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PT WAHANA PRONATURAL Tbk TABLE OF CONTENT

Page Director’s Statement Letter Independent Auditor’s Report FINANCIAL STATEMENTS Dated December 31, 2016 and 2015 And For The Years Then Ended Statements of Financial Position 1-2 Statements of Comprehensive Income 3 Statements of Changes in Equity 4 Statements of Cash Flows 5 Note to Consolidated Financial Statements 6-39

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PT WAHANA PRONATURAL Tbk

STATEMENTS OF FINANCIAL POSITION

DECEMBER 31, 2016 AND 2015

ASSETS

CURRENT ASSETS

Cash and cash equivalents

Trade accounts receivable - third parties

Inventories

Prepaid tax

Advance - third parties

Prepaid expenses

Total Current Assets

NON-CURRENT ASSETS

Property, plant and equipment - net of

accumulated depreciation of

Rp 16.198.597.802 at 2016, and

Rp 13.086.001.827 at 2015.

Deferred tax assets

Others assets

Assets of tax amnesty

Total Non-Current Assets

TOTAL ASSETS

23 545.935.914

277.668.724

61.797.828.803 2j;9

which are an integral part of financial statements

25 100.000.000

72.884.735.633

2.876.041.239

2h;8

1.270.329.936

58.685.232.828

See accompanying notes to financial statements

2f;4

2d;2g;5

35.671.500

30.801.536.962

105.894.649.854

-

35.671.500

Rp

1.099.626.982

Rp

34.686.598.982

21.924.550

5.570.890.167

46.796.076.801

295.396.018

2016

59.098.573.053

Notes 2015

11.051.235.330 23

10

7

11.534.000

2i;6 24.822.720.026

10.917.361.498

107.571.334.615

3.249.378.489

1


STATEMENTS OF FINANCIAL POSITION (continued)


LIABILITIES AND EQUITY

CURRENT LIABILITIES

Trade accounts payable - third parties

Sales advances

Accrued expenses

Taxes payable

Total Current Liabilities

NON-CURRENT LIABILITY

Employee benefits obligations

Total Non-Current Liability

Total Liabilities

Equity

Capital stock - Rp 100 par value per share

Authorized - 2.000.000.000 shares

Subscribed and paid-up -

520.000.000 shares

Additional paid-in capital

Equity component of convertible debt

Other comprehensive income

- Remeasurement of defined benefit obligations

- Related tax

Defisit

Total Equity

TOTAL LIABILITIES AND EQUITY

2d;13

2p;23

29.718.429.741

15 52.000.000.000

(48.988.691.178)

(57.340.138)


107.571.334.615

4.544.531

105.894.649.854

(58.958.355.292)

Notes

13.642.086.832

2015

22.606.753.769

2.075.819.806

2d;2l;11

11.662.319.832

Rp

30.829.104.635

12

Rp

609.230.150

46.261.000 225.048.443

13.775.474.659

2016


805.433.977 2q;14

1.110.674.894

(18.178.124)

16

1.110.674.894

21.801.319.792

52.000.000.000 52.000.000.000

12.554.405.615

14.335.034

12.454.405.615

75.065.545.219 84.964.580.844

9.483.508.810

805.433.977

69.512.500.000

18

69.512.500.000 2c;17;27;30

2


STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015

SALES

COST OF GOODS SOLD

GROSS PROFIT

- Selling expenses

- General and administrative expenses

PROFIT FROM OPERATIONS

- Finance costs-net

- Gain / (loss) on foreign exchange rate

- Others - net

PROFIT BEFORE TAX

TAX EXPENSES

- Current tax

- Deferred tax expense

Total tax expenses

PROFIT (LOSS) FOR THE YEAR

OTHER COMPREHENSIVE INCOME

Items that will not be reclassified subsequently

to profit or loss :

- Remeasurement of defined

benefit obligation

- Income tax benefit (expense) relating to items that will no be

reclassified subsequently to profit or loss

TOTAL PROFIT (LOSS) OTHER COMPREHENSIVE INCOME

FOR THE CURRENT YEAR NET OF TAX

PROFIT (LOSS) EARNINGS PER SHARE

(312.125.377)

(312.125.377)

(9.969.664.115)

(10.783.357.109)

267.453.364

(57.000.000)

476.834.699

(4.180.080.189)

-

45.483.253

1.038.855.244 579.578.741

2o;22

2o;21

(3.399.971)

60.660.761

2o;21

2o;22

(3.874.445.305)

(4.054.709)

-

(115.484.019)

2o;22

2o;20

4.565.029.578 4.713.914.888

2o;19

2016

86.306.680.432

RpRp

Notes 2015

119.680.398.651

2p;23

18

(19,17) 2r;24

23.990.897

0,51

18

285.446.537

(39.162.014)

(81.592.765.544) (115.115.369.073)

575.100.254

9.790.503

(9.999.035.626)

(5.997.724)

(225.162.250)

467.809.699



(11.008.519.359)

3


STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS THEN ENDED 31 DESEMBER 2016 AND 2015

Balance as of January 1, 2015 / December 31, 2014

Correction deferred tax pertaining employee benefit

obligation using balance sheet appoach

- Equity component

Convertible debt

Profit for the year

Adjustment of implementation PSAK 24

(Revised 2013)

Balance as of December 31, 2015

Adjusment of implementation PSAK 24

(Revised 2013)

Difference amount of tax amnesty

- Equity component

Convertible debt

Loss for the year

Balance as of December 31, 2016

- - - - - - -

69.512.500.000

69.512.500.000

-

-

23.990.897

-

-

- 69.512.500.000

Equity Component

of Convertible Debt

-

-

-

-

Rp



52.000.000.000 12.454.405.615

-

Additional

Rp

Other Comprehensive Income

Rp

Paid in Capital Paid in Capital

(49.256.144.541) 15.166.634.308 10.542.255

Remeasurement

Rp

52.000.000.000 12.554.405.615 (58.958.355.292) 75.065.545.219 14.335.034 (57.340.138)

52.000.000.000 12.454.405.615 (48.988.691.177) 84.964.580.844 69.512.500.000

TotalRelated Tax

Employee

Benefit Obligation

Rp

Profit/

RpRp

(defisit)

267.453.364

- - - -

(9.969.664.115)

- - - 17.993.173

-

-

267.453.364

-

- -

-

100.000.000

- (29.371.511)

- -

(39.162.014) 9.790.503

(9.969.664.115) - -

-

-

- - 100.000.000

-

4.544.531 (18.178.124)

(42.169.021)

(5.997.724)

4


STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015

CASH FLOWS FROM OPERATING ACTIVITIES

- Cash receipts from customers

- Cash paid to suppliers

- Payment expenses

- income tax paid

- Interest and financial received

- Others received

Net Cash Provided by Operating Activity

CASH FLOW FROM INVESTING ACTIVITY

- Acquisition other assets

Net Cash Used in Investing Activity

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR

CASH AND CASH EQUIVALENTS AT THE END OF YEAR

Information of non-cash transaction is presented in note 25.

520.959.120

578.667.862

(408.701.970)

94.486.946.639

(785.623.201)

1.099.626.982 1.270.329.936

-

(203.767.170)



2015

1.099.626.982

2016

118.171.052.666

RpRp

(92.340.261.786)

-

170.702.955

170.702.955

(1.516.818.607)

102.744.044

(7.884.000)

(116.802.220.161)

(4.054.709)

250.331

-

528.843.120

(7.884.000)

5


NOTES TO FINANCIAL STATEMENTS


AND FOR THE YEARS THEN ENDED

1. GENERAL

a. The Company Establishment

b. Commissioner, Director and Employee

President Commissioner :

Independent Commissioner :

President Director :

Director :

Director (Independent) :

Samin

Indra Widyadharma

Hugeng Parhito

PT Wahana Pronatural Tbk (d.h. PT Wahana Phonix Mandiri - the Company) established in Indonesia, initially under the

name of PT Golden Phoenix based on notarial deed from notary Wahyudi Suyanto, S.H., No. 96 dated August 7, 1993 and

then rename to PT Wahana Yuda Mandiri based on notarial deed from the same notary No. 451 dated May 30, 1996. The

changes of the deed of establishment was approved by the Minister of Justice of the Republic of Indonesia in his Decision

Letter No. C2-8528.HT.01.01.Th.97 dated August 27, 1997 and was published in State Gazette No. 37 Supplement No.

