PT. Texmaco Perkasa Engineering, Tbk
Annual Report 2014
ANNUAL REPORT 2014
PT. TEXMACO PERKASA ENGINERING, Tbk
Menara Mulia Lt.19 Suite 1901
Jl. Jendral Gatot Subroto Kav 9-11 Jakarta 12930
Phone : 021 2520656
Fax : 021 5229380
TABLE OF CONTENTS
Information about the Company 2
Highlights of Financial Performance 3
Message From President Commissioner 4
Message to Share holders 6
Organization Chart 8
Management Report 9
Management Analysis and Discussion 14
Operational Information 17
Independent Auditor Report 22
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 1
Information about the Company
PT. Texmaco Perkasa Engineering Tbk was established based on Notarial Deed by Januar Tirtaamidjaja, S.H. No. 29 dated January 12, 1982, as approved by the Minister of Justice Decree No. C2-6030-HT.01.01Th. 84 dated October 24, 1984 and Published in State Gazette No. 30 dated April 12, 1991.
PT. Texmaco Perkasa Engineering Tbk is one of the Indonesian Company engaged in the Machinery and Services Industry in Engineering. The Company began Commercial Operations in 1984. The Company's Production is marketed locally and abroad.
Company’s Representative Office is in Menara Mulia, 19th Floor, Suite 1901, Jalan Jendral Gatot Subroto Kav. 9-11, Karet Semanggi, Setiabudi, South Jakarta 12930. The Company is domiciled in Karawang, West Java, with Factories located in Kendal, Central Java and Karawang, West Java. The Factory located in Karawang is in Kiara payung Village, Klari District, Karawang Regency, West Java Province. Building and Factory Buildings occupy 231,565 M2 of Land. The Company has a different Production Scope between Factory located in Karawang with Factory located in Kendal. The Factory in Karawang is engaged in Industrial Machinery, namely in the form of Automotive Components, Machinery Equipment, etc. Specialty Machinery & Equipment (SME) in the form of Textile Machines, Boilers etc. While the Factory in Kendal is engaged in Foundry and Industrial Machinery.
Some Products that have been widely known to the People of Indonesia are Perkasa Brand, Perkasa Trucks, Perkasa Buses, Weaving Looms, MPV Cars, Tractors and many other Industrial Products.
The following is the Business development report of PT. Texmaco Perkasa Engineering Tbk for 2014. The term Company is used in the entire report refer to PT. Texmaco Perkasa Engineering Tbk and its Subsidiaries.
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 2
Summary of Important Financial Data
The following table presents an overview of the Company's important financial data taken from the Company's financial statements for the years ended on December 31, 2014 which was Audited by Drs. Heroe, Pramono & PARTNERS .
31 December ( Rp. Million )
2014 2013 2012 2011 2010
Current Asset 90,755 74,130 89,747 56,364 41,870
Net Fixed Asset ( Book Value ) 280,914 283,860 287,404 319,228 48,591
Total Assets 690,378 685,297 1,419,561 1,396,220 1,416,756
Total Liabilities 2,905,763 2,849,665 2,413,085 2,297,126 2,287,096
Total Equity (2,215,384) (2,164,368)
(993,524)
(900,906) (870,340)
Sales Income 81,010 68,804 122,964 77,154 42,148
Gross Profit ( Loss ) 41,378 32,331 39,140
(13,519) 2,058
Operating Profit ( Loss ) (318 ) 5,396 20,025
(23,303)
(6,523)
Net Profit ( Loss ) (52,584) (510,835)
(96,267)
(37,188) 74,583
Net Profit ( Loss ) per share *) (25) (572)
(45)
(15) 36
Net Working Capital (2,539,194) (1,091,418) (851,357)
(832,459) (839,548)
Gross Profit Margin (%) 51,08 46,99 31,83 ( 17,52 ) 4,88
Net Profit Margin (%) (0,39) 7,84 16,29 (30,20) ( 15,48 )
Return on Asset (%) NA NA NA NA NA
Return on Equity (%) NA NA NA NA NA
Current Ratio (X) 0,03 0,06 0,10 0,06 0,05
Debt to Asset Ratio (X) 4,21 4,16 1,70 1,65 1,61
Debt to Equity Ratio (X) ( 1,31) (1,32) (2,43) (2,55) (2,63)
*) In Whole Rupiah
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 3
FOREWORD OF PRESIDENT COMMISSIONER
To Shareholders,
On behalf of the Board of Commissioners, allow me on this good opportunity to express my highest appreciation to all members of the Board of Directors for their hard work so far.
The Global Economic Crisis that occurred in recent years had a sustainable impact on Economic growth. The year 2014 was full of challenges for the Indonesian Economy, due to the Economic conditions that still have not shown a significant recovery due to the limited Domestic Consumption along with the Government Budget cut and reduced Investment, making Economic growth slower compared to the previous year.
Indonesia's Economic growth experienced a slowdown and only reached 5 % compared to 2013 which reached 5.6%. The decline in World Oil Price caused a decline in Commodity Prices and caused a reduction in the value of Indonesian Exports. Rupiah weakened, reaching Rp 12,440 per US $ at the end of 2014 and Inflation reached 8.23%.
Amid the unfavorable Economic conditions, the Company's Net Sales increased from Rp 68.804 Billion in 2013 to Rp 81.010 Billion in 2014 or an increase of 18%.
In 2014 operations in our Casting division in Semarang, Central Java experienced an increase compared to the previous year. While our unit in Karawang is still trying to target new Customers and by improving performance because until now it has not been stable due to lack of availability of Working Capital and sufficient resources.
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 4
It is an effort from Management to focus on the Casting Division in order to receive increased orders from Overseas Customers. Management believes that the Company is well-positioned to participate in and contribute to the Economic Development that continues to improve in this Country, after completing ongoing Restructuring and having an influence on financial issues and other resources.
On behalf of the Board of Commissioners, on this occasion we would also like to express our gratitude and high appreciation to the Board of Directors and Employees who have strived to find solutions for the Company's progress.
Also not to forget, We thank all Shareholders and other Parties for their patience and continuously support the Company's Management. May God Almighty always bestow His grace and provide guidance and success for all efforts in the years to come.
Glenny H Kairupan President Commissioner PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 5
MESSAGE TO SHAREHOLDERS
Dear Shareholders,
It is my honor as President Director of PT Texmaco Perkasa Engineering Tbk which I still lead and manage the Company through hard work and of course thanks to the continuous support of all Parties.
As we know that with the change of Government, it has influenced the Business Climate in Indonesia and this condition has caused the Company's Work Plan and Budget cannot be optimally achieved. Even so, we remain optimistic that the Work Plans and Programs that we have made to increase Company Revenues can still be achieved optimally.
As in the previous year the Company continued to focus on increasing Sales in the Foundry Division which had contributed greatly to the continuity of the Company. The Company will continue to rely on its Operations in the Casting Division in Semarang, which from year to year the volume of Exports increased, so that in 2014 the Company continued to produce Export orders.
Due to various unfavorable conditions our operating unit in Karawang is still trying to find New Customers, the lack of orders for unit in Karawang and the lack of adequate Working Capital facilities, decreasing orders along with the Group's Restructuring Process have become the stumbling block for the Company to realize its plans to grow.
However, the Management of PT. Texmaco Perkasa Engineering Tbk continues to strive to look ahead to be able to resolve the Restructuring problem and Capture Market Opportunities to increase revenue in the future.
Management has made the best effort to keep it operating, so the Company is able to get Working Capital before the Restructuring process is complete.
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 6
Furthermore, Management continues to make cost savings as much as possible, looking at the Company's Current Operations, some of the less important lines are reduced and the available inventory is gradually reduced.
On this occasion, we also appreciate and thank for the support and Co-operation of Shareholders, Investors, Banks, Customers, Suppliers and all Employees for their contribution and dedication to PT. Texmaco Perkasa Engineering Tbk .
Ir. Neflizon Abdullah President Director PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 7
Organisation
Mission : Providing the most complete solutions in the field of engineering and high quality engineering products and services with the best technology .
Vision : To be a world‐class Manufacturing and Engineering Company operating in indonesia but giving global services .
ORGANIZATION CHART
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 8
Board of Directors
Site Head
Shop Manager
Quality Control
PPC Store Head
Accounting Head
General Affairs
Tax & MIS Head
Marketing Manager
Site Head
Shop manager Finance Manager General Finance Manager
Quality Control
Store Head
Accounting Head
Marketing Team
PPC
Management Report
Industry Review
The long-term Vision of Indonesia's National Industrial Development is to become "a Strong Industrial Country in the World, "By 2020 Indonesia will become a new developing Industrial Country". This means that in that year National Industry Capability will be recognized by the International Community as a Structural basis for a strong Modern Economy and a Vehicle for Community-oriented Economy. Local Capital Goods and Machinery become the backbone for Industrial development in any Country. Facilities such as Machine Tools, Heavy Engineering and Foundry play an important role in future economic transformation towards the continuity of Business development. In Indonesia, Industry growth targeted in the Period 2010-2025 are estimated above 10% per year, where at this level the Industry's role in Indonesia's GDP can increase significantly.
PT. Texmaco Perkasa Engineering Tbk has made Strategic Investments in this Sector by building complete Facilities that can create products at Competitive Prices and with International Quality Standards. The Company's Operations from Metal Printing to Finished goods are to make Indonesia stand apart, thereby saving high Foreign Exchange through reducing Imports and also contributing to Foreign Exchange earnings through increased Exports.
Facilities and Manufacturing Capabilities of PT. Texmaco Perkasa Engineering Tbk in short are as follows:
Metal Casting Division (Foundry)
Foundry Division in Semarang Unit is one of the Largest and most Modern Facilities include two High-Pressure Molding Lines and three Jerks and squeeze Molding Lines capable of Producing High Quality Gray Iron and SG Iron Precision Castings of all Sizes. Products from this Facility meet stringent quality Standards from International Automotive Manufacturers. It has QS9000, ISO 9001 Accreditation and Australian Government Certification. In addition, the Company has begun implementing Six Sigma Strategies for Manufacturing and supply Castings to meet the requirements of various Industries both inside and outside Indonesia.
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 9
The Main Customers and Products that we provide are :
General Motors Indonesia-Braking Systems & Discs for Opel MPV General Electric Industrial Systems, Canada Locomotives such as CE & PE Frame Heads General Electric Transportation Systems, USA-Various Types of Vinidex Locomotive Castings, Australia - Ductile Iron Pipe Fittings Tyco Australia – High Pressure Pump House PT. Pertamina - Cooling Plate for Molding.
We are one of the Vendors that qualify for Local and International Customers. As a Supplier, we have maintained a good track record by ensuring the supply of good quality Products and timely delivery at competitive prices.
Machine Tools and Manufacturing Components
Machine Tools one of The Company's Business Unit produce a wide range of Lathe Tools including Conventional and CNC (Computer Numerically Controlled), Milling, Drilling and CNC Machining Center Boring Machines, and other Special Machines of various sizes for large volume production. In accordance with the strategic arrangements and availability of Working Capital, this product can be marketed Internationally.
Until this year, the Unit continued to be under minimal operation due to limited Working Capital and awaiting completion of Restructuring.
Heavy Fabrications:
The activities of this division include Fabrication, Machining and Assembly of Large and Heavy Equipment such as Heat Exchangers, Reactors and other Special Tools for Cement, Fertilizer, Petrochemicals, Power Plants, Mining and Sugar Industries.
The Company has the ability to fabricate various types of Metals such as Titanium, Stainless Steel, Alloy Steel and Carbon Steel. The Company also has a Titanium Work Shop. Customer Specifications are met by Products and Engineering, which are in line with International Codes and Standards.
Due to a lack of Capital Support and further development in Restructuring, the unit was forced to temporarily close its activities
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 10
Current situation
The delayed Restructuring coupled with the inability to increase Working Capital will continue to hamper the Company's future plans . The Company has taken appropriate measures to reduce costs as much as possible . This has maintained Operations with ordering efforts that can keep the engine running and in good condition until the Restructuring is complete .
Product Range
Bb
Casting Suspension Brake Components Engine Transmission Flywheel Diesel Engine Crankcase Cylinder Block
Components for use in the Industry Automotive
Heavy Equipment Pressure Vessel Reactors Tank and Storage Vessels Shell and Tube Heat Exchangers Process Columns Gas Turbine Parts
Factories and equipment for use in various industries, including : chemicals , sugar, cement, pulp and paper and rubber .
Machines Tools Computerized Numerical Control (CNC) Lathes
Conventional Lathes Drilling Machines Special Purpose Machines Boring Machines CNC Machining Centers Gantry T y p e CNC Milling GM
2030 for Dies & Mould High Speed Integral Spindle
Machine tools for the production of automotive engine components and engine components Etc .
6000 rpm 15000 rpm CNC Millingfor Dies & Mould
Servo Motor for CNC Machine Drive for High Speed Spindle Fleksibel Modular CNC Machine
F o r u s e i n v e r t i c a l o r h o r i z o n t a l
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 11
Business Field Products Applications
CNC Milling
Special line Index Grinding machine or Index Rotary Table
Automotive Component
Clutch Housing Clutch Manifolds Steering Knuckles
Motorized Vehicle Parts
Marketing and Distribution
The Company continues to strive to market its products to the maximum both for Local Markets and Foreign Markets. Although the Economic Crisis in the Region had a negative impact on the Domestic Market, the Company saw a great opportunity in the Engineering Sector. With low Production Costs and Integrated Operations, the Company has obtained orders within the Country, Southeast Asian Countries and several other Countries.
The Company also plans to participate in several International Engineering Industry Exhibitions and Distribution and Marketing Networks.
Human Resources
To ensure the development of Human Resources Company has implemented new Technologies on an
ongoing basis and to improve Expertise and Productivity, the Company has organized and planned
Training Programs. Each Unit has a Technical Training Center managed by Experts who provide Training
and teaching with Classroom Systems and Work Training Practices in the field. For Models and Cost
estimates, Software Modern designs such as B Jac have been used effectively. The Company has also
developed Six Sigma directly to improve quality by working with GE.
Environment
As a Domestic Company, the Company remains responsible for fully implementing Environmental Management Standards in Indonesia and has a strong commitment to Environmental Protection
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 12
Location and Type of Assets Value of more than 5% of Total Assets
The Company has several assets that are worth more than 5% of the total assets owned. These assets are located in two Factory Locations, namely in Kaliwungu, Central Java and Karawang, West Java. These Assets generally consist of Land, Machinery and Building.
Guaranteed Assets
TPE International Finance Company B.V., with the Company as Guarantor, issued Long-Term Notes. The said Promissory Notes are Secured by Land Assets and Immovable Assets (other than Inventories) owned by the Company located in Karawang - West Java, with a Land Area of 204,480 Square Meters
Dividend
The Company's Dividend Policy is to distribute an Annual Dividend of 15% of the Net Profit if the Net Income earned for the Fiscal Year is less than Rp. 10 billion; Dividends amounting to 20% of Net Income if the Net Income earned for the Fiscal Year is more than Rp. 10 Billion but less than Rp. 50 Billion; Dividends amounting to 30% of Net Income if the Net Income earned for the Financial Year is more than Rp.50 Billion.
The Company does not distribute Dividend for the 2014 Financial Year because the Company is still experiencing Loss.
Stock Price Performance
Effective from December 1, 2004 The Jakarta Stock Exchange suspended the Share Listing (Delisting) from the Exchange according to the BEJ letter No. S-1541 / BEJ-PSR / 10-2004 dated October 19, 2004. Since that date the Shares of the Company are no longer traded on The Exchange.
Subsidiary
The Company currently has one Subsidiary, namely TPE International Finance Company B.V. established under Dutch State Legislation and 100% owned by the Company. It functions as the Company's Financing Institution and has succeeded in issuing US$100 Million Guaranteed Secured Floating Rate Notes (FRN). In connection with the FRN Debt Restructuring Scheme, the Company is currently in the process of submitting a Transfer of Domicile of the Company from Netherlands.
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 13
Management Analysis and Discussion
Review
The Company in carrying out its Business Activities which is divided into four divisions, namely Foundry division, Textile Machinery, Heavy Equipment and Fabrication divisions & Machine Tools division.
Important Financial Data
Like the previous year, the lack of Working Capital facilities had a severe impact on the Company's Financial Performance. Due to limited Working Capital, the Company cannot take advantage of opportunities from several Orders and Business Opportunities. Management is doing its best and working on adequate Working capital, this effort is taken in anticipation of the Restructuring that has not been completed so that the Company's performance has not improved.
The following Financial analysis is based on the Consolidated Financial Statements of the Company and its Audited Subsidiaries.
Business Results of the Company
Net sales
The Company's Net Sales reached Rp. 81 Billion during 2014 increased by around 18% compared to Net Sales in 2013 of Rp. 68 Billion, Export Value this year experienced an increase and Export Sales recorded at Rp. 70.1 Billion or up Rp. 19.8 Billion compared to the previous year's net Export Sales of Rp. 50.23 Billion and Local Sales amounted to Rp. 10.90 Billion decreased by Rp. 7.6 Billion compared to the previous year's Sales of Rp. 18.56 Billion.
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 14
Gross Profit
The Company's Gross Profit in 2014 was Rp. 41.37 Billion, compared to Gross Profit of the Year2013 amounting to Rp. 32.33 Billion.
