
Minister of Justice on 10th November 2009 and Indonesian Investment Coordinating
Board/BKPM on 2nd December 2009.
Based on the notaries deed of Aryanti Artisari, SH, M.Kn. No 107 dated February 23, 2012, the
stockholders agreed to used their option right regarding the Management Employee Stock
Option Programme (MESOP). It was connected with the notarial deed of Sutjipto, SH No. 91
dated March 24, 2009 regarding the issuance of 118,845,397 new authorized shares series C
(5% of issued and paid-up capital) without preemptive rights at par value of Rp 40 each. The
execution price at March 5, 2012 is Rp 45 each, and the shares have been fully paid-up on
February 20, 2012 and February 21, 2012. The shares also registered in the Indonesian Stock
Exchange through announcement No. Peng-P-00032/BEI.PPR/03-2012 dated March 5, 2012
and No. Peng-P-00033/BEI.PPR/03-2012 dated March 7, 2012.
Rp 8,500,000,000,000
Rp 10,000
Rp 2,196,960,000,000
Serie C
Authorized Capital
Nominal Value per share
Paid-up Capital
Shareholders
Damiano Investment
KYOA Investment Limited
PT. Multikarsa Investama*
Public
Rp 166,968,960,000
Rp 40
Rp 91,042,293,920
51.65%
6.04%
5.26%
37.05%
* Shares transferred by PT. Multikarasa Investama to PT. Bina Prima Perdana under IBRA
restructuring. Registration with Indonesia Stock Exchange yet to be completed.
23
Board of Commissioners
President Commissioner
Commissioner
Commissioner
Commissioner
IndependentCommissioner
Independent Commissioner
Board of Directors
President Director
Director
Director
Director
Companys Activities
Engaged in the production of PTA, Polymer, Polyester Fiber, Filament Yarn and Synthetic Fabrics.
Production Capacity as of 31 December 2012
Purified Therepthalic Acid (PTA)
Polyester Chips
Polyester Staple Fiber
Polyester Filament Yarn
340.000 tons/year
330.400 tons/year
198.000 tons/year
140.000 tons/year
Representative Office
The East 35th Floor, Unit 5-6-7
Jl. Lingkar Mega Kuningan Kav. E3.2 No. 1
Jakarta 12950
Tel : (62-21) 579-38555
Fax : (62-21) 579-38565
Registered Office
Desa Nolokerto
Kecamatan Kaliwungu, Kendal
Tel : (62-24) 8660272
Fax : (62-24) 8660275
Manufacturing Facilities
Plant 1:
Desa Kiara Payung,
Klari, Karawang
West Java - Indonesia
Tel : (62-267) 431971
Fax : (62-267) 431975
24
Plant 2:
Jl. Raya Kaliwungu Km. 19
Kendal, Semarang
Central Java - Indonesia
Tel : (62-24) 8660272
Fax : (62-24) 8660275
Share Registrar
PT. Datindo Entrycom
Wisma Dinners Club Annex
Jl. Jend. Sudirman 34-35
Jakarta 10220
Registered Public Accountant
Hendrawinata, Eddy & Siddhartha
(Indonesian Member firm of Kreston International)
Intiland Tower 18th Floor
Jl. Jend. Sudirman Kav.32
Jakarta 10220, Indonesia
Tel: (62-21) 571-2000
Fax: (62-21) 570-6118
25
REPRESENTATION LETTER
MEMBERS OF BOARD OF COMMISSIONERS AND DIRECTORS
REGARDING
RESPONSIBILITY FOR ANNUAL REPORT 2012
PT ASIA PACIFIC FIBERS Tbk.
We, the undersigned, certify that all the information in the Annual Report of PT Asia Pacific Fibers
Tbk. 2012, is complete and we are fully responsible for the accuracy of the contents.
Such statement was made correctly.
Jakarta, 23 April 2013
Kamun Cheong
Komisaris
Seeniappa Jegatheesan
Direktur
Robert McCarthy
Komisaris
26
27
CONTENTS
Schedule
Supplementary Financial Information
16
PT. Asia
Fax.
: +62
2'l 57938565
info@apf.co.id
Vasudevan Ravishankar
Office address
Residential address
As stated in ID
Jakarta Pusat
2.
Telephone number
021-s7938ss5
Title
President Director
Name
Offrce address
Residential address
As stated in ID
Telephone number
021-579385ss
Title
Director
Declare that
1.
2.
Jakarta 12950
Ap arteme nt P laza S enayan
Jl. Tinju No. I Pintu Satu Senayan
Jakarta
W-e areresponsible
for the preparation and presentation ofthe consolidated financial statements ofpT Asia pacific
The corsolidated financial statements of PT Asia Pacific Fibers Tbk and its Subsidiaries have been prepared
and
3. a.
b. The consolidated financial statement ofPT Asia Pacific Fibers Tbk and its Subsidiaries clo not contain any
incorrect information or material fact, nor do they omit infomration or material fact;
4' We are responsible for PT Asia Pacific Fibers Tbk and its Subsidiaries' intemal controisystem.
Thus this statement is made
trutbirlly.
19,2013
Director
,ru.ft'/lr
Registered Office: Jl. Raya Kaliwungu Km.19, Nolokerto Kaliwungu Kendal 513372 CentralJava - INDONESIA
Phone: +62 24 8660272 Fax.: +62 248660275
fiENDRAWI NATA
TDDYA SIDDHARTA
Kreston lnternational
A global network of independent accounting firms
No. :
044a/02|ISS/IV13
We have audited the accompanying consolidated statements of financial position of PT Asia Pacific Fibers
Tbk (the "Company") and its Subsidiaries as of December 31, 2012, December 31, 20ll and
January l,20ll, and the related consolidated statements of comprehensive income, consolidated statements
of changes in equity and consolidated statements of cash flows for the years ended December 31,2012 and.
2011. These consolidated financial statements are theresponsibility of theCompany's management. Our
responsibility is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audits in accordance with auditing standards established by the Indonbsian Institute of
Certified Public Accountants. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the consolidated financial position of PT Asia Pacific Fibers Tbk and its Subsidiaries as of
December 3I, 2012, December 3I, 20ll and January I, 2011, and the consolidated results of their
operations and their cash flows for the years ended December 3I, 2012 and 2011, in conformity with
Indonesian Financial Accounting Standards.
As disclosed in Note 4 to the consolidated financial statements, commencing January I,zIl2,the Company
changed its reporting cuffency from Indonesian Rupiah to United States Dollars by adopting Financial
Accounting Standard No. 10 (Revised 2010) "The Effects of Changes in Foreign Exchange Rate". As a
result, the consolidated statements of financial position as of December 31,2011 and January 1,2011 and
the related consolidated statement of comprehensive income, consolidated statement of changes in equity
and consolidated statement of cash flows for the year ended December 31,2011, which had been previously
presented in Indonesian Rupiah, have been re-measured to United States Dollar.
As disclosed in Note 55 to the consolidated financial statements, the Company has made adjustments on the
balance of property, plant and equipments and beginning balance of accumulated deficit stated in the
consolidated statements of financial position which the previously were reported in the consolidated
financial statements for the year ended December 3I, 2011 and January 1,2011. As a result, the 20ll
consolidated financial statements, were previously issued, have been restated. In our opinion, such
adjustments are appropriate and have been properly applied. In addition, as disclosed in Note 56 to the
consolidated financial statements, certain accounts in the consolidated financial statements for the years
ended December 31,2011and January l,20ll have been reclassified to confirms with the presentation of
the consolidated financial statements for the year ended December 31, 2012 which are in accordance with
the Capital Market and Financial Institution Supervisory Agency (BAPEPAM-LK)'s Regulation
No. VItr.G.7, enclosed in the decision letter No. KEP-34718L12012.
License: 1095/KM
.1,/
ZOLL
Tel.
: hes-ku n
License:
tZtz/
V\M.I/ 20
tL
www. kreston-l
donesia.co. id
Kreston Building
Palang [Vlerah No. 40
Medan 7AYJ" lndonesia
.,11"
Kreston lnternational
A global network of independent accounting firms
+{ENDRAWINATA
f DDYA SIDDHARTA
Page 2
The accompanying consolidated financial statements have been prepared assuming the Company and its
Subsidiaries will continue as a going concern. As disclosed in Note 2 to the consolidated financial
statements, as of December 31, 2012, December 31, 2011 and January l, 2011, the Company and its
Subsidiaries had capital deficiency of US$ 797,838,849, US$ 766,263,067 and US$ 773,804,972,
respectively, while the current liabilities exceeded its total of the assets by US$ 765,339,239,
US$ 714,783,22I, and US$ 690,782,523, respectively. The Company and its Subsidiaries' current liabilities
as of December 31, 2012 of US$ 1,000,263,703 or 86Vo of total current liabilities represent the secured
debts. As of the date of this report, one of the Company's secured creditors is PT Perusahaan Pengelola
Asset (PPA) (288o) has not yet given its approval on the restructuring plan proposed by the Company.
However, Damiano Investments BV., Netherland, a majority shareholder of the Company
(51.65Vo ownership) and majority secured debt holder (66Vo) provided working capital loan facility totaling
US$ 17,340,000 and letter of credit facility of US$ 78,752,462 for raw material procurement. Damiano
Investments BV., Netherland, is still provides the requisite funds for the Company's expenses in subsequent
year through its Third Loan Agreement. The Company's management also continues to exert effort and
expects to obtain the resolution of the secured debt restructuring in order for the Company to obtain working
capital from banks. The consolidated financial statements do not include adjustments that might result from
the outcome of this uncertainty.
Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements of
PT Asia Pacific Fibers Tbk and its Subsidiaries as of December 31, 2012, December 3I, 2011 and
January 1,2011 and for the years ended December 31,2012 and20ll, taken as whole. The supplementary
financial information of PT Asia Pacific Fibers Tbk (Parent Company only) as of December 31, 2012,
December 31, 20ll and January 1,2011, and for the years ended December 31, 2Ol2 and 20ll in schedule
I to schedule 6 is presented for the purpose of additional analysis and is not a required part of the basic
consolidated financial statements in accordance with Indonesian Financial Accounting Standards such
supplementary financial information has been subjected to the auditing procedures applied in the audit of the
basic consolidated financial statements and, in our opinion, is fairly stated, in all material respects, in
relation to the basic consolidated financial statements, taken as whole.
Iskarim
Supardjo
License No. AP. 0336
March 18,2013
The accompanying consolidated financial statements are intended to present the consolidated financial positions, results
of operations, and consolidated cash flows in accordance with accounting principles and practices generally accepted in
Indonesia and not that of any other jurisdictions. The standards, procedures and practices to audit such consolidated
financial statements are those generally accepted and applied in Indonesia.
Notes
December 31,
2012
US$
December 31,
2011
(As Restated)
US$
January 1,
2011
(As Restated)
US$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade receivables, net after
allowance for impairment of
US$ 15,657,945 in 2012 and 2011
and US$ 6,839,009 in 2010
Third parties
Related parties
Other receivables, net after
allowance for impairment of
US$ 36,721,575 in 2012 and 2011
and US$ 56,805,405 in 2010
Third parties
Other current financial assets
Inventories
Purchase advances
Prepaid taxes
Prepaid expenses
3g,i,6
9,793,989
3,438,164
9,775,651
3h,i,7
3h,i,7
57,988,028
27,789,291
50,095,415
29,634,147
46,948,272
29,887,938
3h,i,8
3h,i,9
3j,10
11
3t,29a
3k,12
3,300,907
7,720,808
79,954,633
34,605,192
14,786,048
1,101,627
2,529,473
6,067,345
87,677,359
37,846,870
13,202,393
1,169,786
492,869
3,055,625
51,397,186
32,373,354
14,070,762
894,164
237,040,523
231,660,952
188,895,821
3h,i,14
3h,i,15
32,474,040
1,113,711
34,996,344
1,140,893
47,392,149
1,905,194
3l,m,n,16
3o,17
3t,29d
129,394,646
12,750
3,216,621
184,837,123
304,460,819
14,570,331
166,211,768
220,974,360
368,328,493
TOTAL ASSETS
403,252,291
452,635,312
557,224,314
December 31,
2012
Notes
US$
December 31,
2011
(As Restated)
US$
January 1,
2011
(As Restated)
US$
3q,18
3q,18
3q,19
3t,29b
3q,20
3q,21
3q,22
3q,23
22,942,334
7,150
43,319,170
1,751,095
78,752,462
1,000,263,703
23,798,883
45,606,299
1,937,308
70,339,624
1,012,928,220
24,811,511
77,375,906
2,523,059
48,046,644
1,012,905,635
36,054,041
20,259,235
3q,25
3p,26
3p,27
3q
17,340,000
64,651
4,150,965
8,500,000
57,035
4,251,161
4,333,000
52,884
4,300,981
17,343,941
1,168,591,530
1,167,418,530
1,248,006,837
22,169,338
55,535
10,274,737
21,945,011
14,500,000
48,524
8,561,749
6,424,565
21,077,129
36,277,862
77,437
8,189,736
17,400,285
32,499,610
51,479,849
83,022,449
3q,24
3q,25
3p,26
3s,28
3t,29d
December 31,
2012
Notes
US$
December 31,
2011
(As Restated)
US$
January 1,
2011
(As Restated)
US$
635,689,316
624,344,507
(21,339)
635,165,191
624,325,603
(21,339)
635,165,191
624,325,603
(21,339)
2,345,301
(2,060,196,634)
2,345,301
(2,028,077,823)
2,345,301
(2,019,125,048)
(797,838,849)
(766,263,067)
(757,310,292)
(16,494,680)
(797,838,849)
(766,263,067)
(773,804,972)
403,252,291
452,635,312
557,224,314
30
3u,31
1c
32
33
Notes
2012
US$
Continuing Operations :
REVENUES
Net sales
Other operating revenues
Total revenues
COST OF GOODS SOLD
3v,37
3v,38
599,330,876
1,200,875
600,531,751
635,534,718
533,044
636,067,762
3v,39
(606,514,179)
(622,188,564)
(5,982,428)
Selling expenses
General and administrative expenses
Insurance claim settlement, net
Gain (loss) on foreign exchange transactions, net
Miscellaneous income, net
3v,41
3v,42
3v,36
3c
3v,44
43
3t
29e
29e
3b,45
3b,45
(13,725,399)
(18,726,822 )
86,182
(2,158,190)
782,045
(17,532,078)
(33,742,184)
(23,514,506)
(19,862,986)
(18,245,491)
(16,315,341)
(41,759,997)
(36,178,327)
9,641,186
9,892,352
9,641,186
9,892,352
(32,118,811 )
(26,285,975)
(6,396,381)
23,841,586
17,445,205
13,879,198
(14,052,194)
(17,843,646 )
1,667,691
11,816,164
879,907
(32,118,811 )
2011
(As Restated)
US$
(32,118,811)
(8,840,770)
(8,840,770)
Notes
2012
2011
(As Restated)
US$
US$
TOTAL NET LOSS ATTRIBUTABLE TO :
Owners of the Company
Non-controlling interests
Total Net Loss For The Year
TOTAL COMPREHENSIVE LOSS
ATTRIBUTABLE TO :
Owners of the Company
Non-controlling interests
Total Comprehensive Loss
EARNING (LOSS) PER SHARES :
Basic
Diluted
3w
34a
34b
(32,118,811)
(8,952,775)
112,005
(32,118,811)
(8,840,770)
(32,118,811)
(8,952,775)
112,005
(32,118,811)
(8,840,770)
(0.01 )
(0.01 )
(0.00)
(0.00)
Other Component
of Equity
Retained earnings
(accumulated deficit)
Total equity
(deficiency)
Difference on
attributable
restructuring among
to the owners
under common
of the
Additional
Notes Capital stock paid-in capital control companies Appropriated Unappropriated
Company
US$
US$
US$
US$
US$
US$
Balance as of January 1, 2011
(As Restated)
Reclassified due to lost of controls
635,165,191
33
624,325,603
(21,339)
2,345,301
30,31
635,165,191
624,325,603
524,125
18,904
(21,339)
2,345,301
635,689,316
624,344,507
(21,339)
2,345,301
(2,019,125,048)
(8,952,775)
(2,028,077,823)
(32,118,811)
(2,060,196,634)
(757,310,292)
(8,952,775)
(766,263,067)
543,029
(32,118,811)
(797,838,849)
NonControlling
Interest
US$
Total equity
(deficiency)
US$
(16,494,680)
(773,804,972)
16,382,675
16,382,675
112,005
(8,840,770)
(766,263,067)
543,029
(32,118,811)
(797,838,849)
Notes
2012
US$
2011
(As Restated)
US$
634,181,470
(107,539,191)
(16,579,363)
(61,251,557)
646,901,210
(121,707,320)
(15,571,185)
(38,847,286)
448,811,359
31,754
(17,979,160)
1,667,691
(4,911,388)
5,940,924
470,775,419
21,064
(15,781,720)
86,182
(11,407,441)
7,119,722
433,561,180
450,813,226
36
29
29
16
9
14
30
20
25
25
27
27
(13,295,299)
(521,237)
(2,224,168)
(9,005,981)
(233,946)
(2,825,916)
(16,040,704)
(12,065,843)
591,434
(404,619,673)
12,940,000
(18,600,000)
83,316
(68,689)
(428,449,261)
8,500,000
(26,110,862)
35,069
(59,831)
(409,673,612)
(446,084,885)
7,846,864
(7,337,502 )
(1,491,039)
1,035,533
45
3,438,164
9,775,651
9,793,989
3,438,164
(35,518)
1. GENERAL
a. Establishment and General Information
PT Asia Pacific Fibers Tbk (the Company) was established within the framework of the
Domestic Capital Investment Law No. 6 year 1968, as amended by Law No. 12 year 1970 based
on notarial deed No. 22 dated February 15, 1984 of Januar Tirtaamidjaja, S.H., notary in Jakarta.
The above laws were subsequently amended by the Limited Liability Company Law of Republic
of Indonesia No. 40 year 2007 dated August 16, 2007. The deed of establishment was approved by
the Minister of Justice of the Republic of Indonesia based on decision letter No.
C26107.HT.01.01.TH.84 dated October 26, 1984 and was published in Supplement No. 3247 of
State Gazette No. 72 dated September 7, 1990.
The Article of Association has been amended based on notarial deed No. 92 dated March 24, 2009
of Sutjipto, S.H., notary in Jakarta to adjust the Companys Article of Association with BapepamLK No. IX.J.1 dated May 14, 2008 concerning the Principles of Association of Public Offering of
Conduct Equity Securities and Public Companies. The deed of establishment was approved by the
Minister of Justice of the Republic of Indonesia based on decision letter No. AHU0052618.AH.01.09.Tahun 2009 dated August 14, 2009.
The Articles of Association have been amended several times. The latest amendment of the
Companys Articles of Association was based on notarial deed No. 50 dated September 10, 2009
of Sutjipto, S.H., notary public in Jakarta, concerning the change in the Companys name from
PT Polysindo Eka Perkasa Tbk to PT Asia Pacific Fibers Tbk. The deed was approved by the
Minister of Law and Human Rights of the Republic Indonesia based on his decision letter
No. AHU-54294.AH.01.02.Tahun 2009 dated November 10, 2009 and the publishment in
Supplement No. 21449 of State Gazette No. 77 dated September 24, 2010.
The Articles of Association have been amended several times. The latest amendment of the
Companys Articles of Association was based on the notarial deed No. 107 dated February 23,
2012 of Aryanti Artisari, S.H., M.Kn., notary in Jakarta, concerning the implemented the
Management Employee Stock Option Programme (MESOP) based on the Capital Market and
Financial Institution Supervisory Agency (BAPEPAM-LK)s Regulation No. IX.D.4. The deed
was approved by the Minister of Justice and Human Rights of the Republic Indonesia based on his
decision letter No. AHU-0018443.AH.01.09.Tahun 2012 dated February 29, 2012.
