Dividends PT. Bayan Resources Tbk - Prospectus

Schedule 519 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued w. Use of estimates

The preparation of consolidated financial statements in conformity with generally accepted accounting principles in Indonesia requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current events and activities, actual results could differ from those estimates.

3. ACQUISITION AND ADDITIONAL SHARES IN SUBSIDIARIES

In 2007, 2006 and 2005, the Company and BE made share capital acquisitions in subsidiaries as follows: Acquired parties Acquiring parties Acquisition date Total acquired share capital Acquired from 1. DPP —the Company and BE 5 October 2005 51.00 GBP, Low Tuck Kwong 2. PIK —the Company and BE 28 March 2005 100.00 PT Kaltim Bara Sentosa, Low Tuck Kwong, Engki Wibowo 3. IP —the Company and BE 28 March 2005 100.00 Low Tuck Kwong, Engki Wibowo, Jenny Quantero, 4. WBM —the Company and BE 28 March 2005 100.00 PT Kaltim Investama, Low Tuck Kwong, Engki Wibowo 5. BE —the Company 2 May 2005 99.90 Low Tuck Kwong, Engki Wibowo, Jenny Quantero, 6. TSA —the Company 11 August 2006 75.04 PT Sumber Harmoni Sekawan —BE 26 December 2007 24.96 PT Bara Citra Indah 7. FKP —the Company 11 August 2006 75.00 PT Selecta Harum Sari —BE 26 December 2007 25.00 PT Bara Citra Indah 8. FSP —the Company 14 December 2007 90.00 Low Tuck Kwong 9. BT —the Company 7 November 2007 90.00 Low Tuck Kwong 10. BAS —the Company 31 December 2007 90.00 Low Tuck Kwong In addition, the Company and BE injected additional capital into the following subsidiaries, diluting the minority interests: Investee Investor Date of injection of additional capital Total additional shareholding Diluted parties 1. DPP —the Company and BE 19 December 2007 36.42 Pan Marine International Ltd. 2. MP —the Company 6 December 2007 95.24 Low Tuck Kwong, Engki Wibowo, Jenny Quantero F-36 Schedule 520 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

3. ACQUISITION AND ADDITIONAL SHARES IN SUBSIDIARIES continued

The acquisitions of the above equity interests have been accounted for using the pooling-of-interests method as required under the Statement of Financial Accounting Standards No. 38 Revised 2004, “Accounting for Restructuring of Entities under Common Control,” since DPP, PIK, IP, WBM, TSA, FKP, FSP, BT, BAS and MP, and the Company and BE are entities under common control. Details of the net book value of net assets acquired and the differences arising from these transactions between entities under common control for the three months ended 31 March 2008 and 2007 and for the years ended 31 December 2007, 2006 and 2005 are as follows: 31 March 2008 Beginning balance Addition Ending balance Purchase consideration —DPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,506 — 8,506 —PIK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500 — 3,500 —IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 — 1,000 —WBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 — 5,000 —BE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 999 — 999 —TSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 — 30,000 —FKP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 — 10,000 —FSP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302 — 302 —BT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 — 315 —BAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 — 90 59,712 — 59,712 Injection of additional capital —MP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 — 20,000 Net book value of net assets acquired as at acquisition date —DPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,236 — 40,236 —PIK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,158 — 5,158 —IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,265 — 8,265 —WBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,047 — 3,047 —BE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,412 — 1,412 —TSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,881 — 17,881 —FKP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,096 — 5,096 —FSP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,130 — 2,130 —BT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 — 254 —BAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 — 52 23,787 — 23,787 Net book value of net assets acquired at date of injection of additional capital —MP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,809 — 25,809 Differences in value from restructuring transactions of entities under common control —DPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,742 — 48,742 —PIK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,658 — 8,658 —IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,265 — 9,265 —WBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,953 — 1,953 —BE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413 — 413 —TSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,119 — 12,119 —FKP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,904 — 4,904 —FSP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,828 — 1,828 —BT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 — 61 —BAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 — 38 —MP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,809 — 5,809 77,690 — 77,690 F-37 Schedule 521 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