Operating Profit
The Company's Operating Profit in 2014 was Rp. 3.18 Billion, compared to Operating Income for the year 2013 amounting to Rp. 5.39 Billion.
Net Loss
The Company's Net Loss in 2014 was Rp. 51.016 Billion, compared to the Net Loss in 2013 of
Rp. 1.170,844 Billion.
Auditor's Opinion
The Independent Auditor did not give an Opinion on the Consolidated Financial Statements of the Year 2014 regarding the existence of significant uncertainty regarding the Company's ability to maintain its Business continuity.
Economy Crisis
The Design Industry and the Infrastructure Sector are heavily affected in this Economic Crisis which has a negative impact. Even so Investors have begun to have a sense of confidence back in Indonesia and several Projects sponsored by the Private and Government will be restarted, the Domestic Engineering Sector has also improved. The situation as before has impacted the Company's Performance. Meanwhile, the Company has established itself as a Supplier of reliable Heavy Equipment on the International Market.
Raw Material
The Company uses several types of Steel obtained from various Domestic and Foreign Suppliers. The delay in receiving Raw Materials and the sharp difference in Purchase prices can affect the smoothness of the Production process can directly affect the Profitability and Performance
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 15
Financial Restructuring
The Economic Crisis in the Region and the decline in the Local Currency Exchange Rate against Foreign Currencies and the increasingly difficult to obtain Working Capital Facilities have had an impact on the Company's Performance.
The Company's Debt to the Indonesian Bank Restructuring Agency (IBRA) was transferred to PT. Jaya Perkasa Engineering (JPE) and in August 2002, the Company and JPE entered into an Individual Restructuring Agreement (IRA).
The entire process of Restructuring of the Company's Debts to JPE has been completed with several conditions that must be fulfilled (Conditions Precedent and Conditions Subsequent) and is currently in the implementation stage.
On December 27, 2002, through EGM, the Company obtained approval from the Shareholders on the plan to increase the Company's Capital in connection with the conversion of its Debt into Capital in accordance with the IRA. The completion of the Restructuring Process is expected to provide stability in the Company's Financial condition.
Subsidiary
The Company's Financial Statements for the Period ended December 31, 2005 are consolidated Financial Statements with Subsidiaries, TPE International Finance B.V.
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 16
Company Information
Date of Establishment : January 12, 1982
Listing of shares on the Jakarta Stock Exchange
1. Public Offering in February 1993
Listing 21 Million Shares on March 11, 1993 on the Jakarta Stock Exchange.
2. Limited Public Offering-I in December 1993
On December 22, 1993, 84 million shares were listed on the Jakarta Stock Exchange, resulting in the total shares of the Company listed on the Jakarta Stock Exchange to 105 million shares.
3. Stock split in April 1995
With the stock split, since April 4, 1995 the number of shares The company listed on the Jakarta Stock Exchange was 210 million .
4. Bonus Shares and Dividend Shares in April 1995
The Company has distributed Bonus Shares and Dividend Shares totaling 33.6 Million Shares on April 17, 1995. Thus the number of the Company's Shares listed on the Jakarta Stock Exchange after the distribution of Bonus Shares and Dividend Shares is 243.6 Million Shares .
5. Limited Public Offering II in November 1997
The Company has made a Limited Public Offering II of 1,802.64 Million Shares which were listed on the Jakarta Stock Exchange on November 21, 1997. As such, the number of Shares listed on the Jakarta Stock Exchange became as many as 2,046.24 Million shares .
6. Suspension of Securities Listing
Delisting of the Securities Listing from the Jakarta Stock Exchange effective from the 1st December 2004 .
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 17
Debt to Share Conversion
On May 31, 2016 Nur Aziz, et al had submitted PKPU against the Company. Then based on the Judgement by Central Jakarta Commercial Court No.54 / Pdt.Sus-PKPU / 2016 / PN.Niaga.Jkt.Pst. dated June 20, 2016 the Company stated in PKPU (Postponement of Debt Payment Obligations).
Then on March 15, 2017 Creditors Meeting was held with an Agenda of Peace Plan proposed by Debtors as well as Voting for the Peace Plan with a result of 78.28% Separatist Creditors and 89.5% Unsecured Creditors agreeing to the Composition Plan. The Judge stated the validity of the Composition Plan was carried out between Debtors and Creditors, as agreed upon on March 15, 2017.
On March 24, 2017 one of the Creditors has appealed to the M.A, which has rejected the cassation application number: 807 K / Pdt.Sus-Pailit / 2017. On January 23, 2018.
Thus the Company will issue Shares in accordance with the Restructuring Agreement which has been approved and decided by the Panel of Judges of the Commercial Court in Central Jakarta District Court TPE Judgment No: 54 / Pdt.Sus-PKPU / 2016 / PN.Niaga JKT. PST. dated June 20, 2016.
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 18
Capital Structure as at 31 December 2014
Authorized Capital Rp. 7,775,712,000,000, Nominal per share of Rp. 500, - The issued and paid up capital is Rp 1,023,120,000,000, Additional paid-in capital is Rp. 1,005,816,912,571, ‐
Shareholders PT. Multikarsa Investama 56.84% Multi Tree Ltd. B.V.I 12.85% Standard Chartered Bank 6.746% Public 30.31% Board of Commissioners President Commissioner : Glenny H Kairupan Independent Commissioner : Djunaedi Faizin (Deceased on 19 February 2017)
Board of Directors President Director : Ir. Neflizon Abdullah Director : Ir. Victor Benedictus Director : Irajendren
Company Business Activities Includes activities in the Manufacturing of industrial Machinery, Heavy Equipment and Manufacturing and Engineering Services.
Subsidiary
TPE International Finance Company B.V. Representative office Menara Mulia Suite 1901, 19 th Floor Jl. Jend. Gatot Subroto, Kav. 9-11 Karet Semanggi, Setiabudi Jakarta 12930, Indonesia Tel : (62-21) 252-0656 Fax : (62-21) 522-9380
Registered Office Kiara Payung Village Klari District, Karawang, West Java, Indonesia Tel : (62-267) 432-309 Fax : (62-267) 432-312
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 19
Factory Facilities
Factory1 Factory 2 Jl. Raya Kaliwungu Desa Kiara Payung Km.19, Kendal , Kecamatan Klari , Semarang Karawang Jawa Tengah Jawa Barat Indonesia Indonesia Tel : (62-24) 8660-150 Tel : (62-267) 432-309 Fax : (62-24) 8661-234 Fax: (62-267) 432-312
Securities administration Bureau
PT. Texmaco Perkasa Engineering Tbk
Menara Mulia Suite 1901, 19 th Floor
Jln. Jend. Gatot Subroto Kav. 9-11
Jakarta Selatan 12930
Tel: (62-21) 252-0656
Fax: (62-21) 522-9380
Registered Public Accountant Office
Drs. Heroe , Pramono & Rekan
Jl. Prof. DR. Supomo , S.H. No. 3
Jakarta 12870
Tel : (62-21) 830-3044
Fax : (62-21) 829-5575
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 20
The Annual Report and the Financial Statements and other relevant information are the responsibility of the management of PT. Texmaco Perkasa Engineering Tbk and guaranteed the correctness by all Members of the Board of Directors and Board of Commissioners by affixing their respective signatures below :
Glenny H Kairupan Ir. Neflizon Abdullah President Commissioner President Director
Djunaedi Faizin Ir. Victor Benedictus Independent Commissioner Director (Deceased on 19 Feb 2017)
Irajendren Director
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 21
INDEPENDENT
AUDITOR REPORT
2014
PT. Texmaco Perkasa Engineering Tbk. – Annual Report 2014 22
DECEMBER 31, 2014 AND 2013
AND SUBSIDIARY COMPANY
PT TEXMACO PERKASA ENGINEERING Tbk
INDEPENDENT AUDITORS' REPORT
AND
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED
Table of Contents
Directors' Statement of Responsibility for Consolidated Financial Statements
for the years Ended December 31, 2014 and 2013
Independent Auditors' Report 1 - 3
Consolidated Statement of Financial Position as of December 31, 2014 and 2013 4 - 5
6
Consolidated Statement of Changes in Equity for The Years Ended December 31, 2014 and 2013 7
Consolidated Statement of Cash Flows for The Years Ended December 31, 2014 and 2013 8
Notes to the Consolidated Financial Statement as of December 31, 2014 and 2013 9 - 60
PT TEXMACO PERKASA ENGINEERING Tbk
AND SUBSIDIARY COMPANY
Consolidated Statement of Profit or Loss and Other Comprehensive Income for The Years Ended
December 31, 2014 and 2013
Report No. : LT / 102 / HPR-5 / XI / 2015
Page :4
A S S E T S Notes 2 0 1 4 2 0 1 3
Rp Rp
CURRENT ASSETS
Cash and cash equivalents 2c,2d,2e,3,33,34 30.644.768.715 30.981.633.782
Trade accounts receivable 2d,2f,4,33,34
Related parties 2.834.217.208 5.547.725.657
Third parties 38.455.122.591 25.514.574.888
Other receivables 4.363.990.502 2.388.694.298 Stock Inventories 2g,5
9.985.890.688 5.484.806.917
Advances 6 1.175.094.476 770.642.836
Prepaid taxes 7 3.296.281.930 3.442.160.185
Total Current Assets 90.755.366.110 74.130.238.563
NON CURRENT ASSETS
Other receivables related parties 2d,8,33
114.301.933.804 123.758.753.347
Restricted Bank Account 2d,3,33
- -
Stock Investment 2k,9
- -
Deferred Tax Assets 2o,31 204.406.389.708 202.838.368.447
Fixed assets 2i, 2j, 10
2i, 2j, 10 280.914.893.341 283.860.541.308
Other assets net 11 - 709.220.851
Total non current assets 599.623.216.853 611.166.883.953
TOTAL ASSETS 690.378.582.963 685.297.122.516
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Net of allowance of Rp26.066.562.773,- and
Rp21.464.581.731,- respectively in 2014 and 2013)
(Net of allowance of Rp3,068,959,357, -
respectively in 2014 and 2013)
(Net of accumulated depreciation of
Rp428,087,349,393, and Rp424,329,160,021,
respectively in 2014 and 2013)
(Net after deducting the allowance for obsolete
inventories amounting to Rp266,675,758,236, -
respectively in 2014 and 2013, -)
(Net of allowance for doubtful accounts -
amounting to Rp9,471,517,291 and
Rp6,841,926,810, respectively in 2014 and 2013)
(Net impairment the investment value of
Rp933,253,905,648, respectively, in 2014 and
2013)
See notes to the consolidated financial statements which are
integrated part of the overall financial statements
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 5
LIABILITIES AND EQUITY Notes 2 0 1 4 2 0 1 3
Rp Rp
SHORT-TERM LIABILITIES
Bank loans 2c,12,34,35b 26.671.957.120 26.133.801.072
Notes payable 13,34,35b 165.459.200.000 162.151.020.000
Trade accounts payable 2d,14,33,34
Third parties 34.038.092.699 28.291.531.040
Related parties 13.825.564.217 13.825.564.217
Other payables 15 6.411.528.682 7.333.513.755
Taxes payable 2o,16 9.682.528.811 9.387.449.705
Accrued expenses 17 14.713.150.737 14.794.530.114
Interest payable 18,34 81.410.111.343 79.325.429.300
Current maturities of long-term liabilities 2d,2j,34,35b
Finance lease 19 6.785.169.110 6.657.971.813
Long-term loans 20 833.867.572.961 817.648.058.427
Total Short-Term Liabilities 1.192.864.875.680 1.165.548.869.443
NON CURRENT LIABILITIES
Accrued interest 18,34 21.881.308.641 21.439.812.784
Post-employment benefits obligations 2n,,36 3.271.322.852 3.359.976.922
Deferred tax liabilities 2o,31 - -
Other payable related parties 2d,33 272.541.914.929 271.258.081.446
Long term loan 2d,20,34,35b 124.703.720.518 122.658.612.562
Long term notes 2c,2d,21,34,35b 1.290.500.000.000 1.265.400.000.000
Total Non Current Liabilities 1.712.898.266.940 1.684.116.483.714
EQUITY (EQUITY DEFFICIENCIES)
Capital stock 22
1.023.120.000.000 1.023.120.000.000
Additional paid-in capital - Net 23 1.005.816.912.571 1.005.816.912.571
Deficit (4.244.321.472.228) (4.193.305.143.212)
Total Equity (Equity Deficiencies) (2.215.384.559.657) (2.164.368.230.641)
TOTAL LIABILITIES AND EQUITY
(EQUITY DEFFICIENCIES) 690.378.582.963 685.297.122.516
See notes to the consolidated financial statements which are
integrated part of the overall financial statements
Authorized capital of Rp.7.775.712.000,000, - divided
into 8,184,960,000 series A share in nominal value of
Rp.500, - and 73,664,640,000 series B share nominal
Rp.50, - in 2014 and 2013
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
The issued and fully paid capital of 2,046,240,000
Series A shares in 2014 and 2013
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 6
Notes 2014 2013
Rp Rp
NET SALES 2d,2m,24,33 81.010.003.797 68.804.817.275
COST OF GOODS SOLD 2d,2g,2m,25,26,33 (39.631.327.530) (36.473.428.982)
GROSS PROFIT / (LOSS) 41.378.676.267 32.331.388.293
OPERATING EXPENSES 2m,27
Selling expenses 1.067.882.528 5.020.069.909
General and administrative expenses 40.629.294.659 21.915.075.739
Total Operating Expenses (41.697.177.187) (26.935.145.648)
OPERATING PROFIT / (LOSS) (318.500.920) 5.396.242.645
OTHER INCOME / (EXPENSES)
Interest income 28 11.678.113 20.915.574
Tax penalties (26.084.469) (45.047.992)
Interest expense and bank administration 29 (710.240.761) (737.548.864)
Gain (Loss) on foreign exchange rates - net 2c,30,34 (42.479.469.838) (490.997.212.412)
(Allowances) recoveries receivable /advances (11.563.524.723) (26.922.536.538)
Others -Net 2.471.569.353 2.147.117.604
Other income (expenses) - Net (52.296.072.325) (516.534.312.628)
PROFIT / (LOSS) BEFORE SUBSIDIARY (52.614.573.245) (511.138.069.983)
PROFIT(LOSS) FOR THE SUBSIDIARY 30.222.967 303.313.356
PROFIT / (LOSS) BEFORE TAX (52.584.350.278) (510.834.756.627)
INCOME TAX EXPENSES 2o,31 1.568.021.262 273.244.620.030
NET PROFIT / (LOSS) FOR THE CURRENT YEAR (51.016.329.016) (237.590.136.597)
Other Comprehensive Income / Expenses - (933.253.905.648)
TOTAL COMPREHENSIVE PROFIT / (LOSS) (51.016.329.016) (1.170.844.042.245)
Profit / (Loss) attributable to:
Owners of The Company (51.016.329.016) (1.170.844.042.245)
Non-controlling interests - -
(51.016.329.016) (1.170.844.042.245)
Total Comprehensive Profit / (Loss) - attributable to:
Owners of The Company (51.016.329.016) (1.170.844.042.245)
Non-controlling interests - -
(51.016.329.016) (1.170.844.042.245)
NET PROFIT / (LOSS) PER SHARE 2p,32 (25) (572)
See notes to the consolidated financial statements which are
integrated part of the overall financial statements
PT TEXMACO PERKASA ENGINEERING Tbk
AND SUBSIDIARY COMPANY
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 7
Additional capital Non Controling Total
Notes Capital stockPaid - net
Unappropriated Appropriated Total Interest Equity
Balance as of December 31, 2012 1.023.120.000.000 1.005.816.912.571 (3.023.679.100.967) 1.218.000.000 (993.524.188.396) - (993.524.188.396)
Comprehensive loss for the current year - - (1.170.844.042.245) - (1.170.844.042.245) - (1.170.844.042.245)
Balance as of December 31, 2013 1.023.120.000.000 1.005.816.912.571 (4.194.523.143.212) 1.218.000.000 (2.164.368.230.641) - (2.164.368.230.641)
Comprehensive loss for the current year - - (51.016.329.016) - (51.016.329.016) - (51.016.329.016)
Balance as of December 31, 2014 1.023.120.000.000 1.005.816.912.571 (4.245.539.472.228) 1.218.000.000 (2.215.384.559.657) - (2.215.384.559.657)
See notes to the consolidated financial statements which are
integrated part of the overall financial statements
PT TEXMACO PERKASA ENGINEERING Tbk
AND SUBSIDIAR COMPANY
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
Profit Balance / (Loss)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 8
2 0 1 4 2 0 1 3
Rp Rp
CASH FLOWS FROM OPERATING ACTIVITIES
Receipt from customers 79.330.450.600 89.052.859.647
Payments to suppliers (41.814.192.632) (36.397.302.146)
Payment of operating expenses (4.012.755.527) (5.237.544.520)
Tax receipts (payments) (1.360.012.904) (3.240.735.090)
Interest income 11.678.113 20.915.574
Other income / expenses 1.030.868.000 1.131.254.646
Payment of salaries, wages and benefits (13.807.416.005) (13.795.131.157)
Bank administrative Expenses (124.095.996) (137.216.441)
Net cash flow from operating activities 19.254.523.649 31.397.100.513
CASH FLOWS FROM INVESTING ACTIVITIES
Addition of fixed assets (225.920.000) (729.871.833)
Net cash flow used for investing activities (225.920.000) (729.871.833)
CASH FLOWS FROM FINANCING ACTIVITIES
Receivables from related parties (17.484.767.556) (36.863.046.971)
Debt to related parties (2.092.321.355) (2.561.218.744)
Net cash flow available from / (used for) financing activities (19.577.088.911) (39.424.265.715)
NET INCREASE / (DECREASE) IN CASH (548.485.262) (8.757.037.035)
Effect of changes in exchange rates on cash and cash equivalents 211.620.195 6.302.147.011
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 30.981.633.782 33.436.523.806
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 30.644.768.715 30.981.633.782
See notes to the consolidated financial statements which are
integrated part of the overall financial statements
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
Report No. : LT/102/HPR-5/XI/2015 Page : 9
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
1. GENERAL
a. Establishment and General Information
PT Texmaco Perkasa Engineering Tbk (Company), was established within the framework of the Domestic
Investment Law No. 6 of 1968 as amended by. Law No. 12 of 1970 based on Notarial deed by Januar Tirtaamidjaja, SH in Jakarta No. 29 dated January 12, 1982. The deed of establishment was approved by the Minister of Justice in decision letter No. C2-6030-HT.01.01.Th.84 dated October 24, 1984 and published in State Gazette No. 30 dated April 12, 1991, Supplement No. 1040. The Articles of Association of the Company have been amendment several times, most recently with the Notarial deed in Jakarta from Notary Sutjipto, SH No. 92 dated December 27, 2002. This amendment was approved by the Minister of Justice and Human Rights of the Republic of Indonesia Number: C-10696 HT.01.04.TH.2003 dated May 14, 2003.
