Table of contents - Mercatormercator.in/investors/FinSub2016-17/PT Nuansa Sakti Kencana.pdf ·...

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Table of contents

Director's statement letter

Independent auditor's report

1 Statement of financial position

3 Statement of profit or loss and other comprehensive income

4 Statement of changes in capital deficiency

5 Statement of cash flows

7 Notes to financial statements

l{uansa Sakti Kencana

DIRECTORS' STATEMENTON THE RESPONSIBTTITY FOR THE FINANCIAT STATEMENTS

FOR THE YEAR ENDED MARCH 3'1,2017PT NUANSA SAKTI KENCANA

PT. J{uansa Salti lGncanaKawasan Mega KuninganMenara Prima, lSth Floor Unit A & BJl. Lingkar Mega Kuningan No. 6.2Jakarta Selatan 12950, lndonesiareb i+62-21 52948028Fax : +62-21 57949029

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Residentiol Address (inoccordonce wiih indentity cord)Telephone No.Title

JoysongkerMenoro Primo l5th floor, Units A qnd B, Jl LingkorMego Kuningqn Blok 86.2, kowoson Mego Kuningon,Eost Kuningon, Setiobudi. JokqrioJl.Uniung Suropoti RT 009, Deso Jone, Kec. TonqhGrogol, Kob. Poser, Kqlimqnton Timur+62 813 6232 tO79Director

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l' we ore responsible forlhe preporolion ond presentolion of the Compony's finonciol stotements forlhe yeor ended Morch 3l ,2017.

2' The Compony's finonciol stotements hove been prepored ond presented in occordonce withgenerolly occepted occounting principles opplied in lndonesio.

3' All informotion hos been fully ond correctly disclosed in lhe Compony's finonciol stotements, ond lheCompony's finonciol stqtements do not contoin moteriolly misleoding informotion or focts, ond donot conceol ony informotion or focls

4. I om responsible for the Compony's internol control system.

Ihis stotement hos been mode lruthfully.

Jokorto, Moy 10,2017

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!NDEPENDENT AUDITOR'S REPORT

NO. OPN/NSK/MAR' 17 I I 47

The shoreholders ond lhe boords of commissloner ond direclor

.PT NUANSA SAKTI KENCANA

We hove oudited the occomponying finonciol stotemenls of PT Nuonso Soktl Kencono ("TheCompony"), which comprise the stotement of finonciol position os of Morch 31 , 2017 , ond the slotementof profil of loss ond other comprehensive income. chonges in copitol deficiency ond cosh flows for theyeor ihen ended, ond o summory of significonl occounling policies ond olher explonotory informotion.

Monogemenl's responsibllliy for lhe flnonclol slolemenls

Monogemenl is responsible for lhe preporotion ond foir presenlotion of such finonciol stolemenls inoccordonce wilh lndonesion Finonciol Accounting Stondords, ond for such internol control osmonogement determines is necessory to enoble lhe preporolion of finonciol slotemenls thot ore freefrom moteriol misstotement, wheiher due to froud or enor.

Audllor's responsibllity

Our responsibility is to express on opinion on such finonciol stotements bosed on our oudit. Weconducted our oudil in occordonce with Stondords on Auditing estoblished by the lndonesion lnslilute ofCertified Public Accountonls. Those stondords require lhot we comply with ethicol requirements ond plonond perform the oudit to obtoin reosonoble ossuronce obout whether such finonciol slotements ore freefrom moteriol misslolement.

An oudii lhvolves performing procedures lo obtoin oudit evidence obout ihe omounts ond disclosures inlhe finonciol stotements. The procedures selected depend on the ouditor's judgemenl, including theossessment of the risks of moteriol misstotement of the finonciol siotements, whelher due to froud or error.ln moking those ossessmenis, the ouditor considers inlernol control relevonl to the entity's preporolionond foir presentotion of the finonciol slolements in order to design oudit procedures thot ore oppropriotein the circumslonces, bui not for lhe purpose of expressing on opinion on the effectiveness of the entity'sinlernol control. An oudit olso includes evoluoting lhe opproprioteness of occounting policies used ondihe reosonobleness of occounting estimotes mode by monogement, os well os evoluoting the overollpresentolion of the finonciol stotemenls.