On February 4, 2011, the Company obtains the approval from the Chairman of the Capital
Investment Coordinating Board (BKPM) in his letter No. 2/B/II/PMDN/2011 with regard to the
cancellation of approval from the Chairman of the Capital Investment Coordinating Board
(BKPM) in his letter No. 249/II/PMDN.1997 dated December 2, 1997.
Further, the Company has received the approval of the Chairman of the Capital Investment
Coordinating Board (BKPM) for the expansion of the Fibre capacity in Karawang side through the
approval letter No. 2/B/II/PMDN/2011 dated February 24, 2011. This project has started in the
second quarter of 2012.
1. G E N E R A L (Continued)
a. Establishment and General Information (Continued)
In accordance with Article 3 of the Companys Articles of Association, the scope of the
Companys activities are mainly to engage in the manufacturing of chemical and synthetic fiber,
weaving and knitting, and other activities related to the textile industry. The Company is
domiciled in Kendal, Central Java with its plants located in Kendal, Central Java and Karawang,
West Java. The Companys representative office is located at The East Building, 35th Floor,
Jl. Lingkar Mega Kuningan Kav. E-3 No. 1, Jakarta. The Company started its commercial
operations in 1986. The Companys products are marketed both domestically and internationally,
including Europe, United States of America, Asia, Australia and the Middle East.
The Company has many ongoing social activities in the local environs of its two plant location in
Semarang and Karawang which the purpose of this activity is to improve the livelihood of the
surrounding communities. In order to carry out these programes more effectively, the Company
has established a foundation, Yayasan Asia Pacific Fibre on January 15, 2010. The deed was
approved by the Minister of Justice and Human Rights of the Republic Indonesia based on
decision letter No. AHU-960.AH.01.04.Tahun 2010 dated March 15, 2010.
The Companys immediate parent company is Damiano Investments BV., incorporated in
Netherland, and its ultimate parent company is ADM Capital and Spinnaker Capital Group,
incorporated and domiciled in Hong Kong and United Kingdom.
b. Public Offering of Shares, Notes Payable of the Company and its Subsidiaries
On December 14, 1990, the Company offered 12,000,000 shares to the public through the
Jakarta and Surabaya Stock Exchanges, now known as Indonesian Stock Exchange.
On October 8, 1993, the Company obtained the notice of effectivity from the Chairman of the
Capital Market Supervisory Agency (BAPEPAM), in his letter No. S-1738/PM/1993, for its
limited offering of 184,000,000 shares through rights issue with preemptive rights to
stockholders. These shares were listed in the Jakarta and Surabaya Stock Exchanges on
November 1, 1993.
On December 15, 1994, the Company obtained the notice of effectivity from the Chairman of
BAPEPAM, in his decision letter No. S-2027/PM/1994, for the change of par value from
Rp 1,000 to Rp 500 per share.
On May 20, 1996, the Company obtained the notice of effectivity from the Chairman of
BAPEPAM, in his decision letter No. S-778/PM/1996, for its offering of 1,104,000,000 shares
through rights issue II with preemptive rights to stockholders. These shares were listed in the
Jakarta and Surabaya Stock Exchanges on June 10, 1996.
1. GENERAL (Continued)
b. Public Offering of Shares, Notes Payable of the Company and its Subsidiaries (Continued)
On December 11, 1997, the Company obtained the notice of effectivity from the Chairman of
BAPEPAM, in his decision leter No. S-2844/PM/1997, for its offering of 2,185,920,000
shares through rights issue III with preemptive rights to stockholders. These shares were listed
in the Jakarta and Surabaya Stock Exchanges on January 5, 1998.
In 1994, the Company issued US$ 125,000,000 Unsecured Senior Notes which are listed in
Luxembourg. In 1996, the Company offered to the holders of the said unsecured notes to
exchange their notes with US$ 125,000,000 Guaranteed Senior Notes issued by PIFC with the
Company as the guarantor. These notes were listed in the Luxembourg Stock Exchange.
In 1996, PIFC, with the Company as a guarantor, also issued US$ 50,000,000 Secured
Floating Rate Notes and US$ 260,000,000 Guaranteed Secured Notes which were listed in the
Luxembourg Stock Exchange.
In 1997, PIFC, with the Company as a guarantor, issued US$ 250,000,000 Guaranteed Secured
Notes which were listed in the Luxembourg Stock Exchange.
Prior to January 2000, the above notes issued by PIFC were delisted from Luxembourg Stock
Exchange.
Beginning December 2004, all of the Companys outstanding shares totaling 4,393,920,000
shares were suspended regarding the the bankruptcy proceeding against the Company and
delay in submitting the required consolidated financial statements. The Companys shares
were still suspended after the Company removes their bankruptcy. However, the Company
took efforts to remove its suspension which includes submitting Companys future plan of
actions. Further in July 2006, all of the Companys shares resumed trading.
In 2006, The Company converted the unsecured debt amounted to 43,144,238,750 shares as
part of the implementation of Composition Plan which have been approved and ratified by the
Commercial Court. Based on the condition issued by Indonesian Stock Exchange, the new
shares can not be traded for 1 (one) year. Further in October 2007, the new Companys shares
were traded.
10
1. GENERAL (Continued)
b. Public Offering of Shares, Notes Payable of the Company and its Subsidiaries (Continued)
Further, based on the notarial deed of Sutjipto, S.H., No. 122 dated February 27, 2008
regarding shares purchase as the result of reverse stock split named PT Trimegah Securities
Tbk as Stand by Buyer. In addition, all shares from reverse stock were traded on
March 14, 2008.
On October 10, 2008, the Subsidiarys shares (PT Texmaco Jaya Tbk) have been delisted from
the Indonesian Stock Exchange based on its letter No. S-04741/BEI.PSR/09/2008 and
Peng-004/BEI.PSR/DEL/09-2008 due to the suspension of the trading shares and going
concern problem of the Subsidiary.
Since December 2, 2009, the Companys shares in the Indonesian Stock Exchange have been
changed with the new Companys name.
Based on the Extraordinary General Stockholders Meeting (RUPSLB) held on March 24, 2009
and based on notarial deed No. 91 dated March 24, 2009 of Sutjipto, S.H., notary in Jakarta,
the stockholders approved the issuance of 118,845,397 new authorized shares series C (5% of
issued and paid-up capital) without preemptive rights, for providing stock options to the
Companys management and employees (Management Employee Stock Option Programme /
MESOP). The notarial deed was approved by the Minister of Justice of the Republic of
Indonesia based on his decision letter No. AHU-0052619.AH.01.09.Tahun 2009 dated August
14, 2009. As per the Companys schedule that was reported to Indonesian Stock Exchange
dated March 17, 2009, its programe will be implemented at the latest period
(February 1, 2012).
Further, based on the notarial deed No. 107 dated February 23, 2012 of Aryanti Artisari, S.H.,
M.Kn., notary in Jakarta, the Management Employee Stock Option Programme / MESOP) has
been implemented with the execution price of Rp 45 each. All shares under MESOP have
been fully paid up through the Companys bank accounts dated February 20 and 21, 2012. It
has been registered in the Indonesian Stock Exchange through announcement No.
Peng-P-00032/BEI.PPR/03-2012 dated March 5, 2012 and No. Peng-P-00033/BEI.PPR/032012 dated March 7, 2012.
Based on the Extraordinary General Stockholders Meeting (RUPSLB) held on June 18, 2012
and based on the notarial deed No. 88 dated June 18, 2012 of Aryanti Artisari, S.H., M.Kn.,
notary in Jakarta, the stockholders approved the issuance of 74,872,600 new authorized shares
series C (3% of issued and paid-up capital) without preemptive rights, for providing stock
options to the Companys management and employees (Management Employee Stock Option
Programme / MESOP). Up to December 31, 2012, the Company has not issued shares under
this scheme. However, the Company has informed to Bapepam / IDX on the deferment of the
issuance of shares with letter dated December 3, 2012.
11
1. GENERAL (Continued)
c. Consolidated Subsidiaries
The Company has ownership interest of more than 50%, directly or indirectly, in the following
subsidiaries :
Subsidiaries
Domicile
Commercial Percentage of
Nature of Business Operations Ownership
%
Total Assets
2012
2011
2010
US$
US$
US$
(in million) (in million) (in million)
PT Texmaco
Jaya Tbk (TJ)
Karawang
Trading, weaving,
knitting and
processing
1972
92.00
*)
*)
68
PT Texmaco Graha
Busana (TGB)
(99% owned by TJ)
Jakarta
Trading of textile
and producing
ready to wear
garments and
accessories
1994
91.08
*)
*)
19
Polysindo International
Finance Company
BV (PIFC)
1994
100.00
759
759
759
Polysindo (Mauritius)
Ltd. (PML)
Preoperating
100.00
*) Not applicable due to PT Texmaco Jaya Tbk (TJ) and PT Texmaco Graha Busana (TGB)
deconsolidation (Note 45).
In 2001, the Company acquired 10,000 shares which represent 100% ownership in Polysindo
(Mauritius) Ltd. The shares were acquired for the amount of US$ 10,000. The difference
between the acquisition cost and the net assets of PML amounted to Rp 221,924,188
(equivalent to US$ 21,339) was recorded as difference on restructuring among companies
under common control account as part of the other component equity in the consolidated
statements of financial position.
There were no transactions between the Company and Polysindo (Maurutius) Ltd and
Polysindo International Finance Company BV during 2012, 2011 and 2010. The Company
intends to close the operation of its subsidiaries along with the restructuring of the Company.
Since April 2008, PT Texmaco Jaya Tbk (TJ) operations (Fleece division) are conducted by
the Company with tolling basis.
Since the second semester of 2004, PT Texmaco Graha Busana has halted its business
operations.
12
1. GENERAL (Continued)
d. Employees, Directors and Commissioners
The members of the Companys board of commissioners and directors as of December 31,
2012, 2011 and 2010 are as follows :
2012
2011
2010
Board of Commissioners :
President Commissioner
: Mr. Robert Clive Appleby
Independent Commissioners : Mr. Dono Iskandar
Djojosubroto
Mr. Timbul Thomas
Lubis SH
Commissioners
: Mrs. Cheong Kamun
Mr. Christopher
Robert Botsford
Mr. Robert Mc Carthy
Mr. Vasudevan
Ravi Shankar
Mr. Masjhud Ali
Mr. Seeniappa
Jegatheesan
Mr. Peter Vinzenz
Merkle
Mr. Vasudevan
Ravi Shankar
Mr. Masjhud Ali
Mr. Seeniappa
Jegatheesan
Mr. Peter Stanley
Grant
Mr. Peter Vinzenz
Merkle
Board of Directors :
President Director
Directors
: Mr. Vasudevan
Ravi Shankar
: Mr. Masjhud Ali
Mr. Seeniappa
Jegatheesan
Mr. Peter Vinzenz
Merkle
Mr. Antonitris, one of the Commissioners of the Company, resigned from the Board of
Commissioners based on the notarial deed of Aryanti Artisari, S.H., M.Kn. No. 87 dated June
18, 2012.
Mr. Peter Stanley Grant, one of the Directors of the Company, resigned from the Board of
Directors based on the resolution passed at the Extraordinary Shareholders Meeting held on
February 10, 2011.
Audit Committee is appointed based on BAPEPAM regulation No. IX.1.5 regarding the
forming and work guidance audit committee to comply with BAPEPAM-LK regulation Board
of Commissioners has formed Audit Committee.
The members of the Companys Audit Committee as of December 31, 2012, 2011 and 2010
are as follows :
Chairman
Member
13
1. GENERAL (Continued)
d. Employees, Directors and Commissioners (Continued)
The Companys corporate secretary as of December 31, 2012, 2011 and 2010 is Mr. Tunaryo.
In February 2009, the Company formed an internal audit department based on BAPEPAM-LK
regulation. The head of internal audit is Mr. Yohanes Baptis Galuh Adjar Pamungkas.
The total number of the Companys permanent employees as of December 31, 2012, 2011 and
2010 were 3,507; 3,366 and 3,158 persons, respectively (unaudited). As of
December 31, 2012, 2011 and 2010, the Subsidiarys permanent employees were Nil, Nil and
238 persons, respectively (unaudited).
14
July 1, 2007
15
Amortisation
Yr6
4.0%
Yr7
4.0%
Yr8
Yr9
4.0% 4.0%
Debt Restructuring
Yr5
4.0%
Yr5
17.5%
Yr6
17.5%
Yr7
Yr8
Yr9
17.5% 20.0% 22.5%
In addition, the Company and its Subsidiaries consolidated financial condition in 2012 showed
the following :
In 2012, there was a significant improvement in the capacity utilization of Companys facilities in
Karawang and Semarang. It achieved a capacity utilization level of more than 95% in both the
facilities.
16
Details
Preferred Creditors
Secured Creditors
Unsecured Creditors
Total
Amounts in Rupiah
15,478,161,747.06
602,914,924,862.14
1,515,354,797,944.92
2,133,747,884,554.12
No of Creditors
4
3
47
54
Subsequent to completion of debt verification, the Court had declared PT Texmaco Jaya Tbk
insolvent and ordered liquidation of the bankrupt estate vide Court Order
No 71/PAILIT/2010/PN.NIAGA.JKT.PST dated September 26, 2011.
The total receivable amount from PT Texmaco Jaya of Rp 1,106,832,761,717 was acknowledged
and registered as unsecured debt by the curators.
In the meantime, the Court has approved continued operation of its Fleece division as a going
concern with a view to maintain the value of the bankrupt assets. In accordance with the Court
approval and pursuant to the tolling agreement between the team of curators and PT Asia Pacific
Fibers Tbk, the Fleece division continued to be operated on tolling basis.
Pursuant to PSAK 10 (Revised 2010), the Company and its Subsidiaries have determined US
Dollar as its functional currency as predominant financial transaction such as Sales, Purchases,
Pricing, etc., are transacted in US Dollar currency. Hence the Company and its Subsidiaries have
chosen to prepare and present its consolidated financial statements in US Dollar currency effective
in January 2012. The consolidated financial statements for the year ended December 31, 2012 was
prepared in accordance with the guidelines provided under PSAK 10 and recalculated/ restated its
assets and liabilities wherever required.
The accompanying consolidated financial statements have been prepared on a going concern basis,
and do not include any adjustment that might result from the outcome of these uncertainties.
Related effects will be reported in the consolidated financial statements as they become known
and can be estimated. To date, the Company, in running its operations is supported through the
letter of credit facility and other working capital loans from Damiano Investments BV.,
Netherland and through the confidence and support of its suppliers and customers. Damiano
Investments BV., Netherland has also increased the bank loan facility for the procurement of raw
materials from US$ 80 million to US$ 100 million. Damiano Investments BV., Netherland has
also provided the requisite funds for the Companys capital expenses programs in 2012 and the
next year through its Third Loan facility.
17
Redemption Date
Subject to PIK
Request
US$ 18,670,630.00
US$ 3,498,707.77
US$ 22,169,337.77
(US$
(US$
(US$
(US$
(US$
(US$
1,108,466.89)
3,879,634.11)
3,879,634.11)
3,879,634.11)
4,433,867.55)
4,988,101.00)
US$ 22,169,337.77
18
Redemption
%
0.00%
0.00%
5.00%
17.50%
17.50%
17.50%
20.00%
22.50%
100.00%
c. Economic Condition
Despite slower global growth and continued uncertainty in the global financial market, Indonesias
economic growth remained strong throughout 2012. Indonesias GDP grew 6.20 percent in 2012,
slightly below 2011 is 6.50 percent due to the continuing slower growth of exports as the
slowdown in China hit demand for Indonesian commodities such as coal and palm oil. Indonesia's
resilience to the global economic slowdown and its domestic consumption continued to drive
robust economic growth and have made it a magnet for foreign investment in recent years, but the
country's first annual trade deficit in 2012 has put pressure on the rupiah currency.
While many other emerging markets in Asia are reliant on exports, more than 60 percent of
Indonesias GDP is generated by domestic consumption, shielding it from the vicissitudes of the
global economy. Indonesias growth rate of 6.23 percent last year meant that the country remained
among the worlds fastest-growing economies (the second best after that of China among G-20
members), the deceleration in the fourth quarter 2012 should provide a cautious approach for
future.
However on the other hand, Indonesia suffered its first ever-annual trade deficit in 2012 as exports
to most of its trading partners fell during the year amid the slowdown in the global economy. The
countys trade deficit reached US$1.65 billion in 2012 being the first such deficit in Indonesias
history. Exports dropped to US$190.04 billion, down by 6.61 percent from last year, much deeper
than the forecast. Imports, on the other hand surged by 8.20 percent to US$191.67 billion, were
driven by imports of intermediary goods for domestic production (73.10 percent, followed by
capital goods (19.90 percent) and consumer goods (7.00 percent). The rupiah weakened through
the year 2012 and has fallen steeply to close at Rp 9,670 per US$ 1 as compared to Rp 9,068 per
US$ 1 as at December 2011 (depreciating over 6.60% during the year).
The economic outlook for Indonesia in 2013 remains positive despite a weak global economy, but
maintaining strong investment growth is vital. The World Bank projects a marginal rise in GDP to
6.30 percent in 2013. This projection assumes that domestic consumption and investment growth
remain strong, while improving growth in Indonesias major trading partners supports a modest
recovery in exports.
19
20
b. Principles of Consolidation
The consolidated financial statements incorporate the financial statements of the Company and
entities controlled by the Company (its subsidiaries). Control is achieved where the Company has
the power to govern the financial and operating policies of an entity so as to obtain benefits from
its activities. The results of subsidiaries acquired or disposed of during the year are included in the
consolidated statement of comprehensive income from the effective date of acquisition and up to
the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of the subsidiaries to bring the
accounting policies used in line with those used by the Company.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
Non-controlling interests in subsidiaries are identified separately and presented within equity.
Effective January 1, 2011, the interest of non-controlling shareholders maybe initially measured
either at fair value or at the non-controlling interests proportionate share of the fair value of the
acquirees identifiable net asset. The choice of measurement is made on acquisition by acquisition
basis.
21
22
Foreign currency
US$
JPY
HKD
NOK
CHF
SGD
GBP
EUR
SEK
1
1
1
1
1
1
1
1
1
9,670
112
1,247
1,736
10,597
7,907
15,579
12,810
1,488
2011
Rp
9,068
117
1,167
1,313
9,636
6,974
13,969
11,739
1,314
2010
Rp
8,991
110
1,155
1,330
9,600
6,981
13,894
11,956
1,331
The entity is a post-employment defined benefit plan for the benefit of employees of either
the reporting entity or an entity related to the reporting entity. If the reporting entity is
itself such a plan, the sponsoring employers are also related to the reporting entity.
The entity is controlled or jointly controlled by a person identified in (i).
A person identified in (i) has significant influence over the entity or is a member of the
key management personnel of the entity (or of a parent of the entity).
All significant transactions and balances with related parties, whether or not conducted under
normal terms and conditions similar to those with third parties are disclosed in Note 46.
:
:
:
:
:
:
:
:
:
:
:
Discussed below are the impacts on the consolidated financial statements of these revised
accounting standards.
(i)
PSAK 10 (Revised 2009) : The Effects of Changes in Foreign Exchange Rate. PSAK 10
requires an entity to determine its functional currency and measure its results of operations
and financial position in that currency. Furthermore, it prescribes how to include foreign
currency transactions and foreign operations in the consolidated financial statements of an
entity and translate the consolidated financial statements into a presentation currency.