In accordance with Article 3 of the Company's Articles of Association, the scope of the company’s activities mainly cover business and services technique and engineering. The company is domiciled in Karawang, West Java, with factories located in Kendal, Central Java and Karawang, West Java. The Company's representative office is located at Menara Mulia Building, Suite 1901, 19th Floor, JL.Jend. Gatot Subroto Kav. 9-11, Karet Semanggi, Setiabudi, Jakarta 12930.
The company commenced commercial operations in 1984. The Company's products are marketed both at local and export.
The company is one of the group of companies owned by the Texmaco Group.
Company management according to Deed No. 88 concerning Statement of Meeting Resolutions dated November 20, 2014 by Aryanti Artisari, S.H, M.Kn. notary in Jakarta as follows:
President Commissioner : Glenny Humphrey Kairupan Independent Commissioner : Djunaedi Faizin
President Director : Ir. Neflizon Abdullah Director : Irajendren Director : Ir. Victor Benedictus
The number of permanent employees of the Company and subsidiary as of December 31, 2014 and 2013 were 383 and 290 respectively
b. Subsidiary Company
Year 2014
The company has, directly or indirectly, hold the shares of the following subsidiary:
Year of Total Ownership commercial Assets
Subsidiary Domicile Business type percentage operation December 31, 2014 TPE International Finance Company B.V (TPE B.V) Netherlands Financial services 100 % 1997 Rp. 1,296,023,873,615
Report No. : LT/102/HPR-5/XI/2015
Page : 10
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
1. GENERAL (Continued)
b. Subsidiary Company (Continued)
Year 2013
Year Amount
Percentage operations Asset Subsidiary Domicile Type of business ownership commercial December 31, 2013
TPE International Finance Company B.V (TPE B.V) Netherlands Financial services 100 % 1997 Rp. 1,269,874,195,779
TPE BV was founded in 1997.
As part of the restructuring scheme approved by the creditor, the domicile of TPE International Company B.V. transferred from the Netherlands to Mauritius. Currently the legal settlement of new bonds is being prepared. Until the completion of the examination has not been realized.
c. Company Public Offering
On December 21, 1992, the Company obtained notification of the effectiveness of the Share Registration from the Chairman of the Capital Market Supervisory Agency (BAPEPAM) with his letter No. S-2002 / PM / 1992 concerning to make a public offering of 1,000,000 shares with a nominal value of Rp 1,000 per share at an offer price of Rp 4,800 per share.
On November 26, 1993, the Company obtained notification of the effectiveness of the Share Registration from the Chairman of BAPEPAM No. S-2028 / PM / 1993 concerning to offer shares to shareholders 84,000,000 shares with a nominal value of Rp 1,000 per share on the basis of calculating four new shares for every five shares held by shareholders.
On December 23, 1994, the Company obtained notification of the effectiveness of the Company's Registration Statement from the Chairman of BAPEPAM No. S-2067 / PM / 1994 concerning changes in the nominal value of shares from Rp. 1,000 to Rp. 500 per share.
On November 4, 1997, the Company received notification of the effectiveness of the Company's Registration Statement from the Chairman of BAPEPAM No. S-2555 / PM / 1997 concerning to issue a Limited Public Offering II to shareholders with Pre-emptive Rights amounting to 1,802,640,000 shares with a nominal value of Rp 500 per share on the basis of calculating thirty-seven new shares for every five shares held by shareholders.
The Jakarta Stock Exchange has decided to delist on October 19, 2004. The delisting was effective from December 1, 2004.
Report No. : LT/102/HPR-5/XI/2015 Page : 11
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
2. ACCOUNTING POLICIES The consolidated financial statements are prepared based on the Financial Accounting Standards in Indonesia and approved by the Board of Directors on November 30, 2015.
The following are significant accounting policies adopted in preparing the consolidated financial statements.
a. Presentation of Consolidated Financial Statements
The reporting currency used in the preparation of the consolidated financial statements is Indonesian Rupiah (Rp).
The consolidated financial statements are prepared using accounting principles and practices generally accepted in Indonesia.
The consolidated financial statements are prepared based on the historical value principle, except for certain accounts which are prepared on the basis of other measurements as described in the accounting policies of each account.
The consolidated statements of cash flows are prepared using the direct method by classifying cash flows into operating, investing and financing activities.
The preparation of the consolidated financial statements in accordance with the Indonesian Financial Accounting Standards requires management to make estimates and assumptions that affect the number of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting period. Actual results may differ from the estimated amount
b. Principles of Consolidation
The consolidated financial statements include the financial statements of the Company and subsidiary with ownership of more than 50%, both directly and indirectly. Balances and transactions including unrealized gains / losses between Companies are eliminated to reflect the financial position and results of operations of the Company and subsidiary as a business entity.
Subsidiary share purchase transactions conducted in the context of reorganizing entities within the same business group are restructuring transactions between entities under common control. The difference between the acquisition price and the book value of a subsidiary of a restructuring transaction between entities under common control is recorded in the account "Difference in Value of Restructuring Transactions of Entities Under Common Control" which is presented as an element of Equity. The difference in minority ownership (the difference between the transfer price and the net assets of a subsidiary), because the amount is not significant, is credited to the operations presented in the financial statements at the time the acquisition occurs.
c. Transactions and Translation of Financial Statements in Foreign Currencies
Bookkeeping of the Company and subsidiary, except TPE BV is held in Rupiah. Transactions during the current year in foreign currencies are recorded at the rates of exchange prevailing at the time the transactions are made. On balance sheet date, monetary assets and liabilities denominated in foreign currencies are translated to reflect the rates of exchange prevailing at that date. The resulting foreign exchange gain or loss is credited or charged to the income statement for the year.
Report No. : LT/102/HPR-5/XI/2015 Page : 12
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
2. ACCOUNTING POLICIES (Continued)
c. Transactions and Translation of Financial Statements in Foreign Currencies (Continued)
Bookkeeping of TPE BV is held in the Netherlands Guilders. For the purpose of presenting the consolidated financial statements, all assets and liabilities of TPE BV are translated using the middle rate of export bills issued by Bank Indonesia at the balance sheet date.Revenues and expenses are translated using the average exchange rate for the current period. Adjustments to the results of the translation are credited to the current operation.
d. Related Party Transactions
Related parties are:
1) Companies either directly or through one or more intermediaries, control or are controlled by, or are under common control, with the Company (including holding companies, subsidiary and fellow subsidiary);
2) Associated companies;
3) Individuals who have, either directly or indirectly, an interest in voting rights in the Company that has a
significant effect, and close family members of such individuals (which is meant by their immediate family members who can be expected to influence or influence such individuals in their transactions with Company);
4) Key employees, namely those who have the authority and responsibility to plan, lead and control the
activities of the Company, which include commissioners, directors and managers of the Company and close family members of such people; and
5) A company in which a substantial interest in voting rights is owned directly or indirectly by each person
described in item (3) or (4), or each person has a significant influence on the Company. This includes companies that have the same key management members as the company.
All transactions with related parties, whether or not carried out with interest rates or prices, the same terms and conditions as those made with third parties, are disclosed in the consolidated financial statements.
e. Cash and cash equivalents
Cash and cash equivalents consist of cash, banks and all investments with maturities of three months or less from the date of acquisition and which are not guaranteed and restricted in use
f. Accounts receivable
Trade accounts are recorded in gross amounts less allowance for doubtful accounts. The Company provides allowance for doubtful accounts based on a review of the individual receivable accounts at the end of the year.
g. Inventories
Inventories are stated at cost or net realizable value, whichever is lower. Cost is determined by the weighted average method.
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PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
2. ACCOUNTING POLICIES (Continued)
g. Inventories (Continued) Allowance for inventory that is obsolete or slow moving is determined based on estimates of the state of each type of inventory.
PSAK No. 14 (Revised 2008) - Inventories In September 2008, the Indonesian Institute of Accountants (IAI) issued a revised accounting standard for inventory in place of PSAK No. 14 - Inventory.
Fundamental changes to the revised standard include the Company must use the same cost formula for all inventories which have the same properties and uses and purchase of inventory with Deferred settlement terms, the difference between the purchase price for normal credit terms and the amount paid recognized as interest expense during the financing period.
The company is currently evaluating the impact of the implementation of these standards on financial statements.
h. Prepaid expenses
Prepaid expenses are amortized over the benefit of each cost using the straight-line method.
i. Fixed Assets - Direct Ownership
Fixed assets, except for certain assets that are revalued, are stated at cost less accumulated depreciation. Certain assets have been revalued based on the results of an assessment conducted by an independent appraiser in accordance with applicable government regulations. Increase in asset value because the revaluation is credited on the difference in revaluation of fixed assets in the equity account.
Depreciation is calculated using the straight-line method, based on the estimated economic useful lives of the assets, as follows
The useful life % per year
Building and infrastructure 20 (years) 5 Machinery and equipment 10 – 16 6.25 - 10 Vehicles and office equipment 5 20
In accordance with the Statement of Financial Accounting Standards, No. 47, "Accounting for Land", acquisition of land after January 1, 2000 is stated based on acquisition costs and not depreciated. Certain costs related to the acquisition or extension of land ownership rights are deferred and amortized over the period of the land rights. Before January 1, 2000, land rights were stated based on acquisition costs and not depreciated. Included in the cost are costs related to the acquisition or extension of land ownership rights.
Report No. : LT/102/HPR-5/XI/2015 Page : 14
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
2. ACCOUNTING POLICIES (Continued)
i. Fixed Assets - Direct Ownership (Continued) If the carrying value of an asset exceeds the estimated recoverable amount, the value is reduced to the recoverable amount, which is determined as the highest value between the net selling value and the value in use.
Maintenance and repair costs are charged to the consolidated statement of income when incurred, expenditures that extend the useful life or provide future economic benefits in the form of increased capacity, quality of production or improvement in performance standards are capitalized. Fixed assets that are no longer used or sold, are excluded from the group of fixed assets and their accumulated depreciation. The gain or loss from the sale of property, plant and equipment is recorded in the consolidated statement of income for the year.
Assets in progress are stated at cost. Such costs include borrowing costs incurred during the construction period arising from the debt used to construct the asset. The accumulated acquisition costs will be transferred to the respective fixed assets when completed and ready for use.
Application of PSAK No. 16 (Revised 2007) - Fixed Assets In 2007, the Indonesian Institute of Accountants (IAI) issued a revision of PSAK No. 16 (Revised 2007) - Fixed Assets which resulted in the possibility of changes in Accounting policies. This PSAK is effective for the preparation of financial statements beginning on or after January 1, 2008.
In accordance with PSAK No. 16 (Revised 2007) - Fixed Assets, the Company is required to choose between the cost method or revaluation method as an accounting policy to measure acquisition costs. The company chose to use the cost method, so that there was no change in accounting policy for the application of PSAK No. 16 (Revised 2007).
j. Financing Lease
Financing leases are classified as capital leases if they meet the following criteria:
1) Lease has the option right to purchase leased assets at the end of the lease term at a price agreed
upon at the time of the start of the finance lease agreement.
2) All periodic payments by the Lease added the residual value can cover the return on acquisition of finance leased capital goods and interest as the profit of the finance leasing company.
3) The minimum lease period is two years
Financing leases that do not meet the above criteria are classified as operating lease transactions.
Assets and liabilities for finance leases are recorded at the cash value of all payments for finance leases added residual value (option price). Leased assets are depreciated using the method and based on the estimated useful lives of the same as direct ownership property (see accounting policy regarding property, plant and equipment).
Report No. : LT/102/HPR-5/XI/2015 Page : 15
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
2. ACCOUNTING POLICIES (Continued)
k. Stock Investment
Investment with ownership of 20% to 50%, either directly or indirectly, is stated at cost, added or subtracted by the associate's profit or loss from the acquisition of the percentage of ownership and reduced by dividends received by the equity method. If there is a permanent decline in value, the carrying amount is reduced to recognize the decrease determined for each investment individually.
The equity value of a subsidiary that is part of an investor company after a subsidiary equity change transaction is greater than the equity value of a subsidiary that is part of the investor's company before the equity change transaction of the subsidiary, then when the investment is released, the transaction difference is recognized as an expense in the period the same at the time the loss is recognized.
l. Deferred Fees
Based on capital market regulations No. 06 / PM / 2000 dated March 13, 2000 which became effective from January 1, 2000, the cost of issuing equity securities is presented as a debit balance in the paid up capital account. Previously, such costs were deferred and amortized using the straight-line method based on the useful life of 5 years. The Company has implemented the regulation and therefore the Company reversed the imposition of share issuance costs from the initial profit balance in early 1999 of Rp. 2,001,420,387.
Costs incurred in the acquisition of Long-Term Pay Notes are deferred and amortized based on the straight-line method over a period of 60 months in accordance with the term of the loan repayment.
m. Revenue and Expense Recognition
Local sales are recognized when delivering goods to customers, while export sales are recognized when the goods are shipped (FOB Shipping Point). Expenses are recognized according to benefits in the year (accrual basis).
n. Post-Employment Benefits Obligations
Employee rights for severance pay, work period awards and compensation in the Company are recognized on the accrual basis. Estimated liabilities recognized relate to services provided by employees up to the balance sheet date and are calculated in accordance with Law No. 13 dated March 25, 2003. Recognition of the obligation is estimated for employee compensation for termination of employment and determination of severance pay, work period pay and Company compensation is the application of accounting policies in accordance with PSAK No. 24 (revised 2004) concerning Employee Benefits which became effective from 1 July 2004. With the adoption of this accounting policy, the estimated liabilities for severance pay, long service pay and compensation in the Company have been recorded in the "Post-Employment Benefits Obligation" account previously in the "Estimated Obligation" account.
Based on management letter no. 015/02 / HRD-TPE / XI / 2003 dated November 3, 2003 concerning laying off employees and Directors Decree No. 0092 / DIR / TPE-Krw / III / 2004 dated March 29, 2004 concerning termination in mass employees of PT. Texmaco Perkasa Engineering Tbk, Karawang.
Report No. : LT/102/HPR-5/XI/2015 Page : 16
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
2. ACCOUNTING POLICIES (Continued)
n. Post-Employment Benefits Obligations (Continued) The decree was approved by the Indonesian Ministry of Manpower and Transmigration, Registrar's Office of the Central Dispute Settlement Committee Number: 1409/1278 / 255-8 / X / PHK / 8-2004 dated August 26, 2004 and Number: 2023/1848 / 110-8 / XI / PHK / 11-2004 dated 30 November 2004.
o. Income tax
The Company and subsidiary calculate income tax based on the Statement of Financial Accounting Standards (PSAK) No. 46, "Accounting for Income Tax".
Current tax expense is determined based on taxable income in the relevant period which is calculated based on the applicable tax rate.
Deferred tax assets and liabilities are recognized for future tax consequences arising from differences in the carrying amounts of assets and liabilities according to financial statements on the basis of the taxation of assets and liabilities. Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for deductible temporary differences. As long as it is possible to use it to reduce taxable income in the future. Deferred tax assets and liabilities are not recognized on the basis of temporary differences arising from goodwill (negative goodwill) or at the initial recognition of assets and liabilities of a transaction that is not a business combination and does not affect both accounting profit and fiscal profit.
Deferred tax is measured using tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is charged or credited in the income statement unless deferred tax is charged or credited directly to equity.