We believe ihot the oudil evidence we hove obtoined is sufficient ond opproprioie to provide o bosis forour oudil opinion.

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Oplnlont.*ln our opinion, the occomponying finonciol stotements present foirly, in oll moleriol respects, lhe finonciolposilion of PI Nuonso Sokll Kenconq os of Morch gl , 2017. ond their finonciol performonce ond coshflows for lhe yeor

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PT NUANSA SAKTI KENCANA STATEMENT OF FINANCIAL POSITION

As of March 31, 2017 (Expressed in United States dollar)

The accompanying notes to the financial statements form an integral part of these financial statements taken as a whole.

1

Notes 2017 2016

ASSETS

CURRENT ASSETS Cash on hand and in banks 2,4 36,617 18,993 Other receivables Related party 2,5 - 16,704 Third parties 5 - 178,807 Due from related parties 2,6 - 208,304 Prepaid tax 2,7 - 618

TOTAL CURRENT ASSETS 36,617 423,427

NON-CURRENT ASSET Tax amnesty asset Fixed asset Cost 6,153 Accumulated depreciation (6,153) -

TOTAL NON-CURRENT ASSET - -

TOTAL ASSETS 36,617 423,427

LIABILITIES AND CAPITAL DEFICIENCY

CURRENT LIABILITIES Other payable Third party - 86 Due to related party 2,9 119,687 489,537 Accrued expenses - 2,241 Tax payable 2,7 - 83

TOTAL CURRENT LIABILITIES 119,687 491,947

NON-CURRENT LIABILITY Employee benefits liability 2 - 16,632

TOTAL NON-CURRENT LIABILITY - 16,632

TOTAL LIABILITIES 119,687 508,579

March 31,

PT NUANSA SAKTI KENCANA STATEMENT OF FINANCIAL POSITION (continued)

As of March 31, 2017 (Expressed in United States dollar)


2

Notes 2017 2016

CAPITAL DEFICIENCY Equity attributable to owners of the entity Capital stock Authorized, subscribe and fully paid - 5,100 shares at par value of Rp 1,000,000 per share 10 572,776 572,776 Deficit (655,846) (657,928)

TOTAL CAPITAL DEFICIENCY (83,070) (85,152)

TOTAL LIABILITIES AND CAPITAL DEFICIENCY 36,617 423,427

March 31,

PT NUANSA SAKTI KENCANA STATEMENT OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME For the year ended March 31, 2017

(Expressed in United States dollar)


3

Notes 2017 2016

SALES 2,11 - 4,201,504

COST OF GOOD SOLD 2,12 - (4,268,148)

GROSS LOSS - (66,644)

Gain on foreign exchange - net 134 11,489 Gain on sale of fixed asset - 10,611 Loss on disposal of fixed assets - (3,278) Selling expenses 2,13 - (326,964) Taxes expense (11,158) (35,319) General and administrative expenses 2,14 (17,044) (186,381) Other income - net 30,151 461,820

INCOME (LOSS) FROM OPERATIONS 2,082 (134,666)

Finance cost - -

INCOME (LOSS) BEFORE INCOME TAX 2,082 (134,666)

INCOME TAX EXPENSE Current 2 - - Deferred 2 - (11,248)

INCOME (LOSS) FOR THE YEAR 2,082 (145,914)

OTHER COMPREHENSIVE INCOME - -

TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE YEAR 2,082 (145,914)

Year ended March 31,

PT NUANSA SAKTI KENCANA STATEMENT OF CHANGES IN CAPITAL DEFICIENCY

For the year ended March 31, 2017 (Expressed in United States dollar)


