4 BCTC soat xet ban nien 2015 (Hop nhat) EN.compressed

VietnamSTATEMENT OF THE BOARD OF DIRECTORSThe Board of Directors of Phu Nhuan Jewelry Joint Stock Company the "Parent Company" and subsidiaries theParent Company and its subsidiaries are

(Incorporated in the Socialist Republic of Vietnam)

For the period from 1 January 2015 to 30 June 2015

TABLE OF CONTENTS

Ho Chi Minh City, S.R Vietnam

STATEMENT OF THE BOARD OF DIRECTORSThe Board of Directors of Phu Nhuan Jewelry Joint Stock Company (the "Parent Company") and subsidiaries (theParent Company and its subsidiaries are collectively referred to as the "Company") presents this report togetherwith the Company's consolidated financial statements for the period from I January 20 IS to 30 June 20 IS

The members of the Boards of Management and Directors of the Company who held office during the period and

to the date of this report are as follows:

Board of Directors

Ms Cao Thi Ngoc Dung

Mr Nguyen Vu Phan

Ms Nguyen Thi Cue

Mr Nguyen Tan Quynh

Ms Nguyen Thi Bich Ha

Ms Ph am Vu Thanh Giang

Mr Andy Ho

Mr Ph am Quoc Cong

ChairwomanVice ChairmanMemberMemberMemberMemberMemberMember (appointed on IS April 2015)Board of Management

Ms Cao Thi Ngoc Dung

BOARD OF DIRECTORS' STATEMENT OF RESPONSIBILITY

The Board of Directors of the Company is responsible for preparing the consolidated financial statements, whichgive a true and fair view of the consolidated financial position of the Company and of its consolidated results andconsolidated cash flows for the year in accordance with Vietnamese Accounting Standards, accounting regime forenterprises and legal regulations relating to financial reporting In preparing these consolidated financialstatements, the Board of Directors is required to:

• Select suitable accounting policies and then apply them consistently;

• Make judgments and estimates that are reasonable and prudent;

• State whether applicable accounting principles have been followed, subject to any material departuresdisclosed and explained in the consolidated financial statements;

• Prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presumethat the Company will continue in business; and

• Design and implement an effective internal control system for the purpose of properly preparing andpresenting the consolidated financial statements so as to minimize errors and frauds

The Board of Directors is responsible for ensuring that proper accounting records are kept, which disclose, withreasonable accuracy at any time, the consolidated financial position of the Company and that the consolidatedfinancial statements comply with Vietnamese Accounting Standards, accounting regime for enterprises and legalregulations relating to financial reporting The Board of Directors is also responsible for safeguarding the assets ofthe Company and hence for taking reasonable steps for the prevention and detection of frauds and otherirregularities

ST A TEMENT OF THE BOARD OF DIRECTORS (Continuted)

The Board of Directors confirms that the Company has complied with the above requirements in preparing these

consolidated financial statements

18 Floor, Times Square Building, 22-36 Nguyen Hue Street, District 1

Ho Chi Minh City, Vietnam Tel: +848 3910 0751Fax: +84839100750www.deloitte.comlvn

No ;t2V /VN1A-HC-BC

To: The shareholders, Boards of Management and Directors of

Phu Nhuan Jewelry Joint Stock Company

We have reviewed the accompanying consolidated balance sheet as at 30 June 2015, the related consolidatedstatements of income and cash flows for the period from I January 2015 to 30 June 2015 and the notes thereto(collectively referred to as the "consolidated financial statements") of Phu Nhuan Jewelry Joint StockCompany (the "Parent Company") and subsidiaries (the Parent Company and its subsidiaries are collectivelyreferred to as the "Company") prepared on 28 August 2015 as set out from page 4 to page 33 The preparation

of these consolidated financial statements is the responsibility of the Company's Board of Directors Ourresponsibility is to issue a review report on these consolidated financial statements based on our review

We conducted our review in accordance with Vietnamese Standard on Auditing No 910 - Engagements toreview financial statements This Standard requires that we plan and perform the review to obtain moderateassurance as to whether the consolidated financial statements are free of material misstatements A review islimited primarily to inquiries of the Company's personnel and analytical procedures applied to financial dataand thus provides less assurance than an audit We have not performed an audit and, accordingly, we do notexpress an audit opinion

Based on our review, nothing has come to our attention that causes us to believe that the accompanyingconsolidated financial statements do not give a true and fair view of, in all material respects, the consolidatedfinancial position of the Company as at 30 June 2015, the consolidated results of its operations and its cashflows for the period from I January 2015 to 30 June 2015 in accordance with Vietnamese AccountingStandards, accounting regime for enterprises and legal regulations relating to financial reporting

