PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES These - PDF document

Consolidated Financial Statements With Independent Auditors’ Report Years ended December 31, 2003 and 2002 (Indonesian Currency) PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES

These consolidated financial statements are originally issued in Indonesian language. PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS WITH INDEPENDENT AUDITORS’ REPORT YEARS ENDED DECEMBER 31, 2003 AND 2002 Table of Contents Page Independent Auditors’ Report Consolidated Balance Sheets …………………………………………………………………………. 1-2 Consolidated Statements of Income ………………………………………………………………….. 3 Consolidated Statements of Changes in Shareholders’ Equity ……………………………………. 4 Consolidated Statements of Cash Flows …………………………………………………………….. 5-6 Notes to the Consolidated Financial Statements .…………………………………………………… 7-50 ***************************

This report is originally issued in Indonesian language. Independent Auditors’ Report Report No. RPC-1592 The Shareholders, and the Boards of Commissioners and Directors PT Indocement Tunggal Prakarsa Tbk. We have audited the consolidated balance sheets of PT Indocement Tunggal Prakarsa Tbk. (the “Company”) and Subsidiaries as of December 31, 2003 and 2002, and the related consolidated statements of income, changes in shareholders’ equity and cash flows for the years then ended. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We did not audit the financial statements of all associated companies, the investments in which are accounted for in the consolidated financial statements using the equity method. The carrying values of these investments represent approximately 0.24% and 1.98% of the total consolidated assets as of December 31, 2003 and 2002, respectively, while the related equity in net earnings (losses) of these associated companies amounted to Rp 1,256,450,475 in 2003 and (Rp 6,964,775,864) in 2002. We conducted our audits in accordance with auditing standards established by the Indonesian Institute of Accountants. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of PT Indocement Tunggal Prakarsa Tbk. and Subsidiaries as of December 31, 2003 and 2002, and the results of their operations, and their cash flows for the years then ended in conformity with generally accepted accounting principles in Indonesia.

This report is originally issued in Indonesian language. Note 22 to the consolidated financial statements summarizes the effects of the economic conditions in Indonesia on the Company and Subsidiaries, as well as the measures the Company and Subsidiaries have implemented in response to the economic conditions. The accompanying consolidated financial statements include the effects of the economic conditions to the extent that they can be determined and estimated. PRASETIO, SARWOKO & SANDJAJA Drs. Soemarso S. Rahardjo, ME Public Accountant License No. 98.1.0064 January 20, 2004 The accompanying consolidated financial statements are not intended to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Indonesia. The standards, procedures and practices applied to audit such consolidated financial statements are those generally accepted and applied in Indonesia.

These consolidated financial statements are originally issued in Indonesian language. PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2003 and 2002 (Expressed in rupiah, unless otherwise stated) Notes 2003 2002 ASSETS CURRENT ASSETS Cash and cash equivalents 2c, 3 300,084,754,453 273,609,131,586 Short-term investments 2d, 7f 5,946,452,150 193,157,721,723 Trade receivables 2e, 4, 11 Third parties - net of allowance for doubtful accounts of Rp 13,332,091,743 in 2003 and Rp 16,392,497,190 in 2002 21i 294,566,141,368 249,064,859,792 Related parties 2f, 5a 22,748,551,497 36,928,717,886 Other receivables from third parties - net of allowance for doubtful accounts of Rp 1,389,089,659 2e, 10 15,218,462,652 26,598,797,607 Inventories - net 2g, 6, 11 709,065,286,248 875,871,806,398 Advances and deposits 6, 24 57,943,015,022 72,586,114,137 Prepaid taxes 10 48,965,252,314 37,482,183,606 Prepaid expenses 2h 12,560,871,406 12,119,171,886 Total Current Assets 1,467,098,787,110 1,777,418,504,621 NON-CURRENT ASSETS Due from related parties 2f, 5d, 24 68,129,247,479 45,748,856,034 Deferred tax assets - net 2r, 10 7,278,466,766 316,079,036,182 Long-term investments and advances to associated companies - net of allowance for doubtful accounts of Rp 13,431,144,026 in 2003 and Rp 13,789,698,006 in 2002 2b, 2f, 7, 24 24,864,880,556 62,134,771,993 Property, plant and equipment - net of accumulated depreciation, amortization and depletion of 2i, 2j, 2k, 2l, Rp 2,910,855,783,693 in 2003 and 5c, 8, 11, Rp 2,520,144,702,511 in 2002 21g, 21h 8,140,674,858,601 8,541,455,141,160 Restricted cash and time deposits 3, 11, 12 368,504,768,694 593,895,812,471 Other non-current assets 2h, 2m, 8, 21c, 24 68,514,825,152 100,791,348,303 Total Non-Current Assets 8,677,967,047,248 9,660,104,966,143 TOTAL ASSETS 10,145,065,834,358 11,437,523,470,764 The accompanying notes form an integral part of these consolidated financial statements. 1

These consolidated financial statements are originally issued in Indonesian language. PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (continued) December 31, 2003 and 2002 (Expressed in rupiah, unless otherwise stated) Notes 2003 2002 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Trade payables 9 Third parties 21d, 21e, 24 106,900,353,070 101,712,666,265 Related parties 2f, 5e 796,852,775 1,617,742,080 Other payables to third parties 2q, 8, 21k 43,169,864,325 39,551,424,566 Accrued expenses 2f, 5e, 11, 18, 20 76,994,864,638 125,548,668,827 Taxes payable 10 46,388,550,615 28,342,949,278 Current maturities of long-term liabilities Loans from banks and financial institutions 2f, 5d, 11 497,318,750,000 299,490,000,000 Obligation under capital lease 2k, 8, 12 1,752,355,760 - Others 2o, 20, 21j 6,062,667,633 - Other current liabilities 5,568,622,589 15,692,762,057 Total Current Liabilities 784,952,881,405 611,956,213,073 NON-CURRENT LIABILITIES Due to related party 2f, 5b, 5d 1,819,921,011 7,500,993,255 Deferred tax liabilities - net 2r, 10 290,799,555 - Long-term liabilities - net of current maturities Loans from banks and financial institutions 2f, 5d, 11 4,792,846,759,308 6,997,925,764,030 Obligation under capital lease 2k, 8, 12 3,504,711,520 - Others 2o, 20, 21j 17,495,856,555 - Deferred gain on sale and leaseback transactions - net 2k 10,697,108,865 11,745,876,520 Total Non-Current Liabilities 4,826,655,156,814 7,017,172,633,805 SHAREHOLDERS’ EQUITY Capital stock - Rp 500 par value per share Authorized - 8,000,000,000 shares Issued and fully paid - 3,681,231,699 shares in 2003 and 3,681,223,519 shares in 2002 13 1,840,615,849,500 1,840,611,759,500 Additional paid-in capital 2t, 14 1,194,236,402,048 1,194,229,040,048 Other paid-in capital 15 338,250,000,000 338,250,000,000 Differences arising from changes in Subsidiary's equity 2b (841,391,078 ) (55,633,848,147 ) Differences arising from restructuring transactions among entities under common control 2b (330,799,198,508 ) (330,799,198,508 ) Unrealized losses on available-for-sale securities - net 2d (3,069,178,320 ) (3,038,715,970 ) Retained earnings Appropriated 16 75,000,000,000 50,000,000,000 Unappropriated 1,420,065,312,497 774,775,586,963 Net Shareholders’ Equity 4,533,457,796,139 3,808,394,623,886 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 10,145,065,834,358 11,437,523,470,764 The accompanying notes form an integral part of these consolidated financial statements. 2