15 in Rupiah
Description As of December 31, 2016
The Company Income Tax
Article 4 2 37,772,400
Article 15 32,996,923
Article 21 200,201,642
Article 22 37,714,275
Article 23 96,795,164
Article 29 of 2016 20,765,451,078
Sub-total 21,170,931,482
Subsidiary Value Added Tax
2,107,191,979 Income Tax
Article 4 2 53,182,936
Article 15 18,207,666
Article 21 46,943,458
Article 22 39,566,409
Article 23 331,309,261
Article 25 325,531,399
Article 29 of 2016 19,138,174,147
Article 29 of 2015 231,816,750
Sub-total 22,291,924,005
Total 43,462,855,487
d. Advance from Customers
As of December 31, 2016, the outstanding balance of the Company’s advance from customers was Rp72,604,179,566. The breakdown of the Company’s advance from customers as of December 31, 2016
is as follows:
in Rupiah
Description As of December 31, 2016
Third Parties
PT Karya Cipta Sukses Anugerah 7,008,142,782
PT Karya Cipta Sukses Selaras 3,941,889,521
PT Pakuwon Permai 2,998,550,728
Condor Manufacturing Furniture Ltd. 2,814,789,465
Casana Furniture Corporation 2,339,294,100
Broyhill Furniture Industries, Inc. 1,465,100,000
Others each below Rp1 billion 4,225,050,592
Total 24,792,817,188
2. Non-Current Liabilities a. Long-Term Bank and Non-Bank Financial Institution Loans
in Rupiah
Description As of December 31, 2016
The Company Third Parties
Exim Transactional export working capital credit facility
54,000,000,000 Export investment credit facility IV
27,747,548,069 PT BCA Finance
894,179,470 PT Orix Indonesia Finance
163,960,968
Sub-total 82,805,688,507
16
Description As of December 31, 2016
Subsidiaries Third Parties
PT Bank Negara Indonesia Persero Tbk 98,933,333,331
PT BCA Finance 4,230,106,575
PT Equity Finance Indonesia 949,424,587
PT Astra Sedaya Finance 188,180,895
PT Chandra Sakti Utama Leasing 187,301,569
Sub-total 104,488,346,957
Total 187,294,035,464
Current Maturities 26,475,634,258
Long-term portion 160,818,401,206
The Company
In November 2015, the Company obtained a transactional export working capital credit facility and an export investment credit facility IV of up to Rp54,000,000,000 and Rp46,000,000,000, respectively.
These facilities will be due in November 2019.
In 2016, these facilities bore interest rates of 6.6 per annum for loan denominated in USD, and 10.0 per annum for loan denominated in Rupiah. The facilities are collateralized with certain of the Company’s
fixed assets, trade receivables, inventories, as well as personal guarantees from certain Directors.
From 2014 to 2016, the Company entered into agreements for the ownership of a vehicle with PT BCA Finance which was payable in monthly installments from 2017 to 2019. This facility bore an interest rate
of 2.4 to 5.7 per annum in 2016.
In 2016, the Company entered into a loan agreement for a vehicle with PT Orix Indonesia Finance which was payable in monthly installments until 2019. This facility bears a interest rate of 7.4 per annum.
Subsidiaries
In 2015, Interkraft obtained an investment credit facility from BNI of up to Rp112,000,000,000. This was used for the construction of factories and the purchase of production machinery in Lamongan.
This facility is to be paid in 60 monthly installments after the grace period and will be payable until June 16, 2021. This facility was collateralized with the same collateral as that of the short-term loan facilities
and bears interest rate of 11.5 per annum.
In 2014 to 2016, Intertrend, Interkraft, Belayan and Intera, entered into loan agreements for vehicles with PT BCA Finance which is payable in monthly installments until 2019. These facilities bore an interest
rate of 3.1, per annum in 2016.
In 2014, Narkata obtained heavy equipment ownership credit facility from PT Equity Finance Indonesia which is to be repaid in monthly installments until 2018. This facility bore an interest rate of 9.14 per
annum in 2016.
In 2016, Interkayu entered into an agreement for the ownership of vehicle with PT Astra Sedaya Finance which is to be repaid in monthly installments until 2018 and bore an interest rate of 4.69 per annum in
2016.
17
In 2016, Narkata obtained heavy equipment ownership credit facility from PT Chandra Sakti Utama Leasing which is to be repaid in monthly installments until 2019. This facility bore an interest rate of 5.5
per annum in 2016.