2912 dated May 8, 2000. The Company name then changed to PT Wahana Phonix Mandiri based on notarial deed from

notary Yonsah Minanda, S.H., No 44 dated January 31, 2000 and was approved by the Minister of Justice of the Republic

of Indonesia in his Decision Letter No. C-22109.HT.01.04.Th.2000 dated October 9, 2000 and was published in State

Gazette No. 28 Supplement No. 2187 dated April 6, 2001. The Company name re-change to PT Wahana Pronatural Tbk

based on notarial deed about the statement of extraordinary shareholder meeting No. 2 dated June 2, 2012 by Wachid

Hasyim, Notary in Surabaya. The changes of articles of association was approved by Minister of Law and Human Rights of

the Republic of Indonesia No. AHU.41594.AH.01.02.Year 2012 dated August 1, 2012.

Lia Tirtasaputra

Gunawan Ruslim

The Company commenced commercial activities at August 7, 1993.

The Company's Commissioner and Director at December 31, 2016 and 2015, are as follows:

In accordance with Article 3 of the Company's Article of Association, the scope of its activities is mainly to engaged in

trading, construction, industrial, agricultural, transportation and services. The Company mainly activities since commercial

activities are trading of agricultural and marine products. The Company is domiciled in Surabaya, head office is located in

Gedung Bumi Mandiri Tw. II Lt. 4 R. 406-407, Panglima Sudirman Street No. 66 - 68 Surabaya.

6


NOTES TO FINANCIAL STATEMENTS



1. GENERAL (continued)

b. Commissioner, Director and Employee (continued)

Chairman : Gunawan Ruslim Gunawan Ruslim

Members : Anita Rosalia Gunawan Anita Rosalia Gunawan

Members : Nana Nuryana Nana Nuryana

c. Public Offering of Shares and Bonds

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of Compliance

Statement of financial position of PT Wahana Pronatural, Tbk was autorized by Director at June 05, 2017.

At June 22, 2001, the Company conducted its initial public offering through PT. Bursa Efek Indonesia (Persero) (before PT.

Bursa Efek Jakarta) amounting to 200.000.000 shares with nominal value Rp 100 with is offering price Rp 175. The public

offering accompanied by issued Warrant Series I amounting to 50.000.000 shares. This Warrant has a term of

implementation for 3 years and can implemented since Desember 21, 2001 until June 21, 2004. Until due of

implementation date June 21, 2004, there is no warrant converted to shares (Notes 16).

At December 31, 2016 and 2015, the Company has total number of employees of 9 in 2016 and 2015, respectively.

Total salary and other compensation for the Company's Commissioner and Director in 2016 and 2015 amounting to Rp

1.039.000.000 and Rp 905.500.000, respectively.

The financial statement prepared and presented in accordance with Financial Accounting Standars in Indonesia was

issued by Dewan Standar Akuntansi Keuangan Ikatan Akuntan Indonesia (DSAK - IAI) and rule of the Capital Market and

Financial Institution Supervisory Agency (Bapepam-LK) No. VIII.G.7 about “Presentation and Disclosure Financial

Statement for Public Company” stated in attachment of Decision Chairmant Bapepam-LK No. KEP 347/BL/2012 dated

June, 25, 2012.

Audit Committee as of December 31, 2016 and 2015 are as follows :

7


NOTES TO FINANCIAL STATEMENTS (continued)



2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

b. Basis of Preparation Statement of Financial Statement

• PSAK 4 (revised 2015) "Separate Financial Statements"

• PSAK 5 (revised 2015) "Operating Segments"

• PSAK 7 (revised 2015) "Related Party Diclosure"

• PSAK 16 (revised 2015) "Property, Plant and Equipment"

• PSAK 24 (revised 2015) "Employee Benefits"

• PSAK 25 (revised 2015) "Accounting Policies, Changes in Accounting Estimates and Errors"

• PSAK 53 (revised 2015) "Share Based Payment"

• PSAK 68 (revised 2015) "Fair Value Measurement"

• PSAK 30 "Levies"

• PSAK 1 (revised 2015) "Presentation of Financial Statements"

• ISAK 31 "Scope Interpretation"

New accounting standard relevant to the presentation of the Company financial statements as folow:

PSAK No. 70, “Accounting for Tax Amnesty Asset and Liability”

Changes of Statement of Financial Accounting Standards ("PSAK") and Interpretation of Statement of Financial

Accounting Standards ("ISAK")

The statement of cash flows are prepared using direct method and presenting sources and usage cash and cash

equivalents with classification of cash flows into operating, investing and financing activities. Cash and cash equivalents

consist of cash, bank, and time deposit due date not more than 3 (three) month.

Financial statement, except the statement of cash flows prepared based on accrual basis used at cost and accrual basis.

The figure in these financial statements are presented in fuel amount in Rupiah, unless otherwise stated.

On the date the ratification of the financial statements, the Company is considering the implications of applying these

standards to the Company's financial statements.

New standards, revised and interpretation already issued and relevant for the Company, but not yet effective for the year

or started after January 1, 2017 are as follows:

Transactions included in financial statements of the Company remeasured using functional currency where is the entity

operation ("functional currency"). The financial statement presented in Rupiah, which is the functional currency and the

presentation of the Company.

Implementation and changes of interpretation accounting standards are as follows efective since Januari 1, 2016 and

relevant for the Company, but not significant changes for the Company accounting's policy and do not have material impact

in the financial statement current period:

8






c. Transactions with Related Parties

A related party is a person or entity that is related to the Company (the reporting entity):

a. A person or a close member of that person's family is related to the reporting entity if that person:

i. has control or joint control over the reporting entity;

ii. has significant influence over the reporting entity; or

iii. is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.

b. An entity is related to the reporting entity if any of the following conditions applies:

i.

ii.

iii. Both entities are joint ventures of the same third party.

iv.

v.

vi.

vii.

d. Financial Instruments

(a) Financial Assets

One entity is a joint venture of a third entity and the other entity is an associate of the third entity.

The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity, or an entity

related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to

the reporting entity.

The entity is controlled or jointly controlled by a person identified in (a).

A person identified in (a) (i) has significant influence over the entity or is a member of the key management personnel

of the entity ( or a parent of the entity).

The entity, and the reporting entity are members of the same group (which means that each parent, subsidiary and

fellow subsidiary is related to the others).

One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group

of which the other entity is a member).

Loans and receivables is non-derivatif financial assets that have fixed payment or determinable payments and that are

not quoted in an active market. Loans and receivables dimasukkan as curent assets; except if due date more than 12

monts after the end of reporting period, loans and receivables classified as non-current assets. The Company loans

and receivables consist of cash in bank and time deposit, trade account receivable, others account receivable in

statements of financial position.

As of December 31, 2016 and 2015, the Company only have financial assets loans and receivables.

Financial instruments is a contract whose term require delivery of the financial assets from entity and the financial liability

or equity instrument of others entity.

Significant transactions with related parties, whether or not made at similar terms and conditions as those done with third

parties, are disclosed in the financial statement.

The Company financial assets are classified into categories as follows: financial assets remeasurement at fair value

through profit or loss, loans and receivable, held to maturity and available for sale.

9






d. Financial Instruments (continued)

(a) Financial Assets (continued)

(b) Financial Liabilities

(c) Equity Instrument

An instrumen is an equity instruments if, and only if, the following two (a) and (b) conditions are met :

The instrument has no contractual obligation :

to deliver cash or another financial asset to another entity; or

e. Impairment of financial assets

f. Cash and Cash Equivalents

g. Trade Account Receivable

to exchange financial assets or financial liabilities with another entity with potentially unfavorable conditions of the

issuer.

