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Mid-Term Test

MM5002 - Accounting
Financial Report Analysis
PT ADHI KARYA (Persero) Tbk AND SUBSIDIARIES

Lecturer: Erman Sumirat, SE, M.BUSS, Ak

Written by:
Muhammad Nadif
29117122

Master Business and Administration


Institut Teknologi Bandung
2017
TABLE OF CONTENT
LIST OF PICTURES
LIST OF TABLES
COMPANY PROFILE

The name of Adhi Karya for the first time was stated in Decree of the Minister of Public
Works and labor on March 11, 1960. Subsequently, based on Government Regulation
(GR) No.65 of 1961, Adhi Karya was determined as a State Owned Company Adhi
Karya. PN Adhi Karya was established by nationalizing a former Dutch Company
called Associatie N.V. In 1974, PN Adhi Karya was changed to PT Adhi Karya
(Persero).

The Companys head office is located at Jalan Raya Pasar Minggu Km.18, Jakarta.
Government of the Republic of Indonesia is the ultimate shareholder of the Group. The
subsidiaries of PT Adhi Karya (Persero) Tbk are PT Adhi Persada Properti (APP), PT
Adhi Persada Realti (APR), PT Adhi Persada Beton (APB) and PT Adhi Persada
Gedung (APG).

The Companys scope of business comprises of:


a) Construction;
b) Management consultation and Industrial engineering (Engineering Procurement
and Construction/EPC);
c) Implementation of railway infrastructure;
d) Investment, general trading, procurement services, manufacturing (precast),
services in information technology, real estate and agro-industry;
e) Property, hotel, and real estate.

Currently the main activities of the Company and its subsidiaries (collectively referred
as the Group) in the field of construction, EPC, property, real estate, infrastructure
investment, the implementation of railway infrastructure and facilities, procurement of
goods and hotel services.
CHAPTER I
STATEMENTS OF FINANCIAL POSITION ANALYSIS

1.1. Consolidated Statements of Financial Position PT Adhi Karya (Persero) Tbk


and Subsidiaries

Table 0.1. Consolidated Statements of Financial Position


PT Adhi Karya (Persero) Tbk and Subsidiaries
Table 0.2 Consolidated Statements of Financial Position
PT Adhi Karya (Persero) Tbk and Subsidiaries (Continued 1)

CONSOLIDATED BALANCE SHEET

December 31,
2016 2015 Differences
ASSETS
Noncurrent Assets
Deffered Tax Assets - - -
Other Long-Term 20,960,345,041 6,396,900,359 14.563.444,682
Receivables
Real Estate Assets 744,015,538,151 47,757,602,787 696,257,935,364

Investment in Joint 336,214,193,003 368,089,859,107 -31,875,666,104


Ventures
Investment Properties 354,541,896,708 329,881,126,825 24,660,769,883
(Net off accumulated
depreciation
Rp31,227,508,092,
Rp 20,591,776,175,
and
Rp10,897,664,650 as
of December 31, 2016,
2015, and 2014)
Fixed Assets (Net off 1,459,815,811,733 1,099,426,730,319 360,389,081,414
accumulated
depreciation
Rp203,860,655,610,
Rp148,087,843,309,
and
Rp117,053,716,557
as of December 31,
2016, 2015, and 2014)
Other Long-Term 9,728,937,291 31,550,360,000 -21,821,422,709
Investment
Other Assets 334,751,162,284 186,808,438,041 147,942,724,243
Total Noncurrent 3,260,027,884,211 2,069,911,017,438 1,190,116,866,773
Assets
TOTAL ASSETS 20,095,435,959,279 16,761,063,514,879 3,334,372,444,400
Table 0.3 Consolidated Statements of Financial Position
PT Adhi Karya (Persero) Tbk and Subsidiaries (Continued 2)
CONSOLIDATED BALANCE SHEET

December 31,
2016 2015 Differences
LIABILITIES AND
EQUITY
CURRENT
LIABILITIES
Trade Payables:
Related Parties 352,296,853 13,960,196,994 -13,607,900,141
Third Parties 8,020,404,222,280 6,475,349,377,274 1,545,054,845,006
Bank Loans and 2,344,158,690,960 1,115,499,100,000 1,228,659,590,960
Other Financial
Institution
Taxes Payable 387,638,614,371 435,488,344,468 -47,849,730,097
Advances Receipts 731,705,536,299 692,207,413,831 39,498,122,468
Unearned Revenues 45,586,747,673 114,043,746,934 -68,456,999,261
Accrued Expenses 351,922,306,484 326,019,655,515 25,902,650,969
Bond Payables 374,855,721,333 - 374,855,721,333
Retention Payables 231,650,014,691 214,287,609,254 17,362,405,437
Sukuk Payables 125,000,000,000 - 125,000,000,000
Other Current 79,150,840,023 27,606,570,064 51,544,269,959
Liabilities
Total Current 13,044,369,547,114 9,414,462,014,334 3,629,907,532,780
Liabilities

