PT CITATAH Tbk
Balance Sheets
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
Notes
2010
2009
Assets
Current assets
Cash and cash equivalents
Trade accounts receivable net of allowance for doubtful accounts
Other receivables
Inventories
Prepaid taxes
Other current assets
3d,4
8,099,622,416
7,694,084,898
3e,5
6
3f,7
8
22,002,333,307
2,241,868,663
68,011,134,237
8,101,701,212
147,377,191
34,910,936,053
1,216,186,340
52,678,282,337
6,777,701,837
405,275,713
108,604,037,026
103,682,467,178
3g,10
1,911,654,472
1,936,362,210
3g,3h
11
62,878,087,725
66,850,389,452
3i,12
13
29d
14
12,862,280,730
3,848,885,694
646,724,430
1,007,585,245
13,407,114,726
1,707,938,170
0
662,398,745
83,155,218,296
84,564,203,303
191,759,255,322
188,246,670,481
Total current assets
Non-current assets
Unused fixed assets –
net of accumulated depreciation
Fixed assets, net of accumulated
depreciation of 167,658,760,646
(2009 : 158,109,997,869 )
Deferred charges,
net of accumulated amortization
Restricted funds
Deferred tax assets
Other non current assets
Total non-current assets
Total assets
The accompanying notes form an integral part of the financial statements
1
PT CITATAH Tbk
Balance Sheets (continued)
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
Notes
2010
2009
Liabilities and Shareholders’ Equity
Current liabilities
Bank loans
Trade accounts payable
Other payables
Advances received
Tax payables
Accrued expenses
15
16
4,256,061,792
9,151,179,538
531,210,513
11,107,603,217
4,943,645,307
3,787,710,212
4,920,250,557
8,049,069,594
630,100,045
8,828,737,353
4,193,659,722
5,785,101,003
Current portion of long term bank loans
Current portion of lease obligations
Current portion of convertible loans
Total current liabilities
21
22
23
55,306,523,019
2,971,993,951
11,808,443,303
103,864,370,852
59,954,356,230
1,571,348,194
12,976,466,710
106,909,089,408
3j,9
20
22
29d
3n
1,414,854,545
18,989,635,056
116,534,004
0
0
20,521,023,605
1,434,854,545
16,370,141,611
2,050,948,143
452,697,017
13,614,945
20,322,256,261
124,385,394,457
127,231,345,669
459,083,982,100
72,305,127,906
(464,015,249,141)
459,083,982,100
72,305,127,906
(470,373,785,194)
67,373,860,865
61,015,324,812
191,759,255,322
188,246,670,481
17
18
19
Long-term liabilities
Due to related parties
Provision for employee entitlements
Lease obligations
Deferred tax liabilities
Effect of trouble in debt restructuring
Total long-term liabilities
Total liabilities
Shareholders’ equity
Authorized – Rp 1,260,000,000,000 consist
of 840,000,000 shares of Series A with
nominal value of Rp 500 per share and
8,400,000,000 shares of Series B with
nominal value of Rp 100 per share
Issued and fully paid –
840,000,000 shares of Series A
and 390,839,821shares of Series B
Additional paid in capital-net
Accumulated losses
Total shareholders’ equity
24
25
Total liabilities and shareholders’ equity
The accompanying notes form an integral part of the financial statements
2
PT CITATAH Tbk
Statements of Profit and Loss
For the period ended 30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
Notes
Net sales
Cost of goods sold
3c,26
27
Gross profit
Operating expenses:
Marketing and selling
General and administrative
Total operating expenses
21,23
Profit before corporate income tax
Corporate income tax benefits
Current year
Deferred tax
2009
101,273,973,855
77,054,809,582
24,219,164,273
115,765,219,667
89,664,930,305
26,100,289,362
12,939,645,963
9,057,834,209
21,997,480,172
10,415,139,448
8,146,026,455
18,561,165,903
28
Operating profit
Other income/(expenses):
Interest income
Interest expense
Foreign exchange gain-net
Others
Total other income/(expenses)-net
2010
2,221,684,101
7,539,123,459
83,413,002
(627,948,665)
3,625,751,076
(252,978,384)
2,828,237,029
166,689,803
(854,426,563)
8,356,540,616
(55,478,726)
7,613,325,130
5,049,921,130
15,152,448,589
0
30,474,810
30,474,810
0
270,464,183
270,464,183
5,080,395,940
15,422,912,772
3l,29a
Net profit
Operating profit per share
3k
1.81
6.1
Net profit per share
3k
4.13
12.5
The accompanying notes form an integral part of the financial statements
3
PT CITATAH Tbk
Statement of Changes in Equity
For the period ended 30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
Share capital
Balance as of 1 January 2009
Additional Paid in
Capital-net
Accumulated loss
Total shareholders’
equity
459,083,982,100
72,305,127,906
(485,796,697,966)
45,592,412,040
0
0
15,422,912,772
15,422,912,772
Balance as of 30 Sep 2009
459,083,982,100
72,305,127,906
(470,373,785,194)
61,015,324,812
Balance as of 1 January 2010
459,083,982,100
72,305,127,906
(469,095,645,081)
62,293,464,925
0
0
5,080,395,940
5,080,395,940
459,083,982,100
72,305,127,906
Net profit for 2009
Net profit for 2010
Balance as of 30 Sep 2010
(464,015,249,141)
67,373,860,865
The accompanying notes form an integral part of the financial statements
4
PT CITATAH Tbk
Statements of Cash Flows
For the period ended 30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
2010
2009
120,059,813,024
(104,791,410,485)
(6,971,256,391)
128,577,852,421
(111,672,934,590)
(7,021,314,618)
Cash flows from operating activities
Cash received from customers
Cash paid to suppliers and employees
Cash paid for income tax
8,297,146,148
Interest paid
Interest received
(627,948,665)
83,413,002
Total net cash provided by operating activities
9,883,603,213
(854,426,563)
166,689,803
7,752,610,485
9,195,866,453
Purchases of fixed assets
Proceeds from sales of fixed assets
(2,215,557,977)
209,000,000
(7,295,313,478)
195,500,000
Total net cash (provided) in investing activities
(2,006,557,977)
Cash flows from investing activities
(7,099,813,478)
Cash flows from financing activities
(Increase)/decrease in restricted fund
Proceeds from short-term bank loans
Payment of lease obligations
(1,526,183,618)
2,129,908,637
(2,411,289,891)
907,988,192
(423,871,884)
(1,732,676,764)
Total net cash (used in) financing activities
(1,807,564,872)
(1,248,560,456)
Net increase in cash and cash equivalents
3,938,487,636
Cash and cash equivalents at
beginning of period
4,161,134,780
6,846,592,379
8,099,622,416
7,694,084,898
Cash and cash equivalents at the
end of period
4
847,492,519
The accompanying notes form an integral part of the financial statements
5
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
1.
General
PT Citatah Tbk (the “Company”) was established in Indonesia within the framework of
the Domestic Capital Investment Companies (PMDN) Law No. 6/1968 based on
notarial deed No. 77 dated September 26, 1974 of Komar Andasasmita, S.H., notary
public in Jakarta. The deed of Establishment was approved by the Ministry of Justice of
the Republic of Indonesia (currently known as the Ministry of Law and Human Rights of
the Republic of Indonesia) in its decision letter No. Y.A.5/362/17 dated December 8,
1975, and was published in the State Gazette of the Republic of Indonesia No. 38
dated May 11, 1976, Supplement No. 348. The Articles of Association have been
amended several times, Notarial Deed No. 137 dated September 20, 2007 of Dr.