(i)

(ii

)2.

Interest received at financial assets classifieds as loans and receivables recorded as financial income in profit or loss. If

impairment, value of loss impair will be deducted from carrying amount financial assets classified as loans and

receivables and recognized in statement of profit or loss.

Trade account receivable initially measured at fair value and then measured at amortized cost using interest effective rate

method, deducted allowance of doubtfull acount.

At each reporting date, the Company assessed for indicator of impairment of financial assets or group financial assets.

Financial assets or group financial assets impaired when there is objective evidence that, as a result of one or more events

that occurred after the initial recognition of the financial assets, the estimated future cash flows of the investment have

been affected.

Loans and receivables initially measured at fair value plus transaction cost and then are measured at amortized cost

using the effective interest rate method. Financial assets derecognition when the rights for received cash flows from

this assets due date or have been transferred and the Company have been transfer substantial all risk and benefit of

this assets.

Cash and cash equivalents consist of cash, time deposit and all investments with maturities of three months or less.

1.

Restricted time deposit presentation as restricted cash.

At December 31, 2016 and 2015, the Company only have financial liabilities at amortized cost consist of trade account

payable, others payable and accrued. Initially measured at fair value plus of transaction cost, the Company recorded

financial liabilities at amortized cost using effective interest rate method. Financial liabilites derecognizes when paid.

The Company classified financial liabilities into two categories (i) fair value through proft or loss and (ii) at amortized

cost.

If the instrument will or may be settled in equity instruments of the entity, issue of the instrument is derivative and

nonderivatif.

10






g. Trade Account Receivable (continued)

h. Prepaid Expense

i. Inventories

j. Property, Plant and Equipment - Direct Acquisition

Building

Machine and equipment

Vehicle

Office equipment

Land is stated at cost and is not depreciated.

25% & 20%

5 & 10

5%

5

4 & 5

20%

Carrying amount deducted through the use of an allowance account, and impairment loss recognized in statement of

profit or loss and other comprehensive income. When a receivable is considered uncollectible, it is written off against the

allowance account. Subsequent recoveries of amounts previously written off are credited to statement of profit or loss and

other comprehensive income.

20

After initial acquisition expense are recognized as part of carrying amount or assets it is likely that the Company will gain

future economic benefit with respect to the asset and the cost of the asset can be measured reliably. Total recorded

replaced parts are no longer recognized. The cost of maintenance and repairs is charged to operations as incurred.

Prepaid expense amortized using straight line method during benefit of expense.

Allowance of doubtfull account are establised when there is objective evidence that the entity will not be able to collect all

receivables in accordance with the initial terms of receivables. Significant financial difficulties on the borrower, the

probability that the debtor will be declared bankrupt or a financial reorganization and wanprestasi or arrears in the payment

is considered an indicator that ther is impairment. Net of carrying amount and estimated cash flows in the future is

allowance, discounted at the original effective interest rate.

Years

20% & 10%

Depreciation is recognized using straight-line method based on useful lives ot the assets as follows:

Prosentation

Property, plant and equipment are stated at cost, less accumulated depreciation and any accumulated impairment losses,

except for land is not depreciated.

Inventories are stated at cost or net realizable value (the lower of cost or net realizable value ). Cost is determined using

the weighted average method. Net realized value represents the estimated selling price for inventories less all estimated

costs of completion and costs necessary to make the sale.

11






j. Property, plant and equipment - Direct Acquisition (continued)

k. Impairment of non financial assets

l. Trade Accounts Payable

m. Provisions

n. Loan

Loans is classified as long term liabilities, except loans that will be due in 12 month after reporting period.

Residual value and useful lives are reviewed, and will be adjusted if needed, every reporting date.

Initially, loans recognized at fair value, less transactions cost incurred. And then, loans measured at amortized cost using

effective interest rate method.

Borrowing cost for construction of qualifying assets, capitalized during period to completed assets construction and

prepared until ready for their intended use or sale. Others borrowing costs are recognized in profit or loss in the period in

which they are incurred.

Initially trade accounts payable recognized at fair value and then at amortized cost using effective interest rate method,

except discount effect is not significant.

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it

is probable that the Company will be required to settle the obligation, and a reliable estimate made of the amount of the

obligation.

If property, plant and equipment not used or sold, carrying amount and accumulated depreciation are removed from

financial statement. Any resulting gain or loss is reflected in statement of profit or loss and other comprehensive income.

Construction in progress is stated at historical cost and reclassified to property, plant and equipment when ready to used.

Property, plant and equipment and others assets, include intangible assets reviewed to determined whether there is any

indication that those assets have suffered an impairment loss. Losses resulted impairment recognized amounting to

difference between carrying amount with the recoverable amount of this assets. The recoverable amount is the higher of

fair value less cost to sell and value in used.

The amount recognized as a provisions is the best estimate of the consideration required to settle the present obligation at

the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision

is measured using the estimated cash flows to settle the present obligation, its carrying amount is the present value of

those cash flows.

12






o. Revenue recognition and expense

p. Income Tax

q. Employee benefit obligation

The Company recognized employee benefits obligation based on PSAK No. 24 “Employee Benefits” required under Labor

Law No. 13/2003 dated March 25, 2003 (“UU No. 13/2003”). There is no funding set aside by the Company in respect of

these employee benefits.

Deffered tax assets are recognized to the extent it is probable total taxable income in the future will be available against

which deductible temporary differences and tax losses can be utilized.

Tax expenses consist of current tax and deffered tax. Tax recognized in statement of profit loss, except tax in relation with

transaction or event recognized in others comprehensive income or directly recognized in equity.

Corrections of tax obligation are recognized when tax assessment letter is received or if objected to or appealed, recorded

when the objection or appeal is detemines.

The computed employee benefits is using the Projected Unit Credit method. Accumulated net gain and loss not exceeding

10% of the define benefit is recognized using a straight-line method over the expected average remaining working period

of the employees in the said program. Past service cost is charged directly to the extent that the benefits are already

vested and otherwise will be recognized as an expense on a straight-line method over the average period until the benefits

become vested.

Current tax expense computed using prevailing tax rates at reporting date. Management periodically reviewed positions

are reported in the annual tax return (SPT) with respect to condition in which applicable tax rules require interpretation. If

needed, management determines allowance based on total expected to be paid to the tax authorities.

Revenue from sales of goods is recognized when the significant risk and rewards of ownership of the goods already

transferred to the buyer, in the same time sending and receiving. Expense are recognized when incurred.

Deffered tax is recognized, using balance sheet liability method for all temporary difference between tax based of assets

and liabilities with carrying amount. Deffered tax determined using prevailing tax rate in the reporting period and expected

to be applied when deffered tax assets realized or deffered tax liabilities settlement.

Total recognized as a defined benefit liability in the financial statements represents the present value of defined benefit

obligations adjusted for unrecognized actuarial gains and losses and unrecognized past service costs.

13






r. Earning per share

s. Foreign currency translation

(a) Functional currency and presentation

(b) Transaction and balance

t. Segments Information

Operating segment reported consistent with internal report given to decision maker of main operation. The decision maker

of main operation, have responsibility to allocated resource and assesment of performance, have been identified as

committe strategic decision maker.

The transactions in the currencies other than the entity's functional currency are recognized at the rates of exchange

prevailing at the dates of the transactions. At the end of each reporting period, assets and liabilities monetary items

denominated in foreign currencies are retranslated at the rate prevailing at that date.

Statement of financial position reported in “Rupiah” (Rp) its functional currency of the Company.

Foreign exchange gains and losses arising from settlement of transactions denominated in foreign currencies and from

the translation of foreign currency monetary assets and liabilities using the rates of exchange prevailing at the end of

the period are recognized as income or expenses in the statement of profit or loss, unless recognized in equity as cash

flows hedges and is included in the cost of borrowing directly related to the qualifying asset.

