These consolidated financial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003 and 2002 Expressed in rupiah, unless otherwise stated
20
5. TRANSACTIONS AND ACCOUNTS WITH RELATED PARTIES continued
d. The balances of accounts with related parties arising from non-trade transactions are as follows:
2003 2002
Due from Related Parties Non-Current Officers
and employees
67,140,391,307 45,202,868,409
PT Cibinong Center Industrial Estate 988,856,172
545,987,625
Total 68,129,247,479
45,748,856,034
Due to Related Party Non-Current PT Pama Indo Mining
1,819,921,011 7,500,993,255
Long-term Loans
Westdeutsche Landesbank
Girozentrale 92,549,164,778
106,165,968,720 WestLB Asia Pacific Ltd., Singapore
16,549,499,689 18,984,188,340
Total 109,098,664,467
125,150,157,060
The amounts due from officers and employees are being collected through monthly salary deduction.
e. Other transactions with related parties involving amounts over Rp 1 billion are as follows:
2003 2002
Transportation services
Stillwater Shipping
Corporation 39,291,595,990
45,771,903,289 Purchase
of materials
HCT Services Asia Pte., Ltd. 5,419,933,620
- PT
Indominco Mandiri
Indominco -
15,250,194,887
Indominco was no longer considered as related party starting February 23, 2003 see Note 7e.
The other outstanding payablesliabilities to related parties as of December 31, 2003 and 2002 are as follows:
2003 2002
Stillwater Shipping
Corporation recorded as part of “Accrued
Expenses” 1,732,650,907
2,881,473,722 HCT Services Asia Pte., Ltd.
796,852,775 -
PT Indominco
Mandiri -
1,617,742,080
presented as “Trade Payables - Related Parties”
These consolidated financial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003 and 2002 Expressed in rupiah, unless otherwise stated
21
6. INVENTORIES
Inventories consist of:
2003 2002
Finished goods
55,054,132,871 79,369,841,822
Work in-process 87,803,081,247
143,146,246,942 Raw
materials 27,069,939,368
35,359,461,100 Fuel and lubricants
65,041,549,522 114,560,418,847
Spare parts
514,025,317,304 516,174,050,565
Materials in-transit and others 134,338,359
1,433,388,983 Total
749,128,358,671 890,043,408,259
Allowance for obsolescence 40,063,072,423 14,171,601,861
Net 709,065,286,248
875,871,806,398
With the exception of inventories owned by DAP, Indomix and PBI amounting to Rp 6.03 billion, all of the inventories are insured against fire and other risks under a combined insurance policy package
see Note 8.
The inventories are used as collateral for the long-term loans from banks and financial institutions see Note 11.
The changes in the allowance for obsolescence are as follows:
2003 2002
Balance at beginning of year 14,171,601,861
9,427,169,839 Provisions during the year
29,402,108,626 4,744,432,022
Inventories written off during the year 3,510,638,064
-
Balance at end of year 40,063,072,423
14,171,601,861
Management believes that the above allowance for obsolescence 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, 2003 and 2002
amounted to Rp 42,622,773,986 and Rp 44,660,405,544, respectively, and are presented as part of “Advances and Deposits” in the consolidated balance sheets.
These consolidated financial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003 and 2002 Expressed in rupiah, unless otherwise stated
22
7. LONG-TERM INVESTMENTS AND ADVANCES TO ASSOCIATED COMPANIES
