PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated
PT Super Wahana Tehno SWT On June 17, 2013, the Company has sold all its shares of stock in PT Super Wahana
Tehno, for a selling price of Rp 15,048, accordingly, the Company realized a gain on sale of investment amounting to Rp 4,427.
b. Subsidiaries’ investments in shares of stock
2014 2013
Equity Method
PT Bintang Rajawali Perkasa 176,027
100,281 PT Asuransi Sumit Oto
65,401 57,948
PT LIG Insurance Indonesia 44,514
29,266 Subtotal
285,942 187,495
Available for sale - acquisition cost
Aries Capital Partner II 43,548
43,548 PT Bursa Komoditi dan Derivatif Indonesia
7,000 8,000
PT Kustodian Sentral Efek Indonesia 6,600
6,600 PT Pemeringkat Efek Indonesia
3,500 350
Nanjing Sinar Mas Zi Jin Private Equity 3,214
3,214 Konsorsium Asuransi Risiko Khusus -
PT Tugu Reasuransi Indonesia 3,000
3,000 PT Asuransi MAIPARK Indonesia
1,832 1,805
Fair Oil Energy Insurance Syndicate 455
455 Nanjing Zidong International Creative Park Private Equity
161 161
PT Damai Indah Padang Golf 140
140 PT Bursa Efek Indonesia
135 135
PT Sedana Golf 101
101 PT Menara Proteksi Indonesia
20 20
Subtotal 69,706
67,529
Fair value - temporary investment
PT Artha Pilar Perkasa 173,800
- Total
529,448 255,024
Equity Method PT LIG Insurance Indonesia
PT LIG Insurance Indonesia LIG is a joint venture with LG Korea. ASM has 30 ownership interest in LIG.
PT Asuransi Summit Oto PT Asuransi Summit Oto ASO is a joint venture with Djohan Marzuki and PT Summit
Investment Indonesia. Ownership ASM on ASO was 48. Available for Sale – Acquisition Cost
In 2013, NSZ made investment in shares of Nanjing Sinar Mas ZiJin Private Equity and Nanjing Zidong International Creative Park Private Equity amounting to CNY 2,000,000
equivalent with Rp 3,214 and CNY 100,000 equivalent with Rp 161, or representing 1.04 and 1, respectively, and NSZ as investment manager.
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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated
Fair Value – Temporary Investment
In 2014, BS, subsidiary and the shareholder of PT Teknology Energy Terpadu TET, BS’ debtor, signed a Sale and Purchase Agreement which is documented in Notarial Deeds
No. 24 and 26 dated November 7, 2014, of Yulia S.H., public notary in Jakarta, in relation to sale of 600 shares 100 of PT Artha Pilar Perkasa APP engaging in trading, service,
constructing and industry business which are owned by the shareholders of TET. The aforementioned sale is in relation to the restructuring of BS’s receivable from TET. The said
sale of shares has been approved in Extraordinary Stockholders’ Meeting of APP which was held on February 28, 2015.
BS recognized the purchase of APP’s shares as Temporary Investment. In accordance with Bank Indonesia Regulation No. 1511PBI2013 on the Precautionary Principle Capital
Investment Activity, BS did not consolidate the financial statements of APP with BS’ financial statements, because the investment is temporary and has a different type of
business with the Company. This temporary investment in APP will be disposed through sale. Management believes that
this temporary investment can be sold in the near future.
18. Investment Properties As of December 31, 2014 and 2013, these represent investments in land and building.
Following are the balances of and changes in investment properties and the related accumulated depreciation:
January 1, December 31,
2014 Additions
Deductions 2014
At Cost
Land 4,778
12,338 -
17,116 Building
223,182 3,315
- 226,497
227,960 15,653
- 243,613
Accumulated Depreciation
Building 32,330
12,460 -
44,790
Net Book Value 195,630
198,823 Changes during 2014
January 1, December 31,
2013 Additions
Deductions Acquisition
2013
At Cost
Land 4,400
378 -
- 4,778
Building 11,724
8,036 517
203,939 223,182
16,124 8,414
517 203,939
227,960
Accumulated Depreciation
Building 5,827
4,463 414
22,454 32,330
Net Book Value 10,297
195,630 Changes during 2013
Depreciation charged to operations for the years ended December 31, 2014 and 2013 amounted to Rp 12,460 and Rp 4,463, respectively.
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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated
As of December 31, 2014 and 2013, the fair value of investment property of ASM, subsidiary, amounted to Rp 23,093 and Rp 22,664 based on independent appraisal report of Ihot, Dolar
Raymond dated February 9, 2015 and February 10, 2014, respectively. Deductions in investment property pertain to the sale of certain investment properties with details
as follows:
2013 Selling price
2,000 Carrying value
103 Gain on sale of investment properties Note 42
1,897
Investment properties are insured with ASM, a subsidiary and other insurance companies, third parties, for Rp 352,800 and US 1,051,545 in 2014 and Rp 352,800 and US 1,237,112 in 2013.
Management believes that the insurance coverages are adequate to cover any possible losses that might arise from the assets insured.
Management believes that there is no impairment in value of the aforementioned assets as of December 31, 2014 and 2013.