4

Capital stock - Totalissued and capitalfully paid Deficit deficiency

Balance as of April 1, 2015 572,776 (512,014) 60,762

Loss for the year - (145,914) (145,914) Other comprehensive income - - -

Balance as of March 31, 2016 572,776 (657,928) (85,152)

Income for the year - 2,082 2,082 Other comprehensive income - - -

Balance as of March 31, 2017 572,776 (655,846) (83,070)

PT NUANSA SAKTI KENCANA STATEMENT OF CASH FLOWS



5

2017 2016

CASH FLOW FROM OPERATING ACTIVITIES Income (loss) before income tax 2,082 (134,666)

Adjustment to reconcile income (loss) before income tax to net cash provided by (used in) operating activities Gain on recognition of tax amnesty asset (6,153) - Severance pay (5,349) 17,068 Loss on disposal of fixed assets - 3,278 Gain on sale of fixed asset - (10,611) Depreciation of tax amnesty asset 6,153 8,415 Increase (decrease) in Accounts receivable 178,807 806,100 Prepayments - 209,532 Prepaid tax 618 (618) Other assets - 183,054 Accounts payable (86) (191,385) Accrued expenses (2,241) (1,241,921) Taxes payable (83) (4,623)

Cash provided by (used in) operating activities 173,748 (356,377)

Proceeds from taxes restitution 29,402 Payment of employee benefits (11,283) (26,519)

Net cash provided by (used in) operating activities 162,465 (353,494)

CASH FLOW FROM INVESTING ACTIVITIES Disbursement of short-term investment - 100,000 Proceeds from sale of fixed asset - 18,056 Acquisition of fixed assets - (650)

Net cash provided by investing activities - 117,406

Year ended December 31,

PT NUANSA SAKTI KENCANA STATEMENT OF CASH FLOWS (continued)



6

2017 2016

CASH FLOW FROM FINANCING ACTIVITIES Decrease in due from related parties 225,009 396,994 Decrease in due to related parties (369,850) (510,463)

Net cash used in financing activities (144,841) (113,469)

INCREASE (DECREASE) IN NET CASH ON HAND AND IN BANKS 17,624 (349,557)

CASH ON HAND AND IN BANKS, AT BEGINNING OF YEAR 18,993 368,550

CASH ON HAND AND IN BANKS, AT END OF YEAR 36,617 18,993

Year ended December 31,

PT NUANSA SAKTI KENCANA NOTES TO THE FINANCIAL STATEMENTS

As of March 31, 2017 and for the year then ended (Expressed in United States dollar, unless otherwise stated)

7

1. GENERAL

a. The Company’s establishment

PT Nuansa Sakti Kencana (“the Company”) was established based on notarial deed no. 9 of public notary Hasbullah Abdul Rasyid, SH, M.Kn dated April 3, 2002. The deed of establishment was approved by the Minister of Law and Human Rights of the Republic of Indonesia in decision letter no. C-07100 HT.01.01.Tahun 2002 dated April 25, 2002, and was published in State Gazette No. 27 dated April 5, 2011, Supplement No. 9158 Year 2011. The Company’s articles of association have been amended several times, most recently by notarial deed no. 44 of public notary Mellyani Noor Shandra, SH, dated February 16, 2011 to comply with Company Law no. 40 Year 2007 dated August 16, 2007 concerning limited companies. The changes have been approved by the Minister of Law and Human Rights of the Republic of Indonesia in decision letter no. AHU-11585.AH.01.02 Year 2011 dated March 8, 2011. The Company’s scope of activities is coal mining and sales. In January 2016, the Company had sold all of its fixed assets including site equipment. Therefore, since then the Company has no more business activity. The Company is domiciled in Menara Prima, 15th floor, units A and B, Jalan Lingkar Mega Kuningan Blok B6.2, Kawasan Mega Kuningan, East Kuningan, Setiabudi, Jakarta.The Company’s site is located in Desa Petanggis, Kecamatan Batu Engau, Kabupaten Paser, East Kalimantan. The Company belongs to a group of companies owned by Mercator Limited (the Group), a group listed in the National Stock Exchange and Bombay Stock Exchange, India.

