FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED 31 DECEMBER 2009

FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED 31 DECEMBER 2009 REAL ESTATE 11 JOINT STOCK COMPANY... REAL ESTATE 11 JOINT STOCK COMPANY The Directors of Real Estate 11 Joint Stock Comp

FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED 31 DECEMBER 2009

REAL ESTATE 11

JOINT STOCK COMPANY

for the fiscal year ended 31 December 2009

6 Cash flows statement

for the fiscal year ended 31 December 2009

7 Notes to the financial statements

for the fiscal year ended 31 December 2009

8 Appendii

REAL ESTATE 11 JOINT STOCK COMPANY

The Directors of Real Estate 11 Joint Stock Company (''the company") present this report together with

the audited financial statements for the fiscal year ended 3 1 December 2009

Real Estate 11 Joint Stock Company (previously called House Trading Joint Stock Company of District

11) was established on the basis of the equitization of the State-owned company (House Trading Joint

~ t & k Company of District 11) in accordkce with the Decision No 5730/&-I% dated 31 ~ecember

2003 of the Chairman of the People's Committee of Ho Chi M i City The wmpany has been

operating under the business registration certificate No 4103002793 dated 22 October 2004 granted by

the Department of Planning and Investment of Ho Chi Minh City

During its operation course, the wmpany has been additionally granted business regiseation certificates

by the Department of Planning and Investment of Ho Chi Minh City approving:

+ The modification of business functions

+ The change in the address of head office

- Building up industrial works, oublic works and houses; - A - -

- Performing interior decoration services;

- Manufacturingandtradingco~ction materials (not at the head office);

Designing civil construction works, industrial works; designing total space of construction wo*,

designing interior and exterior construction works

Consulting, supervising civil and indushial construction works,

Preparing construction investment plans,

Investing in infrastructures of residential areas and industrial parks,

Leveling ground;

Providing services of leasing houses, plants and warehouses;

Providing p r o m services;

Acting as agent of goods depositing;

Designing structures of civil and industrial works;

W i n g offices

Manufacturing constructing materials (not at the head office);

Executing prefabricated concrete building components;

Building up civil, industrial and W c works;

Providing services of civil and industrial sanitation;

Providing parking services;

Caring and preserving trees;

Trading household appliances, food, beverages and domestic cigarettes (except for catering

services);

Trading real estates (except for services of brokerage, valuation, and real estate center)

REAL ESTATE 11 JOINT STOCK COMPANY

REPORT OF THE DIREaORS (cont.)

F i a a n d d m i t i o n and business results

The financial ~osition as of 31 December 2009, the business results, and the cash flows for the year

then ended of h e company have been expressed in the financial statements attached to this report (from

page 06 to page 26)

During the year, the company has &buted its profit as follows:

Dividends shared in the orevious vear -

Dividends temporarily paid in the current year

Total

subseauent eventa

The Directors of the company hereby continn that there have been no events fiom 3 1 December 2009

to the date of this report, which need any adjustments on the figures or the disclosures in the financial

statements

The Board of Management and the Executive Omcers

The Board members and the Executive Ofiffin of the company during the year and as of the date of

thii report include:

The Board of Management

Full names

Mr Huynh Cao Nha

Mr Tran Thanh Bach

Mr Ta Quang Tu

Mr Dang Huu Thanh

Ms Ho Thi Phuong Thao

Ms Nguyen Thi Kim

Mr Tran Ngoc Phuong

Ms Tran Thi Kim Hue

Position Chairman Member Member Member Member Member Member Member

The Board of Supervisors

Ms Huynh Thi Yen Nhi Chief of the Board 30 September 2004 -

Ms Do Thi Ngoc Lien Member 30 September 2004 18 May 2007

Ms Nguyen Thanh Hoang Tram Member 17 May 2007 08 October2009 : ~ N G TY

T O ~ N Vr

Mr Ta Quang Tu Vice Director 10 November 2004 -

Mr Nguyen Khac Giang Vice Director 16 October 2009 -

Auditors

Auditing and Consulting Company Limited (A&C) has performed the audit on the company's financial

statements for the fiscal year ended 31 December 2009, and has expressed its willingness to be

appointed the company's external auditor in the coming year

REAL ESTATE 11 JOINT STOCK COMPANY

REPORT OF THE DIRECTORS (cont)

Confirmation of the D i m

The Directors of the company are responsible for the preparation of the financial statements to give a

hue and fair view of the financial position, the business results, and the cash flows of the company for each of the company's fiscal year In order to prepare these f m c i a l statements, the Directors must:

1 select the appropriate accounting policies and apply them consistently;

make judgment and estimates prudently;

announce the accounting standards to be followed for the material issues to be disclosed and explained in the financial statements, and;

prepare the financial statements of the company on the basis of the going-concern assumption, except for the cases that the going-concern assumption is considered inappropriate

