PT XL AXIATA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Page 62
31. SIGNIFICANT AGREEMENTS WITH THIRD PARTIES continued
l. Fiber optics lease agreement
The Company entered into agreements with HCPT and Moratel to lease the Company’s fiber optics network. These agreements are valid until the end of leased terms to utilise the fiber optics
network, being 15 years HCPT and 10 years Moratel, respectively from the utilization of the agreed spots and unless terminated earlier by either parties in accordance with the agreement.
The first utilization took place in January 2009 and additions are made when both parties agreed. The Company entitles to receive periodic lease payments, which is set in the agreements. In
addition, these agreements also set out the rights and obligation of the Company and the lessees.
m. National roaming agreement
In December 2009, the Company signed national roaming agreement with PT Natrindo Telepon Selular NTS. The service enables NTS’s subscribers to access on the Company’s network in
certain areas. The agreement is commencing on 1 January 2010 for service term of 3 three years unless terminated earlier by either parties in accordance with the provisions stipulated in the
agreement. The extension of the service term shall be agreed by both parties. In addition, this agreement also set out the rights and obligation both parties.
n. Joint construction of submarine fiber optic link agreement
In November 2009, the Company entered into agreement with PT PGAS Telekomunikasi Nusantara for joint construction of submarine fiber optic link Kalianda-Anyer. The agreement sets
out the right and obligation both parties and will be valid up to end of warranty period of the submarine fiber optic link unless terminated earlier by either party in accordance with the
agreement.
o. Managed utility services for billing infrastructure environment agreements with PT Sun Microsystems Indonesia
In March 2010, the Company entered into managed utility services for billing infrastructure environment agreements with PT Sun Microsystems Indonesia. This agreement is commencing
on 1 January 2010 until December 2014 unless terminated earlier by either party in accordance with the agreement. In addition, this agreement also sets out the right and obligation both parties.
32. MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
31032010 Equivalent
to million
USD EUR
CHF SGD
AUD Rupiah
Asset Cash and cash equivalents
49,418,787 -
- -
- 450,452
Trade receivables 9,672,134
- -
- -
88,162 Other assets
45,674,927 -
- -
- 416,327
Total Assets 104,765,848
- -
- -
954,941
PT XL AXIATA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Page 63
32. MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued
31032010 Equivalent
to million
USD EUR
CHF SGD
AUD Rupiah
Liabilities Trade and other payables
171,091,364 605,945
83,717 104,346
27,574 1,568,524
Accrued expenses 2,220,917
- -
- -
20,244 Long-term loans
350,150,398 -
- -
- 3,191,621
Total Liabilities 523,462,679
605,945 83,717
104,346 27,574
4,780,389
Net Liabilities 418,696,831
605,945 83,717
104,346 27,574
3,825,448
Since the Company’s revenues are mainly denominated in Rupiah and the Company’s liabilities are mainly denominated in US Dollars, the Company is exposed to fluctuations in foreign exchange rates
resulting mainly from its debt denominated in US Dollars. Most of the liabilities denominated in US Dollars are long-term and management is continuously evaluating feasible long-term hedging
structures.
33. SEGMENT INFORMATION
The Group operates and manages the business under 1 one segment which provides GSM mobile and telecommunications network services to its customers. The management allocates resources and
assesses performance at the Group level.
34. RECLASSIFICATION OF ACCOUNTS
Certain accounts in the 31 March 2009 consolidated financial statements have been reclassified to conform with the presentation of the latest financial statements. The details of the reclassification are
as follows:
Before After
reclassification reclassification
Trade and other payables - third parties 413,152
259,966 Provisions
83,416 236,602
35. SUBSEQUENT EVENTS
a. The Company’s monetary assets and liabilities on 31 March 2010 were reported in Rupiah using the rates 1 USD = Rp Rp 9,115 full amount, 1 EUR = Rp 12,216 full amount and 1 SGD =
Rp 6,505 full amount. Since 31 March 2010, those rates were changed to 1 USD = Rp 9,013 full amount, 1 EUR = Rp 12,049 full amount and 1 SGD = Rp 6,586 full amount on 27 April 2010. If
the Company reports monetary assets and liabilities in foreign currency as at 31 March 2010 using these rates, unrealised foreign exchange gain will decrease in the amount of Rp 42,812. In the
future, the rates might fluctuate, and Rupiah might depreciate or appreciate significantly compared to other currencies.
b. In relation with Private Placement on Company’s ownership by Axiata Group Berhad through Indocel Holding Sdn. Bhd., 1,685,584,000 shares had been sold on 9 April 2010. Including in this
amount is 153,144,000 over-allotment shares to stabilize the market price for 30 thirty days after 1 April 2010 and will be returned to Indocel for unsellable shares. refer to Note 16.