3. ACQUISITION AND ADDITIONAL SHARES IN SUBSIDIARIES continued

31 March 2007 unaudited Beginning balance Addition Ending balance Purchase consideration —DPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,506 — 8,506 —PIK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500 — 3,500 —IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 — 1,000 —WBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 — 5,000 —BE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 999 — 999 —TSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,512 — 22,512 —FKP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500 — 7,500 49,017 — 49,017 Net book value of net assets acquired as at acquisition date —DPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,236 — 40,236 —PIK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,158 — 5,158 —IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,265 — 8,265 —WBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,047 — 3,047 —BE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,412 — 1,412 —TSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,499 — 16,499 —FKP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,767 — 4,767 27,934 — 27,934 Differences in value from restructuring transactions of entities under common control —DPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,742 — 48,742 —PIK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,658 — 8,658 —IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,265 — 9,265 —WBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,953 — 1,953 —BE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413 — 413 —TSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,013 — 6,013 —FKP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,733 — 2,733 76,951 — 76,951 F-38 Schedule 522 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

3. ACQUISITION AND ADDITIONAL SHARES IN SUBSIDIARIES continued

31 December 2007 Beginning balance Addition Ending balance Purchase consideration —DPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,506 — 8,506 —PIK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500 — 3,500 —IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 — 1,000 —WBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 — 5,000 —BE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 999 — 999 —TSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,512 7,488 30,000 —FKP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500 2,500 10,000 —FSP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 302 302 —BT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 315 315 —BAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 90 90 49,017 10,695 59,712 Injection of additional capital —MP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 20,000 20,000 Net book value of net assets acquired as at acquisition date —DPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,236 — 40,236 —PIK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,158 — 5,158 —IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,265 — 8,265 —WBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,047 — 3,047 —BE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,412 — 1,412 —TSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,499 1,382 17,881 —FKP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,767 329 5,096 —FSP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 2,130 2,130 —BT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 254 254 —BAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 52 52 27,934 4,147 23,787 Net book value of net assets acquired at date of injection of additional capital —MP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 25,809 25,809 Differences in value from restructuring transactions of entities under common control —DPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,742 — 48,742 —PIK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,658 — 8,658 —IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,265 — 9,265 —WBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,953 — 1,953 —BE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413 — 413 —TSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,013 6,106 12,119 —FKP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,733 2,171 4,904 —FSP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,828 1,828 —BT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 61 61 —BAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 38 38 —MP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 5,809 5,809 76,951 739 77,690 F-39 Schedule 523 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

3. ACQUISITION AND ADDITIONAL SHARES IN SUBSIDIARIES continued

31 December 2006 Beginning balance Addition Ending balance Purchase consideration —DPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,506 — 8,506 —PIK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500 — 3,500 —IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 — 1,000 —WBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 — 5,000 —BE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 999 — 999 —TSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 22,512 22,512 —FKP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 7,500 7,500 19,005 30,012 49,017 Net book value of net assets acquired as at acquisition date —DPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,236 — 40,236 —PIK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,158 — 5,158 —IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,265 — 8,265 —WBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,047 — 3,047 —BE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,412 — 1,412 —TSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 16,499 16,499 —FKP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 4,767 4,767 49,200 21,266 27,934 Differences in value from restructuring transactions of entities under common control —DPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,742 — 48,742 —PIK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,658 — 8,658 —IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,265 — 9,265 —WBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,953 — 1,953 —BE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413 — 413 —TSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 6,013 6,013 —FKP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 2,733 2,733 68,205 8,746 76,951 F-40 Schedule 524 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

3. ACQUISITION AND ADDITIONAL SHARES IN SUBSIDIARIES continued

31 December 2005 Beginning balance Addition Ending balance Purchase consideration —DPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 8,506 8,506 —PIK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 3,500 3,500 —IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,000 1,000 —WBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 5,000 5,000 —BE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 999 999 — 19,005 19,005 Net book value of net assets acquired as at acquisition date —DPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 40,236 40,236 —PIK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 5,158 5,158 —IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 8,265 8,265 —WBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 3,047 3,047 —BE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,412 1,412 — 49,200 49,200 Differences in value from restructuring transactions of entities under common control —DPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 48,742 48,742 —PIK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 8,658 8,658 —IP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 9,265 9,265 —WBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,953 1,953 —BE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 413 413 — 68,205 68,205 4. RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS As disclosed in Note 3, the acquisitions of the issued capital of the subsidiaries have been accounted for using the pooling-of-interests method as required under the Statement of Financial Accounting Standards No. 38 Revised 2004, “Accounting for Restructuring of Entities under Common Control”. As such, the 31 December 2006 and 2005 consolidated financial statements have been restated as if the acquisitions had already occurred as of 1 January 2005. F-41 Schedule 525 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

4. RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS continued

The comparative consolidated financial statements as at 31 December 2006 and 2005 have been restated as follows: 31 December 2006 Before restatement After restatement Consolidated balance sheets Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,712,428 2,257,019 Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,550,529 2,333,447 Minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,607 167 Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,292 76,595 Consolidated statements of income Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,218 222,005 Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,117 36,853 Income tax expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,545 64,072 Minority interests in net income of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,860 81 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,696 120,999 Consolidated statements of cash flows Net cash provided from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,599 127,823 Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 552,432 564,058 Net cash provided from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521,855 447,980 31 December 2005 Before restatement After restatement Consolidated balance sheets Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 972,913 1,526,398 Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 829,533 1,728,002 Minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,458 86 Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,922 201,690 Consolidated statements of income Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,164 241,596 Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,286 118,056 Income tax expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,266 41,866 Minority interests in net lossincome of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,467 34 Proforma adjustments arising from restructuring transactions of entities under common control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,532 — Pre-acquisition income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398 — Net lossincome . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,787 81,640 Consolidated statements of cash flows Net cash used inprovided from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,313 157,503 Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331,003 463,721 Net cash provided from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376,748 330,738 F-42 Schedule 526 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

5. CASH AND CASH EQUIVALENTS

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Cash on hand Rupiah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,076 4,582 4,350 3,554 2,256 Cash in banks Rupiah —PT Bank Internasional Indonesia Tbk . . . . . . . . . 2,221 1,172 12,862 1,623 1,811 —PT Bank Danamon Indonesia Tbk . . . . . . . . . . . . 2,206 4,132 3,482 3,372 2,814 —PT Bank Negara Indonesia Persero Tbk . . . . . . 844 290 884 362 154 —PT Bank Central Asia Tbk . . . . . . . . . . . . . . . . . . 22 58 7 32 — —PT Bank Sumitomo Mitsui Indonesia . . . . . . . . . 9 107 99 — — —PT Bank Rakyat Indonesia Persero Tbk . . . . . . 2 2 2 2 3 —PT Bank Mandiri Persero Tbk . . . . . . . . . . . . . . 1 1 1 2 1 Total Rupiah accounts . . . . . . . . . . . . . . . . . . . . . . . . . . 5,305 5,762 17,337 5,393 4,783 US Dollars —PT Bank Internasional Indonesia Tbk . . . . . . . . . 93,235 18,893 40,733 7,135 2,559 —PT Bank Danamon Indonesia Tbk . . . . . . . . . . . . 69,350 116,679 213,033 29,456 18,023 —PT Bank Sumitomo Mitsui Indonesia . . . . . . . . . 2,116 2,155 557 — — —Australia and New Zealand Banking Group Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,044 — 142 — — —Sumitomo Mitsui Banking Corporation . . . . . . . . 281 31 23 397 — —PT ANZ Panin Bank . . . . . . . . . . . . . . . . . . . . . . . 13 — 14 — — —United Overseas Bank Limited . . . . . . . . . . . . . . . — 8 3 — — Total US Dollar accounts . . . . . . . . . . . . . . . . . . . . . . . . 166,039 137,766 254,505 36,988 20,582 Singapore Dollars —PT Bank Internasional Indonesia Tbk . . . . . . . . . — — — — 1 Total Singapore Dollar accounts . . . . . . . . . . . . . . . . . . — — — — 1 Total cash in banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171,344 143,528 271,842 42,381 25,366 Time deposits Rupiah —PT Bank Internasional Indonesia Tbk . . . . . . . . . — — — — 6,000 Total Rupiah accounts . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 6,000 US Dollars —Australia and New Zealand Banking Group Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,148 — 15,252 — — —PT Bank Danamon Indonesia Tbk . . . . . . . . . . . . — — — 4,394 4,962 Total US Dollar accounts . . . . . . . . . . . . . . . . . . . . . . . . 14,148 — 15,252 4,394 4,962 Total time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,148 — 15,252 4,394 10,962 Total cash and cash equivalents . . . . . . . . . . . . . . . . . . 189,568 148,110 291,444 50,329 38,584 F-43 Schedule 527 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

5. CASH AND CASH EQUIVALENTS continued

The above time deposits earned interest at average annual rates as follows: 31 March 31 December 2008 2007 2007 2006 2005 unaudited restated restated Rupiah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 13.0 - 13.5 US Dollars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 — 4.4 - 5.1 2.3 2.3 US Dollar and Rupiah bank accounts at PT Bank Sumitomo Mitsui Indonesia in the name of DPP have been pledged as collateral for loans from Sumitomo Mitsui Banking Corporation and Korea Development Bank refer to Note 17.

