PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 558
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013
Expressed in thousands of US Dollars, unless otherwise stated
36. TAXATION continued
g. Tax assessment letters
On 22 September 2010, SIS had received an Advance Refund for corporate income tax-fiscal year 2009 amounting to Rp65,217 million equivalent to US5,997 from a total overpayment of Rp95,878 million equivalent to US8,782.
On 11 December 2013, the DGT issued a Tax Assessment Letter for the relevant corporate income tax. Based on such letter, SIS’s overpayment had been adjusted by US101, resulting in a revised total overpayment amounting to
US8,681. The difference between the adjusted total overpayment and the Advance Refund had been fully refunded in January 2014; and at the same time, SIS filed an objection regarding the adjustment. Based on the DGT’s decision
No. KEP-158WPJ.192015 dated 23 January 2015, SIS objection has been approved and the remaining tax overpayment amounting to US101 has been fully received on 23 February 2015.
On 26 April 2013, the DGT issued a Tax Assessment Letter for the corporate income tax-fiscal year 2011. Based on such letter, the DGT had agreed to SIS’s overpayment amounting to Rp80,720 million equivalent to US8,311 and
reduced US10,476 from SIS’s carried forward fiscal loss for the relevant fiscal year. The overpayment had been fully refunded by the DGT in May 2013. SIS had filed an objection to the DGT’s adjustment on the carried forward fiscal
loss which had been rejected by the DGT on 25 July 2014. SIS had filed an appeal with the Tax Court regarding this adjustment on 17 September 2014. Until the issuance of these consolidated financial statements, there had been no
decision made on the appeal. On 29 April 2014, the DGT issued a Tax Assessment Letter for the corporate income tax-fiscal year 2012. Based on
such letter, the DGT had agreed to SIS’s overpayment amounting to Rp152,378 million equivalent to US13,333 and reduced US4,910 from SIS’s carried forward fiscal loss for the relevant fiscal year. The overpayment was fully
refunded by the DGT in May 2014. SIS had filed an objection to the DGT’s adjustment on the carried forward fiscal loss in July 2014. Up to the issuance date of these consolidated financial statements, there had been no decision made
on the objection.
As at the date of these consolidated financial statements, Adaro was being audited by Directorate General of Customs and Excise for customs for fiscal years 2010-2013 and the DGT for all taxes for the fiscal year 2013. DJP is also
auditing SIS for corporate income tax for the fiscal year 2013, PBMM for VAT for fiscal year 2013, Biscayne for VAT for fiscal years 2010-2013, IBT for VAT for fiscal year 2013, AP, AEI, ATA, DSM, JPI, PBMM, MSW and IBT for
corporate income tax for the fiscal year 2013. Adaro, SIS, Biscayne, AP, AEI, ATA, DSM, JPI, PBMM, MSW and IBT have not yet received the tax audit results. Management is of the opinion that the tax audit results will not have a
material impact on the Group’s consolidated financial statements.
37.
TRANSACTIONS AND BALANCES WITH RELATED PARTIES
a. Nature of relationships
Related parties Nature of relationship
PT Servo Meda Sejahtera Associate
PT Pulau Seroja Jaya Affiliate
PT Rahman Abdijaya Affiliate
In February 2014, SMS has been sold Note 13
b. Transaction details
In the normal course of business, the Group engages in transactions with related parties, primarily consisting of purchases of services and other financial transactions. Refer to Notes 1 and 13 for details of the Company’s subsidiaries and
associates.
210
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 559
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013
Expressed in thousands of US Dollars, unless otherwise stated
37. TRANSACTIONS AND BALANCES WITH RELATED PARTIES continued
b. Transaction details continued
Loan to a related party
2014 2013
PT Servo Meda Sejahtera -
40,233 Persentase terhadap total aset
- 0.60
In February 2014, ATA has received full repayment of all outstanding loan receivables from SMS. Trade payables
2014 2013
Mining services: PT Rahman Abdijaya
14,371 4,222
Coal barging services: PT Pulau Seroja Jaya
2,849 6,003
Total 17,220
10,225 As a percentage of total liabilites
0.55 0.29
Cost of revenue
2014 2013
Mining services: PT Rahman Abdijaya
77,106 74,197
Coal barging services: PT Pulau Seroja Jaya
36,405 38,350
Total 113,511
112,547 As a percentage of cost of revenue
4.36 4.43
As restated refer to Note 3
The Group’s pricing policy related to transactions with related parties is set based on contracted prices.