b. Coal mining license

The Company has obtained a coal mining and exploitation licence based on decision letter of Paser Regent no. 545/10/Eksploitasi/EK/XII/2007 covering 203,739 ha. The license has been reused several times most recently comply with government regulation no. 23 year 2010, “Mining Production Activity Licences” based on decision letter of Paser Regent no. 545/5/Operasi Produksi/EK/XII/2012, valid until December 21, 2017.

PT NUANSA SAKTI KENCANA NOTES TO THE FINANCIAL STATEMENTS (continued) As of March 31, 2017 and for the year then ended

(Expressed in United States dollar, unless otherwise stated)

8

c. The boards of commissioner and director and employees

The composition of the Company’s boards of commissioner and director as of March 31, 2017 and 2016 is as follows :

2017 2016

Board of commissioner Commissioner : Kala Wili Dewi Atul Agarwal

Board of director Director : Jaysangker Raheja Kirtipal Singh

March 31

The Company has no permanent employees as of March 31, 2017 and has 1 permanent employees as of March 31, 2016, respectively. The Company’s management is responsible for the preparation of the accompanying financial statements that were completed and authorized to be issued on May 10, 2017.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Basis of preparation of the financial statements

The financial statements have been prepared in accordance with Statements of Financial Accounting Standards (“PSAK”) in Indonesia, which issued by the Financial Accounting Standards Board of the Indonesian Institute of Accountants (“DSAK”). The financial statements have been prepared on the accrual basis using the historical cost concept, except for certain accounts which are measured on the bases as described in the following notes to the financial statements. The statement of cash flows presents cash flows classified into operating, investing and financing activities. The cash flows from operating activities are presented using the indirect method. The accounting policies adopted in the preparation of the financial statements are consistent with those applied in the preparation of the Company’s financial statements for the year ended March 31, 2016. The reporting currency used in the financial statements is the United States dollar (“US$”), which is also the Company’s functional currency.

b. Foreign currency transactions and balances The Company considers the primary indicators and other indicators in determining its

functional currency. If indicators are mixed and the functional currency is not obvious, management uses its judgment to determine the functional currency that most faithfully represents the economic effects of the underlying transactions, events and conditions.



9

Transactions involving foreign currencies are recorded at the rates of exchange prevailing at the time the transactions are made. At statement of financial position date, monetary assets and liabilities denominated in foreign currencies are adjusted to reflect the last prevailing rates as of such date and the resulting gains or losses are credited or charged to current operations.

The rate of exchange used was as follows :

2017 2016

1 Indonesian Rupiah (Rp) 1/13,321 1/13,276

March 31,

c. Transactions with related parties

A related party is a person or entity that is related to the Company. a. A person or a close member of that person’s family is related to the Company, if that

person : (i) has control or joint control over the Company, (ii) has significant influence over the Company, or (iii) is a member of the key management personnel of the Company or of a parent

entity of the Company.

b. An entity is related to the Company if any of the following conditions applies : (i) The entity and the Company are members of the same group. (ii) One entity is an associate or joint venture of the Company (or an associate or joint

venture of a member of a group of which the Company is a member). (iii) Both entity and the Company are joint ventures of the same third party. (iv) The Company is a joint venture of a third entity and the other entity is an associate

of the third entity. (v) The entity is a post-employment benefit plan for the benefit of employees of either

the Company or an entity related to the Company. (vi) The entity is controlled or jointly controlled by a person identified in point a. (vii) A person identified in point a (i) has significant influence over the entity or is a

member of the key management personnel of the entity (or of a parent of the entity).

d. Employee benefits

Unfunded employee benefits liability is recognized in accordance with Labor Law no. 13/2003 and PSAK 24, “Employee Benefits”.

