Business Context and Reporting Period
This Form 6-K filing by Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk ("TELKOM") is dated September 27, 2003. The report addresses the status of the audit for the fiscal year ended December 31, 2002, conducted by PricewaterhouseCoopers ("PwC").
Key Financial Metrics
The filing does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity for the 2002 period or the current quarter. The document explicitly states that the net effect of anticipated adjustments to the 2002 financial statements cannot be quantified at this stage because the audit is ongoing.
Material Changes and Audit Status
- Audit Delay: The 2002 audit, initially expected to conclude by the end of September 2003, is delayed. TELKOM now expects completion within the next month, though further delays are possible.
- Reasons for Delay: Delays are attributed to the time required to confirm audit status with Indonesian regulators, gather additional information, and discuss outstanding issues with prior years' auditors.
- Anticipated Adjustments: TELKOM expects to make adjustments to its previously issued 2002 financial statements under both Indonesian GAAP and U.S. GAAP.
- Specific Areas of Adjustment:
- Recording of certain employee benefits and post-employment benefits.
- Accounting for deferred income taxes.
- Reversal of provisions related to receivables from the joint operation scheme (KSO) with PT Aria West International ("AriaWest") following a 2003 settlement.
Guidance, Outlook, and Risks
Management, represented by President Director Kristiono, expressed dedication to meeting obligations to shareholders and regulators despite the delay. The company acknowledges that additional issues affecting financial results may arise during the audit process. The primary risk identified is the uncertainty regarding the materiality of the required adjustments to the 2002 financial statements until the audit is finalized.
Investor Verification Checklist
- Verify the final completion date of the PwC audit for the 2002 fiscal year.
- Monitor the magnitude of adjustments to employee benefits, post-employment benefits, and deferred income taxes once the audit concludes.
- Confirm the final financial impact of the reversal of provisions related to the AriaWest settlement.
- Review the restated 2002 financial statements for both Indonesian GAAP and U.S. GAAP compliance.