24
PSAK 16 (Revised 2011) : Property, Plant and Equipment. PSAK 16 clarifies that an entity
is required to apply the principles of this revised standard to items of property, plant and
equipment used to develop or maintain : (a) biological assets and (b) mineral rights and
mineral reserves such as oil, natural gas and similar non-regenerative resources. The scope
of this revised standard includes : (1) an asset that is being built or developed for future use
as investment property; (2) accounting treatment for property, plant and equipment
classified as held for sale ; and (3) recognition of property, plant and equipment from
government grants.
(iii) PSAK 24 (Revised 2010) : Employee Benefits. PSAK 24 provices guidance for calculation
and additional disclosures for employee benefits with some transitional provisions, which
include short-term employee benefits and long-term employee benefits. It provides an option
for recognition of actuarial gains or losses in addition to using the 10% corridor approach,
that is immediate recognition of actuarial gains or losses in period in which such occur and
as part of other comprehensive income. The revised standard also introduces a number of
disclosure requirements including disclosure of : (a) The percentage or amount of each
major category of investment making up total plan assets; (b) a narrative description of the
basis used to determine the overall expected rate of return on assets; (c) the amounts for the
current annual periods of present value of the defined benefit obligation and fair value of the
plan assets; and (d) the amounts for the current annual period and the previous four annual
periods of experience adjustments arising on the plan liabilities and plan assets.
(iv)
PSAK 26 (Revised 2011) : Borrowing Costs. PSAK 26 clarifies that a borrowing costs,
either directly or indirectly used in financing the construction of a qualifying asset, are
capitalized up to the date when construction is complete. For borrowings that are specific to
the acquisition of a qualifying asset, the amount to be capitalized is determined as the actual
borrowing costs incurred during the period, less any income earned from the temporary
investment of such borrowings. For borrowings that are not specific to the acquisition of a
qualifying asset, the amount to be capitalized is determined by applying a capitalization rate
to the amount expensed on the qualifying asset. All other borrowing costs are expensed as
incurred.
(v)
PSAK 30 (Revised 2011) : Leases. Under PSAK 30, when the lease contains elements of
land and buildings at the same time, the entity must review the classification for each
element separately, whether as a finance lease or operating lease. As a result of a separate
study conducted by the Entity taking into account the ratio between the economic life of the
lease with the re-examined from each of the elements and other factors that are relevant, any
element might result in a different lease classification.
25
PSAK 46 (Revised 2010) : Income Taxes. PSAK 46 describes the accounting treatment for
income taxes to account for the current and future tax consequences of the future recovery /
(settlement) of the carrying amount of assets (liabilities) that are recognized in the
consolidated statement of financial position ; and transactions and other events of the
current period that are recognized in the consolidated financial statements. In additon, the
Company also recorded interest and penalty for lack / excess income tax, if any, as part of
the current tax income (expense) in the consolidated statement of comprehensive income.
26
PSAK 62
PSAK 63
PSAK 64
ISAK 15
ISAK 16
ISAK 18
ISAK 19
ISAK 20
Investment Property
Accounting and Reporting by Retirement Benefit Plans
Accounting for Loss Insurance
Stripping Activities and Environmental Management in
General Mining
Construction Contracts
Accounting for Life Insurance
Financial Reporting for Non-Profit Organizations
Share-based Payments
Accounting for Government Grants and Disclosure of
Government Assistance
Insurance Contracts
Financial Reporting in Hyperinflationary Economies
Exploration and Evaluation of Mineral Resources
The Limit on a Defined Benefit Asset, Minimum Funds
Requirements and Their Interaction
Service Concession Arrangements
Government Assistance No Specific Relation to Operating
Activities
Applying the Restatement Approach under PSAK 63 :
Financial Reporting in Hyperinflationary Economies
Income Taxes Changes in the Tax Status of an Entity or its
Shareholder
27
Financial assets
Financial assets include cash and other financial instruments. Financial assets, other than hedging
instruments, are classified into the following categories: financial assets at fair value through
profit or loss, loans and receivables, held-to-maturity investments and available-for-sale financial
assets. Financial assets are assigned to the different categories by management on initial
recognition, depending on the purpose for which the investments were acquired. The designation
of financial assets is re-evaluated at every reporting date at which date a choice of classification or
accounting treatment is available, subject to compliance with specific provisions of applicable
accounting standards.
Regular purchases and sales of financial assets are recognized on their trade date. All financial
assets that are not classified as at fair value through profit or loss are initially recognized at fair
value plus any directly attributable transaction costs. Financial assets carried at fair value through
profit or loss is initially recognized at fair value and transaction costs are expensed in the
consolidated statement of comprehensive income.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in the active market. They arise when the entity provides money, goods or services
directly to a debtor with no intention of trading the receivables. They are included in current
assets, except for maturities greater than 12 months after the consolidated statement of financial
position date which are classified as non-current assets.
Loans and receivables are subsequently measured at amortized cost using the effective interest
method, less impairment loss, if any. Any change in their value is recognized in the consolidated
statement of comprehensive income.
Impairment loss is provided when there is objective evidence that the entity will not be able to
collect all amounts due to it in accordance with the original terms of the receivables. The amount
of the impairment loss is determined as the difference between the assets carrying amount and the
present value of estimated cash flows.
28
29
i.
30
j.
Inventories
Finished goods, work in process, raw materials and indirect materials are carried at the lower of
cost and net realizable value. Cost is determined by the average method. Cost includes all
expenses directly attributable to the manufacturing process as well as suitable portions of related
production overheads, based on normal operating capacity. Net realizable value is the estimated
selling price in the ordinary course of business less the estimated costs of completion and the
estimated costs necessary to make the sale.
An allowance for impairment is determined on the basis of estimated future usage or sale of
individual inventory items. The amount of any write-down of inventories to net realizable value
and all losses of inventories are recognized as an expense in the period the write-down or loss
occurs. The amount of any reversal of any write-down of inventories, arising from an increase in
net realizable value, is recognized as a reduction in the amount of inventories recognized as an
expense in the period in which the reversal occurs.
k. Prepaid Expenses
Prepaid expenses are charged to operations over the periods benefit using the straight-line method.
l.
31
20
3-20
5
5
5
m. Contruction in Progress
Construction in progress is stated at cost and presented as part of property, plant and equipment.
The accumulated cost will be reclassified to the appropriate property, plant and equipment account
when the contruction is substantially completed and the asset is ready for its intended use.
32
o. Intangible asset
The certain cost associated with the renewal of legal titles on the landrights are deferred and
amortized during twenty (20) years since April 2012.
p. Leases
Determination whether an arrangement is, or contains, a lease is made based on the substance of
the arrangement and assessment of whether fulfillment of the arrangement is dependent on the use
of a specific asset or assets, and the arrangement convey a right to use the asset.
Leases in which a significant portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases, Payments made under operating lease (net of any
incentives received from the lessor) are charged to the consolidated statement of comprehensive
income on a straight-line method over the term of the lease.
Each lease payment is allocated between the liability and finance charges so as to achieve a
constant rate on the finance balance outstanding. The corresponding rental obligations, net of
finance charges, are included in Credit Financing Payables. The interest element of the finance
cost is charged to the consolidated statement of comprehensive income over the lease period so as
to produce a constant periodic rate of interest on the remaining balance of the liability for each
period.
q. Financial Liabilities
Financial liabilities include Trade Payables, Accrued Expenses, Bank Loans, Secured Debts,
Short-term Loans, Notes Payable, Other Short-term Financial Liabilities, Borrowing from Other
Financial Institution (such as : Unsecured Debts and Notes Payables, Credit Financing Payables,
Working Capital Loans, and Finance Lease Liabilities), which are measured at amortized cost
using the effective interest rate method.
33
s. Employees Benefit
(i) Short-term employee benefits
Short-term employee benefits are recognized when they accrue to the employees.
34
35
Income Tax
The tax expense comprises current and deferred tax. Tax is recognized in the consolidated
statement of comprehensive income, except to the extent that it relates to items recognized in other
comprehensive income or directly in equity.
The current income tax charge is calculated on the basis of the tax laws enacted or subsequently
enacted at the reporting date, where the Company and its Subsidiaries operate and have a taxable
income. Management periodically evaluates positions taken in tax returns (SPT) with respect to
situations in which applicable tax regulation is subject to interpretation. It establishes provision
where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is recognized, using the balance sheet liability method, on temporary
differences arising between the tax bases of assets and liabilities and their carrying amounts in the
consolidated financial statements. However, deferred tax liabilities are not recognized if they arise
from the initial recognition of goodwill and deferred income tax is not accounted for if it arises
from initial recognition of an asset or liability in a transaction other than a business combination
that at the time of the transaction affects netihter accounting nor taxable profit or loss. Deferred
income tax is determined using tax rates that have been enacted or substantially enacted as at
reporting period and is expected to apply when the related deferred income tax asset is realized or
the deferred income tax liability is settled.
Deferred income tax assets are recognized only to the extent that it is probable that future taxable
profit will be available against which the temporary differences can be utilized.
Deferred income tax assets and liabilities are offset when there is a legal enforceable right to
offset current tax assets against current tax liabilities and when the deferred income taxes assets
and liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities where there is an intention to settle the balances on a net
basis.
Amendments to taxation obligations are recorded when an assessment is received or, if objected to
or appealed against, when the result of the objection or appealed is determined.
36
x. Segment Information
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision-maker. The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating segments, has been identified as
Board of Director that makes strategic decisions.
An operating segment is a component of an entity :
1. that engages in business activities from which it may earn revenue and incur expenses
(including revenue and expenses relating to the transaction with other components of the same
entity).
2. whose operating results are reviewed regularly by the entitys chief operating decision maker
to make decision about resources to be allocated to the segments and assess its performance.
3. for which discrete financial information is available.
37
38
December 31,
2010
Rp
31,177,273,662
3,000,000,000
87,892,873,462
1,000,000,000
454,265,227,439
268,722,447,175
422,111,905,807
268,722,447,175
22,937,261,126
795,058,287,598
343,195,422,233
119,411,500,545
10,588,262,122
52,018,685,430
4,431,384,634
462,112,098,195
291,068,826,915
126,510,220,118
8,241,335,214
26,473,126,432
2,100,374,367,330
1,698,564,217,952
December 31,
2010
Rp
NONCURRENT ASSETS
Non-trade receivables from related parties
Restricted cash in banks
Property, plant and equipment, net
Deferred tax assets
317,368,061,827
10,345,623,643
1,255,117,683,754
425,918,780,239
17,129,600,731
1,775,584,133,376
31,293,233,848
1,582,831,369,224
2,249,925,748,194
TOTAL ASSETS
3,683,205,736,554
3,948,489,966,146
637,839,711,337
9,185,233,096,043
431,987,380,441
9,107,034,576,501
324,161,880,678
182,150,784,488
215,808,272,379
17,567,520,945
413,557,919,140
223,080,294,936
274,011,964
22,684,826,196
695,686,772,082
77,078,000,000
517,187,846
38,573,261,263
38,958,003,000
38,670,122,950
475,480,013
155,665,338,586
10,586,174,968,953
11,220,829,471,835
NONCURRENT LIABILITIES
Long-term liabilities - net of
current maturity :
Unsecured Debts and Notes Payable
Working capital loans
Credit financing payables
Employees benefit liabilities
Deferred tax liabilities
198,997,359,748
131,486,000,000
440,023,412
77,637,935,506
30,516,083,167
189,504,468,044
326,174,259,309
696,228,253
73,633,912,844
89,854,542,024
439,077,401,833
679,863,410,474
CURRENT LIABILITIES
Bank Loans
Secured Debts
Short term loans
Notes payable
Trade payables
Third parties
Liabilities for purchase of property, plant and equipment
Taxes payable
Accrued expenses
Current maturity of long-term liabilities:
Working capital loans
Obligation under finance lease
Credit financing payables
Other current liabilities
Total Current Liabilities
39
December 31,
2010
Rp
2,283,248,477,500
5,586,506,149,053
12,075,095,048
2,283,248,477,500
5,586,506,149,053
12,232,185,356
8,280,000,000
(15,232,156,355,833)
8,280,000,000
(15,701,308,253,547)
(7,342,046,634,232)
(7,811,041,441,638)
(141,161,474,525)
(7,342,046,634,232)
(7,952,202,916,163)
3,683,205,736,554
3,948,489,966,146
The following is the consolidated statement of comprehensive income for the year ended December
31, 2011 presented in Indonesian Rupiah currency.
2011
Rp
OPERATING REVENUES
Net sales
Other operating revenues
Total operating revenues
5,577,223,233,050
4,673,888,541
5,581,897,121,591
(5,191,343,118,311)
GROSS PROFIT
390,554,003,280
Selling expenses
General and administrative expenses
Insurance claim settlement, net
Loss on foreign exchange transactions, net
Miscellaneous income, net
(120,468,271,917)
(164,956,335,861)
755,425,253
(83,939,034,346)
6,804,776,757
(361,803,440,114)
40
28,750,563,166
Finance costs
(142,618,575,240)
(113,868,012,074)
59,286,095,421
59,286,095,421
(54,581,916,653)
Discontinued operations :
Profit from discontinued operations
Gain from disposal of Subsidiary
8,301,337,613
656,593,951,279
664,895,288,892
610,313,372,239
(209,453,744)
52,363,436
(157,090,308)
610,156,281,931
609,369,397,980
943,974,259
610,313,372,239
609,212,307,672
943,974,259
610,156,281,931
257
41
5. ESTIMATION UNCERTAINTY
The preparation of the consolidated financial statements in conformity with Indonesian Financial
Accounting Standard required management to make judgments, estimates and assumption that effect
the application of accounting policies and amounts reported in the consolidated financial statements.
Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an on going basis. Revisions to accounting
estimates are recognized in the period in with the estimates are revised and in the future period
effected.
Information about critical judgments and estimates in applying accounting policies that have the most
significant effect on the amounts recognized in the consolidated financial statements are as follows :
Functional currency
The functional currency of the Company and its Subsidiaries are the currency of the primary economic
environment in which each entity operates. The Company and its Subsidiaries consider some factors in
determining its functional currency, among others, the currency that mainly influences the revenue,
cost and financing activities, and the currency in which receipts from operating activities are usually
retained.
Based on the economic substance of the underlying circumstances relevant to the Company and its
Subsidiaries, the functional currency has been determined to be US Dollar, as this reflected the fact
that majority of the Company and its Subsidiaries operational businesses are influenced by pricing in
domestic commodity markets with a US Dollar economic environment.
Impairment
An impairment loss is recognized for the amount by which the assets or cash-generating units
carrying amount exceeds its recoverable amount. To determine the recoverable amount, management
estimates expected future cash flows from each cash-generating unit and determines a suitable interest
rate in order to calculate the present value of those cash flows. In the process of measuring expected
future cash flows management makes assumptions about future operating results. These assumptions
relate to future events and circumstances. The actual results may vary, and may cause significant
adjustments to the Company and Subsidiaries assets within the next financial year. In most cases,
determining the applicable discount rate involves estimating the appropriate adjustment to market risk
and the appropriate adjustment to asset-specific risk factors.
42
2011
US$
2010
US$
37,789
27,650
6,644
8,315
170
41,957
33,635
6,354
3,039
161
41,281
33,113
2,223
719
164
80,568
85,146
77,500
7,780,057
935,461
1,447,706
1,133,745
7,408,441
1,275,831
50,152
359,146
86,338
179,040
12,190
103,022
271,211
103,049
293,405
59,989
713,036
49,732
214,345
152,795
132,151
1,691
9,713,421
3,353,018
9,696,094
Cash in banks :
Third Parties :
Deutsche Bank
US Dollar account
Rupiah account
Carried forward
44
2011
US$
2010
US$
3,353,018
9,696,094
Cash in banks ::
Third Parties :
Brought forward
9,713,421
1,160
897
Total
9,713,421
3,353,018
9,698,151
9,793,989
3,438,164
9,775,651
Cash at bank can be withdrawn at anytime. Cash in banks generally earn interest at rates based on
daily bank deposit rates.
No cash and cash equivalents are placed with the related parties.
The Companys cash on hand were covered by insurance with PT Asuransi Rama Satria Wibawa
against direct loss or damage to the cash and cheque of Rp 3,900,000,000 (equivalent to
US$ 403,309 in 2012, US$ 430,084 in 2011 and US$ 433,767 in 2010), respectively. Management
believes that the insurance coverage is adequate to cover possible losses arising from such risks.
The net carrying value of cash and cash equivalents are considered a reasonable approximation of
fair value.
7. TRADE RECEIVABLES
This account consists of :
Third parties :
2012
US$
2011
US$
2010
US$
Local debtors
Foreign debtors
51,373,330
6,614,698
44,356,060
5,739,355
48,239,699
5,547,579
Total
Less : Allowance for impairment
57,988,028
50,095,415
53,787,278
(6,839,006)
57,988,028
50,095,415
46,948,272
Net
45
2011
US$
2010
US$
43,545,691
14,145,445
204,355
92,537
38,252,438
11,725,493
25,509
91,975
37,065,253
9,651,522
231,497
6,839,006
57,988,028
50,095,415
53,787,278
Changes in the allowance for impairment from third parties are as follows :
2012
US$
Beginning balance
Balance of unconsolidated subsidiary
Movement during the year :
Addition
Deduction
Ending balance
2011
US$
6,839,006
(6,839,006)
2010
US$
6,839,006
6,839,006
Trade receivables from third parties are short-term and non interest bearings.
All amounts of trade receivables from third parties have been reviewed for indication of impairment.
Based on the review of the status of individual trade receivables from third parties as of December 31,
2012 dan 2011, the Company and its Subsidiaries managements believe that there is no requirement
of allowance for impairment as the amounts are fully collectible. And based on the review of the status
of individual trade receivables from third parties as of December 31, 2010, the Company and its
Subsidiaries managements believe that the impairment of trade receivables from third parties are
adequeate to cover possible losses on uncollectible receivables from third parties because of the
financial difficulties of the Subsidiarys customers.
The net carrying value of trade receivables from third parties is considered a reasonable approximation
of fair value.
46
2012
US$
2011
US$
2010
US$
57,779,157
50,084,099
47,394,372
208,871
11,316
6,392,906
57,988,028
50,095,415
53,787,278
2012
US$
2011
US$
2010
US$
27,789,291
15,657,945
29,634,147
15,657,945
29,887,938
43,447,236
(15,657,945)
45,292,092
(15,657,945)
29,887,938
27,789,291
29,634,147
29,887,938
Related parties :
PT Multikarsa Investama
PT Texmaco Jaya Tbk (under bankruptcy)
Total
Less : Allowance for impairment
Net
A summary of the aging of trade receivables from related parties based on the date of invoice is as
follows :
Up to 1 month
> 1 month 3 months
> 3 months 6 months
> 6 months 1 year
> 1 year
Total
47
2012
US$
2011
US$
2010
US$
43,447,236
45,292,092
29,887,938
43,447,236
45,292,092
29,887,938
15,657,945
Ending balance
15,657,945
2011
US$
2010
US$
15,657,945
15,657,945
Trade receivables from related parties are short-term and non interest bearings.
Additions in allowance for impairment in 2011 of US$ 15,657,945 (equivalent to Rp 141,986,246,529)
due to the impairment loss on uncollectible trade receivables from PT Texmaco Jaya Tbk (under
bankruptcy), and has been eliminated with the discountinued operations financial statements from
Subsidiary (Note 45).
Based on the review of the status of the trade receivables from related parties, management believes
that the carrying value is a reasonable approximation of fair value. The impairment was not provided
since the related party, PT Multikarsa Investama, is under debt restructuring program and the
settlement of the receivables from related party will be done when the debt restructuring is completed.
The details of trade receivables from related parties based on currencies are as follows :
2012
US$
2011
US$
2010
US$
15,657,945
15,657,945
Rupiah
Rp 268,722,447,174 in 2012, 2011 and 2010
27,789,291
29,634,147
29,887,938
43,447,236
45,292,092
29,887,938
Total
The net carrying value of trade receivables from related parties is considered a reasonable
approximation of fair value.