Deferred tax assets and liabilities are presented on the balance sheet on a compensation basis in accordance with the presentation of current tax assets and liabilities.
p. Earnings / Loss per Share
Basic earnings / loss per share is calculated by dividing residual net income / loss by the number of weighted average shares outstanding during the year.
Diluted earnings / loss per share are not presented because the Company does not issue potential dilutive ordinary shares.
q. Use of Estimates
The preparation of consolidated financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting period. Actual results may differ from the estimated amount.
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PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
2. ACCOUNTING POLICIES (Continued)
r. Debt Restructuring
The impact of debt restructuring through modification of requirements without transferring assets or giving shares is recorded prospectively from the time the restructuring is carried out. Gain on debt restructuring is not recognized, except if the carrying amount of the debt (including interest and penalties) exceeds the amount of the principal and future cash payments specified in the new requirements, regardless of its cash value. Gain on debt restructuring, after calculating restructuring expenses and related income tax, is recognized in the income statement in the period of the restructuring and presented as extraordinary items.
s. Segment Information
Segment information of the Company and subsidiary is presented according to business segmentation.
A business segment is a distinguishable component and produces a product or service that is different according to the division of industry or a group of different products or services, especially for customers outside the Company's entity. For the time being. The company and subsidiary run one business segment, namely the production of textile machinery, heavy equipment, machine tools and automotive components
t. Impairment of Asset Value Statement of Financial Accounting Standards (PSAK) No. 48 concerning "Impairment of Assets" which requires management to determine the estimated amount of recoverable amount of an asset if there is an indication that the asset will potentially decrease in value. If the amount that can be recovered from an asset is less than its carrying value, management must recognize the impairment loss of the asset and be charged as a loss for the current year.
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 18
3. CASH AND CASH EQUIVALENTS
This account consists of:
2 0 1 4 2 0 1 3
Rp Rp
Cash
Rupiah 216.010.146 231.490.968
Foreign currency 69.691.654 86.028.982
Total Cash on Hand 285.701.800 317.519.950
Bank
Related parties
Rupiah
PT Bank Putera Multikarsa 1.534.015.502 1.534.015.502
United States Dollar
PT Bank Putera Multikarsa 1.434.943.855 1.434.943.855
Third parties
Rupiah
PT Bank Negara Indonesia (Persero) Tbk 181.104.107 535.627.941
PT Bank Central Asia Tbk 5.884.729 6.184.729
PT Bank Internasional Indonesia Tbk 4.393.353 4.393.353
PT Bank Sumitomo Niaga 95.537 95.537
PT Bank Mandiri - 290.464
PT Bank BSI 96.918.943 41.958.969
PT Bank BRI 10.521.853 23.455.834
Sub Total Bank Account Rupiah 298.918.522 612.006.827
United States Dollar
PT Bank Negara Indonesia (Persero) Tbk 29.935.589.139 29.927.527.494
PT Bank Internasional Indonesia Tbk 35.966.835 35.966.835
PT Bank Sumitomo Niaga 80.495.795 80.495.795
PT Bank Central Asia 4.490.680 4.863.880
Bank BSI 3.605.944 3.253.001
Sub Total Bank Account US Dollar 30.060.148.393 30.052.107.005
Total Cash in Bank Account 33.328.026.272 33.633.073.189
Time deposit
Related party
Rupiah
PT Bank Putera Multikarsa 100.000.000 100.000.000
33.713.728.072 34.050.593.139
Restricted Bank Account (Note 33) (3.068.959.357) (3.068.959.357)
Total Cash & Cash Equivalents Net 30.644.768.715 30.981.633.782
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
The Indonesian government through the Indonesian Bank Restructuring Agency (IBRA) suspended of PT Bank Putera
Multikarsa operating license on January 28, 2000. As a result, cash balances at these banks were presented as part of bank
accounts that were restricted in their use of non-current assets.
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 19
3. CASH AND CASH EQUIVALENTS (continued)
4. TRADE ACCOUNTS RECEIVABLE
The number of accounts receivable based on customers is as follows:
2 0 1 4 2 0 1 3
Rp Rp
Related parties
PT Citra Indah Textile 6.007.001.807 6.007.001.807
PT Texmaco Taman Synthetics 4.341.726.188 4.341.726.188
PT Bima Peranan Busana 505.305.799 505.305.799
PT Devrindo Widya 120.708.761 120.708.761
PT Wastra Indah 8.235.053 8.235.053
PT Texmaco Jaya Tbk (Under Liquidation) 2.552.000 2.552.000
PT Saritex Jaya Swasti 2.070.775 2.070.775
Total (Notes 33) 10.987.600.382 10.987.600.382
Less allowance for doubtful accounts (8.153.383.174) (5.439.874.725)
Net amount 2.834.217.208 5.547.725.657
Details of the age of receivables calculated from the date of invoice are as follows:
2 0 1 4 2 0 1 3
Rp Rp
Up to 1 month - -
> 1 month - 3 months - -
> 3 months - 6 months - -
> 6 months - 1 year - -
> 1 year 10.987.600.382 10.987.600.382
Total 10.987.600.382 10.987.600.382
(Continued)
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
As of December 31, 2014 and 2013, management made a policy of provision for used restricted bank accounts of 100%.
The balance of trade accounts receivable and trade payables to related parties as of December 31, 2014 and 2013 are
presented net (net off).
In 2014 and 2013, management made a policy to provide allowance for doubtful accounts for related party receivables that have
no transactions and experience financial difficulties due to declining business activities.
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 20
4. ACCOUNTS RECEIVABLE TRADE (continued)
Third parties
2 0 1 4 2 0 1 3
Rp Rp
Local 6.813.069.831 5.531.568.843
Export 32.960.186.877 21.385.058.130
39.773.256.708 26.916.626.973
Less allowance for doubtful accounts (1.318.134.117) (1.402.052.085)
Net amount 38.455.122.591 25.514.574.888
Details of the age of receivables calculated from the date of invoice are as follows:
2 0 1 4 2 0 1 3
Rp Rp
Up to 1 month 13.515.725.895 7.221.061.951
> 1 month - 3 months 17.470.550.178 10.917.812.712
> 3 months - 6 months - 5.811.761.359
> 6 months - 1 year 895.731.373 214.126.213
> 1 year 7.891.249.262 2.751.864.738
Total 39.773.256.708 26.916.626.973
The mutation in the allowance for doubtful accounts is as follows:
2 0 1 4 2 0 1 3
Rp Rp
Opening balance of the period 6.841.926.810 1.383.972.003
Changes during the current period
Addition / (recovery) net allowance 2.629.590.481 5.457.954.807
End of period balance 9.471.517.291 6.841.926.810
Management also believes that there is no risk that is significantly concentrated on receivables from third parties.
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
Trade accounts receivable to third parties in foreign currencies amounted to US $ 2,649,532.71.- in 2014 and US $ 2,032,071. in
2013 (see Note 34).
The Company's management believes that the allowance for doubtful accounts is adequate to cover possible losses arising from
uncollectible receivables.
(Continued)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 21
5. INVENTORIES
Inventories consists of:
2 0 1 4 2 0 1 3
Rp Rp
Goods in Transit 236.516.379.362 236.516.379.362
Goods in process 4.668.126.612 4.346.519.622
Raw materials (not including scrap supplies) 25.528.701.605 21.730.391.605
Auxliary Materials 5.019.180.162 5.340.766.857
Finished goods 4.929.261.183 4.226.507.707
total 276.661.648.924 272.160.565.153
Allowance for obsolescence (266.675.758.236) (266.675.758.236)
Net value 9.985.890.688 5.484.806.917
The mutation of the allowance for obsolete inventory is as follows:
2 0 1 4 2 0 1 3
Rp Rp
Initial balance of the period 266.675.758.236 266.675.758.236
Addition (recovery) of current year allowance - -
End of period balance 266.675.758.236 266.675.758.236
Scrap is the remaining raw material obtained during production that can still be used further
Raw materials in the trip are raw materials in the bonded area at the location of the company's factory.
.
6. ADVANCES
2 0 1 4 2 0 1 3
Rp Rp
Import 1.476.705.980 1.081.050.980
Local 534.414.641 534.414.641
2.011.120.621 1.615.465.621
Less allowance for advances (836.026.145) (844.822.785)
Total 1.175.094.476 770.642.836
Management makes a policy to make provision for obsolescence on the value of inventories that are more than 2 years,
between 25% to 100%.
Management believes that the allowance for obsolescence is sufficient to cover the possibility of a decrease in inventory value.
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
As of December 31, 2014 and 2013 the Company did not insure inventories from possible losses from risks that might be
experienced by the Company.
This account represents advances for the purchase of raw materials, auxiliary materials and spare parts, with details as follows:
(Continued)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 22
7. PREPAID TAXES
This account consists of:
2 0 1 4 2 0 1 3
Rp Rp
Income tax Article 28 A 708.133.942 708.133.942
Value Added Tax Compensated 2.588.147.988 2.734.026.243
Total 3.296.281.930 3.442.160.185
8. OTHER RECEIVABLES FROM RELATED PARTIES
This account consists of (see Note 33):
2 0 1 4 2 0 1 3
Rp Rp
PT Bridgeport Perkasa Machine Tools 20.892.751.289 20.812.592.300
PT Perkasa Indo Baja 16.224.578.177 14.905.884.555
PT Perkasa Indo Steel 7.678.187.029 7.678.187.029
PT Raja Busana Mahameru 3.201.103.177 3.201.103.177
PT Perkasa Heavyndo Engineering 188.560.614 372.388.714
Texmaco DPS International School 830.000.000 830.000.000
PT Texmaco Micro Indo Utama 870.173.937 870.173.937
PT Sarasa Daycrown Industry 46.905.930 46.905.930
PT Wahana Jaya Perkasa 29.734.995 29.734.995
PT Multikarsa Investama 89.146.501.429 75.644.331.348
Best & Crompton Engg. Ltd. India - 11.371.567.000
E-Tech Manufacturing - 110.400.000
Green Bridge International Pte, Ltd, Singapore - 7.803.725.000
PT Elok Prima Mitra Busana 1.260.000.000 1.260.000.000
Factory Systems Pte, Ltd. Singapore - 286.341.093
140.368.496.577 145.223.335.078
Less allowance for doubtful accounts (26.066.562.773) (21.464.581.731)
Net balance 114.301.933.804 123.758.753.347
Details of the age of other receivables are calculated from the date of the transaction as follows:
2 0 1 4 2 0 1 3
Rp Rp
Up to 1 month 1.242.267.062 14.629.200
> 1 month - 3 months 5.187.817.944 3.456.618.100
> 3 months - 6 months 5.731.144.518 18.988.534.390
> 6 months - 1 year 5.443.713.665 16.239.885.069
> 1 year 122.763.553.388 106.523.668.319
Total 140.368.496.577 145.223.335.078
(Expressed in Rupiah, unless otherwise stated)
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
AS OF DECEMBER 31, 2014 AND 2013
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 23
8. OTHER RECEIVABLES FROM RELATED PARTIES (continued)
9. INVESTMENT IN ASSOCIATED COMPANY
. before
capital change
Rp
Company ownership of PHE 500.000.000.000
Other paid-up capital until December 31, 2001 1.410.150.819.330
Difference in restructuring transaction between entities under common control (1.536.721.479)
Cost of acquisition 1.908.614.097.851
Part of accumulated losses up to 2001 (720.867.047.239)
1.187.747.050.612
Loss of PHE until September 2002 (254.493.144.964)
933.253.905.648
Loss of PHE until 2003 -
Company ownership of PHE before capital changes 933.253.905.648
This account is a loan given to related parties. The loan provided is not subject to interest, collateral and the date of repayment
has not been determined.
The balance of other receivables and other payables from related parties as of December 31, 2014 and 2013 are presented net
(net off).
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
Based on the debt restructuring agreement between the Company and PT Jaya Perkasa Engineering which was notarized by
the notary deed of Dr. H. Anwar Anwar, SH, SpN, a substantial percentage of equity has been decreased in PT Perkasa
Heavyndo Engineering (PHE) from 99.99% to 10%. The restructuring agreement was ratified at the Extraordinary General
Meeting of Shareholders of PT Texmaco Perkasa Engeneering on December 27, 2002, which was confirmed by Notary Sutjipto,
SH No. 91 December 27, 2002. The initial investment value of Rp 1,187,747,050,612 was the company's investment book value
as of December 31, 2001 before consolidation, the difference in value change resulting from changes in equity value of Rp
975,360,192,203 was recorded in the financial statements as difference in value changes in equity transactions of PT Perkasa
Heavyndo Engineering - a Subsidiary and in 2004 are presented net off with stock investments, calculations as follows:
In 2014 and 2013, management made a policy to provide allowance for doubtful accounts for related party receivables that have
no transactions and experience financial difficulties due to declining business activities.
This account represents investments in associated companies with the cost method as of December 31, 2014 and 2013 as
follows:
In 2013 the Company reduced its investment value to nil, because financial statements of PT Perkasa Heavyndo Engineering
(unaudited) experienced a deficiency of equity.
Share ownership in associates in 2014 and 2013 was a net off of changes in equity of 2002 subsidiaries from ownership of
99.99% to 10%.
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 24
9. INVESTMENT IN ASSOCIATED COMPANY (Continued)
After
capital change
Rp
Company ownership of PHE prior to additional paid-in capital 933.253.905.648 -
Difference in value of transaction changes in equity of a Subsidiary from 99.99% to 100% 975.360.192.203 -
Price of acquisition of investment as at 31 December 2003 1.908.614.097.851
Reclassification with the balance of the difference in transactions of changes in equity of subsidiaries (975.360.192.203) -
933.253.905.648
Decrease in investment value because the associated companies experience equity deficiency (933.253.905.648)
Stock Investment Balance Nihil
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
Based on the Shareholders' Decree as stated in deed number 149 dated March 23, 2000, made by Haji Muhammad Afdal
Gazali, SH Notary in Jakarta, PT Wahana Komponindo Perkasa domiciled in Jakarta has been dissolved and PT
PricewaterhouseCoopers FAS has been appointed as its liquidator. Profit and loss on the liquidation of the associated company
is recognized when all receipts have been realized from the proceeds of liquidation. Based on the resolution of the shareholders
of PT Wahana Komponindo Perkasa dated July 8, 2002 it was stated that the remaining assets of PT Wahana Komponindo
Perkasa amounted to Rp. 144,617,666 which was prepaid taxes VAT- input. PT PricewaterhouseCoopers FAS is processing the
disbursement of the balance, after deducting related costs such as a notary, consultant and other remaining funds will be
transferred to the account of each shareholder according to the portion. Based on the above, the investment balance of PT
Wahana Komponindo Perkasa was stated at Rp. Nil at the end of 2003. Until the completion of the 2014 audit the process was
not yet completed.
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 25
10. FIXED ASSETS
Y e a r 2 0 1 4
Opening Addition Disposal Reclasification Closing
Rp Rp Rp Rp Rp
ACQUISITION COST
DIRECT OWNERSHIP
Land 18.794.384.995 - - - 18.794.384.995
Building and infrastructure 77.195.148.846 - - - 77.195.148.846
Machinery and equipment 609.959.034.110 787.378.887 - - 610.746.412.997
Motor vehicle 589.398.530 - - - 589.398.530
Office equipment 1.651.734.848 25.162.518 - - 1.676.897.366 -
Total acquisition Cost 708.189.701.329 812.541.405 - - 709.002.242.734
ACCUMULATED DEPRECIATION
DIRECT OWNERSHIP
Building and infrastructure 50.112.124.046 3.069.331.761 - - 53.181.455.807
Machinery and equipment 372.264.908.318 592.541.522 - - 372.857.449.840
Motor vehicle 458.728.905 46.118.691 - - 504.847.596
Office equipment 1.493.398.752 50.197.398 - - 1.543.596.150
Total accumulated depreciation 424.329.160.021 3.758.189.372 - - 428.087.349.393
Book value 283.860.541.308 280.914.893.341
Y e a r 2 0 1 3
Opening Addition Disposal Reclasification Closing
Rp Rp Rp Rp Rp
ACQUISITION COST
DIRECT OWNERSHIP
Land 18.794.384.995 - - - 18.794.384.995
Building and infrastructure 77.195.148.846 - - - 77.195.148.846
Machinery and equipment 609.315.248.465 643.785.645 - - 609.959.034.110
Motor vehicle 589.398.530 - - - 589.398.530
Office equipment 1.565.648.660 86.086.188 - - 1.651.734.848 -
Total acquisition Cost 707.459.829.496 729.871.833 - - 708.189.701.329
ACCUMULATED DEPRECIATION
DIRECT OWNERSHIP
Building and infrastructure 46.576.670.808 3.535.453.238 - - 50.112.124.046
Machinery and equipment 371.645.258.956 619.649.362 - - 372.264.908.318
Motor vehicle 383.277.603 75.451.302 - - 458.728.905
Office equipment 1.450.079.539 43.319.213 - - 1.493.398.752 -
Total accumulated depreciation 420.055.286.906 4.273.873.115 - - 424.329.160.021
Book value 287.404.542.590 283.860.541.308
(Continued)
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 26
10. FIXED ASSETS (Continued)
Depreciation expenses are allocated as follows:
2 0 1 4 2013
Rp Rp
Direct ownership
Manufacturing costs 3.661.873.283 4.155.102.600
Operating expenses 96.316.089 118.770.515
Total 3.758.189.372 4.273.873.115
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
Building & infrastructure assets and machinery & equipment in unit's Kerawang from 2004 to 2010 were recorded on other assets because
there was no production and were not depreciated, so the depreciation expense was Rp 250,061,857,620 - not booked and starting in
2011 these assets are returned to productive assets and depreciated.