NONCURRENT
LIABILITIES
Deferred Tax 19,073,405,641 2,111,695,802 16,961,709,839
Liabilities
Retention Payables 9,835,252,983 11,413,752,457 -1,578,499,474
Advances Receipts 80,215,745,439 84,453,499,926 -4,237,754,487
Bank Loans and 428,929,000,000 504,736,874,400 -75,807,874,400
Other Financial
Institution
Bond Payables 874,095,288,938 1,248,298,729,988 -374,203,441,050
Other Payables 82,668,090 285,556,515 -202,888,425
Liabilities for 71,055,088,176 83,169,594,621 -12,114,506,445
Employment Benefits
Sukuk Payables 125,000,000,000 250,000,000,000 -125,000,000,000
Total Non-Current 1,608,286,449,267 2,184,469,702,709 -576,183,253,442
Liabilities
TOTAL LIABILITIES 14,652,655,996,381 11,598,931,718,043 3,053,724,278,338
Table 0.4 Consolidated Statements of Financial Position
PT Adhi Karya (Persero) Tbk and Subsidiaries (Continued 2)

CONSOLIDATED BALANCE SHEET

December 31,
2016 2015 Differences
EQUITY
Equity Attributable to 356,084,937,600 356,084,937,600 0
Owners of the Parent
Company Capital
Stock Rp 100 par
Value per
5,440,000,000
Shares Subscribed
and Paid Up Capital
3,560,849,376
Shares
Additional Paid in 2,588,834,418,817 2,587,944,479,627 889,939,190
Capital
Difference in 3,117,842,245 3,117,842,245 0
Transaction with Non
Controling Interest
Retained Earnings:
Appropriated 1,808,381,348,947 1,452,215,456,967 356,165,891,980
Unappropriated 216,064,887,564 366,299,149,999 -150,234,262,435
Other Components of
Equity:
Difference in 2,388,664,810 2,547,059,748 -158,394,938
Foreign Currency
Translation
Acturial Loss of (6,689,006,767) (28,629,474,845) 21,940,468,078
Defined Benefits Plan
Surplus on 465,072,871,745 414,247,786,785 50,825,084,960
Revaluation of Land
Equity Attributable 5,433,255,964,961 5,162,131,796,836 271,124,168,125
to Owners of the
Parent
Non Controlling 9,523,997,937 8,304,558,710 1,219,439,227
Interest
TOTAL EQUITY 5,442,779,962,898 5,162,131,796,836 280,648,166,062

TOTAL LIABILITIES 20,095,435,959,279 16.761.063.514.879 3,334,372,444,400


AND EQUITY
1.2. Assets

Based on Consolidated Statements of Financial Position, Assets in PT Adhi Karya


(Persero) Tbk and Subsidiaries divided in two groups which is Current Asset and Non-
current Asset. The composition of Asset in PT Adhi Karya during 2015-2016 period
can be seen in Table 1.5.

Table 0.5 Composition Asset of PT Adhi Karya (Persero) Tbk and Subsidiaries
2015-2016 (in Rupiah)

Year 2015 2016


Current Assets 14,691,152,497,441 16,835,408,075,068
Noncurrent Assets 2,069,911,017,438 3,260,027,884,211
Total Assets 16,761,063,514,879 20,095,435,959,279

The total asset of PT Adhi Karya (Persero) Tbk and Subsidiaries in 2016 increases Rp
3,334,372,444,400. The current asset increases Rp 2,144,255,577,627 and the non-
current asset increases Rp 1,190,116,866,773. The changes of each current assets
accounts from 2015 to 2016 can be seen in Figure 1.1.

Rp7,000,000,000,000

Rp6,000,000,000,000
AMOUNT OF RUPIAH

Rp5,000,000,000,000

Rp4,000,000,000,000

Rp3,000,000,000,000 2015
2016
Rp2,000,000,000,000

Rp1,000,000,000,000

Rp0
1 2 3 4 5 6 7 8 9 10
CURRENT ASSET ACCOUNT

Figure 0.1.. The graph of current assets accounts from 2015 to 2016
(1:Cash&Cash Equivalent; 2:Total Trade Receivables; 3: Total Retention Receivables; 4:Total
Gross Amount Due from Customers; 5:Inventories; 6:Advance Payments; 7:Prepaid Expenses; 8:
Prepaid Taxes; 9:Real Estate Assets; 10:Other Current Assets)

Based on Figure 1, the most increasing current asset comes from total gross ammount
due from customer as much as Rp 2,737,923,695,646. It indicates that there are many
customers from related parties and third parties of this company have not paid gross
amount due to PT. Adhi Karya (Persero) Tbk and Subsidiaries in 2016. Besides that,
the others account that give impact to current asset changes is total of trade receivables.
Total of trade receivables increases Rp 675,250,073,824 in 2016. It means that there
are many customers from related parties and third parties have not paid their debts to
PT Adhi Karya (Persero) Tbk and Subsidiaries. Indirectly, this situation can give
impacts to the amount of cash and cash equivalent become decline or stagnant. Besides
that, the real estate assets for current asset increases Rp 588,094,164,612. It can be
indicates that the building ready for sale in 2016 is increasing. It also can give impacts
to the amount of cash and cash equivalent. If the real estate assets is sold out, the amount
of cash and cash equivalent can increases. Mostly, the current asset increases is
influenced by 3 accounts include gross amount due from customers, trade receivables
and real estate assets. The graph of non-current assets accounts can be seen in Figure
2.
Rp1,600,000,000,000

