PLC AUDITED CONSOLIDATED FINANCIAL STATEMENTS 2015

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PETROLIMEX PETROCHEMICAL CORPORATION - JSC (Incorporated in the Socialist Republic of Vietnam)

AUDITED CONSOLIDATED

FINANCIAL STATEMENTS

For the year ended 31 December 2015

Deloitte.

TABLE OF CONTENTS

CONTENTSPAGEIS)

STATEMENT OF THE BOARD OF DIRECTORS2 INDEPENDENT AUDITORS1 REPORT3

CONSOLIDATED BALANCE SHEET4-5

CONSOLIDATED INCOME STATEMENT6 CONSOLIDATED CASH FLOW STATEMENT7 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS8-37

BOARD OF DIRECTORS' STATEMENT OF RESPONSIBILITY

The Board of Directors of the Corporation is responsible for preparing the consolidated financial statements,which give a true and fair view of the financial position of the Corporation and of its results and cash flows for theyear in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legalregulations relating to financial reporting In preparing these consolidated financial statements, the Board ofDirectors 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 Corporation 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 financial position of the Corporation and that the consolidated financialstatements 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 Corporation and hence for taking reasonable steps for the prevention and detection of frauds and otherirregularities

the Corporation has complied with the above requirements in preparing

ors,

Deputy General DirectorDeputy General DirectorGeneral Director

MemberMemberMemberMemberChairman

Mr Ngo Due Giang

Mr Nguyen Van Khanh

Mr Nguyen Van Due

Mr Pham Ba Nhuan

The Board of Directors of Petrolimex Petrochemical Corporation - JSC (the "Corporation") presents this reporttogether with the Corporation's consolidated financial statements for die year ended 31 December 2013

THE BOARDS OF MANAGEMENT AND DIRECTORS

The members of the Boards of Management and Directors of the Corporation who held office during the year and

to die date of tiiis report are as follows:

Board of Management

STATEMENT OF THE BOARD OF DIRECTORS

PETROLIMEX PETROCHEMICAL CORPORATION - JSC

Floors 18 & 19,229 Tay Son, Nga Tu So Ward

Dong Da District, Hanoi, S.R Vietnam

Deputy General Director

Audit Practising Registration Certificate

No 0030-2013-001-1

For and on behalf of

DELOITTE VIETNAM COMPANY LIMITED

25 March 2016

Hanoi, S.R Vietnam

Deloitte 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 clients

Le Anh SonAuditor

Audit Practising Registration Certificate

No 1961-2013-001-1

To: The Shareholders

The Boards of Management and Directors

Petrolimex Petrochemical Corporation - JSC

We have audited the accompanying consolidated financial statements of Petrolimex Petrochemical Corporation JSC (the "Corporation"), prepared on 25 March 2016 as set out from page 04 to page 37, which comprise thebalance sheet as at 31 December 2015, and the statement of income and statement of cash flows for the year thenended, and a summary of significant accounting policies and other explanatory information

-Management's Responsibility for the Consolidated financial statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements inaccordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulationsrelating to financial reporting and for such internal control as management determines is necessary to enable thepreparation of consolidated financial statements that are free from material misstatement, whether due to fraud orerror

Auditors' Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit Weconducted our audit in accordance with Vietnamese Standards on Auditing Those standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether theconsolidated financial statements are free from material misstatement

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in theconsolidated financial statements The procedures selected depend on the auditors' judgment, including theassessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud orerror In making those risk assessments, the auditors consider internal control relevant to the Corporation'spreparation and fair presentation of the consolidated financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theCorporation's internal control An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of accounting estimates made by management, as well as evaluating the overallpresentation of the consolidated financial statements

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position

of the Corporation as at 31 December 2015, and its financial performance and its cash flows for the year thent=TTC^S=apd^nrp with Vietname^e A^rremStandards, accounting regime for enterprises and legal

