PT TRIKOMSEL OKE Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2009 and 2008 Expressed in Rupiah Unless Otherwise Stated
17
6. TRADE RECEIVABLES - THIRD PARTIES continued
Based on the review of the status of the individual receivable at the end of the year, the Company’s and Subsidiaries’ management is of the opinion that the allowance for doubtful accounts is adequate to
cover possible losses from uncollectible accounts. 7. INVENTORIES
2009 2008
Cellular phones 512,063,247,652
393,933,399,442 Starter packs and reload vouchers
40,085,604,637 56,047,956,473
Accessories 3,683,708,154
6,920,517,888 Netbooklaptop and modem
2,615,166,772 62,398,036
Spareparts 734,636,253
7,063,818,082 Inventories in-transit
17,491,176,240 4,073,400,000
Total inventories 576,673,539,708
468,101,489,921 Allowance for decline in value of inventories
3,265,933,888 1,090,582,711
Inventories - net 573,407,605,820
467,010,907,210
In September 2008, the Company has started to sell netbooklaptop at the Company’s retail outlets. The Company’s and Subsidiaries’ management believes that the allowance for decline in value of
inventories as of December 31, 2009 and 2008 is adequate to cover possible losses from decline in value of inventories.
All of the above inventories as of December 31, 2009 and 2008 excluding inventories in-transit of Rp4,073,400,000 as of December 31, 2008 are pledged as collateral to bank loans obtained by the
Company Note 11.
As of December 31, 2009, the Company’s inventories are covered by insurance against losses by fire, flood and other risks under blanket policies of US400,000,000 equivalent to Rp3,760,000,000,000
from PT Asuransi Allianz Utama Indonesia, a third party, which in the Company’s management’s opinion is adequate to cover the possible losses from such risks.
In May 2008, the Company’s inventories in one of the forwarder’s warehouse with total cost of Rp13,543,342,965 as of May 31, 2008, were destroyed in a fire incident, with total sum insured of
Rp15,000,000,000 calculated based on sales price of the inventories. On August 8, 2008, the Company received the partial payment of Rp4,500,000,000, representing 30 of total sum insured,
from the insurance company. As of December 31, 2008, the remaining cost of destroyed inventories of Rp9,043,342,965 is recognized as part of “Other Receivables - Third Parties” in the 2008 consolidated
balance sheet. On July 3, 2009, the Company received the proceeds from insurance claim of Rp8,738,669,985 and the remaining claim receivable of Rp304,672,980 is recognized as part of “Other
Charges” account.
PT TRIKOMSEL OKE Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2009 and 2008 Expressed in Rupiah Unless Otherwise Stated
18
8. PREPAID EXPENSES AND TAXES AND ADVANCES 2009
2008 Prepaid Expenses and Taxes
Third parties: Prepaid Value Added Tax
26,131,272,538 14,184,699,732
Prepaid rent 22,352,665,397
26,762,070,354 Prepaid fit out
3,208,263,048 10,168,664,629
Prepaid insurance 1,143,810,470
961,073,208 Others
4,071,524,629 292,634,629
Total third parties 56,907,536,082
52,369,142,552 Related parties Note 23:
Prepaid fit out -
159,030,305 Prepaid rent
- 20,000,000
Total related parties -
179,030,305 Total prepaid expenses and taxes
56,907,536,082 52,548,172,857
Advances - Third Parties
Third parties: Purchase of inventories
US72,571,292 and Rp9,992,597,901 in 2009 and US17,081,093 and
Rp5,853,251,267 in 2008 692,259,733,360
192,891,220,089 Purchase of fixed assets
US2,646,665 and Rp460,000,000 in 2009 and US1,839,940 in 2008
31,061,748,300 17,833,015,950
Others 6,109,040,278
309,121,111 Total third parties
729,430,521,938 211,033,357,150
Related parties Note 23: Purchase of inventories
6,057,455,407 -
Others 61,352,157
- Total related parties
6,118,807,564 -
Total advances 735,549,329,502
211,033,357,150
Total prepaid expenses and taxes and advances 792,456,865,584
263,581,530,007
Prepaid fit out represents renovation and decoration costs for the Company’s retail outlets which is amortized over one 1 year. Amortization of fit out is recognized as part of “Operating Expenses” in
the consolidated statements of income Note 21. Advances for purchase of inventories represent advances provided to operators for vouchers and to
Nokia Pte. Ltd., Singapore and Sony Ericsson Mobile Communication AB, Sweden for cellular phones. Advances for purchase of fixed assets mainly represent advances for purchases of office unit located
in Equity Tower to PT Graha Sampoerna, a third party, with total purchase price of US3,850,500 Note 25n.
