Phu Nhuan Jewelry Joint Stock CompanyInterim consolidated financial statements 30 June 2012... Phu Nhuan Jewelry Joint Stock CompanyCONTENTS General information Reportof management Repor
Trang 1Phu Nhuan Jewelry Joint Stock Company
Interim consolidatedfinancial statements
30 June 2012
Ernst & Young
Trang 2Phu Nhuan Jewelry Joint Stock Company
Interim consolidated financial statements
30 June 2012
Trang 3Phu Nhuan Jewelry Joint Stock Company
CONTENTS
General information
Reportof management
Report on review of interim consolidated financialstatements
Interim consolidated balance sheet
Interim consolidated income statement
Interim consolidatedcash flow statement
Notes to the interimconsolidated financial statements
Pages
1234-567-8
9-43
Trang 4appointedon 14 April2012appointed on14 April2012appointedon 14 April2012appointed on 14 April2012
GENERAL INFORMATION
TH E COMPANY
Phu Nhuan Jewelry Joint Stock Company ("the Company") is a shareholding company incorporated
under th Lawon Enterprise of Vietnam pursuant 10 BusinessRegistrationCertificateNo.0300521758issued by the Department of Planning and Investment of Ho Chi Minh City on 2 January 2004, as
a mended
The Company was officially listedon the Ho Chi Minh City Stock Exchange ("HOS e" ) from 23 March
2009 pursuant to Decision No 129/DKNY issuedbythe General Director of HOSE on 26 December
BOAR D O F DIR ECTORS
MembersoftheBoard of Dir ctorsduringthe periodand at thedateof this reportare:
Mrs CaoThi NgocDung Chairwoman
Mr Nguyen Tuan Quynh Member
Mrs.NguyenThiBich Ha Member
Mrs.Pharo Vu ThanhGiang Member
B OARD OF SUPERVIS ION
Membersof theBoard of Supervision duringthe periodand at the date of thisreport are:
Mr.PhamVan Tan
Mrs.Nguyen NgocHue
Mr.TranVan Dan
MANAGEMENT
Headof theBoard of SupervisionMember
Member
Members ofthe Manageme nt during the periodandat the date of this reportare:
Mrs.Cao ThiNgocDung
Mr.L HuuHanh
Mrs.NguyenThiCuc
Mr.NguyenTuan Quynh
Mr.Nguyen Vu Phan
Mrs.PhamThiMyHanh
L EGAL RE PRES ENTATIV E
GeneralDirectorDeputy GeneralDirectorDeputyGeneralDirectorDeputyGeneralDirectorDeputy GeneralDirectorDeputyGeneralDirector appointedo 1 April2012
The legalreprese tativeofthe Companyduring theperiod and atthe date ofthisreport is Mrs.Cao ThiNgocDung
AUDITORS
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REPORT OFMANAGEMENT
Management of Phu NhuanJewelry JointStockCompany(the Company" is pleased to presentitsreport and the interim consolidated financial statements of the Company and its subsidiaries ("theGroup")for the six-monthperiod ended 30 June 2012
MANAGEMENT'S RESPONSIBILITY IN RESPECT OF THE INTERIM CONSOLIDATEDFINANCI AL STATEMENTS
Management is responsiblefor the interim consolidatedfinancialstatementsofeachfinancialperiodwhich give a true and fair view of the interim consolidated state of affairs of the Group and of theinterimconsolidatedresults of its operationsand itsinterim consolidated cash flows for the period.Inpreparing thoseinterim consolidatedfinancialstatements,management is required to:
selectsuitable accountingpoliciesandthen apply them consistently;
make judgementsandestimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any materialdeparturesdisclosedandexplainedin the interimconsolidated financialstatements;and
prepare the interim consolidated financial statements on the going concern basis unless it isinappropriate to presume that the Group will continue its business
Management is responsible for ensuring that proper accounting records are kept which disclose,withreasonableaccuracyat any time,theinterim consolidatedfinancial positionof heGroupand toensurethatthe accounting records complywith the appliedaccountingsystem.It isalsoresponsibleforsafeguardingtheassets of the Group and hencefortaking reasonable steps for the preventionand detectionof raudandother irregularities
Management confinmed that it has complied with the above requirements in preparing theaccompanyinginterimconsolidatedfinancialstatements