INDEPENDENT AUDITORS' REPORT

113,857,747318 113,857,747318 (11,288,940,486) 70357,956,000

59309315314

121,878611,215

121378,011315

(2,423.024,165) 3,814,284,398 1,391,200333 (292,299,911,236) 632,879,792.416 340,579,881,180 341,971,141,413 319,527,155 319327,155

037390342315

2,793,029,691 14,811324,614

1,692314310 19396368321

-1,018,703,682,471 1,018,703,082,471 282,134,718 (163,923,044,197) 15,031,683,007 94,040,001348 1,069,256,110,157

1,015393391393

495,390,400,000 391,697,080,873 087,093,480373

2340307329350

4,151323,938,123 104,632,059,570 104,632,059370 (9,510,444,917) 70,557,950,000 01,047311,003 175,210,359,620

175310359320

(3.975,762,343)

5,229,884,398

1,754,122,055 (360,750,043,379) 795,372,406,666

• 429,221,763,287

430375,885342

319,527,155 319327,155 772,185^42,770 833,868,237 30,338,400,026 6,400,487,321 37,638,821,584 (17,550,127,053) 940,545,345,279 922,995,218,226 358,867,214 (203,143,004,016) 15,770,945,598 98,652,750,040 1,171,689,905,080 1,083,329,443,916 1,044,707,203,529 290,467,800,098 1,335,175,091,027

3379,138395353

11

0 0 15 14 13 0

12 11

10

9 8 7 5

270 201 200 254 252 250 242 240 229 228 227 223 222 221 220 210 210 200 153 152 1S1 ISO 149 141 140 139 137 130 132 131 130 112 111 110

1.Short-term trade receivables

2.Shot-term advances to suppliers

3.Other shot-term receivables

4.Provision for shot-term doubtful debts

5.Deficits in assets awaiting solution

IIL Inventories

1.Inventories

2.Provision for devaluation of inventories

IV Other short-term assets

1.Short-tenn prepayments

2.Value added tax deductibles

3.Taxes and other receivables from the State budget

IV.Long-term financial investments

1.Investments in joint-ventures, associates

2.Provision for impairment of long-term financial

V.Other long-term assets

Consolidated financial statements

For the year ended 31 December 2015

PETROUMEX PETROCHEMICAL CORPORATION - JSC

Floors 18 & 19,229 Tay Son, Nga Tu So Ward

Dong Da District, Hanoi, S.R Vietnam

The notes set out on pages 08 to 37 are an integral part of these consolidated financial statements

5

Nguyen Van DueGeneral DirectorPhuong Thao Hien

Manager of Finance andAccounting Department

1381331342378

(8,740,492,087) 1,150,190,991,729 197,629,430,864 323,154,104 53373,827,916 23304,964,193 38317,139,714

1,022,052,813,462

2376,751329395 2376,751329395

4,151323338,123

86,217,321,493 (485.815,578) 85,731,505,915 20,463,604,691 232,943,693,904 (12,730,000) 466200,000

3,561,050,000

007,988390,000 1,151,141,714210 1,151341,714310 27,750,000,000 27,750,000,000 (2,729,592,945) 2,510,796398364

12358300,086

12,243,564,796 59,039,779,773 36,153386,150 14,876363,118 329,794,024371

2372332223313 3300,182323213

20 19

19 18 17 12 16

441

421b

421a

421 420 418 415 414 412 411 410 400 338 330 322 320 319 315 314 313 312 31!