c. Key management compensation
The Boards of Commissioners and Directors of the Group are considered key management personnel. Remuneration for the Boards of Commissioners and Directors of the Group for the years ended 31 December 2014 and
2013, was as follows:
2014 2013
Remuneration 20,139
19,145 Post employment benefits
1,746 1,246
Total
21,885 20,391
The Boards of Commissioners and Directors do not receive any other benefits such as management stock options.
211
AdARo ENERgy 2014 ANNuAl REPoRT
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 560
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013
Expressed in thousands of US Dollars, unless otherwise stated
38. EARNINGS PER SHARE
2014 2013
Consolidated profit for the year attributable to the owners of the parent 178,162
233,965 Weighted average number of ordinary shares outstanding
in thousands of shares 31,985,962
31,985,962
Basic earnings per share attributable to the owners of the parent full amount
0.00557 0.00731
Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share in thousands of shares
31,985,962 31,985,962
Adjustments for calculation of diluted earnings per share in thousands of shares: Share options Note 42u
2,381,730 2,381,730
Weighted average number of ordinary shares used as the denominator in calculating diluted earnings per share in thousands of shares
34,367,692 34,367,692
Diluted earnings per share attributable to the owners of the parent full amount
0.00518 0.00681
As restated refer to Note 3
39. NET MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
As at 31 December 2014 and 2013, the Group had monetary assets and liabilities denominated in currencies other than US Dollars as follows:
31 December 2014 Foreign currency
full amount Equivalent US
Monetary assets
Cash and cash equivalents Rp
2,071,844,394,483 166,547
S 736,627
558 €
502,962 612
Trade receivables Rp
1,292,785,096,092 103,922
Prepaid taxes Rp
649,373,972,847 52,200
Total monetary assets 323,839
Monetary liabilities Trade payables
Rp 805,405,066,156
64,743 S
153,164 116
€ 331,465
403 ¥
1,494,241 13
A 719,676
591 Accrued expenses
Rp 60,290,480,242
4,847 €
4,655,717 5,664
A 13,335
11 Taxes payable
Rp 140,704,327,150
11,311 Retirement benefits obligation
Rp 597,184,032,227
48,005 Provision for mine reclamation
Rp 58,340,871,535
4,690 Total monetary liabilities
140,394
Net foreign currency monetary assets 183,445
212
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 561
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013
Expressed in thousands of US Dollars, unless otherwise stated
39. NET MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued
31 December 2013 Foreign currency
full amount Equivalent US
Monetary assets
Cash and cash equivalents Rp
1,185,314,954,642 97,245
S 1,146,340
905 €
276,571 382
Trade receivables Rp
1,079,678,287,899 88,575
Prepaid taxes Rp
518,118,643,168 42,507
Loan to a related party Rp
490,397,746,859 40,233
Total monetary assets 269,847
Monetary liabilities
Trade payables Rp
531,221,141,553 43,582
S 64,243
51 €
391,794 541
¥ 365,721
3 A
678,503 605
£ 18,210
30 Accrued expenses
Rp 61,108,587,521
5,013 €
4,655,472 6,425
A 42,264
38 Taxes payable
Rp 118,928,821,158
9,757 Retirement benefits obligation
Rp 440,126,248,849
35,380 Provision for mine reclamation
Rp 52,417,631,672
4,300 105,725
Total monetary liabilities
Net foreign currency monetary assets 164,122
Monetary assets and liabilities mentioned above are translated using the Bank Indonesia closing rate as at 31 December 2014 and 2013.
If assets and liabilities in currencies other than US Dollars as at 31 December 2014 are translated using the exchange rate as at the date of the consolidated statement of financial position, the total net monetary assets will decrease by approximately
US5,828.