Foreign exchange rate used, based on middle rate Bank Indonesia at December 31, 2016 and 2015 amounting to Rp

13.346 dan Rp 13.795 per 1 U.S. Dollar, respectively.

Basic earning per share is computed by dividing net income current year with the weighted average number of shares

outstanding during the year.

Diluted earning per share is computed by dividing net income with the weighted average number of shares outstanding as

adjusted the effects of all dilutive potential ordinary shares.

The items included in the Company's financial statements are measured using currencies that correspond to the main

economic environment in which the entity operates (“functional currency”).

14





3. KEY SOURCES OF ESTIMATION UNCERTAINTY AND CONSIDERATION

i. Important Accounting Estimates

Estimated useful lives of property, plant and equipment

Employee benefit obligation

Benefit will be paid and have a time period similar to period of the related liability.

The Company reviews periodically of the usefull lives of the property, plant and equipment based on factors such as

technical conditions (estimated useability, operation, maintenance) and future technology development. Future result of

operatios will be materially affected by changes in these estimates resulting from changes in the factors mentioned above.

The present value of post-employment benefit obligation and the accrued pension cost depend on several factors

determined on an actuaria basis based on several assumptions. The assumptions used to determine the net pension cost

(benefit) include the discount rate. Changes in this assumption will affect the total recorded post-employment benefits and

pension funds.

The key assumptions of post-employment benefits obligations are partly determined based on current market conditions.

Additional information is disclosed on Notes 14.

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect

the total reported of revenues, expenses, assets dan liabilities, at the end of the reporting period. Uncertainty about

assumptions and estimates may result in material adjustments to the carrying amount of assets and liabilities in the

subsequent reporting period.

The Company determines the appropriate disount rate at the end of the reporting period, interest rate used to determined

the expected future cash outflows to settle the liability. In determining the appropriate interest rate, the Company considers

the average interst rate on government bonds on an active market denominated in the currency.

The principal assumptions of the future and other key sources of estimation of other uncertainties at the reporting date which

have significant risks for material adjustments to the carrying amount of assets and liabilities for subsequent period/years are

disclosed below. The Company based its assumptions and estimates on the parameters available at the time the financial

statements are prepared. Assumptions and conditions in the future may be changed caused by market changes or condition

outside in the Company. This changes reflected in the related assumptions when is incurred.

15





3. KEY SOURCES OF ESTIMATION UNCERTAINTY AND CONSIDERATION

ii. Significant Judgements in Applying Accounting Policies

Classification financial assets, financial liabilities and equity instrument

The following consideration made by management in context of implementing the Company's accounting policies that have

significant impact to the financial statements.

The Company classified assets, liabilities and spesific instrument as financial assets, financial liabilities and equity

instrument with consideration when definition define by PSAK No. 55 fulfilled. Therefore, financial assets, financial liabilities

and equity instrument recognized as the Company policy stated in Notes 2d.

16





4. CASH AND CASH EQUIVALENTS

Cash

Bank

Rupiah

- PT Bank Mandiri (Persero), Tbk

- PT Bank OCBC NISP, Tbk

- PT Bank BCA , Tbk

U.S. Dollar

- PT Bank Mandiri (Persero), Tbk

- PT Bank OCBC NISP, Tbk

Total

5. TRADE ACCOUNTS RECEIVABLE TO THIRD PARTIES

Third Parties

In Rupiah

- PT Inasentra Unisatya

- Other under 100 billion

Total

Allowance for impairment losses

Total

Aging of trade accounts receivable are as follows:

Not yet due

Past Due

- 01 - 30 days

- 31 - 60 days

- 61 - 90 days

- 91 -120 days

Total

5.570.890.167

1.058.353

-

10.917.361.498 -

19.071.561

10.917.361.498

2016

1.270.329.936

68.942.105

19.945.915

9.306.935

1.099.626.982

2015

10.917.361.498 5.570.890.167

Rp

2016

-

2015

-

10.788.720.126

RpRp

-

5.570.890.167

Rp

-

-

6.000.000

-

436.559.177

619.854.694

10.917.361.498

-

1.155.430.328

Rp

2015

13.960.261

Rp

2016

5.570.890.167

5.570.890.167

-

There is no allowance for doubtfull debt for the year 2016 and 2015. Management believes that all such receivable are

collectible, meanwhile management not made an allowance for the impairment trade accounts receivable.

128.641.372

-

-

19.827.590

All cash and cash equivalent account in 2016 and 2015 are transaction with third parties and there are no transactions with

related parties.

17





6. INVENTORIES

Finished goods

- Seaweed

Sub Total

Raw material

- Row material candy

- Packaging material

Sub Total

Goods in process

Finished goods - candy

Indirect material

- Sparepart

Sub Total

Total inventories

Allowance for decline in value of inventories

Total inventories net

7. ADVANCE PAYMENT - THIRD PARTIES

Advance payment

Third Parties

- Local Purchase

- Rahmad H (Kelompok Tani)

- Wempy

Total

8. PREPAID EXPENSE

8.912.685.195

586.782.982

This account representation prepaid expense for office rental at December 31, 2016 and 2015 was Rp 11.534.000 and Rp.

21.924.550, respectively.

624.717.643

-

624.717.643

-

30.801.536.962

2.670.000.000

Rp

17.784.876.436

Rp

2.473.119.763

3.249.378.489

3.113.337.250

136.041.239

2016

2016

-

6.451.060.608

586.782.982

206.041.239

-

3.977.940.845

2015

21.264.134.124

-

30.801.536.962

3.068.988.007

-

5.843.697.188

2.876.041.239

Rp

-

Rp

2015

24.822.720.026

-

24.822.720.026

18





9. PROPERTY, PLANT AND EQUIPMENT

At cost

Direct acquisition

- Land

- Land right

- Building

- Machine and equipment

- Vehicle

- Office equipment

Total

Accumulated depreciation

Direct acquisition

- Land right

- Building


- Vehicle

- Office equipment

Total

Net carrying value

At cost

Direct acquisition

- Land

- Land right

- Building


- Vehicle

- Office equipment

Total

Accumulated depreciation

Direct acquisition

- Land right

- Building


- Vehicle

- Office equipment

Total

Net carrying value

702.652.867

74.883.830.630

64.910.424.778

178.054.000

-

3.112.595.975

-

5.506.994.261

-

-

1.158.539.669

1.771.778.305

1.771.778.305 -

33.026.115.063 -

Additions Deductions

-

Rp

- -

61.797.828.803

702.652.867

-

-

2015

13.086.001.827 3.112.595.975

4.810.878.393 1.158.539.669

7.278.772.566

4.224.001 288.448.001

January 1

Rp RpRp

-

- -

17.939.700.630

890.310.000

-

5.250.000

524.598.867

5.250.000

3.652.338.724

9.973.405.852

22.721.334.937

-

301.120.000 -

890.310.000

-

-

- 5.250.000

Movement

-

4.224.001

-

-

-

- -

178.054.000

-

-

890.310.000

74.883.830.630 - -

5.250.000

2015

5.250.000

74.883.830.630

33.026.115.063

4.810.878.393

16.198.597.802

22.721.334.937

- 301.120.000

- 33.026.115.063

-

22.721.334.937 -

33.026.115.063

17.939.700.630

- -

-

Rp Rp

-

Rp

Deductions2016 Additions

DecemberJanuary 1, Movement

-

5

5.250.000

890.310.000

9.050.550.871

301.120.000

17.939.700.630

17.939.700.630

Rp

-

301.120.000

-

880.706.867

288.448.001

5.250.000

7.278.772.566

5.969.418.062

22.721.334.937

284.224.000

5.250.000

13.086.001.827

74.883.830.630

292.672.002

December 31

-

58.685.232.828

2016

61.797.828.803

19





9. PROPERTY, PLANT AND EQUIPMENT (continued)

Cost of goods sold

Operating expense

Total

Addition and deduction of property, plant and equipment are as follows :

At cost

Addition

- Land

- Land right

- Building


- Vehicle

- Office equipment

Total

Deduction

- Land

- Land right

- Building


- Vehicle

- Office equipment

Total

Net

Rp

1.771.778.305

-

2016

-

-

-

-

Rp

-

-

-

-

-

2016

-

-

-

-

-

-

Rp

-

-

1.771.778.305

1.340.817.669

2016

Rp

2015

Rp

3.112.595.975

Depreciation expense at December 31, 2016 and 2015 allocated are as follows:

-

-

-

-

3.112.595.975

1.340.817.669

2015

2015

-

-

-

-

-

-

-

-

Rp

20





9. PROPERTY, PLANT AND EQUIPMENT (continued)

Depreciation expenses

Additions

- Land right

- Building


- Vehicle

- Office equipment

Total

Deductions

- Building


- Vehicle

- Office equipment

- Rental vehicle

Total

Total

10. OTHERS ASSETS

11. TRADE ACCOUNT PAYABLE - THIRD PARTIES

Third Parties

In Rupiah

- PT Supernova

- Permata Dunia Sukses U.