318

388

C.LIABILITIES

L Current liabilities

1.Short-tenn hade payables

2.Short-term advances from customers

3.Taxes and amounts payable to the State budget

4.Payables to employees

5.Short-term accrued expenses

6.Other current payables

7.Short-term loans and obligations under finance leases

8.Bonus and welfare funds

II Long-term liabilities

1 Long-term loans and obligations under finance leases

-Losses accumulated to the prior year end

-Retained earnings of die current year

TOTAL RESOURCES (44tN300+400)

FORMB01-DN/HN

UnitVND

As at 31 December 2015

The notes set out on pages 08 to 37 are an integral part of these consolidated financial statements

6

Nguyen Van DueGeneral Director

Phuong Thao Hien

Manager of Finance andAccounting Department

Hanoi 25 March 2016

Nguyen Quang Hung

Preparer

3,121 4,067

266249,496269 76,526,612,819

343276,109288 8272218295

1,631,310,406 10,003,829201

335203290,793

152,798,046,158 477219,230,717 27,341,812,862 50288,284206 19,741,855,177 995,767296,697 5,812294,116,051 6208,161,412,748

6208,161212,748

2014

Unit: VND FORMB02-DN/HN

328210219,493

95,014,937,387

423,624256280 4256208262

7,972,986,369 12,629,494,431

418268248218

148,358,732250 590,771228293

50,298,254,668

158,611,185292

41283,458221 1275226,136232

30 30 27 26

24 23

23

Nota

60 51

50 40 32 31

30 26 25 21 22 21 20 11 10

13.Profit from other activities (40=31-32)

14.Accounting profit before tax

(50=30+40)

15.Cunent corporate income tax expense

16.Net profit after corporate income tax

(60=50-51)

17.Bask earnings per share

CONSOLIDATED INCOME STATEMENT

For the year ended 31 December 2015

Consolidated financial statements

For the year ended 31 December 2015

PETROLIMEX PETROCHEMICAL CORPORATION - JSC

Floors 18 & 19,229 Tay Son, Nga Tu So Ward

Dong Da District, Hanoi, S.R Vietnam

^Nguyen Van DueGeneral DirectorPhuong Thao Hien

Manager of Finance andAccounting DepartmentHanoi, 25 March 2016

Nguyen QnangHung

Preparer

, 887,093,486273

59,299,429 568230,087,155 318,704,100289 (90,673,142,932) (97,460,326,500) (3,854,119,455,717) 3,852,906,639,285 (170,020,055,534) 10,633283,978 95,318,182 (181,549,457,694)

300,190,090,733 (12,066,132,182) (69,427,388,520) (27,526,739,293)

1,842,696,974

426,889,096283 (143,023,013,099) (58,475,443,938) 469,905,022,530 27,341,812,862 (12,761230,951) 3,101,284,494 54,736,990,719 54,190,055,718 343J76.109.600

2014

UnicVND FORM B 03-DN/HN

^/^^^YSiS&^m 8873)23^86,873 448,025,597 J62 930,003,054,633 (430,399,294,550) (5,147,997,116,633) 6,536,399,465,818 (190,466,376,110) 27,334,277,771 577,399,130 (218,378,053,011)

(299,311,001,163) (9,518,389,687) (87,955,958,259) (50,298,254,668) 35,451,094,239 (726,627,578,954) 78,158,337,192 (119,555,770,129) 300,033,439,103 50,298,254,668 (28,390,070,961)

1,159,119,493 54,991,051,903 79,152,127,120 423,624,936,000

2015

70 61 60 50 40 36 34 33 39 27 22 21

20 17 15 14 12 11 10 09 68 06 05 04 03 02 01

lodes

ITEMS

L CASH FLOWS FROM OPERATING ACTIVITIES

1.Profit before tax

Changes in payables (excluding accrued loan interest and

corporate income tax payable)

Changes in prepaid expenses and other assets

Interest paid

Corporate income tax paid

Other cash outflows

Net cash (used in^^generated by operating activities

IL CASH FLOWS FROM INVESTING ACTIVITIES

1.Acquisition and construction of fixed assets and other

long-term assets

2.Proceeds from sale, disposal of fixed assets and other

long-term assets

3.Interest earned, dividends and profits received

Net cash used in investing activities

IH CASH FLOWS FROM FINANCING ACTIVITIES

1.Proceeds from borrowings

2.Repayment of borrowings

3.Dividends and profits paid

Net cash generated by/(used in) financing activities

Net increase in cash (50=20+30+40)