40. NON-CASH TRANSACTIONS
2014 2013
Non-cash activities: Acquisition of assets under finance leases
66,465 20,345
Addition of fixed assets through capitalisation of depreciation expenses 1,090
435 Addition of mining properties through capitalisation of depreciation expenses
142 355
Addition of investment in associates through conversion of advance for investments -
5,413
213
AdARo ENERgy 2014 ANNuAl REPoRT
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 562
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013
Expressed in thousands of US Dollars, unless otherwise stated
41. OPERATING SEGMENTS
Management has determined the operating segments based on reports reviewed by the Board of Directors, which has been identified as the Group’s chief operating decision maker, which makes strategic decisions.
The Board of Directors considers the business operation by business type perspective, which comprises coal mining and trading, mining services, logistics and others power plant, asset management, etc..
The segment information provided to the Board of Directors for the reportable segments for the years ended 31 December 2014 and 2013, is as follows:
For the year ended 31 December 2014 Coal mining
Mining and trading
services Logistics Others Eliminations Consolidated
External revenue 3,102,126
139,076 38,565
45,677 -
3,325,444 Inter-segment revenue
10,687 347,962
157,159 58,064
573,872 -
Revenue 3,112,813
487,038 195,724
103,741 573,872
3,325,444 Cost of revenue
2,519,263 434,494
107,940 40,795
497,048 2,605,444
Selling and marketing expense
45,144 -
- 1
- 45,145
General and administrative expense
44,005 20,449
12,104 42,054
4,023 114,589
Finance costs 168,995
15,942 6,665
28,660 30,545
189,717 Finance income
44,584 3,389
3,558 8,014
34,285 25,260
Income tax expense 151,772
2,723 5,652
13,459 31,786
141,820 Profit for the year
200,152 24,378
63,824 14,170
118,984 183,540
Depreciation and amortisation 115,909
82,840 20,958
8,864 87,807
316,378
31 December 2014
Segment assets 2,865,760
828,522 447,258
924,722 1,347,386
6,413,648 Segment liabilities
2,279,465 415,141
183,988 1,311,613 1,034,707
3,155,500
214
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 563
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013
Expressed in thousands of US Dollars, unless otherwise stated
41. OPERATING SEGMENTS continued
For the year ended 31 December 2013 Coal mining
Mining and trading
services Logistics Others Eliminations Consolidated
External revenue 3,069,303
147,748 38,202
29,889 -
3,285,142 Inter-segment revenue
3,562 261,273
125,275 55,997
446,107 -
Revenue 3,072,865
409,021 163,477
85,886 446,107
3,285,142 Cost of revenue
2,421,026 361,331
93,550 32,458
367,381 2,540,984
Selling and marketing expense
42,267 -
- -
- 42,267
General and administration expense
50,180 36,886
8,380 39,887
4,511 130,822
Finance costs 113,479
15,605 7,607
24,224 44,333
116,582 Finance income
31,984 975
743 14,315
31,878 16,139
Income tax benefitexpense 196,931
4,884 5,115
8,230 13,133
192,259 Profitloss for the year
249,000 17,029
47,217 25,267
21,924 231,997
Depreciation and amortisation 105,267
85,918 16,347
6,354 74,205
288,091
31 December 2013
Segment assets 3,135,442
794,379 384,178
500,023 1,881,929
6,695,951 Segment liabilities
2,572,422 408,511
183,904 1,426,002 1,069,081
3,521,758
As restated refer to Note 3
Sales by destination is as follows:
2014 2013
Domestic 876,714
831,710 Export
- India 478,742
519,657 - Japan
351,352 384,682
- Korea 300,790
350,078 - China
304,696 278,025
- Others 1,013,150
920,990 Total
3,325,444 3,285,142
Sales between segments are carried out at contracted prices. The revenue from external parties reported to the Board of Directors is measured in a manner consistent with that in profit or loss.
The amounts provided to the Board of Directors with respect to total assets and liabilities are measured in a manner consistent with that of the consolidated statements of financial position.
215
AdARo ENERgy 2014 ANNuAl REPoRT
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 564
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013
Expressed in thousands of US Dollars, unless otherwise stated
42. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES
a. Coal mining, hauling, barging, transhipment and other related agreements