Other Matter

The Company's financial statements for the period from I January 2014 to 30 June 2014 and the year ended

31 December 2014 were reviewed and audited by another audit company The review report dated 28 August

auditors' report dated 30 March 2015 expressed unqualified conclusion and

For and on behalf of

Deloitte Vietnam Company Limited

28 August 2015

Ho Chi Minh City, S.R Vietnam

Tran Thi Kim KhanhAuditor

Audit Practising Registration Certificate

No 0395-20\3-001-\

DeIoitte refers to one or more of Deloitte Touche Tohmatsu limited, a UK private company limited by

guarantee ("DTTL"), its network of member firms, and their related entities DTTL and each of its member

firms are legally separate and independent entities DTTL (also referred to as "Deloitte Global") does not

provide services to dients Please see www.deloitte.com/about for a more detailed description of DTTL

and its member firms.

3

CONSOLIDATED BALANCE SHEET

As at 30 June 2015

FORM B Ola-DN/HN

Unit: VND

3 Taxes and other receivables from the State budget 153 12 4,369,872,019 4,653,263,806

2 Equity invesments in other entities 253 17 460,65 1,988,400 460,65 1,988,400

3 Provision for impairment oflong-term fmancial investments 254 6 (141,196,363,400) (10,309,113,400)

CONSOLIDATED BALANCE SHEET (Continuted)

I Short-term trade payables 311 19 151,777,545,465 140,059,263,813

2 Short-term advances from customers 312 72,728,694,012 10,577,252,253

3 Taxes and amounts payable to the State budget 313 12 28,996,943,515 45,893,557,644

4 Payables to employees 314 21,035,970,710 27,640,951,586

5 Short-term accrued expenses 315 9,355,014,140 4,188,467,510

6 Other current payables 319 20 100,851,376,270 27,252,893,412

7 Short-term loans and obligations under finance leases 320 21 1,444,061,288,072 1,131,686,128,041

8 Bonus and welfare funds 322 18,374,256,761 7,266,433,421

n. Long-term liabilities 330 185,837,529,100 137,584,382,100

I Other long-term payables 337 20 295,029,100 455,382,10O

2 Long-term loans and obligations under finance leases 338 22 185,542,500,000 137,129,000,000

D. EQUITY 400 1,276,321,475,321 1,296,522,811,569

L Owners' equity 410 23 1,276,321,475,321 1,296,522,811,569

I Owners' contributed capital 411 755,970,350,000 755,970,350,000

2 Share premium 412 105,021,650,000 105,021,650,000

3 Treasury shares 415 (7,090,000) (7,090,000)

4 Investment and development fund 418 265,805,050,783 232,805,050,783

5 Retained earnings 421 149,531,514,538 202,732,850,786

- Retained earnings accumulated to the prior year end 4210 40,870,441,986 56,288,679,184

- Retained earnings of the current period 421b 108,661,072,552 146,444,171,602

CONSOLIDATED INCOME STATEMENTFor theperiodfrom 1 January 2015 to 30 June 2015

18 Profit after corporate income tax(60=50-51-52) 60

Attributable to

19 Basic earnings per share 70 33

Duong Quang Hai

The notes set out on pages 8 to 33 are an integral part of these consolidated financial statements

6

CONSOLIDATED CASH FLOW STATEMENTFor the periodfrom IJanuary 2015 to 30 June 2015

FORM B 03a-DN/HN

Unit VNDFrom 01/0112015 From 01101/2014

I CASH FLOWS USED IN OPERATING ACTIVITIES

1 Profit before tax 01 140,715,687,907 184,481,381,740

2 Adjustments for:

Depreciation and amortization 02 14,615,112,401 16,413,752,904

Unrealized foreign exchange loss 04 647,492,581

Gain from investing activities 05 (749,705,003) (11,490,675,576)

Interest expense 06 36,777,505,139 40,758,353,654

3 Operating profit before movements in working

08 315,141,124,366 230,162,812,722capital

Decrease in account receivables 09 4,338,345,163 6,259,915,570

Increase in inventories 10 (588,973,032,632) (156,491,336,675)

Increase/(decrease) in account payables II 64,538,274,733 (J 8,627, 191,883)

Increase in prepaid expenses 12 (J ,634,843,967) (2,735,531,137)

Interest paid 14 (35,453,096,521 ) (36,887,421,057)