Rp1,400,000,000,000
AMOUNT OF RUPIAH

Rp1,200,000,000,000

Rp1,000,000,000,000

Rp800,000,000,000
2015
Rp600,000,000,000 2016

Rp400,000,000,000

Rp200,000,000,000

Rp0
1 2 3 4 5 6 7 8
NON-CURRENT ASSET ACCOUNT

Figure 0.2 The graph of non-current assets accounts from 2015 to 2016
(1:Deffered Tax Assets ; 2:Other Long-Term Receivables ; 3:Real Estate Assets;
4:Investment in Join Ventures; 5:Investment Properties; 6: Fixed Assets ; 7:Other Long-Term
Investment ; 8:Other Assets

The graph in the Figure 1.2 states that the most significant changes in non-current assets
accounts is real estate assets. Not only real estate for non-current assets but also fixed
assets and other assets will give impact to the increasing of non-current asset in 2016.
Real estate assets for non-current assets increases Rp 696,257,935,364 in 2016. PT
Adhi Karya (Persero) Tbk and Subsidiaries in 2016 add the undeveloped land become
Rp 677,686,813,151 also there is building ready for sale as much as Rp 66,328,725,000.
These activities that can increases real estate assets from Rp 47,757,602,787 to Rp
744,015,538,151. Then, Fixed assets increases Rp 260,389,081,414 in 2016. After PT
Adhi Karya (Persero) Tbk and Subsidiaries calculates the effect of surplus on
revaluation, addition, deduction, and reclassification, the carrying value of fixed assets
in increases from Rp 1,099,426,730,319 to 1,459,815,811,733. Other assets increases
Rp 147,942,724,243 in 2016. One of factor that can increase the other assets is Unit
Apartment Salemba Residence is seized by Kantor Pajak Pratama Jakarta Senen
amounted Rp 13,000,214,368.

Non-current asset will affect to the liquidity of the company. So, the real estate non-
current assets, fixed assets, and other assets will affect to the liquidity of this company
in 2016. The increased current assets and non current assets ratio are 60% for current
assets and 40 % for non-current assets. It means that this company is still good because
the proportion of current assets for this company is bigger than non-current assets. PT
Adhi Karya (Persero) Tbk and Subsidiaries is the company that quite liquid.

1.3. Liabilities

Total liabilities of PT Adhi Karya (Persero) Tbk and Subsidiaries in 2015 is Rp


11,598,931,718,043 and become Rp 14,652,655,996,381 in 2016. It means that total
liabilities of PT Adhi Karya (Persero) Tbk and Subsidiaries in 2016 increases
3,053,724,278,338.

Based on Table 1.3, the liabilities is categorized into two groups namely current
liabilities and non-current liabilities. The distribution of total current liabilities and
total non-current liabilities during 2015-2016 can be seen in Table 1.6

Table 0.6 Total Current Liabilities and Non-Current Liabilities during 2015-2016
(in Rupiahs)

Year 2015 2016


Current Liabilities 9,414,462,014,334 13,044,369,547,114
Noncurrent Liabilities 2,184,469,702,709 1,608,286,449,267
Total Liabilities 11,598,931,718,043 14,652,655,996,381
Table 1.6 states that the current liabilities in 2016 increases Rp 3,629,907,532,780 and
the non-current liabilities decreases Rp 576,183,253,442. It indicates that this company
have paid some of its non-liabilities in 2016 but this company add current liabilities in
2016.

Rp9,000,000,000,000
Rp8,000,000,000,000
AMOUNT OF RUPIAH

Rp7,000,000,000,000
Rp6,000,000,000,000
Rp5,000,000,000,000
Rp4,000,000,000,000 2015
Rp3,000,000,000,000 2016
Rp2,000,000,000,000
Rp1,000,000,000,000
Rp0
1 2 3 4 5 6 7 8 9 10
CURRENT LIABILITIES ACCOUNTS

Figure 0.3 The graph of current liabilities accounts in 2015 and 2016
(1:Total trade payables ; 2:Bank loans and other financial institution ; 3:Taxes payable ; 4:Advance
Receipts ; 5:Unearned revenues ; 6:Accrued Expenses ; 7:Bond payables ; 8:Retention payables ; 9:
Sukuk payables ; 10:Other current liabilities)

Rp1,400,000,000,000

Rp1,200,000,000,000
AMOUNT OF RUPIAH

Rp1,000,000,000,000

Rp800,000,000,000

Rp600,000,000,000 2015
2016
Rp400,000,000,000

Rp200,000,000,000

Rp0
1 2 3 4 5 6 7 8
NON-CURRENT LIABILITIES ACCOUNTS

Figure 0.4 The graph of non-current liabilities accounts in 2015 and 2016
(1:Deferred tax liabilities ; 2:Retention payables ; 3: Advance receipts ; 4: Bank loans
and other financial institution ; 5: Bond payables ; 6: Other payables; 7:Liabilities for
Employment Benefits ; 8: Sukuk payables
Based on Figure 1.3, the most influential account for the increase in current liabilities
in 2016 come from total trade payables and bank loans and other financial institution.
Trade payables increases Rp 1,883,391,501,012 and bank loans and other financial
institution increases Rp 1,228,659,590,960. It indicates that this company to support its
business activity usses other funds from trade payables and bank loans and other
financial position. However, this company should quickly pay trade payables and bank
loans and other financial institution so interest expense is not high.