- Kelompok Tani

Sub Total (moved)

724.775.523

At December 31, 2016 and 2015, all property, plan and equipment except land, was not insured.

Other assets representation guarantee of rental office at December 31, 2016 and 2015 amounting to Rp 35.671.500 and

Rp 35.671.500, respectively.

2015

1.689.042.850

Rp

- -

Rp

-

178.054.000

-

- -

2015

1.771.778.305

-

-

1.462.794.850

Rp

Based on evaluation value of property, plant and equipment at December 31, 2016 and 2015, management believe there is

no changes that indication impairment of property, plant and equipment.

2016

-

2.187.570.373 2.772.790.350

-

4.224.001 4.224.001

-

-

Rp

-

2016

-

1.158.539.669

3.112.595.975 3.112.595.975

1.158.539.669

3.112.595.975

-

1.771.778.305

178.054.000

-

-

1.083.747.500

3.112.595.975

-

21





11. TRADE ACCOUNTS PAYABLE - THIRD PARTIES (continued)

SubTotal (move)

- PT Multi Aksara Sejati

- Rapigra

- PT Putra Cahaya Abadi

- Dharmapala Usaha Sukses

- DPO Indonesia

- PT Iluva Gravure Industry

- Golden Flexible Packaging

- PT Budi Starch & S Tbk

- PT Tomypack Makmur

- PT Karya Indah Bersama

- Sispack Anugerah

- PT Kalbe Farma

- Sugar Labinta

- Jecco Utama

- Kabulinco

- PT Muliaprima Packindo

- PT Multi Kemasindo Gunatama

- Indesso

- Sentra Usahatama Jaya

- Others under 500 million

Total

Aging of trade accounts payable are as follows:

Not yet due

Past due

- 01 - 30 days

- 31 - 60 days

- 61 - 90 days

- 91 -120 days

Total

511.182.375

2.648.779.696

98.345.500

579.469.307

13.775.474.659

-

Rp

354.335.000

-

-

782.100.000

508.090.000

209.830.500

2.772.790.350

2015

107.146.215

2016

-

2.187.570.373

465.653.733

Rp

1.873.877.500

114.294.565

165.084.810

-

1.300.271.500

-

2.269.889.257

762.817.000

605.621.500

324.812.400

236.636.400

281.413.000

343.706.000

227.523.560

253.797.500

Rp

344.970.340

151.800.000

3.110.201.582

9.483.508.810

1.674.790.425

6.243.997.808

221.781.669

2.018.747.569

214.500.000

161.501.600

118.574.472

-

709.942.294

145.425.280

13.775.474.659

2.992.068.581

9.483.508.810

1.911.853.350

Rp

20152016

1.207.425.019

1.976.589.800

1.608.228.209

339.471.000

515.460.000

865.599.899

22





12. SALES ADVANCES

PT Asia Mineral Samudera

PT Asia Sejahtera Mina

Total

13. ACCRUED EXPENSES

Consultant

Others

Total

14. EMPLOYEE BENEFITS OBLIGATION

Total employee

Mortalita rate

Normal retirement rate

Disablity rate

Wages or salary increment rate

Discount rate

Resignation rate 4% for x=20

55 years

225.048.443

9

9,00%

At December 31, 2016 and 2015, the Company recorded estimated employee benefit obligation used "Projected Credit Unit".

Based on actuary report number : 36/LAP/LD/II/2017, dated February 14, 2017, asumptions used are as follows:

2016

Rp

4% for x=20

7,00%

0% for x=540% for x=54

The Company camputed and recorded employee benefit obligation based on the Labor Law of Republik Indonesia Nomor 13

year 2003 dated March 25, 2003. Based on this law the Company is obliged to pay severance, gratituty and compensation

specified by the Labor Law. There is no funding set aside by the Company in respect of the estimated liability. Total employee

at December 31, 2016 and 2015 are amounting to 9 employee.

55 years

9,00%

361.000

59.000.000

2015

166.048.443

Rp

7,00%

Rp

9.029.850.232

45.900.000

2015

11.662.319.832

2016

2016

5,00%

46.261.000

5,00%

2015

2.632.469.600

9

Table Mortalita Indonesia 2011 (TMI'II)

2.313.451.560

Rp

13.642.086.832

11.328.635.272

23





14. EMPLOYEE BENEFITS OBLIGATION (continued)

Amount recognized in statement of profit and loss and other comprehensive income are as follows:

Current service cost

Interest expense

Past service cost

Total expenses

Movement in the present value of the defined benefit obligation recognized in the statements of financial position are as follows:

Present value of the defined benefit obligation

Employee benefits expense

Benefit payment

Withdrawal of program assets

Expense/(income) other comprehensive

Paid dues

Ending balance

Expense/(income) other comprehensive recognized in statement of profit or loss and other comprehensive income are as follows:

Impact of changes in financial assumption

Impact of changes in experience adjustment

Total expense/(income)

Movement expense/(income) other comprehensive recognized in statements of financial position are as follows:

Expense/(Income) other comprehensive at beginning year

Expense of current period

Ending balance

(21.188.927)

39.162.014

2016

266.078.903

- -

-

-

805.433.977

1.110.674.894

266.078.903 224.226.723

-

2016

72.489.058

2015

169.758.889

(23.990.897)

Rp

605.198.152

193.589.845

Rp

54.467.834

-

Rp

39.162.014

224.226.723

2016

Rp

2015

60.350.941

-

-

2015

(23.990.897)

(23.990.897)

18.178.124 42.169.021

39.162.014

2015

Rp Rp

57.340.138

Rp

(23.990.897)

805.433.977

-

2016

Rp

18.178.124

24





14. EMPLOYEE BENEFIT OBLIGATION (continued)

At December 31, 2016 sensitivity analyzed 1% are as follows:

Changes one point prosentation of asumption discount rate will be effect are as follows:

The overall effect of service costs

Prosentation

Changes employee benefit obigation

Changes one point prosentation of asumption salary rate will be effect are as follows:

The overall effect of service costs

Prosentation

Changes employee benefit obigation

Present value of the defined benefit obligation

Adjustment present value of the define benefit obligation

Adjustment prosentation

-7,28%

1.857.451.818 1.980.755.905

20152016

(23.990.897)

1.110.674.894

39.162.014

870.081.011

1.858.977.400

Historical information about the present value of the defined benefit obligation, the deficit in the program and the

adjustments arising on the program liabilities are as follows:

805.433.977

-2,98%

Rp

3,53%

1.980.127.896

Rp

869.453.002

Decrease

Rp

748.302.506

7,95%

Increase

Rp

8,03%

746.776.924

Increase

-7,09%

Decrease

Rp

Rp

25





15. CAPITAL STOCK

List of stockholders at December 31, 2016 and 2015 are as follows :

PT Hijau Sari

PT Surya Pelangi Mandiri

PT Pesona Bangun Mandiri

PT Mitra Niaga Sakti

Public each below 5%

Total

16. ADDITIONAL PAID IN CAPITAL

Additional paid in capital - Initial offering

Issued warrant

Cost of equity securities issuance

Difference tax amnesty

Total

(2.545.594.385)

Rp

55.000.000

12.554.405.615

4.379.310.345

The Company already recorded 200.000.000 shares in the Indonesia Stock Exchange d/h Jakarta Stock Exchange in 2001,

accompanied with issuance of 50.000.000 shares warrant Series I, which is separate warant, giving to the shareholder the

right to buy 1 new share with a nominal value Rp 100 per share with excercise price Rp 175 per share. The Warant have a

term of implementation for 3 year and implemented since December 21, 2001 until Juni 21, 2004. At June 22, 2001, the

Company's shares and warrant began to be traded. As of the date of implementation of June 21, 2004, there is no warrant

have been converted into shares.