Pension costs are determined by periodic actuarial calculation using the projected-unit-credit method and applying the assumptions on discount rate and annual rate of increase in compensation.



10

e. Revenue and expense recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received, excluding value added taxes.

Revenue from sales is recognized at the time the significant risks and rewards of ownership of the goods have passed to the customers.

Expenses are recognized when they are incurred.

f. Corporate income tax

Current tax expense is provided based on the estimated taxable income for the year. Deferred tax assets and liabilities are recognized for temporary differences between the financial and the tax bases of assets and liabilities at each reporting date. Future tax benefits, such as tax losses carry-forward, are also recognized to the extent that realization of such benefits is probable. The tax effects for the year are allocated to current operations, except for the tax effects from transactions which are directly charged or credited to equity. Deferred tax is calculated at the tax rate that has been enacted or substantively enacted at the statement of financial position date. Amendment to tax obligation is recorded when an assessment letter is received or if appealed against, when the results of the appeal are determined. The additional taxes and penalty imposed through an assessment letter are recognized as income or expense in the current year profit or loss, unless objection/ appeal is taken. The additional taxes and penalty imposed through an assessment letter are deferred as long as they meet the asset recognition criteria.

g. Financial instruments

i. Financial assets

Initial recognition Financial assets are classified as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments and available-for-sale financial assets. The classification of financial assets is determined at initial recognition and, where allowed and appropriate, re-evaluates this designation at the end of each reporting period. Financial assets are recognized initially at fair value plus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way purchases) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the assets.



11

Subsequent measurement Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such financial assets are carried at amortized cost using the effective interest rate method. Gains and losses are recognized in the profit or loss when the loans and receivables are derecognized or impaired, as well as through the amortization process.

ii. Financial liabilities

Initial recognition Financial liabilities are classified as financial liabilities at fair value through profit or loss, liabilities at amortized cost, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The classification of financial liabilities is determined at initial recognition. Financial liabilities are recognized initially at fair value which, in the case of liabilities at amortized cost, is net of directly attributable transaction costs. Subsequent measurement After initial recognition, liabilities at amortized cost are subsequently measured at amortized cost using the effective interest rate method. Gains and losses are recognized in profit or loss when liabilities are derecognized as well as through the amortization process.

iii. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

iv. Fair value of financial instruments

The fair value of financial instruments that are actively traded in organized financial markets is determined by reference to quoted market bid prices at the close of business at the end of the reporting period. For financial instruments where there is no active market, fair value is determined using valuation techniques. Such techniques may include using recent arm’s length market transaction, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis, or other valuation models. Credit risk adjustment The Company adjusts the price in the more observable market to reflect any differences in counterparty credit risk between instruments traded in that market and the ones being valued for financial asset positions. In determining the fair value of financial liability positions, the Company’s own credit risks associated with the instruments are taken into account.



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v. Amortized cost of financial instruments

Amortized cost is computed using the effective interest rate method less any allowance for impairment and principal repayment or reduction. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate.

vi. Impairment of financial assets

The Company assesses at each statement of financial position date whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Financial assets carried at amortized cost For loans and receivables carried at amortized cost, the Company first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Company determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, the asset is included in a group of financial assets with similar credit risk characteristics, and the group is collectively assessed for impairment. Assets that are individually for impairment and for which an impairment loss is, or continues to be, recognized are not included in a collective assessment of impairment. If there is objective evidence that an impairment loss has occurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been incurred). The present value of the estimated future cash flows is discounted at the financial asset’s original effective interest rate. If a “loans and receivables” financial asset has a variable interest rate, the discount rate for measuring impairment loss is the current effective interest rate. Financial assets carried at amortized cost The carrying amount of the financial asset is reduced through the use of an allowance for impairment account and the amount of the loss is recognized in the statement of comprehensive income. Interest income continues to be accrued on the reduced carrying amount based on the original effective interest rate of the financial asset. Loans and receivables, together with the associated allowance, are written off when there is no realistic prospect of future recovery and all collateral has been realized or has been transferred to the Company. If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance for impairment account. If a future write-off is later recovered, the recovery is recognized in profit or loss.