The company has not calculated the impact of the decline in the value of fixed assets due to the cessation of operations at the Karawang
plant and most of them at the Kaliwungu plant. Based on the results of a review of the status of the accounts of each type of fixed assets at
the end of 2014 and 2013, the Company's Management believes that there was no impairment in the value of the Company's fixed assets
for the years ended 31 December 2014 and 2013.
The company has several plots of land located in Karawang and Kendal with legal rights are in the form of Building Usage Rights (HGB)
with a term of 20 years which will expired within 2007 to 2027. Management believes that there are no problems with the extension of land
rights because all land is legally acquired and supported by sufficient evidence of ownership.
As of December 31, 2014 and 2013 the Company did not insure property, plant and equipment direct ownership of possible fire losses and
other risks.
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 27
11. OTHER ASSETS NET
Net balance of non-productive fixed assets up to 2003 as of December 31, 2014 and 2013 are as follows:
2 0 1 4 Opening Addition Disposal Reclasification Close
Rp Rp Rp Rp Rp
ACQUISITION COST
DIRECT OWNERSHIP
Motor vehicle 260.331.616 - - - 260.331.616
Office equipment 2.955.517.453 - - - 2.955.517.453
3.215.849.069 - - - 3.215.849.069
FINANCING RETAIL ASSETS
Machinery and equipment 1.555.174.015 - - - 1.555.174.015
Motor vehicle 1.630.201.900 - - - 1.630.201.900
Office equipment 799.979.544 - - - 799.979.544
3.985.355.459 - - - 3.985.355.459
Total 7.201.204.528 7.201.204.528
ACCUMULATED DEPRECIATION
DIRECT OWNERSHIP
Motor vehicle 260.331.616 - - - 260.331.616
Office equipment 2.654.238.530 301.278.923 - - 2.955.517.453
2.914.570.146 301.278.923 - - 3.215.849.069
FINANCING RETAIL ASSETS
Machinery and equipment 1.196.086.254 359.087.761 - - 1.555.174.015
Motor vehicle 1.581.347.733 48.854.167 - - 1.630.201.900
Office equipment 799.979.544 - - - 799.979.544
3.577.413.531 407.941.928 - - 3.985.355.459
Total 6.491.983.677 709.220.851 - - 7.201.204.528
Book value 709.220.851 -
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 28
11. OTHER ASSETS NET (continued)
2 0 1 3 Opening Addition Disposal Reclasification Close
Rp Rp Rp Rp Rp
ACQUISITION COST
DIRECT OWNERSHIP
Motor vehicle 260.331.616 - - - 260.331.616
Office equipment 2.955.517.453 - - - 2.955.517.453
3.215.849.069 - - - 3.215.849.069
FINANCING RETAIL ASSETS
Machinery and equipment 1.555.174.015 - - - 1.555.174.015
Motor vehicle 1.630.201.900 - - - 1.630.201.900
Office equipment 799.979.544 - - - 799.979.544
3.985.355.459 - - - 3.985.355.459
Total 7.201.204.528 7.201.204.528
ACCUMULATED DEPRECIATION
DIRECT OWNERSHIP
Motor vehicle 260.331.616 - - - 260.331.616
Office equipment 2.654.238.530 - - - 2.654.238.530
2.914.570.146 - - - 2.914.570.146
FINANCING RETAIL ASSETS
Machinery and equipment 1.196.086.254 - - - 1.196.086.254
Motor vehicle 1.581.347.733 - - - 1.581.347.733
Office equipment 799.979.544 - - - 799.979.544
3.577.413.531 - - - 3.577.413.531
Total 6.491.983.677 - - - 6.491.983.677
Book value 709.220.851 709.220.851
Based on Management letter no. 015/02 / HRD-TPE / XI / 2003 dated November 3, 2003 concerning lay off and letter of Directors No.
0092 / DIR / TPE-Krw / III / 2004 dated March 29, 2004 concerning mass employment termination of PT Texmaco Perkasa Engineering
Karawang, the Company stopped its commercial operations for PT. Texmaco Perkasa Engineering Karawang, so that the fixed assets of
the Company were not operated and not depreciated , and recorded on other asset accounts (net).
(Continued)
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 29
12. BANK LOANS
The details of bank loans as at 31 December 2014 and 2013 are as follows:
2 0 1 4 2 0 1 3
Rp Rp
L / C facilities
PT Bank Sumitomo Niaga US$ 1.771.048 22.031.837.120 21.587.304.072
Deutsche Bank US$ 373.000 4.640.120.000 4.546.497.000
Total 26.671.957.120 26.133.801.072
Interest rates during the year:
Rupiah 18% 18%
United States Dollar 10 – 10,5 % 10 – 10,5 %
13. NOTES PAYABLE
2 0 1 4 2 0 1 3
Rp Rp
Third parties
Rupiah
PT Asia Kapitalindo Sekuritas 1.500.000.000 1.500.000.000
United States Dollar
Trustee - BT US$ 4,500,000 55.980.000.000 54.850.500.000
Sanwa Bank US$ 3,000,000 37.320.000.000 36.567.000.000
SK Keris US$ 5,680,000 70.659.200.000 69.233.520.000
Total 165.459.200.000 162.151.020.000
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
This account represents short-term and medium-term notes payable in Rupiah and US Dollar with the following details:
The company has failed to pay the above notes and interest notes of US $ 28,286,857.25 and Rp 5,709,750,000.- in 2014
and US $ 27,299,812.62 and Rp 5,439,750,000 in 2013.
Based on the debt settlement agreement no. 11 dated April 14, 2000, between the Company and SK Keris as one of the
arranger of the notes payable, the Company is obliged to repay the principal debt plus interest as the principle in 2 (two)
installments namely 50% paid on December 31, 2004 and the remainder as of December 31, 2005 with an interest rate of
2% above LIBOR.
This loan is a Letter of Credit facility from Bank Sumitomo Niaga amounting to US $ 1,771,048 which matured in 1998 and
from Deutsche Bank amounting to US $ 373,000 which has matured in 2000. The company has failed to pay the principal
and interest on the facility from Bank- the banks were US $ 4,642,862.40 and US $ 921,310.- in 2014 and US $
4,456,902.36 and US $ 882.145.- in 2013.
The restructuring scheme that was made in 2002 through the Jakarta Initiative has yet to be realized and at present the
Company intends to restart the process of direct negotiations with creditors over the outstanding loans of PT Bank
Sumitomo Niaga and Deutsche Bank (Note 35b). Therefore, interest costs amounted to US $ 2,871,814.40.- and US $
548,310.- for the year 2014 and US $ 2,685,854.36 and US $ 509,145.- for the year 2013 that was not recorded.
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 30
13. NOTES PAYABLE (Continued)
14. ACCOUNTS PAYABLE TRADE
2 0 1 4 2 0 1 3
Rp Rp
Third parties
Domestic suppliers 6.823.023.987 4.754.386.702
Overseas suppliers 27.215.068.712 23.537.144.338
34.038.092.699 28.291.531.040
Related parties
PT Wahana Perkasa Auto Jaya 8.622.876.868 8.622.876.868
PT Wisma Karya Prasetya (Under Liquidation) 2.956.459.690 2.956.459.690
PT Texmaco Micro Indo Utama 415.981.022 415.981.022
PT Asia Pacific Fibers Tbk (PT Polysindo Eka Perkasa Tbk) 8.134.500 8.134.500
PT Bridgeport Perkasa Machine Tools 1.043.719.427 1.043.719.427
PT Perkasa Indobaja 274.193.711 118.795.699
PT Perkasa Heavyndo Engineering 504.198.999 659.597.011
(Notes 33) 13.825.564.217 13.825.564.217
Total 47.863.656.916 42.117.095.257
Details of debt age calculated from the date of the transaction are as follows:
2 0 1 4 2 0 1 3
Rp Rp
Up to 1 month 463.227.602 502.496.132
> 1 month - 3 months 165.087.458 -
> 3 months - 6 months - -
> 6 months - 1 year - -
> 1 year 47.235.341.856 41.614.599.125
Total 47.863.656.916 42.117.095.257
The restructuring scheme that was made in 2002 through the Jakarta Initiative has yet to be realized and at present the
Company intends to restart the direct negotiation process with creditors on the balance of PT Asia Kapitalindo Securitas,
Trustee - BT, Sanwa Bank and SK Keris notes payable (Note 35b) . Therefore, interest costs from 2003 to 2014
amounted to US $ 15,106,857.25 and Rp 4,209,750,000, and interest costs from 2003 to 2013 amounted to US $
14,119,812.62, and Rp. 3,939,750,000, - which occurred not recorded.
This account consists of obligations to suppliers arising from the purchase of raw materials, service materials with a
payment period of 90 days. The details of this account are as follows:
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 31
14. ACCOUNTS PAYABLE TRADE (Continued)
Details of trade payables by currency are as follows:
2 0 1 4 2 0 1 3
Rp Rp
Third parties RP 6.823.023.987 4.754.386.702
US$ 27.215.068.712 23.537.144.338
34.038.092.699 28.291.531.040
Related parties RP 13.825.564.217 13.825.564.217
Total 47.863.656.916 42.117.095.257
15. OTHER PAYABLES
This account consists of:
2 0 1 4 2 0 1 3
Rp Rp
Customer advances 2.115.326.104 2.117.528.491
Other clearance 4.296.202.578 5.215.985.264
Total 6.411.528.682 7.333.513.755
16. TAXES PAYABLE
2 0 1 4 2 0 1 3
Rp Rp
Income tax (article 21) 422.895.492 398.321.741
Income tax (article 23) 1.233.529.958 1.215.495.132
Value-added tax 2.002.137.558 1.985.281.168
Land and building taxes 6.006.231.334 5.788.351.664
Tax penalties and taxes interest / (article 25/29) 17.734.469 -
Total 9.682.528.811 9.387.449.705
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 32
17. ACCRUED EXPENSES
Consists of :
2 0 1 4 2 0 1 3
Rp Rp
Customs 4.891.255.120 5.072.476.880
Cooperative 4.497.338.478 4.496.867.766
Insurance 1.970.048.177 1.970.048.177
Bapepam & LK 1.368.942.000 1.368.942.000
Astek 525.564.957 521.193.286
Professional services 520.750.000 425.750.000
Others 939.252.005 939.252.005
Total 14.713.150.737 14.794.530.114
18. INTEREST PAYABLE
Consists of :
2 0 1 4 2 0 1 3
Rp Rp
Short term debt interest
PT Jaya Perkasa Engineering
Debt Tranche 1 US$ 502,737.66 6.254.056.490 6.127.869.338
FRN Holder US$ 3,962,083.00 49.288.312.520 48.293.829.687
Bank Permata (previously Bank Universal) 7.766.666.667 7.166.666.667
SK Keris US$ 1,450,247.24 18.041.075.666 17.677.063.608
Interest Payable for Notes Payable 60.000.000 60.000.000
Sub Total 81.410.111.343 79.325.429.300
Long-term debt interest
PT Jaya Perkasa Engineering
Debt Tranche 2 US$ 1,508,212.86 18.762.167.978 18.383.606.551
Debt Tranche 3 US$ 250,734.78 3.119.140.663 3.056.206.233
Sub Total 21.881.308.641 21.439.812.784
Total 103.291.419.984 100.765.242.084
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 33
19. LEASE DEBT
Consists of :
Finance Leasing Company Type of Assets 2014 2013
PT Orix Indonesia Finance US$ 362,414.83 Factory Machines 4.508.440.485 4.417.474.363
US$ 144,347.31 Office equipment 1.795.680.536 1.759.449.362
PT Efficorp Securitas Vehicle 481.048.089 481.048.089
Total 6.785.169.110 6.657.971.813
Payments due in year
2000 2.808.763.279 2.759.560.730
2001 3.567.873.073 3.498.595.042
2002 1.306.661.819 1.283.382.328
2003 79.725.351 79.725.351
The minimum payment amount for a finance lease 7.763.023.522 7.621.263.451
Less interest (977.854.412) (963.291.638)
Leases Debt Net 6.785.169.110 6.657.971.813
Minimum lease
Payment Interest rate Due date Interest rate Due date
USD 144.347,31 SIBOR + 2,25 % Agustus 1999 SIBOR + 2,75 % Desember 2002
USD 231.867,36 SIBOR + 2,25 % April 2001 SIBOR + 2,75 % Desember 2002
USD 130.547,47 SIBOR + 2,25 % J u n i 2001 SIBOR + 2,75 % Desember 2001
The obligation for finance leases is guaranteed by the finance lease assets in question. This finance lease agreement
limits the Company, among others, in selling and transferring finance leasing assets.
Future minimum lease payment in the finance lease agreement as of December 31, 2014 and 2013 after the restructuring
is as follows:
The restructuring scheme that was made in 2002 through the Jakarta Initiative has yet to be realized and at present the
Company intends to restart the process of direct negotiations with creditors over the balance of the debt financing leases
of PT Orix Indonesia Finance and PT Efficorp Securitas (Note 35b). In 2014 and 2013, the Company failed to pay the
principal and interest on the finance leases of PT Orix Indonesia Finance and PT Efficorp Sekuritas amounting to US $
564,781.16 and Rp 737,145,892. Therefore, interest costs of US $ 58,019.02 and Rp. 256,097,703 which occurred until
2002 as of December 31, 2014 and 2013 were not recorded.
In 1999, management reached an agreement with PT Orix Indonesia Finance to restructure all of its debts. The following
is an explanation of the principal of the finance lease agreement before and after the restructuring.
Before restructuring After restructuring
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 34
20. LONG-TERM LOANS CURRENT PORTION
Consists of :
2 0 1 4 2 0 1 3
Rp Rp
Related parties
PT Jaya Perkasa Engineering
Debt Tranche 1 US$ 14,363,932.20 178.687.316.568 175.081.969.586
Debt Tranche 2 US$ 43,091,796.59 536.061.949.580 525.245.908.636
Debt Tranche 3 US$ 7,163,851.03 89.118.306.813 87.320.180.205
803.867.572.961 787.648.058.427
One-year maturity of US $ 64,619,579.82 803.867.572.961 787.648.058.427
Related parties long-term loans - -
Bank loans that are not transferred to IBRA
Third parties
Rupiah
PT Bank Permata (previously PT Bank Universal Tbk) 30.000.000.000 30.000.000.000
Letter of Credit Facilities
United States Dollar
Mizuho (ex Liability L/C PT Bank
Societe Generale) JPY ¥ 33,588,128 121.202.198.480 118.756.720.038
Japan Yen
Mizuho (ex hutang L/C PT Bank
Societe Generale) JPY ¥ 33,588,128 3.501.522.038 3.901.892.524
154.703.720.518 152.658.612.562
Due in one year 30.000.000.000 30.000.000.000
Long-term bank loans are not transferred to IBRA 124.703.720.518 122.658.612.562
Long-term loans - Net 124.703.720.518 122.658.612.562
Loans restructured by IBRA
The MRA is the implementation of the Texmaco Group debt restructuring pattern as a whole based on the approval of the
Financial Sector Policy Committee ("KKSK") No Kep.03 / KKSK / 10/2000, dated October 2, 2000, No. Kep.01 / K.KKSK /
03/2001, March 20, 2001 and No. Kep.01 / K.KKSK / 04/2001 dated April 11, 2001.
Based on the "Memorandum of Understanding on the Agreement on the Basic Principles for the Restructuring of
Texmaco" (MOU) which was notarized by Notary Bambang Sularso, SH No. 15 September 29, 2000, Marimutu Sinivasan
who directly and / or indirectly controlled and / or owned a majority stake in the Company and its subsidiaries, and IBRA
approved the restructuring model for the obligations of Texmaco (Texmaco) business groups, including the obligations of
the Company and subsidiaries to IBRA (Note 35b).
The MOU dated September 29, 2000 was replaced by the Master Restructuring Agreement (MRA) for Texmaco Group
dated May 23, 2001 by Notary Olvia Afianty SH, which was subsequently amended by First Amendment MRA No. 5 dated
September 21, 2001 and was last amended by Second Amendment MRA No. 12 dated January 18, 2002, whose
contents, among others, extended the period of completion of Precedent Conditions to 360 days, namely until May 22,
2002.
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 35
20. LONG-TERM LOANS CURRENT PORTION (Continued)
Long term loan principal
The loan principal is in accordance with the restructuring US$ 169,688,802.82 1.628.164.074.380
Less:
Debt converted to additional paid-in capital
PT Jaya Perkasa Engineering US$ 105,069,223.00 1.008.139.194.685
US$ 64,619,579.82 620.024.879.695
Exchange rate difference 42.325.834.495
Loans are restructured into long-term loans US$ 64,619,579.82 577.699.045.200
(Continued)
Information regarding the payment of principal Long Term Loan to PT Jaya Perkasa Engineering is as follows:
The debt restructuring pattern contained in the MRA is basically debt The companies in Texmaco Group are transferred
based on the debt restructuring program with the Indonesian Bank Restructuring Agency (IBRA) to 2 (two) holding
companies that have been formed, namely PT Jaya Perkasa Engineering , for companies engaged in the Engineering
industry and PT Bina Prima Perdana, for companies engaged in the textile industry.