Irawan Soerodjo, S.H., MSi., notary public in Jakarta, concerning the conversion of the
Company’s certain debts to the third party lenders into shares of stock with nominal
value of Rp 100 per share (debt to equity conversion). The said amendment was
approved by the Ministry of Law and Human Rights of the Republic of Indonesia in its
letter No. C-UM.HT.01.10-342 dated October 9, 2007. The latest amendment of the
Articles of Association which was based on Notarial Deed No. 61 dated April 13, 2009
of Dr. Irawan Soerodjo, SH, Msi, notary public in Jakarta, concerning the revisions in
the Company’s Articles of Association to be in accordance with the provisions of the
Republic of Indonesia Law No. 40/2007 regarding Limited Liability Company and
Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) regulation.
The said amendment was approved by the Ministry of Law and Human Rights of the
Republic of Indonesia in its Decision Letter No. AHU-16950.AH.01.02.Tahun 2009
dated April 30, 2009.
On October 30, 2007, the Director of the Indonesia Stock Exchange has approved the
listing of 390,839,821 Series B shares in relation to the said debt to equity conversion.
In accordance with article 3 of the Company’s Article of Association, the scope of the
Company’s activities comprises manufacturing and sale of marble, marble handicrafts
and other related activities
The Company commenced its commercial operations in 1976. The Company’s office is
located in Pinangsia III No. 31, Jakarta, Indonesia and it has factories located in
Pangkep (South Sulawesi), Bandung and Karawang. As of 30 September 2010, the
Company had a production capacity of 68,000 m2 slabs and 115,000 m2 tiles per
month and it had 929 employees. The end of year 2005, Company have closed all
factory’s activity in Bandung.
Effective from 10 June 1996 the Chairman of the Capital Market and Financial
Institution Supervisory Agency (“BapepamLK”) approved the Company’s initial public
offering of 44,000,000 shares at a total nominal value of Rp22,000,000,000. Since 3
July 1996, the Company’s said shares have been traded on the Indonesia Stock
Exchange (currently Indonesian Stock Exchange). On October 30, 2007, the Company
obtained approval from the Director of the Indonesia Stock Exchange for the listing of
the additional 390,839,821 shares without pre-emptive Right and with nominal value of
Rp 100 per share in relation to the conversion of Company’s certain debts into shares
of stock.
The Company’s Board of Commissioners and Directors as of 30 September 2010 and
2009 are as follows:
Board of Commissioners
Board of Directors
-------------------------------------------------------------------------------------------------------------------------------------------------Arif Sianto - President Commissioner
Taufik Johannes - President Director
Gregory Nanan Aswin - Independent
Denise Johanes
Commissioner
Tiffany Johanes
Ismail Husin
Sergio Magliocco
6
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
2.
Economic conditions and going concern
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern.
As shown in the accompanying financial statements, despite the net income generated
in 2010 amounting to Rp 5,080,395,940 the Company continues to reflect an
accumulated deficit of Rp 464,015,249,141 as of 30 September 2010 which resulted
from recurring losses in prior years. The incurrence of these losses had led to the
Company’s inability to meet its maturing obligations, principal and interest, to certain
third party lenders. These conditions indicate the existence of material uncertainty
which may cast significant doubt as to the ability of the Company to continue operating
as a going concern.
In response to the foregoing matters, the Company continues to implement measures
geared towards generating liquidity to meet maturing obligations and profitability. Some
of the more significant measures are:
 Complete the remaining debt restructuring activities
The Company plans to complete the negotiation with PT Perusahaan Pengelola
Aset (Persero) since complete debt restructuring will enable management to obtain
necessary working capital from the investor in order to maintain operations at the
highest possible level and to take the inherent profitability of the business. In
addition, the capital structure of the Company will further strengthen through the
conversion of the remaining debts to equity.
 Continuously to implement cost cutting measures to further reduce operating costs.
 Change its domestic marketing strategy to emphasize high-end residential market
sales.
 Increase its efforts to reduce the inventory turnover cycle and improve cash flows.
 Apply a more stringent credit criteria extending credit to buyers.
Management believes that the Company’s profitability will be restored upon the
successful implementation of the aforementioned measures.
The Company’s ability to continue as a going concern entity is dependent on the
successful completion of debt restructuring activities and implementation of the abovementioned management plans. The accompanying financial statements do not include
any adjustment that might result from the outcome of these uncertainties.
3.
Summary of significant accounting policies
The significant accounting principles which are applied consistently in the presentation
of the financial statements for the period ended 30 September 2010 and 2009 as
follows:
a.
Basis of Measurement and Presentation of Financial statements
The financial statements are presented in accordance with generally accepted
accounting principles in Indonesia (“Indonesian GAAP”), i.e., Statements of
Financial Accounting Standard (“PSAK”), and regulations and Financial
Statements Presentation and Disclosure Guidelines established by the Indonesia
Capital Market and Financial Institutions Supervisory Agency (“BAPEPAM-LK”) for
public listed manufacturing companies.
The financial statements are prepared on the basis of historical costs. The
financial statements are prepared on the basis of accrual method, except for
statements of cash flows.
7
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
3.
Summary of significant accounting policies (continued)
a.
Basis of Measurement and Presentation of Financial Statements (continued)
The statements of cash flows are prepared using direct method by classifying cash
flow into operating activities, investing activities and financing activities.
The Company using Rupiah for the presentation of the financial statements, unless
otherwise stated.
b.
Foreign Currency Transactions and Balances
The Company maintains its accounting records in Rupiah. Transactions in
currencies other than Rupiah are recorded at the prevailing rates of exchange in
effect on the date of the transactions.
As of the balance sheet dates, all foreign currency monetary assets and liabilities
have been translated at the middle exchange rates quoted by Bank Indonesia on
those dates. The net unrealized foreign exchange gains or losses arising are
recognized in the current year’s statement of profit and loss.
c.
Revenue Recognition
Revenue from the sales of goods is recognized when all the significant risks and
rewards of ownership of the goods have been passed to the buyer. Revenue from
local sales is recognized when goods are delivered to the buyer and revenue from
export sales is recognized when goods are shipped (FOB shipping point).
d.
Cash and Cash Equivalents
Cash on hand and in banks and short-term deposits which are held to maturity are
carried at cost.
Cash and cash equivalents are defined as cash on hand, bank and time deposits
which are not pledged, highly liquid investments readily convertible to known
amounts of cash and subject to insignificant risk of changes in value.
For the purposes of the statements of cash flow, cash and cash equivalents
consists of cash on hand and at banks and short term deposits with maturity of not
more than three months.
e.
Allowance for Doubtful Accounts
Allowance for doubtful accounts is made based on management’s evaluation of
the collectibility of the individual receivable accounts at the end of the period.
f.
Inventories
Inventories are stated at the lower of cost or net realizable value.
Cost is determined using the average method (except for the indirect materials like
spare part, factory supplies and explosive material which is determined using FIFO
- first in first out method) and comprises of all purchase, conversion and other
costs incurred in bringing the inventory to its present location and condition.