While, the decreases bond payables for non-current liabilities and sukuk payables is the
most influential account of the non-current liabilities changes. In 2016, bond payables
decreases Rp 374,203,441,050 and sukuk payables decreases Rp 125,000,000,000.

1.4. Equity

The total equity of PT Adhi Karya (Persero) Tbk and Subsidiaries in 2016 increases
Rp 280,648,166,062. Based on the Figure 1.5, the most increased accounts in equity is
total retained earnings. Total retained earnings in 2016 increases Rp 205,931,629,545.

Rp3,000,000,000,000

Rp2,500,000,000,000
AMOUNT OF RUPIAH

Rp2,000,000,000,000

Rp1,500,000,000,000
2015
Rp1,000,000,000,000 2016

Rp500,000,000,000

Rp0
1 2 3 4 5
EQUITY ACCOUNTS

Figure 0.5 The graph of equity accounts in 2015 and 2016


(1:Equity Attributable to owners of the parent company capital stock ; 2:Additional paid in
capital ; 3:Total retained earnings ; 4:Other components of equity ; 5:Non-controlling interest)

It indicates that this company is good because the company get more retained earnings
as other funds to support this business activities.
CHAPTER II
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME ANALYSIS

2.1. Consolidated Statements of Profit or Loss and Other Comprehensive Income


Position

Table 0.1 Consolidated Statements of Profit or Loss and Other Comprehensive


Income Position
2.2. Revenues

The stream revenues of PT Adhi KARYA (Persero) Tbk and Subsidiaries come from 4
business sectors includes construction services, EPC, property/real estates, and
infrastructure investment. The details of revenus by four sectors can be seen in Table
2.2.

Table 0.2 Revenues Streams 2015 and 2016

December 31,
Year
2015 2016
Construction Services Rp7,994,412,885,788 Rp 9,202,141,649,328
EPC Rp635,507,559,656 Rp998,092,543,754
Property/Real Estates Rp610,639,683,415 Rp71,342,916,868
Infrastructure Investment Rp149,009,969,719 Rp192,365,740,757
Total Revenues Rp9,389,570,098,578 Rp11,063,942,850,707

Based on Table 2.2, total revenues in 2016 increases Rp 1,674,372,752,129. Every


business sectors in PT Adhi Karya (Persero) Tbk and Subsidiaries increases from year
to year. However, the biggest revenue come from construction services sectors.

2.3. Expenses

The expenses of PT Adhi Karya (Persero) Tbk and Subsidiaries is divided into two part
comprise of sales expenses and general and administrative expenses. All expenses of
this company is rising. The biggest expenses of this company come from general and
administrative expenses. The details of expenses in 2015 and 2016 can be seen in Table
2.3.

Table 0.3 The Details of Expenses 2015 and 2016

December 31,
Year
2015 2016
Sales Expenses Rp19.579.158.970 Rp22.073.899.516
General and Administrative
Expenses:
Personel Rp237.726.765.320 Rp256.363.302.681
Generals Rp108.544.176.196 Rp155.908.989.533
Depreciation Rp29.643.471.284 Rp21.632.511.828
Total Rp395.493.571.770 Rp455.978.703.558
Based on Table 2.3, personel expenses in general and administrative expenses is bigger
than generals expenses.

2.4. Profit

Eventhough the revenues of PT Adhi Karya (Tbk) and Subsidiaries is high, profit for
the period that gained by this company is not as high as the revenues. Based on Table
2.1., profit for period is affected by cost of revenues, share profit of joint ventures, total
operating expenses, other income (charges)-net, financial charge, and income tax
expenses. It indicates that there is differences between revenue and profit for period in
this company. In 2015, the differences between revenue and profit for period is Rp
8,924,544,550,572. Then, this differences increases Rp 1,824,290,517,000 in 2016
become Rp 10,748,835,067,572.

1%
4% 3%

Cost of revenues
Share of Profit Joint Venture
Total Operating Expenses
Income Tax Expenses

92%

Figure 0.1 The percentage of factors that affect the difference between revenue and
profit for period in 2015 and 2016

Figure 1.1 states that the most affected factor to the differences between revenue and
profit for period in 2015 and 2016 is cost of revenues. The detail of cost of revenue by
production sector are as follow in Table 2.4
Table 0.4 The Details of Cost of Revenue by Production Sector in 2015
and 2016
December 31,
Year
2015 2016
Raw Material
Beginning Balance Rp132,013,517,468 Rp162,650,778,629
Purchases +/+ Rp3,298,735,039,391 Rp3,662,303,197,086
Ending Balance -/- Rp162,650,778,629 Rp131,016,052,721
Total Rp3,268,097,778,230 Rp3,693,937,922,994
Direct labour Rp1,373,503,205,640 Rp1,294,512,943,154
Sub Contractors Rp2,281,595,484,670 Rp3,007,651,981,727
Overhead Rp1,491,729,309,541 Rp1,952,694,595,510
Total Rp8,414,925,778,081 Rp9,948,797,443,385

Based on Table 1,4, the most increased factor in cost of revenue in 2016 is sub-
contractors as much as Rp 726,056,497,057, While, PT Adhi Karya (Persero) Tbk and
Subsidiaries only increases Rp 363,568,157,695 purchase raw material in 2016 from
Rp3,298,735,039,391 to Rp3,662,303,197,086.

