These consolidated financial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003 and 2002 Expressed in rupiah, unless otherwise stated
37
11. LONG-TERM LOANS FROM BANKS AND FINANCIAL INSTITUTIONS continued
In 2003, the Company bought back portions of its restructured debt amounting to US 166,095,618 from the creditors at an average discount rate of 11.38 or US 18,904,363
equivalent to Rp 164,291,843,757 - before tax. In November 2002, the Company bought back a portion of its restructured debt amounting to
US 8,945,634 from the creditors at a discount of US 2,583,601 equivalent to Rp 23,854,388,034 - before tax.
The discounts were recognized as “Extraordinary Item” in the consolidated statements of income.
12. OBLIGATION UNDER CAPITAL LEASE
On December 23, 2003, PBI entered into a sale and leaseback agreement with PT Central Sari Finance CSF involving certain machineries and transportation equipment with lease terms of 3 years.
The future minimum lease payments required under the lease agreements as of December 31, 2003 are as follows:
Years Amount
_________________________________
2004 2,208,324,203
2005 2,033,672,750
2006 1,856,885,606
Total 6,098,882,559
Less amount applicable to interest 841,815,279
Present value of minimum lease payments 5,257,067,280
Current maturities
1,752,355,760
Long-term portion 3,504,711,520
The obligation under capital lease is secured by PBI’s time deposits amounting to Rp 5,257,067,280 which are placed in PT Bank NISP presented as part of “Restricted Cash and Time Deposits”, and
the related leased assets. Based on the lease agreements, PBI is not permitted to sell or transfer its leased assets to other parties.
The gain arising from the sale and leaseback transaction amounting to Rp 241,528,137 was charged directly to current operations, instead of amortizing it over the term of the lease, since management
considers the gain to be immaterial.
These consolidated financial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003 and 2002 Expressed in rupiah, unless otherwise stated
38
13. CAPITAL STOCK a. Share Ownership