Finished goods include an appropriate allocation of fixed and variable factory
overhead in addition to direct materials and labor.
Net realizable value is the estimated selling price in the ordinary course of
business, less estimated cost of completion and the estimated cost necessary to
make the sale.
Provision for obsolete and slow moving inventory is determined on the basis of
estimated future usage or sale of individual inventory items.
8
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
3.
Summary of significant accounting policies (continued)
g.
Fixed Assets (continued)
Fixed assets are stated at cost less accumulated depreciation. Fixed assets,
except land, are depreciated using the straight line method based on the estimated
useful lives of the assets as follows:
Years
Buildings
20
Machinery and equipment
12.5
Vehicles
5
Office equipment
5-8
The cost of repairs and maintenance is charged to income as incurred, significant
renewals and betterment are capitalized. When assets are retired or otherwise
disposed of, their carrying value and the related accumulated depreciation are
removed from the accounts and any resulting gain or loss is reflected in the
statement of profit and loss for the period.
The Company has rights to land through years 2024 to 2028 on which its quarries
and factories are located in Bandung, Pangkep and Karawang. These rights can
be extended for an additional 40 years at the Company’s option and following
payment of a nominal fee before the expiry of the initial term. Deferred costs
incurred during the legal process of establishing the land rights paid to the
government is expensed when incurred as they are small amounts relative to the
cost of the land rights.
h.
Leases
Lease transactions are accounted for under the capital lease method if all of the
following criteria are met:
•
The lessee has an option to purchase the leased assets at the end of the
lease period at a price mutually agreed upon at the commencement of the
lease agreement;
•
Total periodic payments plus residual value fully covers the acquisition cost of
the leased capital goods plus interest thereon which is the lessor’s profit; and
•
The lease period covers a minimum of two years.
Finance leases, which effectively transfer to the company substantially all the risks
and rewards incidental to ownership of the leased item, are capitalized at the
present value of the minimum lease payments at the inception of the lease term
and disclosed as leased property, plant and equipment. Lease payments are
apportioned between the finance charges and reduction of the lease liability so as
to achieve a constant rate of interest on the remaining balance of the liability.
Finance charges are charged directly against income.
Capitalized leased assets are depreciated over the estimated useful life of the
asset.
Leases where the lessor effectively retains substantially all the risks and benefits
of ownership of the leased item are classified as operating leases. Operating lease
payments are recognized as an expense in the statement of profit and loss on a
straight-line basis over the lease term.
i.
Deferred Charges
Deferred charges represent costs incurred obtaining quarry areas and quarry
permits (“SIPD”). The costs of obtaining quarry areas are amortized over their
estimated useful lives (20-40 years) on the straight-line basis. SIPDs are amortized
over five years.
9
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
3.
Summary of significant accounting policies (continued)
j.
Related Party Transactions
The nature and value of transactions with parties that the Company has the ability
to influence, or with parties with which the Company has specific arrangements or
significant transactions, and whether or not the transactions have been performed
with the conditions as if the transactions are performed with non-related parties,
have been disclosed in the financial statements. Such transactions are conducted
on terms agreed between the parties.
k.
Profit (loss) per Share
Profit (loss) per share is computed based on the weighted average number of
shares issued and paid up during the year.
Diluted earning per share is computed based on the weighted average number of
shares issued and paid up during the year with the assumption that the potential
ordinary shares have been converted into ordinary shares outstanding. For this
computation, the net profit is adjusted by eliminating the interest expenses and
foreign exchange on the convertible loan and the related tax effect.
l.
Corporate Income Tax
Income tax is accounted for under the liability method. Deferred tax assets and
liabilities are recognized on all temporary differences at the balance sheet date
between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences.
Deferred tax assets are recognized for all deductible temporary differences and
carry-forward of unused tax losses, to the extent that it is probable that taxable
profit will be available against which the deductible temporary differences and
unused tax losses can be utilized.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient taxable
profit will be available to allow all or part of the deferred tax asset to be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected
to apply to the period when the asset is realized or the liability is settled, based on
tax rates (and tax laws) that have been enacted or substantively enacted at the
balance sheet date.
m.
Employee Entitlements
The Company recognizes employee benefits obligation in accordance with its
policy. The unfunded defined employee benefits are based on the employees’
years of service and salary at retirement. Current service cost is charged to current
operations. Past service cost, actuarial adjustments and the effect of changes in
actuarial assumptions for active participants are amortized over the estimated
residual employment period.
10
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
3.
Summary of significant accounting policies (continued)
n. Restructuring of Troubled Debt
The Company records the restructuring of troubled debt in accordance with PSAK
No. 54 “Accounting for the Restructuring of Troubled Debt”. PSAK No. 54 requires
the Company to calculate estimated repayment including interest charged in the
loan period. If the future repayment exceeds the carrying amount of loans
recorded by the Company, no gain on restructuring is recognized. If the future
repayment is less than the carrying amount of loans recorded by the Company, the
difference is recognized as a gain on the restructuring of troubled debt.
o.
Segment Information
Segment information is presented by product category and marketing region.
p.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimations and assumptions
that affect amounts reported therein. Due to inherent uncertainty in making
estimates, actual results reported in future periods may be based on amounts
which differ from those estimates.
4.
Cash and cash equivalents
2010
Cash on hand
Cash in bank
Total cash on hand and bank
Time deposits
Total cash and cash equivalents
2009
723,875,625
6,811,566,790
7,535,442,415
357,933,628
1,841,400,613
2,199,334,241
564,180,001
5,494,750,657
8,099,622,416
7,694,084,898
During the year ended 30 September 2010, time deposits earned interest at annual
rates of 5.00% - 7.00% (2009: 5.75% - 8.00%) for Rupiah, 0.15% - 1.00% p.a. (2009:
1.00% - 2.50%) for US$.
5.
Trade accounts receivable
2010
PT. Tiara Metrpolitan Jaya
PT. Wanamitra Permai
Fujian Yuanda Stone Co., Ltd
PT. Active Decor
PT. Lumbung Artanugraha
Others (less than Rp1 billion individually)
Total trade account receivables
11
2,772,883,277
1,938,182,216
1,724,330,976
1,125,246,013
1,000,833,506
16,128,651,104
24,690,127,092
2009
5,317,802,567
3,484,943,824
717,052,308
700,124,364
845,443,373
26,539,481,141
37,604,847,577
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
5.
Trade accounts receivable (continued)
2010
Less: Allowance for doubtful accounts
Total trade account receivables, net
2009
2,687,793,785
2,693,911,524
22,002,333,307
34,910,936,053
The aging analysis of trade accounts receivable is as follows:
2010
2009
0 - 30 days
31 - 60 days
61 - 90 days
Over 90 days
1,950,956,926
2,867,450,356
2,159,594,938
15,024,331,087
5,074,356,770
5,162,098,848
3,268,784,175
21,405,696,260
Total
22,002,333,307
34,910,936,053
Trade accounts receivable by currency :
2010
2009
Rupiah
Foreign currencies :
US$
EUR
9,270,709,371
17,015,499,152
10,357,070,446
2,374,553,490
16,761,878,472
1,133,558,429
Total trade account receivables, net
22,002,333,307
34,910,936,053
Trade accounts receivable are used as collateral for the Company’s bank loan.
