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PT ORCI}ilAHDEL ffiIHEfrAL.$ RE$OUR$ES

F'NA!{EML STATE$fi EIIISYeers Endrd Decernber 31,2016 and 20f5

And*N{OEF fiII}EI-IT AI"IOITSR$' REPORT

€emwexACHMAD, RASYID, HISBULLAH & JIRRY

REGISTERED PUBLIC ACCOUNTANTSMember of : Nozaka Japan Certified Public Accountant Firm

Head Office :

Jl. Kepu Barat No. 90-91 B Kemayoran lakarta Pusat 10620T elp : 021 -4247 8'7 2, 426497 1, F ax : 021 -4240080

Website : www.kapj erry-arhj.comE-mail : kap *arhj @yahoo. co. id

Branch Office :

Jakarta Kebayoran, Bandung & Semarang

PT COROMANDEL MINERALS RESOURCES

FINANCIAL STATEMENTSYears Ended December 31, 2016 and 2015

AndINDEPENDENT AUDITORS' REPORT

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FINANCIAL STATEMENTS

lndependent Auditors' Report.

Financial Statement Position

Statements of Comprehensive lncome

Statements of Changes in Equity

Statements of Cash flows..... ...... ..

Notes to Financial Statements. 5-1 0

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ACHMAD, RASYID, HISBULLAH & JTRRYREGISTERED P UBLIC ACCOUNTANTS

KANTOR PUSAT : NIU. KAP : SB6/KM.UZCIT7Member of : Nozaka Japan Certifietl pulilic Accountant Firm

Pusat : Jl. Kcpu Barat No. 90-91 B l(cmayoran .[akarla pusat Telp. :021-42419j2,42.64911Wcbsite : wrvu,.kap jenl_arh j.crxn. E_mail : kap arhj(oryahoo.cit, td

Cabang : .lakarta Kebayoran, Ilandun! & Sernararc

Fax : 021- 4240080

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I N pEPEN,PENT AU DlroR'q .REP9Rrrrto : gzlARH.l -ROBA-CM R/GA I 03'17

To The Shareholders, Board of commissioners and Directors


we have audited the accompanying financial statements PT COROMANDEL MINERALS

RESOURCES ("the company") which, c5mprise the statement of financial position as of December 31,

2016 and the statement oi pr6rii or loss and other comprehensive income, changes in equity, and cash

flows for the year then ended and a summary of significant accounting policies and other explanatory

information.

Management,s responsibility for the financial statements

Management is responsible for the preparation and fair presentation of such financial statements in

accordance with lndonesian Financial Accounting Standards, and for such internal control as

management determines is necessary to enable the preparation of financial statements that are free

from material misstatement, whether due to fraud or error'

A udito r's resP o n si b i I itY

Our responsibility is to express an opinion on such financial statements based on our audit' We

conducted our audit in accordance with Standards on Auditing established by th9 lndonesian lnstitute of

certified public Accountants. Those standards require that we comply with ethical requirements and

[tan ano perform the audit to obtain reasonable assurance about whether such financial statements are

free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in

the financial statements. r[e procedures selected depend on the auditors' judgement, including the

assesment of the risks of material misstatement of the financial statements, whether due to fraud or

error. ln making those risk assesments, the auditors consider internal control relevant to the entity's

preparation ,nd'rriipr"sentation of the financial statements in order to design audit procedures that are

approriate in the circumtances, but not for the purpose of expressing an opinion on the effectiveness of

the entity,s internal control. An audit also includes evaluating the appropriateness of accounting policies

used and the reasonableness of accounting estimates maOe by management, as well as evaluating the

overall presentation of the financial statements'

we believe that the audit evidence we have obtained is sufficient and approrrate to provide a basis for

our audit oPinion.

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ACHMAD, RASYID, HISBULLAH & JERRYREGISTERED PUBLIC ACCOUNTANTS

KANTOR. PUSAT : NIU" KAP : 586/KM.112007Mernber of : Nozaka Japan Certi{ied Public Accountant Firm

Pusat : .T1. Kepu Barat No. 90-91 B Kemavoran Jakafta Pusat Tclp. : 021-4247872,12649 ,a1

Wehsite : rvrvrr liap jcrry arhj.com. E-ntail : kap arh.ilEl,ahoo.co. idCabang : Jakarta Kebayoran. Bandr-rng & Semarang

CPA.,CAer AP'0'102

Fax : 021- 4210080

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Opinion

ln our opinion, the accompanvi!g.financial statements present fairly' in all material respects' the

financiar position or pi cononrrnr.roe' rvtirrrinAls REsouRcES ai of 'December 31 ,2016, and its

financiar performance and cash frows to," ir..," yrri,.,"n ended, in accordance with lndonesian Financial

Accounting Standards.

REGISTERED PUBLIC ACCOUNTANTSICiUINO, RASYID, HISBULLAH & JERRY

Jakarta, March 27,2017

Notlqclg-Bed9.I

The accompanying financiar statements are not intended to presentfh-E-iiiiilffisition, result of operations and cash flows in accordance with accounting

princrpres and practices g".";;;;;;6iJ,n count,ies r^ilr;j;d;"i,";;oin"itnrn rnoon"iir' ine-stanoaros procedures and practices to audit such

financial statements are tnose teneratty accepted and applied 'n lndonesia'

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BALANCE SHEET

DECEMBER 31,2016 and 2015

Notes 2416 2015ASSETS

CURRENT ASSETS

Cash and cash equivalents

Advances

Total Current Assets

NON CURRENT ASSETS

lnvestment

Fixed Assets Net of Accumulated

Depreciation in 20'15 and2014

Other Assets

TOTAL ASSETS

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Accounts Payable Trade

Others Payable

Total current liabilities

NON CURRENT LIABILITIES

EQUITY

Paid up Capital 3,000 shares, nominal Rp

942,700 per share

Retained earnings

Total Equity

TOTAL L]ABILITIES AND EQUITY

107.739.417.853 95.488.168.285

3,2b,2c

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6,2f

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664.542.214

94.'115.456.789

666.794.s72

81.836.046.250

94.779.999.003

171 .750 000

12.787.668.850

82.502.840.822

171 .750.000

25.908.613

12.787.668.850

12.959.418.850 12.985.327.463

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I2.690.800.000

139.070.507.040

5.595.294.580

120.669 895.100

141.761.307.040 126.265.189.680

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2.828.100.000

(36.849 989.187)

(34.021 .889.187)

107.739.417.853

2.828.100.000

(33.605.121 .395)

(30.777 .021.395)

95.488.168.285

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See accompanying notes to financial statements which are an integral paft of the financial statements


STATEMENT OF INCOME

For the years ended December 31 , 201 6 and 201 5

(Expressed in Rupiah)

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Notes 20152016

REVENUE

DIRECT COST

GROSS INCOME

OPERATING EXPENSE

General and Administrative

TNC0ME (LoSS) FROM OPERATI0N

Other income (expenses):

Bank Charges

Bank lnterest income - net

Foreign Exchange lncome (Loss)

Total Other income (expenses):

TNCOME (LOSS)BEFoRE INCOME TAX

Tax expenses

Current

Deferred

Net lncome (Loss)

29,

29,

29,11 (3 018 756 592) (2.420.240701)

(3.018.756.592) (2.420.240.701l.

(e 6e2 135)

1.097.481

(217.516.546)

(5.e52.510)

305.288

(39 302 567)

29 (226.111 .200) (44.949.789)

(3.244.867.792) (2 465.1e0.490)

{3.244.867.792) (2.465.190.490)

See accompanying notes to financialsfafemenfs which are an integral paft of the financialsfafemenfs

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STATEMENT OF CHANGE IN EQUITY

For the years ended December 31 , 201 6 and 201 5


Capital Stock

Subscribed and Fully

Paid

Retained Earnings/

DefisitsTotal Equity

Balance December 3'1,, 2014

Adjusment foreign exchange

Net lncome (Loss) in 2015

Balance December 31, 2015

Net lncome (Loss) in 2016

Balance December 31, 2016

2.828.100.000 (1.926.970.905)

(2e 212 960.000)

(2.465,190.490)

901.129.095

(29 212 960 000)

(2.465.190.490),

,2.828,100.000 (33.605.121 .395)

(3.244.867.792\

(30,777.021 .3e5)

(3.244.867.792)

2.828.100.000 (36.849.989.1 87) _ (34.021.88e.187)

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See accompanying notes to financial statements which are an integrat paft of the financiatsfafemenfs


STATEMENT OF CASH FLOWS

Forthe years ended December 31,2016 and 2015


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CASH FLOWS FROM OPERATING AGTIVITIES

Net Loss

Adjusments to reconcile net profit (/oss) fo net cash

DepreciationProvided by (used in) operating activities :

Decrease (increase) in assets:

AdvancesOther Asset

lncrease (decrease) in liabilities:Accounts payable tradeOthers Payable

Net Cash provided by (used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Net cash used in investing activities

CASH FLOWS FROM FUNDING ACTIVITIES

Net cash provided by (used in)from funding activities

Net (decrease) increase in cash and cash equivalent

Cash and cash equivalent at beginning of the year

Cash and cash equivalent at ending ofthe year

(3.244.867.792)

25 908.613

(12.279.410.539)

(2.904.494.580)'18.400.61 1.940

(2.465.1e0.490)

68.895.280

(4.119.279.277)8.000.000

1.407.090.0005.742.912.673

(2.2s2.358) 642.428.186

(2.252.358)

666.794.572

642.428.186

24.366.387

664.542.214 666.794.573

See accompanying notes to financial statements which are an integral part of the financiatstafemenfs

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NOTES TO FINANCIAL STATEMENTS

Years ended December 31 , 2016 and 20'15


1. GENERAL

a. The Company Establishment

PT COROMANDEL MINERALS RESOURCES (The Company) was established in Jakarta based on the

notarial deed No. 03 dated January 23,2008 of Dewantari Handayani, SH notary in Jakarta. The deed of

establishment was approved by the Ministry of Justice and Human Rights of the Republic of lndonesia in its

Decision Letter No. AHU-38559.AH.01.01.2008 dated July 7, 2008.

The Company's articles of association has been amended several times, most recently amended by the

notarial deed No, 4 dated May 5, 2015 of Rohana Prieta, SH, concerning articles of the Company changes of

Management composition, the deed was registered by the Ministry of Justice and Human Rights of the

Republic of lndonesia in its Decision Letter AHU - AH.01.10-08491, The Company activities are, Contractor,

Trading in coal Export.

The Company domiciled in Epiwalk Office Suites Lt .5 Unit 8.528 Komplek Rasuna Epicentrum, Jl. HR Rasuna

Said South Jakarta.The Company has permanent employees amounting to are 3 (Three) employees

respectively in 2016 and 2015,.

The Company's Board of Commissioners and Directors as of December 31, 2016 and 2015 consist of:

Year 2016 and 2015

Commissioner

President Director

Director

Director

: Veppur Margabandu Mohan

: Chandrasekaran Vaidhieswaran

: Tharmapuram Subramaniam Raghupatty

: Ranganatha Srinivasan,

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2, SUMMARY OF ACCOUNTING POLICIES

a. Basis of preparation of financial statements

The financial statements have been prepared on the historical cost basis in accordance with generally

accepted accounting principal in lndonesia that is Financial Accounting Standard, except if any changes the

accounting policies by the Company.

The financial statements have been prepared on accrual basis except for the statements of cash flows. The

statements of cash flows are prepared based on the indirect method by classifyng cash flows on the basis of

operating, investing and financing activities.

The reporting currency used in the financial statements is lndonesia Rupiah.

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Years ended December 3'l , 20'16 and 2015


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b. Foreign Currency Transaction and Balances

Transactions involving foreign currencies are recorded in lndonesia Rupiah at the rates of exchanges

prevailing at the time the transaction are made. At the balance date, monetary assets and liabilities

denominated in foreign currencies are adjusted to lndonesian Rupiah to reflect the prevailing middle rates of

exchange at such date. Any resulting gains or losses are credited or charged to the statement of income for

As of December 31 , 2016 and 2015, the middle rates of exchange to adjust monetary assets and liabilities as

pusblished by lndonesia tax rate are Rp 13,454 / l USD and Rp 13,640 / 'l USD

c. Cash and Cash equivalent

Cash and cash equivalent consist of cash on hand and cash in banks,

d. Trade Receivable

The Company does not provide allowance for doubtful account of the individual receivable, the management

believe all of are collectible.

e, lnvestment

lnvestment in shares of stock with ownership interest of less than 20% that do not have readily determinable

fair values and are intended for long-term investment are stated at cost.

f. Fixed Assets

Land [s stated at cost and is not depreciated

Fixed assets is stated at cost loss accumulated depreciation, Depreciation is computed using the straight-line

method based on the estimated useful lives of the assets as follows:

Office Equipment 4

Survey Equipment 4

The cost of repairs and maintenance is charged to operations as incurred; significant renewals and

betterments are capitalized. When assets are retired or otheruise disposed of, their acquisition costs and the

related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or

charged to current year operations.

