MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

PT XL AXIATA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010 Expressed in millions of Rupiah, unless otherwise stated Page 65

36. FINANCIAL ASSETS AND LIABILITIES continued

Interest rate risk Interest rate exposure is monitored to minimise any negative impact to the Company. Borrowings issued at variable rates expose the Company to cash flow interest rate risk. To measure market risk fluctuations in interest rates, the Company primarily uses interest margin and spread analysis, and enters into cross currency and interest rate swap contracts to hedge the foreign currency interest loans from interest rate uncertainty. The following table represents a breakdown of the Company’s financial asset and financial liabilities which are impacted by interest rates. 31032010 Floating rate Fixed Rate Non Less than More than Less than More than interest one year one year one year one year bearing Total Asset Cash and cash equivalents 1,383,405 - - - - 1,383,405 Trade receivables - - - - 696,482 696,482 Other receivables - - - - 17,101 17,101 Derivative receivables - - - 50,125 - 50,125 Other assets - - 36,036 296,568 - 332,604 Total financial assets 1,383,405 - 36,036 346,693 713,583 2,479,717 Liabilities Trade payables - - - - 2,167,645 2,167,645 Accrued expenses - - - - 567,755 567,755 Derivative payables - - 151,062 106,811 - 257,873 Long-term l oans 3,081,980 8,526,796 - - - 11,608,776 Long-term bonds - - - 1,496,723 - 1,496,723 Total financial liabilites 3,081,980 8,526,796 151,062 1,603,534 2,735,400 16,098,772 Total interest repricing gap 1,698,575 8,526,796 115,026 1,256,841 - 11,597,238 Credit risk Credit risk arises from favourable derivatives financial instruments with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables. For banks, only independent parties with a good rating are accepted. The compliance with a credit limits by customers is regularly monitored by line management. Sales to retailers are required to be settled in cash. For derivative financial instruments, management has established criteria such that, only independent parties with a good rating are accepted. PT XL AXIATA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010 Expressed in millions of Rupiah, unless otherwise stated Page 66

36. FINANCIAL ASSETS AND LIABILITIES continued

Credit risk continued The following table sets out the maximum exposure of credit risk and concentration risk of the Company: Credit Risk Concentration Corporate Others Maximum exposure Trade receivables 575,329 121,153 696,482 Other receivables - 17,101 17,101 Derivative receivables - 50,125 50,125 Other assets 332,604 - 332,604 907,933 188,379 1,096,312 The above table represents a maximum of credit risk exposure to the Company at 31 March 2010. The exposures set out above are based on net carrying amounts as reported in the balance sheet. Liquidity risk Liquidity risk arises in situations where the Company has difficulties in obtaining funding. Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents. The Company manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Management is confident in its ability to continue to control and sustain minimal exposure of credit risk given that the Company have provided sufficient allowance for doubtful accounts to cover incurred losses arising from uncollectible receivables based on existing historical loss. Fair value of financial assets and liabilities Fair value is the amount for which an asset could be exchanged, or a liability settled, in an arms- length transaction basis. The table below sets out the carrying amounts and fair value of those financial assets and liabilities not presented on the Company’s balance sheets at their fair values: 31032010 Carrying Value Fair Value Long-term loans 11,608,776 11,668,699 Long-term bonds 1,496,723 1,492,973