65 3 Annual Report 2013 Annual Report 2013

Dif fer ence Ex chang e Total Issued Dif fer ence in due t o dif fer ence Retained ear nings bef or e and fully A dditional v aluation of chang es in on financ ial non- Non- paid-up paid-in of assets equity of stat ement Appr opr iat ed Unappr opr iat ed contr olling contr olling Total Not es capital capital, net and liabilities Subsidiary tr anslations int er ests int er ests equity Balance as of Decembe r 31, 20 11 be for e qu asi 8.067 .516 15 8.57 4 - - 68. 41 1 - 1

8.9 58

.344 1

0.80 0.665

23 .031 1 0.777 .634 Dif ference in v aluation of of assets and liabili ties - - 1 9.1 1 6.222 - - - - 1 9.1 1 6.2 22 - 1 9.1 1 6. 222 Dif ference due to c h anges in equit y of S ubsi diar y - - - 5.959 - - - 5.9 59 566 5.393 El iminati on of defici ts thro ugh Quasi-reorgan ization - - 1 8.958.34 4 - - - 1 8.958.344 - - - Bala nce as of December 31, 20 11 af ter quasi

8. 067

.516 15

8.57 4

157 .87 8 5.9 59 68. 41 1 - - 8 .321 .516 22.465 8.343.98 1 Tot al comprehe nsiv e income for the y ear - - - - - - 657 .732 657 .732 78 657 .81 Other co mp re hensiv e income - - - - 1 3.03 1 - - 1 3.031 480 1 2.5 51 Ba lance as of December 31, 2 12 8.067 .516 158.57 4 1 57 .878 5.959 81 .4 42 - 657 .732 8.966 .21 7 2 3.023 8.98 9.240 Issuance of ne w shares 25 750.0 - - - - - - 750.0 - 750.0 R e classification dif ference in v aluation of assets and liabili ties to ret ained earnings im pact wi thdra wing PS AK 5 1 Quasi reorganization 2t - - 1 57 .878 - - - 1 57 .878 - - - Tot al compre hensiv e income for the y ear - - - - - - 71 8.083 7 1 8.083 1 40 7 1 7.94 3 T he Compan ys mandato ry reser v e 27 - - - - - 65.773 65.773 - - - Other co mp re hensiv e income - - - - 20.33 1 - - 20.331 - 20.331 Balance as of December 31, 20 12 8.81 7.516 15

