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
13
1. GENERAL continued
Bank Mandiri has offshore branches located in Grand Cayman, Singapore and Hong Kong as of April 30, 2003 and December 31, 2002 and a new branch in Timor Leste as of December 31, 2003
and has one offshore subsidiary in London, United Kingdom, Bank Mandiri Europe Limited BMEL. Bank Mandiri has also a representative office in Shanghai, China.
Bank Mandiri’s Boards of Commissioners and Directors as of December 31, 2003, April 30, 2003 and December 31, 2002 are as follows:
December 31, 2003 April 30, 2003
December 31, 2002 Board of Commissioners
Chairman : Binhadi
Binhadi Binhadi
Deputy Chairman : Markus Parmadi
- -
Commissioner : Darmin
Nasution Soedarjono Soedarjono
Commissioner : Arie Soelendro
Markus Parmadi Markus Parmadi
Commissioner :
Mohammad Syahrial Sabana Kartasasmita Sabana
Kartasasmita Independent Commissioner
: A. Tony Prasetiantono
Independent Commissioner : Riswinandi
Board of Directors President Director
: E.C.W. Neloe E.C.W. Neloe
E.C.W. Neloe Deputy President Director
: I Wayan Pugeg -
- Director
: I Wayan Agus Mertayasa I Wayan Pugeg
I Wayan Pugeg Director
: M. Sholeh Tasripan I Wayan Agus Mertayasa
I Wayan Agus Mertayasa Director
: Omar Sjawaldy Anwar M. Sholeh Tasripan
Director : Ventje
Rahardjo Omar Sjawaldy Anwar
Director and Corporate Secretary : Nimrod Sitorus
Nimrod Sitorus Director
: Johanes Bambang Kendarto Ventje Rahardjo
Director : Zulkifli Zaini
Johanes Bambang Kendarto also appointed as Compliance Director
approval from BI through letter No. 62DGSDPIPRahasia dated January 6, 2004 approved by Bank Indonesia through its letter No. 614DGSDPIPRahasia dated February 17, 2004
also appointed as Independent Commissioner
Bank Mandiri’s Audit Committee as of December 31, 2003, April 30, 2003 and December 31, 2002, is comprised of:
December 31, 2003 April 30, 2003 and December 31, 2002
Chairman
: Markus Parmadi
Soedarjono
Member
: Zulkifli Djaelani
Soejatna Soenoesoebrata
Member
: Imam Sukarno
Zulkifli Djaelani
As of December 31, 2003, April 30, 2003 and December 31, 2002 Bank Mandiri has a total of 18,397, 17,780 and 17,204 employees, respectively.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Basis of Preparation of the Consolidated Financial Statements The consolidated financial statements of Bank Mandiri and Subsidiaries have been prepared in
conformity with the Statement of Financial Accounting Standards SFAS No. 31 Revised 2000, “Accounting for the Banking Industry” and other generally accepted accounting principles
established by the Indonesian Institute of Accountants and, where applicable, with prevailing banking industry practices and accounting and reporting guidelines prescribed by the Indonesian
banking regulatory authority.
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
14
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
a. Basis of Preparation of the Consolidated Financial Statements continued The consolidated financial statements have been prepared on the historical cost and accrual basis
of accounting, except for trading and available for sale securities and Government Bonds and derivative receivables and payables which are stated at fair value, hedge bonds which are stated
at indexed value, certain investments in shares of stock which are accounted for under the equity method, and certain premises and equipment which have been revalued.
The consolidated statements of cash flows are presented under the direct method which classifies cash receipts and payments on the basis of operating, investing and financing activities. For the
purpose of the consolidated statements of cash flows, cash equivalents include cash on hand, current accounts with Bank Indonesia and current accounts with other banks.
b. Principles of Consolidation The consolidated financial statements include the financial statements of Bank Mandiri and its
majority-owned or controlled Subsidiaries. Significant inter-company balances and transactions have been eliminated.
Subsidiaries included in the consolidated financial statements are as follows:
Percentage of Ownership December 31,
April 30, December 31,
Name of Subsidiary Nature of Business
Domicile 2003
2003 2002
Bank Mandiri Europe Limited BMEL Commercial Banking
London 100.00
100.00 100.00
PT AXA Mandiri Financial Services formerly PT Asuransi Jiwa Mandiri Insurance
Jakarta 49.00 100.00
100.00 PT Bank Syariah Mandiri BSM
Syariah Banking Jakarta
99.99 99.99
99.99 PT Usaha Gedung Bank Dagang
Negara Property
Management Jakarta 99.00 99.00 99.00
PT Bumi Daya Plaza Property Management
Jakarta 93.33
93.33 93.33
PT Mandiri Sekuritas Investment Banking
Jakarta 95.68 95.68
91.87 51 interest has been sold to National Mutual Fund International Pty. Ltd., a member of the AXA Group effective on November 5, 2003,
therefore the financial statements of PT AXA Mandiri Financial Services formerly PT Asuransi Jiwa Mandiri as of December 31, 2003 were not consolidated see Note below.
BMEL was incorporated on June 22, 1999 under the Companies Act 1985 of the United Kingdom. It was established from the conversion of Bank Exim London Branch to a subsidiary effective
July 31, 1999. BMEL was mandated to act as a commercial bank to represent the interests of Bank Mandiri. The registered office of BMEL is in London, United Kingdom. In July 2002, the Bank
injected additional paid-up capital of US22 million into BMEL.
PT AXA Mandiri Financial Services formerly PT Asuransi Jiwa Mandiri was established in the Republic of Indonesia on September 30, 1991 based on notarial deed No. 179 of Muhani
Salim, S.H. dated September 30, 1991 with the name of PT Asuransi Jiwa Staco Raharja. Based on the Extraordinary General Shareholders’ Meeting held on January 31, 2002, the name of the
Company was changed from PT Asuransi Jiwa Staco Raharja to PT Asuransi Jiwa Mandiri. In accordance with Article 3 of the Company’s Articles of Association, the Company is engaged in life
insurance activities. In order to strengthen the Company’s capital structure prior to a proposed joint venture with National Mutual Fund International Pty. Ltd., a member of the AXA Group, on
September 20, 2002 and October 24, 2003 PT Asuransi Jiwa Mandiri’s paid up capital was increased by Rp10,000 and Rp28,600, respectively, as a result of the Bank’s increased investment
in the Company. On November 5, 2003, National Mutual Fund International Pty. Ltd. acquired 51 of the share ownership in the Company from Bank Mandiri. On November 5, 2003, Bank Mandiri
and National Mutual Fund International Pty. Ltd. contributed to an increase in the paid up capital of PT Asuransi Jiwa Mandiri in the amount of Rp7,777 and Rp8,095, respectively. Since then, the
Company’s name has changed from PT Asuransi Jiwa Mandiri to PT AXA Mandiri Financial Services Note 58f.
