COMPANY’S

PROFILE

ASSETS

TRANSACTIONS

FINANCIAL
STATEMENTS
ARGO CORPORATION (“the Company”)
was established under the name of
Suryaraya Cakrawala Corporation based
on Notarial Deed No. 12 of Ny. Rukmasanti
Hardjasatya, S.H., dated 3 October 1988,
which was then changed again based on
Deed of amendment No. 9 dated 4 August
1989 of the same notary.
These consolidated financial statements of
the Group were prepared in accordance
with the Indonesian Financial Accounting
Standards and approved by the Directors
on 20 February 2018.
 Basis of preparation of consolidated
financial statements
› The consolidated financial statements are
prepared based on the historical cost and
the accruals basis, except for the
consolidated statements of cash flows.
› The consolidated statements of cash flows
are prepared based on the direct method
by classifying cash flows on the basis of
operating, investing and financing activities.
 Principles of consolidation
The consolidated financial statements
incorporate the assets and liabilities at
statements of financial position date and
results of operations for the years then ended
of the Company and entities
 Revenue and expense recognition
Net revenue represent revenue earned from
the sales of the Group’s finished goods net of
discounts, returns, trade allowances, export tax
and export levies.
Revenue from the sales of finished goods is
recognised when the significant risks and
rewards of ownership of the goods have been
transferred to the customers.
Expenses are recognised when incurred
(accrual basis).
 The implementation of new statements of
accounting standards
The accounting standards which have been
published and relevant to the Groups’
operations are as follows. Effective for the year
begin as at or after 1 January 2017:
- PSAK No. 1 (Presentation of financial
Amendment 2015) statements
- PSAK No. 60 (Financial instrument: Annual
Improvement 2016) disclosures
- ISAK No. 32 (Definition and hierarchy of
financial accounting standars)
 Cash and cash equivalents =Rp262,292
 Trade and other receivables =Rp 71,302
 Inventories = Rp 2,018,104
 Livestocks = Rp 132,923
 Fixed assets = Rp 10,152,225
 Goodwill = Rp 55,951
 Plantations = Rp 833,692
 Investments in joint ventures = Rp 111,157
 Trade payables = Rp 804,718
a) Cash and cash equivalents
Cash and cash equivalents include cash on hand, cash in
banks and short-term investments with a maturity of three
months or less.
b) Trade and other receivables
Trade and other receivables are initially recognised at fair
value and subsequently measured at amortised cost using the
effective interest method, unless the effect of discounting is
immaterial.
c) Inventories
Inventories are stated at the lower of cost or net realisable
value.
d) Livestocks
Livestocks are the assets of cattle for breeding. The
unproductive livestocks are reclassified to livestocks for sale.
e) Fixed assets
The whole class of fixed assets are stated at historical cost
(Cost Model) less accumulated depreciation, except land
which is not depreciated.
f) Goodwill
Goodwill represents unidentified excess of total investment
cost over the proportionate underlying fair value of the
acquired subsidiary’s net assets at the acquisition date.
e) Plantations
Immature plantations are stated at acquisition costs which
include costs incurred for field preparation, planting, fertilising
and maintenance.
f) Investments in joint ventures
Ventura bersama adalah suatu entitas dimana Perusahaan
memiliki pengendalian bersama dengan satu venturer atau
lebih. Ventura bersama dicatat dengan menggunakan
metode ekuitas.
e) Trade payables
Trade payables mostly arise from purchases of FFB, fertilisers,
pesticides, spareparts and other plantation materials. These
purchases have credit term in the range of 14 days to 45 day.
The amount of every account from each journal will be
collected in the Journal Recapitulation. Every transaction
also posted into General Ledger for making a Trial Balance.
In the end of period, we also made an Adjusted Journal
Entry to adjust the amount of some accounts into its real
condition.

To complete end-of-period result, we also counting

inventories and check for errors in classification.