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Years ended December 31,2016 and 2015


g. Revenue and Expenses

Revenue are recognized when the invoice are made. Expenses are recognized when incurred.

h. lncome tax

Current tax expense is determined based on the estimated taxable income for the year. Deferred tax benefit or

expense is calculated in accordance with PSAK No. 46, "Accounting for lncome Tax".

The deferred income tax method is applied to reflect the effects of timing differences between financial

reporting and income tax purposes and accumulated tax loss carryfonvard which is estimated to be fully

recoverable.

Amendments to tax obligations are recorded when a tax assesment letter is received or, if appealed against by

the Company, when the result of the appeal is determined.

Employee Benefits

The Company has not implemented employee benefit obligations as set forth in GAAP ETAP chapter 23

"Employee Benefits". Recognition of such liability is based on the policies Labour law N0,13 of 2003.

ln these conditions the Company is required to pay employee benefits to employees when they stop working in

the resignation, normal retirement, death and permanent disability. The amount of post-employment benefits

are primarily based on length of employment and compensation of employees on completion of employment.

Basically employee benefits under the Employment Act N0.13 of 2003 is a defined benefit plan.

3. CASH AND CASH EQUIVALENT

This accounts consist of:

Cash on hand

Cash in Bank:

IDR

Bank Mandiri

USD

Bank Mandiri

Total Cash and Bank

2016 2015

16.255.660 4.726.677

116.411.186 13 638 118

531.875.368 648.429.777

664.542.214 666.794.572

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4, INVESTMENT


PT Adcoal Energindo

5. ADVANCES


PT Mitra Setia Tanah Bumbu (MSTB)

CV Hidup Hidayah lllahi

Advance for coal sourcing

2015

171 .750.000 171.750.000

2016 2015

79.075,895 946

12.964.147.174

2 075 413.669

67 .762.541.447

11.998.091.134

2.075.413,669

6, FIXED ASSETS


At Cost

Office Equipment

Survey Equipment

Total

Accumulated Depreciation

Ofiice Equipment

Survey Equipment

Total

Net Book Value

At Cost

Office Equipment

Survey Equipment

Total

Accumulated Depreciation

Office Equipment

Survey Equipment

Total

Net Book Value

January 1, 2016 Addition

94.115.456.789 81.836.046.250

Deduction December 31,2016

37.779.620

237.801.500

37.779.620

237.801.500

275.581.120 275.s81j20

36.641,947

213.030.560

1.137 ,673

24.770,940

37.779.620

237.801.500

249.672.507 25.908.613

25.908.613

January 1,2015 Addition

275.581.120

Deduction December 31,2015

37.779.620

237.801.s00

37.779.620

237.801.500

275.581.120 275.581.120

27.197.042

153,580.185

9.444.905

59.450.375

36.641.947

213.030.560

180.777.227 249.672.507

94.803.893

68.895.280

25.908.613



Years ended December 31 , 201 6 and 201 5


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7, OTHERASSETS


Pre Operating Expenses (Net Of lnterest)

Security Deposit

8. ACCOUNTSPAYABLETRADE


The India Cements Ltd

9, OTHER ACCOUNTS PAYABLE


Coromandel Minerals Resources Pte Ltd Singapore

Provision for Tax Payable

10. CAPITAL STOCK

Based on Notarialdeed No. 11 dated March22,2010 of Rohana Prieta, SH,,

holders consist of:

Amount of share

Shareholders'

12,787.668.850 12.787.668.850

201 6 2015

2.690.800.000 5.595.294.580

2.690.800.000 5.595.294.580

2016 2015

139.047.090.000 120,645.800.000

23.417.040 24.095.100

139.070.507.040 120.669.895.100

Notary in Jakarta, the composition of share

2016 and 2015

2016 2015

12,767.668.850

20.000.000

12.767.668.850

20.000.000

Percentage of Total Subscribed

ownership (Rp)

ICL Financial Services Limited

The lndia Cements Limited

60

2940

2,0%

98,0%

56.562.000

2.771.538.000

Total 100703.000 2.828.100.000





11. GENERAL AND ADMINISTRATIVE EXPENSE


Salary

Office rent and housing

Travelling

Depreciation

Legal and Consultan expense

Others below than Rp 50.000.000

Total

12. RESPONSIBILITY OF FINANCIAL STATEMENTS

2016 2015

977.800.000

120.000.000

279.764.703

25.908.613

738.741.500

876.541.776

1.025.567.000

120.000.000

177.404.545

68.895.280

149.002.225

879.371.651

3.0't 8.756.592 2.420.240.701

The Company Management is responsible for preparing the financial statements as of December 31, 2016 and 2015.

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