Compliance with Credit Terms and Conditions
As of December 31, 2016, the Group has either complied with all of the terms of the above-mentioned loan agreements as set out in the respective loan agreements or obtained necessary waivers as
required.
b. Capital Lease Payables
As of December 31, 2016, the outstanding balance of the Company’s capital lease payables was Rp18,133,341,801, comprising of short-term and long-term capital lease payables of Rp9,093,528,058
and Rp9,039,813,743, respectively, as detailed below:
in Rupiah
Description As of December 31, 2016
2017 9,626,360,399
2018 9,268,715,622
2019 1,454,168,000
Total minimum payment 20,349,244,021
Less future finance cost 2,215,902,220
Present value of future minimum lease payments 18,133,341,801
Less current maturities 9,093,528,058
Long-term portion 9,039,813,743
The Group entered into a finance lease agreements with PT Orix Indonesia Finance, PT BFI Finance Indonesia Tbk, PT Equity Finance Indonesia and PT Chandra Sakti Utama Leasing, PT BCA Finance,
and PT Astra Sedaya Finance, the terms of these finance leases range from 24 to 48 months.
c. Employee Benefits Liabilities
As of December 31, 2016, the outstanding balance of the Company’s employee benefits liabilities were Rp27,231,441,609. The breakdown of the Company’s employee benefits liabilities as of December 31,
2016 is as follows:
in Rupiah
Description As of December 31, 2016
Balance at beginning of year 19,627,280,409
Current service cost 6,092,118,492
Interest cost 1,766,455,237
Actuarial gain due to change in financial assumption 254,412,529
Balance at end of year 27,231,441,609
The Group recognized a provision for unfunded employee benefits to employees who reach retirement age in accordance with the Law No. 132003 dated March 25, 2003. In the management’s opinion, the
post-employment benefits estimate referred to above is sufficient to cover the Company’s post- employment benefits.
The calculation of the post-employment benefits as of December 31, 2016, was performed based on actuarial calculation by an independent actuary, PT Dian Artha Tama, with its reports dated February 24,
2017, using the Projected Unit Credit method and based on the following assumptions:
18
2016
Retirement age 55 years
Annual rate of increase in salary 5.0
Mortality table TMI – III 2011
Annual discount rate 8.4
Disability rate 0.02
Rate of resignation 5.0 per annum in 18 years old and decrease gradually
up to 0 per annum in 55 years old.
d. Deferred Tax Liabilities
The breakdown of the Company’s deferred tax liabilities as of December 31, 2016, is as follows:
in Rupiah
Description As of December 31, 2016
The Company Employee benefits
3,525,730,188 Financial lease
1,803,930,349 Revaluation surplus of fixed assets
134,809,501,346 Trade receivables
64,715,020
Sub-total 133,022,986,487
Subsidiaries Employee benefits
2,927,483,171 Fixed assets
2,595,491,120 Revaluation surplus of fixed assets
79,465,470,263 Trade receivables
77,994,186
Sub-total 79,055,484,026
Total 212,078,470,513
THE MANAGEMENT HEREBY DECLARES THAT THERE ARE NO VIOLATIONS OF THE TERMS OF THE CREDIT AGREEMENTS ENTERED INTO BY THE COMPANY OR ITS SUBSIDIARIES THAT
MAY HAVE A MATERIAL IMPACT ON THE COMPANY AS A GOING CONCERN, INCLUDING THE EXPLANATION OF THE TERMS OF THE CREDIT AGREEMENTS INFRINGEMENT, AND ACTIONS
WHICH HAVE BEEN OR WILL BE TAKEN BY THE COMPANY OR THE SUBSIDIARIES INCLUDING THE LATEST DEVELOPMENT ON NEGOTIATION IN THE FRAMEWORK OF CREDIT
RESTRUCTURING.
\
FROM DECEMBER 31, 2016, BEING THE DATE OF THE INDEPENDENT AUDITOR’S REPORT ON THE COMPANY’S CONSOLIDATED FINANCIAL STATEMENTS, TO APRIL 28, 2017, AND FOR THE
YEAR ENDED ON DECEMBER 31, 2016 AND FROM THE DATE OF THE INDEPENDENT AUDITOR’S REPORT UP TO THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT, THE
MANAGEMENT, HEREBY DECLARES THAT THERE HAS NOT BEEN ANY NEGLIGENT CONDUCT BY THE COMPANY OR ITS SUBSIDIARIES IN THE GROUP FOR THE PAYMENT OF PRINCIPAL
AMOUNT ANDOR INTEREST, INCLUDING THE LATEST DEVELOPMENT ON NEGOTIATION IN THE FRAMEWORK OF CREDIT RESTRUCTURING.