48
8. OTHER RECEIVABLES
2012
US$
Third parties :
Receivables from purchase discounts
Receivables from import clearance
MESOP receivables
Receivables from employees
Interest receivables on time deposit
Others
49
2011
US$
2010
US$
646,363
144,976
341,499
33,612
4,486
369,615
225,314
190,169
38,283
735
291,902
116,174
93,509
201
282,985
1,540,551
746,403
492,869
15,812,049
5,679,940
5,579,991
3,192,784
3,094,847
2,065,103
728,191
583,812
15,823,861
5,694,585
5,579,991
3,192,784
3,114,230
2,065,103
728,191
515,892
18,248,643
8,855,883
5,650,035
3,811,313
4,123,251
2,065,103
728,191
496,867
442,916
194,587
181,639
136,945
93,407
68,868
49,883
25,434
15,816
496,867
472,320
194,587
193,698
136,945
93,407
72,199
49,883
25,434
15,816
496,867
209,491
3,423,049
287,251
737,959
49,883
36,957
101,539
38,443,079
38,465,793
48,825,415
Brought forward
PT Perkasa Indosteel
PT Wahana Jaya Perkasa
PT Sarana Daycrown Industri
PT Bina Peranan Busana
PT Citra Indah Textile
PT Mutiara Persada Inti
Polysindo (UK) Ltd., England
Coastal Group Ltd., South Africa
PT Ungaran Sari Garments
Polysindo (USA) Inc., America
PT Elok Prima Mitra Busana
PT Citra Abadi Sejati
PT Cipta Busana Jaya
PT Kreasi Indah Textile
PT Busana Perkasa Garments
PT Mahkota Indah Sentosa
2012
US$
2011
US$
2010
US$
38,443,079
38,465,793
48,825,415
13,327
11,102
11,102
2,336
985
13,327
11,102
11,102
2,336
985
173,041
11,102
11,102
2,336
2,030
3,231,099
2,471,054
867,530
309,316
266,231
217,937
150,638
97,725
81,050
45,777
42,022
Total
Less : Allowance for impairment
38,481,931
(36,721,575)
38,504,645
(36,721,575)
56,805,405
(56,805,405)
Net
1,760,356
1,783,070
Total
3,300,907
2,529,473
492,869
Other receivables from these above companies represent the loans and advances for working capital
purposes. The loans and advances are not subject to interest and have no terms of repayment. Until
now, these Companies above are unable to pay their payables to the Company and its Subsidiaries due
to their financial difficulties. Most of the companies have already stopped operations and are still
under the restructuring program with PT Perusahaan Pengelola Asset (PPA). As of March 2013, the
debt restructuring program has not yet been completed.
Changes in the allowance for impairment are as follows :
2012
US$
Beginning balance
Balance of unconsolidated subsidiary
Movement during the year :
Addition
Deduction
36,721,575
Ending balance
36,721,575
50
2011
US$
56,805,405
(20,053,331)
(30,499)
36,721,575
2010
US$
56,771,705
33,700
56,805,405
2011
US$
2010
US$
37,925,716
37,242,664
56,805,405
2,096,766
2,008,384
492,869
40,022,482
39,251,048
57,298,274
The net carrying value of other receivable are considered a reasonable approximation of fair value.
51
2011
US$
2010
US$
827,301
330,834
111,222
6,654,903
5,483,630
2,696,000
181,489
51,357
5,758
193,538
54,361
4,982
195,195
48,183
5,025
238,604
252,881
248,403
7,720,808
6,067,345
3,055,625
a. Time Deposits
In 2012 and 2011, time deposit with Deutsche Bank, Jakarta of Rp 2,000,000,000 (equivalent
to US$ 206,825 and US$ 220,556) represents one year time deposit with interest rate of 5.80%
per annum, due on December 10, 2013.
52
2011
US$
2010
US$
6,661,003
5,489,730
2,696,000
Rupiah
Rp 10,248,315,332 in 2012,
Rp 5,237,815,332 in 2011, and
Rp 3,233,390,432 in 2010
1,059,805
577,615
359,625
7,720,808
6,067,345
3,055,625
Total
No other current financial assets are placed with the related parties.
The net carrying value of other current financial assets is considered a reasonable approximation of
fair value.
53
10. INVENTORIES
2012
US$
2011
US$
2010
US$
Finished goods
Work in process
Raw materials
Indirect materials
34,787,985
6,073,039
19,078,632
20,014,977
35,079,711
6,781,122
28,114,454
17,702,072
19,839,474
4,824,283
10,607,108
16,126,321
Total
Less : Allowance for impairment
79,954,633
87,677,359
51,397,186
79,954,633
87,677,359
51,397,186
Net
Based on the review of the physical condition of the inventories at the end of each year, the Company
and its Subsidiaries management believe that no allowance for impairment is deemed necessary.
As at December 31, 2012, 2011 and 2010, the Companys inventories are covered by insurance with
PT Asuransi Indrapura against fire loss and other risks totaling US$ 79,500,000, US$ 68,000,000 and
US$ 51,000,000, respectively, which in the opinion of the management is adequate to cover losses
arising from such risks. As at December 31, 2010, the Subsidiaries inventories were not covered by
insurance against fire loss and other risks.
In 2012 and 2011, all inventories were used as collateral for the Companys bank loans and working
capital loans that were received from Damiano Investments BV., Netherland (Notes 20 and 25). And
in 2010, all inventories were used as collateral for the Companys bank loans, working capital loans
and the Subsidiarys short-term loans received from Damiano Investments BV., Netherland (Notes 20,
22 and 25).
54
2011
US$
2010
US$
1,865,844
4,680,032
1,109,367
5,462,897
4,494,903
860,912
2,860,793
3,403,251
127,212
7,655,243
10,818,712
6,391,256
26,949,949
27,028,158
25,982,098
34,605,192
37,846,870
32,373,354
55
2011
US$
2010
US$
1,061,627
40,000
1,081,786
88,000
850,592
43,572
1,101,627
1,169,786
894,164
2011
US$
2010
US$
106,410,712
38,025,981
106,410,712
40,548,285
52,944,090
144,436,693
(111,962,653)
146,958,997
(111,962,653)
52,944,090
(5,551,941)
32,474,040
34,996,344
47,392,149
Non-trade receivables from PT Multikarsa Investama represent the cash receipts from AR
International Limited, Hong Kong of Rp 51,421,394,625 (equivalent to US$ 5,317,621 in 2012,
US$ 5,670,643 in 2011 and US$ 5,719,208 in 2010) due to refund on the Companys advances for the
purchase of property, plant and equipment (machinery and equipment). The remaining balance of US$
32,708,360, US$ 34,877,642 and US$ 47,224,882, respectively as of December 31, 2012, 2011 and
2010 represents advance payments for salary and other expenses.
Changes in the allowance for impairment are as follows :
2012
US$
Beginning balance
Movement during the period :
Addition
Deduction
111,962,653
Ending balance
111,962,653
2011
US$
5,551,941
106,410,712
111,962,653
2010
US$
5,551,941
5,551,941
Addition in allowance for impairment in 2011 of US$ 106,410,712, which were recognized as
additional of allowance for impairment due to the uncollectible non-trade receivables from
PT Texmaco Jaya Tbk (under bankruptcy), and and has been eliminated with the discountinued
operations financial statements from Subsidiary (Note 45).
56
2011
US$
2010
US$
109,297,108
109,297,108
2,886,396
35,139,585
37,661,889
50,057,694
144,436,693
146,958,997
52,944,090
2011
US$
2010
US$
2,799
2,985
7,125
402,735
702,330
429,470
702,330
619,467
1,272,458
3,863
4,120
4,155
1,927
1,927
1,927
57
61
62
1,113,711
1,140,893
1,905,194
57
2011
US$
2010
US$
1,784,685,143
1,770,504,803
2,185,541,688
13,071,160
1,784,685,143
1,770,504,803
2,198,612,848
1,658,522,816
1,588,852,556
1,882,878,941
13,071,160
1,658,522,816
1,588,852,556
1,895,950,101
126,162,327
181,652,247
302,662,747
3,232,319
3,184,876
1,798,072
129,394,646
184,837,123
304,460,819
58
Accumulated depreciation :
Building and improvement
Machinery and equipment
Transportation equipment
Office equipment
Book value
3,864,156
107,454
18,541
1,770,504,803
3,990,151
39,518,357
1,541,723,603
4,756,473
2,854,123
1,767,285
67,807,126
93,275
2,574
41,285,642
1,609,530,729
4,849,748
2,856,697
1,588,852,556
69,670,260
1,658,522,816
181,652,247
Beginning
US$
Accumulated depreciation :
Building and improvement
Machinery and equipment
Transportation equipment
Office equipment
Store equipment
Book value
10,190,189
10,190,189
Ending
US$
15,529,702
47,221,395
1,699,859,778
5,038,480
2,855,448
2 0 1 1
Carrying cost :
Land
Building and improvement
Machinery and equipment
Transportation equipment
Office equipment
Store equipment
15,529,702
47,221,395
1,713,914,123
5,145,934
2,873,989
1,784,685,143
126,162,327
Ending
US$
47,994,266
87,838,121
2,028,307,217
8,529,463
10,800,334
2,072,287
211,434
5,562,433
46,934
304
32,464,564
40,828,160
335,807,944
3,537,917
7,945,190
2,072,287
1,798,072
15,529,702
47,221,395
1,699,859,778
5,038,480
2,855,448
2,185,541,688
5,821,105
422,656,062
1,798,072
1,770,504,803
68,494,097
1,793,371,132
8,144,799
10,796,626
2,072,287
3,432,065
83,975,302
98,534
1,659
32,407,805
335,622,831
3,486,860
7,944,162
2,072,287
39,518,357
1,541,723,603
4,756,473
2,854,123
1,882,878,941
87,507,560
381,533,945
1,588,852,556
302,662,747
181,652,247
59
Carrying cost :
Land
Building and improvement
Machinery and equipment
Transportation equipment
Office equipment
Store equipment
Accumulated depreciation :
Building and improvement
Machinery and equipment
Transportation equipment
Office equipment
Store equipment
Book value
Beginning
US$
Ending
US$
47,994,266
87,838,121
2,026,820,002
8,412,632
10,798,613
2,072,287
1,487,215
342,333
1,721
225,502
47,994,266
87,838,121
2,028,307,217
8,529,463
10,800,334
2,072,287
2,183,935,921
1,831,269
225,502
2,185,541,688
64,455,940
1,709,318,037
8,313,091
10,791,548
2,072,287
4,038,157
84,053,095
57,210
5,078
225,502
68,494,097
1,793,371,132
8,144,799
10,796,626
2,072,287
1,794,950,903
88,153,540
225,502
1,882,878,941
388,985,018
302,662,747
Carrying cost :
Machinery and equipment
Accumulated depreciation :
Machinery and equipment
Book value
2010
Carrying cost :
Machinery and equipment
Beginning
US$
Ending
US$
13,071,160
13,071,160
13,071,160
13,071,160
13,071,160
13,071,160
13,071,160
13,071,160
Beginning
US$
Ending
US$
13,071,160
13,071,160
13,071,160
13,071,160
60
Beginning
US$
Accumulated depreciation :
Machinery and equipment
Book value
Ending
US$
13,071,160
13,071,160
13,071,160
13,071,160
Construction in progress :
2 0 1 2
Beginning
US$
Carrying cost :
Machinery and equipment
3,184,876
2 0 1 1
Beginning
US$
Carrying cost :
Machinery and equipment
1,798,072
2 0 1 0
Beginning
US$
Carrying cost :
Machinery and equipment
Ending
US$
10,190,189
3,232,319
Ending
US$
1,798,072
3,184,876
Ending
US$
2012
US$
1,798,072
2011
US$
Total
69,574,411
95,849
86,134,534
91,527
69,670,260
86,226,061
48,416
8,665
1,224,418
1,281,499
69,670,260
61
87,507,560
All of property, plant and equipment as at reporting date are fully used to support the Companys
operation activities. As of December 31, 2012 and 2011, total acquisition cost of property, plant and
equipment with zero net carrying amounts (fully depreciated assets) amounted to US$ 742,492,712
and US$ 702,128,695, respectively, but the company is still used them for their operational.
Management believes that the estimated recoverable amounts of property, plant and equipment exceed
their carrying values and, hence, no impairment of property, plant and equipment should be recorded
as at the reporting date.
In 2012 and 2011, All of the Companys land, machinery and equipment are used as collateral for
secured bond holders and working capital loans from Damiano Investments BV., Netherland and
PT Bina Prima Perdana (BPP) / PT Perusahaan Pengelola Asset (PPA) (Notes 21 and 25).
63
2011
US$
2010
US$
13,247
(497)
12,750
497
Intangible assets represents legal cost associated with the acquisition of landrights for land located at
Bandung (166 square meters) and is amortized over the useful life (Hak Guna Bangunan) of 20 years
Local suppliers
Foreign suppliers
2012
US$
2011
US$
2010
US$
10,537,328
12,405,006
16,123,355
7,675,528
12,313,277
12,498,234
23,798,883
24,811,511
22,942,334
Total
64
Up to 1 month
> 1 month 3 months
> 3 months 6 months
> 6 months 1 year
> 1 year
Total
2012
US$
2011
US$
2010
US$
18,541,840
2,697,906
565,265
612,648
524,675
19,161,428
2,811,274
356,290
492,350
977,541
15,659,849
2,464,002
529,857
426,336
5,731,467
22,942,334
23,798,883
24,811,511
The details of trade payables to third parties based on currencies are as follows :
2012
US$
2011
US$
2010
US$
18,551,978
19,653,155
11,091,004
Rupiah
Rp 30,425,613,348 in 2012,
Rp 35,088,919,356 in 2011, and
Rp 117,868,634,044 in 2010
3,146,392
3,869,532
13,109,625
European Euro
EUR 284,392 in 2012,
EUR 136,455 in 2011 and
EUR 419,905 in 2010
8376,738
176,648
558,379
55,368
48,770
17,509
25,665
18,216
22,817
25,113
15,546
22,153,293
23,798,883
24,810,279
Japan Yen
Yen 4,780,473 in 2012,
Yen 3,779,861 in 2011, and
Yen 1,431,156 in 2010
Great British Poundsterling
GBP 16,660 in 2011 and GBP 11,788 in 2010
Singapore Dolar
SGD 27,904 in 2012, SGD 32,654 in 2011
and SGD 20,022 in 2010
Carried forward
65
Brought forward
2012
US$
2011
US$
2010
US$
22,153,293
23,798,883
24,810,279
Swedish Krona
SEK 5,128,579 in 2012
789,041
Swiss Franc
CHF 1,154 in 2010
Total
1,232
22,942,334
23,798,883
24,811,511
2012
US$
2011
US$
2010
US$
Related party :
7,150
A summary of the aging of trade payables to related party based on the date of invoice is as follows :
2012
US$
7,150
Up to 1 month
2011
US$
2010
US$
The details of trade payables to related party based on currencies are as follows :
2012
US$
Rupiah
Rp 69,142,248 in 2012
7,150
2011
US$
2010
US$
Trade payables to third parties local and foreign suppliers represent payables for purchase of raw
materials and indirect materials. These are non-interest bearing with clear terms of repayments.
The fair value of these short-term financial liabilities is not individually determined as the carrying
amount is considered a reasonable approximation of fair value.
There is no guarantee given on the trade payables.
66
39,768,727
1,925,678
948,570
365,393
117,671
81,000
112,131
Total
43,319,170
2011
US$
42,083,898
2,058,155
748,081
349,969
133,709
75,000
157,487
45,606,299
2010
US$
72,752,046
2,437,592
923,795
962,337
122,107
70,000
108,029
77,375,906
The accrued interest of certain secured debts, short-term loans and notes payable represent interest
expenses accrued from the year 2001, 2002 and 2003, while all the unpaid and accrued interest up to
2000 according to the MOA had been waived. The interest expense after the year 2003 has not been
recorded by the Company and its Subsidiaries due to the restructuring process that has not yet been
completed (Note 21).
In February 2010, PT Perusahaan Listrik Negara (Persero) had filed a petition in The Hight Court of
Central Java (Pengadilan Tinggi Jawa Tengah) to the Subsidiary for the recovery of their outstanding
on electricity bill for December 2003 up to September 2004 amounting to Rp 2,821,800,525. Until
August 19, 2011, the outstanding payable has not yet paid by the Subsidiary.
Deduction in 2011 represents the deduction of accrued expenses which financial statements were no
longer consolidated in 2011 due to the Subsidiary (PT Texmaco Jaya Tbk) is stated at bankruptcy and
insolvency so it caused that the Company have lost of control (Note 45).
The details of accrued expenses based on currencies are as follows :
2012
US$
United States Dollar
Rupiah
Rp 413,168,541,805 in 2012,
Rp 411,036,714,332 in 2011, and
Rp 517,758,000,723 in 2010
Total
2011
US$
2010
US$
592,330
278,033
19,789,653
42,726,840
45,328,266
57,586,253
43,319,170
45,606,299
77,375,906
The fair value of these short-term financial liabilities is not individually determined as the carrying
amount is considered reasonable approximation of fair value.
67
Related Party :
Damiano Investment BV., Netherland
2012
US$
2011
US$
2010
US$
78,752,462
70,339,624
48,046,644
According to the amendment loan agreement dated March 3, 2006 and August 31, 2006 between the
Company (Borrower), and Damiano Investments BV., Netherland (Lender), and PT Ferrier Hodgson
(Monitoring Agent), the lender agreed to provide the Letter of Credit facility in the aggregate principal
amount of US$ 50,000,000. Accordingly, the Company can also use the lender name as guarantor for
opening Letter of Credit in Barclays Bank Plc, Hongkong (Barclays). In addition, the Company should
pay a financing fee of 2.25% per month on the aggregate amounts of the facility in Barclays to
Damiano Investments BV., Netherland.
Based on the amendment loan agreement dated January 1, 2009 between the Company (Borrower),
and Damiano Investments BV., Netherland (Lender), and PT Ferrier Hodgson (Monitoring Agent),
from April 3, 2009 onwards, any and all references to Barclays Letter of Credit Facility shall be
moved to Deutsche Bank AG : Letter of Credit Facility. The fee charges by Damiano Investments
BV., Netherland on this facility was 1.50% per month.
The Letter of Credit facility always changed based on the Companys requirements for purchasing of
raw materials. Based on the recent amendment loan agreement dated April 8, 2011 between the
Company (Borrower) and Damiano Investments BV., Netherland (Lender), and PT Ferrier Hodgson
(Monitoring Agent), the lender agreed to increase the Letter of Credit facility in the aggregate
principal amount from US$ 50,000,000 to US$ 80,000,000.
Further, based on the recent amendment loan agreement on July 2012 between the Company
(Borrower) and Damiano Investments BV., Netherland (Lender), and PT Ferrier Hodgson (Monitoring
Agent), the lender agreed to increase the Letter of Credit facility in the aggregate principal amount
from US$ 80,000,000 to US$ 100,000,000.
The availability of facility as of December 31, 2012, 2011 and 2010 were US$ 84,019,693,
US$ 76,934,921 and US$ 50,717,707, respectively. And the letter of credit is used by the Company to
purchase of raw materials totaling US$ 78,752,462 in 2012, US$ 70,339,624 in 2011 and
US$ 48,046,644 in 2010, respectively. This is a revolving facility. All bank loans are denominated in
US Dollar.
For the years ended December 31, 2012 and 2011, a fee on Bank Loan has been recognized in the
amount of US$ 13,969,873 and US$ 10,433,384, respectively, and is presented as part of finance costs
accounts in the consolidated statements of comprehensive income (Note 43).
