PT Ciputra Development Tbk And Subsidiaries

PT CIPUTRA DEVELOPMENT Tbk AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)For Nine Months Ended 30 September 2006 and 2005(In Rupiah)6. TRANSACTION AND BALANCE WITH RELATED PARTIESIn the ordinary course of business, the Company and subsidiaries are engaged in financial transactions withrelated parties, wherein such transactions consist of expense charges and non-interest bearing cash borrowingwithout fixed repayment dates.Due to Characteristic Relation 2006 2005PT Ciputra Corpora Having the same stockholders and 54,103,797,225 54,103,797,225management with the CompanyPT Ciputra Adigraha Having the same stockholders and 6,810,368,375 -management with the CompanyPT Apratima Sejahtera Having the same stockholders and 867,659,290 5,320,157,234management with the CompanyTotal 61,781,824,890 59,423,954,459The percentage of due to related parties to total liabilities amounted to 3.4% and 1.3% as of 30 September 2006and 2005, respectively.7. INVENTORIESThe details of inventories are as follows:2006 2005Land lots 2,020,247,409,815 2,528,176,967,053Residential houses and shop-houses under construction 151,167,904,334 154,458,618,295Completed residential houses and shop-houses 188,060,679 2,382,745,943Foods, beverages and others 4,114,819,631 4,656,563,812Total 2,175,718,194,459 2,689,674,895,103Inventories of land lots represent a land area covering approximately 804 hectares and 980 hectares as of30 September 2006 and 2005, respectively.Movement of land lots is as follows:2006 2005Beginning balance 2,498,040,818,411 1,704,301,857,849AdditionsPurchase of land 246,962,620,032 493,588,617,820Reclassification from land for development - 558,998,222,909Interest capitalized 1,592,106,387 7,839,075,948DeductionsCharged to cost of sales ( 364,519,059,074 ) ( 236,550,807,473 )Transferred to the creditor ( 361,829,075,941 ) -Ending Balance 2,020,247,409,815 2,528,176,967,05316