STATEMENT BY MANAG EMENT
Managementdoeshereby state that,inits opinion, he accompanyinginterimconsolidated financialstatementswhichgivea true andfair viewof the interimconsolidatedfinancialpositionof theGroup
as at 30 June 2012 and of the interim consolidated results of its operations and its interimconsolidated cash flows for the six-month period then ended in accordance with the VietnameseAccountingStandards and System andcomply with relevantstatutory requirements
nagement:
29 August 2012
Trang 6IIIIIIIIIIIIIIIIIIIIIIIIIIII""""E!J ERNST & YOUNG
Refere nce :60984885/ 15611643
Ernst & Young Vietnam Lim ited
BitexcoFinancial Tower 28th Floor 2 Hal Trieu Street District 1 Ho Chi Minh City,S.R.of Vietnam
T e l: +84 8 3824 5252 Fax: +8 4 8 3824 5250
ww w.ey.com
REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL
STATEMENTS
To: The Shareholders of Phu Nhuan JewelryJointStockCompany
Wehave reviewedthe interim consolidated financial statementsofPhuNhuan Jewelry jointStock
Company("theCompany")and its subsidiaries(the Group") as set outon pages 4 to 43 which
comprise the interim consolidated balance sheetas at30 June 2012, and the interim consolidated
income statement and the interim consolidated cash fiow statement for the six-month period then
ended and the notes thereto
The preparation and presentationof these interim consolidated financial statements are the
responsibilityof the Group's management Our responsibility is to issue a report on theseinterim
consolidatedfinancial statements based on our review.TheGroup's consolidated financial
statementsfor the year ended 31 December 2011 were auditedby another auditorwhose report
dated8 March 2012,expressed an unqualifiedopinionon those stateme nts.The Group'sinterim
consolidated income statemen tandthe interimconsolidatedcashflow statementforthesix-month
period ended 30June20 11were also reviewed by the same auditorwho issued anunqualified
report on those statements dated 15 August 2011
We conducted our reviewin accordance with Vietnamese Standard on AuditingNo.910
-Engagements to ReviewFinancial Statements.This standard requires that we planand perform the
reviewto obtainmoderate assurance as to whether theinterim consolidated financial statements arefree from material misstatement A review is limited primarily to inquiriesof the Group'spersonnel
and analytical procedures applied to financial data andthus providesless assurancethan an audit
We have not performed an auditand,accordingly, wedonot expressa audit opinion
Limited
Mai VietHung Tran
DeputyGeneralDirector
CertificateNo.D.0048/KTV
Le Quang MinhAuditor
CertificateNo.0426/KTV
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INTERIM CONSOLIDATEDBALANCESHEET
112 2 Cashequivalents 279,475,688,995 371,381,237,854
120 II Short-term investment 105,000,000,000 70,000,000,000
221 1 Tangible fixedassets 9 97,072,453,08 0 114,426,075,356
223 Accumulateddepreciation (94,352,964,373) (86,734,579,470)
227 2 Intangiblefixed assets 10 279,136,312,785 279,199,924,767
230 3 Construction inprogress 11 62,238,855,790 25,951,684,133
250 II Long-term investments 12 754,140,655,700 712,435,781,858
252 1 Investmentsin associates 251,699,247,300 258,315,155,708
258 2 Other long-term
259 3 Provisionfor long-term
investments (10,800,000,000) (21,124,532 ,250)
260 III Other long-term assets 173,486,064,826 191,061,695,518
261 1 Long-termprepaid
262 2 Deferredtaxassets 28.3 1,047,208,042 919,152,184
268 3 Other long-term assets 195,000,000 1,514,044,2 4
Trang 8Phu Nhuan Jewelry Joint Stock Company B01a-DN/HN
IN TERIM CONSOLIDAT ED BA L ANC E S HEET (co ntinued )
as a t 30 J une 20 12
VND
310 I Curr ent l iabilities 1,492,461,243,253 973,411 ,782,490
31 1 1 Short -term l oans 14 1,275,823,892,914 604,356,835,868
312 2 T rade payab les 1 59,824,488 ,894 123,648,989,802
313 3 A dvances from c ustomers 1 39,834,592,55 0 1 ,271,763,272