Based on the notary deed Dr. H Teddy Anwar SH, Spn, No. 86 September 20, 2002 concerning PT Texmaco Perkasa
Engineering Tbk's debt restructuring to PT Jaya Perkasa Engineering which was attended by Marimutu Sinivasan as
President Director of PT Texmaco Perkasa Engineering Tbk, Alfred Ferdinand Imanuel Inkiriwang as President Director of
PT Jaya Perkasa Engineering and Adang Ruchiatna P, representing Kiagooshusoiny GA as commissioner of PT Jaya
Perkasa Engineering has reached an agreement to restructure all of its debts through the signing of the Restructuring
Agreement as follows:
Based on the loan restructuring agreement with PT Jaya Perkasa Engineering, the Company's total debt approved for
restructuring amounted to US $ 54,734,744.80 and Rp 1,102,984,193,596, which was equivalent to US $ 169,688,802.82.
From the total debt amounting to US $ 33,033,682.92 and Rp 691,181,014,141 equivalent to US $ 105,069,223 converted
into the Company's investment, the remaining US $ 64,619,579.82 was restructured into a long-term loan.
AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
PT TEXMACO PERKASA ENGINEERING Tbk
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 36
20. LONG-TERM LOANS CURRENT PORTION (Continued)
Loans restructured by IBRA (continued)
a. Payment of loan principal
Debt Tranche Debt Tranche Debt Tranche Due date
1 2 3
(US $) (US $) (US $)
3.590.983,05 4.309.179,66 716.385,10 31 Desember 2006
3.590.983,05 4.309.179,66 716.385,10 31 Desember 2007
3.590.983,05 6.463.769,49 1.074.577,65 31 Desember 2008
3.590.983,05 8.618.359,32 1.432.770,21 31 Desember 2009
- 10.772.949,14 1.790.962,76 31 Desember 2010
- 8.618.359,32 1.432.770,21 31 Desember 2011
Total 14.363.932,20 43.091.796,59 7.163.851,03
b. Interest rate
Loans in currency Interest rate
United States Dollar
Debt Tranche 1 1 % – 3,5 % Period every 6 (six) months between June 30, 2001 -
30-Jun-03
SIBOR + 1 % Period every 6 (six) months between December 1, 2003 -
31-Des-09
SIBOR + 1 % Period every 6 (six) months between June 30, 2010 -
31-Des-11
Debt Tranche 2 1 % – 3,5 % Period every 6 (six) months between June 30, 2001 -
30-Jun-03
SIBOR + 3 % Period every 6 (six) months between 31 December 2003 -
31-Des-09
SIBOR + 3 % Period every 6 (six) months between June 30, 2010 -
31-Des-11
Debt Tranche 3 1 % – 3,5 % Period every 6 (six) months between June 30, 2001 -
30-Jun-03
SIBOR + 1 % Period every 6 (six) months between 31 December 2003 -
31-Des-09
SIBOR + 1 % Period every 6 (six) months between June 30, 2010 -
31-Des-11
(Expressed in Rupiah, unless otherwise stated)
(Continued)
PT Jaya Perkasa Engineering
Period
Under the Restructuring Agreement No. 56 dated September 20, 2002, the Company recalculated the interest and
principal outstanding. The loan principal and interest from the amount recalculated with the interest reserved in the
December 31, 2002 financial statements amounting to Rp 285,033,325,681, were charged to extraordinary items in the
2002 income statement.
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 37
20. LONG-TERM LOANS (Continued)
Loans restructured by IBRA (continued)
Bank loans that are not transferred to IBRA
PT Bank Permata (formerly PT Bank Universal, Tbk)
Mizuho International Plc
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
On September 27, 2002, the Company entered into an agreement with PT Bank Societe Generale Indonesia and Mizuho
International Plc to transfer US $ 9,742,942 and ¥ 33,588,128 letter of credit facilities from PT Bank Societe Generale
which were due in 1998 to Mizuho International Plc. The company has failed to pay the principal and interest on the facility
amounting to US $ 14,964,364 and ¥ 43,684,460 to 2003. From 2004 to 2014 interest fees were not calculated and not
recorded.
The restructuring scheme that was made in 2002 through the Jakarta Initiative cannot yet be realized and at present the
Company intends to restart the process of direct negotiations with creditors over the balance of long-term loans of PT
Bank Permata and Mizuho International Plc (Note 35b). Therefore, interest on the balance of Mizuho International Plc's
long-term loans amounting to US $ 5,221,422 and ¥ 10,096,332 which occurred until 2002 is not recorded. From 2003 to
2014, interest costs were not calculated and not recorded.
The Indonesian Bank Restructuring Agency (IBRA) issued a statement of negligence (Default Notice) No. Prog-2244 /
BPPN / 0204 dated 26 February 2004 addressed to PT Jaya Perkasa Engineering. In the letter it was stated that PT Jaya
Perkasa Engineering, which was the holding company of engineering, had failed to pay the Exchangeable Bond (EB)
coupons issued to IBRA due on August 18, 2003.
As stated in the default notification letter, if until after 21 days after the letter is received, the payment has not been carried
out, then all provisions in the "Amendment and Restated Exchangeable Bond Subscription Agreement (AREBSA)"
agreement made between PT Jaya Perkasa Engineering (JPE) with IBRA declared to be over, IBRA and / or the
successor of IBRA can collect all the obligations of the holding company at once, including but not limited to implementing
the exchange option for PT Jaya Perkasa Engineering (JPE) assets in the form of all claims against PT Subsidiaries Jaya
Perkasa Engineering (JPE). All obligations including coupons must be paid 30 days after 21 days have passed. Until the
completion of the examination, IBRA has not implemented further action.
Until now, all debts transferred to PT Jaya Perkasa Engineering (JPE) have been handled by the IBRA Settlement Team.
The IBRA Settlement Team is still in the process of identifying loans to be transferred to PT Perusahaan Pengelola Asset
(PT PPA). (Note 35b).
Since the restructuring in 2002, the Company has not reserved interest based on loan restructuring agreements
transferred to PT Jaya Perkasa Engineering as of December 31, 2014 and 2013 amounting to US $ 34,866,112.84 and
US $ 33,060,831.04.
Based on the settlement agreement between the Company and Bank Permata (formerly Bank Universal) for a loan of Rp
30,000,000,000 guaranteed by personal guarantees from Marimutu Sinivasan, the Company's shares and PT Asia Pacific
Fibers Tbk (formerly PT Polysindo Eka Perkasa Tbk). The company must repay the loan on December 1, 2006 with an
interest rate of 2% per year.
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 38
21. NOTES PAYABLE LONG TERM
Consists of :
2 0 1 4 2 0 1 3
Rp Rp
United States Dollar
Note payable to Syndicate Co-ordinated- BD 1.244.000.000.000 1.218.900.000.000
Sumitomo Finance (Asia) Limited US $ 100,000,000 1.244.000.000.000 1.218.900.000.000
Rupiah
PT Efficorp Sekuritas 36.500.000.000 36.500.000.000
PT Asuransi Prima Perkasa Indonesia 10.000.000.000 10.000.000.000
(Notes 33) 46.500.000.000 46.500.000.000
1.290.500.000.000 1.265.400.000.000
Deferred loan issuance expenses - -
1.290.500.000.000 1.265.400.000.000
Less short-term notes are net after
deferred loan emissions - -
Total 1.290.500.000.000 1.265.400.000.000
PT TEXMACO PERKASA ENGINEERING Tbk
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
AND SUBSIDIARY COMPANY
In May 1997, a subsidiary, TPE BV with the Company as a guarantor, issued a long-term notes payable of US $
100,000,000 coordinated by Sumitomo Finance (Asia) Limited, with an interest rate of 3% above six-month LIBOR for
deposits in US Dollars Union. These notes will mature on May 30, 2002. The notes payable are secured by the
Company's movable (other than inventory) and immovable assets located in Karawang on a pari-passu basis (Notes 4
and 10).
The loan agreement mentioned above includes certain requirements that cancel the Company to add debt to increase
liens for its assets, make payments or distribution to shareholders exceeding 40% of current year's net income, sell assets
or shares, make certain transactions with related parties, release subsidiaries, merge business and others. The
agreement also included conditions of default (default), risks of breach of agreement and insolvency conditions. Failure to
pay interest at maturity is also categorized as a default condition.
The restructuring scheme that was made in 2002 through the Jakarta Initiative has yet to be realized and at present the
Company intends to restart the negotiation process directly with creditors over the balance of syndicated notes payable
coordinated by Sumitomo Finance (Asia) Limited (Note 35b)
In 2014 and 2013, TPE BV was unable to make unpaid interest payments due on this notes amounting to US $
96,770,157 and US $ 93,502,812. US $ 92,808,074.- and US $ 89,540,729.-.
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 39
21. NOTES PAYABLE LONG TERM (Continued)
Until the completion of the examination, the scheme has not been implemented.
22. CAPITAL STOCK
Percentage
Ownership Amount of Capital
Shareholders Number of shares % Shares (Rp)
Series A shares
PT Multikarsa Investama 1.163.024.711 56,84 581.512.355.500
Multi Tree Ltd. B V I 262.930.608 12,85 131.465.304.000
Standard Chartered Bank, Hong Kong A / C 138.047.900 6,75 69.023.950.000
Public (each under 5%) 482.236.781 23,56 241.118.390.500
Total 2.046.240.000 100 1.023.120.000.000
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The company as guarantor of the US $ 100,000,000 TPE International Company BV notes payable (Floating Rate Notes
US $ 100,000,000) had a meeting with the holders of the notes (FRN Holder) on September 20, 2002, based on the
results of the meeting. FRN Holder has given approval for the "Concensual Debt Restructuring Plan" submitted by the
Company with a partial loan scheme to be included in equity participation and partly in the form of New Secured Floating
Rate Notes (New SFRN) to be paid by the Company from 2006 to 2011 In the 2002 financial statements the notes were
classified as long-term liabilities (Note 35b).
Based on the October 2002 In-Principle Restructuring Agreement between the Company and PT Efficorp Securitas and
PT Asuransi Prima Perkasa Indonesia an agreement was made to restructure the Company's long-term notes payable in
accordance with the "Concensual Debt Restructuring Plan" submitted by the Company with condition precedent fulfillment
requirements which requires both parties to obtain all the necessary approvals, and in the 2002 financial statements the
notes are classified as long-term notes (Note 35b). In 2014 and 2013, the Company failed to pay the principal and interest
on the long-term notes of PT Efficorp Securitas and PT Asuransi Prima Perkasa Indonesia which occurred up to 2003
amounting to Rp 91,711,875,000.
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
The restructuring scheme that was made in 2002 through the Jakarta Initiative has yet to be realized and currently the
Company intends to restart the direct negotiation process with creditors on the balance of long-term notes of PT Efficorp
Securitas and PT Asuransi Prima Perkasa Indonesia (Note 35b). Therefore, the interest costs of Rp.41,611,875,000 and
Rp.3,600,000,000 each which occurred until 2003 were not recorded.
The composition of the Company's shareholdings based on the Securities Administration Bureau PT Datindo Entrycom as
of December 31, 2014 and 2013 are as follows:
Year 2014
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 40
22. SHARE CAPITAL (continued)
Percentage
Ownership Amount of Capital
Shareholders Number of shares % Shares (Rp)
Series A shares
PT Multikarsa Investama 1.163.024.711 56,84 581.512.355.500
Multi Tree Ltd. B V I 262.930.608 12,85 131.465.304.000
Public (each under 5%) 620.284.681 30,31 310.142.340.500
Total 2.046.240.000 100 1.023.120.000.000
2 0 1 4 2 0 1 3
Lembar Lembar
Management
Rippon Dwi (President Commissioner) - 25.335
23. ADDITIONAL PAID UP CAPITAL - NET
Is as follows :
2 0 1 4 2 0 1 3
Rp Rp
Stock sales Company in public offerings to
public in 1993 for issuing 1,000 shares 4.800.000.000 4.800.000.000
Recorded as paid up capital (1.000.000.000) (1.000.000.000)
Stock premium balance December 31, 1993 3.800.000.000 3.800.000.000
Distribution of bonus shares December 27, 1994 (3.150.000.000) (3.150.000.000)
Stock premium balance December 31, 2001 650.000.000 650.000.000
Stock issuance costs deferred (2.972.289.217) (2.972.289.217)
(2.322.289.217) (2.322.289.217)
Additional new paid-up capital 1.008.139.201.788 1.008.139.201.788
Additional Paid-in Capital - Net 1.005.816.912.571 1.005.816.912.571
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
Year 2013
Increased in additional paid-up capital originating from long-term debt converted to equity based on the Restructuring
Agreement dated September 20, 2002 between the Company and PT Jaya Perkasa Engineering and the conversion was
approved by the Extraordinary General Meeting of Shareholders on December 27, 2002 which was notified by Sutjipto SH,
Notary No. 92 on the same date and has been approved by the Republic of Indonesia Minister of Justice and Human
Rights Number: C-10696 HT.01.04.TH.2003 dated May 14, 2003. Entry into of this agreement is still awaiting for the
issuance of shares and completness of various other conditions will hapen future such of guarantees, mortgages and
others.
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 41
24. OPERATING REVENUES
Details of the Company's net sales based on the main product groups are as follows;
2 0 1 4 2 0 1 3
Rp Rp
Engine spareparts 81.010.003.797 68.804.817.275
Net sales 81.010.003.797 68.804.817.275
Details of the Company's net sales based on customers are as follows:
2 0 1 4 2 0 1 3
Rp Rp
Third parties
Export 70.106.065.698 50.237.499.774
Local 10.903.938.099 18.567.317.501
81.010.003.797 68.804.817.275
Related parties (Notes 33) - -
Net sales 81.010.003.797 68.804.817.275
Sales made to related parties in 2014 and 2013 were nil% (Note 33).
Details of buyers with a net selling value exceeding 10% of the Company's sales are as follows:
2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3
Rp Rp % %
Customer
GE Transportation System USA 22.057.658.621 17.601.539.208 27,23 25,58
General Electric Mexico 40.546.993.716 28.945.094.394 50,05 42,07
Total 62.604.652.337 46.546.633.602 77,28 67,65
Total Percentage of total sales
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 42
25. COST OF GOODS SOLD
The details of the cost of goods sold are as follows:
2 0 1 4 2 0 1 3
Rp Rp
Raw materials and auxiliary materials used 21.191.234.625 23.040.196.581
Direct labor wages 6.113.109.228 4.875.597.191
Direct production cost (fabrication) (Notes 26) 13.351.344.143 9.013.442.754
Total production costs 40.655.687.996 36.929.236.526
Inventory of goods in process
Beginning 827.641.268 1.357.315.508
Ending (1.149.248.258) (827.641.268)
Cost of production 40.334.081.006 37.458.910.766
Finished goods
Beginning 1.996.846.234 1.011.364.450
Ending (2.699.599.710) (1.996.846.234)
Cost of goods sold 39.631.327.530 36.473.428.982
Details of suppliers that exceed 10% of the Company's purchases are as follows:
2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3
Rp Rp % %
PT Krakatau Steel 2.480.310.000 - 10,05 -
Richards Bay Iron and Titanium 13.379.399.040 6.062.587.020 54,24 25,16
PT Sinarindo Megah Perkasa - 5.340.520.360 0,00 22,16
Total 15.859.709.040 11.403.107.380 64,29 47,32
26. DIRECT PRODUCTION COST
Details of direct production cost are as follows:
2 0 1 4 2 0 1 3
Rp Rp
Electricity, water and telephone 3.422.935.337 2.498.567.088
Building maintenance costs 421.908.565 738.700.456
Machine maintenance costs 1.484.380.695 1.554.648.130
Insurance fee 18.427.601 10.320.421
Import clearance fee 4.300.599.202 -
Building depreciation costs 3.069.331.761 3.535.453.238
Machine depreciation costs 592.541.522 619.649.362
Transportation costs 41.219.460 56.104.059
Total 13.351.344.143 9.013.442.754
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Supplier Percentage of total purchasesTotal
PT TEXMACO PERKASA ENGINEERING Tbk
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 43
27. OPERATING EXPENSES
Details of operating expenses are as follows:
2 0 1 4 2 0 1 3
Rp Rp
Marketting expenses
Export 600.533.405 3.284.811.555
Marketing and advertising 346.170.000 1.421.729.786
Transportation 121.179.123 313.528.568
1.067.882.528 5.020.069.909
General and Administrative Expenses
Salary, wages and benefits 7.751.225.852 8.898.712.792
property tax 442.892.818 667.913.966
Depreciation 96.316.089 118.770.515
Amortization of other assets 709.220.851 -
Repair and maintenance 876.891.058 655.102.841
Professional services 50.000.000 45.000.000
Postal and telephone expenses 241.776.889 230.997.541
Office expenses 80.056.340 69.982.675
Official travel 1.476.792.781 1.676.829.869
Others 28.516.047.777 9.551.765.540
40.629.294.659 21.915.075.739
Total 41.697.177.187 26.935.145.648
28. INTEREST INCOME
2 0 1 4 2 0 1 3
Rp Rp
Current Accounts 11.678.113 20.915.574
Total 11.678.113 20.915.574
29. INTEREST EXPENSES AND BANK ADMINISTRATION
2 0 1 4 2 0 1 3
Rp Rp
Bank loan interest expense 600.000.000 603.428.897
Bank Administration 110.240.761 134.119.967
Total 710.240.761 737.548.864
Other general & administrative expenses in 2014 and 2013 were Rp. 28,516,047,777 and Rp. 9.551,765,540, including
research & development costs of Rp. 27,918,933,003 and Rp. 7,953,740,000.
