PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Three Months ended March 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
19
6. INVENTORIES continued
The inventories are used as collateral for the long-term loans from banks and financial institutions see Note 11.
The movements of allowance for inventory losses are as follows:
2005 2004
Balance at beginning of period 44,075,191,481
40,063,072,423 Provisions during the period
- -
Obsolete inventory sold during the period -
- Inventories written off during the period
- -
Balance at end of period 44,075,191,481
40,063,072,423
Management believes that the above allowance for inventory losses is sufficient to reduce the carrying amounts of inventories to their net realizable values.
The Company made advance payments to several foreign suppliers for the purchase of certain inventories. The outstanding balances of the purchase advances as of March 31, 2005 and 2004
amounting to Rp34,382,932,432 and Rp33,156,449,139, respectively, are presented as part of “Advances and Deposits” in the consolidated balance sheets.
7. LONG-TERM INVESTMENTS AND ADVANCES TO ASSOCIATED COMPANY
This account consists of long-term investments and advances to an associated companies. The details of this account are as follows:
2005
Accumulated Percentage
Equity in Net of
Earnings Ownership
Cost Losses - Net
Carrying Value Investments in Shares of Stock
a. Equity Method PT Cibinong Center Industrial
Estate 50.00
36,624,000,000 15,850,424,190
20,773,575,810 Stillwater Shipping Corporation
50.00 105,500,000
15,924,682,300 16,030,182,300
PT Pama Indo Mining 40.00
1,200,000,000 7,148,078,359
8,348,078,359 PT Indo Clean Set Cement
90.00 464,787,500
464,787,500 -
b. Cost Method Various investees
various 20,000,000
- 20,000,000
Sub-total 38,414,287,500
6,757,548,969 45,171,836,469
Advances PT Indo Clean Set Cement
13,720,944,026 Allowance for doubtful accounts
13,720,944,026 Net advances
-
Total 45,171,836,469
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Three Months ended March 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
20
7. LONG-TERM INVESTMENTS AND ADVANCES TO ASSOCIATED COMPANIES continued
