PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated
2013
Consumer Stock brokerage
financing, Securities
underwriting Property,
Total Total
Insurance finance lease
administration and investment
Trading and before
after The Company
underwriting and factoring
fee manager
Banking Service
elimination Elimination
Elimination
Operating income -
11,810,876 -
3,431 136,417
- -
11,950,724 244
11,950,480 Interest income and profit sharing
27,587 485,151
605,906 -
11,404 1,384,681
61 2,514,790
36,387 2,478,403
Gain from investment in 1,043,447
- -
- -
- -
1,043,447 1,043,447
units of mutual fund Gain loss on sale of
6,125 490,656
- 1,137
953 -
2,076 499,041
- 499,041
short-term investment-Net
154 292,426
2,002 -
16,769 2,316
119 313,240
- 313,240
Sales -
- -
- -
- -
- -
- Administration fee
- -
163,887 -
- 229,475
- 393,362
92,279 301,083
and commission -
- -
- -
- 142,027
142,027 -
142,027 Gain on foreign exchange - net
- 76,865
- -
27,480 129
- 49,514
- 49,514
Equity in net income of associates - net
373,889 13,335
- -
- -
13,373 400,597
358,497 42,100
Others 8,392
115,630 19,658
132 38,086
7,223 100,229
289,350 58,473
230,877 Total income
1,459,286 13,284,939
791,453 4,700
174,243 1,623,824
257,647 17,596,092
545,880 17,050,212
Operating expenses -
12,372,289 -
- 41,776
- -
12,414,065 92,279
12,321,786 Interest expenses and profit sharing
- -
226,360 -
19 563,788
314 790,481
11,559 778,922
Salaries and employee benefit 3,039
322,357 196,245
2,574 45,748
281,953 38,113
890,029 -
890,029 General and administrative
16,982 279,425
184,238 753
43,951 453,526
31,352 1,010,227
76,395 933,832
Provision for impairment -
- losses of financial assets
- -
and non financial assets -
292 33,532
6 -
26,234 -
7,596 -
7,596 Unrealized loss on decrease in
- -
fair value of securities -
290,835 -
- 22,453
6,201 -
274,583 -
274,583 Cost of goods sold
- -
- -
- -
141,628 141,628
- 141,628
Others 1,641
48,344 38,363
103 24,417
73,490 24,053
210,411 6,381
204,030 Total expenses
21,662 13,313,542
678,738 3,436
133,458 1,352,724
235,460 15,739,020
186,614 15,552,406
Income losses before tax 1,437,624
28,603 112,715
1,264 40,785
271,100 22,187
1,857,072 359,266
1,497,806 Tax benefit expense
223,673 41,781
26,483 18
16,154 65,001
2,686 375,796
192 375,604
Net income 1,213,951
70,384 86,232
1,246 24,631
206,099 19,501
1,481,276 359,074
1,122,202 Segment assets
824,541 24,638,577
3,349,932 23,058
1,002,786 17,499,102
375,614 47,713,610
508,211 47,205,399
Investment in associates 10,936,902
136,284 8
301 14,787
- 182,147
11,270,429 10,740,081
530,348 Unallocated assets
9,772 -
185 110
25,675 22
9,181 44,945
- 44,945
Total assets 11,771,215
24,774,861 3,350,125
23,469 1,043,248
17,499,124 566,942
59,028,984 11,248,292
47,780,692 Segment liabilities
13,367 13,953,423
2,100,286 1,856
119,327 14,613,978
28,468 30,830,705
541,707 30,288,998
Unallocated liabilities 222,797
24,506 8,995
184 7,546
94,221 634
358,883 6,659
365,542 236,164
13,977,929 2,109,281
2,040 126,873
14,708,199 29,102
31,189,588 535,048
30,654,540 Segment assets are excluded prepaid tax and deferred tax asset whereas segment liabilities are excluded taxes payable and deferred tax liabilities
56. Financial Risk Management Objectives and Policies
The Group’s activities are exposed to a variety of financial risks: market risk including currency risk, fair value interest rate risk and price risk, credit risk and liquidity risk. The Group’s overall
risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance.
Risk management is the responsibility of the Board of Directors BOD. The BOD has the responsibility to determine the basic principles of the Group’s risk management as well as
principles covering specific areas, such as foreign exchange risk, interest rate risk, price risk, credit risk, and liquidity risk.
In practice, implementation of risk management of the Group includes active supervision of management, implementation of policies and procedures, risk limits, the process of identification,
measurement and monitoring of risk, implementation of information systems and risk management and internal control systems.
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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated
Credit Risk Credit risk is the risk that the Group will incur a loss arising from the customers or counterparties
which fail to fulfill their contractual obligations. The Group manages and controls the credit risk by dealing only with recognized and credit worthy parties, setting internal policies on verifications
and authorizations of credit, and regularly monitoring the collectibility of receivables to reduce the exposure to bad debts.