The Directors hereby ensure that all the requirements mentioned above have been followed when the financial statements are prepared, that all the accounting books of the company have been fully recorded and can fairly reflect the financial position of the company at any time, and that all the financial statements have been prepared in compliance with the prevailing Vietnamese accounting

system and standards

The Directors are also responsible to protect the assets of the company, and consequently have taken appropriate measures to prevent and to detect thuds and other irregularities

We, the D i o r s of the company, hereby c o n h that the accompanying financial statements and the notes to the financial statements have been properly prepared and have given a true and fair view of the financial wsition as of 3 1 December 2009 the business results and the cash flows for the vear then ended of k e company in compliance with the

other related regulations

AUDITmG AND CONSULTING CO., LTD

ON THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED 2009

O F REAL ESTATE 11 JOINT STOCK COMPANY

THE SHAREHOLDERS, THE BOARD O F MANAGEMENT AND THE DIRECTORS

We have audited the accompanying financial statements for the fiscal year ended 2009 of Real Estate

11 Joint Stock Company, including the balance sheet as of 31 December 2009, the income statement,

the q s h flow statement and the notes to the financial statements for the fscal year then ended, which

was prepared on 02 April 2010 (from page 06 to page 26)

The preparation and the presentation of these financial statements are the responsibility of the

company's Directors Ow responsibility is to express an opinion on these financial statements based on b

our audit

We have conducted our audit in accordance with the Vietnamese Auditing Standards These standards

require that we plan and perform the audit procedures to obtain a reasonable assurance that the financial

1 statements are free from material mistakes The audit is developed on the basis of our performing the

sampling method as well as applying the necessary examinations and tests of evidences supporting the

amounts and the disclosures in the financial statements The audit also includes our assessing the

company's compliance with the prevailing accounting standards and system, the accounting principles

and methods applied, the material estimates and judgments of the company's Directors as well as our

evaluating the overall presentation of the financial statements We believe that our audit has provided

reasonable bases for our opinion

Auditor's odnion

In our opinion, the financial statements referred to above give a true and fair view, in all material

respects, of the fmancial position as of 31 December 2009, the business results and the cash flows for

the fiscal year then ended of Real Estate 11 Joint Stock Company in conformity with the prevailing

Vietnamese accounting system and standards as well as other related regulations

This report is made in two languages (Vietnamese and English), both of equal validity The Vietnamese

version will be the original for reference when needed

For and on behalf of

Auditing and Consulting Company Limited (A&C)

9

Do Thi Mai Loan - Auditor

Audzt Certificate No B 0080/KTY Audit Certificate No D.0085KTV

Ho Chi Minh City, 02 April 2010

*mul*nal- A world-wide orgmnizstion of profe&onnl accounting R m s and business advisers

- REAL ESTATE 11 JOINT STOCK COMPANY

- Address: No 205 Lac Long Quan, Ward 3, District 11, Ho Chi M i City

2 Provisions for M u a t i o n of short-term investments 129

1 Receivable @om customers 131 V.2 83.846.714.430 84.933.724.305

2 Prepayments to suppliers 132 V.3 17.417.139.918 17.642.330.877

Receivable according to the progress of consmaion

3 Taxes and other accounts receivable from tqe State 154 V.6

This Jt&ment should be read in cag'unction with the note~ to thejinanciol statemeno

REAL ESTATE 11 JOINT STOCK COMPANY

Address: No 205 Lac Long Quan, Ward 3, District 11, Ho Chi M i City

I Long-term accounts receivable 210

1 Long-term accounts receivable h m customers 211

2 Wo&g capital in m a t e s 212

2 Investments in business concerns and joint ventures 252

4 Provisions for devaluation of long-term investments 259

V 'Other long-term assets

1 Long-term prepid expenses

2 Deferred income tax assets

3 Other long-term assets

TOTAL ASSETS

This statement should be read in conjunction with the ~ l e s to thefinancialstatements

REAL ESTATE 11 JOINT SrOCK COMPANY

Address: No 205 Lac Long Quan, Ward 3, District 11, Ho Chi Minh City

Long-term accounts payable to suppliers

Long-term inter-company payable

Other long-term payable

Long-term debts and loans

Deferred income tax payable

Provisions for unemployment allowances

Provisions for long-term accounts payable

Differences on asset revaluation

Foreign exchange diffhnces

Business promotion fuad

8 Financial resewed fund

9 Otherfunds

10 Retaiuedeamhgs

11 Construction investment fund

IL Other sourcea and funds

1 Bonus and welfare funds

2 Sources of expenditure

3 Fund to form fmed assets

TOTAL LIABILITIES AND OWNER'S EQUITY

This statemenf should be read in co$wtcHon with the nates to thefiMnci01 statement8

REAL ESTATE 11 JOINT STOCK COMPANY

Address: No 205 Lac Long Qusn, Ward 3, District 11, Ho Chi Minb

FINANCIAL STATEMENTS

For the W year ended 31 Deeembsr 2009

Balance sheet (conk)

