PT XL AXIATA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Page 55
28. DERIVATIVE INSTRUMENTS
31122007 31122008
31122009 31032009
3103 2010
Derivative receivables: Forward Foreign Currency Contracts
105,584 758,286
110,246 486,245
50,125 Cross Currency Swap Contracts
20,139 200,716
18,049 227,212
- Interest Rate Swap Contracts
- -
2,010 -
- 125,723
959,002 130,305
713,457 50,125
Less: current portion -
333,324 18,049
121,489 -
125,723 625,678
112,256 591,968
50,125 Derivative payables:
Forward Foreign Currency Contracts -
- 134,501
- 129,352
Cross Currency Swap Contracts -
- 60,810
- 82,821
Interest Rate Swap Contracts -
36,828 35,440
68,508 45,700
- 36,828
230,751 68,508
257,873 Less: current portion
- -
166,272 3,011
151,062 -
36,828 64,479
65,497 106,811
The fair values on forward foreign currency contracts, cross currency swap contracts, and interest rate swap contracts have been calculated using rates quoted by the Company’s bankers to terminate the
contracts at the balance sheet date.
The net changes in fair value and settlement of derivates instruments are recorded as foreign exchange gainloss in the consolidated statements of income. For the period ended 31 March 2010,
the Company recorded foreign exchange loss amounting Rp 150,919 in the consolidated statements of income.
Other information relating to the derivative assets and liabilities as at 31 March 2010, as follows : Forward Foreign Currency Contracts
Notional Amount
Strike rate Premium
Counterparties USD
full amount Period
per annum
PT Bank DBS Indonesia 6,000,000
1 USD = Rp 12,150 - 13 April 2009 - 1 April 2010
- Rp 12,417
The Royal Bank of Scotland 5,500,000
1 USD = Rp 10,578 - 13 April 2009 - 15 July 2010
- Rp 12,265
Standard Chartered Bank 165,000,000
1 USD = Rp 9,000 - 17 July 2009 - 29 September
2.25-5.26 Rp 11,000
2015 J.P.Morgan Securities
50,000,000 1 USD = Rp 9,000
31 December 2009 - 3.45
S.E.A. Ltd. 29 September 2015
The premiums on the forward foreign currency contracts will be paid semi-annually.
PT XL AXIATA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Page 56
28. DERIVATIVE INSTRUMENTS continued
Cross Currency Swap Contracts
Hedging of the payment of the principal and interest of long-term loans in USD
Notional Exchange
amount Swap
Exchange Fixed interest
rate Interest rate
USD Period
amount period
rate paid per USD
received
Standard Chartered 65,000,000
18 April 2007- Rp 90.88 billion monthly,
9.65 - Rp 9,000 - 3 months’ SIBOR
Bank 17 December full amount
quarterly 10.98
Rp 9,940 + 1.05 margin,
2010 - Rp 198. 8 billion
1-3 months’ LIBOR full amount
+ 1 - 1.75 margin
PT DBS Bank 15,00 0,000
9 May 2007- Rp 135 billion
quarterly 8.20
Rp 9,000 3 months’ LIBOR
Indonesia 26 April 2010
full amount + 1.00 margin
J.P.Morgan 30.000.000
14 September Rp 99.3 billion monthly
10. 59 Rp 9,930
1 months’ LIBOR Securities
2009- full amount
+ 1.00 margin S.E.A. Ltd.
6 September Rp 198.6 billion
2010 full amount
Interest Rate Swap Contracts
Notional amount
Exchange Fixed interest
Fixed interest USD
Period period
rate paid rate received
Standard Chartered Bank 359.028.222
7 January 2008- quarterly and
2.323 3 months’ SIBOR
1 October 2015 semiannually
- 4.73 + 1.05 margin,
1 months’ LIBOR + 1.00 margin,
6 months’ LIBOR
29. CONTINGENCY
On 1 November and 14 December 2007, the Indonesia Business Competition Supervisory Commission “KPPU” issued decisions regarding a preliminary and a second stage continued
investigation into the Company and seven other telecommunications companies based on allegations of SMS price-fixing cartel, which is a breach of Article 5 of the Anti-Monopoly Law Law No. 51999.
In the event that the Company is found liable for SMS price-fixing, the KPPU may order the Company to pay fines up to Rp 25 billion full amount and require the Company to revise its SMS charges. In
the event that the KPPUs decision stipulates that the alleged price fixing has caused consumer loss, the Company may also be exposed to consumer class action suits. Each of these decisions could
have a material adverse effect on the Company’s business, reputation and profitability.
On 18 June 2008, KPPU in one of its decisions assessed a penalty amounting to Rp 25 billion full amount to the Company. On 9 July 2008, the Company submitted an appeal letter regarding KPPU’s
decision to South Jakarta District Court. Due to different jurisdiction domicile, the Company along with other operators, as requested by KPPU, filed an application to the Supreme Court to determine which
Court will hear the proceedings. Up to the issue date of the consolidated financial statements, the Company has not received any response from both institutions.