314 4 S tatutory ob ligations 17 38,344,494,685 29,561,163,550
3 15 5 Paya bles t o employees 1 ,057,919,426 46,402,734 ,297
316 6 A ccrued expe nses 18 5, 717,949 ,209 8,431,746,109
319 7 O ther p ayables 19 22,897,683,8 08 133,760,429,404
323 8 B onus a nd we lfare fu nd 38,960,221,767 16,978,120,188
330 II Non -current liabilities 85,42 0,335,167 797,612,458,648
333 1 O ther l ong-term li abilit ies 20 59,046,698,861 62,532,121,564
OFF BALANCE SHEET ITEM
F oreign currencies :
Un ited States do llar ("US$")
A ustralian do llar ("AUD")
Go ldtaels
~
~
5,675,227 39,999 6,816
Trang 9Phu Nhuan Jewelry Joint Stock Company
INT ER IM CONSOLIDATEDINCO MESTATEME NT
for the six-m onth period ended 30 June 2012
B02a-DN/HN
gg
VND For the six-month For the six-month Code ITEMS Notes 30 June 2012 period ended 30 June period ended 2011
01 1 Revenue from sale of goods and
rendering of serv ices 23.1 3,688,975,600,364 8,313,631,621,873
10 3 Net revenue from saleof goods
and rendering of services 23.1 3,661,957,398,667 8,279,681,719,382
11 4 Cost of goods sold and services
rendered 24 (3,331,934,028,293) (7,914,359,Q54,812)
20 5 Gross profit from sale of goods
and rendering of services 330,023,370,374 365,322 ,664,570
45 14 Share of profit of associates 3,653,507,569 4,218,737 ,060
51 16 Current corporate income tax
52 17 Deferred income tax income 28.3 128,055,858 95,896 ,171
60 18 Net profit after tax 131,908,426 ,743 147,918 ,758 ,920
Trang 10Phu Nhuan Jewelry Joint Stock Company
INTERIMCONSOLIDATEDCASHFLOW STAT EMENT
forthe six-month periodended 30 June 201
B03a-DN/HN
VND For the six-month For the six-month Code ITEMS Notes 30 June 2012 period ended 30 June 2011 period ended
I CASH FLOWS FROM
08 Operatingprofit before changes
09 Increase inreceivables (3,804,599,684) (56,526,754,021)
10 Decrease (increase) in
11 Decrease inpayables (143,986,623,105) (44,874,894,759)
12 Decrease in prepaid expenses 4,517,579,545 19,734,646 ,243
14 Corporate income tax paid 28.2 (11,623,170,185) (43,958,427,440)
16 Othercashoutflowsfrom
27 Interestanddividends received 44,055,339,531 23,312,168,607
30 Net cash flows used in investing
III CASH FLOWS FROM
FINANCINGACTIVITIES
40 Net cash flows (used in) from
Trang 11Phu Nhuan Jewelry Joint Stock Company B03a-D N/HN
INTERIMCONSOLIDATEDCASHFLOW STAT EMENT(continued)
for the six-month period ended 30 June 2012
VND For the s ix-month For the si x -month
period ended period ended
50 Net (decrease) increase incash
60 Cash and cash equivalents at
beginningof period 454,113,948,194 337,769,093 ,757
70 Cashand cash equivalents at
Dang Thi Lai
Chief Accounta nt
29 August2012
Trang 12Phu Nhuan J ewelry Joint Sto ck Company
NOTES TOTHEINTERIM CONSOLIDATEDFINANCIALSTATEMENTS
a at and forthesix-monthperiodended30 June 2012
1 CORPORATE INFORMATION
B09a-DN/HN
Phu Nhuan Jewelry Joint Stock Company ("the Company") is a shareholding company
Incorporated under the Law on Enterprise of Vietnam pursuant to Business Registration
Certificate No.0300521758issued by theDepartmentof PlanningandInvestmentofHo Chi
MinhCityon 2 January2004,as amended
TheCompanywas officiallylisted ontheHo Chi Minh CityStockExchange ("HOSE")from
23 March 2009 pursuant to Decision No 129/DKNY issued by the General Director ofHOSEon 26December 2008
Theprincipal activities of theCompanyandits subsidiaries(theGroup")are to trade gold,silver,jewelry and gemstones,toimport andexport jewelryin gold,silverand gemstones,to
tradegasoline,gas cookers, oproduct andtrade fashion products,silver and goldjewelery,
andto providejewelery inspectionandconsultancyservices
The Company'sregistered heado ffice islocated atHOE Phan Dang Luu Street PhuNhuan
District, Ho Chi Minh City,Vietnam Inaddition, the Company has one hundred andthirtyone (131) retailshopslocatedinvariousprovinces in Vietnam
The number of the Group'semployeesas at 30 June 2012 was 2,762(31 December2011:
2,745)
Corporate structure
TheCompany'scorporatestructure includes threesubsidiaries,inwhich:
