PREPAID TAXES ASA Partners Holding Ltd Trident Chambers, PO BOX 146

PT. ERATEX DJAJA Tbk 2010 Annual Report 059 058 PT. ERATEX DJAJA Tbk 2010 Annual Report PT ERATEX DJAJA Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued For the years ended December 31, 2010 and 2009 Expressed in thousands of Rupiah and in thousands of United States Dollars, unless otherwise stated PT ERATEX DJAJA Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued For the years ended December 31, 2010 and 2009 Expressed in thousands of Rupiah and in thousands of United States Dollars, unless otherwise stated LONG-TERM LOANS continued 20 The Hong Kong and Shanghai Banking Corporation Limited The Company entered into a credit agreement with The Hongkong and Shanghai Banking Corporation Limited, Jakarta Branch. In 2006, the Company entered into a new agreement with The Hongkong and Shanghai Banking Corporation Limited, Jakarta Branch HSBC to reschedule the repayment of Club Deal Loan to HSBC and to include PT Eratex Garment, Subsidiary as a new borrower. On June 25, 2010 the Company obtained approval for credit facility restructuring from HSBC and it has been extended with Amendment to Corporate Facility Agreement No: JAK101053U101124 which effective until February 28, 2011 for a review of the facilities provided by HSBC. In the Corporate Facility Agreement, the Company obtained long-term loans as follows: • Reducing Balance Loan RBL with a limit of US 4,258 with best lending rate 10.92 per annum. In Amendment of credit facility restructuring approval No: JAK101053U101124, the Company obtained long term loans facilities as follows: • Irregular Installment Loan 1 IIL 1 with a limit of US 4,360 with applicable best lending rate minus 5 per annum. HSBC provide a grace period for the IIL 1 facility until the end of 2012, and the Company will begin to pay in monthly installments on a regular basis since January 2013 until the end of 2015. • Irregular Installment Loan 3 IIL 3 with a limit of US 7,667. This facility has a due date in 2016. For the IIL 3 facility, HSBC provides interest-free loan until the end of 2011. But in the year 2012 until the year 2016, HSBC will charge interest at 15 per annum. Payment of principal and interest will be due in 2016. This loan is subordinated debt. Repayment is subordinated to operating cash requirement including IIL 1, Overdraft, trade facility and required capital expenditure. The best lending rate is at 10.65 per annum, but subject to fluctuation at HSBC discretion. This loan is covered by a notarized power of attorney to sell rights over the Companys land and buildings in Probolinggo, fiduciary transfer over machineries, inventories, and trade receivables. Those securities except for fiduciary transfer over stocks and receivables from PT Eratex Garment, Subsidiary are joint guarantee with PT Bank DBS Indonesia on pari passu basis. Pacificway Finance Limited On December 28, 2009, Robell International Limited and Pacificway Finance Limited has agreed to waive the Company loans amounted to US 200. 21 TAXATION

a. PREPAID TAXES

Value Added Tax 283,917 22,329 32 2 Total prepaid taxes 283,917 22,329 32 2 b. TAXES PAYABLE Income tax article 21 499,261 435,220 56 46 Income tax article 2326 954,124 631,768 106 67 Income tax article 4 2 55,000 - 6 - Value added tax 784,759 1,123,615 87 120 Total taxes payable 2,293,144 2,190,603 255 233 c. CORPORATE INCOME TAX Current income tax expense: The Company - - - - Subsidiary Companies 102,922 237,721 11 25 Sub total 102,922 237,721 11 25 Deferred tax expensebenefit: The Company 1,174,103 1,361,890 131 145 Subsidiary Companies - 193,299 - 21 Sub total 1,174,103 1,168,591 131 124 Total corporate tax expensesbenefit 1,071,181 1,406,312 120 150 2010 2009 2010 2009 Rp Rp US US 2010 2009 2010 2009 Rp Rp US US 2010 2009 2010 2009 Rp Rp US US The reconciliation between loss before corporate income tax as shown in the consolidated statements of income and the Company income tax computation and the related corporate income tax receivables over payments are as follows: Consolidated loss before corporate income tax 49,353,175 23,463,410 5,489 2,496 Less: Subsidiaries commercial loss 34,710,675 113,486 3,861 12 The Company income before corporate income tax 84,063,850 23,349,924 9,350 2,484 PERMANENT DIFFERENCES: Entertainment, gifts and donations 258,726 214,237 29 23 Travel expenses 4,791 88,469 1 9 Vehicle expenses 54,409 49,077 6 5 Welfare expenses 755,095 1,171,297 84 125 Interest income on deposits and current accounts-subjected to final tax 8,028 31,180 1 3 Others 24,349,588 11,357,777 2,708 1,208 Total permanent differences 25,414,581 12,849,677 2,827 1,367 2010 2009 2010 2009 Rp Rp US US PT. ERATEX DJAJA Tbk 2010 Annual Report 061 060 PT. ERATEX DJAJA Tbk 2010 Annual Report PT ERATEX DJAJA Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued For the years ended December 31, 2010 and 2009 Expressed in thousands of Rupiah and in thousands of United States Dollars, unless otherwise stated PT ERATEX DJAJA Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued For the years ended December 31, 2010 and 2009 Expressed in thousands of Rupiah and in thousands of United States Dollars, unless otherwise stated 21 TAXATION continued

c. CORPORATE INCOME TAX continued TEMPORARY DIFFERENCES: