Wednesday, 01 June 2022 PT. Salim Invomas Pratama Tbk (SIMP) booked sales of $4.04 trillions in the first quarter of this year. The sales decreases 14% from the same period of the previous year of IDR 4.69 trillion. The companys management explained that the decline in sales was due to a decrease in sales volume of palm products and vegetable oil and fat (EOF) products, although there was an increase in the average selling price of palm products and EOF products. Even so, SIMP Group was able to record a gross profit od IDR 1.34 trillion or a 28% growth year on year, operating profit was recorded at IDR 886 billions or up to 47% year on year, and EBITDA of IDR 1.14 trillions or grew 28% year on year. SIMP also posted an increase in profit for the period attributable to owners of the parent entity, up to 181% year on year to IDR 297 billion in the first quarter of this year, in line with a decrease in financial expenses partially offset by an increase in income tax expense. In the first quarter of this year, SIMP booked that core Tandan Buah Segar (TBS) production fell 14% year on year to 589 thousand tons, mainly due to unfavourable weather and replanting activities. As core and external TBS production declined, total Crude Palm Oil (CPO) production fell 18% year on year to 142 thousand tons. In line with the decline in production in production, CPO sales volume fell 38% year on year to 102 thousand tons, while sales volume for other products fell 18% year on year to 34 thousand tons

PART 1 1. Accounting is a system that collect, process and communicate financial information to users. Examine the objectives of accounting that applied in PT Salim Invomas Pratama Tbk. 2. Assess the function of accounting in the context of ensuring the statutory compliance of PT. Salim Invomas Pratama Tbk to Indonesian laws and industry practices. 3. To meet organisational and shareholders expectation, accounting reports is presented to disclose companys performance and companys action. Evaluate whether the accounting reports of PT. Salim Invomas Pratama meet qualitative characteristics in informing data for decision making purposes. 4. Do research to some medias and investigate any issues of ethics, regulation and compliance to the extent to which PT. Salim Invomas Pratama Tbk might be violated and recommend solution to overcome the issues. 1. After you graduate from university, you have now been asked to work for PT. Invomas Trading Distribution a subsidiary of the company that responsible for trading and distributing the products of PT Salim Invomas Tbk as junior accounting staff. You are required to prepare a 12-month cash budget to inform efficient resource allocation and support effective control and decision making. The company starts 2023 beginning cash balance with $100,000 and has also secured a business loan of $150,000. Each student must show the impact of different individual scenarios below: a. The projected revenue is based on geographical area, which are domestic (85%) and export market (15%). b. Increasing the marketing budget by 15 per cent per month c. All sales are on account. Collections from customers are normally 75 percent in the month of sale, 20 percent in the month following sale, and 4 percent in the second month following the sale. The balance is expected to be uncollectible. d. Reducing rental property related costs by 15 per cent per month. e. All purchases are on account. The company pays for half the purchases in the period of the purchase, and the other half in the following ecnadiug dna ytivitca tnemngissA 2 TRAP

period. At the end of December 2022 the company owes supplier as thirty percent of Januarys purchases. f. In the half of 2023 there will a purchase of a new trucks g. Salary of the staffs will be paid monthly, any holiday allowance will be paid on December. Any bonus if any will be paid on April. h. Commissions for sales personnel will budgeted 15% of sales i. Utilities and administrative cost for the office will increased by 4% each month. j. The company must maintain the minimum cash balance at all times. Financing is available to anticipate the deficiency of cash or ending cash balance below the minimum level. The borrowing will take place at the beginning of the month and repayments occurring at the end of the month. Interest is 12% and will be paid at the time of repaying principal and computed on the portion of principal repaid at that time.

QUESTION:

1. Assess the role of the budgets in the effective planning and control of resources in PT Salim Invomas Pratama Tbk This will include both benefits and any limitations of using budgets and the extent to which they can help identify problems and corrective actions

2. Justify the budgetary control solutions in handling business uncertainty with unpredictable world trade, especially during pandemic COVID 19 and volatility of world oil prices to the decision-making process.

Please answer the 2 questions above. Thanks!