19. Property and Equipment
January 1, December 31,
2014 Additions
Deductions Reclassifications
2014
At cost Direct acquisitions
Land 381,978
63,898 -
47,264 493,140
Buildings 1,036,621
68,204 -
17,438 1,122,263
Office equipment 832,257
121,088 8,185
- 945,160
Motor vehicles 246,037
17,022 12,199
- 250,860
Furniture and fixtures 48,178
22,879 177
- 70,880
Machineries and equipment 55,570
2,576 44,548
- 13,598
Construction in progress 573,197
313,663 -
64,702 822,158
Total 3,173,838
609,330 65,109
- 3,718,059
Accumulated depreciation Direct acquisitions
Buildings 178,249
55,018 -
- 233,267
Office equipment 380,879
108,771 7,980
- 481,670
Motor vehicles 133,499
29,730 8,468
- 154,761
Furniture and fixtures 29,903
8,671 164
- 38,410
Machineries and equipment 35,015
5,395 32,905
- 7,505
Total 757,545
207,585 49,517
- 915,613
Net Book Value 2,416,293
2,802,446 Changes during 2014
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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated
January 1, December 31,
2013 Additions
Deductions Acquisition
Reclassifications 2013
At cost Direct acquisitions
Land 322,037
61,798 1,857
- -
381,978 Buildings
782,427 224,330
357 -
30,221 1,036,621
Office equipment 690,625
150,567 9,859
924 -
832,257 Motor vehicles
238,153 16,551
8,667 -
- 246,037
Furniture and fixtures 36,115
11,167 38
934 -
48,178 Machineries and equipment
41,693 14,174
297 -
- 55,570
Construction in progress 310,471
292,947 -
- 30,221
573,197 Total
2,421,521 771,534
21,075 1,858
- 3,173,838
Accumulated depreciation Direct acquisitions
Buildings 133,670
44,579 -
- -
178,249 Office equipment
285,609 103,922
8,876 224
- 380,879
Motor vehicles 107,880
31,580 5,961
- -
133,499 Furniture and fixtures
21,862 7,813
32 260
- 29,903
Machineries and equipment 27,995
7,210 190
- -
35,015 Total
577,016 195,104
15,059 484
- 757,545
Net Book Value 1,844,505
2,416,293 The carrying values of property and equipment of RLS, acquisition subsidiary Note 1
Changes during 2013
Depreciation charged to operations in 2014 and 2013 amounted to Rp 207,585 and Rp 195,104, respectively.
Depreciation which were included in other expenses - direct cost of service center in 2014 and 2013 amounted to Rp 1,741 and Rp 1,863, respectively Note 46.
As of December 31, 2014, construction in progress represent building construction in Jakarta, Pekalongan, Bengkulu, Yogyakarta, Garut, Bojonegoro, NTT Ende Kaliurang, Pekanbaru,
Klaten, Cilacap, Purwakarta, Merauke, Jombang, Nusa Tenggara Barat and Bandung with contract value of Rp 106,941 and USD 89,815,000 and estimated date of completion is in
2015-2016, with contractual commitment amounts of Rp 50,655 and USD 18,865,441. Deductions in property and equipment pertain to the sale of certain property and equipment with
details as follows:
2014 2013
Selling price 16,444
8,109 Net book value
15,592 6,016
Gain on sale of property and equipment Note 42 852
2,093
Property and equipment are insured with ASM, a subsidiary, and other insurance companies amounting to Rp 2,020,149 and USD 2,872,920 as of December 31, 2014 and Rp 1,893,724 and
USD 3,072,920 as of December 31, 2013. Management believes that the insurance coverages are adequate to cover any possible losses that might arise from the assets insured.
Management believes that there is no impairment in value of the aforementioned assets as of December 31, 2014 and 2013.
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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated
20. Foreclosed Properties
Foreclosed properties were obtained by SMF and BS, subsidiaries, from settlement of their receivables from and loans to customers.
2014 2013
Land, houses, and apartments 104,022
75,564 Vehicles
29,434 27,925
Heavy equipment 12,460
12,504 Others
375 -
Total 146,291
115,993 Allowance for impairment losses
3,477 3,227
Net 142,814
112,766
These foreclosed properties are not insured. At this point in time, SMF and BS are still in the process of selling the foreclosed properties, i.e.
by cooperating with property agents to sell the land, houses and apartment units. The changes is allowance for impairment losses on foreclosed properties are as follows:
2014 2013
Balance at the beginning of the year 3,227
1,664 Provisions during the year
250 1,563
Balance at the end of the year 3,477
3,227
As of December 31, 2014 and 2013, management believes that the allowance for impairment losses is adequate to cover the possible losses which might arise from the decline in values of
the foreclosed properties. 21. Other Assets
2014 2013
Prepaid expenses 405,569
302,805 Advanced payment for purchase of
property and equipment 234,714
274,400 Deferred acquisition cost
175,600 33,155
Inventories 56,003
26,882 Advanced payment for buildings renovation
33,326 37,188
Security deposits 33,264
25,940 Prepaid taxes
21,028 16,711
Goodwill 6,852
6,852 Advances for investment
500 500
Others 43,368
52,639 Total
1,010,224 777,072
Prepaid expenses include prepayments of office rental, shares administration charges, stamp duties and insurance premiums.
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