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LIQUITDITY AND CAPITAL RESOURCES
Historically, the Company's liquidity needs arise from the need to finance investment and capital expenditure in accordance with business development and investment for working capital. In order to maintain the going concern in property and real estate industry, the Company has to continuously invest in land for business development in the future. Land investment (undeveloped) has proven itself to be a prudent decision for the Company since its market value tends to increase steadily over time.
CASH FLOWS
Cash and Cash equivalents consist of cash on hand and in banks and all unrestricted investment with maturities in 3 month or less from the date of placement and are not pledged as collateral, and unrestricted utilization. Cash flows are prepared based on the direct method, with classification of cash flow operating, investing, and financing activities.
In 2005, the Company and subsidiaries have obtained cash from sales activities amounting to Rp167.357 billion. Internally generated cash flow has mainly been used for working capital purposes and to further business development along with new land acquisition amounting to Rp 171.423 billion, for operating expense and for tax payment. Meanwhile, investment activities conducted by the Company covered land acquisition and disposal of fixed assets in the form of employee's vehicles.
In 2005, the financing resources from the third parties are mainly from payables to related parties amounting to Rp 53.849 billion. Those payables are non interest bearing, without any collateral and have no definite terms of repayment.
Cash and cash equivalents balance in 2005 is Rp 0.555 billion or decreased by 70.3% compared to cash and cash equivalents of 2004.
ASSETS GROWTH
The Company improved the balance sheet for the book year ended 2005. The Company had reinvested in providing land thus increasing the Company's assets by 20.57% or Rp 621.236 billion for the current balance. Most of the Company's assets or 98.5% are real estate and property inventories.
The amount of the real estate and property inventories in 2005 is Rp 611.928 billion representing an increase of 22.5% compared to the real estate and property inventories in 2004.
Real estate and property inventories are classified as land and building ready for sale, building under construction, land under development, land not yet developed and advance purchases.
FINANCIAL REVIEW
LIQUITDITY AND CAPITAL RESOURCES
Historically, the Company's liquidity needs arise from the need to finance investment and capital expenditure in accordance with business development and investment for working capital. In order to maintain the going concern in property and real estate industry, the Company has to continuously invest in land for business development in the future. Land investment (undeveloped) has proven itself to be a prudent decision for the Company since its market value tends to increase steadily over time.
CASH FLOWS
Cash and Cash equivalents consist of cash on hand and in banks and all unrestricted investment with maturities in 3 month or less from the date of placement and are not pledged as collateral, and unrestricted utilization. Cash flows are prepared based on the direct method, with classification of cash flow operating, investing, and financing activities.
In 2005, the Company and subsidiaries have obtained cash from sales activities amounting to Rp167.357 billion. Internally generated cash flow has mainly been used for working capital purposes and to further business development along with new land acquisition amounting to Rp 171.423 billion, for operating expense and for tax payment. Meanwhile, investment activities conducted by the Company covered land acquisition and disposal of fixed assets in the form of employee's vehicles.
In 2005, the financing resources from the third parties are mainly from payables to related parties amounting to Rp 53.849 billion. Those payables are non interest bearing, without any collateral and have no definite terms of repayment.
Cash and cash equivalents balance in 2005 is Rp 0.555 billion or decreased by 70.3% compared to cash and cash equivalents of 2004.
ASSETS GROWTH
The Company improved the balance sheet for the book year ended 2005. The Company had reinvested in providing land thus increasing the Company's assets by 20.57% or Rp 621.236 billion for the current balance. Most of the Company's assets or 98.5% are real estate and property inventories.
The amount of the real estate and property inventories in 2005 is Rp 611.928 billion representing an increase of 22.5% compared to the real estate and property inventories in 2004.
Real estate and property inventories are classified as land and building ready for sale, building under construction, land under development, land not yet developed and advance purchases.