68
2011
US$
2010
US$
122,526,000
50,000,000
250,000,000
260,000,000
122,526,000
50,000,000
250,000,000
260,000,000
122,526,000
50,000,000
250,000,000
260,000,000
682,526,000
682,526,000
682,526,000
134,703,610
29,055,834
1,125,826
34,756,139
143,646,218
29,055,834
1,100,204
38,664,463
144,876,422
29,055,834
1,130,119
36,819,558
199,641,409
212,466,719
211,881,933
9,897,556
9,672,290
9,935,285
7,870,573
7,691,440
7,900,575
12,117,088
12,117,088
12,117,088
3,303,097
3,303,097
3,303,097
33,188,314
32,783,915
33,256,045
Banks
Damiano Investments BV., Netherland
(Ex. PT Bank Finconesia)
EUR 7,471,539
69
2012
US$
2011
US$
2010
US$
78,628,322
4,340,104
1,889,252
50,302
78,628,322
4,628,232
1,846,253
48,779
78,628,322
4,667,869
1,896,454
49,012
84,907,980
85,151,586
85,241,657
1,000,263,703
1,012,928,220
1,012,905,635
On November 30, 2001, the Company entered into Definitive Memorandum of Agreement (MOA)
with the noteholders regarding the restructuring plan of the Company. However, it has not yet been
executed by the Company and the MOA and automatically terminated. However, on March 14, 2007,
the Company has issued a new SDRP (Secured Debt Restructure Proposal) to its secured creditors for
the restructure of its Secured debts including the bonds. Up to March 2013, the Company has not
obtained the approval from the secured creditors, particularly from PPA (28% of total secured debt)
has not given their decision on restructuring settlement.
In July 2007, the Company submitted a Secured Debt Restructure Plan (SDRP) to its secured creditors
comprising of secured bond holders and PPA. However, PPA has not approved this SDRP till March
2012, though the same is being supported by Damiano Investments BV., Netherland. Damiano
Investments BV., Netherland currently hold approximately 93% of the secured bonds and banks, other
than PPA. In November 2010 and December 2010, PPA announced a Sale of Texmaco Assets and
Shares programme which includes the fixed assets held as security by PPA in the CompanySemarangs site. However for some reasons, the programme was later called off and cancelled.
A. 13% Guaranteed Secured Notes, US$ 122,526,000.
The Company issued US$ 125,000,000 Unsecured Senior Notes in June 1994 carrying an interest
rate of 13% per annum. The notes are due for repayment in 2001. In May 1996, the Company
offered to the holders of the said unsecured notes to exchange their notes with 13% Guaranteed
Senior Notes due in 2001 which were listed in Luxembourg Stock Exchanges and issued by PIFC
with the Company as the guarantor.
All holders of the unsecured notes exchanged their notes with the new secured notes except for the
holders of unsecured notes amounting to US$ 2,474,000. In August 1997, the Company paid part
of the 13% Unsecured Senior Notes amounting to US$ 1,250,000.
70
71
2011
US$
2010
US$
805,630,341
805,630,341
805,630,341
European Euro
(EUR 15,688,979 in 2012, 2011 and 2010)
20,783,207
20,310,187
20,862,433
Japan Yen
(JPY 3,001,711,400 in 2012, 2011 and 2010)
34,756,139
38,664,463
36,819,558
50,302
48,779
49,012
139,043,714
148,274,450
149,544,291
1,000,263,703
1,012,928,220
1,012,905,635
Swiss Franc
(CHF 45,902 in 2012, 2011 and 2010)
Rupiah
(Rp 1,344,552,714,414 in 2012, 2011 and 2010)
Total
The fair value of these short-term financial liabilities is not individually determined as the carrying
amount is considered a reasonable approximation of fair value.
2011
US$
2010
US$
18,587,500
5,908,437
9,865
889,779
133,188
400,000
200,000
26,128,769
72
2011
US$
2010
US$
3,133,692
1,670,669
Total
4,804,361
Others :
PT Bank Sumitomo Mitsui Indonesia
PT Bank Negara Indonesia (Persero) Tbk
(US$ 198,595 and Rp 27,115,346,119)
1,906,484
3,214,427
Jumlah lain-lain
5,120,911
9,925,272
36,054,041
Loans to PT Bina Prima Perdana (BPP) represent loans to PT Bank Negara Indonesia (Persero) Tbk,
PT Bank Dharmala and PT Bank Putera Multikarsa which have been default and transferred to IBRA.
Pursuant to the debt restructuring scheme of the Master Restructuring Agreement (MRA) dated May
23, 2001, the Subsidiaries debts to IBRA are to transferred to BPP in 2002. For this transfer, BPP
issued Exchangeable Bond (EB) to IBRA.
On November 30, 2001, the Subsidiary entered into Definitive Memorandum of Agreement (MOA)
with the bondholders and IBRA for restructuring plan of Subsidiary. However, it has not yet been
executed by the Subsidiary and the MOA could be automatically terminated.
On February 26, 2004, IBRA issued a letter of default notice to PT Bina Prima Perdana. The letter
stated that PT Bina Prima Perdana as the textile holding company has failed to pay the Exchangeable
Bond (EB) coupons due on August 18, 2003.
On February 27, 2004, IBRA was dissolved by the Government. The outstanding or unfinished affairs
under the handling of IBRA were transferred to a company called PT Perusahaan Pengelola Assets
(PPA) for further management and restructuring process under the supervision of the Ministry of
Finance.
The significant information relating to the loans are as follows :
73
PT Bank Dharmala
The Subsidiary did not recognize the interest expense incurred from the short-term loan from
PT Bank Dharmala since 2004 due to the Subsidiary is under the restructuring process, and the
interest payables will not be counted. As of December 31, 2010, the Subsidiary has interest
payables of Rp 7,856,714,054 (equivalent to US$ 873,842), and was presented as part of accrued
expenses in the consolidated statements of financial position.
74
75
76
2011
US$
5,000,000
4,118,150
9,118,150
Others :
US Dollar
11,141,085
Total
Less : currently maturing of notes payable
20,259,235
(20,259,235 )
2012
2011
2010
18.75%
10.50%
2010
US$
Due to the suspension of the bank operations as noteholders in 1999, the loans have been transferred
to IBRA for administration. Pursuant to the debt restructuring scheme of the Master Restructuring
Agreement (MRA) dated May 23, 2001, the Subsidiarys debts to IBRA are to be transferred to a new
holding company (NewCo), PT Bina Prima Perdana in 2002. For this transfer, PT Bina Prima Perdana
issued Exchangeable Bond (EB) to IBRA.
The above notes payable are unsecured. The arranger of the notes payable is PT Asia Kapitalindo
Securities.
On February 26, 2004, IBRA issued a letter of default notice to PT Bina Prima Perdana. The letter
stated that PT Bina Prima Perdana as the textile holding company has failed to pay the Exchangeable
Bond (EB) coupons due on August 18, 2003.
77
On February 27, 2004, IBRA was dissolved by the Government. The outstanding or unfinished affairs
under the handling of IBRA were transferred to a company called PT Perusahaan Pengelola Assets
(PPA) for further management and restructuring process under the supervision of the Ministry of
Finance.
The Subsidiary did not recognize the interest expense incurred from the notes payable since 2004 due
to the Subsidiary is under restructuring process, and the interest payables will not be counted. As of
December 31, 2010, the Subsidiary has interest payables of US$ 732,349 plus Rp 3,082,246,608
(equivalent to US$ 1,075,164), and was presented as part of accrued expenses in the consolidated
statements of financial position.
Deduction in 2011 represents the deduction of notes payable which financial statements were no
longer consolidated in 2011 due to the Subsidiary (PT Texmaco Jaya Tbk) is stated at bankruptcy and
insolvency so it caused that the Company have lost of control (Note 45).
The above notes payable are collateralized by the Subsidiarys property, plant and equipment (Note
16).
The fair value of these short-term financial liabilities is not individually determined as the carrying
amount is considered a reasonable approximation of fair value.
22,169,338
2011
US$
21,945,011
2010
US$
21,077,129
The Company has taking steps to implement the Composition Plan (Rencana Perdamaian) as approved
by the unsecured creditors of the Company and ratified by the Commercial Court. On September 29,
2006, the unsecured creditors comprising of Banks, PT Bina Prima Perdana, Leasing, and Notes stand
at US$ 18,670,630 was restructured into Fixed Rate Notes under custodian of The Hongkong and
Shanghai Banking Corporation Limited, Hong Kong.
As of December 31, 2012, 2011 and 2010, the total restructured unsecured debt were US$ 22,169,338,
US$ 21,945,011 and US$ 21,077,129, respectively which are comprising of principal notes at
US$ 18,670,630 plus unpaid capitalized interest of US$ 3,498,708 in 2012, US$ 3,274,381 in 2011
and US$ 2,406,499 in 2010.
Based on the Minutes of Noteholders Meeting between the Company (Borrower) and The Hongkong
and Shanghai Banking Corporation Limited (Noteholder) dated January 30, 2009, the Noteholder shall
defer the redemption dated of the unsecured debt and notes payable for 3 (three) years by revoking and
replacing the table of redemption dates below :
78
Rate of return
2012
2013
2014
2015
2016
2017
5.00%
17.50%
17.50%
17.50%
20.00%
22.50%
Further, based on the Minutes of Noteholders Meeting between the Company (Borrower) and The
Hongkong and Shanghai Banking Corporation Limited (Noteholder) dated December 23, 2011, the
Noteholder shall defer the redemption dated of the unsecured debt and notes payable for 3 (three)
years by revoking and replacing the table of redemption dates below :
Years
Rate of return
2015
2016
2017
2018
2019
2020
5.00%
17.50%
17.50%
17.50%
20.00%
22.50%
Related Party :
Damiano Investments BV., Netherland
Less : current maturity of long-term liabilities
Long-term liability net of current maturity
2012
US$
2011
US$
2010
US$
17,340,000
(17,340,000)
23,000,000
(8,500,000)
40,610,862
(4,333,000)
14,500,000
36,277,862
79
80
81
2011
US$
2010
US$
59,272
17,010
6,946
36,958
45,758
31,973
27,828
66,909
8,814
46,194
8,404
120,186
105,559
130,321
(33,586)
(11,043)
(6,946)
(13,076)
(22,780)
(13,834)
(20,421)
(20,758)
(5,567)
(18,155)
(8,404)
(64,651)
(57,035)
(52,884)
55,535
48,524
77,437
82
83
Type of asset
2012
US$
2011
US$
Machinery
Machinery
Machinery
Machinery
Machinery
1,233,718
1,165,187
970,270
602,339
329,467
Total
4,300,981
(4,300,981)
2010
US$
As of December 31, 2010, the interest rate and lease period are as follows :
Interest rate
Lessor
PT Hanil Bakrie Finance Corporation
PT Koexim Mandiri Finance
PT Perjahl Leasing Indonesia
PT Piranti Mulia Binisindo
PT GE Astra Finance
SIBOR + 2 %
SIBOR + 2.55%
SIBOR + 2.8125%
SIBOR + 2%
SIBOR + 4.75% for 1999
SIBOR + 2.75% from
2000 until 2002
Period ended
2007
2004
2003
2005
2002
The future minimum lease payments under finance lease as of December 31, 2012, 2011 and 2010 are
as follows :
84
2011
US$
2010
US$
4,891,397
(590,416)
4,300,981
(4,300,981)
In 2007, PT Koexim BDN Finance (formerly PT Koexim Mandiri Finance) had filed a petition to the
Hight Jakarta Court for recovery of leased equipment.
In 2010, PT Hanil Bakrie Finance Corporation with PT Koexim BDN Financing (Formerly
PT Koexim Mandiri Finance) had filed a petition to the District Jakarta Court. And on
August 19, 2011, the Commercial Court of Central Jakarta declared that the Subsidiary (PT Texmaco
Jaya Tbk) is in state of bankruptcy and insolvency.
Deduction in 2011 represents the deduction of obligation under finance lease which financial
statements were no longer consolidated in 2011 due to the Subsidiary (PT Texmaco Jaya Tbk) is
stated at bankruptcy and insolvency so it caused that the Company have lost of control (Note 45).
The fair value of these obligation under finance lease is not individually determined as the the carrying
amount is considered a reasonable approximation of fair value.
The details of obligation under capital lease based on currencies are as follows :
2012
US$
2011
US$
2010
US$
4,300,981
85
2011
US$
2010
US$
18,296,212
(1,616,334)
(6,405,141)
15,100,623
(1,955,813)
(4,583,061)
12,809,715
(2,206,725)
(2,413,254)
Net liability
10,274,737
8,561,749
8,189,736
The movements in the present value of unfunded obligation over the year are as follows:
2012
US$
2011
US$
15,100,623
(940,080)
1,387,440
960,116
2,279,745
(491,632)
12,809,715
(1,652,239)
(127,873)
1,273,683
962,304
2,269,428
(434,395)
18,296,212
15,100,623
2010
US$
8,143,997
370,470
1,179,859
722,058
2,998,329
(604,998)
12,809,715
As of December 31, 2012, 2011 and 2010, all of defined benefit obligation is unfunded obligation so
there is no fair value of plan assets.
The amounts recognized in the consolidated statements of comprehensive income are as follows:
2012
US$
Current service cost
Interest costs
Past service cost
Losses on curtailments and settlements
Total (Note 42)
86
2011
US$
2010
US$
1,387,440
960,116
217,721
172,350
1,273,683
962,304
232,174
79,129
1,179,859
722,058
185,221
48,942
2,737,627
2,547,290
2,136,080
8,561,749
(533,007)
(491,632)
2,737,627
10,274,737
2011
US$
2010
US$
8,189,736
(1,652,239)
(88,643)
(434,395)
2,547,290
6,368,931
289,723
(604,998)
2,136,080
8,561,749
8,189,736
:
:
:
:
:
:
6.10% p.a. in 2012, 6.90% p.a. in 2011, and 8.90% p.a. in 2010
8.00% p.a. in 2012, 2011 and 2010
The 1980 Commissioners Standard Ordinary Mortality Table.
10% in 20 years old and decline until 54 years old
1% of mortality rate
Projected Unit Credit Method
Assumptions regarding future mortality experience are set based on actuarial advice in accordance
with published statistics and experience in each territory. In Indonesia, the mortality assumptions used
are based on Commissioner Standard Ordinary Tables 1980 (CSO 1980).
Management reviewed the assumptions used and is of the opinion that the assumptions are reasonable.
Management believes that the provision for severance provided is adequate to cover the potential
liability required by Labour Law No. 13/2003.
The sensitivity of the present value of defined benefit obligation and current service cost to changes in
the weighted principal assumptions of 1% is as follows :
Descriptions
Discount Rate
5.10%
In US$
In %
20,202,437
1,562,980
87
10.42%
12.65%
Discount Rate
7.10%
In US$
In %
16,651,745
1,241,350
(8.99%)
(10.53%)
18,296,212
1,158,683
2011
US$
2010
US$
2009
US$
2008
US$
15,100,623
12,809,715
8,143,997
7,347,382
15,100,623
12,809,715
8,143,997
7,347,382
1,649,536
681,563
(65,731)
(65,020)
29. TAXATION
a. Prepaid Taxes
2012
US$
Overpayment of corporate income tax
2008
2009
2010
2011
2012
Value added Tax
Total prepaid taxes
2011
US$
2010
US$
3,988,440
4,911,387
5,886,221
3,997,374
3,988,440
5,216,579
104,455
2,122,264
4,018,172
7,825,871
14,786,048
13,202,393
14,070,762
2012
US$
2011
US$
2010
US$
b. Taxes Payable
127,291
61,260
143,125
1,419,419
104,109
64,596
254,953
1,513,650
243,011
121,927
259,272
1,565
1,680,596
216,688
1,751,095
1,937,308
2,523,059
88
2011
US$
(41,759,997 )
(36,178,327 )
(122,068,657 )
(41,759,997 )
(158,246,984)
(50,856,056 )
107,849
12,719
920,620
(383,000 )
(31,754 )
5,722,906
106,338
19,725
(30,499)
2,493,421
(349,556)
(21,064)
(50,229,622 )
7,941,271
36,996,057
(131,555 )
(12,750 )
1,712,988
41,983,699
(138,478)
2,057,666
38,564,740
43,902,887
(53,424,879 )
(146,189,664 )
(106,402,826)
(39,786,838)
(199,614,543)
(146,189,664)
Timing differences :
Depreciation expense of property, plant and
Equipment
Amortization of deferred charges
Intangible assets
Long-term employee benefits liabilities
89
2011
US$
Prepaid taxes :
Income tax article 22
Income tax article 23
(4,903,200)
(8,187)
(3,988,440)
(4,911,387)
(3,988,440)
(4,911,387)
(3,988,440)
The estimated taxable loss for the year ended December 31, 2011 as reported in the 2011
corporate income tax return amounted to Rp 981,369,261,111 (equivalent to US$ 107,902,063),
and the tax return was submitted to the tax office in April 2012. For this discrepancy, the
Company did not make any correction to the corporate income tax return.