ALL OF THE COMPANY’S CONSOLIDATED LIABILITIES AS OF DECEMBER 31, 2016, HAVE BEEN DISCLOSED IN THIS PROSPECTUS. AS OF THE DATE OF THIS PROSPECTUS, THE COMPANY
HAS PAID ALL OF ITS CONSOLIDATED LIABILITIES THAT ARE DUE. THERE ARE NO LIABILITIES THAT ARE DUE BUT NOT YET PAID BY THE COMPANY.
FROM DECEMBER 31, 2016, TO BEING THE DATE OF THE INDEPENDENT AUDITOR’S REPORT ON THE COMPANY’S CONSOLIDATED FINANCIAL STATEMENTS, TO APRIL 28, 2017, AND FOR
THE YEAR ENDED ON DECEMBER 31, 2016, AND FROM THE DATE OF THE INDEPENDENT AUDITOR’S REPORT UP TO THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT, THE
19
COMPANY DOES NOT HAVE ANY OTHER LIABILITIES AND COMMITMENTS OTHER THAN THE LIABILITIES ARISING IN THE ORDINARY COURSE OF BUSINESS AND THE LIABILITIES THAT
HAVE BEEN STATED ON AND DISCLOSED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND THIS PROSPECTUS.
THE MANAGEMENTHEREBY REPRESENTS THAT THE GROUP HAS THE ABILITY TO MEET THE LIABILITIES DISCLOSED IN THE FINANCIAL STATEMENTS AND PRESENTED IN THIS
PROSPECTUS AS THEY FALL DUE.
THERE ARE NO NEGATIVE COVENANTS IN EACH OF THE LIABILITIES WHICH THE GROUP IS IN THE PROCESS OF GETTING APPROVAL FOR FROM THE CREDITORS.
20
IV. KEY FINANCIAL HIGHLIGHTS
The following table presents the Company’s key consolidated financial highlights. The figures in the Company’s key consolidated financial highlights are derived from the Company’s consolidated
statements of financial position as of December 31, 2016, 2015 and 2014, the Company’s consolidated statements of profit or loss and other comprehensive income, as well as the Company’s statements of
changes in equity and statements of cash flows for the years ended on December 31, 2016, 2015 and 2014, all of which were audited by Teramihardja, Pradhono dan Chandra Rödl Partner, Registered
Public Accountants, with an unmodified opinion and an emphasis of matter in relation to the change in the functional currency of the Company and certain Subsidiaries from USD to IDR.
The figures in the Company’s key consolidated financial highlights for the consolidated statement of financial position as of December 31 2016, 2015, and 2014, the consolidated statement of profit or loss
and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the years ended on December 31, 2016, 2015, and 2014, which were audited
by Teramihardja, Pradhono and Chandra Rödl Partner, Registered Public Accountants. The auditor’s report dated April 28, 2017, which was unmodified and signed by Agustina Felisa, and with an emphasis
of matter in relation to the change in the functional currency of the Company and certain Subsidiaries from USD to IDR. The change of the Company’s and its Subsidiaries’ functional currency was in
accordance with PSAK 10 Revised 2010 on The Effects of Changes in Foreign Exchange Rates, which required the restatement of the accompanying consolidated financial statements as of December
31, 2015, 2014, and January 1, 2014December 31, 2013, attached herein, by the Group as required by the Indonesian Financial Accounting Standard in its report signed by Agustina Felisia.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
In Rupiah
Description December 31,
2012 2013
2014 2015
2016 ASSETS
CURRENT ASSETS Cash and cash equivalents
22,385,586,066 20,371,538,807
27,003,675,052 116,330,998,235
30,449,572,479 Trade receivables - third parties,
net 70,698,364,436
92,894,763,711 126,453,215,078
103,254,127,607 187,911,663,923
Other receivables Related Parties
- -
- 5,705,000,000
9,705,000,000 Third Parties
42,996,597,049 35,249,397,253
85,975,091,310 83,975,605,783
69,537,812,441 Inventories
352,257,331,533 402,841,557,735
370,729,131,373 575,780,894,734
893,017,247,860 Prepaid taxes
29,400,020,110 33,970,988,735
53,483,073,353 86,641,875,124
57,865,781,855 Prepaid expenses
999,918,298 1,450,140,674
8,185,548,964 8,155,804,028
11,996,020,252 Advances for purchase
