PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED
AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated
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39. SIGNIFICANT AGREEMENTS AND COMMITMENTS continued
The details of assets, liabilities, revenues and expenses of KSO Summarecon Serpong which were proportionally consolidated to SCK’s financial statements representing 70 sharing ratio are as
follows:
Total Before Elimination As of June 30, 2013 As of December 31 and for the Years then Ended
and for the Six-Month Period then Ended
2012 2011
2010
Assets 788,841,605
854,989,047 647,254,484
657,670,569 Liabilities
788,841,605 854,989,047
647,254,484 657,670,569
Revenues 163,718,844
311,590,369 705,244,872
439,126,779 Expenses
16,145,764 28,522,034
41,939,261 48,798,983
40. DERIVATIVE INSTRUMENTS
The Company is exposed to market risks, primarily changes in currency exchange rates and interest rates, and uses derivative instruments to hedge the risks in such exposures in connection with its risk
management activities. The Company does not hold or issue derivative instruments for trading purposes.
The Company entered into a Cross Currency Interest Rate Swap CCIRS transaction with PT Bank ANZ Indonesia to hedge the Company’s US5 million debt to Resona Note 15. Under the CCIRS, the
Company purchased U.S. dollars with a principal amount of US5 million from PT Bank ANZ Indonesia on August 31, 2006 for a fixed exchange rate of Rp9,085 to US1 with a maturity date on June 30,
2011. The Company agreed to pay the rupiah principal amortization amount at the fixed exchange rate according to the scheduled dates, and simultaneously receive the fixed U.S. dollar principal
amortization amount. PT Bank ANZ Indonesia agreed to pay the Company monthly interest in U.S.dollars computed at the interest rate of 1 month COLF + 2.30 per annum in 2011 and 2010, in
exchange for the Company paying monthly interest to PT Bank ANZ Indonesia in rupiah computed at the rate of 15.35 per annum on the outstanding principal amount. The interest payment period and
U.S. dollar interest receipts matched the interest payment period and U.S. dollar interest payment of the Resona loan. The rupiah principal paid by the Company amounted to Rp5,344,124 during 2011
and Rp10,688,248 during 2010 and simultaneously received the U.S dollar principal amounting to US 588,236 during 2011 and US1,176,472 during 2010. The Company recognized the net liability
on the CCIRS contract at market value of Rp201,204, which is presented as “Derivative Liability” in the consolidated statement of financial position as of December 31, 2010. The derivative liability was fully
paid in 2011.
The CCIRS instrument was not designated as a hedge for accounting purposes and accordingly, the change in the fair value of the CCIRS was recorded as a charge to “Gain Loss on Derivative
Instrument”, which is presented in the consolidated statements of comprehensive income.
In 2010, the Company was required to provide collateral in the form of time deposits for the CCIRS transaction Note 14.
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED
AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated
118
41. LITIGATIONS
The Company and Subsidiaries are involved in several lawsuits as follows: a. GDO
Defendant vs.
Gloria Tannos
Plaintiff in
relation to
booking fee.
On December 17, 2009, the Central Jakarta District Court approved some of the Plaintiff’s claim. On December 29, 2009, the Defendant filed an appeal to the Jakarta High Court. As of August 19,
2013, no decision has been made by the Jakarta High Court.
b. CDA Defendant vs. Abdul Thalib Bin Haji Abu Bakar dkk Plaintiff. In this case, the Plaintiff claimed from 18 parties including CDA 139,250 sqm of land. On February 24, 2009, the East
Jakarta District Court decided to refuse the Plaintiff’s claim. On May 11, 2010, the Plantiff filed an appeal to the Jakarta High Court. On August 23, 2011, the Jakarta High Court affirmed the
decision of the East Jakarta District Court’s decision. Since the Plaintiff has not filed an appeal to the Supreme Court, the Jakarta High Court’s decision has permanent legal force. Then, on March
20, 2013, based on letter from the Central Jakarta District Court regarding discharge petition soil 139,230 sqm of land, the East Jakarta District Court has decided to grant the petition. On March
27, 2013, CDA has filed resistance against the East Jakarta District Court’s decision and on April 5, 2013, the East Jakarta District Court has postponed the execution. As of August 19, 2013, no
decision has been made.
c. Kiswantara Partadiredja Defendant and BMS Co-defendant II vs. Emma Hernasari Plaintiff in relation to a dispute between the Plaintiff and Defendant relating to a sale and purchase of a
property at Gading Park View. On February 4, 2009, the North Jakarta District Court approved the Plaintiff’s claim. On April 29, 2009, the Defendants filed an appeal to the Jakarta High Court. On
November 10, 2010, the Jakarta High Court rejected the Defendant’s appeal and commanded BMS to sign a sale and purchase agreement. Then, Defendant filed an appeal to the Supreme
Court through the North Jakarta District Court. On January 28, 2011, the North Jakarta District Court refused to continue the Defendants’ appeal to the Supreme Court, since the appeal did not
fulfill formal requirements.
d. The Company Defendant and Jakarta Provincial Government through the Mayor of North Jakarta Co-defendant I vs. E. Atika dkk Plaintiff concerning a claim over approximately 20,283 sqm of
land located in Pegangsaan Dua. On March 16, 2011, the North Jakarta District Court decided to refuse the Plaintiff’s claim. On March 30, 2011, the Plaintiff filed an appeal to the Jakarta High
Court. On October 3, 2012, the Jakarta High Court has decided to affirm the decision of the North Jakarta District Court. Since the Plaintiff has not filed an appeal to the Supreme Court, therefore,
the Jakarta Hight Court’s decision has permanent legal force.
e. The Company Defendant II, GDO Defendant I and the Government of the Republic of Indonesia through the Minister of Internal Affairs, Governor of DKI Jakarta and Supervision and Control of
Agency Heads of Jakarta and North Jakarta Defendant III vs. Susanto Arfiana Oen Plaintiff. In this case, the Plaintiff claimed 44 hectares of land of Grand Orchard, located in Pegangsaan Dua.
On November 24, 2011, the East Jakarta District Court decided to refuse the Plaintiff’s claim. On December 21, 2011, the Plaintiff filed an appeal to the Jakarta High Court. On June 22, 2012, the
Jakarta High Court has decided to affirm the decision of the East Jakarta District Court. On October 8, 2012, Plaintiff filed an appeal to the Supreme Court. As of August 19, 2013, no decision
has been made by the Supreme Court.
f. The Company Defendant vs. Iin Parwati Plaintiff in relation to fence installation above the Plaintiff’s ground. On November 28, 2011, the Tangerang District Court decided to refuse the
Plaintiff’s claim. On November 30, 2011, the Plaintiff filed an appeal to the Banten High Court. On May 1, 2012, the Banten High Court decided to affirm the Tangerang District Court’s decision.
Since the Plaintiff has not filed an appeal to the Supreme Court, the Banten High Court’s decision has permanent legal force.