8.57 4

- 5.959 1 1 .773 65.773 1 .467 .920 1 0.413.969 22 .883 1

0.43 6.852

See accompanying notes to consolidated financial statements which form an integral part of these consolidated financial statements PT ERATEX DJAJA Tbk AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the years ended December 31, 2013 and 2012 Expressed in United States Dollars, unless otherwise stated Lihat catatan atas laporan keuangan konsolidasian yang merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian ini See accompanying notes to consolidated financial statements which form an integral part of these consolidated financial statements PT ERATEX DJAJA Tbk DAN ENTITAS ANAK LAPORAN ARUS KAS KONSOLIDASIAN PT ERATEX DJAJA Tbk AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2013 and 2012 Expressed in United States Dollars, unless otherwise stated Untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2013 dan 2012 Disajikan dalam Dolar Amerika Serikat, kecuali dinyatakan lain OPERASI YANG DILANJUTKAN ARUS KAS DARI AKTIVITAS OPERASI: Penerimaan dari pelanggan 59.398.865 47.633.263 Pembayaran kepada pemasok 42.394.349 27.033.603 Pembayaran untuk gaji dan upah 14.025.597 14.057.094 Pembayaran kas untuk beban usaha 1.905.837 2.112.276 Pembayaran pajak 6.796 149.101 Penerimaan dari pendapatan bunga 1.108 1.400 Pembayaran bunga 850.513 309.451 Penerimaan lainnya 93.310 102.197 Kas neto dari aktivitas operasi 310.191 4.075.335 ARUS KAS DARI AKTIVITAS INVESTASI: Aset tetap Penjualan 6.416 23.097 Pembelian 2.380.783 2.582.556 Kas neto untuk aktivitas investasi 2.374.367 2.559.459 ARUS KAS DARI AKTIVITAS PENDANAAN: Pinjaman bank jangka pendek dan pinjaman jangka panjang Penerimaan 23.511.002 14.925.997 Pembayaran 20.033.589 16.895.855 Utang kepada pihak-pihak berelasi Penerimaan 7.700.000 4.100.000 Pembayaran 8.350.000 4.050.000 Kas neto yang dari untuk aktivitas pendanaan 2.827.413 1.919.858 KENAIKAN PENURUNAN NETO KAS DAN SETARA KAS DARI OPERASI YANG DILANJUTKAN 763.237 403.982 OPERASI YANG DIHENTIKAN KENAIKAN PENURUNAN NETO KAS DAN SETARA KAS DARI OPERASI YANG DIHENTIKAN - - KENAIKAN PENURUNAN NETO KAS DAN SETARA KAS DARI SELURUH OPERASI 763.237 403.982 KAS DAN SETARA KAS PADA AWAL PERIODE 5, 14 809.334 405.352 KAS DAN SETARA KAS PADA AKHIR PERIODE 5, 14 46.097 809.334 Kas dan setara kas terdiri dari: Kas dan setara kas 5 263.460 85.514 Pinjaman bank jangka pendek, kredit modal kerja 14 309.557 894.848 Jumlah 46.097 809.334 Catatan 2013 2012 disajikan kembali Notes Restated CONTINUED OPERATION CASH FLOWS FROM OPERATING ACTIVITIES: Received from customers Paid to suppliers Paid to employees Paid for operating expenses Paid for taxes Received from interest income Paid for interest Others received Cash generated used for operating CASH FLOWS FROM INVESTING ACTIVITIES: Fixed assets sale of fixed assets Purchases of fixed assets Net cash used for investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Short and long term bank loans Received Paid Payables from related parties Received Paid Net cash provided by for financing activities NET INCREASE DECREASE IN CASH AND CASH EQUIVALENTS CONTINUING OPERATION DISCONTINUING OPERATION NET INCREASE DECREASE IN CASH AND CASH EQUIVALENTS FROM DISCONTINUING OPERATION NET INCREASE DECREASE IN CASH AND CASH EQUIVALENTS FROM ALL OPERATION CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR Cash and cash equivalents consist of: Cash and cash equivalents Short-term loans, working capital Total 078 Laporan Tahunan 2013 | 2013 Annual Report | PT. ERATEX DJAJA Tbk. 079 Laporan Tahunan 2013 | 2013 Annual Report | PT. ERATEX DJAJA Tbk. UMUM 01