It indicates that if mostly cost of revenue in this company is affected by subcontractors


cost, there is two possibility of this case. Two possibilities are the cost of sub
contractors in 2016 is increasing or PT Adhi Karya (Persero) Tbk and Subsidiaries add
the sub-contractors to finish all projects in 2016 as soon as possible.
CHAPTER III
STATEMENTS OF CHANGES IN EQUITY ANALYSIS

3,1, Consolidated Statements of Changes in Equity

Table 0,1 Consolidated Statements of Changes in Equity


PT Adhi Karya (Persero) Tbk and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY


Equity Attributable to the Owners of the Parent Total Non- Total Equity
Capital Additional Paid Difference in Retained Earnings Others Components of Equity Controling
Stock in Capital Transaction With Appropriated Unappropria Exchange on Actuarial Surplus on Interest
Non Controlling ted Translation of Gain (Loss) Revaluatio
Interest Financial of Defined n of Land
Statements Benefits
Plants
BALANCE AS OF 180,132,000 50,004,090,079 - 903,770,990 315,072,099 1,792,021,294 - - 1,450,771,201 9,234,110,806 1,460,005,311,878
DECEMBER 31, 2013 ,000 ,399 ,300 ,072
Total Comprehensive - - - - 329,075,308 - - - 329,075,308,1 2,585,198,301 331,660,506,417
Income for the Year ,116 16
Others Equity Component - - - - - (40,519,392) (27,309,269, - (27,349,788,9 - (27,349,788,962)
570) 62)
General Reserve - - - 284,183,760 (284,183,76 - - - - - -
,732 0,732)
Cash Dividends - - - - (121,793,04 - - - (121,793,040, - (121,793,040,313)
0,313) 313)
Treasury Stock - - 3,117,842,245 - - - - - 3,117,842,245 (4,860,286,06 (1,742,443,819)
4)
Difference in Value of - - - - - - - - - - -
Restructuring Transaction
Between Entities Under
Common Control
Partnership and - - - - - - - - - - -
Environment Development
Program
Table 0,2 Consolidated Statements of Changes in Equity
PT Adhi Karya (Persero) Tbk and Subsidiaries (Continued 1)
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Equity Attributable to the Owners of the Parent Total Non- Total Equity
Capital Additional Paid Difference in Retained Earnings Others Components of Equity Controling
Stock in Capital Transaction With Appropriated Unappropria Exchange on Actuarial Surplus on Interest
Non Controlling ted Translation of Gain (Loss) Revaluatio
Interest Financial of Defined n of Land
Statements Benefits
Plants
BALANCE AS OF 180,132,000 50,004,090,079 3,117,842,245 1,187,954,7 238,170,606 1,751,501,902 (27,309,269, - 1,633,821,522 6,959,023,043 1,640,780,545,201
DECEMBER 31, 2014 ,000 51,131 ,371 570) ,158
Profit For The Year - - - - 463,685,278 - - - 463,685,278,9 1,340,269,016 465,025,548,006
,990 90
Others Equity Component - - - - - 795,557,846 (1,320,205,2 414,247,7 413,723,139,3 5,266,651 413,728,406,007
75) 86,785 56
General Reserve - - - 264,260,705 (264,260,70 - - - - - -
,836 5,836)
Cash Dividends - - - - (64,814,602, - - - (64,814,602,2 - (64,814,602,280)
280) 80)
Subcribed Share Capital 175,952,937 2,537,940,389,5 - - - - - - 2,713,893,327 - 2,713,893,327,148
,600 48 ,148
Partnership and - - - - (6,481,427,2 - - - (6,481,427,24 - (6,481,427,246)
Environment Development 46) 6)
Program
BALANCE AS OF 366,084,937 2,587,944,479,6 3,117,842,245 1,452,215,4 366,299,149 2,547,059,748 (28,629,474, 414,247,7 5,153,827,238 8,304,558,710 5,162,131,796,836
DECEMBER 31, 2015 ,600 27 56,967 ,999 845) 86,785 ,126
Total Comprehensive - - - - 313,451,016 - - - 313,451,016,5 1,656,766,580 315,107,783,135
Income for the Year ,555 55
Others Equity Component - 889,939,190 - (14,133,171, - - 21,940,468, 50,825,08 59,522,320,40 (230,663,029) 59,291,657,378
821) 078 4,960 7
General Reserve - - - 370,299,063 (370,299,06 - - - - - -
,801 3,801)
Cash Dividends - - - - (93,386,215, - - - (93,386,215,1 - (93,386,215,189)
189) 89)
Difference in Foreign - - - - - (158,394,938) - - (158,394,938) (206,664,324) (365,059,262)
Currency Translation
BALANCE AS OF 366,084,937 2,588,834,418,8 3,117,842,245 1,808,381,3 216,064,887 2,388,664,810 (6,689,006,7 465,072,8 5,433,255,964 9,523,997,937 5,442,779,962,898
DECEMBER 31, 2016 ,600 17 48,947 ,564 67) 71,745 ,961
CHAPTER IV
STATEMENTS OF CASH FLOW ANALYSIS
Table 0.1 Consolidated Statements of Cash Flow
4.1. Consolidated Statments of Cash Flow
PT Adhi Karya (Persero) Tbk and Subsidiaries

4.2. Cash Flow Analysis


The cash and cash equivalent at the end of year 2016 decreases Rp 952,279,019,158
from Rp 4,317,347,903,384 to Rp 3,364,910,489,288. This is caused by decreasing of
cash flow that used in operating activities as much as Rp1,993,954,026,277 from
Rp241,052,341,639 to minus Rp1,752,901,6684,638. It indicates that the usage of
expenses for operating activities in 2016 is more than the cash that received from
operating activities by this company.