6. TRADE RECEIVABLES

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Third parties: US Dollars —Enel Trade S.p.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,792 126,013 150,844 — — —Coal and Oil Company L.L.C . . . . . . . . . . . . . . . . . . . . . . 66,104 15,529 178 — — —Vitol Asia Pte. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,557 — — — — —Bussan Sumisho Carbon Energy Co. Ltd. . . . . . . . . . . . . . 39,224 — — — — —PT Indopasifik Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,513 — 23,130 — — —Adani Global Pte. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,081 — 10,793 — — —Mitsui Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,370 33,506 — — — —Vitol S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 752 — 61,995 — — —Constellation Energy Commodities Group, Inc. . . . . . . . . 363 35,583 35,193 — — —Visa Comtrade A.G. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 15,930 — — — —TNB Fuel Services Sdn. Bhd. . . . . . . . . . . . . . . . . . . . . . . — 45,470 92,599 23,523 — —Sojitz Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 10,918 3,542 — — —Others each below Rp 10,000 . . . . . . . . . . . . . . . . . . . . . 9,686 10,315 9,566 8,861 9,234 Rupiah Others each below—Rp 1,000 . . . . . . . . . . . . . . . . . . . . . . . . . . 433 — — — — Less: Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 146 Trade receivables—third parties, net . . . . . . . . . . . . . . . . . . . . . . . 345,969 293,264 387,840 32,384 9,088 Related parties: US Dollars —PT Pan Assets Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . 5,677 14,816 11,123 6,197 13,071 —PT Kaltim Supacoal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,324 — 667 — — —Bayan International Pte. Ltd. . . . . . . . . . . . . . . . . . . . . . . . — — — 96,048 — —PT Nirmala Matranusa . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 22,265 Rupiah —PT Kaltim Supacoal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 — 28 — — —PT Pan Assets Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . 45 1,444 1,503 255 1,271 Trade receivables—related parties, net . . . . . . . . . . . . . . . . . . . . . 7,112 16,260 13,321 102,500 36,607 Current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,112 16,260 13,321 102,500 35,482 Non-current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 1,125 Percentage of trade receivables—related parties, net to total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.23 0.67 0.47 4.54 2.40 F-44 Schedule 528 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

6. TRADE RECEIVABLES continued

Aging analysis of trade receivables based on invoice date is as follows: 31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351,773 271,489 382,628 130,154 23,430 Overdue 30 - 90 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 33,368 15,268 130 — Overdue 90 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,282 4,667 3,265 4,600 22,265 353,081 309,524 401,161 134,884 45,695 Based on the review of the status of the individual receivable accounts at balance sheet date, the Group’s management is of the opinion that these receivables will be collected in full and therefore an allowance for doubtful accounts is not considered necessary as at 31 March 2008. The proceeds of coal sales under the coal sale and purchase agreement between GBP and Taiwan Power Company have been pledged as collateral for DPP’s loans to Sumitomo Mitsui Banking Corporation and Korea Development Bank refer to Note 17. Refer to Note 27 for details of related party transactions.

7. OTHER RECEIVABLES

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Third parties: —PT KTH Mining Engineering . . . . . . . . . . . . . . . . . . . . . . . . 9,825 15,746 10,041 1,287 — —PT Bukit Makmur Mandiri Utama . . . . . . . . . . . . . . . . . . . . . — 144,131 — — — —Others each below Rp 5,000 . . . . . . . . . . . . . . . . . . . . . . . . 7,603 12,079 11,554 9,764 2,578 Other receivables—third parties, net . . . . . . . . . . . . . . . . . . . . . . . . . 17,428 171,956 21,595 11,051 2,578 Current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,428 165,476 20,256 11,051 2,578 Non-current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 6,480 1,339 — — Related parties: —PT Nirmala Matranusa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,410 1,590 — 1,679 — —Bayan International Pte. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . 4,820 — — — — —Company’s shareholder and subsidiaries’ shareholder . . . . . 3,414 2,604 2,429 2,605 2,424 —Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 784 605 693 365 1,601 —PT Lian Beng Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 497 — — — —PT Bunga Permata Sari . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 — — — —PT Kalimantan Citra Bara . . . . . . . . . . . . . . . . . . . . . . . . . . . — 8,875 — — — —PT Pan Assets Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 507 — 507 306 —PT Sumber Harmoni Sekawan . . . . . . . . . . . . . . . . . . . . . . . . — — — — 20,774 —Directors of GBP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 13,384 — —PT Selecta Harum Sari . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 5,950 —PT Kaltim Asetindo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 1,734 Other receivables—related parties, net . . . . . . . . . . . . . . . . . . . . . . . 39,613 14,681 3,122 18,540 32,789 Current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,299 11,770 918 15,629 30,059 Non-current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,314 2,911 2,204 2,911 2,730 Percentage of other receivables—related parties, net to total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.30 0.60 0.11 0.82 2.15 F-45 Schedule 529 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

7. OTHER RECEIVABLES continued

Based on the review of the status of the individual other receivable accounts at balance sheet date, the Group’s management is of the opinion that these other receivables will be collected in full and therefore an allowance for doubtful accounts is not considered necessary as at 31 March 2008.