Corporate income tax paid 15 (48,884,570,196) (5 I,236, I59,886)

Other cash outflows 17 (26,377,882,405) (15,786,454, I 50)

Net cash used in operating activities 20 (317,305,681,459) (45,341,366,496)

II CASH FLOWS (USED IN)/FROM INVESTING

I Acquisition of fixed assets and other long-term assets 21 (35,279,492,703) ( 18,350,659,384)

2 Proceeds from disposal of fixed assets 22 154,545,455

3 Cash recovered from lending, selling debt instruments of

other entities

4 Interest earned, dividends and profits received 27 52,684,494 14,845,199,626

Net cash (used in)lfrom investing activities 30 (35,072,262,754) 3,994,540,242 .~

(50=20+30+40)

Cash at the beginning of the period 60 53,915,192,251

Cash at the end of the period (70=50+60) 70 62,730,514,007

Dang Thi LaiChief Accountant

The notes set out on pages 8 to 33 are an integral part a/these consolidatedfinancial statements

7

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FORM B 09a-DN/HN

These notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements

Phu Nhuan Jewelry Joint Stock Company (the "Parent Company") was incorporated as a joint stockcompany under the Business Registration Certificate No 0300521758 dated 2 January 2004 issued bythe Department of Planning and Investment ofHo Chi Minh City, as amended

The Company has been listed on the Ho Chi Minh City Stock Exchange ("HOSE") on 23 March 2009pursuant to the Decision No I291DKNY issued by the General Director of HOSE on 26 December 2008.The number of employees as at 30 June 2015 was 3,061 (as at 31 December 2014: 2,494)

Operating industry and principal activities

The Company's principal activities are to trade gold, silver, jewelry and gemstones, and to import andexport jewelry in gold, silver and gemstones

Normal production and business cycle

The Company's normal production and business cycle is carried out for a time period of no more than 12months

The Company's structure

The Parent Company's head office is located at 170 Phan Dang Luu Street, Ward 3, Phu Nhuan District,

Ho Chi Minh City, Vietnam In addition, the Company also has one hundred and seventy-eight (178)retail shops located in various provinces and cities in Vietnam

As at 30 June 2015, the Company's subsidiaries and associates were:

- CAO Fashion Company Limited - Subsiadiary

- PNJ Laboratory Company Limited - Subsiadiary

- Dong A Land Joint Stock Company- Associate

As at 30 June 2015, the Parent Company also had ninety seven (97) branches located in variousprovinces and cities in Vietnam, in which the big branches were:

- Branch ofPhu Nhuan Jewelry Joint Stock Company- Bien Hoa Branch

- Branch of Phu Nhuan Jewelry Joint Stock Company- Hue City

- Branch of Phu Nhuan Jewelry Joint Stock Company- Vinh Long Branch

- Branch of Phu Nhuan Jewelry Joint Stock Company- Nha Trang Branch

- Branch of Phu Nhuan Jewelry Joint Stock Company- Da Nang Branch

- Branch of Phu Nhuan Jewelry Joint Stock Company- Ha Noi Branch

- Branch of Phu Nhuan Jewelry Joint Stock Company- Can Tho Branch

- Branch ofPhu Nhuan Jewelry Joint Stock Company- Buon Ma Thuot BranchDisclosure of information comparability in the consolidated financial statements

As stated in Note 3, since 1 January 2015, the Company has adopted Circular No 200/2014/TT-BTCissued by the Ministry of Finance on 22 December 2014 ("Circular 200") guiding the accounting regimefor enterprises and Circular No 202/2014fTT-BTC issued by the Ministry of Finance on 22 December

2014 ("Circular 202") guiding the preparation and presentation of consolidated financial statements.Circular 200 supersedes the regulations for accounting regime promulgated under Decision No.15/2006/QD-BTC dated 20 March 2006 issued by the Ministry of Finance and Circular No.244/2009fTT-BTC dated 31 December 2009 issued by the Ministry of Finance Circular 202 supersedessection XIIl in Circular No 161/2007/TT-BTC dated 31 December 2007 of the Ministry of Financeguiding the preparation and presentation of consolidated financial statements in accordance withVietnamese Accounting Standard No 25 "Consolidated Financial Statements and Accounting forInvestments in Subsidiaries" Accordingly, certain figures of the consolidated balance sheet and cashflow statement of previous period are reclassified to be adopted to be comparability of the figures of thecurrent period (see the Note 39)