Dai Viet Energy Joint Stock Company ("DVC") is a shareholding company established inaccordance with Business Registration Certificate No 4103007071 issued by theDepartment of Planning and Investment of Ho Chi Minh City on 21 June 2007 DVC'sregistered head off ice islocated at Lot A87/1, Street 5, Vinh Loc Industrial Park, Ba Diem
Ward, Hoc Mon District, Ho ChiMinhCity,Vietnam.DVC's principal activitiesare to tradegasoline, gas cookers, machinery and equipment oil and gas industry, to provide
transportation services, and to trade oil, lubricant and petrol-chemical products.As at 30June 2012 theCompany holds 70% ownershipinterestof DVC
On 21 December 2011, the Company entered into a share transfer agreement ("the
agreement") with Totalgaz Vietnam Limited ("Totalgaz") to dispose all its shares in DVC
Bothpartiessigned theCompletionMinuteson 29 June 2012 uponthe completionof certainperquisitesof the agreement However, the transfer price has not been finalised and still
subject tothe independentassessment report on DVC'snet assets
CAO Fashion Company Limited ("CFC"), a one-member limited liability company, wasestablishedinaccordancewith Business RegistrationCertificate No 0309279212 issued by
theDepartmentof PlanningandInvestmentof Ho ChiMinh Cityo 14 August2009.CFC'sregistered headoff iceislocated at HOE PhanDangLuuStreet, PhuNhuanDistrict,Ho ChiMinh City, Vietnam CFC's principal activities are to produce and trade fashion products,
silver and goldjewelery,andartsandcraftsproducts,andto importand export art and craftproducts
PNJ Laboratory Company Limited ("PLC"), a one-member limited liability company, wasestablished inaccordancewith BusinessRegistrationCertificateNo 0310521330issued by
the Department of Planning and Investment of Ho Chi Minh City on 16 December 2010
PLC's registered head office islocated at 205 Phan DangLuu Street, Phu Nhuan District,
Ho Chi Minh City,Vietnam.PLC's principalactivitiesareto provide jewelery inspection and
consultancyservices
Trang 13Phu Nhuan Jewelry Joint Stock Company
NOTESTOTHEINTERIM CONSOLIDATED FINANCIALSTAT EMENTS(continued)
as at and for the six-monthperiodended30 June2012
2 BASIS OF PREPARATION
B09a-DN/HN
2.1 Accounting standards and syst em
The interim consolidated financial statements of the Group, expressed in Vietnam dong("VND"), are prepared in accordance with the Vietnamese Accounting System andVietnamese Accounting Standard No 27 - Interim Financial Reporting and other
VietnameseAccountingStandards("VAS")issued bythe MinistryofFinanceas per:
~ Decision No 149/2001/QD-BTC dated 3 December 2001 o the Issuance andPromulgationofFour VietnameseAccountingStandards(Series 1);
~ Decision No 165/2002/QD-BTC dated 31 December 2002 on the Issuance andPromulgationofSixVietnameseAccountingStandards(Series2);
~ Decision No 234/2003/QD-BTC dated 30 December 2003 on the Issuance andPromulgationofSixVietnameseAccountingStandards(Series3);
~ Decision No 12/2005/QD-BTC dated 15 February 2005 o the Issuance andPromulgationof SixVietnameseAccountingStandards(Series 4);and
~ Decision No 100/2005/QD-BTC dated 28 December 2005 on the Issuance andPromulgationof Four VietnameseAccountingStandards(Series5)
Accordingiy, the accompanying interim consolidated balance sheet, interim consolidated
income statement, interim consolidated cash fiow statement and related notes, including
their utilisation arenotdesigned forthose whoare not informed aboutVietnam'saccounting
principles, procedures and practices and furthermore are not intended to present thfinancial positionand results of operations and cash fiows in accordance with accountingprinciplesandpracticesgenerallyaccepted incountriesotherthanVietnam
2.2 Applied accounting documentation system
TheGroup'sappliedaccountingdocumentationsystem is the GeneralJournalsystem
The interim consolidated financiaistatements comprisethe interimfinancial statements of
theCompanyand its subsidiaries forthe six-monthperiod ended 30 June2012