(800,263,385,084 )
(41,759,997 )
Functional
Currency
US$
(41,759,997 )
(800,263,385,084 )
90
(41,759,997 )
(41,759,997 )
1,010,866,399
120,247,500
8,331,874,273
(3,483,385,000 )
(299,613,563 )
9,373
9,454
9,050
9,095
9,435
5,679,989,609
Timing differences :
Depreciation expense of
property, plant and
equipment
Amortization of deferred
charges
Intangible assets
Long-term employee benefits
liabilities
254,626,452,689
(295,053,242 )
(115,500,000 )
21,718,769,343
6,883
2,243
9,059
12,679
275,934,668,790
Estimated taxable loss for the year
before fiscal loss carry forward
(518,648,726,685 )
Fiscal loss carry forward
(1,407,879,574,216 )
Total estimated accumulated
taxable loss
Estimated corporate income tax
(1,926,528,300,901)
(44,580,486,515)
(78,750,000)
(50,856,056 )
(50,856,056 )
107,849
12,719
920,620
(383,000 )
(31,754 )
107,849
12,719
920,620
(383,000 )
(31,754 )
(50,229,622 )
(50,229,622 )
36,996,057
36,996,057
(131,555 )
(12,750 )
(131,555 )
(12,750 )
1,712,988
1,712,988
38,564,740
38,564,740
(53,424,879 ) (53,424,879 )
(146,189,664 ) (146,189,664 )
(199,614,543)
Prepaid taxes :
Income tax article 22
Income tax article 23
Estimated overpayment of
corporate income tax
9,708
9,631
Functional
Currency
US$
(199,614,543)
(4,903,200)
(8,187)
(4,903,200)
(8,187)
(44,659,236,515)
(4,911,387)
(4,911,387)
(44,659,236,515)
(4,911,387)
(4,911,387)
91
9,092
9,618
Functional
Currency
US$
(1,110,367,644,627 )
(122,068,657 ) (122,068,657 )
(1,224,235,656,701 )
(158,246,984)
(113,868,012,074 )
(36,178,327 )
933,029,594
173,275,000
(274,213,845 )
21,806,504,613
(3,095,834,930 )
(185,188,989 )
8,774
8,785
8,991
8,746
8,857
8,792
19,357,571,443
Timing differences :
Depreciation expense of
property, plant and
equipment
Amortization of deferred
charges
Long-term employee benefits
liabilities
218,295,231,725
(310,582,360 )
19,159,732,318
237,144,381,683
92
5,200
2,243
9,311
(36,178,327 )
(158,246,984)
5,722,906
5,722,906
106,338
19,725
(30,499)
2,493,421
(349,556)
(21,064)
106,338
19,725
(30,499)
2,493,421
(349,556)
(21,064)
7,941,271
7,941,271
41,983,699
41,983,699
(138,478)
(138,478)
2,057,666
2,057,666
43,902,887
43,902,887
(967,733,703,575 )
(440,145,870,641 )
(1,407,879,574,216)
9,095
11,063
(36,167,173,650)
Functional
Currency
US$
(106,402,826)
(39,786,838)
(106,402,826)
(39,786,838)
(146,189,664)
(146,189,664)
Prepaid taxes :
Income tax article 22
Income tax article 23
Estimated overpayment of
corporate income tax
(3,988,440)
(3,988,440)
(36,167,173,650)
(3,988,440)
(3,988,440)
(36,167,173,650)
(3,988,440)
(3,988,440)
9,068
As of
December 31, 2011
US$
Deferred tax assets (liabilities) :
Accumulated taxable loss
Valuation allowance
Depreciation expense of
property, plant and equipment
Amortization of deferred charges
Intangible assets
Long-term employee benefit liabilities
2 0 1 2
Credited (charged)
to the conosolidated
statements of
comprehensive
income for the year
US$
As of
December 31, 2012
US$
36,547,416
(36,547,416)
13,356,220
(13,356,220)
49,903,636
(49,903,636)
(9,402,121)
837,119
2,140,437
9,249,015
(32,889)
(3,187)
428,247
(153,106)
804,230
(3,187)
2,568,684
(6,424,565)
9,641,186
3,216,621
93
As of
December 31,
2010
US$
Deferred tax assets (liabilities) :
Accumulated taxable loss
Valuation allowance
Depreciation expense of
property, plant and equipment
Amortization of deferred charges
Long-term employee benefit liabilities
The Subsidiaries :
TJ
TGB
9,946,710
(9,946,710)
26,600,706
(26,600,706)
36,547,416
(36,547,416)
(19,898,045)
871,739
1,626,021
10,495,924
(34,620)
514,416
(9,402,121)
837,119
2,140,437
(17,400,285)
10,975,720
(6,424,565)
14,552,116
18,215
(1,084,290)
922
(13,467,826)
(19,137)
14,570,331
(1,083,368)
(13,486,963)
(2,829,954)
9,892,352
(13,486,963)
As of
December 31, 2009
US$
Deferred tax assets (liabilities) :
Accumulated taxable loss
Valuation allowance
Depreciation expense of
property, plant and equipment
Amortization of deferred charges
Long-term employee benefit liabilities
2 0 1 0
Credited (charged)
to the statements
comprehensive
of income for
the year
US$
(6,424,565)
As of
December 31, 2010
US$
22,669,329
(22,669,329)
(18,939,421)
18,939,421
3,729,908
(3,729,908)
(30,759,842)
908,180
1,216,623
10,861,797
(36,441)
409,398
(19,898,045)
871,739
1,626,021
(28,635,039)
11,234,754
(17,400,285)
16,323,874
17,422
(1,771,758)
793
14,552,116
18,215
16,341,296
(1,770,965)
14,570,331
(12,293,743)
9,463,789
(2,829,954)
The Subsidiaries :
TJ
TGB
As of
December 31,
2010
US$
94
A reconciliation between the total tax expense (income) and the amounts computed by
applying the effective tax rate to profit (loss) before income tax is as follows :
2012
US$
2011
US$
(41,759,997 )
(36,178,327 )
(122,068,657 )
(41,759,997 )
(158,246,984)
(10,439,999 )
(39,561,746)
13,356,219
26,600,706
(12,557,406)
1,985,320
(9,641,186)
(10,975,720)
(9,641,186)
95
1,083,368
(9,892,352)
Continuing operations :
Current income tax :
The Company
Subsidiaries
2011
US$
9,641,186
10,975,720
9,641,186
10,975,720
9,641,186
10,975,720
f.
2012
US$
(1,083,368)
9,641,186
9,892,352
On November 7, 2012, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 26 assessment
letter for fiscal period March 2012. Based on the Indonesian Tax Authorities letter
No. 00004/104/12/092/12, the Company had additional tax liability of Rp 20,905,432. The
tax liability was paid on November 28, 2012.
On September 5, 2012, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period August 2011. Based on the Indonesian Tax Authorities letter
No. 00028/407/11/092/12, the Company had an overpayment of Rp 17,500,076,809. The
overpayment of Value Added Tax was received on September 27, 2012.
On May 30, 2012, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 23 assessment
letter for fiscal year 2010. Based on the Indonesian Tax Authorities letter
No. 000108/503/10/511/12, the Company had no additional tax liability.
96
On May 30, 2012, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 21 assessment
letter for fiscal year 2010. Based on the Indonesian Tax Authorities letter
No. 000152/501/10/511/12, the Company had no additional tax liability.
On May 30, 2012, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 4(2) assessment
letter for fiscal year 2010. Based on the Indonesian Tax Authorities letter
No. 000109/540/10/511/12, the Company had no additional tax liability.
On May 22, 2012, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 26 assessment
letter for fiscal year 2010. Based on the Indonesian Tax Authorities letter
No. 000075/504/10/092/12, the Company had no additional tax liability.
On May 22, 2012, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Corporate Income Tax assessment letter
for fiscal year 2010. Based on the Indonesian Tax Authorities letter
No. 00033/406/10/092/12, the Company had an overpayment of Rp 35,914,770,914. The
overpayment of Corporate Income Tax has been compensated in June 2012 with the other
tax liabilities for fiscal year 2010 with totalling amount of Rp 2,740,502,844. And the
remaining of its overpayment amounted to Rp 33,174,268,070 were received on
June 27, 2012.
On May 22, 2012, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 23 assessment
letter for fiscal year 2010. Based on the Indonesian Tax Authorities letter
No. 00032/203/10/092/12, the Company had additional tax liability of Rp 2,340,007,727.
The tax liability had been compensated in June 2012 with the overpayment of 2010
corporate income tax.
On May 22, 2012, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 21 assessment
letter for fiscal year 2010. Based on the Indonesian Tax Authorities letter
No. 00021/201/10/092/12, the Company had additional tax liability of Rp 90,627,692. The
tax liability had been compensated in June 2012 with the overpayment of 2010 corporate
income tax.
97
On May 22, 2012, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 4(2) assessment
letter for fiscal year 2010. Based on the Indonesian Tax Authorities letter
No. 00016/240/10/092/12, the Company had additional tax liability of Rp 236,944,163.
The tax liability had been compensated in June 2012 with the overpayment of 2010
corporate income tax.
On May 22, 2012, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period December 2010. Based on the Indonesian Tax Authorities letter
No. 00013/277/10/092/12, the Company had additional tax liability of Rp 10,742,872. The
tax liability had been compensated in June 2012 with the overpayment of 2010 corporate
income tax.
On May 22, 2012, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period December 2010. Based on the Indonesian Tax Authorities letter
No. 00278/207/10/092/12, the Company had additional tax liability of Rp 55,069,976. The
tax liability had been compensated in June 2012 with the overpayment of 2010 corporate
income tax.
On November 24, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period November 2010. Based on the Indonesian Tax Authorities letter
No. 00058/407/10/092/11, the Company had an overpayment of Rp 10,359,423,414. The
overpayment of Value Added Tax has been compensated in December 2011 with the
November 2010 Value Added Tax liability amounted to Rp 48,621,160. And the
remaining of its overpayment amounted to Rp 10,310,802,254 were received on December
19, 2011.
On November 24, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period October 2010. Based on the Indonesian Tax Authorities letter
No. 00026/207/10/092/11, the Company had additional tax liability of Rp 48,621,160. The
tax liability had been compensated in December 2011 with the overpayment of November
2010 value added tax.
98
On August 24, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period September 2010. Based on the Indonesian Tax Authorities letter
No. 00051/407/10/092/11, the Company had an overpayment of Rp 8,767,928,486. The
overpayment of Value Added Tax has been compensated in September 2011 with the
other tax liabilities for fiscal year 2009 with totalling amount of Rp 8,712,581. And the
remaining of its overpayment amounted to Rp 8,759,215,905 were received on September
20, 2011.
On August 24, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period August 2010. Based on the Indonesian Tax Authorities letter
No. 00021/207/10/092/11, the Company had additional tax liability of Rp 26,108,522. The
tax liability was paid on September 9, 2011.
On August 24, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period July 2010. Based on the Indonesian Tax Authorities letter
No. 00020/507/10/092/11, the Company had no additional tax liability.
On August 24, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period June 2010. Based on the Indonesian Tax Authorities letter
No. 00019/507/10/092/11, the Company had no additional tax liability.
On August 24, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period May 2010. Based on the Indonesian Tax Authorities letter
No. 00018/507/10/092/11, the Company had no additional tax liability.
On May 18, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period April 2010. Based on the Indonesian Tax Authorities letter
No. 00035/407/10/092/11, the Company had an overpayment of Rp 13,552,130,826. The
overpayment of Value Added Tax has been compensated in May 2011 with the other tax
liabilities for fiscal year 2010 with totalling amount of Rp 99,079,275. And the remaining
of its overpayment amounted to Rp 13,453,051,551 were received on June 9, 2011.
99
On May 18, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period March 2010. Based on the Indonesian Tax Authorities letter
No. 00010/207/10/092/11, the Company had an additional tax liability of Rp 1,621,560.
The tax liabilities were paid on December 9, 2011.
On April 28, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 21 assessment
letter for fiscal year 2009. Based on the Indonesian Tax Authorities letter
No. 00018/501/09/511/11, the Company had no additional tax liability.
On April 28, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 23 assessment
letter for fiscal year 2009. Based on the Indonesian Tax Authorities letter
No. 00008/503/09/511/11, the Company had no additional tax liability.
On April 26, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 4 (2) assessment
letter for fiscal year 2009. Based on the Indonesian Tax Authorities letter
No. 00018/540/09/511/11, the Company had no additional tax liability.
On March 28, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Corporate Income Tax assessment letter
for fiscal year 2009. Based on the Indonesian Tax Authorities letter
No. 00006/406/09/092/10, the Company had an overpayment of Rp 18,732,214,019. The
overpayment of Corporate Income Tax has been compensated in May 2011 with the other
tax liabilities for fiscal year 2009 with totalling amount of Rp 4,445,402,669. And the
remaining of its overpayment amounted to Rp 14,286,811,350 were received on
May 31, 2011.
On March 28, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 21 assessment
letter for fiscal year 2009. Based on the Indonesian Tax Authorities letter
No. 00019/201/09/092/11, the Company had additional tax liability of Rp 175,063,304.
The tax liability had been compensated in May 2011 with the overpayment of 2009
corporate income tax.
100
On March 28, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 23 assessment
letter for fiscal year 2009. Based on the Indonesian Tax Authorities letter
No. 00011/203/09/092/11, the Company had additional tax liability of Rp 247,399,209.
The tax liability had been compensated in May 2011 with the overpayment of 2009
corporate income tax.
On March 28, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 26 assessment
letter for fiscal year 2009. Based on the Indonesian Tax Authorities letter
No. 00005/204/09/092/11, the Company had additional tax liability of Rp 1,470,055,683.
The tax liability had been compensated in May 2011 with the overpayment of 2009
corporate income tax.
On March 28, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 4 (2) assessment
letter for fiscal year 2009. Based on the Indonesian Tax Authorities letter
No. 00008/240/09/092/11, the Company had additional tax liability of Rp 989,042,079.
The tax liability had been compensated in May 2011 with the overpayment of 2009
corporate income tax.
On March 28, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal year 2009. Based on the Indonesian Tax Authorities letter
No. 00008/277/09/092/11, the Company had additional tax liability of Rp 29,348,684. The
tax liability had been compensated in May 2011 with the overpayment of 2009 corporate
income tax.
On March 28, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period December 2009. Based on the Indonesian Tax Authorities letter
No. 00112/207/09/092/11, the Company had additional tax liability of Rp 6,453,266. The
tax liability had been compensated in May 2011 with the overpayment of 2009 corporate
income tax.
On March 28, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period February 2009. Based on the Indonesian Tax Authorities letter
No. 00111/207/09/092/11, the Company had additional tax liability of Rp 12,784,716. The
tax liability had been compensated in May 2011 with the overpayment of 2009 corporate
income tax.
101
On March 28, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period January 2009. Based on the Indonesian Tax Authorities letter
No. 00110/207/09/092/11, the Company had additional tax liability of Rp 1,332,826. The
tax liability had been compensated in May 2011 with the overpayment of 2009 corporate
income tax.
On February 16, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period February 2010. Based on the Indonesian Tax Authorities letter
No. 00021/407/10/092/11, the Company had an overpayment of Rp 13,416,773,900. The
overpayment of Value Added Tax has been compensated in February 2011 with the other
tax liabilities for fiscal year 2010 with totalling amount of Rp 291,202,973. And the
remaining of its overpayment amounted to Rp 13,125,570,927 were received on February
25, 2011.
On February 16, 2011, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued a Value Added Tax assessment letter for
fiscal period January 2010. Based on the Indonesian Tax Authorities letter
No. 00003/207/10/092/11, the Company had additional tax liability of Rp 66,860,404. The
tax liability had been compensated in February 2011 with the overpayment of February
2010 Value Added Tax.
On September 30, 2010, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 26 assessment
letter for fiscal year 2006. Based on the Indonesian Tax Authorities letter
No. 00015/204/06/092/10, the Company had an overpayment of Income Tax Article 26 of
Rp 8,844,864,229. In the other that, the Company also received the interest of
Rp 4,245,534,829, the totaling of Rp 13,090,399,058 had been received on
November 24, 2010. Direktorat Jenderal Pajak has filed a Review Petition (PK) against
the verdict of refund. If Review Petition is accepted and approved, the Company has to
refund the above amount along with accrued interest. But until the date of report finished,
the result has not been determined yet.
102
On April 21, 2010, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 26 assessment
letter for fiscal year 2008. Based on the Indonesian Tax Authorities letter
No. 00014/204/08/092/10, the Company had additional tax liability of Rp 20,552,395,501.
The tax liability had been compensated in May 2010 with the overpayment of 2008
corporate income tax. And based on the decision from Indonesian Tax Court No.
KEP-00127/WPJ.19/KP.0203/2012, the Company had an overpayment of Income Tax
Article 26 of Rp 20,544,225,183. The overpayment of Income Tax Article 26 had been
received on August 31, 2012.
On April 21, 2010, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 23 assessment
letter for fiscal year 2008. Based on the Indonesian Tax Authorities letter
No. 00023/203/08/092/10, the Company had additional tax liability of Rp 2,019,141,457.
The tax liability had been compensated in May 2010 with the overpayment of 2008
corporate income tax. Further on July 7, 2010, the Company submits the objection letter to
the Indonesian Tax Authorities.Until the date of report finished, the result has not
determined yet.
On April 21, 2010, the Indonesian Tax Authorities (Direktorat Jenderal Pajak Kantor
Pelayanan Pajak Wajib Pajak Besar Dua) issued an Income Tax Article 21 assessment
letter for fiscal year 2008. Based on the Indonesian Tax Authorities letter
No. 00019/201/08/092/10, the Company had additional tax liability of Rp 901,815,396.
The tax liability had been compensated in May 2010 with the overpayment of 2008
corporate income tax. Further on July 7, 2010, the Company submits the objection letter to
the Indonesian Tax Authorities.Until the date of report finished, the result has not
determined yet.
g. Administration
It is noted that value added taxes for the fiscal period September 2011 up to September 2012
is under examined by the Tax Authorities, and until the date of report finished, the result has
not yet been determined.
103
Under the taxation laws of Indonesia, the Company submits tax returns on the basis of self
assessment. Under prevailing regulations the Director General of Tax (DGT) may assess or
amend taxes within a certain period. For the fiscal years of 2007 and before, this period is
within 10 (ten) years of the time the tax become due, but not later than 2013, while for the
fiscal years of 2008 and onwards, the period is within 5 (five) years of the time the tax
becomes due.
On September 23, 2008, the Government of Republic of Indonesia approved the new revised
Income Tax law effective January 1, 2009. The revision includes, among others, the changes
in the effective tax rate from 30% in 2008 to 28% in 2009, and to 25% in 2010. In addition to
the impact on the current income tax for 2009, the revision will also impact the deferred
income tax previously set up to reflect the reduction in effective tax rate.
The Companys management believes that the Company has complied with the prevailing tax
regulations.
The authorized capital of the Company amounts to Rp 16,000,000,000,000 and issued and fully
paid up capital amounts to Rp 4,174,224,000,000.
The allocation of 83,484,480,000 new shares (series C) par value Rp 2 each with to regard to the
debt to equity conversion. The new shares of 43,144,238,750 shares for the unsecured creditors
and new working capital lender and 40,340,241,250 shares for secured creditors.
104
To record the paid in capital in excess of par value from debt to equity conversion of
Rp 5,574,513,535,500 (equivalent to US$ 618,017,022).
The deed was approved by the Minister of Justice and Human Right in his decision letter
No. C-25038 HT.01.04.TH.2006 dated August 28, 2006 and registered in the Department of Industry
and Trade under No. 233/BH-1/IX/2006 dated September 1, 2006.
As of December 31, 2006, the authorized capital of the Company amounted to Rp 16,000,000,000,000
consisting of 247,145,100,800 shares with the following classifications.
Issued and fully paid up capital was Rp 2,283,248,477,500 consisting of Series A of 4,393,920,000
shares, and Series C of 43,144,238,750 shares.
In February 2008, the Company amended its Articles of Association in connection with the reverse
stock split with ratio 20 : 1. Based on the notarial deed of Sutjipto S.H., No. 91 dated
February 21, 2008 regarding the changes of the Articles of Association, the authorized capital of the
Company amounts to Rp 16,000,000,000,000 consisting of 12,357,255,040 shares with following
classifications:
The deed was approved by the Minister of Justice and Human Rights in his decision letter
No. AHU-10588.AH.01.02 Tahun 2008 dated March 3, 2008.
Issued and fully paid in capital amounted to Rp 4,174,224,000,000 (26%) consist of :
105
Stockholders
Numbers of
Shares
Shares Series A
Shares Series B
Shares Series C
219,696,000
1,890,975,522
2,157,211,950
Total
4,267,883,472
Percentage of
ownership
%
5.15
44.30
50.55
100.00
Total
Rp
US$
2,196,960,000,000
1,890,975,522,000
86,288,478,000
625,598,841
209,642,519
9,566,350
4,174,224,000,000
844,807,710
Based on the Extraordinary General Stockholders Meeting (RUPSLB) held on March 24, 2009 and
based on notarial deed No. 91 dated March 24, 2009 of Sutjipto, S.H., notary in Jakarta, the
stockholders approved the issuance of 118,845,397 new authorized shares series C (5% of issued and
paid-up capital) without preemptive rights in the framework of Grant Date I of stock options
programme to the Companys management and employees (Management Employee Stock Option
Programme / MESOP). The notarial deed was approved by the Minister of Law of the Republic of
Indonesia based on his decision letter No. AHU-0052619.AH.01.09.Tahun 2009 dated
August 14, 2009. Based on the Companys schedule that was reported to PT Bursa Efek Indonesia
dated March 17, 2009, this program will be implemented on the period below :
Period
I
II
III
IV
V
VI
VII
Implementation Period
5 (five) trading days starting from April 1, 2009
5 (five) trading days starting from October 1, 2009
5 (five) trading days starting from April 1, 2010
5 (five) trading days starting from October 1, 2010
5 (five) trading days starting from April 1, 2011
5 (five) trading days starting from October 3, 2011
5 (five) trading days starting from February 1, 2012
Based on the notarial deed of Aryanti Artisari, S.H., M.Kn. No. 107 dated February 23, 2012, the
stockholders approved the exercise proce for the first stock option programme of Rp 45 per share. On
March 5, 2012, the Company issued 118,845,397 new authorized shares series C with par value of
Rp 40 each or totaling Rp 4,753,815,880 (equivalent to US$ 524,125). The deed was approved by the
Minister of Law and Human Rights in his decision letter No. AHU-0018443.AH.01.09.Tahun 2012
dated February 29, 2012.