13

vii. Derecognition of financial assets and liabilities

Financial assets A financial asset (or where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized when : (1) the rights to receive cash flows from the asset have expired, or (2) the Company has transferred its rights to receive cash flows from the asset or has

assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-though” arrangement, and either (a) the Company has transferred substantially all the risks and rewards of the

asset, or (b) the Company has neither transferred nor retained substantially all the risks

and rewards of the asset, but has transferred control of the asset.

Financial liabilities A financial liability is derecognized when the obligation under the liability is discharged or cancelled or has expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in profit and loss.

3. SOURCE OF ESTIMATION UNCERTAINTY

The preparation of the Company’s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset and liability affected in future periods.

Judgments In the process of applying the Company’s accounting policies, management has made the following judgments, apart from those including estimations and assumptions, which have the most significant effect on the amounts recognized in the financial statements : a. Determination of functional currency

Management has made judgment on the determination of functional currency. The functional currency of the Company is the currency of the primary economic environment in which the Company operates. It is the currency that mainly influences the revenue and cost of goods sold.



14

Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are discussed below : a. Determination of fair values of financial assets and financial liabilities

When the fair value of financial assets and financial liabilities recorded in the statement of financial position cannot be derived from active markets, their fair value is determined using valuation techniques including the discounted cash flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair value. The judgment includes consideration of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

b. Realizability of deferred tax assets

The Company reviews the carrying amount of deferred tax assets at the end of each reporting period and reduces these to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the deferred tax assets to be utilized. The Company’s assessment on the recognition of deferred tax assets on deductible temporary differences is based on the level and timing of forecasted taxable income of the subsequent reporting periods. This forecast is based on the Company’s past results and future expectations on revenues and expenses as well as future tax planning strategies. However, there is no assurance that the Company will generate sufficient taxable income to allow all or part of the deferred tax assets to be utilized.

c. Estimation of pension cost and other employee benefits

The cost defined benefit plan and present value of the pension obligation are determined using the projected-unit-credit method. Actual valuation includes making various assumptions which consist of, among other things, discount rates, expected rates of return on plan assets, rates of compensation increases and mortality rates. Actual results that differ from the Company’s assumptions are directly recognized as other comprehensive income. Due to the complexity of the valuation, and its underlying assumptions and long-term nature, a defined benefit obligation is highly sensitive to changes in assumptions. While the Company believes that its assumptions are reasonable and appropriate, significant differences in the Company’s actual experience or significant changes in its assumptions may materially affect the costs of and obligations for pension and other long-term employee benefits. All assumptions are reviewed at each reporting date.



15

4. CASH ON HAND AND IN BANKS

Cash on hand and in banks consist of :

2017 2016

Cash and hand Indonesian Rupiah 416 1,015

Cash in banks Indonesian Rupiah PT Bank Danamon Indonesia, Tbk. 31,162 12,794 PT Bank Mandiri (Persero), Tbk. 4,919 5,025 United States dollar PT Bank Danamon Indonesia, Tbk. 120 158

Total cash in banks 36,201 17,977

Total 36,617 18,993

March 31,

All cash in banks are placed in third-party banks.

5. OTHER RECEIVABLES

Other receivables consist of :

2017 2016

Related party PT Indo Perkasa - 16,704

Third parties PT Garuda Chindo Makmur - 88,968 PT Kaltim Chindo Prima Indonesia - 88,968 Others - 871

Total third parties - 178,807

Total - 195,512

March 31,

6. DUE FROM RELATED PARTIES Due from related parties represent advances to PT Mincon Indo Resources and PT Oorja Indo

Petangis Four amounting to US$ 203,304 and US$ 5,000 as of March 31, 2016, respectively.



