PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
December 31, 2011 and 2010 and For the Years then Ended
- 105 - All capital stock issued by the Company Series A and Series B shares are common stock.
The changes in capital stock of the Company are as follows:
Number of Paid-up
Shares Capital Stock
Rp 000,000 Balance as of January 1, 2010
6,180,258,195 1,316,150
Additional issuance of capital stock from the conversion of Series III warrants Note 42
1,600,804 160
Additional issuance of capital stock from the conversion of Series IV warrants Note 42
41,933,667 4,194
Balance as of December 31, 2010 6,223,792,666
1,320,504 Additional issuance of capital stock from the conversion of
Series IV warrants Note 42 8,745,391
874 Balance as of December 31, 2011
6,232,538,057 1,321,378
Capital Management
The primary objective of the Group’ capital management is to ensure that it maintains healthy capital ratios in order to support its business and maximize shareholder value as well as maintain
an optimal capital structure to reduce the cost of capital. The Group’ manage their capital structure and makes adjustment in light of changes in economic
conditions. The Group’ monitor their capital using gaering ratio debt to equity ratio, by dividing net debt to capital. The Group’s policy is to maintain the gearing ratio within the range of gearing
ratios of the other companies with similar industry in Indonesia. Net debt is calculated as total borrowings less cash and cash equivalents. Total capital is calculated as “equity” attributable to
the Company’s stockholders as shown in the consolidated statement of financial position plus net debt.
Ratio of net debt to equity as of December 31, 2011 and 2010 are as follows:
2011 2010
Rp 000,000 Rp 000,000
Total deposits and deposits from other banks 14,578,756
9,604,110 Total loans received
930,904 512,265
Cash and cash equivalents 8,523,794
1,980,945 Total - net
6,985,866 8,135,430
Equity attributable to the owners of the parent entity
9,566,925 5,060,646
The ratio of net loans and debt to equity 73.02
160.76
PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
December 31, 2011 and 2010 and For the Years then Ended
- 106 -
37. Additional Paid-in Capital - Net
This account consists of additional paid-in capital and equity stock issuance cost, the details are as follows:
2011 2010
Rp 000,000 Rp 000,000
Additional paid-in capital 811,534
808,037 Equity stock issuance cost
3,137 3,137
808,397 804,900
Additional paid-in capital consist of:
2011 2010
Rp 000,000 Rp 000,000
Initial public offering 78,000
78,000 Limited public offering I
165,750 165,750
Limited public offering III 24,783
24,783 Conversion of Series I warrants
49,372 49,372
Conversion of Series III warrants 396,353
396,353 Conversion of Series IV warrants
173,776 170,279
Conversion to capital stock 76,500
76,500 811,534
808,037
Equity stock issuance cost incurred on Limited Public Offering II, III and IV, amounted to Rp 904 million, Rp 1,060 million, and Rp 1,173 million, respectively.
The changes in additional paid-in capital account from January 1, 2010 up to December 31, 2011 are as follows:
Total Rp 000,000
Balance as of January 1, 2010 787,598
Additional paid-in capital from the conversion of Series III warrants Note 42 529
Additional paid-in capital from the conversion of Series IV warrants Note 42 16,773
Balance as of December 31, 2010 804,900
Additional paid-in capital from the conversion of Series IV warrants Note 42 3,497
Balance as of December 31, 2011 808,397
PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
December 31, 2011 and 2010 and For the Years then Ended
- 107 -
38. Other Equity Components
This account represents changes in value of investments of the Company due to changes in equity of the subsidiaries and associated companies which resulted from the change in
the Company’s ownership interest in AJSM. BS, PT Panji Ratu Jakarta and PT Super Wahana Tehno, unrealized loss on decrease in value of securities of ASM, AJSM and BS and changes in
fair values of derivative instruments of PT Oto Multiartha.
2011 2010
Rp 000,000 Rp 000,000
Unrealized gain loss on increase decrease in fair value of available for sale securities Note 5
29,237 93,723
Share in translation adjustment of a subsidiary 41
- Effects of transactions of subsidiary and
associated company with other investors 2,868,812
36,809 Changes in fair values of derivative instruments and others
9,099 9,099
Total 2,830,517
121,433 In 2010, in relation to sale of all of investment in shares of PT Certis CISCO CISCO by the
Company, the changes in ownership interest in CISCO was transferred to Gain on sale of Investment amounting to Rp 2,719 million was recognized as part of gain on sale of investment
amounted to Rp 12,718 million Note 17.
39. Difference in Value Arising from Restructuring Transactions Among Entities Under Common Control
In December 2006, the Company increased its investment in AJSM amounting to Rp 15,000 million. The increase in investment resulted to an increase in ownership interest of the Company
in AJS from 50.00 to 73.08, since the other stockholders, namely: PT Sinarindo Gerbangmas SG and PT Sinar Mas Tunggal SMT both are companies owned by Sinar Mas Group did not
increase their investments. Difference between the transfer price and book value of restructuring transactions among entities under common control amounting to Rp 46,028 million was recorded
in the account “Difference in Value Arising from Restucturing Transactions Among Entities Under Common Control” as part of equity in the consolidated financial statements.
In December 2007, the Company increased its investment in AJSM amounting to Rp 20,000 million. The increase in investment resulted to an increase in ownership interest of the Company
in AJS from 73.08 to 83.33, since SG and SMT did not increase their investments. Difference between the transfer price and book value of restructuring transactions among entities under
common control amounting to Rp 47,475 million was recorded in the account “Difference in Value Arising from Restucturing Transactions Among Entities Under Common Control” as part of equity
in the consolidated financial statements. In 2011, 2010, 2009 and 2008, the Company increased its investment in JTUM amounting to
Rp 25,000 million, Rp 15,000 million, Rp 20,000 million and Rp 8,000 million, respectively. The increase in investment resulted to an increase in ownership interest of the Company in JTUM to
99.93 in 2011, 99.90 in 2010, 99.86 in 2009, 99.67 in 2008, since the other stockholders, PT Kalibesar Raya Utama, a company owned by Sinar Mas Group, did not increase its
investment. Difference between the transfer price and book value of restructuring transactions among entities under common control amounting to Rp 1 million, Rp 1 million, Rp 7 million
and Rp 10 million, respectively, were recorded in “Difference in Value Arising from Restucturing Transactions Among Entities Under Common Control” as part of equity in the consolidated
financial statements.