Subsidiariesare fuliyconsolidated from the date ofacquisition,beingthedate onwhichth
Group obtains control, and continued to be consolidated until the date that such controlceases
The interim financial statements of the subsidiaries are prepared for the same reportingperiod asthe Company,using consistentaccountingpolicies
All intra-company balances, incomeandexpenses andunrealisedgains or lossesresulting
fromintra-companytransactionsareeliminatedin full
Minorityinterests represent theportion of profitor loss andnetassetsnotheld by the Groupand are presentedseparately in theinterim consolidatedincomestatementandwithinequity
in the interimconsolidatedbalancesheet,separately fromparent shareholders'equity
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NOTES TOTHEINTERIM CONSOLIDATEDFINANCIALSTATEMENTS(continued)
as at and for the six-monthperiodended30June 2012
B09a-DN/HN
3 1 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, cash at banks, gold and short-term,
highly liquid investments witha original maturity of less thanthree months that arereadily
convertible into known amounts of cash and that are subject to an insignificant risk ofchange invalue
3.2 Receivables
Receivablesare presented inthe interim consolidated financial statements at the carrying
amounts duefrom customersandotherdebtors,alongwiththeprovisionfor doubtfuldebts
The provision for doubtful debts represents theestimated lossdue to non-payment arising
onreceivables that wereoutstandingat the balancesheetdate Increasesanddecreasesto
the provision balance are recorded as general and administration expense in the interim
consolidated income statement
3 3 Inventories
Inventories are stated at the lower of cost incurred in bringing each productto its present
locationandcondition,and netrealisablevalue
Net realisable value represents the estimated selling price in the ordinary course ofbusiness less theestimatedcoststo completeandtheestimated costs necessary to make
thesale
The perpetualmethodis used to record inventories,whicharevaluedas follows:
Merchandisesandconsumables, - cost ofpurchaseo a weightedaverage basis
andrawmaterials
Finishedgoods and work-in process - cost of direct materials and labour plus
attributable manufacturing overheads based onthe normal operating capacity o a weighted
averagebasis
Provision for obso lete in ventories
An inventory provision is created for the estimated loss arising dueto the impairment ofvalue (through diminution, damage, obsolescence, etc.) of merchandise goods, raw
materials, finished goods, andother inventories ownedbythe Group,based on appropriate
evidenceof impairmentavailableat thebalancesheetdate
Increases anddecreasesto the provision balance are recorded into thecost of goods soldaccount in theinterim consolidated income statement
Trang 15Phu Nhuan Jewelry Joint Stock Company
NOTES TO THEINTERIM CONSOLIDATEDFINANCIALSTATEMENTS(continued)
as at and forthe six-month period ended 30 June 2012
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
B09a-DN/HN
3 4 Fixed assets
Fixedassets are statedat cost less accumulateddepreciationand amortization
The cost of afixed asset comprises its purchaseprice and any directly attributablecostsof
bringingthe fixedassetto workingconditionforits intended use
Expendituresfor additions,improvementsandrenewals are capitalised and expendituresfor
maintenance and repairs are charged to the interim consolidated income statement as
incurred
When fixed assets are sold or retired, their cost and accumulated depreciation oramortizationare removedfrom the interim consolidatedbalancesheet and any gainor lossresultingfrom theirdisposal is includedin the interimconsolidatedincome statement
L anduserights
Land use rightis recorded as an intangiblefixed asset on the interimconsolidatedbalance
sheet when the Groupobtainedthe land useright certificates.The costs of land use rightcomprise all directly attributable costs of bringing the land to the condition available for