8,907,642,620 28,192,884,873
38,666,930,986 29,251,710,800
64,658,888,752 Estimated claim for tax refund
- 5,411,964,756
4,381,778,520 2,976,593,074
2,560,280,979
Total Current Assets 527,645,460,112
620,383,236,544 714,878,444,636
1,012,072,609,385 1,327,702,268,541
NON-CURRENT ASSETS Other Receivables
29,582,959,231 21,570,000,000
- -
- Advances for purchases
9,024,662,880 11,671,494,154
49,233,418,595 32,135,724,826
83,412,735,768 Deferred tax assets
1,536,037,153 180,186,768
200,573,224 1,557,777,573
3,112,995,737 Fixed assets - net
333,978,074,919 674,898,324,892
745,755,613,017 954,784,745,618
1,642,859,190,372 Investment properties
- -
- 5,334,000,000
15,880,000,000 Other assets
8,878,057,916 20,312,497,858
11,096,476,681 8,587,664,705
8,907,020,077
Total Non-Current Assets 382,999,792,099
728,632,503,672 806,286,081,517
1,002,399,912,722 1,754,171,941,954
TOTAL ASSETS 910,645,252,211
1,349,015,740,216 1,521,164,526,153
2,014,472,522,107 3,081,874,210,495
LIABILITIES AND EQUITY CURRENT LIABILITIES
Bank and non-bank financial institution loans
415,239,245,747 496,693,792,132
592,878,060,190 766,860,659,223
907,825,110,478 Trade payables - third parties
69,865,118,194 66,452,956,850
77,986,237,180 92,080,340,642
72,604,179,566 Other Payables
Third Parties 48,266,485,620
21,590,212,524 2,203,632,409
11,607,525,581 5,654,871,991
Accrual Expenses 3,385,317,716
4,938,478,582 13,492,332,427
24,607,397,552 11,449,731,647
Taxes payable 1,752,387,794
3,836,129,976 1,307,234,867
5,171,757,786 43,462,855,487
21 In Rupiah
Description December 31,
2012 2013
2014 2015
2016
Advance from customers 9,588,843,800
14,927,158,259 9,153,927,568
25,429,552,176 24,792,817,188
Current maturities of long-term liabilities
Bank and non-bank financial institution loans
- 105,413,649,771
10,647,141,064 14,666,943,669
26,475,634,258 Obligation under finance lease
12,074,759,190 11,718,343,431
14,890,374,606 8,823,113,862
9,093,528,058
Total Current Liabilities 560,172,158,061
725,570,721,525 722,558,940,311
949,247,290,491 1,101,358,728,673
NON-CURRENT LIABILITIES Long-term liabilities - net of
current maturities Bank and non-bank financial
institution loans 115,674,836,249
9,477,036,251 2,896,321,840
198,219,164,268 160,818,401,206
Obligation under finance lease 12,723,471,939
5,103,256,605 19,039,788,936
11,072,193,969 9,039,813,743
Other payables Related party
- 76,122,623,993
94,510,018,600 82,600,391,671
141,314,372,925 Third parties
- -
20,470,000,000 620,400,000
- Deferred tax liabilities
2,343,184,510 47,058,929,941
49,276,052,995 46,102,573,417
212,078,470,513 Employee benefits liabilities
7,329,925,957 12,656,690,603
16,055,031,298 19,627,280,409
27,231,441,609
Total Non-Current Liabilities 138,071,418,655
150,418,537,393 202,247,213,669
358,242,003,734 550,482,499,996
TOTAL LIABILITIES 698,243,576,716
875,989,258,918 924,806,153,980
1,307,489,294,225 1,651,841,228,669
In Rupiah
Description December 31,
2012 2013
2014 2015
2016 EQUITY
Equity attributable to the
equity holders of the parent company
Share capital - par value of Rp100 per share in 2016, and
Rp1,000,000 per share in 2015, 2014, 2013 and 2012
Authorized capital - 20,000,000,000 shares in
2016, 250,000 shares in 2015, 2014, 2013 and 2012
Issued and fully paid-in capital - 5,000,000,000 shares in
2016, 195,000 shares in 2015, and 100,000 shares in
2014, 2013 and 2012
100,000,000,000 100,000,000,000
100,000,000,000 195,000,000,000
500,000,000,000 Additional paid-in capital
24,045,697,456 24,045,697,456
119,045,697,456 24,045,697,456
25,093,405,789 Exchange difference due to
translation of financial statements
51,230,102,645 100,627,151,865
105,769,457,388 141,425,224,187
141,425,224,187 Revaluation surplus of fixed
assets – net -
159,897,200,803 155,811,192,447
139,866,947,544 640,440,950,720
Differences equity transactions with non-controlling interest
- 510,692,166
