PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2004 and 2003 Expressed in rupiah, unless otherwise stated
35
11. LONG-TERM LOANS FROM BANKS AND FINANCIAL INSTITUTIONS continued
Any excess funds available in the escrow accounts after the above maximum annual prepayment will be used for debt buy-back.
In 2003, the Company bought-back a portion of its restructured debt amounting to US 83,667,022 from the creditors at an average discount rate of 16.26 or US 13,606,769
equivalent to Rp 119,233,179,739 - before tax. Such discount was recognized as income and presented as an “Extraordinary Item” in the consolidated statement of income for the nine months
ended September 30, 2003.
12. OBLIGATION UNDER CAPITAL LEASE
On December 23, 2003 and August 23, 2004, 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 September 30, 2004 are as follows:
Years Amount
___________________________________
2004 1,066,347,007
2005 2,231,367,249
2006 2,162,919,483
Total 5,460,633,739
Less amount applicable to interest 600,744,339
Present value of minimum lease payments 4,859,889,400
Current maturities 2,350,111,368
Long-term portion 2,509,778,032
The obligation under capital lease is secured by PBI’s time deposits amounting to Rp 5,736,067,280 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.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2004 and 2003 Expressed in rupiah, unless otherwise stated
36
13. CAPITAL STOCK a. Share Ownership
The details of share ownership based on records maintained by the shares registrar as of September 30, 2004 and 2003 are as follows:
2004
__________________________________________________________________________________________________________________
Number of Shares Percentage
Issued and of
Shareholders Fully Paid
Ownership Amount
HC Indocement GMBH, Germany 2,397,980,863
65.14 1,198,990,431,500 PT Mekar Perkasa
479,735,234 13.03
239,867,617,000 Public and cooperatives
803,515,602 21.83
401,757,801,000
Total 3,681,231,699
100.00 1,840,615,849,500
2003
Number of Shares Percentage
Issued and of
Shareholders Fully Paid
Ownership Amount
Kimmeridge Enterprise Pte., Ltd., Singapore 2,254,739,197
61.25 1,127,369,598,500
Government of the Republic of Indonesia 621,128,380
16.87 310,564,190,000
PT Mekar Perkasa 479,735,734
13.03 239,867,867,000
Public and cooperatives 325,628,388
8.85 162,814,194,000
Total 3,681,231,699
100.00 1,840,615,849,500
On November 20, 2003, the Company received a copy of a letter from HC Indocement GMBH to the Chairman of the Badan Pengawas Pasar Modal Bapepam regarding the transfer of
2,254,739,197 shares of the Company from Kimmeridge Enterprise Pte., Ltd., to HC Indocement GMBH.
On December 1, 2003, the Company received a copy of a letter from HC Indocement GMBH to the Chairman of the Bapepam which states that HC Indocement GMBH has purchased
143,241,666 shares from the Government of the Republic Indonesia GOI through the exercise of the put option of GOI on October 30, 2003. After this acquisition, the number of shares owned by
HC Indocement GMBH totaled 2,397,980,863 shares.
The Company’s shares are listed on the Jakarta and Surabaya Stock Exchanges.
b. Warrants A and Warrants C
As of September 30, 2004, the Company has 153,382,977 Warrants A issued and outstanding. Warrants A were issued to the creditors of the Company in connection with the debt restructuring
at a fixed realization price of Rp 3,600 per share, while Warrants C were issued to the shareholders who did not exercise their pre-emptive rights during the rights issue process in 2001.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2004 and 2003 Expressed in rupiah, unless otherwise stated
37
13. CAPITAL STOCK continued b. Warrants A and Warrants C continued
The period of realization of Warrants A shall be from two 2 to four 4 years and nine 9 months after the effective date of the debt restructuring which was on December 29, 2000, while
Warrants C have a two-year exercise period starting from May 1, 2001 with an exercise price of Rp 1,200 per share for the first year and Rp 1,400 for the second year.
As of May 1, 2003 the last exercise date for Warrants C, 8,180 shares were subscribed by the holders of Warrants C at Rp 1,400 per share. A total of 698,836,302 Warrants C was forfeited.
All of the above warrants, which are issued at no cost, are naked warrants and listed on the Jakarta and Surabaya Stock Exchanges.
14. ADDITIONAL PAID-IN CAPITAL
This account represents the excess of the amounts received andor the carrying value of converted debentures and bonds over the par value of the shares issued after offsetting all the expenses related
to the issuance of equity securities.
15. OTHER PAID-IN CAPITAL