Management believe that the allowance for doubtful accounts is adequate to cover
possible losses from uncollectible accounts.
6.
Other receivables
2010
2009
Employee receivables
Others
88,027,901
2,153,840,762
103,640,592
1,112,545,748
Total other receivables
2,241,868,663
1,216,186,340
Receivable from employees are non-interest bearing and are payable through monthly
salary deduction.
No allowance for doubtful accounts was provided on other accounts receivable as
management believes that all such receivables are collectible.
7.
Inventories
2010
Finished goods
Raw materials
Factory supplies
Spare parts
Total inventories
49,111,061,681
8,377,425,071
6,462,885,498
12,376,287,987
76,327,660,237
12
2009
40,311,539,384
3,830,975,421
6,714,060,350
10,138,233,182
60,994,808,337
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
7.
Inventories (continued)
2010
Less: Allowance for stock obsolescence
Total inventories-net
2009
8,316,526,000
8,316,526,000
68,011,134,237
52,678,282,337
All inventories are pledged as collateral for the Company's bank loans.
The Company’s inventories are covered by insurance against any possible loss from
fire and other risks with coverage of Rp46 billion. Management believes that the
insurance coverage is sufficient to cover such losses.
8.
9.
Prepaid Tax
2010
2009
Corporate income tax
Value added tax
Income tax article 29
803,891,743
6,340,721,524
957,087,945
806,721,259
5,202,759,624
768,220,954
Total prepaid tax
8,101,701,212
6,777,701,837
2010
2009
1,414,854,545
1,434,854,545
Related party transactions
Due from PT Megapasific Nusapersada
The Company, in the ordinary course of business, has various trade and finance
transactions with related parties that are at prices consistent with third parties. The
nature of the relationship with the related parties is generally that of directors and
management, companies under common control and associates entities.
Due from a related party as of 30 September 2010 and 2009 represents 0.74% of the
total assets.
10.
Unused fixed asset
2010
Unused fixed asset
Acquisition cost
Land
Building
Machineries and equipment
Accumulated depreciation
Building
Machineries and equipment
Total unused fixed asset
2009
1,890,068,050
912,504,447
1,741,368,912
4,543,941,409
1,890,068,050
912,504,447
1,741,368,912
4,543,941,409
(890,918,025)
(1,741,368,912)
(2,632,286,937)
(866,210,287)
(1,741,368,912)
(2,607,579,199)
1,911,654,472
1,936,362,210
Represent unused fixed asset in relation to closing down of factory in Bandung (see
note 1)
13
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
11.
Fixed assets
2010 Movements
Opening
balance
1 Jan. 2010
Additions/
reclassification
Deductions/
reclassification
Closing
balance
30 Sep 2010
Cost:
Direct ownership:
Land
Building
Machinery & equipment
Vehicles
Office equipment
Leased assets:
- Machinery &
equipment
21,063,735,350
44,642,394,780
135,458,125,323
8,430,729,962
5,950,369,247
215,545,354,662
0
0
3,174,454,859
1,773,268,182
492,723,118
5,440,446,159
8,150,143,100
4,052,995,455
12,203,138,555
320,978,700
868,600,000
1,189,578,700
227,748,493,217
0
0
141,027,273
475,754,250
0
616,781,523
1,781,620,000
21,063,735,350
44,642,394,780
138,491,552,909
9,728,243,894
6,443,092,365
220,369,019,298
3,224,888,182
6,689,501,800
3,478,327,273
10,167,829,073
6,630,024,859
3,841,669,705
230,536,848,371
26,478,542,442
119,504,678,308
6,877,433,360
4,896,822,408
157,757,476,518
1,513,834,520
4,774,268,835
1,100,222,164
162,419,532
7,550,745,051
0
141,027,273
475,754,250
0
616,781,523
2,129,603,297
374,423,592
439,466,279
973,861,971
3,103,465,268
619,205,303
993,628,895
690,307,284
1,129,773,563
2,064,560,610
902,759,990
2,967,320,600
Total accumulated
Depreciation
160,860,941,786
8,544,373,946
1,746,555,086
167,658,760,646
Total book value
66,887,551,431
- Vehicles
Total cost
1,443,268,182
Accumulated depreciation:
Direct ownership:
Building
Machinery & equipment
Vehicles
Office equipment
27,992,376,962
124,137,919,870
7,501,901,274
5,059,241,940
164,691,440,046
Leased assets:
- Machinery &
equipment
- Vehicles
62,878,087,725
2009 Movements
Opening
balance
1 Jan. 2009
Additions/
reclassification
21,484,238,792
45,284,891,338
127,905,478,330
6,890,258,962
5,277,967,866
206,842,835,288
0
0
6,141,706,643
1,046,045,454
622,561,381
7,810,313,478
Deductions/
reclassification
Closing
balance
30 Sep 2009
Cost:
Direct ownership:
Land
Building
Machinery & equipment
Vehicles
Office equipment
0
0
35,650,000
234,550,000
0
270,200,000
21,484,238,792
45,284,891,338
134,011,534,973
7,701,754,416
5,900,529,247
214,382,948,766
6,664,943,100
3,912,495,455
10,577,438,555
224,960,387,321
Leased assets:
- Machinery &
equipment
- Vehicles
Total cost
0
6,664,943,100
3,862,995,455
10,527,938,555
564,500,000
564,500,000
0
515,000,000
515,000,000
217,370,773,843
8,374,813,478
785,200,000
14
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
11.
Fixed assets (continued)
Opening
balance
1 Jan. 2009
Additions/
reclassification
Deductions/
reclassification
Closing
balance
30 Sep 2009
Accumulated depreciation:
Direct ownership:
Building
Machinery & equipment
Vehicles
Office equipment
24,663,061,553
111,379,406,784
6,622,535,822
4,717,855,232
147,382,859,391
1,540,409,817
6,138,720,847
355,492,627
129,982,665
8,164,605,956
0
35,650,000
234,550,000
0
270,200,000
26,203,471,370
117,482,477,631
6,743,478,449
4,847,837,897
155,277,265,347
1,680,075,401
438,429,544
2,118,504,945
329,719,923
581,924,313
911,644,236
0
197,416,659
197,416,659
2,009,795,324
822,937,198
2,832,732,522
Total accumulated
Depreciation
149,501,364,336
9,076,250,192
467,616,659
158,109,997,869
Total book value
67,869,409,507
Leased assets:
- Machinery &
equipment
- Vehicles
66,850,389,452
Fixed assets are pledged as collateral for the bank loans and leased assets are
pledged as collateral for lease obligations.
The Company’s fixed assets are covered by insurance from any possible losses from
fire or other risks with coverage of Rp205 billion. The Management believes that the
insurance coverage is sufficient to cover such losses.
As of 30 September 2010 and 2009, based on company’s management, there are no
impairment in value of the aforementioned property, plant and equipment as its carrying
value does not exceed the replacement cost or recoverable amount from the sale or
use of the asset.
12.