100.000.000

2016

12.454.405.615

Rp

Based on notarial deed no. 100 dated April 8, 2011, from H. Feby Rubein Hidayat, SH, notary in Jakarta, already done sales

and purchase shares own by PT Lombok Mandiri Investama amounting to 55.000.000 (fifty five million) shares with value

amounting to Rp 37,5 (thirty seven point five rupiah) to PT Pesona Bangun Mandiri.

2015

Based on notarial deed no. 3 dated April 8, 2011, from Afriwandi, SH, Mkn, notary in Tangerang, already done sales and

purchase share own by PT Lombok Mandiri Investama amounting to 108.800.000 (one hundred and eight million eight

hundred thousand) shares with value amouting to Rp 37,5 (thirty seven point five rupiah) to PT Surya Pelangi Mandiri.

520.000.000 100,00%

19,23%

Based on notarial deed no. 4 dated April 6, 2011, from Afriwandi, SH, Mkn, notary in Tangerang, already done sales and

purchase share own by PT Lombok Mandiri Investama amounted to 100.000.000 (one hundred million) shares with value Rp

37,5 (thirty seven point five rupiah) to PT Hijau Sari.

10.620.689.655

5.500.000.000

21.000.000.000

52.000.000.000

Based on notarial deed no. 101 dated April 8, 2011, from H. Feby Rubein Hidayat, SH, notary in Jakarta, already done sales

and purchase share own by PT Lombok Mandiri Investama amounting to 55.000.000 (fifty five million) shares with value

amounting to Rp 37,5 (thirty seven point five rupiah) to PT Mitra Niaga Sakti.

4.379.310.345

(2.545.594.385)

210.000.000

10.000.000.000

40,38%

%

10,58%

Total

Share

100.000.000 10.000.000.000

10,58%

55.000.000

Total

Lembar

100.000.000

5.500.000.000

10.620.689.655

Rp

Prosentation

Owner

19,23%

-

26





17. EQUITY COMPONENT OF CONVERTIBLE DEBT

PT Hijau Sari

PT Mitra Niaga Sakti

Total

18. OTHER COMPREHENSIVE INCOME

In Rupiah

Beginning balance

Adjustment of implementation

- PSAK No. 24

- Related tax

Ending balance

19. SALES

Seaweed

Candy and dreamy

Total sales

Based on mutual agreement between the Company, PT Hijau Sari and PT Mitra Niaga Sakti, the Company will completed the

stock convertion each amounting to Rp. 34.756.250.000 in 1 (one) year since December 9, 2016 and December 21, 2016

until December 9, 2017 and December 21, 2017. The relevant parties have agreed to make an addendum to the same term

and condition as the initial agreement, unless specified in the addendum.

Based on deed storage (Depot) No.11 dated August 9, 2016, the Company enter into agreement with PT Hijau Sari, the scope

of the agreement is the loan application can be convert to stock when due date amounting to Rp. 34.756.250.000 this loan is

intended for purchase land, building, machines and vehicle from PT. Inasetra Unisatya with term of agreement is 5 (five)

years commencing at December 21, 2011 until Desember 2016. This loan not charge of interest because it can be convert to

stock.

34.756.250.000

2016

34.756.250.000

2016

Rp

53.837.540.072

Rp

119.680.398.651

2015

23.868.153.093

2016

65.842.858.579

69.512.500.000

Based on deed storage (Depot) No.24 dated August 24, 2016, the Company enter into agreement with PT Mitra Niaga Sakti

the scope of the agreement is the loan application can be convert to stock when due date amounting to Rp. 34.756.250.000

this loan is intended for purchase land, building, machines and vehicle from PT. Inasetra Unisatya. Term of this agreement is

5 (five) years commencing December 9, 2011 until December 9, 2016. This loan not charged interest because it can be

convert to stock.

Rp

9.790.503

69.512.500.000

34.756.250.000

2015

Rp

2015

Rp

Rp

86.306.680.432

34.756.250.000

(5.997.724)

23.990.897

(13.633.593)

(39.162.014)

62.438.527.339

(31.626.766)

(43.005.104) (13.633.593)

27





19. SALES (continued)

Sales to third parties more than 10% of total sales are as follows :

PT Inasentra Unisatya

PT Asia Sejahtera Mina

Rahmat

PT Santos Jaya Abadi

Total

20. COST OF GOODS SOLD

Raw material used

Labor expenses

Manufacturing overhead

- Depreciation

- Others overhead

Total production expense

Beginning balance good in process

Ending balance good in process

Beginning balance finished goods

Purchase

Ending balance finished goods

Total cost of goods sold

21. OPERATING EXPENSES

Selling expenses

- Other expenses

- Loading hauling and warehouse expenses

Total selling expenses

2015

1.771.778.305

Rp

115.115.369.073

Rp

1.771.778.305

81.592.765.544

-

2015

6.563.466.317

54.592.310.391

2016

Kg

-

65.842.858.579

53.837.540.072

- -

7.115.657

-

- - -

-

62.438.527.339

-

RpRp

31.409.754.323

23.553.532.754

57.000.000

119.680.398.651

3.610.134

23.868.153.093

-

57.000.000

(21.264.134.124)

Kg

52.140.285.906

47.716.959.046

5.006.314.963

-

113.706.361

3.610.134

17.784.876.436

2.651.548.555

-

2016

1.078.128.301

1.777.658 -

66.454.340.855

6.812.110.949

-

Rp

115.484.019

86.306.680.432

(17.784.876.436)

2015

Rp

7.115.657

2016

28





21. OPERATING EXPENSES (continued)

General and administration expenses

- Salary and employee welfare

- Depreciation

- Allowance employee expenses

- Transportation and business travelling

- Rental expenses

- Advertising expenses

- Post and telecommunication

- Employee benefits expenses

- Share registration

- Security and cleaning expenses

- Professional Fee

- Office expenses

- Repair and maintenance

- Electricity and water expenses

- Tax expeses

- Tax penalty expenses

- Meal and drink expenses

- Medical expenses

- Fuel expenses

- Company activities expenses

- Retribution and donation

- Entertainment expenses

- Newspaper expenses

- Others administration expenses

Total general and administration expenses

Total operating expenses

22. OTHERS INCOME (EXPENSE)

Income / (expense) financial-net

Interest received

Provision/bank administrasion

Tax of interest income

Total income / (expense) finance-net

Gain/ (loss) foreign exchange rate

266.078.903

1.683.177.761

140.346.800

224.226.723

-

34.138.420

3.681.660

19.705.512

4.237.080.189

1.137.033

3.989.929.324

1.340.817.669

2016

1.175.000

125.850.000

5.168.735

46.750.000

1.340.817.669

Rp

142.884.900

18.235.317

-

-

-

1.000.000

13.033.950

629.130.454

-

1.421.100

61.564.550

3.520.216

21.927.504

Rp

60.000.000

2.821.006

500.000

-

105.000.000

2015

1.146.100 2.395.000

1.581.125.140

-

2016

26.812.817

(3.399.971)

3.275.927

(6.129.005)

(546.893)

Rp

2015

4.180.080.189

- 35.470.000

7.683.000 -

1.000.000 -

425.000

3.874.445.305

Rp

(601.667)

(4.054.709)

(11.313.756)

7.860.713

61.603.681

29.027.975

13.725.900

- 60.660.761

29





22. OTHERS INCOME (EXPENSE)

Others net

Gain of write-off tax payables for the year 2015

Others income

Others expense - tax amnesty

Total others net

Total others income/ (expense)

23. TAXATION

a. Prepaid of tax expense is follow :

- Value added tax in

Total

b. Tax payable are as follows :

Income tax article 21


Value added tax


Total

c. Tax income / (expense) consist of :

Curent tax

Deffered tax

Total

2016

Value added tax for the year 2016 amounting to Rp 545.935.914 include value added tax purchase from PT Inasentra

Unisatya amounting to Rp 30.274.296. Since tax invoice from this purchase received by the Company at January 31,

2017, it can not be credited with value added tax in 2016.