The last activity is report the recent condition of company’s

financial into Financial Statements. There are 5 statements,
such as :
1. Profit and Loss Statement
2. Statement of Changes in Equity
3. Balance Sheet
4. Cash Flow Statement
5. The Notes of Financial Statements
 INCOME STATEMENT
PT ASTRA AGRO LESTARI Tbk DAN ENTITAS ANAK
FOR THE YEAR ENDED 31 DECEMBER 2017
(In thousand rupiah)
2017 2016
Net revenue 17,305,688 14,121,374
Cost of revenue (13,160,438) (10,445,360)
Gross profit 4,145,250 3,676,014

General and administrative expenses (756,418) (676,626)

Selling expenses (337,933) (340,780)
Finance cost (132,446) (144,873)
Foreign exchange gains, 4,912 200,613
Interest income 24,005 25,588
Share of results of joint ventures (83,652) (12,528)
Others, net 74,787 (518,630)
(1,206,745) (1,467,236)
Profit before income tax 2,938,505 2,208,778
Income tax expense (824,876) (94,479)
Profit for the year 2,113,629 2,114,299

Other comprehensive income:

Items not to be reclassified to profit or loss:
Remeasurements from post-employment benefit (24,480) 87,317
obligations
Items to be reclassified to profit or loss:
(41,672) -
Cashflow hedge
Related income tax 16,538 (21,829)
(49,614) 65,488
Total comprehensive income 2,064,015 2,179,787
 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
PT ASTRA AGRO LESTARI Tbk DAN ENTITAS ANAK
FOR THE YEAR ENDED 31 DECEMBER 2017
(In thousand rupiah)
2016
Balance at 1 January 2016 11,698,787
New share issuance 3,970,363
Cash dividends (255,455)
Comprehensive income for the year 2,179,787
Balance at 31 December 2016 17,593,482

2017
Balance at 1 January 2017 17,593,482
Difference from transactions with non- (48)
controlling parties
Cash dividends (1,073,059)
Comprehensive income for the year 2,064,015
Balance at 31 December 2017 18,536,438
ASSETS 2017 2016
Current Assets
Cash and cash equivalen 262,292 531,583
Trade Receivable 704,749 579,126
Inventories 2,018,014 2,097,204
Advance 173,424 181,536
Prepaid Taxes 1,087,161 662,095
Total Current Assets 4,245,730 4,051,544
Non Current Assets
Long Term Receivable 6,596,197 6,393,185
Immature plantations 1,592,437 2,029,323
Livestocks 132,923 45,283
Fixed Assets 10,152,225 10,027,968
Goodwill 55,951 55,951
Plasma plantations 833,692 631,941
Claims for tax refunds 1,027,079 878711
Other Assets 111,157 112,216
Total Non Current Assets 20,689,696 20,174,578

TOTAL ASSETS 24,935,426 24,226,122

LIABILITIES 2017 2016
Current Liabilities
Trade Payable 1,084,959 1,460,529
Taxes Payable 328,460 224,528
Other Liabilities 219,066 624,528
Short-Term bank Loan 676,932 2,053,805
Total Current Liabilities 2,309,417 3,942,967
Non Current Liabilities
Long Term Bank Loan 4,008,903 2,632,696
Deferred tax liabilities 80,668 56,977
Total Non Current 4,089,571 2,689,673
Liabilities 6,398,988 6,632,640
Total Liabilities
EQUITY 962,344 962,344
Share Capital 3,878,995 3,878,995
Additional Paid In Capital 13,258,048 12,293,945
Retained Earning 1,337,051 458,198
Non-controlling interests 18,536,438 17,593,482
Total Equity
TOTAL LIABILITIES AND 24,935,426 24,226,122
EQUITY
 Cash Flows From Operating Activities
Receipt from customers 17,018,349
Receipt from interest income 24,442
Payments to supplier and employees (12,744,315)
Payments of taxes (933,423)
opeational expenses (523,231)
Net cash flows provided by operating activities 2,841,822
Cash flows from investing activities
Additions of fixed assets (1,753,504)
Net cash flows used in investing activities (1,753,504)
Cash flows from financing activities
Proceeds from bank loans 5,020,750
Payment of bank loans (5,176,759)
Payment of cash dividends (996,896)
Payments of cash dividends to non-controlling share holders (76,070)
Payment of finance cost (84,643)
Payment for acquisition of non-controlling shares (48)
Net cash flows (used in)/ provided by financing activities (1,361,618)
Net (decrease)/increase in cash and cash equivalents (273,300)
Effect of exchange rate changes on cash and cash 4,009
equivalents
Cash and cash equivalents at the beginning of the year 531,583
Cash and cash equivalents at the end of the year 262,292