a. Pendirian dan Informasi Umum

PT Eratex Djaja Tbk Entitas didirikan dalam rangka Undang-Undang Penanaman Modal Asing No.1 tahun 1967 berdasarkan akta notaris No.7 tanggal 12 Oktober 1972 yang dibuat oleh Koerniatini Karim, Notaris di Jakarta. Anggaran Dasar Entitas telah mengalami beberapa kali perubahan, dengan akta notaris No.79 tanggal 15 Juni 2004 yang dibuat oleh Aulia Taufani, S.H., dahulu pengganti dari Sutjipto, S.H., Notaris di Jakarta mengenai perubahan nama Entitas dari PT Eratex Djaja Ltd Tbk menjadi PT Eratex Djaja Tbk dan peningkatan modal dasar menjadi sebesar Rp 196.472.000.000 dalam Rupiah penuh Perubahan ini telah disetujui oleh Menteri Kehakiman dan Hak Asasi Manusia Republik Indonesia dengan Surat Keputusan No. C-21010 HT.01.04.TH.2004 tanggal 20 Agustus 2004, dan perubahan terakhir dengan akta No.39 tanggal 30 Mei 2013 yang dibuat oleh Liestiani Wang, S.H., M.Kn., Notaris di Kota Administrasi Jakarta Selatan mengenai penyusunan kembali anggaran dasar, perubahan beberapa pasal anggaran dasar, peningkatan modal disetor modal ditempatkan tanpa peningkatan modal dasar, pemberitahuan perubahan susunan pengurus dan pemberitahuan perubahan jumlah saham dari pemegang saham Entitas. Pada tanggal 19 Juni 2013, akta notaris tersebut telah mendapatkan persetujuan dari Menteri Hukum dan Hak Asasi Manusia Republik Indonesia sesuai surat keputusan No. AHU-33180.AH.01.02.Tahun 2013 dan pemberitahuannya kepada Menteri Hukum dan HAM RI telah diterima dan dicatat sebagaimana surat Menkum HAM RI No.AHU-AH.01.10-47676 untuk perubahan anggaran dasar dan No.AHU-AH.01.10-47677 untuk perubahan data Entitas, keduanya tertanggal 12 November 2013. Entitas bergerak dalam bidang industri tekstil terpadu meliputi bidang-bidang pemintalan, penenunan, pewarnaan, penyelesaian, pencetakan, pembuatan pakaian jadi, falsetwisting dan knitting; serta menjual dan memasarkan produknya didalam maupun diluar negeri. Entitas beroperasi secara komersial pada tahun 1974. Pabrik berlokasi di Jalan Raya Soekarno-Hatta No. 23, Probolinggo, Jawa Timur. Jumlah karyawan masing-masing 2.450 orang dan 2.629 orang pada tanggal 31 Desember 2013 dan 2012. Kantor Entitas terdaftar di Jakarta dengan kantor administrasi di Surabaya dan sebuah cabang di Hong Kong yang pertama kali didirikan pada tahun 1990. Pada tanggal 21 Agustus 1990, Entitas telah mencatatkan sebagian sahamnya di bursa efek di Indonesia sesuai dengan surat persetujuan Menteri Keuangan Republik Indonesia No. SI-125SHMMK.101990 tanggal 14 Juli 1990. Sejak tahun 2000, seluruh saham telah dicatatkan di Bursa Efek Indonesia.

b. Dewan Komisaris, Direksi dan Komite Audit

Susunan Dewan Komisaris, Dewan Direksi dan Komite Audit Independen Entitas pada tanggal 31 Desember 2013 dan 2012 adalah sebagai berikut: PT ERATEX DJAJA Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN PT ERATEX DJAJA Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2013 and 2012 Expressed in United States Dollars, unless otherwise stated Untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2013 dan 2012 Disajikan dalam Dolar Amerika Serikat, kecuali dinyatakan lain

a. Establishment and General Information

framework of Foreign Capital Investment Law No.1, 1967 by Notarial Deed No.7 dated October 12, 1972 based on Deed prepared by Koerniatini Karim, Public Notary in Jakarta. The Entitys Articles of Association have been amended several times, made on June 15, 2004 by Notarial Deed No. 79 prepared by Aulia Taufani, S.H. formerly substitute of Sutjipto, S.H., Public Notary in Jakarta concerning the change of the Entitys name from PT Eratex Djaja Ltd Tbk to PT Eratex Djaja Tbk and an increase in the authorized capital to Rp 196,472,000,000 Rupiah full amount. This amendment was approved by the Minister of Law and Human Rights of the Republic of Indonesia under decision letter No. C-21010 HT.01.04.TH.2004 dated August 20, 2004; and the latest amendment was made on May 30, 2013, by Notarial Deed No.39 prepared by Liestiani Wang, S.H., M.Kn., Notary in Administration City of South Jakarta concerning the rearrangement and reconstitute Entity Article of Association, enhancement paid in capital issued capital without enhancement authorized capital, announcement changes in the composition of Board of Commissioners and Board of Directors and changes in amount of shares from shareholders. On June 19, 2013, the notarial deed has been approved by the Minister of Law and Human Rights with decision letter number No. AHU-33180.AH.01.02.Tahun 2013 and notice to the Minister of Law and Human Rights has been received and recorded in decision letter No. AHU-AH.01.10-47676 for change Entity Article of Association and No. AHU-AH.01.10-47677 for change Entity data, both letters dated November 12, 2013. The activities of the Entity are integrated textile manufacturing, including spinning, weaving, dyeing, finishing, printing, garment making, falsetwisting and knitting, also sells and markets its products in both local and export markets. The Entity commenced its commercial operations in 1974. The Entitys factory is located at Jl. Soekarno-Hatta No. 23, Probolinggo, East Java. As of December 31, 2013 and 2012, the Entity had 2,450 employees and 2,629 employees, respectively. The Entitys registered office is in Jakarta with an administrative office in Surabaya, and a branch in Hongkong which was established in 1990. On August 21, 1990, the Entity registered its shares on the Stock Exchange of Indonesia in accordance with approval of the Minister of Finance of the Republic of Indonesia no. SI-125SHMMK.101990 dated July 14, 1990. Since 2000, all shares have been registered on the Indonesia Stock Exchange.

