10
III. STATEMENT OF INDEBTEDNESS
As of December 31, 2016, the Company had total liabilities of Rp1,651,841,228,669, consisting of current liabilities of Rp1,101,358,728,673, and non-current liabilities of Rp550,482,499,996. The figures
are derived from the consolidated balance sheet of the Company as of December 31, 2016, which was audited by Teramihardja, Pradhono Chandra Rödl Partner, Registered Public Accountants, with an
unmodified opinion and an emphasis of matter in relation to the change in the functional currency from USD to Rupiah in its report signed by Agustina Felisia.
in Rupiah
Description As of December 31, 2016
Current Liabilities Bank and Non-Bank Financial Institution Loans
907,825,110,478 Trade Payables
72,604,179,566 Other Payables
5,654,871,991 Accrual Expenses
11,449,731,647 Taxes Payable
43,462,855,487 Advance from Customers
24,792,817,188 Current Maturities of Long-Term Liabilities
Bank and Non-Bank Financial Institution Loans 26,475,634,258
Obligation Under Finance Lease 9,093,528,058
Total Current Liabilities 1,101,358,728,673
Non-Current Liabilities Long-term Liabilities, Net of Current Maturities
Bank and Non-Bank Financial Institution Loans 160,818,401,206
Obligation Under Finance Lease 9,039,813,743
Other Payables 141,314,372,925
Deferred Tax Liabilities 212,078,470,513
Employee Benefits Liabilities 27,231,441,609
Total Non-Current Liabilities 550,482,499,996
Total Liabilities 1,651,841,228,669
1. Current Liabilities a. Bank and Non-Bank Financial Institution Loans
The outstanding balance of the Company’s bank loans was Rp907,825,110,478. The breakdown of the Company’s short-term bank loans is as follows:
in Rupiah
Description As of December 31, 2016
The Company Third Parties
Exim Export Working Capital Credit Facility I
198,630,000,000 Export Working Capital Credit Facility II
70,000,000,000 Export Working Capital Credit Facility II
66,725,000,000
Sub-total 335,355,000,000
Subsidiaries Third Parties
Exim Working Capital Credit Facility
240,067,000,000 The Hongkong and Shanghai Banking Corporation Limited
Combined Limit Facility I 94,052,000,000
Combined Limit Facility II 85,000,000,000
Overdraft 2,483,007,187
PT Bank Negara Indonesia Persero Tbk Overdraft
96,492,611,291 PT Bank ICBC Indonesia
32,877,892,000
11 in Rupiah
Description As of December 31, 2016
PT Bank Mizuho Indonesia 21,497,600,000
Sub-total 572,470,110,478
Total 907,825,110,478
The Company
In December 2010, the Company obtained credit facilities from Lembaga Pembiayaan Ekspor Indonesia, which is also known as Exim, including an export working capital credit facility I KMKE I of up to
USD15,000,000 and an export bill negotiation facility NEW of up to USD1,000,000 denominated in Rupiah currency at the exchange rate prevailing at the time of drawdown.
In October 2011, the Company obtained an additional export working capital credit facility II KMKE II of up to Rp70 billion from Exim. In September 2012, the Company obtained an additional export working
capital credit facility KMKE III of up to USD5,000,000 or equivalent to Rp65 billion from Exim.
In 2016, each of the facilities bore an annual interest rate of 10.0 and 5.8 per annum for loans denominated in Rupiah and USD respectively. These facilities will be due on December 22, 2017. The
facilities are collateralized with certain of the Company’s fixed assets, trade receivables and inventories, as well as secured by personal guarantees of certain Directors.
Subsidiaries
Since 2013, Belayan has had in place a working capital credit facility from Exim of up to Rp80 billion, which is used to finance Belayan’s working capital. This facility has a one year tenure and bore an
interest rate of 10.0 per annum in 2016. This facility has been renewed until December 22, 2017. As of December 31, 2016, the outstanding balance under the working capital credit facility amounted to Rp80
billion.
On December 5, 2016, Belayan obtained a second export working capital credit facility of up to Rp150 billion from Exim. This facility bears an annual interest rate of 10.0 per annum. As of December 31,
2016, the outstanding balance under the working capital credit facility amounted to Rp100,067,000,000.
On September 7, 2016, Intera obtained a transactional export working capital credit facility from Exim of up to Rp79 billion, with a tenure of one year and an interest rate of 10.0 per annum. As of December
31, 2016, the outstanding balance of this facility amounted to Rp60 billion.
Under the abovementioned facilities, the Company must obtain prior approvals for: •
amending the Articles of Association of the Company or changing the Company’s status; •
consolidating the business, investing in or buying shares of another company; •
conducting any merger or acquisition, except in accordance with government policy; and •
distributing dividends or business profit in any form and in any amount to the shareholders. The Company is also required to maintain the debt-to-equity ratio at no more than eight times.
