Fair Value of Financial Assets and Financial Liabilities

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated The Group has investments in shares of other entities that are traded in stock exchange, investment in units of mutual funds, and investment in debt securities that would have an impact on the increasedecrease on post-tax profit for the period and other equity component. With assumption if FVPL equity and debt securities price assumption of being 1 higherlower with all other variables held constant, post-tax profit in 2014 and 2013 would have been higherlower amounting to Rp 77,839 and Rp 82,578, respectively, while if AFS’ equity and debt securities had been 1 higherlower with all other variables held constant, other equity component would have been higherlower amounting to Rp 93,208 and Rp 92,888 higherlower. Post-tax profit for the year would increasedecrease as a result of gains losses on equity securities classified as at fair value through profit or loss. Other components of equity would increasedecrease as a result of gains losses on equity securities classified as available-for-sale. To manage price risk arising from investments in debt securities, the Group performs an analysis of the offered interest rate of bonds and the required rate of return which is generally expected by the market. Liquidity Risk Liquidity risk is a risk arising when the cash flow position of the Group is not enough to cover the liabilities which become due. In the management of liquidity risk, management monitors and maintains a level of cash and cash equivalents deemed adequate to finance the Group’s operations and to mitigate the effects of fluctuation in cash flows. Management also regularly evaluates the projected and actual cash flows, including loan maturity profiles, and continuously assess conditions in the financial markets for opportunities to obtain optimal funding sources. The table below analyzes the Group’s financial liabilities into relevant maturity groupings based on the remaining period to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flow: 1 year 2 year Transaction 1 year to 2 year to 5 year 5 year Total cost Total Liabilities Deposits and deposits from other banks 17,165,314 - - - 17,165,314 - 17,165,314 Securities issued 800,000 - 500,000 - 1,300,000 6,546 1,293,454 Loans received 574,851 - - - 574,851 1,014 573,837 Acceptances payable 67,836 - - - 67,836 - 67,836 Payables to brokers 193,927 - - - 193,927 - 193,927 Accrued expenses 104,096 - - - 104,096 - 104,096 Other liabilities 260,270 - - - 260,270 - 260,270 Total liabilities 19,166,294 - 500,000 - 19,666,294 7,560 19,658,734 2014 1 year 2 year Transaction 1 year to 2 year to 5 year 5 year Total cost Total Liabilities Deposits and deposits from other banks 13,607,470 - - - 13,607,470 - 13,607,470 Acceptances payable 238,324 - - - 238,324 - 238,324 Securities issued - 800,000 500,000 - 1,300,000 9,096 1,290,904 Loans received 716,474 - - - 716,474 1,579 714,895 Payables to brokers 81,341 - - - 81,341 - 81,341 Accrued expenses 88,004 - - - 88,004 - 88,004 Other liabilities 366,369 - - - 366,369 - 366,369 Total liabilities 15,097,982 800,000 500,000 - 16,397,982 10,675 16,387,307 2013 - 117 - PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated

57. Other Information

Other financial information a. The Capital Adequacy Ratio CAR of BS were calculated in accordance with Bank Indonesia Regulation. Calculation of CAR is as follows: 2014 2013 I. Capital Stock Components A. Total Core Capital 2,850,101 2,528,077 B. Supplementary Capital 126,838 109,420 II. Total Core and Supplementary Capital 2,976,939 2,637,497 III. Risk Weighted Assets Credit risk after considering specific risk 14,291,449 10,384,365 Market risk 73,526 213,655 Operational risk 1,832,145 1,490,878 Total risk weight assets for credit, market and operational risk 16,197,120 12,088,898 IV.Capital Adequacy Ratio CAR CAR with credit risk 20.83 25.40 CAR with credit and market risk 20.72 24.89 CAR with credit and operational risk 18.46 22.21 CAR with credit, operational and market risk 18.38 21.82 V. Minimum Capital Adequacy Ratio 8 8 b. Solvency Margin Ratio Calculation of solvency margin is as follows: 2014 2013 AJSM 747,94 976,00 ASM 338,25 328,59 - 118 - PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated c. The Adjusted Net Working Capital The Calculation Adjusted Net Working Capital of SMS is as follows: 2014 2013 Net Working Capital Total Current Assets 1,008,689 792,453 Total Liabilities 227,151 103,150 Total Liabilities Account 72,994 123,083 Working Capital 708,544 566,220 Adjusted Gross Working Capital 101,932 92,106 Adjusted Net Working Capital 606,612 474,114 Adjusted Net Working Capital Compulsory 25,000 25,000 Excess Adjusted Net Working Capital 581,612 449,114

58. Supplemental Disclosures for Statements of Cash Flows

The following are the non cash activities of the Group which do not have an impact on the consolidated statements of cashflows: 2014 2013 Write-off of consumer financing receivables Note 7 8,610 29,069 Write-off of factoring receivables Note 9 5,422 3,836 Write-off of loans Note 11 14,909 10,233 Sales of investment in shares Note 17 47,865 - Acquisition of securities at FVPL Note 5 47,865 -

59. New Prospective Accounting Pronouncements

The Indonesian Institute of Accountants has issued the following new and revised Statements of Financial Accounting Standards PSAKs and revised Interpretation of Financial Accounting Standard ISAK which will be effective for annual period beginning January 1, 2015 as follows: PSAK a. PSAK No. 1 Revised 2013, Presentation of Financial Statements b. PSAK No. 4 Revised 2013, Separate Financial Statements c. PSAK No. 15 Revised 2013, Investments in Associates and Joint Ventures d. PSAK No. 24 Revised 2013, Employee Benefits e. PSAK No. 46 Revised 2014, Income Taxes f. PSAK No. 48 Revised 2014, Impairment of Assets g. PSAK No. 50 Revised 2014, Financial Instruments: Presentation h. PSAK No. 55 Revised 2014, Financial Instruments: Recognition and Measurement i. PSAK No. 60 Revised 2014, Financial Instruments: Disclosures j. PSAK No. 65, Consolidated Financial Statements k. PSAK No. 66, Joint Arrangements l. PSAK No. 67, Disclosures of Interests in Other Entities m. PSAK No. 68, Fair Value Measurements - 119 -