16

7. TAXATION

a. Prepaid tax consist of prepaid income tax article 21as of March 31, 2016.

b. Tax payable consist income tax article 23 payable as of March 31, 2016.

c. The reconciliation between loss before income tax as shown in the statements of profit or loss and other comprehensive income, and estimated fiscal loss of the Company is as follows :

2017 2016

Loss before income tax 2,082 (134,666) Permanent differences Non-deductible expenses Taxes 11,208 - Depreciation of fixed assets 6,153 - Salary and allowances - 34,349 Donation - 9,719 Severance pay - (8,313) Others - 55,524 Income already subjected to final tax Interest (6,208) (8,373) Temporary differences Depreciation of fixed assets - (235) Gain (loss) on sale (disposal) of fixed assets - net - (38,323)

Estimated taxable income (fiscal loss) 13,235 (90,318)

Estimated fiscal loss Year ended March 31, 2016 (90,318) (90,318)

Accumulated estimated fiscal loss Year ended March 31, 2016 (77,083) (90,318)




17

8. FIXED ASSETS – NET

The movements of fixed assets for the year ended March 31, 2016 are as follows :

Beginning EndingBalance Additions Deductions Balance

Costs Vehicles 42,017 - 40,841 -

1,176 1)

Office equipment 28,261 650 28,911 1) -

Total costs 70,278 650 40,841 30,087 1)

Accumulated depreciation Vehicles 29,254 5,318 33,396 -

1,176 1)

Office equipment 22,536 3,097 25,633 1) -

Total accumulated depreciation 51,790 8,415 33,396

26,809 1)

Net book value 18,488 -

1) Disposal

Depreciation was charged to operations as cost of good sold and general and administrative expense amounting to US$ 2,101 and US$ 6,314 for the year ended March 31, 2016, respectively.

The details of sales of fixed asset for the year ended March 31, 2016 is as follows : Cost 40,841 Accumulated depreciation (33,396)

Net book value 7,445 Proceeds 18,056

Gain on sale of fixed asset 10,611



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The details of disposal of fixed assets for the year ended March 31, 2016 is as follows : Cost 30,087 Accumulated depreciation (26,809)

Loss on disposal of fixed assets 3,278

9. DUE TO RELATED PARTY Due to related party represents advance from PT Oorja Indo KGS, related party.

10. CAPITAL STOCK

The details of the Company stockholders as of March 31, 2017 and 2016 as follows :

% Number of NominalShareholders shares per share Total

PT Oorja Indo Petangis Three 50 2,550 112 286,388 PT Oorja Indo Petangis Four 50 2,550 112 286,388

Total 100 5,100 572,776

11. SALES

This account represents sale of coal for the year ended March 31, 2016.



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12. COST OF GOOD SOLD

The details of cost of good sold are as follows :

2017 2016

Heavy equipment rentals - 2,640,656 Fuel - 838,536 Salaries and allowances - 184,159 Catering - 153,842 Security services - 125,695 Outsourcing - 123,131 Transportation - 47,810 Equipment rental - 19,731 Provision for site restoration - 18,106 Depreciation - 2,101 Others - 114,381

Total - 4,268,148


13. SELLING EXPENSES

Selling expenses consist of community development and production royalties expenses amounting to US$ 176,581 and US$ 150,383 for the year ended March 31, 2016, respectively.

14. GENERAL AND ADMINISTRATIVE EXPENSES

The details of general and administrative expenses are as follows :

2017 2016

Salary and allowances 5,269 69,201 Land and building tax 4,772 - Rental - 26,070 Travelling - 18,828 Employee benefits - 11,804 Depreciation 6,153 6,314 Professional fees - 1,553 Others 850 52,611

Total 17,044 186,381




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15. THE COMPANY’S FINANCIAL CONDITIONS

On March 31, 2017, the Company is in an inactive condition, this condition is due to the unfavorable economic condition/ unfavorable coal price. At present the management decided to maintain the Company in dormant position.

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