The Company has obtained written approval from Exim No. BS.0090PBS 042017 dated April 28, 2017 in relation to the negative covenants disclosed above to undertake the Initial Public Offering.
In addition, there was a change in Credit Agreement No. 64 dated December 22, 2010, Article 14, regarding matters that must be implemented by the Company in order to be able to conduct the Initial
Public Offering, as follows:
12
1 The Company has to report to Exim any of the following corporate actions to Exim at least seven working days prior to such action:
- lending money to anyone including affiliated companies except as a result of normal
business; -
amending the Company’s Articles of Association or changing the status of the Company; -
changing or allowing the Company’s capital structure to be changed; and -
paying dividends or operating profit in any form and in any amount to its shareholders, except in order to improve the Company’s capital structure.
2 Allowing any and all other actions required or performed by the Company in connection with the implementation of the Initial Public Offering so long as it does not affect the operational activities
of the Company and its ability to comply with the covenants and financial obligations to Exim. In 2009, Intertrend obtained from the The Hongkong and Shanghai Banking Corporation Limited a
combined limit facility comprising an export packing credit and loan against export facility of up to USD2,500,000 and a treasury facility of up to USD50,000. In October 2010, Intertrend obtained an
additional document against acceptance facility which is included in the combined limit facility. In 2015, Intertrend amended the combined limit credit facility, increasing the available facility to USD7,000,000
and treasury facility to USD400,000 and obtained an additional credit facility in the form of the combined limit facility 2 for export packing credit and loan against export facility of up to Rp85 billion and an
overdraft facility of up to Rp2.5 billion.
The credit facilities bore an annual interest rate of 6.0 for loans denominated in USD and 12.5 for loan denominated in Rupiah in 2016. These facilities were due on November 2, 2016. The credit facilities
have been fully repaid with the proceeds from the working capital credit facility and term loan from PT Bank Negara Indonesia Persero Tbk the BNI on March 2, 2017. These facilities collateralized by
Intertrend’s certain inventories and personal guarantees of Hendro Rusli, Halim Rusli and Widjaja Karli.
Intertrend is required to comply with several restrictions, among others, Intertrend must obtain, prior approval for:
• distributing dividend or capital to the shareholders or Directors.
• pledging or mortaging moveable asset, any mortage right or guarantee right for property or
income. •
granting loans or liability. •
granting loans to another company or other people except for business practice. •
maintaining the financial ratios as follows: a. minimum current ratio one time.
b. maximum gearing ratio 1.25 times. c. minimum interest service coverage ratio one time.
On October 29, 2012, Interkraft obtained a working capital credit facility from BNI in the form of overdrafts and revolving loan facility of up to Rp20 billion and Rp50 billion, respectively. This facility is
used for Interkraft’s working capital and refinancing requirements. Interkraft also obtained export credit and foreign exchange line facilities of up to USD5,000,000 and USD1,000,000, respectively. On
December 10, 2015, Interkraft amended its credit facility into a revolving working capital facility of up to Rp77 billion. In December 22, 2016, Interkraft amended its revolving loan facility to an overdraft facility of
up to Rp97 billion. On March 2, 2017, Interkraft obtained a revolving loan facility from BNI with a maximum amount of Rp78 billion for working capital.
These facilities bore an interest rate of 11.5 per annum in 2016. These facilities will be due on December 19, 2017 and are collateralized by certain accounts receivable, inventory and fixed assets of
13
Interkraft, a corporate guarantee fromInterkraft, as well as personal guarantees from Widjaja Karli, Halim Rusli and Hendro Rusli.
On March 2, 2017, Intertrend obtained a working capital credit facility and term loan from BNI of up to Rp205 billion and Rp35 billion respectively which will be used as additional working capital including the
repayment of the credit facility from The Hongkong and Shanghai Banking Corporation Limited.
Interkraft is required to comply with several restrictions, including obtaining prior approval for: •
changing the Company’s legal status and its Articles of Association; •
using the Company’s funds which are funded by the bank’s credit facility for purposes not in the ordinary course of business;
• selling or pledging the company’s asset to other parties;
• distributing operating profit and dividend to the shareholders;
• conducting merger, acquisition, or reorganization or investing in another company;
• changing the scope of business;
• withdrawing the paid-in capital;
• maintain the financial ratios as follows:
a. minimumcurrent ratio 1 time; b. maximum debt to equty ratio 2.5 times;
c. minimum debt to service coverage ratio 100.0; and d. minimum receivables and inventories ratio to working capital credit facility ratio 110.0.
With regard to the negative covenants from BNI as mentioned above, the Company has obtained a written approval from BNI No. LMC22.5354R dated April 25, 2017 See Note 30 to pay dividends.
