PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2004 and 2003 Expressed in rupiah, unless otherwise stated
20
6. INVENTORIES continued
The inventories are used as collateral for the long -term loans from banks and financial institutions see Note 11.
The movements of allowance for inventory losses are as follows:
2004 2003
Balance at beginning of year 40,063,072,423
14,171,601,861 Provisions during the year
8,076,472,458 29,402,108,626
Obsolete inventory sold during the year 4,064,353,400
- Inventories written off during the year
- 3,510,638,064
Balance at end of year 44,075,191,481
40,063,072,423
Management believes that the above allowance for inventory losses is sufficient to reduce the carrying amounts of inventories to their net realizable values.
The Company made advance payments to several foreign suppliers for the purchase of certain inventories. The outstanding balances of the purchase advances as of December 31, 2004 and 2003
amounting to Rp30,538,307,522 and Rp42,622,773,986, respectively, are presented as part of “Advances and Deposits” in the consolidated balance sheets.
7. LONG-TERM INVESTMENTS AND ADVANCES TO ASSOCIATED COMPANY This account consists of long-term investments and advances to an assoc iated companies. The details
of this account are as follows:
2004
Accumulated Percentage
Equity in Net of
Earnings Ownership
Cost Losses - Net
Carrying Value Investments in Shares of Stock
a. Equity Method PT Cibinong Center Industrial
Estate 50.00
36,624,000,000 16,109,069,629
20,514,930,371 Stillwater Shipping Corporation
50.00 105,500,000
14,303,327,160 14,408,827,160
PT Pama Indo Mining 40.00
1,200,000,000 6,452,102,711
7,652,102,711 PT Indo Clean Set Cement
90.00 464,787,500
464,787,500 -
b. Cost Method Various investees
various 20,000,000
- 20,000,000
Sub-total 38,414,287,500
4,181,572,742 42,595,860,242
Advances PT Indo Clean Set Cement
13,720,944,026 Allowance for doubtful accounts
13,720,944,026 Net advances
-
Total 42,595,860,242
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2004 and 2003 Expressed in rupiah, unless otherwise stated
21
7. LONG-TERM INVESTMENTS AND ADVANCES TO ASSOCIATED COMPANIES continued