intendeduse andisnot amortized due to havingindefiniteuseful life
3 5 Depr ecia ti on an d am ortization
Depreciation of tangible fi ed assets and amortization of intangible fixed assets are
calculatedo a straight-linebasisover the estimated usefullife of each asset asfollows:
Buildingsand structures 3 - 25 years
Machineryandequipment 3 - 15 years
Motor vehicles 4 - 10 years
Office equipment 3 - 8 years
Computer software 3 years
The usefullife of the fixedassets and depreciation ratesare reviewed periodicallyto ensure
that the method andthe period of the depreciationandamortization are consistentwiththe
expectedpattern of economic benefits that will be derived from the use of fixedassets
The following types of expenses are recorded as long-term prepaid expense and areamortised to the interimconsolidated income statement
~ Prepaid rental includes land and retail shop rental prepaid for man years underoperatinglease contracts and are amortizedover thelease term;
~ Toolsand consumableswith large value issued in use and can be used for more than
Trang 16Phu Nhuan Jewelry J oint St ock Co mpany
NOTES TO THEINTERIMCONSOLIDATEDFINANCIALSTATEMENTS(continued)
as at and forthe six-monthperiodended 30June2012
3 SUMMARYOF SIGNIFICANTACCOUNTINGPOLICIES(continued)
B09a-DN/HN
3.8 Inve stments in ass ociates
The Group's investment in its associate is accounted for using the equity method ofaccounting An associate is an entity in which the Group has significant influence that isneither subsidiaries nor joint ventures The Group generally deems they have significant
influenceif they havefrom20% orabove of thevoting rights
Under the equity method, heinvestment is carried in the interim consolidatedbalance sheet
at cost plus post acquisition changes in the Group'sshare of net assets of the associates.Goodwill arising on acquisition of the associate is included in the carrying amount of theinvestment and is amortized over a 10-year period The interim consolidated incomestatement reflects the shareofthepost-acquisitionresults of operationof the associate
The share of post-acquisition profit (loss) of the associates is presented on face of theinterim consolidated income statement and its share of post-acquisition movements inreserves is recognised in reserves The cumulative post-acquisition movements areadjusted against the carrying amountof the investment Dividend/profit sharing receivablefrom associatesreduces the carryingamount of theinvestment
The interim financial statements of the associates are prepared for the same reportingperiod as the Group Where necessary, adjustments are made to bring the accounting
policies in line withthoseof the Group
3 9 Oth er investments
Other investments are stated at their acquisitioncosts.Provision is made for any diminution
in value of the marketableinvestmentsat the balance sheet daterepresenting theexcessofthe acquisition cost over the market value at that date in accordance with the guidance
2009 ncreasesand decreasestotheprovision balancearerecorded as financeexpensein
theinterim consolidatedincome statement
3.10 Payables and accruals
Payables and accruals are recognised for amounts to be paid in the future for goods andservices received, whether or not billed to the Group
3.11 Provision for severan ce pay
accordance with the Labour Code, the Law on Social Insuranceand related implementingguidance.Commencing 1 January 2009,the average monthly salaryused in this calculationwill be revisedat the end of each reporting periodfollowingthe average monthly salary of
thesix-monthperiod up to the balance sheet date.Anychanges to the accrued amountwill
be taken to the interim consolidatedincomestatement
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B09a-DN/HN
3.13 Foreign currency transactions
transactionsas appliedconsistentlyin priorperiods