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 44
30. BENEFITS (LOSSES) FOREIGN EXCHANGE CURSES - NET
2 0 1 4 2 0 1 3
Rp Rp
Profit / (loss) on the transaction rate (2.280.413.368) 15.099.338.903
(Loss) exchange rate as balance sheet date (40.199.056.470) (506.096.551.315)
Total Net (42.479.469.838) (490.997.212.412)
31. INCOME TAX
2 0 1 4 2 0 1 3
Rp Rp
Current tax
Company - -
Subsidiary - -
Sub Amount - -
Deferred tax
Company 1.568.021.262 273.244.620.030
Subsidiary - -
Sub Amount 1.568.021.262 273.244.620.030
Total 1.568.021.262 273.244.620.030
Current tax
2 0 1 4 2 0 1 3
Rp Rp
Profit / (Loss) before tax according to the consolidated statement of income (52.584.350.278) (1.444.088.662.275)
Profit / Loss of a subsidiary (30.222.967) (303.313.356)
Profit / (Loss) before Company tax (transferred) (52.614.573.245) (1.444.391.975.631)
Temporary differences:
Differences in commercial and fiscal depreciation (12.403.990.134) (13.794.865.797)
Payment / expenses employee benefits (88.654.070) (372.929.839)
Allowance for accounts receivable 11.563.524.723 26.922.536.538
Investment loss expense - 933.253.905.648
(929.119.481) 946.008.646.550
(Expressed in Rupiah, unless otherwise stated)
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Continued)
As of December 31, 2014 and 2013, monetary assets and liabilities in the Company's foreign currency were translated into
Rupiah at the middle rate of Bank Indonesia, resulting in the following net losses / gains on foreign exchange differences:
The reconciliation between loss before tax according to the consolidated statements of income and tax losses is as
follows:
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 45
31. INCOME TAX (continued)
Current Tax (continued)
Permanent difference:
Tax penalties 26.084.469 45.047.992
Interest income (11.678.113) (20.915.574)
Others 258.783.685 788.761.590
273.190.041 812.894.008
Tax on currenty year (53.270.502.685) (497.570.435.073)
Tax loss year 2013 (497.570.435.073) -
Tax loss year 2012 (78.661.799.919) (78.661.799.919)
Tax loss year 2011 (10.167.835.545) (10.167.835.545)
Tax loss year 2008 - (314.233.666.482)
Total Tax losses that have not been compensated (639.670.573.222) (900.633.737.019)
Deferred Tax
AND SUBSIDIARY COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
PT TEXMACO PERKASA ENGINEERING Tbk
Deferred tax is calculated based on the effect of temporary differences between the carrying amounts of assets and
liabilities according to the report and the tax bases of assets and liabilities. The details of the Company and its
subsidiaries' deferred tax obligations are as follows:
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 46
31. INCOME TAX (continued)
Deferred Tax (continued)
Charged Charged
(credited) (credited)
Description December 31 to report December 31 to report December 31
2012 profit and loss 2013 profit and loss 2014
Rp Rp Rp Rp Rp
Deferred tax liability:
Difference in depreciation
commercial and tax (72.117.076.181) (3.448.716.449) (75.565.792.630) (3.100.997.534) (78.666.790.164)
Employee benefit costs 933.226.691 (93.232.460) 839.994.231 (22.163.518) 817.830.714
Allowance for accounts receivable 344.044.446 6.730.634.135 7.074.678.581 2.890.881.180 9.965.559.761
Investment loss expenses - 233.313.476.412 233.313.476.412 - 233.313.476.412
Adjustment
Finance lease expenses 433.553.461 - 433.553.461 - 433.553.461
Depreciation of fixed assets - 36.742.458.392 36.742.458.392 1.800.301.132 38.542.759.524
Net amount (70.406.251.583) 273.244.620.030 202.838.368.447 1.568.021.262 204.406.389.708
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARY COMPANY
As of December 31, 2014 and 2013, the Company suffered accumulated tax losses amounting to Rp 639,670,573,222 and
Rp.900,633,737,019, which can be compensated with taxable income for the next five years.
Recognition of the Company's deferred tax assets based on management's estimates of future results including estimates of the
level of production and commodity prices of the Company's products, time and development of the Company's deferred tax
obligations and tax planning strategies. In 2002 there was a decrease in the value of equity of the Company at PT. Perkasa
Heavyndo Engineering which was originally 99.99% to 10.00% (see note 9) so that the deferred tax was not taken into account.
(Continued)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 47
31. INCOME TAX (continued)
Deferred Tax (continued)
2 0 1 4 2 0 1 3
Rp Rp
Profit / (loss) before tax according to the consolidated statement of income (52.584.350.278) (1.444.088.662.275)
Profit / Loss before tax of subsidiary (30.222.967) (303.313.356)
Loss before tax of Company (52.614.573.245) (1.444.391.975.631)
Income tax with a 25% tax rate 13.153.643.311 361.097.993.908
Tax profit (loss) not recognized as
Deferred tax assets (13.317.625.671) (124.392.608.768)
Effect of tax on expenses (income) that cannot be obtained
calculated according to tax:
- Interest income 2.919.528 5.228.894
- Tax penalties (6.521.117) (11.261.998)
- Other (64.695.921) (197.190.398)
(232.279.870) 236.502.161.638
Adjustment depreciation of productive assets 1.800.301.132 36.742.458.392
Corporate tax income 1.568.021.262 273.244.620.030
Subsidiary tax expense - -
Amount of Tax Expense 1.568.021.262 273.244.620.030
(Continued)
PT TEXMACO PERKASA ENGINEERING Tbk
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
The reconciliation between the tax expenses and the pre-tax accounting loss with the applicable tax rate is as follows:
AND SUBSIDIARY COMPANY
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 48
32. LOSS PER SHARE
Year 2014
Common stock
and equivalent Assumption
common stock full dilution
Rp Rp
The number of weighted average shares outstanding 2.046.240.000 2.046.240.000
Common stock equivalents assuming the stock option has been converted - 9.250.111.147
Amount (full sheet) 2.046.240.000 11.296.351.147
Net loss (51.016.329.016) (51.016.329.016)
Reduced: Share dividend - -
Net income used in calculating earnings per share (51.016.329.016) (51.016.329.016)
Loss per share (25) (5)
Year 2013
Common stock
and equivalent Assumption
common stock full dilution
Rp Rp
The number of weighted average shares outstanding 2.046.240.000 2.046.240.000
Common stock equivalents assuming the stock option has been converted - 9.250.111.147
Amount (full sheet) 2.046.240.000 11.296.351.147
Net loss (1.170.844.042.245) (1.170.844.042.245)
Reduced: Share dividend - -
Net income used in calculating earnings per share (1.170.844.042.245) (1.170.844.042.245)
Loss per share (572) (104)
(Expressed in Rupiah, unless otherwise stated)
(Continued)
PT TEXMACO PERKASA ENGINEERING Tbk AND SUBSIDIARIES COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 49
33. RELATED PARTIES INFORMATION
This account consists of
2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3
Rp Rp % %
Restricted Bank Account
Rupiah
Bank Putera Multikarsa 1.534.015.502 1.534.015.502 0,22220 0,22385
Foreign currency
Bank Putera Multikarsa 1.434.943.855 1.434.943.855 0,20785 0,20939
Time deposit 100.000.000 100.000.000 0,01448 0,01459
3.068.959.357 3.068.959.357 0,44453 0,44783
Allowance for bank balances
restricted usage (3.068.959.357) (3.068.959.357) (0,44453) (0,44783)
T o t a l - - - -
Accounts receivable
PT Citra Indah Textile 6.007.001.807 6.007.001.807 0,87010 0,87655
PT Texmaco Taman Synthetics 4.341.726.187 4.341.726.187 0,62889 0,63355
PT Bima Peranan Busana 505.305.799 505.305.799 0,07319 0,07374
PT Devrindo Widya 120.708.761 120.708.761 0,01748 0,01761
PT Wastra Indah 8.235.053 8.235.053 0,00119 0,00120
PT Texmaco Jaya Tbk (under liquidation) 2.552.000 2.552.000 0,00037 0,00037
PT Saritex Jaya Swasti 2.070.775 2.070.775 0,00030 0,00030
10.987.600.382 10.987.600.382 1,60333 1,60333
Allowance for doubtful accounts (8.153.383.174) (5.439.874.725) (1,18976) (0,79380)
T o t a l 2.834.217.208 5.547.725.657 0,41053 0,80954
PT TEXMACO PERKASA ENGINEERING Tbk AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
Percentage of
total assets / liabilities /
income / expense
concerned
Balance
as of December 31, 2014 and 2013
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 50
33. RELATED PARTIES INFORMATION (continued)
2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3
Rp Rp % %
Other receivables
PT Bridgeport Perkasa Machine Tools 20.892.751.289 20.812.592.300 3,02627 3,03702
PT Perkasa Indo Baja 16.224.578.177 14.905.884.555 2,35010 2,17510
PT Perkasa Indo Steel 7.678.187.029 7.678.187.029 1,11217 1,12042
PT Raja Busana Mahameru 3.201.103.177 3.201.103.177 0,46367 0,46711
PT Perkasa Heavyndo Engineering 188.560.614 372.388.714 0,02731 0,05434
PT Texmaco Micro Indo Utama 870.173.937 870.173.937 0,12604 0,12698
Texmaco DPS International School 830.000.000 830.000.000 0,12022 0,12112
PT Sarasa Daycrown Industry 46.905.930 46.905.930 0,00679 0,00684
PT Wahana Jaya Perkasa Tbk 29.734.995 29.734.995 0,00431 0,00434
PT Multikarsa Investama 89.146.501.429 75.644.331.348 12,91270 11,03818
E-Tech Manufacturing - 110.400.000 - 0,01611
Factory Systems Pte, Ltd. Singapore - 286.341.093 - 0,04178
PT Elok Prima Mitra Busana 1.260.000.000 1.260.000.000 0,18251 0,18386
Best & Crompton Engg. Ltd, India - 11.371.567.000 - 1,65936
Green Bridge International Pte.Ltd, Singapore - 7.803.725.000 - 1,13874
140.368.496.577 145.223.335.078 20,33210 21,19130
Allowance for doubtful accounts (26.066.562.773) (21.464.581.731) (3,77569) (3,13216)
T o t a l 114.301.933.804 123.758.753.347 16,55641 18,05914
Account payable
PT Wahana Perkasa Auto Jaya 8.622.876.868 8.622.876.868 1,24901 1,25827
PT Wisma Karya Prasetya (Under Liquidation) 2.956.459.690 2.956.459.690 0,42824 0,43141
PT Texmaco Micro Indo Utama 415.981.022 415.981.022 0,06025 0,06070
PT Bridgeport Perkasa Machine Tools 1.043.719.427 1.043.719.427 0,15118 0,15230
PT Perkasa Indobaja 274.193.711 118.795.699 0,03972 0,01733
PT Perkasa Heavyndo Engineering 504.198.999 659.597.011 0,07303 0,09625
PT Asia Pacific Fibers Tbk
(PT Polysindo Eka Perkasa Tbk) 8.134.500 8.134.500 0,00118 0,00119
T o t a l 13.825.564.217 13.825.564.217 2,00261 2,01746
as of December 31, 2014 and 2013 income / expense
concerned
total assets / liabilities /
PT TEXMACO PERKASA ENGINEERING Tbk AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
Percentage of
Balance
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 51
33. RELATED PARTIES INFORMATION (continued)
2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3
Rp Rp % %
Other debts
PT Jaya Perkasa Engineering 86.861.876.131 86.861.876.131 12,58177 12,67507
PT Wastra Indah 63.267.782.228 63.267.782.228 9,16422 9,23217
PT Wisma Karya Prasetya (Under Liquidation) 39.407.292.576 38.513.550.987 5,70807 5,61998
PT Asia Pacific Fibers Tbk
(PT Polysindo Eka Perkasa Tbk) 31.725.623.703 31.535.793.510 4,59540 4,60177
PT Texmaco Jaya Tbk (Under Liquidation) 28.103.527.130 28.097.527.130 4,07074 4,10005
PT Bima Peranan Busana 7.050.718.755 7.050.718.755 1,02128 1,02886
Coastal Group Ltd (Sales Advance) 9.627.950.440 9.433.688.739 1,39459 1,37658
PT Wahana Perkasa Auto Jaya 2.740.538.673 2.740.538.673 0,39696 0,39991
PT Texmaco Taman Synthetic 2.649.540.415 2.649.540.415 0,38378 0,38663
PT Saritex Jaya Swasti 986.685.000 986.685.000 0,14292 0,14398
PT Multikarsa Investama - - - -
PT Kreasi Kekar Dinamika 120.379.878 120.379.878 0,01744 0,01757
T o t a l 272.541.914.929 271.258.081.446 39,47716 39,58254
Note payable
PT Efficorp Sekuritas 36.500.000.000 36.500.000.000 5,28695 5,32616
PT Asuransi Prima Perkasa Indonesia 10.000.000.000 10.000.000.000 1,44848 1,45922
T o t a l 46.500.000.000 46.500.000.000 6,73543 6,78538
Sales
PT Wahana Perkasa Auto Jaya - - - -
PT Perkasa Heavyndo Engineeering - - - -
T o t a l - - - -
Cost of goods sold - - - -
T o t a l - - - -
total assets / liabilities /
as of December 31, 2014 and 2013 income / expense
concerned
PT TEXMACO PERKASA ENGINEERING Tbk AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
Percentage of
Balance
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 52
33. RELATED PARTIES INFORMATION (continued)
a. Nil% is sales to related parties (Note 4).
b.
c.
Nature of Special Relationships
The nature of the Company's special relationship with related parties are as follows:
a. Companies whose shareholders are the same as the main shareholders of the Company and subsidiaries.
PT Asia Pacific Fibers Tbk
(PT Polysindo Eka Perkasa Tbk) Purchases, sales, loans
PT Texmaco Taman Synthetics Purchases, sales, loans
PT Perkasa Indobaja Purchases, sales, loans
PT Texmaco Jaya Tbk (Under Liquidation) Purchases, sales, loans
PT Wastra Indah Purchases, sales, loans
PT Bima Peranan Busana Purchases, sales, loans
PT Bank Putera Multikarsa Loan
Polysindo (USA) Inc. USA Purchase
Polysindo (Japan) Inc. Japan Purchase
Polysindo Ltd. Singapore Purchase
PT Waniaindah Busana Tbk
(formerly PT Indosteel Tbk) Machine purchase
PT Asuransi Prima Perkasa Int' Loan
Sekolah Tinggi Teknologi Texmaco Sales
PT Texmaco Micro Indo Utama Purchases, sales
PT Wahana Perkasa Auto Jaya Purchases, sales
PT Wahana Jaya Perkasa Tbk Loan
Dana Pensiun Texmaco Group Loan
PT Wisma Karya Prasetya (Under Lquidation) Purchases, loans
PT Raja Busana Mahameru Sales
PT Saritex Jaya Swasti Sales
PT Devrindo Widya Sales
In its business activities, the Company and its subsidiaries conduct certain transactions with related parties in 2014 and 2013 as
follows:
In its business activities, the Company and its subsidiaries also entered into purchases of raw materials and auxiliary materials
with related parties totaling Rp 21,890,000 and Rp. Zero, which constituted 0.09% and 0% of the purchases (Notes 14 and 25 )
Accounts receivable and payable to related parties represent interest-free and unsecured current account balances which
arise, among other things, from advances and expenses of the Company with related parties paid in advance or otherwise.
TransactionsNature of relationship
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
Affiliated company
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
PT TEXMACO PERKASA ENGINEERING Tbk AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 53
33. RELATED PARTIES INFORMATION (continued)
b. Companies that are part of the management or management are the same as the Company and subsidiaries.
PT Citra Indah Textil Purchases, sales
PT Eficorp Sekuritas Loan
Reksadana DUIT Loan
PT Perkasa Indosteel Loan
PT Bridgeport Perkasa Machine Tools Sales
c. PT Perkasa Heavyndo Engineering is an associate company.