510,692,166 510,692,166
1,763,749,431 Retained earnings
29,330,511,387 77,972,229,567
95,450,012,909 165,264,491,867
95,685,208,599 Sub-total
204,606,311,488 463,052,971,857
576,587,052,366 666,113,053,220
1,404,408,538,726 Non-controlling interest
7,795,364,007 9,973,509,441
19,771,319,807 40,870,174,662
25,624,443,100 TOTAL EQUITY
212,401,675,495 473,026,481,298
596,358,372,173 706,983,227,882
1,430,032,981,826 TOTAL LIABILITIES AND
EQUITY 910,645,252,211
1,349,015,740,216 1,521,164,526,153
2,014,472,522,107 3,081,874,210,495
Note: audited by Teramihardja, Pradhono Chandra Rödl Partner, Registered Public Accountants, with an unmodified opinion and an emphasis of matter in relation to the change in the functional currency of the Company and certain Subsidiaries from USD to IDR
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
In Rupiah
Description For the year ended on December 31
2012 2013
2014 2015
2016
Net sales 723,531,096,947
864,661,692,442 996,105,258,868
1,118,696,671,711 1,323,388,979,039
Cost of goods sold 582,772,257,482 704,985,562,063
836,916,693,334 876,991,059,336
865,229,995,699 GROSS PROFIT
140,758,839,465 159,676,130,379
159,188,565,534 241,705,612,375
458,158,983,340
Selling expenses 21,648,505,013
27,648,289,202 33,182,814,062
45,714,062,523 64,638,717,267
General and administrative expenses 40,260,227,644
48,039,070,893 51,363,844,019
79,944,456,088 110,012,317,898
22 In Rupiah
Description For the year ended on December 31
2012 2013
2014 2015
2016
Gain loss on foreign exchange - net 26,456,260,155
8,963,473,651 6,055,309,186
7,297,546,317 9,466,292,727
Interest Expense 32,837,339,068
49,706,414,160 61,416,255,732
67,307,212,559 105,943,138,891
Bank administration charges 1,718,752,959
1,338,508,018 1,212,791,628
3,090,609,915 2,138,867,004
Interest income 290,304,006
218,342,270 222,261,844
749,969,374 893,970,605
Gain loss on disposal of fixed assets 253,931,509
308,662,122 3,074,840,894
18,890,632,216 990,036,967
Miscellaneous - net 4,186,870,067
7,839,421,719 7,168,537,414
8,132,624,499 10,285,055,877
PROFIT BEFORE TAX BENEFIT EXPENSE
22,568,860,208 50,273,747,868
22,384,127,643 42,938,779,264
195,081,224,522 TAX BENEFIT EXPENSE
Current 6,533,125,501
6,393,105,871 5,636,464,967
13,771,265,405 58,549,280,250
Deferred 644,776,129
8,089,283,657 1,305,018,788
9,363,792,298 4,549,279,746
Total tax benefit expense - net 5,888,349,372
1,696,177,786 6,941,483,755
4,407,473,107 54,000,000,504
PROFIT FOR THE YEAR 16,680,510,836
51,969,925,654 15,442,643,888
38,531,306,157 141,081,224,018
OTHER COMPREHENSIVE INCOME LOSSES
Items that can be reclassified to profit or loss Exchange difference due to translation of
financial statements 51,306,485,249
49,649,197,169 8,144,944,662
51,980,001,268 -
Items that will not be reclassified to profit or loss
Increase decrease on revaluation of fixed assets - net
- 160,497,231,388
4,073,415,308 -
506,719,066,642 Remeasurement on employee benefits
liabilities - net -
3,373,972,847 236,782,367
1,548,284 190,809,397
Total other comprehensive income 51,306,485,249
213,520,401,404 3,834,746,987
51,981,549,552 506,909,876,039
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
67,986,996,085 265,490,327,058
19,277,390,875 90,512,855,709
647,991,100,057
Profit for the year attributable to: Owners of the parent company
14,642,836,618 51,149,733,145
14,738,392,771 37,891,275,532
140,696,905,072 Non-controlling interest
2,037,674,218 820,192,509
704,251,117 640,030,625
384,318,946 TOTAL
16,680,510,836 51,969,925,654
15,442,643,888 38,531,306,157
141,081,224,018
Total comprehensive income for the year attributable to:
Owners of the parent company 67,469,132,467
263,791,391,139 18,534,080,509
89,526,000,854 645,499,410,623
Non-controlling interest 517,863,618
1,698,935,919 743,310,366
986,854,855 2,491,689,434
TOTAL 67,986,996,085
265,490,327,058 19,277,390,875