is differentfrom those stipulated in the CircularNo.20 1/2009m-BTCissued on 15 October
differences("Circular201" as follows:
hort-termmonetary assets
the interim consolidated income statement
exchange losses resultsin net loss before tax
subsequent five years In any case, the total
foreignexchange lossto be charged to current
period'sincome must be atleast equivalent o
translation of the current portion of the
adopted the Circular 201 for the six-month period ended 30 June 2012 was not material as
a whole
3.14 Treasury sh ares
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NOTESTOTHE INTER IMCONSOLIDATEDFINANC IALSTATEMENTS(continued)
as atand forthe six-monthperiodended 30June 2012
3 SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (continued)
B09a-DN/HN
3.15 Appropriation of net profits
Net profit after tax is available for appropriation to shareholders after approval in th
shareholders' meeting, and after making appropriation to reserve funds inaccordance with
theGroup'sCharterand Vietnam's regulatory requirements
The Group maintainsthe following reserve funds which areappropriated from the Group'snet profitas proposed by the Boardof Directors and subjectto approvalby shareholders at
theannualgeneralmeeting
• Financialreservefund
This fund is set aside to protect the Group's normal operations from business risks or
losses,orto preparefor unforeseen losses ordamages forobjective reasons and forcemajeure,suchasfire, economicand financialturmoil of the countryorelsewhere
• Investmentanddevelopment fund
This fund is set aside for use in the Group's expansion of its operation or in-depth
investments
This fundis set asidefor the purposeof pecuniary rewardingandencouraging,common
benefitsandimprovement oftheemployees' benefits andisrecognised as a liability
3.16 Basic earnings per share
Basic earnings per share amounts are calculated by dividing net profit after tax for the
period attributable to ordinary shareho lders of the Company by the weighted average
numberofordinaryshares outstandi ngduringtheperiod
Revenue is recognisedto theextent that itisprobable thatthe economicbenefitswill flow to
the Groupand therevenue canbereliably measured.Revenue ismeasured at he fair value
of the consideration received or receivable, excluding trade discount, rebate and sales
return The following specific recognition criteria must also be met before revenue isrecognised:
Trang 19Phu Nhuan Jewelry Joint Stock Company
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the six-month period ended 30 June 2012
B09a-DN/HN
3 SUMMARYOF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.18 Taxation
Current income ta x
and tax laws used to compute the amount are those that are enacted as at the balance
Current income tax is charged or credited to the interim consolidated income statement
except when it relates to items recognised directly to equity, in which case the curreniincome tax is also dealt with in equity
Deferred income ta x
balance sheet date between the tax bases of assets and liabilities and their carrying
where the deferred income tax liability arises from the initial recognition of an asset orliability in a transaction which at the time of the related transaction affects neither theaccounting profit nor taxable profit or loss
income tax asset in respect of deductible temporary difference which arises from the initialrecognition of an asset or liability which at the time of the related transaction, affects neitherthe accounting profit nor taxable profit or loss
The carrying amount of deferred income tax assets is reviewed at each balance sheet date
unrecognised deferred income tax assets are re-assessed at each balance sheet date andare recognised to the extent that it has become probable that future taxable profit will allow
Deferred income tax is charged or credited to the interim consolidated income statement,
except when it relates to items recognised directly to equity, in which case the deferred
