INVENTORIES SMRA Interim Acc - Q2 2012 Eng

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and For the period of six months ended 30 June 2012 and 2011 unaudited Expressed in thousand of rupiah, unless otherwise stated 39 31 Decemeber 2011 Balance as of 1 January 2011 Additions Deductions Reclassificat- ions Balance as of 31 December 2011 2011 Movements Cost : Land 13,416,622 - - 2,009,430 15,426,052 Buillding and infrastructures 256,173,672 19,184,368 8,164,927 58,358,235 208,834,878 Hotel facilities 40,426,603 - - 40,426,603 - Machinery and Heavy equipment 42,712,937 6,132,767 - 33,225,809 15,619,895 Vehicles 47,598,688 17,721,507 7,834,067 - 57,486,128 Furniture and office equipment 93,185,806 46,225,116 434,621 586,721 138,389,580 493,514,328 89,263,758 16,433,615 130,587,938 435,756,533 Construction in progress 63,208,609 85,439,477 137,842 108,495,454 40,014,790 Total cost 556,722,937 174,703,235 16,571,457 239,083,392 475,771,323 Accumulated depreciation Buillding and infrastructures 73,176,886 16,910,033 5,359,558 24,572,427 60,154,934 Hotel facilities 5,987,967 - - 5,987,967 - Machinery and Heavy equipment 10,459,443 1,707,651 - 4,978,396 7,188,698 Vehicles 26,127,112 8,502,161 6,242,228 - 28,387,045 Furniture and office equipment 61,865,056 14,209,610 401,434 59,362 75,613,870 Total Accumulated depreciation 177,616,464 41,329,455 12,003,220 35,598,152 171,344,547 Net book value 379,106,473 304,426,776 Depreciation was charged to the following: 2012 2011 General and administrative expenses 22,659,063 32,745,111 Cost of sales and direct costs 807,312 8,185,688 Total depreciation 23,466,375 40,930,799 In 2011, the Company disposed certain of its fixed assets with net book value of Rp2,962,400 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and For the period of six months ended 30 June 2012 and 2011 unaudited Expressed in thousand of rupiah, unless otherwise stated 40 The details of construction in progress as of 30 June 2012 and 31 December 2011 are as follows: 30 June 2012 31 December 2011 Amount Percentage of completion Amount Percentage of completion Genset Summarecon Mal Serpong II - - 37,704,907 83,4 Scientia Digital Center 5,105,133 4 - - Others 10,010,801 - 2,309,883 - Total construction in progress 15,115,934 40,014,790 The percentages of completion of the construction in progress as of 30 June 2012 and 31 December 2011 are based on the actual expenditures incurred compared to the total budgeted project cost. Fixed assets, except land, are covered by insurance against fire, flood and other risks all-risks under blanket policies with several companies, including PT Asuransi Reliance Indonesia, PT Asuransi Central Asia, PT Asuransi Allianz Utama Indonesia, PT Asuransi Adira Dinamika and PT Asuransi Sinar Mas, all third parties, for US16,812,100 and Rp86,963,216 in 2012 and 2011, SH, a subsidiary, also covered its fixed assets by insurance against terrorism and sabotage for US14,000,000 in 2010. In addition the Company and Subsidiaries obtained insurance against business interruption for Rp4,828,000 in 2012 and 2011. The Company and Subsidiaries’ management is of the opinion that the above coverages are adequate to cover possible losses arising from such risks. As of 30 June 2012 and 31 December 2011, fixed assets with net book value of Rp60,753,284 and Rp62,633,714, respectively, are pledged as collateral for the loans from banks and financing institution Note 15. Based on the Company’s and Subsidiaries’ assessments, there were no events or changes in circumstances which indicated an impairment in the value of fixed assets as of 30 June 2012 and 31 December 2011.