b. Board of Commissioners, Board of Directors and Independent Audit Committee

The compositions of the Board of Commissioners, Board of Directors and Independent Audit Committee of the Entity as of December 31, 2013 and 2012 were as follows: PT ERATEX DJAJA Tbk the Entity was established in the GENERAL UMUM lanjutan 01

b. Dewan Komisaris, Direksi dan Komite Audit lanjutan 31 Desember 2013

Dewan Komisaris Komisaris Utama : Maniwanen Komisaris : Marissa Jeanne Maren Komisaris Independen : Frans Ping Iskandar Komisaris Independen : John Susanto Oentoro Dewan Direksi Direktur Utama : Antony Thoppil Paul Direktur : Frankie Ma Ngon Direktur : Sasivanen Direktur Non-Afiliasi : Sanjay Kumar Goyal Komite Audit Independen Ketua : Frans Ping Iskandar Anggota : Hempy Ali Anggota : Lea Buntaran 31 Desember 2012 Dewan Komisaris Komisaris Utama : Maniwanen Komisaris : Sasivanen Komisaris Independen : Frans Ping Iskandar Komisaris Independen : John Susanto Oentoro Dewan Direksi Direktur Utama : Raj Kumar Direktur : Frankie Ma Ngon Direktur : Sanjay Kumar Goyal Direktur Non-Afiliasi : Antony Thoppil Paul Komite Audit Independen Ketua : Frans Ping Iskandar Anggota : Hempy Ali Anggota : Lea Buntaran Perincian gaji dan tunjangan untuk Dewan Komisaris dan Direksi untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2013 dan 2012 adalah sebagai berikut: Perincian gaji dan tunjangan untuk Komite Audit untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2013 dan 2012 adalah sebagai berikut: PT ERATEX DJAJA Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN lanjutan PT ERATEX DJAJA Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued For the years ended December 31, 2013 and 2012 Expressed in United States Dollars, unless otherwise stated Untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2013 dan 2012 Disajikan dalam Dolar Amerika Serikat, kecuali dinyatakan lain

b. Board of Commissioners, Board of Directors and Independent Audit Committee continued

December 31, 2013 Board of Commissioners President Commissioner : Maniwanen Commissioner : Marissa Jeanne Maren Independent Commissioner : Frans Ping Iskandar Independent Commissioner : John Susanto Oentoro Board of Directors President Director : Antony Thoppil Paul Director : Frankie Ma Ngon Director : Sasivanen Director Non-Affiliated : Sanjay Kumar Goyal Independent Audit Committees Chairman : Frans Ping Iskandar Member : Hempy Ali Member : Lea Buntaran December 31, 2012 Board of Commissioners President Commissioner : Maniwanen Commissioner : Sasivanen Independent Commissioner : Frans Ping Iskandar Independent Commissioner : John Susanto Oentoro Board of Directors President Director : Raj Kumar Director : Frankie Ma Ngon Director : Sanjay Kumar Goyal Director Non-Affiliated : Antony Thoppil Paul Independent Audit Committees Chairman : Frans Ping Iskandar Member : Hempy Ali Member : Lea Buntaran Salaries and allowances for Board of Commissioners and Board of Directors as of December 31, 2013 and 2012 were as follows: Salaries and allowances for Independent Audit Committee of December 31, 2013 and 2012 were as follows: GENERAL continued Dewan Komisaris 16.712 16.108 Dewan Direksi 51.936 68.273 2013 2012 Board of Commissioners Board of Directors Komite Audit 5.532 6.035 2013 2012 Independent Audit Committee 080 Laporan Tahunan 2013 | 2013 Annual Report | PT. ERATEX DJAJA Tbk. 081 Laporan Tahunan 2013 | 2013 Annual Report | PT. ERATEX DJAJA Tbk.