8

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09a-DN/HN

These notes are an integral part 0/and should be read in conjunction with the accompanying consolidatedjinancial statements

Accounting convention

The accompanying consolidated financial statements, expressed in Vietnam Dong ("VND"), areprepared under the historical cost convention and in accordance with Vietnamese Accounting Standards,accounting regime for enterprises and legal regulations relating to financial reporting

The accompanying consolidated financial statements are not intended to present the financial position,results of operations and cash flows in accordance with accounting principles and practices generallyaccepted in countries and jurisdictions other than Vietnam

Accounting period

The Company's financial year begins on I January and ends on 31 December The interim consolidatedfinancial statements are prepared for the period from I January to 30 June annually

On 22 December 2014, the Ministry of Finance issued Circular No 200/2014/TT-BTC ("Circular 200")guiding the accounting regime for enterprises and Circular No 202/20 14/TT-BTC (Circular 202) guidingthe preparation and presentation of consolidated financial statements These circulars are effective forfinancial years beginning on or after 0 I January 2015 Circular 200 supersedes the regulations foraccounting regime promulgated under Decision No 15/2006/QD-BTC dated 20 March 2006 issued bythe Ministry of Finance and Circular No 244/20091TT-BTC dated 31 December 2009 issued by theMinistry of Finance Circular 202 will supersede section XIII in Circular No 161/2007 ITT -BTC dated

3 I December 2007 of the Ministry of Finance guiding the preparation and presentation of consolidatedfinancial statements in accordance with Vietnamese Accounting Standard No 25 "ConsolidatedFinancial Statements and Accounting for Investments in Subsidiaries" The Board of Directors hasadopted Circular 200 in the preparation and presentation of the consolidated financial statements for theperiod from I January 2015 to 30 June 2015

4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Parent Company andenterprises controlled by the Parent Company (its subsidiaries) up to 31 December each year Control isachieved where the Company has the power to govern the financial and operating policies of an investeeenterprise so as to obtain benefits from its activities

The results of subsidiaries acquired or disposed of during the year are included in the consolidatedincome statement from the effective date of acquisition or up to the effective date of disposal, asappropriate

9

Ho Chi Minh City, S.R Vietnam

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09a-DNfHN

These notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting

policies used in line with those used by the Company

Intragroup transactions and balances are eliminated in full on consolidation

Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the

parent's ownership interests in them Non-controlling interests consist of the amount of those

non-controlling interests at the date of the original business combination (see below) and the non-controlling

interests' share of changes in equity since the date of the combination Losses in subsidiaries are

respectively attributed to the non-controlling interests even if this results in the non-controlling interests

having a deficit balance

Business combinations

On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their

fair values at the date of acquisition Any excess of the cost of acquisition over the fair values of the

identifiable net assets acquired is recognised as goodwill Any deficiency of the cost of acquisition below

the fair values of the identifiable net assets acquired is credited to profit and loss in the period of

acquisition

The non-controlling interests are initially measured at the non-controlling shareholders' proportion of the

net fair value of the assets, liabilities and contingent liabilities recognised

Investments in associates

An associate is an entity over which the Parent Company has significant influence and that is neither a

subsidiary nor an interest in joint venture Significant influence is the power to participate in the financial

and operating policy decisions of the investee but not control or joint control over those policies

The results and assets and liabilities of associates are incorporated in these consolidated financial

statements using the equity method of accounting Interests in associates are carried in the consolidated

balance sheet at cost as adjusted by post-acquisition changes in the Parent Company's share of the net

assets of the associate Losses of an associate in excess of the Parent Company's interest in that associate

(which includes any long-term interests that, in substance, form part of the Company's net investment in

the associate) are not recognised

0111

THAI

- P.~Q:

=-Where a group entity transacts with an associate of the Parent Company, unrealised profits and losses are

eliminated to the extent of the Parent Company's interest in the relevant associate

Initial recognition

Financial assets: At the date of initial recognition, financial assets are recognised at cost plus transaction

costs that are directly attributable to the acquisition of the financial assets Financial assets of the

Company comprise cash, trade and other receivables, deposits, financial investments

Financial liabilities: At the date of initial recognition financial liabilities are recognised at cost plus

transaction costs that are directly attributable to the issue of the financial liabilities Financial liabilities of

the Company comprise trade and other payables, accrued expenses and borrowings

Subsequent measurement after initial recognition

Currently, there are no requirements for the subsequent measurement of the financial instruments after

initial recognition

10

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09a-DN/HN

These notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements

Held-to-maturity investments are recognised on a trade date basis and are initially measured atacquisition price plus directly attributable transaction costs Post-acquisition interest income from held-to-maturity investments is recognised in the consolidated income statement on accrual basis Pre-acquisition interest is deducted from the cost of such investments at the acquisition date