Besides that, the value of cash flow from investing activities in 2016 is minus because
the cash outflow from investing activities is more than the cash inflow of investing
activities. In 2016, this company receive more cash from disposal of fixed asset as much
as Rp1,391,060,000. Not only there is increasing disposal of fixed asset in 2016 but
also there is increasing acquisition of fixed asset. The increasing acquisition of fixed
asset is more than the increasing disposal of fixed asset so that the cash flow from
investing activities become minus.

The last, net cash flow provided by financing activities in 2016 decreases Rp
2,340,071,931,901. Eventhough, the amount of cash from bank loans and financial
institution in 2016 increases Rp 2,550,729,313,965 or approximately increases 138%
from previous year, the net cash flow provided by financing activities in 2016 is
decreasing. It can be happen because PT. Adhi Karya (Pesero) and Subsidiaries Tbk
didnt receive additional paid in capital in 2016, pay more the bank loans and financial
institution in 2016 and pay more cash dividend in 2016.

Compared with 2015, this company only received cash from bank loans and financial
institution as much as Rp 1,850,263,608,995, the net cash flow provided by financing
activities in 2015 is bigger than 2016. It caused by this company received a lot of cash
from additional paid in capital as much as Rp 2,744,865,826,560 in 2015 and payment
of bank loans and financial and cash dividend in 2015 is not as big as 2015. So, the net
cash flow provided by financing activities in 2015 is bigger than in 2016.
CHAPTER V
ANALYSIS OF COMPANY PERFORMANCE

5.1. Liquidity

One of paramater to analyze the company performance is liquidity level of financial


condition in the company. Liquidity means the ability of company to meet its short term
liabilities or the ability of company to convert the current asset into cash easily to pay
off its short-term liabilities. Liquidity ratios are used to measure the liquidity level of
this company. Liquidity ratios comprises current ratio and quick ratio.

5.1.1. Working Capital

Working capital is one of the important concept to measure of both a companys


efficiency and its short-term financial health. Working capital of PT. Adhi Karya
(Persero) Tbk and Subsidiaries from 2015 to 2016 can be seen in Table 5.1.

Table 0.1 Working Capital PT Adhi Karya (Persero) Tbk and Subsidiaries 2015 and
2016

Year 2015 2016


Current asset Rp14,691,152,497,441 Rp16,835,408,075,068
Less: Current liabilities Rp9,414,462,014,334 Rp13,044,369,547,114
Working capital Rp5,276,690,483,107 Rp3,791,038,527,954

Based on Table 5.1, working capital of this company decreases 28,15% or


Rp1.485.651.955.153 in 2016. This changes is caused by the differences between a
change in the total amounts of current assets and a change in the total amounts of current
liabilities. Although, working capital of this company has declined, the value of
working capital still positive. If working capital of the company is positive, it means
that company still has a cash inflow. Besides that, positive working capital indicates
this company still able to continue its operations and that it has sufficient funds to
satisfy both maturing short-term debt and upcoming operational expenses. So that, the
financial condition of PT Adhi Karya (Persero) Tbk and Subsidiaries in 2016 is still
health.
5.1.2. Current Ratio

The current ratio is one of indication to measure of a companys liquidity. It measures


whether or not a company is able to pay off its short-term liabilities. It compares this
companys current asset to its current liabilities. The detail current ratio of this company
form 2015 to 2016 can be seen in Table 5.2.

Tabel 0.2 Current Ratio of PT Adhi Karya (Persero) Tbk and Subsidiaries 2015 and
2016

Year 2015 2016


Current Asset Rp14,691,152,497,441 Rp16,835,408,075,068
Current Liabilities Rp9,414,462,014,334 Rp13,044,369,547,114
Current Ratio 1,56 1,29

The current ratio of this company year to year is always more than one. It means this
company is in the normal range and above the minimum value of current ratio standard
which is one. In 2015, the condition of this company is healthy and has low risk whereas
this company is healthy but has moderate risk in 2016. So, this company must increases
the current ratio due to has low risk but dont increases this ratio too high or over 2. If
the companys ratio is too high, it may indicate that the company is not efficiently using
its current assets or its short-term financing activities. The way to improve the current
ratio are faster conversion cycle of debtors or accounts receivables, pay off current
liabilities, sell-off unproductive assets, rising shareholders funds, and sweep bank
accounts.