1 Leasehold assets

2 Materials and goods kept or processed for others

3 Goods deposited by others

4 Bad debts aIready treated

5 Foreign cumncies

USD

6 Estimates for non-business and project expenditure

This statement should be readin eoyunetion with the nates to thefiMnciof stafements

REAL ESTATE 11 JOINT STOCK COMPANY

Address: No 205 Lac Lang Quan, Ward 3, District 11, Ho Chi Miah City

13 Other profit 1 (loss)

14 Total aeeonnting profit/(loss) before tax

15 C n m n t corporate income tax

16 D e f e n d corporate income tax

17 Prom (loss) after tax

18 Earning per share

Tran Thi Kim Loan

REAL ESTATE 11 JOINT STOCK COMPANY

Address: NO 205 Lac Long Qua, Ward 3, District 11, Ho Chi Minh City

FlNANCIAL STATEMENTS

For the fiscal year ended 31 December 2009

(Indirect method) Year ended 2009

Unit: VND

ITEMS

L Cash flow from operating activities

Prop (los) before tax

A ~ u s t m m t r

Depreciation of fixed assar

Provisions

Gain/ floss) from foreign exchange dierences

Gain/ ( l a ) h m investing activities

Loan interest expenses

@?rdIlgprofd (h) befon

changes of working capifal

Increase1 (decrease) of acu~mts receivable

Increase1 (decrease) of inventories

Increase/ (decrease) of accounts payable

Increase/ (decrease) of prepaid expenses

Loan interests already paid

Corporate income tax already paid

Other gains

Other disbursements

Net cash flowsfrom operating activities

11 Cash flows h m iwesw-actiritlca

1 Putchases and construction of fixed assets

2 Gains fkom disposals and liquidation of fixed assets

3 Loom given and purchasw of debt insbuments

4 Recovery of loans given and disposals of debt

5 Investments into other entities 25

6 Withdrawals of investments in othm entities 26

7 Receipts of loan interests, dividends and profit shared 27

Net cash flows fmm invPstrirg adivities 30

This statement should be read in corqumtion with the notes to thefinanciol statements

REAL ESTATE 11 JOINT SrOCK COMPANY

AdQMs No 205 Lac Long Quan, Ward 3, D i c t 1 I, Ho Chi Minh City

FINANCIAL STATEMENTS

For the fiscal year ended 3 1 December 2009

Cash flow statement (cont)

JJI Cash flow from financing acthlitics

1 Gains from stock issuance and capital contributions

2 Repayment for capital conhibutions and re-purch~ses

3 Short-term and longterm loans received 33 V.11,17 26.253.039.000 74.477.714.000

4 Loan principal amounts repaid 34 V.ll, 17 (73.215.878.437) (7.000.000.000)

6 Dividends and profit already paid to the owners 36 V.29 - (1.440.000.000)

Net cash flows during the year

Beginning cash and cash equivalents

E n d i q a s h and cash equivalents

I

l Tran Thi Kim Lonn

Chief Accountant Director

Th*sta~ementshould be read in coyunction with the notex to t h e ~ i a l s l a t e m e n t s

REAL ESTATE 11 JOINT STOCK COMPANY

Address: No 205 Lac Long Quan, Ward 3, District 11, Ho Chi Minh City

FINANCIAL STATEMENTS

For the fiscal year ended 3 December 2009

Year ended 2009

I OPERATION FEATURES

1 Investment form : A joint stock company

2 Operating field : manufacturing and service

a Mainoperations : Trading houses; building up industrial works, public works and

houses; performing interior decoration services; manufacturing and tradiing construction materials (not at the head office);

designing civil construction works, industrial works, designing total space of construction work; designing interior and exterior construction works, consulting, supervising civil and industrial

construction works; preparing construction investment plans;

investing in hktructures of residential areas and industrial !

parks; leveling ground; providing services of leasing houses, plants and warehouses; providing property services; acting as agent of goods depositing; designing structures of civil and industrial works, leasing offices; manufacbrhg construction materials (not at the head office); executing prefabricated concrete

building components; building up civil, industrial and traffic works, providing serviccs of civil and industrial sanitation;

providing p f i g services; caring and preserving trees; trading household appliances, food, beverage and domestic cigarettes

(except for catering services); Trading real estates (except for services of bmkemge, valuation and real estate center)

II FISCAL YEAR AND STANDARD CURIUZNCY USED IN ACCOUNTING

1 Fiscal year

The fiscal year of the company is from 01 January to 3 1 December annually

The fiscal year ended 31 D e c e m k 2009 is the 5' fiscal year of the company

2 Standard currency unit

The standard currency unit used is Vietnam Dong (VND)

DL ACCOUNTING STANDARDS AND SYSTEM

1 Acconnting system

The company has been applying the Vietnamese accounting system

2 Statement on the compliance with the Vietnamese accounting standards and system

The Directors ensure to follow all the requirements of the prevailing Vietnamese accounting

system and standards in the preparation of these financial statements

3 Accountiag form

Voucher recording

These notes fonn an infegrolpart of and should be readin c@tion with thejirmncial statements 13