Held-to-maturity investments are measured at cost less provision for doubtful debts

Provision for doubtful debts relating to held-to-maturity investments is made In accordance withprevailing accounting regulations

Other long-term investments

Other long-term investments are investments in other entities which the Company owns less than 20%voting rights and does not have significant influence, with maturity over I year Other long-terminvestments are recorded at the starting date of acquisition and the initial value are determined based onthe cost and other cost related to the investments In the next fiscal year, the other long-term investments

is determined at cost less the impairment in value of investments

Provisions for impairment of investments

Provisions for impairment of investments in subsidiaries, joint ventures and associates are made inaccordance with Circular No 228/20091TT-BTC dated 7 December 2009 issued by the Ministry ofFinance on "Guiding the appropriation and use of provisions for devaluation of inventories, loss offinancial investments, bad debts and warranty for products, goods and construction works at enterprises",Circular No 89/20131TT-BTC dated 28 June 2013 by the Ministry of Finance amending andsupplementing Circular No 228120091TT-BTC and prevailing accounting regulations

Inventories

Inventories are stated at the lower of cost and net realisable value Cost comprises direct materials andwhere applicable, direct labour costs and those overheads that have been incurred in bringing theinventories to their present location and condition Cost is calculated using the weighted average method.Net realisable value represents the estimated selling price less all estimated costs to completion and costs

to be incurred in marketing, selling and distribution

The evaluation of necessary provision for inventory obsolescence follows current prevailing accountingregulations which allow provisions to be made for obsolete, damaged, or sub-standard inventories andfor those which have costs higher than net realisable values as at the consolidated balance sheet date

II

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09a-DN/HN

These notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements

Tangible assets and amortisation

Tangible fixed assets are stated at cost less accumulated depreciation The costs of purchased tangiblefixed assets comprise their purchase prices and any directly attributable costs of bringing the assets totheir working condition and location for their intended use

Tangible fixed assets are depreciated using the straight-line method over their estimated useful lives asfollows:

Buildings and structures

Machinery and equipment

Intangible assets and amortisation

Intangible assets represents the value of computer software that is stated at cost less accumulatedamortisation and is amortized on the straight-line basis over their estimated useful lives of 3 years

Land use rights is recorded as an intangible asset on the consolidated balance sheet when the companyreceived the certificate of land use rights The history cost of the land use rights comprises all directlyattributable costs of bringing the land lot to the condition available for intended use and is not amortizedbecause the land use rights have long usage time

Construction in progress

Properties in the course of construction for selling, are carried at cost Cost includes land use rights andconstruction cost for trade centers and stores in accordance with the Company's accounting policy.Depreciation of these assets is applied on the same basis as other assets, commences when the assets areready for their intended use

Prepayments include short-term prepayments or long-term prepayments on the interim consolidated ~balance sheet and are amortised over the period for which the amounts are paid or the period in whicheconomic benefits are generated in relation to these expenses

Long-term prepaid expenses comprise:

- Prepaid rental includes land and shop rental prepaid for many years under operating leases contractswhich are amortized over the lease term;

- Tools and comsumables with large value issued in use which can be used for more than one year; and

- Others which are amortized to the consolidated income statement over 2 to 3 years

Borrowing costs

Interest expense includes interest and other costs incurred related to the loans of the Company and arerecorded to the expenses incurred during the period

Revenue recognition

Revenue from the sale of goods is recognised when all five (5) following conditions are satisfied:

(a) the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;(b) the Company retains neither continuing managerial involvement to the degree usually associated withownership nor effective control over the goods sold;

12

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09a-DN/HN

These notes are an integral part of and should be read in conjunction with the accompanying consolidatedjinancial statements

(c) the amount of revenue can be measured reliably;

(d) it is probable that the economic benefits associated with the transaction will flow to the Company;

and

(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably

Revenue of a transaction involving the rendering of services is recognised when the outcome of such

transactions can be measured reliably Where a transaction involving the rendering of services is

attributable to several periods, revenue is recognised in each period by reference to the percentage of

completion of the transaction at the consolidated balance sheet date of that period The outcome of a

transaction can be measured reliably when all four (4) following conditions are satisfied:

(a) the amount of revenue can be measured reliably;

(b) it is probable that the economic benefits associated with the transaction will flow to the Company;

