PT SAMPOERNA AGRO Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Nine Months Ended September 30, 2007 and 2006
Expressed in thousands of Rupiah, unless otherwise stated
26
10. FIXED ASSETS continued
Beginning Ending
balance Addition
Deduction Reclassification Balance
Accumulated depreciation:
Buildings 17,309,261
3,354,367 1,374,665
- 19,288,963
Infrastuctures 6,247,066
1,186,717 14,165
- 7,419,618
Machineries and equipments 100,293,253 16,212,487
28,842 464,730
116,012,168 Storage tanks
5,902,803 67,606
26,738 464,730
6,408,401 Vehicle and heavy
equipments 32,911,164
3,828,446 636,996
- 36,102,614
Office equipments 4,167,064
701,008 21,680
- 4,846,392
Total 166,830,611
25,350,631 2,103,086
- 190,078,156
Net Book Value 323,333,980
307,053,322
As of September 30, 2007, detail of percentage of completion and estimation of completion dated were as follow:
Estimated Estimated
Carrying completion
of completion value
date
South Sumatera Buildings
85 - 90 6,989,124
November 2007 Machineries and equipments
70 - 90 1,306,655
December 2007 Infrastructures
70 - 80 5,394,469
December 2007 Vehicles, heavy equipments and
office equipments 1,169,386
November 2007 Central Kalimantan
Machineries and equipments 60 - 70
22,288,377 February 2008
Total 37,148,011
Starting January 1, 2004, the Company and its Subsidiaries, except Sungai Rangit, changed their depreciation method for storage tanks, vehicles and heavy equipments, and office equipments from the
double-declining balance method to the straight-line method Note 2i. The difference in balance of accumulated depreciation, computed based on the double-declining balance method and the straight-
line method, as of January 1, 2004 amounting to Rp2,144,395 was recorded as part of “Other IncomeExpenses - Others, net” in the 2004 consolidated statements of income.
PT SAMPOERNA AGRO Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Nine Months Ended September 30, 2007 and 2006
Expressed in thousands of Rupiah, unless otherwise stated
27
10. FIXED ASSETS continued
On April 30, 2003, fixed assets in the Company were revalued by PT Fiera Admiratiara, an independent appraisal, using the market value approach. The difference resulting from the revaluation of the
Company’s fixed assets of Rp26,975,746 net of the related tax effect was recorded as “Assets Revaluation Increment” under shareholders’ equity in the consolidated balance sheets.
Fixed assets from Mutiara Bunda Jaya, Telaga Hikmah, Aek Tarum and Gunung Tua Abadi were pledged as collateral for bank loans facilities Note 16.
Additions to fixed assets in 2007, included beginning balances of fixed assets from Sungai Rangit which was consolidated starting from January 1, 2007 as follows:
Cost 128,826,907
Accumulated depreciation 28,863,404
Net book value 99,963,503
Deductions in fixed assets represent the sales and write-off of fixed assets with details as follows:
2 0 0 7 2 0 0 6
Net book value 2,483,661
166,622 Selling price
918,500 -
Loss on sale and write-off of fixed assets 1,565,161
166,622
Depreciation of fixed assets and amortization of mature plantations were as follows:
2 0 0 7 2 0 0 6
Depreciation of fixed assets 36,578,219
25,350,626 Amortization of mature plantations Note 9a
25,049,901 7,022,427
Total 61,628,120
32,373,053
Depreciation of fixed assets and amortization of mature plantations were charged to the following accounts:
2 0 0 7 2 0 0 6
Cost of sales 60,717,552
31,511,500 Operating expense
910,568 861,553
Total 61,628,120
32,373,053
As of September 30, 2007 and September 30, 2006, buildings, machineries, vehicles and office equipments were covered by insurance against losses from fire and other risks under blanket policies
with insurance coverage totaling Rp501,136,716 and Rp491,178,147,respectively, which in the management’s opinion, is adequate to cover possible losses from such risk.
PT SAMPOERNA AGRO Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Nine Months Ended September 30, 2007 and 2006
Expressed in thousands of Rupiah, unless otherwise stated
28
11. SHORT TERM BANK LOAN