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to historical information about counterparty default rates:
Past due but Past due and
Not past due unimpaired
impaired Total
Cash and cash in banks 730,244
- -
730,244 Short-term investments
22,119,318 -
- 22,119,318
Consumer financing recaivables 562,610
1,319 41,469
605,398 Net investment in finance lease
86,377 4,922
6,362 97,661
Factoring receivables 1,356,158
32,754 14,357
1,403,269 Loans
13,895,369 -
403,066 14,298,435
Acceptances receivable 67,836
- -
67,836 Receivables from brokers
263,426 -
- 263,426
Other receivables 2,105,447
- -
2,105,447 Investment in shares
243,506 -
- 243,506
Other assets 33,264
- -
33,264 41,463,555
38,995 465,254
41,967,804 2014
Past due but Past due and
Not past due unimpaired
impaired Total
Cash and cash in banks 759,936
- -
759,936 Short-term investments
21,660,216 -
- 21,660,216
Securities purchased under agreements to resell
139,211 -
- 139,211
Consumer financing recaivables 876,383
1,567 20,766
898,716 Net investment in finance lease
104,856 -
17,769 122,625
Factoring receivables 1,116,626
17,754 12,707
1,147,087 Loans
10,689,337 172
276,562 10,966,071
Acceptances receivable 238,324
- -
238,324 Receivables from brokers
378,544 -
- 378,544
Other receivables 623,890
- -
623,890 Investment in shares
67,529 -
- 67,529
Other assets 25,940
- -
25,940 36,680,792
19,493 327,804
37,028,089 2013
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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated
The table below shows consolidated statement of financial position exposures related to credit risk:
Gross amount Net amount
Gross amount Net amount
At fair value through profit and loss Short-term investment - securities - shares and warrants
145,711 145,711
661,283 661,283
Short-term investment - securities - bonds -
- 20,000
20,000 Short-term investment - securities - units of mutual fund
7,441,934 7,441,934
7,409,910 7,409,910
Short-term investment - securities - unit link - units of mutual fund 1,722,475
1,722,475 2,413,715
2,413,715 Other assets - derivative assets
- -
28 28
Available for sale Short-term investment - securities - shares
53,260 53,260
553,537 553,537
Short-term investment - securities - bonds 1,496,138
1,496,138 5,565,819
5,565,819 Short-term investment - securities - units of mutual fund
6,629,792 6,629,792
1,571,472 1,571,472
Investment in shares 69,706
69,706 67,529
67,529 Investments based on sharia - at cost
Short-term investment - securities - bonds 243,962
243,962 630,637
630,637 Investments based on sharia - fair value
Short-term investment - securities - shares 11,566
11,566 11,381
11,381 Short-term investment - securities - bonds
31,197 31,197
39,154 39,154
Short-term investment - securities - units of mutual fund 76,954
76,954 31,496
31,496 Held to maturity
Short-term investment - securities - bonds 20,000
20,000 -
- Fair value - temporary investment
Temporary investment - investment in shares 173,800
173,800 -
- Loans and receivables
Cash and cash in banks 730,243
730,243 759,936
759,936 Securitiies purchased under agreements to resell
- -
139,211 139,211
Short-term investment - placement with other banks 308,569
308,569 593,813
593,813 Short-term investment - time deposits
3,767,547 3,767,547
1,950,998 1,950,998
Short-term investment - securities - export bill receivables 170,213
170,213 207,001
207,001 Net investment in finance lease
97,661 95,863
122,625 120,458
Consumer financing receivables 605,398
597,058 898,716
895,987 Factoring receivables
1,403,269 1,398,689
1,147,087 1,144,066
Receivables from brokers 263,426
263,426 378,544
378,544 Other accounts receivable - net
2,105,447 2,105,313
623,890 623,751
Acceptances receivable 67,836
67,837 238,324
238,324 Loans - net
14,298,435 14,223,357
10,966,071 10,909,738
Other assets 33,264
33,264 25,940
25,940 Total Financial Assets
41,967,803 41,877,874
37,028,117 36,963,728
2014 2013
Market Risk
Market risk is the risk that the fair value or future contractual cash flows of a financial instrument held by the Group will be affected due to changes in market variables such as interest rates,
exchange rates, including derivatives of both risks risks of derivative instruments.
a. Interest rate risk
The Group’s interest rate risk arises from loans, deposits and deposits from other banks and loans received. Loans, deposits and deposits from other banks and loans received at
floating rates expose the Group to cash flow interest rate risk. Financial assets and financial liabilities at fixed rates expose the Group to fair value interest rate risk.
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