8. INVENTORIES

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228,979 109,269 83,909 224,222 151,620 Spare parts and materials . . . . . . . . . . . . . . . . . . . . . . . . . 52,245 44,339 44,303 39,376 32,124 Diesel fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,187 4,056 4,507 7,708 4,454 Oil and lubricants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,524 2,440 4,600 313 193 288,935 160,104 137,319 271,619 188,391 Less: Allowance for obsolete inventory . . . . . . . . . . . . . . 2,759 1,278 2,126 289 1,534 286,176 158,826 135,193 271,330 186,857 Movement in allowance for obsolete inventory was as follows: 31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,126 289 289 1,534 1,450 Movement during the year: —Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 633 989 1,837 — 84 —Write off inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 1,245 — Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,759 1,278 2,126 289 1,534 The Group’s management believes that the allowance for obsolete inventory is adequate to cover possible losses from obsolete inventories. As at 31 March 2008 and 2007 and 31 December 2007, 2006 and 2005 the inventories were not covered by insurance.

9. RESTRICTED CASH

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated US Dollars Cash in banks: —Sumitomo Mitsui Banking Corporation . . . . . . . . . . . . . . 25,008 27,272 26,574 26,828 — —PT Bank Danamon Indonesia Tbk . . . . . . . . . . . . . . . . . . . 24,759 18,837 19,583 — — 49,767 46,109 46,157 26,828 — Time deposit: —PT Bank Danamon Indonesia Tbk . . . . . . . . . . . . . . . . . . . — — — 7,576 — 49,767 46,109 46,157 34,404 — F-46 Schedule 530 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

9. RESTRICTED CASH continued

Cash at Sumitomo Mitsui Banking Corporation “SMBC” represents DPP’s reserved bank account of US2,713,222 31 March 2007: US2,990,951—unaudited, 31 December 2007: US2,819,044, 2006: US2,953,292 for the repayment of loans to SMBC and Korea Development Bank and GBP’s reserved bank account of US nil 31 March 2007: US nil—unaudited, 31 December 2007: US nil, 2006: US20,946 as guarantee for DPP and Bayan International Pte. Ltd. loans with SMBC refer to Note 17. Restricted cash at PT Bank Danamon Indonesia Tbk amounted to US1,223,969 31 March 2007: US651,118—unaudited, 31 December 2007: US636,325, 2006 and 2005:US nil representing GBP’s reserved bank account used to secure bank guarantee for reclamation purpose refer to Note 28m and US1,462,310 31 March 2007: US1,414,834—unaudited, 31 December 2007: US1,442,759, 2006: US840,000 and 2005:US nil representing GBP’s reserved bank account used to secure bank guarantee in relation to performance guarantee to coal sales agreement between GBP, IP and TNB Fuel Services Sdn Bhd., “TNB” refer to Note 28m.

10. TAXATION a. Prepaid taxes

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated The Company Overpayment of corporate income tax —2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,969 — — — — Subsidiaries Value Added Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,981 32,786 48,509 46,815 17,626 Overpayment of corporate income tax —2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,851 — — — — —2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,867 568 16,036 — — —2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,101 5,100 5,170 5,158 — —2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,012 2,624 943 3,553 3,598 —2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 96,157 96,832 —2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,080 5,080 5,080 — — —2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 385 385 100,861 46,158 75,738 152,068 118,441 Current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,903 6,377 53,125 144,461 15,809 Non-current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,958 39,781 22,613 7,607 102,632

b. Taxes payable

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated The Company Income tax—article 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,556 26,751 79,623 31,575 3,318 Income tax—article 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,495 2,575 2,840 277 — Income tax—article 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 931 513 696 212 3 Income tax—article 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332 194 330 35 — Income tax—article 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 4 22 34 — Value Added Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1,894 — — Income tax—article 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 3 37,358 30,037 85,405 32,133 3,324 F-47 Schedule 531 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

10. TAXATION continued b. Taxes payable continued