Cash and cash equivalents at the beginning of the year

Effect of changes in foreign exchange rates

Cash and cash equivalents at the end of the year

(70=50+60+01)

For the year ended 31 December 201S

The Corporation's structure

As at 31 December 2015, the Corporation has branches as follows:

Petrolimex Petrochemical Corporation - JSC - Da Nang Branch;

- Petrolimex Petrochemical Corporation - JSC - Sai Gon Branch;

Petrolimex Petrochemical Corporation - JSC - Can Tho Branch

PETROLIMEX PETROCHEMICAL CORPORATION - JSC

Floors 18 & 19,229 Tay Son, Nga Tu So WardConsolidated financial statementsDong Da District, Hanoi, S.R VietnamFor the year ended 31 December 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFORM B 09-DN/HN

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

1.GENERAL INFORMATION

Structure of ownership

Petrolimex Petrochemical Corporation - JSC (the "Corporation"), formerly known as PetrolimexPetrochemical Joint Stock Company, which was transformed to a joint stock company under Decision

No 1801/2003/QD-BTM dated 23 December 2003 issued by the Minister of Trade (currently known as

the Ministry of Industry and Trade) The official handover date was 01 March 2004 The Corporation'sshares have been listed on Hanoi Stock Exchange with stock code PLC

The parent company of the Corporation is Vietnam National Petroleum Group who owns 79.07% of theCorporation's shares Other shareholders own 20.93% of the Corporation's shares

The number of employees as at 31 December 2015 was 713; in which: Petrolimex Petrochemical: 345,Petrolimex Asphalt: 261, Petrolimex Chemical: 107 (31 December 2014: 692, in which: PetrolimexPetrochemical: 352, Petrolimex Asphalt: 233, Petrolimex Chemical: 107)

Operating industry and principal activities

Operating industry and principal activities of die Corporation are to:

Trade and import, export lubricant, asphalt and chemicals (except for chemicals prohibited by the

Stare) and other commodities of oil and gas industry;

Trade and import, export specialized materials and equipment of the petrochemical industry;

Provide transportation, warehouse, production, analysis and rest, consultancy and technical servicesrelating to die petrochemical industry;

Do real estate business;

- Provide maritime services and ship supplies

Normal production and business cycle

The Corporation's normal production and business cycle is carried out for a time period of 12 months orless

Characteristics of the business activities in the fiscal year which have impact on the financialstatements

According to Resolution No 21 /NQ-PLC-HDQT dated 27 November 2014 of die Board of Management,the Corporation has decided to dissolve Petrolimex Petrochemical Corporation - JSC - Hai Phong Brachsince 24h 31 December 2014

Disclosure of information comparability in the financial statements

As stated in Note 3, since 01 January 2015, the Corporation 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 202/2014/TT-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

244/2009/TT-BTC dated 31 December 2009 issued by the Ministry of Finance Circular 202 supersedes section XIII in

Circular No 161/2007/TT-BTC dated 31 December 2007 of the Ministry of Finance guiding the

preparation and presentation of consolidated financial statements in accordance with VietnameseAccounting Standard No 25 "Consolidated Financial Statements and Accounting for Investments inSubsidiaries" However, the adoption of such circulars does not have significant impact on thecomparability of the figures in the Corporation's consolidated financial statements

ACCOUNTING CONVENTION AND FINANCIAL YEAR

Accounting convention

The accompanying consolidated financial statements, expressed in Vietnam Dong (VND), are preparedunder 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

Financial year

Trlngdimal

Ccastnictioo of transportationwots

Hmoi.V^tnioi

Pctroiimex Chcoikil Cornpmy

Limiltd

Amdna

CM Engineering Cautmcdm Joint

Stoi Company No 810

VP Petrochonical Transport Jotot

Petrocimcx Asphut Conpmy

1.GENERAL INFORMATION (Continued)