Deferred charges
Cost:
Quarry areas
Quarry permits
Less: Accumulated amortization
Quarry areas
Quarry permits
Deferred charges-net
2010
2009
21,783,360,000
338,766,247
22,122,126,247
21,783,360,000
338,766,247
22,122,126,247
(8,921,079,270)
(338,766,247)
(9,259,845,517)
(8,376,245,274)
(338,766,247)
(8,715,011,521)
12,862,280,730
13,407,114,726
The quarry area is located in Citatah, Bandung, West Java with total area of 7.8
hectares.
15
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
13.
Restricted funds
2010
2009
Bank
Time Deposits
18,527,242
3,830,358,452
20,216,997
1,687,721,173
Total restricted funds
3,848,885,694
1,707,938,170
The Company has committed to an escrow account agreement with Bank DBS
Indonesia as the Facility Agent that represents the Company’s creditors in troubled debt
restructuring agreement. Cash in Bank DBS Indonesia is pledged as fiduciary collateral
for the restructured debt .
Time deposits in PT. Bank UOB Buana are pledged for Letter of Credit related to import
purchasing.
The range of interest rates per annum on the time deposits are as follows :
2010
Rupiah
US$
14.
5.00% - 7.00%
0.15% - 1.00%
2009
5.75% - 8.00%
1.00% - 2.50%
Other non current assets
2010
Investment Villa Bougenvile
Refundable deposit
Total other non current assets
2009
450,000,000
557,585,245
450,000,000
212,398,745
1,007,585,245
662,398,745
The estimate fair value of the investment amounted Rp 705,000,000 which based on
valuation report of PT Insal Utama, an independent appraiser, dated March 5, 2009.
15.
Bank loans
Bank loans represent short-term credit facilities from third party banks.
2010
Total bank loan
4,256,061,792
2009
4,920,250,557
Represents a Short Term Advance, Letters of Credit, Term Bill, Post Import Loan and
Bank Guarantee facilities from PT. Bank UOB Buana with a combined maximum credit
limit amounting to US$1,500,000 that bear interest at 13.5% – 13.875% per annum and
7% per annum for loans in Rupiah and US$, respectively. These loans are secured by
personal guarantees of Mr. Taufik Johannes and Mr. Arif Sianto, related parties, first
registered Hak Tanggung on land and factory buildings in Karawang and a letter of
undertaking to deliver the Company’s land and buildings.
16
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
16.
Trade accounts payable
2010
2009
Ceam, Srl
Vivacity Engineering PTY. Ltd
Socomac
Others (less than Rp1 billion individually)
1,439,554,070
3,731,356,000
463,840,331
3,516,429,137
2,109,811,818
3,901,597,967
512,703,575
1,524,956,234
Total trade accounts payable
9,151,179,538
8,049,069,594
Trade accounts payable to third parties represent amounts due to third parties for the
purchase of marble and supplies from local and overseas suppliers. There are no trade
accounts payable to related party.
Trade accounts payable by currency :
2010
17.
2009
Rupiah
Foreign currencies :
US$
EUR
AUD
JPY
4,109,775,726
3,107,374,610
765,431,202
1,223,130,010
3,029,302,600
23,540,000
1,462,975,875
314,967,929
3,139,991,180
23,760,000
Jumlah hutang usaha
9,151,179,538
8,049,069,594
Advances received
This account represents down payments received by the Company for sales orders
made and will be applied against the accounts receivable upon recognition of the sale.
Advances received as of 30 September 2010 and 2009 amounted to Rp
11,107,603,217 and Rp 8,828,737,353 respectively.
18.
Tax payable
2010
19.
2009
Employee income tax
Withholding tax art 23 & 26
Value added tax
162,397,429
73,538,456
4,707,709,422
354,690,288
11,068,162
3,827,901,272
Total taxes payable
4,943,645,307
4,193,659,722
Accrued expenses
2010
2009
Consultant expenses
Others (less than Rp1 billion individually)
1,740,179,747
2,047,530,465
2,544,316,506
3,240,784,497
Total accrued expenses
3,787,710,212
5,785,101,003
17
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
20.
Provision for employee entitlements
2010
2009
Balance at beginning of the year
Additional provision
Utilized during the year
19,183,737,537
0
(194,102,481)
16,509,506,562
0
(139,364,951)
Balance at end of the year
18,989,635,056
16,370,141,611
The Company provides for benefits due to employees under Labor Law No. 13 year
2003 dated March 25, 2003. (Note 3m).
21.
Current portion of long-term bank loans
Current portion of long-term bank loans represent credit facilities obtained from third
party banks, which have been restructured effective from December 20, 2002.
2010
Current portion of long term bank loans
55,306,523,019
2009
59,954,356,230
Represents a facility from Company’s restructuring of troubled debt amounting to
US$5,000,000 and bears interest at 2.00%-2.50% above SIBOR per annum. A
minimum payment of 0.50% from interest has to be paid to the creditors, and the
remains are capitalized. This facility will be repaid on an installment basis of 10 halfyear periods starting from 30 June 2006.
Currently the current portion of long term bank loans is in process of re-negotiation
based on the second phase of the loan restructuring (notes 32).
22.
Lease obligations
Lease obligations comprise non-cancelable leasing contracts with PT. BNP Lippo
Utama Leasing, PT. Tifa finance, and Bumiputera BOT Finance for machinery,
equipment and vehicles with lease periods from two to four years at interest of 10.76%
per annum to 18.00% per annum . This loan is secured by its leased assets.
The capital lease payments, both principal and interest, are payable as follows:
Net present value of minimum
future lease payment
Current lease obligations
Non current lease obligations
23.
2010
2009
3,088,527,955
2,971,993,951
3,622,296,337
1,571,348,194
116,534,004
2,050,948,143
Current portion of convertible loans
Current portion of convertible loans
18
2010
2009
11,808,443,303
12,976,466,710
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
23.
Current portion of convertible loans (continued)
Represents a facility from the Company’s restructuring of troubled debt amounting to
US$5,000,000 and bears interest at 6% per annum. A minimum payment of 0.50%0.75% from interest has to be paid to the creditors, and the remains are capitalized.
The Company has an option to convert this loan not later than December 20, 2010
based on the terms agreement. The amount of loan that will be converted or settled in
cash will depend on the EBITDA ratios as stated in the agreement.
Currently the current portion of convertible loan is in process of re-negotiation based on
the second phase of the loan restructuring (notes 32).
24.
Share capital
The Company’s authorized capital amounting to Rp1,260,000,000,000 consists of
840,000,000 shares of Series A with nominal value of Rp500 per share and
8,400,000,000 shares of Series B with nominal value of Rp100. The issued and fully
paid shares consists of 840,000,000 shares of Series A and 390,839,821 shares of
Series B (notes 32).
The list of the Company’s shareholders as of 30 September 2010 and 2009 were
follows:
2010
Name of Stockholders
Parallax Venture Partners XIII
BNP Paribas Limited Singapore
Advance Capital Limited
The Company’s Directors & Commissioners
Meridian Pacific International Pte. Ltd.