106
Numbers of
Shares
Total
Percentage of
Ownership
%
Rp
US$
Shares Series A:
PT Multikarsa Investama
Public (below 5% each)
Shares Series B:
131,394,719
88,301,281
219,696,000
5.26
3.54
8.80
1,313,947,195,000
883,012,805,000
2,196,960,000,000
374,155,125
251,443,716
625,598,841
Shares Series C:
Damiano Investments BV.,
Netherland
Kyoa Investment Limited
Others
Unsettled
Total
1,289,079,472
150,837,200
653,500,693
182,639,982
51.65
6.04
26.19
7.32
51,563,178,880
6,033,488,000
26,140,027,720
7,305,599,320
5,716,539
668,901
2,895,102
809,933
2,276,057,347
91.20
91,042,293,920
10,090,475
2,495,753,347
100.00
2,288,002,293,920
635,689,316
2011
Stockholders
Numbers of
Shares
Percentage of
ownership
%
Total
Rp
US$
Shares Series A:
PT Multikarsa Investama
Public (below 5% each)
Shares Series B:
131,394,719
88,301,281
219,696,000
5.53
3.71
9.24
107
1,313,947,195,000
883,012,805,000
2,196,960,000,000
374,155,125
251,443,716
625,598,841
Numbers of
Shares
Percentage of
ownership
%
Total
Rp
US$
Shares Series C:
Damiano Investments BV.,
Netherland
Kyoa Investment Limited
Others
Unsettled
Total
1,282,035,520
145,175,700
526,952,223
203,048,507
2,157,211,950
53.94
6.11
22.17
8.54
90.76
51,281,420,800
5,807,028,000
21,078,088,900
8,121,939,800
86,288,477,500
5,685,301
643,795
2,336,817
900,437
9,566,350
2,376,907,950
100.00
2,283,248,477,500
635,165,191
2010
Stockholders
Numbers of
Shares
Percentage of
ownership
%
Total
Rp
US$
Shares Series A:
PT Multikarsa Investama
Public (below 5% each)
Shares Series B:
131,394,719
88,301,281
219,696,000
5.53
3.71
9.24
1,313,947,195,000
883,012,805,000
2,196,960,000,000
374,155,125
251,443,716
625,598,841
Shares Series C:
Damiano Investments BV.,
Netherland
Kyoa Investment Limited
Others
Unsettled
Total
1,282,035,720
154,175,500
517,952,223
203,048,507
2,157,211,950
53.94
6.49
21.79
8.54
90.76
51,281,428,800
6,167,020,000
20,718,088,900
8,121,939,800
86,288,477,500
5,685,303
683,705
2,296,905
900,437
9,566,350
2,376,907,950
100.00
2,283,248,477,500
635,165,191
Unsettled shares series C represent the creditors that have not exchanged with the new shares (through
The Hongkong and Shanghai Banking Corporation Limited, Hong Kong the custodian). These
shareholders name is not yet registered in PT Datindo Entrycom (share administrator).
108
Implementation Period
Starting from December 15, 2012 up to December 22, 2012
Starting from June 18, 2013 up to June 24, 2013
Starting from December 18, 2013 up to December 24, 2013
Starting from June 2, 2014 up to June 24, 2014
Until now, it has not yet been implemented because the Company will execute them at the second
period (June 2013).
According to notarial deed of DR. H. Teddy Anwar, S.H., Spn. No. 111 dated August 16, 2002, the
part of PT Multikarsa Investamas shares of 2,454,081,290 (or after reverse stock 122,704,064 shares)
were sold to PT Bina Prima Perdana. However, based on the data issued by PT Datindo Entrycom, the
shares are still registered under the name of PT Multikarsa Investama.
As of December 31, 2012, 2011 and 2010, the shares owned by the public included those owned by
the directors of the Company (Mr. Seeniappa Jegatheesan and Mr. Peter Vinzenz Merkle), who held
29,716,099 shares, 2,388 shares, and 2,388 shares, respectively.
109
2011
US$
2010
US$
13,571,804
(7,263,223)
13,571,804
(7,263,223)
13,571,804
(7,263,223)
6,308,581
6,308,581
6,308,581
618,017,022
618,017,022
618,017,022
2011
US$
2010
US$
65,516
(46,612)
18,904
624,344,507
624,325,603
624,325,603
As per the Composition Proposal (Rencana Perdamaian) the Company is issuing 16,780,718,747
shares series C to unsecured creditors and 26,363,520,000 shares series C for Damiano Investments
BV., Netherland in regard to debt to equity conversion of Rp 5,660,802,013,000.
Further, based on the amendment of the Companys Articles of Association dated July 4, 2006 by
notarial deed No. 12 of Aulia Taufani, S.H., the Company has recognized the advances for future stock
subscription of Rp 5,660,802,013,000 as issued and paid-in capital amounting to Rp 86,288,477,500
and as additional paid-in capital amounting to Rp 5,574,513,535,500 (equivalent to US$ 618,017,022).
Through the the framework of Grant Date I of stock options programme in February 23, 2012, the
Company received Rp 5,348,042,865 for the issuance of 118,845,397 new authorized shares series C,
with a nominal value amounting to Rp 40 per share. The conversion rate of US$ 1 is Rp 9,070.
110
Equity in net
Profit of
Subsidiary
US$
112,005
(16,494,680)
Balance as of
January 1, 2010
US$
Non-controlling interests
(8% ownership in
PT Texmaco Jaya Tbk
Written-off due
to lost control
US$
(15,031,748)
16,382,675
1,462,932
Balance as of
December 31,
2011
US$
Balance as of
December 31, 2010
US$
(16,494,680)
Deduction in 2011 represents the deduction of non-controlling interests which financial statements
were no longer consolidated in 2011 due to the Subsidiary (PT Texmaco Jaya Tbk) is stated at
bankruptcy and insolvency so it caused that the Company have lost of control. Consequently, the
amount has been written-off from the consolidated statements of financial position and adjusted to
retained earning (accumulated deficit).
111
2011
US$
2,443,876,388
2,388,317,108
(32,118,811 )
(8,952,775 )
(0.01 )
(0.00)
2011
US$
2,431,991,848
2,388,317,108
(32,118,811 )
(8,952,775 )
(0.01 )
(0.00)
(32,118,811 )
(32,118,811 )
2011
US$
(8,952,775 )
(8,952,775 )
112
2011
2,443,876,388
2,376,907,950
1.0048
2,443,876,388
2,388,317,108
(11,884,540)
2,431,991,848
2,388,317,108
113
2011
US$
220,424,369
218,908,889
46,116,172
10,298,045
67,368
1,726,343
217,436,772
224,661,910
56,044,474
2,065,550
196,869
480,247
497,541,186
500,885,822
2011
US$
75,079,171
17,048,390
7,540,421
877,827
1,243,881
104,401,090
11,920,054
12,341,649
1,351,748
4,569,273
65,082
101,789,690
134,648,896
599,330,876
635,534,718
In 2012 and 2011, net sales of fleece (knitting) and bonded (coating) were US$ 11,243,240 and
US$ 3,679,249, respectively consists of sales to third parties. The product is manufactured by PT
Texmaco Jaya Tbk (under bankruptcy) based on the tolling basis.
In 2012 and 2011, no sales were earned from sales to related parties.
In 2012 and 2011, no sales to third parties exceeded 10% of the operating revenues.
2011
US$
601,480
599,395
255,731
277,313
1,200,875
533,044
In 2012 and 2011, other operating revenues of fleece, bonded and garment was US$ 83,216 and
US$ 108,278 represent the other operating revenues to third parties. The product is manufactured by
PT Texmaco Jaya Tbk (under bankruptcy) based on the tolling basis.
In 2012 and 2011, no other operating revenues were earned from related parties.
In 2012 and 2011, no sales to third parties exceeded 10% of the operating revenues.
114
2011
US$
28,114,454
384,877,731
10,605,240
436,498,322
412,992,185
(19,078,632)
447,103,562
(28,114,454)
393,913,553
418,989,108
Indirect materials
At beginning of year
Purchases
17,702,072
57,631,156
15,705,458
54,813,451
75,333,228
(20,014,977)
70,518,909
(17,702,072)
55,318,251
52,816,837
10,003,762
146,278,804
8,611,682
158,847,893
605,514,370
639,265,520
6,781,122
(6,073,039)
4,824,283
(6,781,122)
606,222,453
637,308,681
35,079,711
(34,787,985)
19,839,474
120,120
(35,079,711)
606,514,179
622,188,564
In 2012 and 2011, total raw material and indirect material used included the raw material used for
fleece (knitting) and bonded (coating) product after eliminated intercompany account were
US$ 3,145,012 and US$ 1,248,113, respectively.
115
Percentage
147,310,623
95,991,285
85,537,650
33.29%
21.69%
19.33%
In 2011, purchases from third parties exceeded 10% of total purchases are as follows :
2011
US$
PT Cipta Karya Persada
Kolmar Petrochemicals AG, Switzerland
PT Polychem Indonesia
160,219,417
115,454,640
113,266,628
Percentage
32.61%
23.50%
23.05%
2011
US$
69,574,411
57,256,598
4,680,362
3,003,021
2,480,839
2,059,569
1,321,414
1,085,007
4,817,583
86,134,534
53,550,215
6,406,043
2,796,071
2,198,761
2,167,874
1,501,741
905,289
3,187,365
146,278,804
158,847,893
In 2012, the processing fee (tolling) of US$ 3,003,021 represent the processing fee to PT Texmaco
Jaya Tbk (under bankruptcy) amounting to US$ 763,471, PT Multikarsa Investama amounting to
US$ 2,223,148, and other parties amounting to US$ 16,402. And in 2011, the processing fee (tolling)
of US$ 2,796,071 represent the processing fee to PT Texmaco Jaya Tbk (under bankruptcy)
amounting to US$ 219,918, PT Multikarsa Investama amounting to US$ 2,179,023 and other parties
amounting to US$ 21,251 (Note 46)
116
2011
US$
Export charges
Freight
Marketing expenses
Advertising and promotion
Others
5,391,323
5,522,075
2,794,758
20,796
323,242
4,917,356
5,321,648
2,965,769
18,712
501,914
14,052,194
13,725,399
8,601,313
2,737,627
1,815,789
1,104,199
877,955
460,601
300,344
246,932
170,182
116,815
17,843,646
95,849
65,664
36,620
497
(235,419 )
1,448,678
117
2011
US$
7,843,534
2,547,290
885,210
1,155,441
761,530
474,970
244,009
264,641
147,400
117,175
91,527
80,398
18,094
2,580,763
1,514,840
18,726,822
2011
US$
(2,936,962)
(4,586,244)
(885,278)
(861,026)
(12,287)
(15,140)
(3,834,527)
(13,969,873)
(472,845)
(5,462,410)
(10,433,384)
(440,611)
(18,277,245)
(16,336,405)
Finance Income :
Interest income from current accounts and
time deposits
31,754
(18,245,491)
21,064
(16,315,341)
383,000
179,000
157,044
81,878
2011
US$
341,339
172,179
78,985
30,499
238,028
879,907
782,045
118
(362,851)
Gross loss
(362,851)
Operating expenses :
Selling expenses
General and administrative expenses
(1,987)
(632,133)
(634,120)
(996,971)
262
(3,010,884)
(1,224,418)
(83,904)
2,902
(4,316,042)
(5,313,013)
(1,083,368)
(6,396,381)
119
35,518
22,991
332,509
49,485
39,670
480,173
Non-current assets :
Non-trade receivables from related party
Restricted cash in banks
Property, plant and equipment, net
Deferred tax assets
9,989,391
770,196
58,452,622
13,486,963
82,699,172
TOTAL ASSETS
83,179,345
Current liabilities :
Short-term loans
Notes payable
Trade payables
Liabilities for purchase of property, plant and equipment
Taxes payable
Accrued expenses
Current portion of obligation under finance lease
Other current liabilities
36,716,382
20,467,597
5,225,337
30,476
348,716
23,287,008
4,300,981
14,992,195
105,368,692
Non-current liabilities :
Employees benefit liabilities
1,652,239
1,652,239
TOTAL LIABILITIES
107,020,931
(23,841,586)
120
Transaction
Stockholder
Stockholder
Affiliated Company
Stockholder
Loans, shareholder
Loans, tolling arrangement
Loans, tolling arrangement
Shareholder
2012
US$
Trade receivables
27,789,291
121
2011
US$
29,634,147
Percentage to total
Assets/ Liabilities
/Expenses
2012
2011
%
%
6.89
6.55
2012
US$
2011
US$
Percentage to total
Assets/ Liabilities
/Expenses
2012
2011
%
%
32,474,040
34,996,344
8.05
7.73
Bank loans
78,752,462
70,339,624
6.56
5.77
664,778,224
664,373,826
55.35
54.51
0.00
Secured debts
Trade payables
Accrued expenses
7,150
404,920
106,835
0.03
0.00
17,340,000
23,000,000
1.44
1.89
Manufacturing expense
3,187,967
3,075,422
0.50
0.38
Compensation representing salary was given to the Companys Commissioners and Directors for
the years ended December 31, 2012 and 2011 amounting to Rp 6,940,860,309 and
Rp 5,182,030,423, respectively. No contribution to retirement benefits, entitlement benefits and
any other special benefits were given during the year 2012 and 2011.
122
123
124
48. COMMITMENT
(a) Capital Commitments
The capital expenditure committed but not yet inccurred as of December 31, 2012 is
US$ 14,000,000.
Amount outstanding above is relating to commitment made by the Company in development and
increase in the Companys filament yarn and fiber capacity. The commitment has to be exercised
at the year 2013.
(b) Operating Lease Commitments
The Company leases various warehouse under non-cancellable operating lease agreements. The
lease terms are between 1 (one) year up to thirty (30) years, and the majority of lease agreements
are renewable at the end of the lease period.
The following are counterparties of the Companys lease commitments :
Counterparties
Leased items
Period of
agreement
Warehouse at
Karawang
January 1, 2013
June 30, 2013
Rp 43,200,000
each month
Warehouse at
Karawang
Rp 9,000,000
each month
Warehouse at
Karawang
December 1, 2012
May 31, 2013
Rp 5,000,000
each month
Land at Karawang
January 1, 2010
January 1, 2040
Rp 100,000,000
each month
Warehouse at
Semarang
August 1, 2011
July 31, 2015
Rp 99,000,000
each month
PT Texmaco Taman
Synthetics
Amount (Rp)
The future aggregate minimum lease payment under non-cancellable operating leases are as
follows :
2012
US$
No later than 1 year
Later than 1 year and no later than 5 years
Later than 5 years
Total
125
2011
US$
278,201
690,900
2,730,093
331,172
867,681
3,043,670
3,699,194
4,242,523
49. CONTINGENCIES
The Directorat Jenderal Pajak has filed a Review Petition against the verdict of the tax court for
the refund of Rp 13,090,399,058 on November 24, 2010. If the Review Petition filed by the
Directorat Jenderal Pajak is won, then the entire refund amount became payable along with the
accrued interest till the date of refund. Until the date of report finished, the result has not been
determined yet.
Effective August 19, 2011, one of Subsidiary (PT Texmaco Jaya Tbk) becomes subject to the
control of Court, causing the Company to lose its control. The Count has already set a Supervisory
Judge and curator team to maintain and monitor the operation of bankruptcy assets and cash flows
of the Subsidiary. Net liabilities at the date of lost its control is Rp 656,593,951,279. PT Asia
Pacific Fibers Tbk as parent Company do not have obligation regarding the creditors payables of
Subsidiary.
Based on the correspondence letter from PT Bina Prima Perdana dated August 8, 2011, PT Bina
Prima Perdana claims from the Company being the guarantor of the Subsidiarys loans from Bank
Dharmala and Bank Arya. However, the management of the Company mentioned that the above
guarantees (promissory note) were not registered by PT Bina Prima Perdana during the debt
verification by the curator of PT Asia Pacific Fibers Tbk (formerly PT Polysindo Eka Perkasa
Tbk) during its bankruptcy process in 2005, and consequently, the above claims of PT Bina Prima
Perdana were not valid. In addition, the restructuring process of unsecured debt in PT Asia Pacific
Fibers Tbk has been completed.
The Companys land certificates with HGB No. 13 and HGB No. 14 located in Kiara Payung,
Kec. Klari, Karawang have been pledged to PT Bank Negara Indonesia/ PT Bina Prima Perdana in
respect of secured debts of PT Texmaco Jaya Tbk (under bankruptcy). PT Bina Prima Perdana has
claimed with its letter dated February 21, 2013 amounted to Rp 19 billion from the Company for
the release of the pledge. This is under discusson with PT Bina Prima Perdana (Note 16).
126
2012
Chemical
Industry and
Synthetic fibre
US$
Weaving
and
Knitting
US$
Others
US$
Elimination
US$
Total
US$
498,742,061
SEGMENT SALES :
External sales
Local
Export
Asia
America
Europe
Australia
Africa
Total Export
Inter segment sales
Total segment sales
Segment result
488,293,432 10,448,629
35,709,104
28,909,074
16,744,050
11,259,124
8,290,511
691,483
186,344
36,400,587
28,909,074
16,930,394
11,259,124
8,290,511
100,911,863
877,827
101,789,690
216,141,901
(216,141,901)
805,347,196 11,326,456
(216,141,901) 600,531,751
(8,447,903) 2,465,475
(5,982,428)
(17,532,078)
Unallocated expenses
(16,806,846)
(25,254,749) 1,740,243
Finance costs
(18,213,903)
(43,468,652) 1,708,655
Tax income
(725,232)
(31,588)
(23,514,506)
(18,245,491)
(41,759,997)
0
9,641,186
(32,118,811 )
Discountinued operation :
Loss from disposal of Subsidiary
(32,118,811)
127
2012
Chemical
Industry and
Synthetic fibre
US$
Weaving
and
Knitting
US$
Others
US$
Elimination
US$
Total
US$
(32,118,811)
(32,118,811)
STATEMENT OF FINANCIAL
POSITION :
Segment assets
Segment liabilities
(399,690,163) (3,541,552)
1,200,226,996
789,213
(20,576)
(403,252,291)
74,931
1,201,091,140
OTHER INFORMATION :
Capital expenditures
(14,082,392)
(145,391)
(14,227,783)
Depreciation
(69,656,131)
(14,129)
(69,670,260)
2011
Chemical
Industry and
Synthetic fibre
US$
Weaving
and
Knitting
US$
Others
US$
Elimination
US$
Total
US$
SEGMENT SALES :
External sales
Local
Export
Asia
America
Europe
Australia
Africa
Total Export
Inter segment sales
Total segment sales
499,048,169
2,370,697
501,418,866
53,301,178
39,201,161
24,353,250
8,745,493
7,630,984
1,126,920
289,910
54,428,098
39,201,161
24,643,160
8,745,493
7,630,984
133,232,066
1,416,830
134,648,896
228,753,393
24,016
(228,777,409)
861,033,628
3,811,543
(228,777,409) 636,067,762
128
2011
Others
US$
Elimination
US$
Total
US$
11,864,104 2,015,094
13,879,198
Unallocated expenses
(33,504,268) (237,916)
(33,742,184)
(21,640,164) 1,777,178
(19,862,986)
Finance costs
(16,303,683)
(16,315,341)
(37,943,847) 1,765,520
(36,178,327)
RESULT :
Segment result
(11,658)
Tax income
9,892,352
(26,285,975 )
17,445,205)
(8,840,770)
(8,840,770)
STATEMENT OF FINANCIAL
POSITION :
Segment assets
(450,827,948) (1,786,788)
Segment liabilities
1,217,589,825 1,233,623
(20,576)
(452,635,312)
74,931
1,218,898,379
OTHER INFORMATION :
Capital expenditures
Depreciation
(9,003,874)
(2,107)
(9,005,981)
(86,220,674)
(5,387)
(86,226,061)
The following table shows the carrying amount of segment non-current assets and additions to
property, plant and equipment by geographical area in which the assets are located :
Carrying amount non-current assets
December 31,
January 1,
December 31,
2012
2011
2011
US$
US$
US$
Indonesia
129,407,396
184,837,123
262,057,203
129
14,227,783
9,005,981
ASSETS
AND
LIABILITIES
DENOMINATED
IN
FOREIGN
The Company has assets and liabilities denominated in foreign currencies as follows:
2 0 1 2
Foreign
Currency
2 0 1 1
Equivalent in
US$
Foreign
Currency
Equivalent in
US$
Assets :
IDR
EUR
SGD
NOK
15,953,468,926
6,277
8,125
1,108
1,649,790
8,315
6,644
170
14,214,328,653
2,348
8,261
1,108
1,567,526
3,039
6,354
161
Trade receivables :
Third parties
Related parties
IDR
IDR
2,019,778,766
268,722,447,174
208,871
27,789,291
102,616,673
268,722,447,174
11,316
29,634,147
Other receivables
IDR
20,275,727,220
2,096,766
18,212,026,112
2,008,384
IDR
10,248,315,332
1,059,805
5,237,815,332
577,615
IDR
339,799,791,085
35,139,585
341,518,009,452
37,661,889
IDR
3,959,414,637
409,454
3,959,414,637
436,636
Total assets
68,368,691
71,907,067
Liabilities
Trade payables :
Third parties
Related parties
IDR
YEN
SGD
GBP
EUR
SEK
IDR
30,425,613,348
4,780,473
27,904
284,392
5,128,579
69,142,248
3,146,392
55,368
22,817
376,738
789,041
7,150
35,088,919,356
3,779,861
32,654
16,660
136,455
3,869,532
48,770
25,113
25,665
176,648
Accrued expenses
IDR
413,168,541,805
42,726,840
411,036,714,332
45,328,266
Secured Debts
IDR
EUR
YEN
CHF
1,344,552,714,414
15,688,978
3,001,711,400
45,902
139,043,714
20,783,207
34,756,139
50,302
1,344,552,714,414
15,688,978
3,001,711,400
45,902
148,274,450
20,310,187
38,664,463
48,779
IDR
18,295,341,577
1,891,973
9,296,681,940
1,025,219
IDR
1,162,192,835
120,186
957,211,258
105,559
IDR
99,356,704,849
10,274,737
77,637,935,506
8,561,749
Total liabilities
Net liabilities
130
254,044,604
266,464,400
(185,675,913 )
(194,557,333 )
AND
LIABILITIES
DENOMINATED
IN
FOREIGN
Monatary assets and liabilities mentioned above are translated using Bank Indonesia closing rate as at
December 31, 2012 and 2011.