(c) the percentage of completion of the transaction at the consolidated balance sheet date can be

measured reliably; and

(d) the costs incurred for the transaction and the costs to complete the transaction can be measured

The Company applies the method of recording foreign exchange differences in accordance with

Vietnamese Accounting Standard No I0 (VAS 10) "Effects of changes in foreign exchange rates" and

Circular 200/2014/TT-BTC ("Circular 200") guiding accouting regime for enterprises Accordingly,

transactions arising in foreign currencies are translated at exchange rates ruling at the transaction date

The balances of monetary items denominated in foreign currencies as at the consolidated balance sheet

date are retranslated at the exchange rates on the same date Exchange differences arising from the

translation of these accounts are recognised in the consolidated income statement Unrealised exchange

gains as at the consolidated balance sheet date are not treated as part of distributable profit to

Payable provisions are recognised when the Company has a present obligation as a result of a past event,

and it is probable that the Company will be required to settle that obligation Provisions are measured at

the Board of Directors' best estimate of the expenditure required to settle the obligation as at the

consolidated balance sheet date

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax

The tax currently payable is based on taxable profit for the period Taxable profit differs from net profit

as reported in the consolidated income statement because it excludes items of income or expense that are

taxable or deductible in other periods (including loss carried forward, if any) and it further excludes

items that are never taxable or deductible

Deferred tax is recognised on significant differences between carrying amounts of assets and liabilities in

the consolidated financial statements and the corresponding tax bases used in the computation of taxable

profit and is accounted for using balance sheet liability method Deferred tax liabilities are generally

recognised for all temporary differences and deferred tax assets are recognised to the extent that it is

probable that taxable profit will be available against which deductible temporary differences can be

utilised

13

Ho Chi Minh City, S.R Vietnam For the period from I January 2015 to 30 June 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09a-DN/HN

These notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is

settled or the asset realised Deferred tax is charged or credited to profit or loss, except when it relates to

items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax

assets against current tax liabilities and when they relate to income taxes levied by the same tax authority

and the Company intends to settle its current tax assets and liabilities on a net basis

The determination of the tax currently payable is based on the current interpretation of tax regulations

However, these regulations are subject to periodic variation and their ultimate determination depends on

the results of the tax authorities' examinations

Other taxes are paid in accordance with the prevailing tax laws in Vietnam

5 CASH

30/6/2015VND

3111212014VNDCash on hand

Cash in bank

Cas h in trans its

19,568,922,9525,924,298,0231,165,590,000

29,251,327,4866,653,427,7101,80I,316,00026,658,810,975 37,706,071,196

As at 31 December 2014, cash equivalents are reclassified to inventories in accordance with guidance of

Circular 200/20 14/TT-BTC of the Ministry of Finance dated 22 December 2014 with an amount of VND

(*) On 14 August 2015, the State Bank of Vietnam decided to put Dong A Commercial Joint Stock Bank

under special control However, the Board of Directors believes that the Company made provision for

impairment of investment in this bank fully and in accordance with current accounting regulations as at

the consolidated balance sheet date

7 SHORT-TERM TRADE RECEIVABLES

30/6/2015VND

3111212014VNDShort-term trade receivables

- ToTal Gaz Vietnam Limited

- FH Trautz GmBh

- Others

40,815,583,54413,274,137,7024,984,961,80322,556,484,039

43,282,823,37013,274,137,7024,084,326,48025,924,359,18840,815,583,544 43,282,823,370

14

Ho Chi Minh City, S.R Vietnam For the period from I January 2015 to 30 June 2015NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09a-DN/HN

These notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements

8 OTHER RECEIVABLES

30/6/2015VND

a Short-term receivables

- Advances to employees

- Others

1,287,542,0968,288,637,9459,576,180,041

b Long-term receivables

- Long-term depos its to rent the stores

31112/2014VND

644,633,05518,714,129,13219,358,762,187

19,269,648,454

' ' ' -19,269,648,454

13,588,573,99613,588,573,996

9 DEFICITS IN ASSSETS A WAITING SOLUTION

I13,048,056,448151,462,754,0171,855,240,781,17216,806,830,0462,260,987,893,633

31112/2014VND608,973,823100,732,561,18119,923,350,233147,201,507,351129,280,128,3001,274,268,340,1131,672,014,861,001

As at 30 June 2015, inventories of VND 964,000,000,000 (as at 31 December 2014: VND570,000,000,000) was used as collateral for short-term loans obtained from commercial banks (Note 21)

15