PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2006 and 2005 Expressed in rupiah, unless otherwise stated
36
13. CAPITAL STOCK continued
On November 2, 2005, HC Indocement GmbH merged with HeidelbergCement South-East Asia GmbH with the latter as the surviving company. As a result of the merger, HeidelbergCement
South-East Asia GmbH became the direct shareholder of the Company.
The Company’s shares are listed on the Jakarta and Surabaya Stock Exchanges.
b. Warrants A
Warrants A were issued to the creditors of the Company in connection with the debt restructuring at a fixed exercise price of Rp3,600 per share. All of the warrants, which were issued at no cost, were
naked warrants and were listed on the Jakarta and Surabaya Stock Exchanges.
The period of exercise of Warrants A was from two 2 to four 4 years and nine 9 months after the effective date of the debt restructuring on December 29, 2000. As of September 29, 2005 the
last exercise date for Warrants A, no warrants had been exercised by the holders of Warrants A. A total of 153,382,977 Warrants A was forfeited.
14. ADDITIONAL PAID-IN CAPITAL
This account represents the excess of the amounts received andor the carrying value of converted debentures and bonds over the par value of the shares issued after offsetting all stock issuance costs.
15. OTHER PAID-IN CAPITAL
This account represents the difference between the agreed exchange rate for the conversion of the foreign currency debentures into equity and the exchange rate at the date of the transaction.
16. DIVIDENDS
At the Company’s Annual General Shareholders’ Meeting on June 28, 2006, the shareholders approved the declaration of cash dividends from 2005 net income totaling Rp184,061,584,950 or Rp50 per share.
The cash dividends were paid on August 7, 2006. Dividends amounting to Rp414,272,131 has not yet been paid as of September 30, 2006 are presented as part of “Dividend Payable” in the consolidated
balance sheets.
17. RETAINED EARNINGS
In compliance with Corporation Law No. 1 of 1995 dated March 7, 1995, which requires companies to set aside, on a gradual basis, an amount equivalent to at least 20 of their subscribed capital as
general reserve, the shareholders approved the partial appropriations of the Company’s retained earnings as general reserve during their annual general meetings held on June 28, 2006, June 16,
2005, June 23, 2004, June 26, 2003, June 24, 1997 and June 25, 1996 in the amount of Rp25 billion each.
18. SEGMENT INFORMATION BUSINESS SEGMENTS
The Company and Subsidiaries’ businesses are grouped into three major operating businesses: cement, ready mix concrete and other business.
The main activities of each operating business are as follows: Cement
: Produce and sell several types of cement Ready mix concrete
: Produce and sell ready mix concrete Other business
: Investing activity
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2006 and 2005 Expressed in rupiah, unless otherwise stated
37
18. SEGMENT INFORMATION continued