5.1.3. Quick Asset Ratio

Quick asset ratio is the ratio to measure the level of the most liquid current assets
available excludes inventory to cover current liabilities. Inventory is generally
considered to be less liquid than other current assets. A rule of thumb for quick asset
ratio based on financial ratio standard is a quick ratio should be greater than one. The
quick asset ratio of PT Adhi Karya (Pesero) Tbk and Subsidiaries 2015 and 2016 can
be seen in Table 5.3.
Table 0.3 The Quick Asset Ratio of PT Adhi Karya (Persero) Tbk and Subsidiaries
2015-2016

Year 2015 2016


Current asset Rp14,691,152,497,441 Rp16,835,408,075,068
Less: Inventoreis Rp162,650,778,629 Rp131,016,052,721
Less: Prepaid expenses Rp1,216,509,049,102 Rp338,921,423,028
Quick Assets Rp13,311,992,669,710 Rp16,365,470,599,319
Less: Current Liabilities Rp9,414,462,014,334 Rp13,044,369,547,114
Net quick asset Rp3,897,530,655,376 Rp3,321,101,052,205
Quick Assets Ratio 1,41 1,25

Based on Table 5.3., the quick ratio of this company in 2015 and 2016 is greater than
1. It means a company is able to pay off its short-term liabilities. The quick asset ratio
of this company in 2016 decline from 1.41 to 1.25. It indicates that might be in 2016,
this company is having a hard time to collect its account receivables or this company is
paying its bills too quickly. One of the quickest ways to improve the quick ratio would
be to pay off the current bills and at the same time increase the sales so that cash on
hand increases. Besides that, there are some ways to improve quick ratio includes
improving inventory turnover, discarding unproductive assets, improving the collection
period or account receivable, paying off current liabilities, drawings, and sweep
accounts.

5.2. TurnOver

Turnover is one of parameter to analyze how quickly a business collects cash from from
accounts receivable or how fast the company sell its inventory investments.

5.2.1. Asset Turnover

5.2.2. Inventory Turnover

Inventory turnover is one of parameter to measure the speed of company that can sell
their inventories. It is a critical measurement of company performance. The detail
inventory turnover of PT Adhi Karya (Persero) Tbk and Subsidiaries can be seen in
Table 5.4.
Table 0.4 Inventory Turnover of PT Adhi Karya (Persero) Tbk and Subsidiaries 2015
and 2016

Year 2015 2016


Cost of revenue Rp8,414,925,778,081 Rp9,948,797,443,385
Inventory Rp162,650,778,629 Rp131,016,052,721
Average Inventory Rp146,833,415,675
Inventory turnover 57,31 67,76

Based on Table 5.4, inventory turnover of this company in 2016 increases from 57.31
to 67.76. It indicates that this company in 2016 has a good sales or buy inventory
turnover ratios. The inventory turnover of this company must be maintaned or improved
by company needs to pay more attention to the forecasting techniques, increases sales,
reduce the inventory cost, apply the paretos 80:20 principle and invest only in the
products that get the maximum profit.

5.2.3. Receivable Turnover

5.3. Stability

5.3.1. Debts to Asset

Debt to assets ratio indicates the proportion of a companys assets that are being
financed with debt, rather than equity. It is usually used to determine the financial risk
of a business. The detail debts to assets ratio of this company from 2015 to 2016 can be
seen in Table 5.5.

Table 0.5 Debts to Assets Ratio of PT Adhi Karya (Persero) Tbk and Subsidiaries
2015 and 2016

Year 2015 2016


Total debts Rp11,598,931,718,043 Rp14,652,655,996,381
Total asset Rp16,761,063,514,879 Rp20,095,435,959,279
Debts to total assets 0,69 0,73

Table 5.5 states that 69% of PT Adhi Karya (Persero) Tbk and Subsidiariess assets in
2015 have been financed by debt, while become 73% of PT Adhi Karya (Persero) Tbk
and Subsidiariess assets in 2016 have been financed by debt. There is an increase in
total debt assets from 2015 to 2016. It indicates that the risk of PT Adhi Karya (Persero)
Tbk and Subsidiaries in 2016 is higher than previous year or the stability of this
company is disturbed.

This situation might be increases the difficulty of getting loans fo new projects because
the lenders will see the company has a risky asset eventhough this company has debts
to equity ratio lower than 1 which is good. So, this company should reduce the debt to
assets ratio. The several way to reduce debt to total assets ratio as follows:
This company can issue new or additional share to increase the cash flow
This company implement a debt/equity swap by making a debt holder an equity
shareholder in the company.
This company can sell its assets and then lease them back
This company can focus heavily on increasing the sales but without any increase in
overhead expenses.

5.3.2. Debts to Equity

Debts to equity is one of the parameter to measure the stability level of the company.
The debt to equity ratio compares a companys total liabilities to its total equity. The
debts to equity ratio of PT Adhi Karya (Persero) Tbk and Subsidiaries can be seen in
Table 5.6

Table 0.6 Debts To Equity Ratio of PT Adhi Karya (Persero) Tbk and Subsidiaries
2015 and 2016

Year 2015 2016


Total Liabilities Rp11,598,931,718,043 Rp14,652,655,996,381
Total Shareholders Equity Rp5,162,131,796,836 Rp5,442,779,962,898
Debt to equity ratio 2,25 2,69

Debt to equity ratio of PT Adhi Karya (Pesero) Tbk and Subsidiaries in 2015 and 2016
is greater than 1 (one) wich 2.25 for 2015 and 2.69. It indicates that the portion of assets
provided by creditors is greater than the portion of assets provided by stockholders.
The debts to equity of PT Adhi Karya ( Persero) Tbk and Subsidiaries is increasing. An
increasing trend in debt to equity ratio is also alarming because it means that the
percentage of assets of a business which are financed by the debts is increasing.