The Corporation^s structure (Continued)

As at 31 December 2015, the Corporation has 02 subsidiaries and 02 associates General information ofsubsidiaries and associates of the Corporation is as follows:

Pbcerf rroportwnor ProportionInvested!

iKorpontin ownerskip ofvotingvilntuit Principalaid opcratiw interest pmnrhdd 31 December 201S activities

PETROLIMEX PETROCHEMICAL CORPORATION - JSC

Floors 18 & 19,229 Tay Son, Nga Tu So WardConsolidated financial statementsDong Da District, Hanoi, S.R VietnamFor the year ended 31 December 2015

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

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

3.ADOPTION OF NEW ACCOUNTING GUIDANCE

On 22 December 2014, the Ministry of Finance issued Circular No 200/20 U/TT-BTC ("Circular 200") guiding the accounting regime for enterprises and Circular No 202/2014/TT-BTC (Circular 202) guiding

the preparation and presentation of consolidated financial statements These circulars are effective forfinancial years beginning on or after 01 January 2015 Circular 200 supersedes the regulations foraccounting regime promulgated under Decision No 15/2006/QD-BTC dated 20 March 2006 issued by the

Ministry of Finance and Circular No 244/2009/TT-BTC dated 31 December 2009 issued by the Ministry

of Finance Circular 202 will supersede section XIII in Circular No 161/2007/TT-BTC dated 31December 2007 of the Ministry of Finance guiding the preparation and presentation of consolidatedfinancial statements in accordance with Vietnamese Accounting Standard No 25 "Consolidated FinancialStatements and Accounting for Investments in Subsidiaries" The Board of Directors has adopted Circular

200 in the preparation and presentation of the consolidated financial statements for the year ended 31December 2015

4.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies, which have been adopted by the Corporation in the preparation ofthese consolidated financial statements, are as follows:

Estimates

The preparation of consolidated financial statements in conformity with Vietnamese AccountingStandards, accounting regime for enterprises and legal regulations relating to financial reporting requiresmanagement to make estimates and assumptions that affect the reported amounts of assets, liabilities anddisclosures of contingent assets and liabilities at the date of the consolidated financial statements and thereported amounts of revenues and expenses during the financial year Although these accounting estimatesare based on the management's best knowledge, actual results may differ from those estimates

Basis of consolidation

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

Where necessary, adjustments are made to the financial statements of subsidiaries to bring die accountingpolicies used in line with those used by the Corporation

All significant inter-company transactions and balances between group enterprises are eliminated onconsolidation

Business combinations

On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their fairvalues at the date of acquisition Any excess of the cost of acquisition over the fair values of theidentifiable net assets acquired is recognised as goodwill Any deficiency of the cost of acquisition below

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

acquisition

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.

Net realisable value represents die estimated selling price less all estimated costs to completion and costs

to be incurred in marketing, selling and distribution Inventories are accounted for under the perpetualmethod, cost of materials and tools received and delivered are calculated using FIFO method and cost offinished goods and merchandise are calculated using standard cost method (a method similar to estimatedand budget cost method) The difference between standard cost and actual cost of finished goods andmerchandise are allocated to cost of finished goods, merchandises sold and inventories as at theconsolidated balance sheet date

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

Receivables represent the amounts recoverable from customers or other debtors and are stated at bookvalue less provision for doubtful debts

Provision for doubtful debts is made for receivables that are overdue for six months or more, or when thedebtor is in dissolution, in bankruptcy, or is experiencing similar difficulties and so may be unable torepay the debt