PT. Alpha Sekuritas
Investspring
Others (below 5% each)
Total
Number of
Shares
Percentage of
Ownership
Total Paid-up
Capital Stock
232.618.891
115.735.348
86.472.946
80.952.700
71.614.000
71.462.674
64.800.681
507.182.581
18,90 %
9,40 %
7,03 %
6,58 %
5,82 %
5,81 %
5,26 %
41,20 %
23.261.889.100
57.867.674.000
8.647.449.800
40.476.350.000
35.807.000.000
23.401.453.000
32.400.340.500
237.221.825.700
1.230.839.821
100,00 %
459.083.982.100
2009
Name of Stockholders
Percentage
of Ownership
Total Paid-up
Capital Stock
Parallax Venture Partners XIII
232.618.891
18,90 %
23.261.889.100
BNP Paribas Limited Singapore
115.735.348
9,40 %
57.867.674.000
Advance Capital Limited
86.472.946
7,03 %
8.647.449.800
The Company’s Directors & Commissioners
80.952.700
6,58 %
40.476.350.000
Meridian Pacific International Pte. Ltd.
71.614.000
5,82 %
35.807.000.000
71.462.674
64.800.681
507.182.581
1.230.839.821
5,81 %
5,26 %
41,20 %
100,00 %
23.401.453.000
32.400.340.500
237.221.825.700
459.083.982.100
PT. Alpha Sekuritas
Investspring
Others (below 5% each)
Total
25.
Number of
Shares
Additional paid in capital – net
Share premium/(discount)
Share premium represents the difference between the nominal value of the Company’s
shares and the price paid by the new shareholders during the Company’s initial public
offering in June 1996. The number of shares offered was 44,000,000 with a par value of
Rp500 per share, which were sold for Rp2,375 per share. The additional share
premium in 2007 amounting to Rp 19,151,151,190 resulted from the debt to equity
conversion in 2007 as disclosed in notes 32 to the financial statements.
19
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
25.
Additional paid in capital – net (continued)
Share premium/(discount) (continued)
To comply with Capital Market and Financial Institution Supervisory Agency
(BapepamLK) regulation under its decision letter No. Kep-06/PM/2000 on the
Amendment of Rule No. VIII.G.7 dated 13 March 2000, costs incurred in relation to the
Company’s initial public offering should be recognized as a deduction in share premium,
the cost of the public offering of shares amounted to Rp837,324,731 and was
recognized as a deduction in share premium.
Share discount represents the differences between the nominal value of the Company’s
shares and the fair value of the shares at conversion date between the Company’s
shares and the carrying amount of the loan on 20 December 2002. The converted
shares amounted to 714,000,000 with a par value of Rp500 each and total nominal
value of shares amounted to Rp357,000,000,000 with a fair value of
Rp326,296,638,195 .
Donated Capital
Represents donated capital from Mr. Taufik Johannes and Mr. Arif Sianto, related
parties, being donated shares of QEM to the Company, based on notarial deed no. 49
and 50 dated 26 October 1999 of Ny. Esther Mercia Sulaiman, S.H. Notary in Jakarta.
The donated capital was valued at its book value at the transaction date.
26.
Net sales
2010
Local sales
Export sales
Total sales
2009
40,757,229,787
60,516,744,068
44,697,417,289
71,067,802,378
101,273,973,855
115,765,219,667
There were no sales to individual customers that represent more than 10% of total
sales for the period ended 30 September 2010 and 2009.
27.
Cost of goods sold
2010
2009
Finished goods at beginning of the period
40,069,077,249
43,575,578,217
Raw materials used
Direct labor
Manufacturing overheads
Total production costs
24,193,419,854
9,895,848,703
35,723,523,373
69,812,791,930
25,698,685,592
9,075,109,895
37,701,243,366
72,475,038,853
Finished goods purchased
Finished goods available for sale
16,284,002,084
126,165,871,263
13,925,852,619
129,976,469,689
Finished goods at the end of the period
(49,111,061,681)
(40,311,539,384)
77,054,809,582
89,664,930,305
Cost of goods sold
There were no purchases from individual suppliers that represented more than 10% of
total sales for the period ended 30 September 2010 and 2009.
20
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
28.
Operating expenses
2010
2009
Selling expenses
Salaries and allowances
Sales commission
Installation and polishing
Export selling expense
Postage and telecommunication
Depreciation expense
Freight expense
Traveling expenses
Bank Administration
Other (less than Rp100 million individually)
Total selling expenses
4,169,800,680
1,095,541,594
1,904,372,089
1,917,749,464
238,592,121
138,673,170
293,723,300
1,070,770,374
270,348,595
2,645,058,979
2,349,864,464
480,560,545
2,294,671,784
161,234,512
171,983,038
327,040,150
952,480,199
349,017,056
1,840,074,576
12,939,645,963
683,228,721
10,415,139,448
4,721,096,419
276,058,476
453,085,051
234,614,961
228,411,937
459,214,534
305,907,091
275,565,218
372,955,085
138,550,000
1,592,375,437
9,057,834,209
3,610,114,929
1,265,831,468
417,149,708
208,812,605
212,399,077
375,819,957
341,410,982
318,887,133
296,214,840
103,700,000
995,685,756
8,146,026,455
21,997,480,172
18,561,165,903
2010
2009
General and administrative expenses
Salaries and allowances
Taxes and retributions
Postage and telecommunications
Bank Administration
Depreciation Expense
Utilities
Traveling Expense
Vehicle expenses
Stationary
Consultant fee
Other (less than Rp100 million individually)
Total general and administrative expenses
Total operating expenses
29.
Taxation
a.
Corporate income tax
Benefit of corporate income tax:
Current year
Deferred tax
Total corporate income tax
21
0
30,474,810
0
270,464,183
30,474,810
270,464,183
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
29.
Taxation (continued)
b.
Reconciliation of corporate income tax
2010
Profit before corporate income tax
2009
5,049,921,130
Expenses
that
are
not
deductible
/(assessable) in determining taxable profit:
Salaries and allowances
1,918,713,103
Entertainment / donations
858,455,302
Tax expenses
787,555,414
Interest income
(83,413,002)
3,481,310,817
Temporary differences:
Fixed assets
Lease assets
Allowance
for
inventory
obsolescence
Gain on sale of property, plant, and
equipment
Provision for employee entitlements
c.
15,152,448,589
1,224,016,905
729,999,486
261,560,186
(166,689,803)
2,048,886,774
3,068,349,129
(2,411,289,891)
4,574,746,772
(1,732,676,764)
0
(1,940,522,732)
(209,000,000)
(194,102,481)
253,956,757
Total fiscal correction
3,735,267,574
0
0
901,547,276
2,950,434,050
Profit after fiscal correction
Compensated loss
8,785,188,704
(23,500,129,485)
18,102,882,639
(49,125,487,764)
Tax loss carried forward
(14,714,940,781)
(31,022,605,125)
Reconciliation of deferred tax
2010
2009
Income before tax
5,049,921,130
15,152,448,589
Tax expense at effective tax rates
1,009,984,226
4,545,734,577
66,543,195
317,199,426
157,511,083
171,691,060
84,642,505
282,562,566
78,468,056
218,999,846
(16,682,600)
696,262,164
(50,006,941)
614,666,032
1,706,246,390
5,160,400,609
(1,757,037,741)
20,316,541
(5,430,864,792)
0
(30,474,810)
(270,464,183)
Tax effect of permanent difference :
Salaries and allowance
Tax allowance
Taxes
Representation and donations
Interest income from time deposit
and current account
Net
Sub total
Unrecognized deferred tax asset on
prior year’s fiscal loss applied against
taxable income
Effect of change in tax rates
Total tax benefit
22
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
29.