Nature of relationship Transactions
Affiliated company
Affiliated company
AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Affiliated company
Affiliated company
Affiliated company
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
PT TEXMACO PERKASA ENGINEERING Tbk
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 54
34. ASSETS AND MONETARY LIABILITIES IN FOREIGN CURRENCY
As of December 31, 2014 and 2013 the Company and subsidiaries have monetary assets and liabilities in foreign currencies as follows:
Currency equivalent Currency equivalent
A s s e t foreign Rupiah foreign Rupiah
Cash and cash equivalents USD 2.422.012,87 30.129.840.047 2.471.765,17 30.128.345.626
NLG 2.000,00 9.991.967 2.000,00 9.790.361
Accounts receivable
- Third parties USD 2.649.532,71 32.960.186.877 2.032.071,00 21.385.058.130
Other receivables
- Related parties USD 1.244.100,00 15.476.604.000 1.244.100,00 15.164.334.900
- Third parties NLG 10.402.159,26 51.969.020.560 10.402.159,26 50.920.449.486
Total assets 130.545.643.451 117.607.978.503
Obligations
Bank loan USD 2.144.048,00 26.671.957.120 2.144.048,00 26.133.801.072
Notes Payable short term USD 13.180.000,00 163.959.200.000 13.180.000,00 160.651.020.000
Account payable
- Third parties USD 2.187.706,49 27.215.068.712 1.931.015,21 23.537.144.338
Other debts
- Third party NLG 2.000,00 9.991.967 2.000,00 9.790.361
- Related parties USD 773.951,00 9.627.950.440 773.951,00 9.433.688.739
Accued and accrued interest USD 7.674.015,54 95.464.753.318 7.674.015,54 93.538.575.417
Finance lease debt USD 506.762,14 6.304.121.022 506.762,14 6.176.923.724
Notes Payable Long term USD 100.000.000,00 1.244.000.000.000 100.000.000,00 1.218.900.000.000
Long-term bank loan USD 74.362.521,82 925.069.771.441 74.362.521,82 906.404.778.464
JPY 33.588.128,00 3.501.522.038 33.588.128,00 3.901.892.524
Total of liabilities 2.501.824.336.058 2.448.687.614.640
Total Obligations - Net 2.371.278.692.607 2.331.079.636.137
As of December 31, 2014 and 2013, the middle rate of Bank Indonesia was as follows:
2 0 1 4 2 0 1 3
Foreign currency Rp Rp
EUR 1 15.133,27 16.821,44
USD 1 12.440,00 12.189,00
JPY 1 104,2488 116,1688
NLG 1 4.995,98 4.895,18
The Company and its subsidiaries posted a net loss on foreign exchange of Rp 42,479,469,838, - in 2014 and amounting to Rp 490,997,212,412 in
2013 (Note 30).
2 0 1 4 2 0 1 3
(Continued)
PT TEXMACO PERKASA ENGINEERING Tbk AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 55
35. DEBT RESTRUCTURING
a. Debt restructuring at the Indonesian Bank Restructuring Agency (IBRA)
The following is a restructuring scheme that has been approved in the MRA, including:
*
* The composition of ownership of NewEngCo is 100% owned by the founding shareholders.
*
*
* Both parties will make arrangements for management and control of NewCo and NewCo assets and subsidiaries.
* Completion of obligations under this restructuring scheme expires / expires in 2011.
* IBRA will appoint an independent financial controller to conduct cash monitoring of the Texmaco group company.
PT TEXMACO PERKASA ENGINEERING Tbk
AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
IBRA and the Texmaco Group will form 2 new companies (NewCo), one for the textile division (NewTexCo) and one for the
engineering division (NewEngCo).
IBRA will transfer all bills to each NewCo and for the transfer NewCo will issue a Secured Guaranteed Exchangeable Bond to
IBRA.
The founding shareholders will transfer the Core Assets and Non Core Assets to each NewCo and for the transfer NewCo will
issue the Subordinated Exchangeable Bond to the founding shareholders.
Both parties will make an Implementation Agreement (Implementation Agreement) for the implementation of the basic terms
and conditions of restructuring.
Based on the "Memorandum of Understanding on the Agreement on the Basic Principles for Restructuring of Texmaco"
(MOU) which was notarized by Notary Bambang Sularso, SH No. 15 September 29, 2000, Marimutu Sinivasan (MS), who
directly and / or indirectly controlled and / or owned majority shares of the Company and subsidiaries, and IBRA approved the
restructuring model of the Texmaco (Texmaco) business group's obligations, including the obligations of the Company and
entities child, to IBRA. The restructuring of Texmaco includes changes in repayment requirements and interest delays. Based
on the MOU, all the obligations of the Company and subsidiaries will be transferred to the holding company (Newco) which
will issue exchangeable bonds to IBRA within the period of repayment from 2008 to 2011, while the Company and
subsidiaries will issue subordinated exchagenable or convertible bonds bonds) to Newco in the amount of the total liabilities of
the Company and its subsidiaries to IBRA based on the Transfer Assets Price covered by the MOU.
In connection with the MOU, in 2001 all the obligations of the Company and subsidiaries were classified as long-term
liabilities.
On April 11, 2001, the Financial Sector Policy Committee (KKSK) approved the process of restructuring Texmaco as a follow-
up to Decree No. KKSK. Kep 01 / K.KKSK / 03/2001 dated March 20, 2001 which stipulated, among others, that the Texmaco
engineering business sector was included in the category of core assets in the process of restructuring Texmaco.
Based on Notarial deed Olvia Afiaty, SH No. 9 April 18, 2001, PT Jaya Perkasa Engineering (JPE) was established as a
holding company owned by Marimutu Sinivasan to settle the obligations of all Texmaco Group Engineering obligations,
including the Company and several subsidiaries to IBRA in connection with the signing of the MOU.
The MOU dated September 29, 2000 was replaced by the Master Restructuring Agreement (MRA) for Texmaco Group dated
May 23, 2001, which was subsequently amended by First Amendment MRA No. 5 dated September 21, 2001 and was last
amended by Second Amendment MRA No. 12 dated January 18, 2002, whose contents, among others, extended the period
of completion of Precedent Conditions to 360 days, namely until May 22, 2002.
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 56
35. DEBT RESTRUCTURING (Continued)
b. Debt restructuring at the National Bank Restructuring Agency (IBRA) (continued)
- The implementation of the above restructuring scheme that has been implemented is:
- The company group has formed New Engg Co, namely PT Jaya Perkasa Engineering.
- Cash monitoring.
- The company and PT Jaya Perkasa Engineering signed a Restructuring Agreement on September 20, 2002.
-
c. The restructuring process through the Jakarta Initiative
Proposals that have been proposed by management to restructure loans to creditors are as follows:
Converted to capital 78% of obligations
New obligations 22% of obligations
Interest rate 1% above SIBOR
Time period 2005 to 2011
The Company obtained the approval of the shareholders through the EGMS on December 27, 2002 for the addition of the
Company's capital in connection with the conversion of its debt into capital in accordance with the Restructuring Agreement.
In 2014 and 2013 the Company experienced a shortage of working capital, so the Company could not move at a level that
would allow it to reach the targeted production level. This has caused the Company to be unable to fulfill the terms and
conditions of the Individual Restructuring Agreement, therefore there has been no major progress with regard to the results of
the restructuring. The restructuring scheme that has been approved by creditors is still in the implementation process.
Until now, all debts transferred to PT Jaya Perkasa Engineering (JPE) have been handled by the IBRA Settlement Team. The
IBRA Settlement Team is still in the process of identifying loans to be transferred to PT Perusahaan Pengelola Asset (PT
PPA).
The restructuring scheme that was made in 2002 through the Jakarta Initiative has yet to be realized and at present the
Company intends to restart the negotiation process directly with its creditors as explained in notes 12, 13, 19, 20 and 21.
The restructured loans through Prakarsa Jakarta consist of secured loans of US $ 100,000,000, and unsecured loans totaling
Rp 133,790,701,621, US $ 19,386,990 and JPY ¥ 33,588,128.
Based on the Minutes of Meeting on March 21, 2002 sponsored by the Jakarta Initiative with the results of creditors who
agreed 74.70%, disagree 14.9% and abstain 4%, and management is required to negotiate with each creditor bilaterally to
explain more continued with the management proposal.
The Company has signed an In-Principle Restructuring Agreement with PT Eastern Finance Corporation in October 2002 on
the balance of notes payable of Rp. 36,500,000,000 and has also signed an In-Principle Restructuring Agreement with PT
Asuransi Prima Perkasa International for outstanding balance of Rp. 10,000,000,000 and loans to Mizuho with a balance of
Rp 89,642,507,482 with the scheme of restructuring scheme as follows:
PT TEXMACO PERKASA ENGINEERING Tbk AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 57
35. DEBT RESTRUCTURING (Continued)
c. The restructuring process through the Jakarta Initiative (continued)
Converted to capital 78% of obligations
New obligations 22% of obligations
Interest rate 1% above SIBOR
Time period 2006 to 2011
*
*
36. OBLIGATIONS OF POST-EMPLOYMENT BENEFITS
37. COMMITMENTS
a.
The effective entry into force of the above agreements is still awaiting other equipment including various conditions precedent
and conditions subsequent.
Effective in 2005 the Statement of Financial Accounting Standards (PSAK) number 24 (revised 2004) was implemented,
which requires the Company to record employee employee benefits.
Based on PSAK No. 24 (revision 24) concerning employee benefits, requires the Company to recognize work obligations,
including post-employment benefits (Defined Benefit Program).
Accounting for defined benefit programs requires actuarial assumptions by using the projected unit credit method to determine
the present value of defined benefit obligations, current related service costs and past service costs.
The balance of the post-employment benefits obligation as of December 31, 2014 and 2013 amounted to Rp 3,271,322,852,
and Rp. 3,359,976,922, respectively, which was calculated and recorded until 2002.
Since 2003 until this report was published, management has not calculated and recorded the amount of work in return as
required in the PSAK on the Company's financial statements.
The company entered into an agreement with GDW. Werkzeugmaschinen Herzogenaurach Gmbh where the party will
provide technical know-how in producing Modular Lathe System 250 and 350. The company will pay DM 370,000 in three
installments as stated in the agreement.
The restructuring of long-term notes payable (FRN) of US $ 122 million consisted of principal debt of US $ 100 million and
interest of US $ 22 million. FRN creditors agreed to restructure the FRN debt into new FRN debt with a loan principal of US $
51.1 million (41.9% of FRN debt). FRN creditors have agreed to convert debt into investments (debt equity swap) for the rest
of the restructured FRN debt of US $ 70.9 million (58.1% of FRN debt).
At the Holders Floating Rate Notes (FRN) on September 20, 2002, which was attended by 77% of FRN holders approved the
"Congengual Debt Restructuring Plan" submitted by the Company was 97.4%. At present the Company is preparing a legal
process for documents with the approval of the FRN Holders.
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
PT TEXMACO PERKASA ENGINEERING Tbk AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Prakarsa Jakarta informal meeting organizers discussing unsecured loans and secured loans (Floating Rates Notes Holders)
approved a restructuring proposal. The company and creditors have agreed to the restructuring scheme as follows:
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 58
37. COMMITMENTS (continued)
b.
c.
d.
Equivalent
US $ Rp
Balance as of December 31, 2013 773.951 9.433.688.739
Exchange rate difference - 194.261.701
Balance as of December 31, 2014 773.951 9.627.950.440
This amount is recorded in other accounts payable to the entity (Note 33).
38. BUSINESS SEGMENT INFORMATION
Information about the Company's business segments is as follows:
2 0 1 4 2 0 1 3
Rp Rp
Information by Geographical Area
Net sales :
Export 70.106.065.698 50.237.499.774
Domestic 10.903.938.099 18.567.317.501
Total 81.010.003.797 68.804.817.275
Information by Product Type
Net sales :
Engine spareparts 81.010.003.797 68.804.817.275
Cost of goods sold
Engine spareparts 39.631.327.530 36.473.428.982
Profit / (Loss) Business
Engine spareparts 41.378.676.267 32.331.388.293
PT TEXMACO PERKASA ENGINEERING Tbk
The company entered into an agreement with MS. Machinery and System S.r.l. Italy, where the party will provide technical
assistance Technical know-how in producing Continuous Rotary Screen Printing machines. The company will pay a certain
amount of technical assistance and royalties as stated in the agreement.
The company entered into an engineering cooperation agreement with ICBT Diedrichs. France, to produce weaving
machines. The company will pay a certain amount of technical assistance (technical know-how) as stated in the agreement.
The company entered into an agreement with Coastal Group Limited. South Africa, in connection with implementing a turnkey
textile plant in Hammarsdale, Durban. South Africa is US $ 24,920,000 with Commonwealth Holding Pte, Ltd, Singapore (a
related party) as an intermediary. The company is in the process of supplying and installing textile machinery and has
received advances in accordance with the agreement. As of the balance sheet date, reports on changes in advances received
by the Company from Coastal Group Limited are as follows:
AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 59
39. FINANCIAL RISK MANAGEMENT
* Operating income of Rp. 318,500,920 and Rp. 5,396,242,645.
* Net loss of Rp. 51,016,329,016 and Rp. 1,170,844,042,245.
* The deficit was Rp 4,244,321,472,228, and Rp. 4,193,305,143,212, - as a result of successive losses in operations.
* Negative working capital of Rp. 1,102,109,509,570 and Rp. 1,091,418,630,880.
1.
2.
3.
PT TEXMACO PERKASA ENGINEERING Tbk AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2014 AND 2013
In connection with the above, the Company and subsidiaries have continued or plan to carry out a number of actions including:
The company continually saves costs by reducing several possible posts to be reduced, so that the Company can survive
until now with the company's assets that are still productive.
The company strives continuously and consistently to collaborate with strategic investors who share the same vision with
current management.
The company strives to maintain and improve its foundry operations (Foundry Division) which has contributed to maintaining
the company's operations, while maintaining cooperation and relationships with General Electric Transportation System (USA)
and General Electric Industrial Systems (Canada), TYCO Australia and Komatsu to continue developing new company
products.
As explained in Notes 12, 13, 19, 20, 21 and 35 financial statements up to the auditor's report date, the Company and subsidiaries
are still negotiating with their creditors to restructure their loans, management believes that negotiations will produce positive
results, namely granting lower interest rates and other aspects involving extension of time and reduction in loan value.
The foregoing creates uncertainty regarding the ability of the Company and its subsidiaries to maintain viability and significant
uncertainty whether the Company and subsidiaries will be able to realize assets and settle payment of liabilities in normal business
and at the values stated in the consolidated financial statements. The consolidated financial statements do not include adjustments
that originate from this uncertainty. The accompanying consolidated financial statements are prepared assuming that the Company
and its subsidiaries will continue their business as entities capable of sustaining viability, and do not include any adjustments as a
result of uncertainty about the survival of the Company.
Furthermore, economic development has significantly affected the Company's 2014 and 2013 financial statements as reflected by:
As a result of the problems mentioned above, there is significant uncertainty regarding the Company's ability to continue its
business and whether it will be able to realize its assets and settle its obligations in the normal course of business and the amount
stated in the consolidated financial statements. The consolidated financial statements are prepared with the assumption that the
Company and its subsidiaries are capable of sustaining their survival and do not include adjustments that may arise from these
uncertainties.
The government has tried to attract new investors and concentrate on building basic infrastructure that provides great opportunities
for the company. With the existence of a number of new investments in the manufacturing industry, it is hoped that it can increase
the demand for capital goods and machinery that can provide adequate contributions to the utilization of the capacity of machinery
in the PT. Texmaco Perkasa Engineering Tbk.
(Continued)
(Expressed in Rupiah, unless otherwise stated)
Report No. : LT / 102 / HPR-5 / XI / 2015
Page : 60
39. FINANCIAL RISK MANAGEMENT (continued)
4.
5.
40. OTHER IMPORTANT INFORMATION
The new / revised accounting standards relevant to the company's operations, published and effective in 2015 are:
- PSAK No. 1 (revised 2013): Presentation of financial statements
- PSAK No. 4 (revised 2013): Separate financial statements
- PSAK No. 15 (revised 2013): Investment in associates and joint ventures
- PSAK No. 24 (revised 2013): Employee benefits
- PSAK No. 46 (revised 2014): Income tax
- PSAK No. 48 (revised 2014): Decline in asset value
- PSAK No. 50 (revised 2014): Financial instruments; presentation
- PSAK No. 55 (revised 2014): Financial instruments; recognition and measurement
- PSAK No. 60 (revised 2014): Financial instruments; disclosure
- PSAK No. 65: Consolidated financial statements
- PSAK No. 66: Joint arrangements
- PSAK No. 67: Disclosure of interests in other entities
- PSAK No. 68: Measurement of fair value
The company is still evaluating the possible impact of the issuance of these financial accounting standards.
41. RESPONSIBILITY FOR COMPLETION OF THE CONSOLIDATED FINANCIAL STATEMENTS
The company continues to strive to continue the restructuring process to overcome funding barriers, so that it can support
capital and achieve company goals in the future.
The recovery of the economy to a healthy and stable condition is highly dependent on fiscal and monetary policies that the
Government continues to strive to make healthy economies - an act that is beyond the Company's control. Therefore it is not
possible to determine the impact of future economic conditions on the liquidity and income of the Company and its subsidiaries,
including the impact of the flow of funds from customer and supplier investors to and from the Company and subsidiaries.
The Company's management is responsible for the preparation of the Company's financial statements and has agreed to publish
the 2014 financial statements of the Company on November 30, 2015.
The company will strive to increase local and international market share by improving quality production, timely delivery and
competitive pricing.
AS OF DECEMBER 31, 2014 AND 2013
(Expressed in Rupiah, unless otherwise stated)
(Continued)
PT TEXMACO PERKASA ENGINEERING Tbk AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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