Liquidity risk Liquidity risk continued

Ÿ u r p r o F Il E o u r M E SSA g E S o u r B u S In E S S o u r pE o pl E o u r g o v Ern A n C E o ur C o M M un IT IE S o u r I n v E S T o r S o u r F In An C E S DAro EnErgy 2013 AnnuAl rEporT 237 PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 577 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012 Expressed in thousands of ¡ S Dollars, unless otherwise stated

43. FINANCIAL RISK MANAGEMENT continued

b. Credit risk continued

As at 31 December 2013 and 2012, the balance outstanding from trade receivables, other receivables, loans to third parties and loan to a related party is as follows: 31 December 2013 Neither past due Past due Past due and nor impaired but not impaired impaired Total Trade receivables 283,852 25,713 20,000 329,565 Other receivables 1,673 307 7,000 8,980 Loans to third parties - 16,670 - 16,670 Loan to a related party - 40,233 - 40,233 Total 285,525 82,923 27,000 395,448 31 December 2012 Neither past due Past due Past due and nor impaired but not impaired impaired Total Trade receivables 401,181 72,832 10,000 484,013 Other receivables 4,322 6,883 - 11,205 Loans to third parties 36,670 - - 36,670 Loan to a related party 44,562 - - 44,562 Total 486,735 79,715 10,000 576,450 The entire receivable balances from trade receivables, other receivables, loans to third parties and loan to a related party are mostly derived from customersthird partiesrelated party which have existed for more than 12 months and do not have any default history. Management is confident in its ability to continue to control and maintain minimal exposure to credit risk, since the Group has clear policies on the selection of customers, legally binding agreements in place for coal sales, mining services and other services rendered, and historically low levels of bad debts. The Group’s general policies for coal sales and rendering services to new and existing customers are as follows: - selecting customers mostly blue chip power plant companies with strong financial conditions and good reputations. - acceptance of new customers and sales of coal and rendering services being approved by the authorised personnel according to the Group’s delegation of authority policy. - requesting payments by letter of credit for new customers. As at 31 December 2013, Management is of the opinion that there is no concentration of credit risk as there is only one party which has outstanding balance of 10.9 from the total receivables and loans.

c. Liquidity risk

Liquidity risk is defined as a risk that arises in situations where the cash inflow from short-term revenue is not enough to cover the cash outflow of short-term expenditure. To manage its liquidity risk, the Group monitors its level of cash and cash equivalents, and maintains these at a level deemed adequate to finance the Groups operational activities and to mitigate the effect of fluctuations in cash flow. The Groups management also regularly monitors projected and actual cash flow, including loan maturity profiles and continuously assesses the financial markets for opportunities to raise funds. In addition, the Group has a stand-by loan facility which can be withdrawn upon request to fund its operations when needed. 238 ¢£ ¤ IABlE, STrong, EFFICIEnT PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 578 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012 Expressed in thousands of ¥ S Dollars, unless otherwise stated

43. FINANCIAL RISK MANAGEMENT continued

c. Liquidity risk continued

The table below analyses the Group’s financial liabilities at the reporting date 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 flows including estimated interest payments: 31 December 2013 More than More than three months and one year and not Less than not later than later than More than three months one year five years five years Total Financial liabilities Trade payables 326,987 - - - 326,987 Dividend payables 39,983 - - - 39,983 Accrued expenses 44,836 - - - 44,836 Other liabilities 19,517 - - - 19,517 Finance lease payables 11,100 23,263 49,794 - 84,157 Bank loans 38,103 154,516 812,477 537,254 1,542,350 Senior Notes - 61,000 244,000 861,000 1,166,000 Total financial liabilities 480,526 238,779 1,106,271 1,398,254 3,223,830 31 December 2012 More than More than three months and one year and not Less than not later than later than More than three months one year five years five years Total Financial liabilities Trade payables 352,675 - - - 352,675 Dividend payables 35,185 - - - 35,185 Accrued expenses 35,539 - - - 35,539 Derivative financial instruments 1,979 - 467 - 2,446 Other liabilities 4,765 - - - 4,765 Non-trade related party payables - - 500 - 500 Finance lease payables 9,110 24,166 60,241 - 93,517 Bank loans 40,161 274,060 928,706 522,164 1,765,091 Senior Notes - 61,000 244,000 922,000 1,227,000 Total financial liabilities 479,414 359,226 1,233,914 1,444,164 3,516,718

d. Fair value estimation