Taxation (continued)
d.
Deferred tax assets/(liabilities)
Deferred tax assets and liabilities consist of:
2010
2009
Deferred tax assets:
Fixed assets
Lease assets
Provision for employee entitlements
Allowance for doubtful accounts
Allowance for inventory obsolescence
Tax loss carried forward
Provision Tax loss carried forward
Deferred tax liabilities-net
e.
(2,906,722,886)
(2,462,095,397)
3,813,455,208
538,782,305
1,663,305,200
3,645,803,252
(3,645,803,252)
646,724,430
(3,741,589,955)
(2,466,035,743)
3,797,186,510
627,098,011
1,330,644,160
5,867,997,394
(5,867,997,394)
(452,697,017)
According to the tax regulations, lodgment of tax returns is based on taxpayers'
own calculation of tax liabilities (self assessment system). The tax authorities may
conduct a tax audit on the Company for up to five years thereafter. However,
when an audit is not conducted within such period, generally the tax return is then
considered to be final.
On April 7, 2010, the Company received tax assessment letter No.
00111/406/08/054/10 from the Tax Office stating that the Company’s overpayment of
corporate income tax for the year 2008 amounted Rp 778.721.259. On the same date
the Company received assessment letter from the Tax Office for the underpayment of
of Valued Added Tax and Articles 23 and 21. Based on letter from the Tax Office dated
April 28, 2010 the overpayment of corporate income tax amounting to Rp 572.035.128
had received by the Company.
On February 13, 2009 the Company received tax assessment letter No.
00036/406/07/054/09 from The Tax Office stating that the Company’s overpayment of
corporate income tax for the year 2007 amounted Rp 470,414,883. On the same date,
the Company received an assessment letter from the Tax Office for the underpayment
of Valued Added Tax and Articles 23 and 21 for fiscal year 2007 totaling to Rp
1,241,373,065. Further, based on letter from the Tax Office dated March 2, 2009 the
overpayment of corporate income tax amounting to Rp 470,414,883 was offset against
the underpayment of Value Added Tax and Articles 23 and 21.
30.
Monetary assets and liabilities in foreign currencies
2010
Foreign Currency
Equivalent
Rupiah
Assets
Cash and cash equivalents
US$
EUR
CNY
252,506.68
112,831.62
6,884.29
2,253,369,612
1,369,663,035
9,169,874
Accounts receivable
US$
EUR
1,160,586.11
195,613.60
10,357,070,446
2,374,553,490
Restricted fund
US$
EUR
96,861.54
244,124.95
864,392,383
2,963,432,768
20,191,651,608
Total assets
23
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
30.
Monetary assets and liabilities in foreign currencies (continued)
2010
Foreign Currency
Equivalent
Rupiah
Liabilities
Bank loans
US$
282,549.73
2,521,473,791
Accounts payable
US$
EUR
AUD
JPY
85,772.21
100,760.36
351,020.00
220,000.00
765,431,202
1,223,130,010
3,029,302,600
23,540,000
Advanced received
US$
EUR
770,970.23
66,436.46
6,880,138,333
806,472,188
Accrued expenses
US$
195,000.00
1,740,180,000
Current portion of lease obligations
US$
101,602.60
906,701,602
Current portion of long term bank loans
US$
6,197,503.70
55,306,523,019
Current portion of convertible loans
US$
1,323,223.14
11,808,443,302
85,011,336,047
Total liabilities
Total liabilities – net
(64,819,684,439)
Due to the Company’s liquidity position, it has not entered into hedging contracts to
cover its foreign currency risk.
31.
Business segment information
Information regarding the Company’s business segment is as follows:
2010
Based on Geographic area:
Sales:
Export
Local
Total
60,516,744,068
40,757,229,787
101,273,973,855
Based on Product:
Sales:
Local Marble
Import Marble
Granite
Total
80,110,542,155
18,115,856,696
3,047,575,004
101,273,973,855
24
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
31.
Business segment information (continued)
2010
Cost of goods sold:
Local Marble
Import Marble
Granite
60,499,612,616
13,676,512,907
2,878,684,059
Total
77,054,809,582
Gross profit:
Local Marble
Import Marble
Granite
Total
19,610,929,539
4,439,343,789
168,890,945
24,219,164,273
Assets:
Local Marble
Import Marble
Granite
Total
151,686,927,276
34,301,835,480
5,770,492,566
191,759,255,322
The identified assets are assets that were used exclusively in each segment
operation or geographic area. Those assets may also include the allocation of
assets used together with other segments. The Company’s assets are cash and
cash equivalent, account receivable, other receivables, prepaid tax, investment in
association, fixed assets, deferred charges and other non-current assets.
32.
Restructuring of Troubled Debt
a.
First Phase of Debt Restructuring
In connection with the finalization of the first phase of the Company’s debt
restructuring negotiation, the Company and its creditors (the Creditors) signed the
Amended and Restructured Facilities Agreement on June 26, 2002, and
subsequently its Supplemental Agreement on October 2, 2002. Pursuant to these
agreements, the Company’s short term bank loans, long–term bank loans and
accrued interest amounting to Rp 132,937,932,215, Rp 220,206,857,476 and Rp
94,500,412,603, respectively, were restructured effective from December 20, 2002
to become a term loan facility, convertible loan, and shares of stock, respectively.
The restructured bank loan facilities are guaranteed by the Company’s receivables
(notes 5); inventories (notes 7); fixed assets (notes 11); personal guarantees of
Taufik Johannes and Arif Sianto, the Company’s stockholders, and a corporate
guarantee from PT Megapasific Nusapersada and acceptance letter and fiduciary
on fund placed in PT Bank DBS Indonesia (notes 13).
The loan which was converted into shares was calculated using the exchange rate
of Rp 8,877 per US$ 1 when the shares were distributed on December 20, 2002.
The fair value per share is Rp 457 on the conversion date. Accordingly, the
amount of Rp 30,703,361,805 representing the excess of the nominal par value
over the fair value of the 714,000,000 shares at the time of conversion was
recorded as share discount and was deducted from the “Additional paid-in capital”
account (notes 25).
25
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
32.
Restructuring of Troubled Debt (continued)
a.
First Phase of Debt Restructuring (continued)
The aforesaid first phase of the restructuring program was approved by the
Company’s stockholders in the Extraordinary Stockholders’ Meeting on August 9,
2002, based on Notarial Deed No. 22 of Ny. Esther Mercia Sulaiman, S.H., notary
public in Jakarta. The Company has received an approval from the Policy
Committee of Finance Sector through its letter No. Kep.02/K.KKSK/12/2002,
regarding the “Policy on Bank and Corporate Loan Restructuring”, dated
December 30, 2002.
Since 2004, the Company is still in the process of second phase restructuring of its
term loans and convertible loans. During the restructuring process, the Company
did not pay principal due on long-term loan amounting to US$ 3,000,000 as well as
the related interest. The unpaid interest and principal instalment are recorded as
part of accrued expenses and current portion of long-term loan, respectively (notes
19 and 21).
b.
Second Phase of Debt Restructuring
The Company, Parallax Venture Partners XIII Ltd. (the Investor) and most of the
Creditors have signed the Master Restructuring Agreement dated March 10, 2005
where it was agreed that the outstanding long-term loans and convertible loans
payable amounting to US$ 5,000,000 and US$ 5,000,000, respectively, plus
accrued interests and other costs will be further restructured.