90,512,855,709 647,991,100,057
BASIC EARNINGS PER SHARE 6.97
24.36 7.02
11.05 43.31
DIVIDEND PER SHARE -
- -
- 42.90
Note: audited by Teramihardja, Pradhono Chandra Rödl Partner, Registered Public Accountants, with an unmodified opinion and an emphasis of matter in relation to the change in the functional currency of the Company and certain Subsidiaries from USD to IDR
KEY CONSOLIDATED FINANCIAL RATIOS
Description For the year ended on December 31
2012 2013
2014 2015
2016 Growth Ratios
Net Sales 98.19
19.51 15.20
12.31 18.30
Gross profit 89.85
13.44 0.31
51.84 89.55
Profit before income tax benefit expense 77.90
122.76 55.48 91.83
354.32 Profit for the year
79.00 211.56 70.29
149.51 266.15
Comprehensive Income for the year 629.58
290.50 92.74 369.53
615.91
Operating Ratios Profit before income tax benefit expense to net sales
3.12 5.81
2.25 3.84
14.74 Profit before income tax benefit expense to total assets
2.48 3.73
1.47 2.13
6.33 Profit before income tax benefit expense to equity
10.63 10.63
3.75 6.07
13.64 Comprehensive income for the year to net sales
9.40 30.70
1.94 8.09
48.96 Comprehensive income for the year to total assets
7.47 19.68
1.27 4.49
21.03 Comprehensive income for the year to equity
32.01 56.13
3.23 12.80
45.31
Financial Ratios x Current assets to current liabilities
0.94 0.86
0.99 1.07
1.21
23
Description For the year ended on December 31
2012 2013
2014 2015
2016
Non-current liabilities to equity 0.65
0.32 0.34
0.51 0.38
Interest-bearing debt to equity 2.62
1.49 1.23
1.53 0.88
Total liabilities to equity 3.29
1.85 1.55
1.85 1.16
Total liabilities to total assets 0.77
0.65 0.61
0.65 0.54
EBITDAinterest expense on loans 2.64
2.95 2.19
2.53 3.54
Financial Ratios Required in Loan Agreements or Other Liabilities and Their Compliance
Financial Ratios Required in the Loan Agreements or Other Liabilities The Company’s Financial Ratios
as of December 31, 2016
Current ratio minimum 1x 1.21x
Total liabilities to equity maximum 3x 1.16x
Debt Service Coverage Ratio DSCR minimum 1x 2.85x
Gearing ratiointerest-bearing debt to equity maximum 1.25x 0.88x
Interest Service Coverage Ratio minimum 1x 3.54x
Receivables and inventories to total working capital minimum 110.0 119.07
24
V. MANAGEMENT’S DISCUSSIONS AND ANALYSIS
The management’s discussions and analysis on financial condition and operating results presented in this section must be read together with the Company’s consolidated financial statements for the fiscal
years ended on December 31, 2016, 2015, and 2014, and related notes, which are presented in Independent Auditor’s Report and the Company’s Consolidated Financial Statement. The discussions
and analysis presented below contain forward-looking statements that are subject to a certain level of risks and uncertainties. The Company’s future consolidated financial and operating results may differ
significantly with the projections contained in these forward-looking statements. Factors that may cause significant differences from the projections contained in these forward-looking statements are discussed
in, but not limited to, the following discussions and other related sections in this Prospectus, particularly Risk Factors.
The following discussions have been prepared based on the Company’s consolidated statement of financial position as of December 31, 2016, 2015, and 2014, and consolidated statement of profit or loss
and comprehensive income for the years ended on December 31, 2016, 2015, and 2014. The Company’s consolidated financial statement as of December 31, 2016, 2015, and 2014, were audited by
Teramihardja, Pradhono Chandra Rödl Partner, Registered Pubic Accountants, with an unmodified opinion and an emphasis of matter in relation to the change of the functional currency of the Company
and certain Subsidiaries from USD to Rupiah in its report signed by Agustina Felisa dated April 28, 2017.
1. OVERVIEW