PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
December 31, 2011 and 2010 and For the Years then Ended
- 120 - Fair value of short term investments in securities, segregated funds net assets - unit link, and
segregated funds net assets – sharia shares that are traded in Indonesia Stock Exhange, and bonds based on market price. The fair value of short term investment securities, segregated
funds net assets - unit link, and segregated funds net assets – sharia unit mutual fund were based on net asset value published.
Fair value of loans, consumer financing receivables, finance lease, factoring receivables, and other receivables are determined based on discounted cash flow analysis using market interest
rate. There is no reliable basis for measuring the fair value of investment in shares Notes 2i and 17,
thus, the investments in shares are stated at cost. Deposits and deposits from other banks have a demand feature, thus, the fair value is not less
than the amount payable on demand discounted from the first date that the amount could be required to be paid which is equal to the carrying amount.
The fair value of loan received is determined based on discounted cash flow analysis using market interest rates.
Fair value of cash and cash equivalents, short-term investment in time deposits, placements with other banks, Bank Indonesia intervention, export bill receivable, securities purchased under
agreements to resell, securities agent receivables, segregated funds net assets – unit link investment receivable, segregated funds net assets – sharia investment receivable, other
assets security deposits and money transfer, accounts payable, securities sold under agreement to repurchase, securities agent payables, accrued expenses, and other liabilities
approximates the carrying value due to short term nature of transactions.
56. Agreements and Engagements
a. On June 6, 2008, the Company entered into room leasing agreement with ASM relating to lease of 7
th
and 8
th
floor at office building of Plaza Simas which is located at Jl. Fachrudin No. 20, Central Jakarta. The lease term is for 15 years, starting from October 1, 2008 up to
October 1, 2023 Note 54. b.
AJSM entered into cooperation agreements, where AJSM was appointed as insurance agent with third parties. The third parties are PT Bank Commonwealth, PT Bank Mayapada Tbk,
PT Bank Permata Tbk, PT Bank Muamalat Indonesia, PT Bank OCBC NISP Tbk, PT Bank Nusantara Parahyangan Tbk, PT Bank Windu Kentjana International Tbk, PT Bank BCA
Syariah, BS, PT Bank Kesawan Tbk, PT Bank Syariah Mandiri, PT Bank UOB Buana Tbk, PT Bank Mega Tbk, PT ICB Bumiputera Indonesia Tbk, PT Bank International Indonesia
Tbk, PT Bank Mutiara Tbk, PT Bank Victoria International Tbk, Bank of China Limited and some Bank Perkreditan Rakyat.
c. The Group insured their property and equipment, property under build, operate and transfer
and assets for lease with ASM Notes 18, 19, 20 and 21. d. SMF, a subsidiary, has entered into a Joint Financing Agreement by transferring
Receivables Portfolio and Appointment as Security Agent and Chanelling Credit Transfer Agreement with BS Note 7.
e. Since September 2006, ABSM entered into certain lease agreements operating lease with
BS on motor vehicles and office equipment owned by ABSM with lease periods ranging from four 4 up to eight 8 years until 2014 Note 21.
PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
December 31, 2011 and 2010 and For the Years then Ended
- 121 - f.
On October 22, 2007, SMF entered into operating lease agreement with BS on SMF’s automatic teller machine ATM Note 21. The operating lease agreement is valid from
November 22, 2007 to January 20, 2012.
g. The Company entered into long term room lease agreement with ASM, a subsidiary Note 20.
57. Commitments and Contingencies
a. BS, a subsidiary, has commitments on purchases and sales of foreign currency Spot and Forward which have not yet been realized as of December 31, 2011, amounting to
Rp 305,752 million and Rp 700,490 million, respectively, while purchases and sales of foreign currency Spot and Forward which have not yet been realized as of December 31,
2010, amounting to Rp 28,697 million and Rp 27,030 million, respectively,
b. BS has commitments and contingent receivables and liabilities under export-import, guarantees and loans given to the customers as follows:
2011 2010
Rp 000,000 Rp 000,000
Commitments Commitment Liabilities
Unused loan commitments granted to customers
125,686 115,266
Irrevocable Letters of Credit 44,878
37,254 Total
170,564 152,520
Contingencies Contingent receivables
Past due interest revenues 19,946
11,874 Contingent liabilities
Bank guarantees issued 490,301
317,066 Net
470,355 305,192
As of December 31, 2011 and 2010, the total commitments and contingencies transactions which consist of letters of credit and bank guarantees with related parties amounted to
Rp 45,617 million, Rp 37,614 million, respectively Note 54. As of December 31, 2011 and 2010, the average term of letters of credit are 1 up to 8
months and 1 up to 4 months, respectively, while for bank guarantees are from 1 month up to 39 months and 1 month up to 36 months, respectively.