The significant terms and condition from Master Restructuring Agreement are as
follows:

On the effective date, total restructured debt amounting to US$ 10,000,000
shall be purchased by the investor, including all of the rights, title, interests
and benefits of such Creditors upon the terms and conditions of the existing
restructuring agreement, and all unpaid interest and others cost shall be
written off by the investor and shall be deemed extinguished.

On the effective date, total restructured debt purchased by the Investor shall
be converted into 843,366,733 Series B shares in the Company. The
Company shall issue an aggregate of 843,366,733 Series B shares with at
least 50.1% of the voting rights in the Investor post the issuance of the Series
B.

The Company agrees to issue Secured Convertible Bonds to the Investor
amounting to US$ 4,000,000 which will mature on 2010 with the payment of
the related interest to be deferred during the term of the Secured Convertible
Bonds. The rate of annual interest shall be 11% compounded quarterly from
the effective date payable by the Company on the maturity date of the
Secured Convertible Bonds. The Secured Convertible Bonds will be secured
by a debenture or other form of security document creating fixed and floating
charges over the assets of the Company including, without limitation, land,
plant, equipment, receivable and inventory.
26
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
32.
Restructuring of Troubled Debt (continued)
b.
Second Phase of Debt Restructuring (continued)

The second phase of debt restructuring has not been deemed effective
because PT Perusahaan Pengelola Aset (Persero), which owned 18.32% of
total restructured debt, is waiting for the valuation process of the assets’
transfer from the Indonesian Bank Restructuring Agency (“IBRA”) to PT
Perusahaan Pengelola Aset (Persero).
Considering that the Master Restructuring Agreement is deemed ineffective; the
Company’s Directors and Commissioners by virtue of the power given to them by
the Company’s stockholders based on Notarial Deed No. 22, dated August 9,
2002, of Esther Mercia Sulaiman, S.H., notary public in Jakarta, to take the
necessary actions to have its loans in default restructured, have offered its
creditors on May 25, 2007 to prepay all of such creditors’ share of the Facility II
debts by exercising its repayment option under Clause 7.6(e) of the Amended and
Restructured Facilities Agreement dated June 26, 2002 wherein the Company will
issue new shares (Series B shares) to the creditors in proportion to their
respective aggregate amount of convertible loan outstanding in the Facility II
debts. The offer also provides that the shares to be issued will be subject to a one
year lock up period from the date of prepayment, as such, those shares shall not
be traded.
The offer to prepay the Facility II debts has been amended with respect to the
conversion price that will be used in such debt to equity conversion which is the
average share price of the shares to be issued during the 25 days period prior to
the date of notification of the Extraordinary General Meeting of the Shareholders to
the public, being July 12, 2002, at which the Amended and Restructured Facilities
Agreement providing for the conversion was approved, as based on applicable
regulations for debt to equity conversion transaction and the exchange rate that
will be used for the conversion of US Dollar denominated debts into Rupiah
amounts. Based on the amendments, the conversion rate to be used is Rp 10,400
to 1US$ and the average share price of the Company’s stock during the 25 days
period prior to July 12, 2002 was Rp 149 which is in accordance to Letter No. S0838/BEJ-PSR/08-2007, from the Indonesia Stock Exchange.
On various dates, the offer of the Company to prepay the Facility II debts has been
accepted and approved by the respective creditors, except for PT Perusahaan
Pengelola Aset (Persero). Accordingly, the Facility II Debts have been converted
into shares of stock as follows:
No
1.
2.
3.
4.
5.
6.
Creditors
Debt Balance
Rp
Parallax Venture Partners XIII Ltd
Advance Capital Limited
PT Alpha Sekuritas
PT Pratama Capital Indonesia
PT Maha Mega Perdana
Affluent Offshore Limited
Total
27
Conversion
into
Series B Share
Share
Total Nominal
Share
Rp
34,660,214,853
12,884,411,151
4,592,881,716
3,267,373,400
1,886,834,405
943,417,782
232,618,891
86,472,558
30,824,710
21,928,681
12,663,318
6,331,663
23,261,889,100
8,647,255,800
3,082,471,000
2,192,868,100
1,266,331,800
633,166,300
58,235,133,307
390,839,821
39,083,982,100
PT CITATAH Tbk
NOTES TO THE FINANCIAL STATEMENTS
30 September 2010 with comparative figures for 2009
(Expressed in Rupiah, unless otherwise stated)
32.
Restructuring of Troubled Debt (continued)
b.
Second Phase of Debt Restructuring (continued)
The Ministry of Law and Human Rights of the Republic of Indonesia had received
and recorded the Amendment Deed on the Company’s Articles of Association
concerning this debt to equity conversion in its Letter No.C-UM.HT.01.10-342
dated October 9, 2007. Further, the Company has received the approval for the
listing of the 390,839,821 shares of Series B with nominal value of Rp 100 per
share from the Director of the Indonesia Stock Exchange through its Letter No. S1068/BEJ-PSr/10-2007, dated October 30, 2007. The additional shares were also
recorded in Development Board dated November 5, 2007. As such, the total
shares of the Company listed in the Indonesia Stock Exchange is now
1,230,839,821 shares.
The Company has also delivered the Notification Letter No. 03/CTT/BPM/XI/07,
dated November 1, 2007, to Chairman of Capital Market and Financial Institutions
Supervisory Agency (Bapepam-LK), concerning these additional issued shares.
The U.S Dollar denominated Facility II Debts were converted using the exchange
rate of Rp 9,114 to US$ 1 which is the prevailing exchange rate at the time of
approval for the listing of the additional shares by Indonesia Stock Exchange on
October 30, 2007. The share price used to determine the number of shares to be
issued to the creditors was Rp 149. Accordingly, the Company has issued
390,839,821 Series B shares to convert its debts totaling to Rp 58,235,133,307
(amount of the loans using the agreed exchange rate of Rp 10,400 as discussed
above). The difference between the nominal value of Rp 100 per share and the
conversion share price of Rp 149 (also the fair value per share at restructuring
debt) for the 390,839,821 Series B shares totaling to Rp 19,151,151,229 was
recorded as part of “Additional paid-in capital” (Note 25). The difference between
the carrying value of the debts after restatement amounting to Rp 53,407,693,709
using the prevailing rate on October 30, 2007 (deemed date of restructuring) of Rp
9,114 and the fair value of the shares issued of Rp 58,235,133,307, amounting to
Rp 4,827,439,598 was recognized as “Loss on Restructuring of Troubled Debts”
and was presented as an “Extraordinary Item” in the 2007 statement of operations.
As of 30 September 2010, the second restructuring has not been deemed
effective because one of the creditors, PT Perusahan Pengelola Aset (Persero)
has not yet signed the Master Restructuring Agreement.
28
Contents
Page
Financial statements
Balance Sheets
1- 2
Statements of Profit and Loss
3
Statements of Changes in Equity
4
Statements of Cash Flows
5
Notes to the Financial Statements
*******************
6 - 28
FINANCIAL STATEMENTS
For the period ended 30 September 2010 and 2009
PT. CITATAH TBK
(This Financial Statements were not audited by public accountant firm)