PT Adhi Karya (Persero) Tbk and Subsidiaries should reduce the debts to equity ratio
by increasing sales revenues and profitability. This can be achieved by raising prices,
increasing sales or reducing costs. Besides that, manage more effective the inventory
restructure debts, sell assets and lease them back, and bring in an investor.

5.4. Profitability

5.4.1. Operating Margin

Operating margin also known as operating income margin, operating profit margin,
and return on sales. It compares operating income of the company to its net sales. It
means how much of each dollar of revenues is left over after both costs of goods sold
and operating expenses are considered. The operating margin of PT Adhi Karya
(Persero) Tbk and Subsidiaries can be seen in Table 5.7

Table 0.7 Operating Margin of PT Adhi Karya (Persero) Tbk and Subsidiaries 2015
and 2016

Year 2015 2016


Operating income Rp611,230,264,199 Rp728,591,095,621
Net sales Rp9,389,570,098,578 Rp11,063,942,850,707
Operating margin (%) 6,51 6,59

PT Adhi Karya (Persero) Tbk and Subsidiaries in 2015 has an operating margin of
6.51% on Rp9,389,570,098,578 in net sales and in 2016 has an operating margin of
6.59% on Rp 11,063,942,850,707. The operating margin of PT Adhi Karya is
increasing. It indicates that the company run its operation smoothly so that the company
is earning more per dollar of sales. It shows that operating activities of PT Adhi Karya
are considered stable because this company in 2016 can achieve enough money from
their perations to support the activities of company. So, PT Adhi Karya must maintain
the sales and lowering production costs to get same or more operating margin.
5.4.2. Net Profit Margin

Net Profit Margin (NPM) is one of the most important indicators of a businesss
financial health. It calculated as net income divided by net sales. The net profit margin
of PT Adhi Karya (Persero) Tbk and Subsidiaries 2015 and 2016 can be seen in Table
5.8

Table 0.8 Net Profit Margin of PT.Adhi Karya (Persero) Tbk and Subsidiaries 2015
and 2016

Year 2015 2016


Net income Rp465,025,548,006 Rp315,107,783,135
Net sales Rp9,389,570,098,578 Rp11,063,942,850,707
Net profit margin (%) 4,95 2,85

In 2015, PT Adhi Karya has a 4,95% net profit margin while PT Adhi Karya has a
2,85% net profit margin in 2016. Net profit margin of PT Adhi Karya is decline from
2015 to 2016. It indicates that the margin goes down and a decline in performance and
profitability levels. So, PT Adhi Karya (Persero) Tbk and Subsidiaries must increases
net profit ratio by no discounting, dont compete on price, take cash discounts from
suppliers, and keep the track of its inventory.

5.4.3. Return on Assets

Return on assets (ROA) is indicator that shows how efficient management is at using
its assets to generate earnings. Return on assets of PT Adhi Karya (Persero) and
Subsidiaries 2015 and 2016 can be seen in Table 5.9

Table 0.9 Return on Assets of PT Adhi Karya (Persero) Tbk and Subsidiaries 2015
and 2016

Year 2015 2016


Net income Rp465,025,548,006 Rp315,107,783,135
Average total assets Rp18,428,249,737,079 Rp18,428,249,737,079
Return on assets (%) 2,52 1,71

ROA of PT Adhi Karya in 2015 is 2.52% and ROA of PT Adhi Karya in 2016 is 1.71%.
It means ROA of this company is decreasing year to year and less than 5%. If ROA of
the company less than 5% is considered not good. It is caused by the assets go up and
the returns dont improve in the same proportion. So, this company must use asset
effectively to get more net income. Besides that, this company can reduce asset costs,
increase revenues, and cut expenses.

5.4.4. Return on Equity

Return on Equity is an indicator to measure of how well a company uses investments


to generate earnings growth. The return on equity of PT Adhi Karya and Subsidiaries
can be seen in Table 1.10.

Table 0.10 Return on Equity of PT. Adhi Karya (Persero) Tbk and Subsidiaries

Year 2015 2016


Net income Rp465,025,548,006 Rp315,107,783,135
Total equity Rp5,162,131,796,836 Rp5,442,779,962,898
Return on equity (%) 9,01 5,79

Based on Table 1.10, ROE of PT Adhi Karya (Persero) Tbk and Subsidiaries in 2015
is 9,01% and ROE decreases 3,22% from 9,01% to 5,79% in 2016. It indicates that
ROE of this company is less than 10% which this condition is risky for this company.
But, low ROE numbers lead the way to good companies whose shares may have been
neglected or beaten down because of a short-term profit slide. So, PT Adhi Karya must
be improve its return on equity by use more financial leverage, increase profit margin,
improve asset turnover, pay lower taxes, and distribute idle cash.
5.4.5. Return on Inventory
CHAPTER VI
CONCLUSION
REFERENCES

Laporan Keuangan PT Adhi Karya (Persero) Tbk 2016,2015,2014


Merryll Linch
Kyeso