PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated
94
26. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES
a. Commitment and contingent transactions in the normal course of Bank Mandiri activities that have credit risk are as follows:
December 31, April 30, December 31,
2003 2003
2002
Rupiah: Outstanding irrevocable letters of credit Note 46
959,364 393,314
895,933 Bank guarantees issued Notes 46 and 48
2,508,293 2,042,590 2,227,633 Standby letters of credit Notes 46 and 48
30,000 30,000
30,000 Others
- 963
- 3,497,657
2,466,867 3,153,566 Foreign Currency:
Outstanding irrevocable letters of credit Note 46 4,213,145 4,849,354 5,475,295
Bank guarantees issued Notes 46 and 48 2,655,835 2,647,886 2,658,783
Standby letters of credit Notes 46 and 48 2,733,672 2,334,538 3,205,189
9,602,652 9,831,778
11,339,267 13,100,309
12,298,645 14,492,833
b. By Collectibility:
December 31, April 30, December 31,
2003 2003
2002
Current 12,619,060
11,003,957 13,671,409 Special mention
375,113 1,262,938
780,360 Sub-standard
50,008 -
1,064 Doubtful
25,391 1,150
10,000 Loss
30,737 30,600
30,000 Total
13,100,309 12,298,645
14,492,833 Less: Allowance for possible losses
572,267 1,488,315
1,211,211
Net commitments and contingencies 12,528,042 10,810,330 13,281,622
c. Movements of estimated losses on commitments and contingencies:
For the 8-month For the 4-month For the year Period
ended period
ended ended
December 31, April 30,
December 31, 2003
2003 2002
Balance at beginning of period 1,488,315
1,211,211 5,284,345 Reversalprovision during the period 846,430
205,317 3,364,433 Others
69,618 71,787
708,701
Balance at end of period 572,267
1,488,315 1,211,211
Includes foreign currency translation effect.
The minimum estimated losses on commitments and contingencies, under the guidelines prescribed by Bank Indonesia, as of December 31, 2003, April 30, 2003 and December 31, 2002 is
Rp377,308, Rp1,253,383 and Rp993,468, respectively.
Management believes that the estimated losses on commitments and contingencies is adequate.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated
95
27. TAXATION a. Taxes payable
December 31, April 30, December 31,
2003 2003
2002
Bank Mandiri
Income Taxes:
Employee income tax - Article 21 43,844
37,281 35,432
Withholding tax - Article 2326 120,778
174,997 214,937
Corporate income tax - Article 2529 423,146
865,398 -
Land and building tax 1
123 79
Others 205
2,816 36,304
587,974 1,080,615
286,752 Subsidiaries
13,330 10,394
9,197 601,304
1,091,009 295,949
b. Corporate income tax expense
For the
For the 8-month For the 4-month
year ended period ended
period ended December 31,
December 31, 2003 April 30, 2003
2002
Corporate income tax expense - current: Bank Mandiri only
1,314,142 865,399
- Subsidiaries
5,795 3,541
824 1,319,937
868,940 824
Corporate income tax benefitexpense - deferred: Bank Mandiri only
586,199 328,490
2,187,484 Subsidiaries
338 790
35,445 585,861
329,280 2,222,929
1,905,798 539,660
2,223,753
As discussed in Note 2w, corporate income tax for Bank Mandiri and its Subsidiaries is computed for each company as a separate legal entity consolidation is not permitted for corporate income tax filing
purposes.
c. Corporate income tax expense - current
The reconciliation between profit before corporate income tax as shown in the consolidated statements of profit and loss and income tax computations and the related current income tax
expense for Bank Mandiri and its Subsidiaries is as follows:
For the
For the 8-month For the 4-month
year ended period ended
period ended December 31,
December 31, 2003 April 30, 2003
2002
Consolidated profit before estimated corporate income tax expense and minority interests
5,134,607 1,896,917
5,809,970 Profit before corporate income tax of Subsidiaries
after elimination 5,692
2,494 36,897
Profit before corporate income tax expense and minority interests - Bank Mandiri only
5,128,915 1,894,423
5,773,073 Adddeduct permanent differences:
Non-deductible expensesnon-taxable income 359,792
51,947 141,205
Non-deductible write-offs of loansnon-taxable adjustment of provision for loan losses
996,939 -
6,292,921 Non-taxable adjustment of provisionnon-deductible provision
for losses on earning assets other than loans 167,027
33,957 181,188
Non-deductible provisionnon-taxable adjustment of provision for estimated losses on commitments and contingencies
38,589 102,083
423,723