Rp

(10.783.357.109)

2015

15.020.419

Rp

(312.125.377)

14.465.104

1.000.000

1.981.159.761 123.801.416

2016

609.230.150

79.194.941

470.408.315

RpRp

(11.008.519.359)

-

2.075.819.806

Rp

(312.125.377)

Rp

295.396.018

2015

(225.162.250)

463.754.990

545.935.914

Rp

-

45.483.253

250.331

545.935.914

-

102.744.043

2016

2015

295.396.018

467.809.699

-

45.483.253

469.558.315

(1.998.947)

2016 2015

Rp

30





23. TAXATION (continued)

c. Tax income / (expense) consist of :

Current Tax

Profit before tax in statement of profit loss and others comprehensive income

Temporary difference

- Allowance of employee benefits oblgation

Permanen difference:

- Salary and employee welfare

- Profesional fee

- Retribution and donation expense

- Entertainment expense

- Rental expense

- Advertising and rental

- Interest income

- Tax expense

- Tax penalty

- Gain of write-off tax payable for the year 2015

- Ohters expense

Taxable income of the Company

Taxable income rounded

Tax rate:

Total income tax expense

Deducted:


Fiscal loss - year 2011

Tax payable (Income tax article 29)

(469.558.315)

-

x

-

-

900.649.000

- 225.162.250

25% 900.649.000

1.472.728.233

2.821.006

900.649.472

629.130.454

1.000.000

61.603.681

14.530.667

-

79.194.941

(44.872.235.571)

579.578.741

(43.399.507.338)

-

18.056.090

-

2016

Rp

1.906.870

2015

224.226.723

Rp

4.250.000

(2.729.034) (7.259.046)

2.777.722

-

-

225.162.250

1.038.855.244

-

-

266.078.903

7.683.000

425.000

(145.967.309)

Reconciliation between income before tax, as stated in statement of profit loss and other comprehensive income and

estimation income tax as of December 31, 2016 and 2015 are as follows :

-

As a result of the participation of the tax amnesty program, in 2016 the Company has lost the right to compensate for losses

amounting to Rp 43.399.507.338 incurred until 2015.

-

-

31





23. TAXATION (continued)

Deffered tax

The Company

- Employee benefits obligation

Deffered tax asset net

The Company

- Employee benefits obligation

- Fiscal loss

Deffered tax asset net

24. EARNING PER SHARE

Profit for the year (Rp.)

Total shares

Profit per share (Rp)

25. TAX AMNESTY

The Company has been paid the ransom amounting to Rp. 2.000.000 at September 7, 2016.

56.056.681 201.358.495

2016

December 31,

520.000.000

Charge to December 31,

277.668.724

Rp

Calculation benefit (beban) deffered tax for the years December 31, 2016 and 2015 are as follows:

201.358.495

Rp

January 1,

Profit Loss

Rp

66.519.726

Rp

9.790.503

11.369.358.430 (312.125.377)

520.000.000

2015 Profit Loss

Rp

January 1,

2016

201.358.495 66.519.726


Rp

2015

277.668.724

Charge to

267.453.364

Based on tax amnesty certificate Number: KET-60/PP/WPJ.07/2016 dated September 7, 2016, the Company has follow tax

amnesty program. Based on tax amnesty certificate, the assets that become the object of tax amnesty as follow:

0,51

(368.182.058)

Rp

(9.969.664.115)

-

(5.997.724)

151.299.538

11.218.058.893

Rp

11.051.235.330

2016

10.849.876.835

(5.997.724)

For the recording accounting of the assets, the Company has applied PSAK 70 "Accounting for Tax Amnesty Asset and

Liability" paragraph 7 which indicates that the assets in the tax amnesty is recorded as tax amnesty assets. Accordance

PSAK 70 paragraph 7, the Company applies the recorded accounting for assets tax amnesty prospectively.

Asset name

Inventory 100.000.000

2015

Amount

9.790.503


(19,17)

Charge to

Charge to

32





SEGMENT INFORMATION

Sales

Cost of goods sols

Gross Profit

Operating expenses

Loss

Financial income

Others net

Loss before tax

Income tax expense


Comprehensive income current year


Current Assets

Non-current Assets

Total assets

Liabilities - short term

Liabilities - long term

Total liabilities

Others information

Capital expenditure

Depreciation

Year 2016

Product Total

25.478.991.070 46.796.076.801

8.944.363.331,84

-

178.054.000

-

691.085.477

2.934.541.975

Agricultural

Product

75.633.200.792

20.937.881.921,06

1.110.674.894

(11.008.519.359)

(29.371.511) -

22.048.556.815

59.098.573.053

21.317.085.731,06

8.780.547.820

(1.748.616)

4.565.029.578

(2.636.459.458) (1.353.469.866) (3.989.929.324)

105.894.649.854

50.154.209.722

11.008.519.359 -

2.520.474.235 (9.999.035.626)

(4.054.709)

(1.951.177.306) 2.520.474.235 1.038.855.244

(29.371.511)

(4.054.709) -

53.837.540.072

Rp Rp

(115.115.369.073) (49.963.595.971) (65.151.773.102)

30.261.449.063

575.100.254

65.842.858.579

2.520.474.235

29.718.429.741

30.829.104.635

-

467.809.699 -

(1.945.373.981)

26.

119.680.398.651

3.873.944.101

1.110.674.894

3.112.595.975

8.780.547.820

-

9.027.970.542

Candy

Rp

The Company classified their business into two segment; sales agrobisnis product and candy. Information about the Company

segment are as follows:

33





SEGMENT INFORMATION (continued)

Sales

Cost of goods sold

Gross profit

Operating expenses

Loss

Financial income

Gain on foreign exchange rate

Others net

Loss before tax

Tax expenses

Others comprehensive income

Comprehensive income current year


Current Assets

Non-current assets

Total assets

Liabilities - short term

Liabilities - long term

Total liabilities

Others information

Capital expenditure

Depreciation

27. NATURE OF RELATIONSHIP AND TRANSACTIONS WITH RELATED PARTIES

Nature of relationship

a. PT Hijau Sari is the stockholder of the Company.

b. PT Mitra Niaga Sakti is the stockholder of the Company.

c. PT Lombok Mandiri Investama is the stockholder of the Company.

2.338.991.220

2.376.989.305

-

Candy

-

6.441.374.347 22.606.753.769

476.834.699

3.112.595.975

-

17.993.173

(312.125.377)

21.801.319.792

62.438.527.339 23.868.153.093

Rp Rp

product

(61.404.421.341)

11.030.851.054

45.483.253

(1.862.156.522)

(1.340.817.669)

(3.399.971)

22.662.676

(4.237.080.189) (2.896.262.520)

37.998.085

61.853.884.580

45.483.253

(1.797.410.564)

(3.399.971)

285.446.537

60.660.761

579.578.741

(81.592.765.544)

86.306.680.432

Year 2015

-

3.679.808.889 4.713.914.888

Rp

1.034.105.998

Agricultural

product Total

(20.188.344.204)

-

107.571.334.615

2.376.989.305

80.739.646.082

34.686.598.982

72.884.735.633

178.054.000 2.934.541.975

-

16.165.379.422

805.433.977

6.441.374.347

805.433.977

18.885.761.502

-

26.