Short-term financial assets and liabilities with remaining maturities of one (1) year or less (cash
and cash equivalents, trade receivables, other receivables, other current financial assets, trade
payables, accrued expenses, and other short-term financial liabilities). The net carrying value of
these financial assets and liabilities is considered a reasonable approximation of their fair value
due to their short-term maturities.
Long-term fixed-rate financial instruments with remaining maturities over one (1) years. The fair
value of these financial assets and liabilities is determined by discounting future cash flows using
applicable interest rates from observable current market transactions for instruments with similar
terms, credit risk and remaining maturities.
Fair Value Hierarchy :
Financial assets and financial liabilities measured at fair value in the consolidated statements of
financial position are categorized in accordance with the fair value hierarchy. This hierarchy
groups financial assets and financial liabilities into three (3) levels based on the significance of
inputs used in measuring the fair value of the financial assets and financial liabilities.
The table below analyses financial instruments carried at fair value, by the valuation method.
These valuation techniques maximize the use of observable market data where it is available and
rely as little as possible on entitys specific estimates. The different levels have been defined as
follows :
a. Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities.
b. Level 2 : Inputs other than quoted prices included within level 1 that are observable for the
asset or liability, either directly or indirectly.
c. Level 3 : Inputs for the asset or liability that is not based on observable market data.
Based on the above different level from fair value hierarchy, the following table represents the
Companys assets and liabilities that are measured at fair value as of December 31, 2012 and
2011:
131
Level 1
US$
Financial assets :
Current Assets :
Cash and cash equivalents
Trade receivables, net
Other receivables, net
Other current financial assets
Non-current assets :
Non-trade receivables from
related parties
Other non-current financial
Assets
Total financial assets
Financial liabilities :
Current Liabilities:
Trade payables
Accrued expenses
Bank Loans
Secured Debts
Current portion of longterm liabilities:
Working capital loans
Credit financing payables
Other short-term
financial liabilities
Non-current:
Unsecured Debts
and Notes Payable
Credit financing payables
Total financial liabilities
9,793,989
85,777,319
3,300,907
7,720,808
9,793,989
85,777,319
3,300,907
7,720,808
32,474,040
32,474,040
1,113,711
1,113,711
106,593,023
33,587,751
140,180,774
22,949,484
43,319,170
78,563,511
1,000,263,703
22,949,484
43,319,170
78,563,511
1,000,263,703
17,034,668
64,651
17,034,668
64,651
4,150,965
4,150,965
20,541,883
55,535
20,541,883
55,535
186,679,867
1,000,263,703
December 31, 2 0 1 1
Level 2
Level 3
US$
US$
Level 1
US$
Financial assets :
Current Assets :
Cash and cash equivalents
Trade receivables, net
Other receivables, net
Other current financial assets
Non-current assets :
Non-trade receivables from
related parties
Other non-current financial
Assets
Total
US$
3,438,164
79,729,562
2,529,473
6,067,345
1,186,943,570
Total
US$
3,438,164
79,729,562
2,529,473
6,067,345
34,996,344
34,996,344
1,140,893
1,140,893
91,764,544
36,137,237
127,901,781
132
Level 1
US$
Financial liabilities :
Current Liabilities:
Trade payables
Accrued expenses
Bank Loans
Secured Debts
Current portion of longterm liabilities:
Working capital loans
Credit financing payables
Other short-term
financial liabilities
Non-current:
Unsecured Debts
and Notes Payable
Working capital loans
Credit financing payables
Total financial liabilities
Total
US$
23,798,883
45,606,299
70,110,366
1,012,928,220
8,191,329
57,035
8,191,329
57,035
4,251,161
4,251,161
20,019,949
14,389,581
48,524
20,019,949
14,389,581
48,524
186,473,127
1,012,928,220
23,798,883
45,606,299
70,110,366
1,012,928,220
1,199,401,347
The fair value of financial instruments that are not traded in an active market is determined by
using the valuation technique. The discount rate used to determine the present value of the net cash
inflow/outflow was based on a market interest rate and the risk premium. These valuation
techniques maximize the use of observable market data where it is available and rely as little as
possible on entitys specific estimates. If all significant inputs required to fair value an instrument
are observable, the instrument is included in Level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is
included in Level 3.
The following table presents the changes in Level 3 instruments are as follows :
Non-trade
receivables
from related
parties
US$
Other
non-current
financial
assets
US$
Beginning balance
Gain (loss) on foreign
exchange, net
Settlement of tolling expenses
34,996,344
Ending balance
32,474,040
(121,304 )
(2,401,000 )
133
1,140,893
(27,182 )
1,113,711
Secured
debts
US$
(1,012,928,220 )
12,664,517
(1,000,263,703 )
Total
US$
(974,125,438)
12,516,031
(2,401,000)
(964,010,407)
134
(20,563)
(9,140)
28
170
798
252,714
2,029,504
Net
2,253,511
Management conducted a survey among banks to get an estimate on exchange rate of foreign
currencies until the reporting date. The estimate changes of foreign exchange rate are
increased by 0.10% for European Euro and 1.16% for Krona Swedish. And the estimate
changes of foreign exchange rate are decreased by 0.39% for Krone Norwegian, 1.05% for
Singapore Dollar, 1.58% for Swiss Franc, 0.20% for Indonesian Rupiah and 5.83% for
Japanese Yen if compared with the exchange rate on December 31, 2012.
The Companys policy is to manage the financial assets denominated in foreign currencies are
available to settle the financial liabilities denominated in foreign currencies. At December 31,
2012, the financial liabilities denominated in foreign currencies are in excess of financial
assets denominated in foreign currencies at amount of US$ 185.675.913 due to unrestructured
long-term secured debts are shown in their full value. If the above mentioned secured debts
denominated in Indonesian Rupiah and currencies other than US Dollar are not considered,
there are no excess of financial liabilities over the assets. This is a manageable level as the
loans are repayable over a period of time.
135
b. Credit Risk
Credit risk is the risk that counterparty fails to discharge an obligation to the Company. The
Company is exposed to this risk for various financial instruments, for example by granting
receivables and advances to customers and related parties.
The Company continuously monitors defaults of customers and other counterparties, identified
either individually or by group, and incorporate this information into its credit risk controls. The
Companys policy is to deal only with credit worthy counterparties. In addition, for a certain
proportion of sales, advance payments are received to mitigate risks.
The Companys maximum exposure to credit risk is limited to the carrying amount of the financial
assets as shown on the face of the consolidated statements of financial position, as summarized
below.
2012
US$
2011
US$
9,773,413
85,777,319
3,300,907
7,720,808
32,474,040
1,113,711
3,417,588
79,729,562
2,529,473
6,067,345
34,996,344
1,140,893
140,160,198
127,881,205
(a) Cash and cash equivalents and other current financial assets
The credit risk for cash and cash equivalents and short-term investments are considered
negligible, since the counterparties are reputable banks with high quality external credit
ratings. The Company actively monitoring the cash and bank balances on weekly basis
136
c. Liquidity Risk
Liquidity risk is the risk arising from the Company not being able to meet its obligation. The
Company manages its liquidity needs by carefully monitoring the payment schedule for short-term
and long-term financial liabilities as well as forecast cash inflows and outflows due in day to day
business.
137
22,949,484
43,319,170
78,752,462
1,000,263,703
35,988
4,150,965
1,149,471,772
138
6 to 12
months
US$
17,340,000
28,663
17,368,663
Non Current
1 to 5
More than
Years
5 years
US$
US$
8,867,735
55,535
8,923,270
13,301,603
13,301,603
23,798,883
45,606,299
70,339,624
1,012,928,220
29,379
4,251,161
1,156,953,566
Non Current
1 to 5
More than
Years
5 years
US$
US$
6 to 12
months
US$
8,500,000
14,500,000
27,656
4,937,627
48,524
17,007,384
8,527,656
19,486,151
17,007,384
Total borrowings
Less :
Cash and cash equivalents
Other current financial assets
Other non-current financial assets
2012
US$
2011
US$
1,118,645,689
1,128,318,414
(9,773,413)
(827,301)
(1,113,711)
1,106,931,264
139
(3,417,588 )
(330,834 )
(1,140,893 )
1,123,429,099
2012
US$
2011
US$
1,106,931,264
1,123,429,099
(797,838,849 )
(766,263,067 )
(0.72 )
(0.68 )
Gearing ratio
The total borrowings include the unrestructured secured debts of US$ 1,000,263,703. The Company
endevours to restructure this debt to a sustainable level and for which the negotiations are underway
with its secured creditors including PPA/BPP. If the proposal of the Company which includes debt to
equity swap and waiver of the past interest amounts is accepted by its creditors, it will considerably
improve the capital gearing structure of the Company.
304,392,472
184,768,776
(2,019,193,395)
(2,028,146,170)
140
As Restated
US$
304,460,819
184,837,123
(2,019,125,048)
(2,028,077,823)
Before
Reclassification
US$
Reclassification
US$
After
Reclassification
US$
330,834
5,736,511
1,140,893
4,251,161
(330,834)
(5,736,511)
6,067,345
(1,140,893)
1,140,893
(4,251,161)
4,251,161
6,067,345
1,140,893
4,251,161
21,064
(16,336,405)
(21,064)
16,336,405
(16,315,341)
(16,315,341)
111,222
2,944,403
1,905,194
(111,222)
(2,944,403)
3,055,625
(1,905,194)
1,905,194
3,055,625
1,905,194
30,476
17,313,465
4,300,981
(30,476)
(17,313,465)
17,343,941
(4,300,981)
4,300,981
17,343,941
4,300,981
141
The Company and its Subsidiaries managements are currently evaluating the possible impact on these
new accounting standards and interpretations on its consolidated financial statements.
142
Schedule -1
SUPPLEMENTARY FINANCIAL INFORMATION
PT ASIA PACIFIC FIBERS Tbk
(PARENT COMPANY ONLY)
STATEMENTS OF FINANCIAL POSITION
December 31, 2012, December 31, 2011 and January 1, 2011
December 31,
2012
US$
December 31,
2011
(As Restated)
US$
January 1,
2011
(As Restated)
US$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade receivables, net after allowance for
impairment of US$ 15,657,945 in 2012
and 2011 and US$ Nil in 2010
Third parties
Related parties
Other receivables, net after allowance for
Impairment of US$ 36,721,575 in 2012
and 2011 and US$ 36,752,074 in 2010
Third parties
Other current financial assets
Inventories
Purchase advances
Prepaid taxes
Prepaid expenses
Total Current Assets
9,773,413
3,417,588
9,715,956
57,988,028
27,789,291
50,095,415
29,634,147
46,948,271
45,679,979
3,300,907
7,720,808
79,954,633
34,605,192
14,786,048
1,101,627
2,529,473
6,067,345
87,677,359
37,846,870
13,202,393
1,169,786
457,727
3,055,625
50,974,455
32,329,293
13,891,922
850,592
237,019,947
231,640,376
203,903,820
NONCURRENT ASSETS
Non-trade receivables from related parties,
net after allowance for impairment of
US$ 111,997,893 in 2012 and 2011
and US$ 5,587,181 in 2010
Other non-current financial assets
Property, plant and equipment, net
after accumulated depreciation of
US$ 1,658,522,816 in 2012,
US$ 1,588,852,556 in 2011, and
US$ 1,502,626,495 in 2010
Intangible assets
Investment in subsidiaries
Deferred tax assets
35,139,585
1,113,711
37,661,889
1,140,893
144,781,701
1,144,632
129,394,646
12,750
31,170
3,216,621
184,837,123
31,170
262,057,203
16,175,401
168,908,483
223,671,075
424,158,937
TOTAL ASSETS
405,928,430
455,311,451
628,062,757
Schedule -2
SUPPLEMENTARY FINANCIAL INFORMATION
PT ASIA PACIFIC FIBERS Tbk
(PARENT COMPANY ONLY)
STATEMENTS OF FINANCIAL POSITION (Continued)
December 31, 2012, December 31, 2011 and January 1, 2011
December 31,
2012
US$
December 31,
2011
(As Restated)
US$
January 1,
2011
(As Restated)
US$
22,942,334
7,150
43,319,170
1,751,095
78,752,462
1,000,263,703
23,798,883
45,606,299
1,937,308
70,339,624
1,012,928,220
19,845,244
135,538
54,650,270
2,039,546
48,046,644
1,012,905,635
17,340,000
64,651
4,076,034
8,500,000
57,035
4,176,230
4,333,000
52,884
4,813,702
1,168,516,599
1,167,343,599
1,146,822,463
NONCURRENT LIABILITIES
Borrowing from Other Financial
Institutions :
Unsecured Debts and Notes Payable
Working capital loans
Credit financing payables
Long-term employee benefit liabilities
Deferred tax liabilities
22,169,338
55,535
10,274,737
21,945,011
14,500,000
48,524
8,561,749
6,424,565
21,077,129
36,277,862
77,437
6,504,083
17,400,285
32,499,610
51,479,849
81,336,796
Schedule -3
SUPPLEMENTARY FINANCIAL INFORMATION
PT ASIA PACIFIC FIBERS Tbk
(PARENT COMPANY ONLY)
STATEMENTS OF FINANCIAL POSITION (Continued)
December 31, 2012, December 31, 2011 and January 1, 2011
December 31,
2012
US$
December 31,
2011
(As Restated)
US$
January 1,
2011
(As Restated)
US$
635,689,316
624,344,507
635,165,191
624,325,603
635,165,191
624,325,603
2,345,301
(2,057,466,903)
2,345,301
(2,025,348,092)
2,345,301
(1,861,932,597)
(795,087,779)
(763,511,997)
(600,096,502)
405,928,430
455,311,451
628,062,757
Schedule -4
SUPPLEMENTARY FINANCIAL INFORMATION
PT ASIA PACIFIC FIBERS Tbk
(PARENT COMPANY ONLY)
STATEMENTS OF COMPREHENSIVE INCOME
For the years ended December 31, 2012 and 2011
2012
2011
(As Restated)
US$
US$
Continuing operation :
REVENUES
Net sales
Other operating revenues
Total revenues
COST OF GOODS SOLD
GROSS PROFIT (LOSS)
599,330,876
1,200,875
600,531,751
635,534,718
533,044
636,067,762
(606,514,179 )
(622,188,564 )
(5,982,428 )
13,879,198
(14,052,194 )
(17,843,646 )
1,667,691
11,816,164
879,907
(13,725,399 )
(18,726,822 )
86,182
(2,158,190 )
(121,286,612 )
(17,532,078 )
(155,810,841 )
(23,514,506 )
(141,931,643 )
Finance costs
(18,245,491 )
(16,315,341 )
(41,759,997 )
(158,246,984 )
9,641,186
10,975,720
9,641,186
10,975,720
(32,118,811 )
(147,271,264 )
Selling expenses
General and administrative expenses
Insurance claim settlement, net
Gain (loss) on foreign exchange transactions, net
Miscellaneous income (expense), net
(16,144,231 )
(32,118,811 )
(163,415,495 )
(32,118,811 )
(163,415,495 )
(0.01 )
(0.01 )
(0.07 )
(0.07 )
Schedule -5
SUPPLEMENTARY FINANCIAL INFORMATION
PT ASIA PACIFIC FIBERS Tbk
(PARENT COMPANY ONLY)
STATEMENTS OF CHANGES IN EQUITY
For the years ended December 31, 2012 and 2011
Retained earnings
(accumulated deficit)
Additional
Share Capital paid-in capital Appropriated Unappropriated
US$
635,165,191
US$
624,325,603
US$
2,345,301
635,165,191
624,325,603
524,125
18,904
635,689,316
624,344,507
2,345,301
2,345,301
US$
Total equity
(deficiency)
US$
(1,861,932,597)
(600,096,502)
(163,415,495 )
(163,415,495 )
(2,025,348,092)
(32,118,811 )
(2,057,466,903)
(763,511,997)
543,029
(32,118,811 )
(795,087,779)
Schedule -6
SUPPLEMENTARY FINANCIAL INFORMATION
PT ASIA PACIFIC FIBERS Tbk
(PARENT COMPANY ONLY)
STATEMENTS OF CASH FLOWS (Continued)
For the years ended December 31, 2012 and 2011
2012
US$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipt from customers
Payment to suppliers
Payment of salaries
Other operating cash payments, net
2011
US$
634,181,470
(107,539,191)
(16,579,363)
(61,251,557)
646,901,210
(121,707,320)
(15,571,185)
(38,847,286)
448,811,359
31,754
(17,979,160)
1,667,691
(4,911,388)
5,940,924
470,775,419
21,064
(15,781,720)
86,182
(11,407,441)
7,119,722
433,561,180
450,813,226
(13,295,299)
(521,237)
(2,224,168)
(9,005,981)
(233,946)
(2,825,916)
(16,040,704)
(12,065,843)
591,434
(404,619,673)
12,940,000
(18,600,000)
83,316
(68,689)
(428,449,261)
8,500,000
(26,110,862)
35,069
(59,831)
(409,673,612)
(446,084,885)
7,846,864
(7,337,502 )
(1,491,039)
1,039,134
3,417,588
9,715,956
9,773,413
3,417,588