4.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in associates

An associate is an entity over which the Corporation has significant influence and that is neither asubsidiary nor an interest in joint venture Significant influence is the power to participate in the financialand 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 financial statements using theequity method of accounting Interests in associates are earned in the balance sheet at cost as adjusted bypost-acquisition changes in the Corporation's share of the net assets of the associate Losses of anassociate in excess of the Corporation's interest in that associate (which includes any long-term intereststhat, in substance, form part of the Corporation's net investment in the associate) are not recognised.Where a group entity transacts with an associate of the Corporation, unrealised profits and losses areeliminated to the extent of the Corporation's interest in the relevant associate

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits, gold and jewelry, cash in transit andshort-term, highly liquid investments that are readily convertible to known amounts of cash and which aresubject to an insignificant risk of changes in value

YearsBuildings and structures05 - 35Machinery and equipment03-10Motor vehicles06-17

Office equipment03 - 08

Intangible assets and amortisation

Intangible assets represent computer software that is stated at cost less accumulated amortisation.Computer software are amortised using the straight-line method over the duration of 03 years

Construction in progress

Properties in the course of construction for production, rental or administrative purposes, or for thepurposes, are carried at cost Cost includes costs that are necessary to form the assets in accordance withthe Corporation's accounting policy Depreciation of these assets, on the same basis as other propertyassets, commences when the assets are ready for their intended use

Prepayments

Prepayments are expenses which have already been paid but relate to results of operations of multipleaccounting periods Prepayments comprise prepaid office area investments, land rentals and other types ofprepayments

Office area investments at MIPEC Tower, No.229 Tay Son Street, Dong Da District, Hanoi and landrentals at Dinh Vu Industrial Park, Hai Phong Province represent prepaid amounts and are charged to theconsolidated income statement using the straight-line method over the lease term/useful life

Other types of prepayments comprise costs of small tools, supplies and spare parts issued for consumptionand others which are expected to provide future economic benefits to the Corporation These expenditureshave been capitalised as prepayments, and are allocated to the consolidated income statement using thestraight-line method in accordance with die current prevailing accounting regulations

PETROLBWEX PETROCHEMICAL CORPORATION - JSC

Floors 18 & 19,229 Tay Son, Nga Tu So WardConsolidated financial statementsDong Da District, Hanoi, S.R VietnamFor the year ended 31 December 2015

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

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

4.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Tangible fixed assets and depredation

Tangible fixed assets are stated at cost less accumulated depreciation.

The costs of purchased tangible fixed assets comprise their purchase prices and any directly attributablecosts of bringing the assets to their working condition and location for their intended use

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

follows:

2015

4.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Revenue recognition

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

(a)the Corporation has transferred to die buyer the significant risks and rewards of ownership of die

goods;

(b)the Corporation retains neither continuing managerial involvement to the degree usually associatedwith ownership nor effective control over the goods sold;

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

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

and

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

Interest income is accrued on a time basis, by reference to the principal outstanding and at the applicableinterest rate

Dividend income from investments is recognised when the Corporation's right to receive payment hasbeen established

Foreign currencies

The Corporation applies the method of recording foreign exchange dif^^rences in accordance withVietnamese Accounting Standard No 10 (VAS 10) "Effects of changes in foreign exchange rates".Accordingly, transactions arising in foreign currencies are translated at exchange rates ruling at thetransaction date The balances of monetary items denominated in foreign currencies as at the consolidatedbalance sheet date are retranslated at the exchange rates on the same date Exchange differences arisingfrom the translation of these accounts are recognised in the consolidated income statement Unrealisedexchange gains as at the consolidated balance sheet date are not treated as part of distributable profit toshareholders

Borrowing costs

Borrowing costs are recognised in the consolidated income statement in the year when incurred unlessthey are capitalised in accordance with Vietnamese Accounting Standard No 16 "Borrowing costs".Accordingly, borrowing costs directly attributable to the acquisition, construction or production ofqualifying assets, which are assets that necessarily take a substantial period of time to get ready for theirintended use or sale, are added to the cost of those assets, until such time as the assets are substantiallyready for their intended use or sale Investment income earned on the temporary investment of specificborrowings pending their expenditure on qualifying assets is deducted from the cost of those assets Forspecific borrowings for the purpose of construction of fixed assets and investment properties, borrowingcosts are capitalised even when the construction period is under 12 months