-

15.359.945.445

(312.125.377)

17.993.173

(2.091.542.769)

15.800.837.480

26.831.688.533

34





27. NATURE OF RELATIONSHIP AND TRANSACTIONS WITH RELATED PARTIES (continued)

Transactions with Related Parties

GOING CONCERN

- Build the market and develop other products.

- Maintain financial flexibility and build a stable the financial structure.

- Collect all outstanding accounts receivable, so that the finance condition is stable..

FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENT

a. Foreign currency risk

b. Interest risk

To maintain the Company's going concern, management has developed plans and taken steps to continue the Company's

operational activities. The steps to be developed are:

Currency risk is the risk of fluctuations in the fair value or cash flows of financial instruments due to changes in foreign

currency exchange rates.

In the normal course of business, the Company also entered into certain transactions with related parties namely receiving

loans that were converted to shares of PT Hijau Sari and PT Mitra Niaga Sakti amounting to Rp 34.756.250.000. (note 17)

29.

The Company in the operational activities do not obtain loan from third parties using floating interst risk for minimalized

negatif effect to the Company.

In performing operating, investing and financing activities, the Company has financial risks of currency risk, price risk, credit

risk, liquidity risk and market risk and defines are as folows:

The Company's operating activities are mostly conducted in Rupiah and for balancing the cash flows, the Company is

funding the activities in the same currency.

The Company has suffered loss in 2011 amounting to Rp 56.990.596.346 and the Company started to rise in 2014. After the

Company has follow tax amnesty program and applied PSAK 70 "Accounting for Assets dan Liabilities Tax Amnesty" in 2016

which affected the elimination of deferred tax assets on accumulated loss amounting to Rp 10.849.876.835 which is

recognized as deferred income tax expense in current year's profit and loss, the Company's current year loss as of December

31, 2016 amounting to Rp 9.969.664.115. The loss in 2016 caused by the deficit accumulated up to December 31, 2016

become Rp 58.958.355.292.

This resulted in doubts about the Company’s ability to maintain its business continuity within a reasonable time frame.

Interest rate risk is fluctuation risk in the fair value or cash flows from financial instrument due to changes in the market

interest risk.

28.

35





FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENT (continued)

c. Price risk

d. Credit risk

The Company's maximum exposure for credit risk are as follows :

Cash and cash equivalents

Trade accounts receivable third parties

Total

e. Liquidity risk

29.

The Company managed credik risk by setting limits on the total acceptable risks for each customer and more selective in

the selection of banks and financial institution, only well known and well selected banks and financial institution are

selected.

10.917.361.498 5.570.890.167

6.670.517.149

1.099.626.982 1.270.329.936

The Company managed liquidity risk by maintaining adequate cash and cash equivalents to enable the Company to fullfill

the Company commitments to its normal operation. Beside that the Company also monitoring projection and actual cash

flows, also monitor due date financial assets and liabilities.

The Company plans to pay all liabilities in the next period. To meet the commitment, the Company expects it operation to

generate sufficient cash inflow. The Company has liquid financial assets and is available to meet liquidity needs.

Rp

2016 2015

Price risk is the risk of fluctuations in the fair value or cash flows of financial instruments due to changes in market prices,

either caused by the specific factors of the individual instrument or the factors affecting all the instruments traded in the

market.

Credit risk is the risk that one of the parties fail to meet its liability and cause the other party loss.

Credit risk is a risk that the Company will incur losses arising from customer, client or other party fail to meet their

contractual obligations. The Company's financial instrument that have potensial for credit risk consist of cash and cash

equivalents and trade accounts receivable. Total maximum credit risk exposure is equal to the carrying amount of the

accounts.

Liquidity risk is risk where is the Company will have difficulty in obtaining funds to meets its commitments related to

financial instrument.

The Company managed price risk by evaluated financial performance and market price of investment, also always monitor

global market.

Rp

12.187.691.434

36






f. Equity risk

g. Categories and classes of financial instruments

Current financial assets

- Cash and cash equivalents

- Trade accounts receivable

Total financial assets

Financial liabilities short term

- Trade accounts payable

- Accrued expenses

Total financial liabiities

Current financial assets


- Trade accounts receivable

Total financial assets

Financial liabilities short term

- Trade accounts payable

- Accrued expenses

Total financial liabiities

29.

All the Company equity structure from equity and loan from supplier. There is no other loan received by the Company to

strengthen its capital structure.

The Company manage equity risk to make sure that the Company is able to continue its going concern as to maximize

return on shareholders and stakeholder as well as maintain optimization of debt and equity balance.

- 46.261.000

Liabilities at

amortized cost

Liabilities at

Receivables

Loans and

10.917.361.498

December 31, 2016

9.483.508.810

diamortisasi

Rp Rp

piutang

-

14.000.523.102

Loans and

amortized cost

225.048.443

12.187.691.434

-

-

-

-

1.270.329.936

Rp

-

5.570.890.167

Rp

-

-

13.775.474.659

The Company's Director periodically reviewed the Company capital structure. As a part of reviewed, Director considers

equity cost and related cost.

-

December 31, 2015

6.670.517.149

1.099.626.982

-

-

9.529.769.810

Receivables

37






h. Financial instruments

Financial assets


- Trade accounts receivable third parties

Financial Liabilities

- Trade account payables

- Accrued expenses

Financial Assets


- Trade account receivable to third parties

Financial Liabilities

- Trade account payables

- Accrued expenses

The main guidelines from this policy, are as follows :

- Minimization risk of interest rate, currency and market risk for every transaction.

-

- Monitoring and doing all activites of financial risk management.

-

13.775.474.659 13.775.474.659

1.270.329.936

Carrying value and fair value financial instrument at December 31, 2016 and 2015 are as follows:

10.917.361.498

1.270.329.936

10.917.361.498

Year 2016

Fair value

Rp Rp

29.

1.099.626.982

Carrying value

46.261.000

225.048.443

9.483.508.810 9.483.508.810

Rp

1.099.626.982

5.570.890.167

225.048.443

All financial risk management activities are conducted wisely and consistently and follow best market practices.

In order to manage these risk effectively, the Board of Director has approved saveral strategies to managing financial risk,

which are in line with the Company's objectives. These guidelines establish the objectives and actions to be taken in order to

manage the financial risk.

Maximization used "natural hedge" that benefit as much as possible off-setting natural between sales and expense and

accounts payable and accounts receivable in same currency. The same strategy is taken in relation to interest rate.

46.261.000

Year 2015

Rp

Fair value

5.570.890.167

Carrying amount

38





30. REISSUED THE FINANCIAL STATEMENTS

Liabilities - Short term account payable

to related parties


Liabilities - Short term account payable

to related parties


31. COMPLETING FINANCIAL STATEMENTS

Management of the Company has resposibility to completed this financial statements at June 05, 2017.

69.512.500.000

Debit (Credit)

69.512.500.000 - 69.512.500.000

69.512.500.000

-

(69.512.500.000) -

69.512.500.000

RpRp

After ReclassificationBefore Reclassification

31-Des-16

Rp

31-Des-16

Reclassification

* * * * * * *

31-Des-15

In relation to the adjustment of the presentation of cash flows for the year ended December 31, 2016 and the reclassification

short term account payable to related parties as of December 31, 2016 and 2015 that meet the criteria as an equity

instrument, The Company has reissued the Company’s financial statements at December 31, 2016 and 2015 accompanied by

adjustment to the presentation of cash flows and reclassification of short term account payable to related parties that were

initially recorded as liability component to become equity component are as follows:

Before Reclassification Reclassification After Reclassification

Debit (Credit) 31-Des-15

Rp Rp Rp

69.512.500.000 (69.512.500.000) -

- 69.512.500.000 69.512.500.000

69.512.500.000 - 69.512.500.000

39

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