Deferred income tax assets and liabilities are offset when there is a legally enforceable rightfor the Group to offset current income tax assets against current income tax liabilities and
taxable entity or when the Group intends either settle current income tax liabilities andassets on a net basis or to realise the assets and settle the liabilities simultaneously, in eachfuture period in which significant amounts of deferred income tax liabilities or assets are
expectedto be settled or recovered
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NOTESTO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS(continued)
as at and forthe six-monthperiodended 30June 2012
3 SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (continued)
B09a-DN/HN
3.19 Financial instruments
Financial instrument s- initial recognition and presentation
Financial assets
Financialassets withinthescope ofCircularNo 210/2009/TT-BTC issuedby theMinistryof
Finance on 6 November 2009, providing guidance for the adoption in Vietnam of the
International Financial Reporting Standards on presentation and disclosures of financial
instruments ("Circular 210") are classified, for disclosures in the notes to the interim
consolidated financial statements, as financial assets at fair value through profit or loss,
held-to-maturity investments,loans and receivables oravailable-for-salefinancialassetsas
appropriate The Group determines the classification of its financial assets at initialrecognition
Allfinancialassetsarerecognised initially atcost plusdirectly attributable transaction costs
TheGroup's financial assets includecash,cashequivalents andshort-termdeposits,trade
andotherreceivables
Financialliabilities
Financial liabilities withinthescopeofCircular210areclassified, for disclosuresinthe notes
to the interim consolidated financialstatements, asfinancial liabilities at fair valuethrough
profitor loss or financial liabilities measured at amortised cost as appropriate TheGroup
determinesthe classification of its financialliabilities atinitial recognition
All financial liabilities are recognised initially at cost plus directly attributable transaction
costs
The Group'sfinancial liabilities includetrade andotherpayables,andloans
Financial instruments - subsequent re-measurement
No subsequent re-measurement of financialinstrumentsis currentlyrequired
Offsetting of fina ncial instruments
Financialassetsand financialliabilitiesare offsetandthenet amount reportedin theinterim
consolidatedbalancesheet if,andonly if, here is a currentlyenforceable legalright to offsetthe recognisedamountsandthereis an intention to settle on a net basis, orto realise the
assetsandsettle theliabilities simultaneously
4 CASH AND CASH EQUIVALENTS
VND
30 June 2012 31December 2011
Cash onhand
Cashat banks
Cashin transit
Cash equivalents
Trang 21Phu Nhuan Jewelry Joint Stock Company
as at and for the six-monthperiod ended 30 June 2012
B09a-DN/HN
Short-term investments represent bank term deposits as a guarantee for the transfer of itssubsidiary's shares (Note 12.1),and earn an average interest rate from 12% to 13.5% perannum
VND
30 June 2012 31 December 2011
Transfer of teased land lot to Saigon Food
Joint Stock Company 12 ,000,000,000
Trang 22Phu Nhuan Jewelry Join t Stock Company
B09a-DN/HN
VND Buildings and Mac hinery and
Office equipment Motor vehicles Total
Trang 23Phu Nhuan Jewelry Joint St ock Co mpany B09a-DN/HN
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS(continued)
as at and forthe six-monthperiodended 30June2012
199,544,929135,932,947
279,199,924,767279,136,312,785
Land use rights with the carryingamountofVND 166,099,851,738 werepledged to obtainloans from commercialbanks( Note 21).
VND
30 June 20 12 31December 2011
Duong Quang Ham factoryproject
Silverandgold jewelry center
Thu KhoaHuancommercialshoppingcenter
TOTAL
50,901,311,7905,548,639,0005,788,905,00062,238,855,790
20,556,149,1332,095,535,0003,300,000,00025,951,684,133