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 year Taxable profit differs from net profit asreported in the consolidated income statement because it excludes items of income or expense that aretaxable or deductible in other years (including loss carried forward, if any) and it further excludes itemsthat are never taxable or deductible

13

Cash on hand 3,188,213,8212,265,165,176^ Demand deposits 283,749,264,411385,692,901,280^

Cash in transit 3,530,409,8663,739,020,417••

290,467,888,098391,697,086,873

PETROLIMEX PETROCHEMICAL CORPORATION - JSC

Floors 18 & 19,229 Tay Son, Nga Tu So WardConsolidated financial statements

Dong Da District, Hanoi, S.R VietnamFor the year ended 31 December 2015

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

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

4.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Taxation (Continued)

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

Deferred tax is calculated at the tax rates that are expected to apply in the year 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 taxation

authority and the Corporation 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

733,920,742863 530,777,678247 508316,089,612 344392,445,415

VND

295,074,655,479 32280,856,583

11,181,144,200

3,086,965,263 2,768,823,890

VND 295,074,655,479 39,125,763,445 20,103,718,901 10,104,473,596 143,907,478,191

VND

448,721,068,321

9,146,386,674

63,285,503,977 7,184,891,043 2,439,828,232

VND

448,721,068,321 12,227,375,991 103,314,989,993

20,028,409,613

149,628,898,945

CostCost

Items

Under 6 months

Over 6 months to under 1 year

From 1 year to under 2 years

From 2 years to under 3 years

Over3years

RecoverableRecoverable

319,527,155 319,527,155 15,631,683,067 4,314,986,521

319,527,155 319,527,155 15,770,945,598 3,984295,496

VND

7,402,722,630 1,701,563,605 523,512,042 265,835,600 968,883,618 454,179,051

31/12/2014

(ReclsssiEed)

VND

8,859,935,998 2,049,602,062 523,512,042 353,600,000

Social and health insurance receivables

Tax refund receivables

Trade receivables from rotated parties

(See details in Note 34)

Gia Anh Trade and Service Company Limited

Others

SHORT-TERM TRADE RECEIVABLES

2617932240 26172322*

252,017325 20,019,067,704

VND

702792065,430 2322,427,649

22258,002^33 24200,42)20!

332,064209 6211,991,024 96,593,069,067 12134,3923)0 457247,739,094 87,036,070,764

VND

Annul piyiblg tkgddlkjta

691,114282019 2322427,649 20,446,954,151

22769202502 332064209

5245,(61,726 07,955,950259 33,209,9932249 456,000331,540 16,062990326

99273731!

VND

teniDiopJit

2793,029,691 1(4,145,100 164345,000

5641107 607212561

12 TAXES AND AMOUNTS RECEIVABLE FROM/PAYABLE TO THE STATE BUDGET

115,550,061,834111,098,546,891

801,032,539

891,281,777

68,401,449,81118,612,118,5007,353,040,428

3,964,627,314

1,679,179,7602,486,911,98711,360,419,718

2,833,386,2403,633,101,081

66,998,940,60818,048,114,9097,403,762,2083,744,238,6775,304,333,6402,672,915,682459,753,846

Investments in Mipec office area

Land rentals at Dinh Vu Industrial Park

Unallocated tools and supplies

Fixed assets maintenance expenses

VNDVND

131,415,058,108246,947,627,4077,233,082,48222,440,744,956279,385,801,252 (4,070,433,349)249,811,625,429 (13,479,693,704)3,311,405,645

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

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

Consolidated financial statementsFor the year ended 31 December 2015

PETROLIMEX PETROCHEMICAL CORPORATION - JSC

Floors 18 & 19, 229 Tay Son, Nga Tu So Ward

Dong Da District, Hanoi, S.R Vietnam