In 2014, Intertrend obtained a credit facility from PT Bank ICBC Indonesia in the form of a pre-export financing non-LC of up to USD2,500,000. This facility bore an annual interest rate of 5.8 for loans
denominated in USD in 2016 and 12.8 for loans denominated in Rupiah in 2016. This facility will be due on September 26, 2017. This facility was collateralized with certain of Intertrend’s certain inventories
and trade receivables as well as personal guarantees of Halim Rusli, Hendro Rusli and Widjaja Karli.
On December 15, 2016, Interkayu obtained a revolving loan facility from PT Bank Mizuho Indonesia of up to USD2,000,000 for a one-year tenure. This facility bore an interest rate at 2.0 per annum. As of
December 31, 2016, the outstanding balance under this facility amounted to USD1,600,000.
b. Trade Payables
As of December 31, 2016, the outstanding balance of the Company’s trade payables was Rp72,604,179,566. The breakdown of the Company’s trade payables as of December 31, 2016 is as
follows:
in Rupiah
Description As of December 31, 2016
Third Parties Import
Gold Year Industrial Ltd. 4,043,230,631
Akzo Nobel Coating Vietnam, Ltd 2,372,704,561
Others each below Rp2 billion 5,182,461,547
Sub-total 11,598,396,739
Local PT Propan Raya ICC
6,142,722,044 PT Karya Agung Abadi
3,119,018,168 PT Jatisari
2,134,155,730
14 in Rupiah
Description As of December 31, 2016
Others each below Rp2 billion 49,609,886,885
Sub-total 61,005,782,827
Total 72,604,179,566
Based on currency
in Rupiah
Description As of December 31, 2016
Rupiah 66,677,460,803
USD 5,926,718,763
Total 72,604,179,566
Based on age
in Rupiah
Description As of December 31, 2016
1 – 30 days 52,409,181,122
31 – 60 days 7,534,637,490
61 – 90 days 3,999,228,604
90 days 8,661,132,350
Total 72,604,179,566
Trade payable is payable without collateral and interest.
b. Other Payables
As of December 31, 2016, the outstanding balance of the Company’s other payables was Rp146,969,244,916. The breakdown of the Company’s other payables as of December 31, 2016 is as
follows:
in Rupiah
Description As of December 31, 2016
Related Party
PT Integra Indo Lestari ILL 141,314,372,925
Third Parties Synergy Alam Corporation
1,680,353,625 Others each below Rp1 billion
3,974,518,366
Total 146,969,244,916
Based on the loan agreeements dated December 23, 2015 between Intertrend, Narkata, Belayan, Integriya, and IIL, IIL agreed to grant a loan facility of up to Rp20 billion, Rp17.1 billion, Rp42.5 billion,
and Rp67.9 billion to Intertrend, Narkata, Belayan and Integriya respectively. The loan bore an interest of 12.0 per annum and was due on December 31, 2016.
On March 1, 2016, the Company obtained a loan from Synergy Alam Corporation the SAC of up to Rp34,734,666,370. The loan bears no interest and has a maturity date of January 31, 2017. On
December 31, 2016, the outstanding balance of other payables to SAC amounted to Rp1,680,353,625.
c. Taxes Payable
As of December 31, 2016, the outstanding balance of the Company’s taxes payable was Rp43,462,855,487. The breakdown of the Company’s taxes payable as of December 31, 2016 is as
follows:
15 in Rupiah
Description As of December 31, 2016
The Company Income Tax
Article 4 2 37,772,400
Article 15 32,996,923
Article 21 200,201,642
Article 22 37,714,275
Article 23 96,795,164
Article 29 of 2016 20,765,451,078
Sub-total 21,170,931,482
Subsidiary Value Added Tax
2,107,191,979 Income Tax
Article 4 2 53,182,936
Article 15 18,207,666
Article 21 46,943,458
Article 22 39,566,409
Article 23 331,309,261
Article 25 325,531,399
Article 29 of 2016 19,138,174,147
Article 29 of 2015 231,816,750
Sub-total 22,291,924,005
Total 43,462,855,487
d. Advance from Customers
As of December 31, 2016, the outstanding balance of the Company’s advance from customers was Rp72,604,179,566. The breakdown of the Company’s advance from customers as of December 31, 2016
is as follows:
in Rupiah
Description As of December 31, 2016
Third Parties
PT Karya Cipta Sukses Anugerah 7,008,142,782
PT Karya Cipta Sukses Selaras 3,941,889,521
PT Pakuwon Permai 2,998,550,728
Condor Manufacturing Furniture Ltd. 2,814,789,465
Casana Furniture Corporation 2,339,294,100
Broyhill Furniture Industries, Inc. 1,465,100,000
Others each below Rp1 billion 4,225,050,592
Total 24,792,817,188
2. Non-Current Liabilities a. Long-Term Bank and Non-Bank Financial Institution Loans
