FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED 31 DECEMBER 2011

REAL ESTATE 11 JOINT SrOCK COMPANY CONTENTS Contents Report of the Diredo- 3, Auditor's report Balancesheet asof31 December2011 Income statement for the healyear ended 31 December 201I Cash flows statement for the fiscal year ended 31 December 2011 Notes to the fhandal atatemenb for the fiscal year ended31 Decenther 2011 Appendix REAL =ATE I 1JOINT S O C K COMPANY REPORT OF T I E DIRECTORS Joint Stock Company ('Yh oompanfq preseot this report together with for tba fiwd year ended Dccembw 2011 ReaI Estate 11 Joint Stwk Company (previously d e d &use hdiing joint Stock Company of District I 1) was dablished on the basis of the equitbtion ofthe !3ate+wned company (House Tiadiq Joint Stock Company of District 1I) in with the Decision No.5730/QD-W3 dated 31 hcember 2003 of the Chairman of the People's m i t k of Ho Chi M M City The company has k e n operating under the b u s b s s registratioa oertificrde No,4103002793 dated 22 October 2004 granted by the Depa&nent of Planning and lawstmunt of Ho Chi Minh City During its o p d m course,the company has been additionallypntcd the following mwded businas =ghation by the W n t of Planning and hmdment of Ho Chi Minb City: - - The k t a m d d b m h s s registration cc&lab on 02 F h m y 2005, the second one on 25 June 2005 d lkrthipd-onean20 Ju~em7q p d z i g addith~ ~ of tbe business fudons The fopvth arnadtd b u s i m ond a t e dated January 2008 regardingthe change in the addresa of the head o h The fifth amended busin- mghhtion d c a t e datd 15 May 2010 q a d h g the change m title of the Director to General D i , The sixth a m d businem registmtion certiiicatt dated 09 September 2010 regding the change in p d b a d capital ofthe company The seventh mbndodbusiness regktratich d f i c a t e dated 03 October 20 11 regarding the increase iumwclyrital - shareho~dmsRESCO S h capital IVM)) 1.1140.000.000 Ra& (940) 60 The &area ofthe company have been Wed on Fkt Moi Saock Exchange from January 2011 under h e &ofD11 Hdomc Addms Tel : 205L.acImgQuan,W a r d , D h k t l1,HoChi MinhCity Fax : (84 - 8)38 587 107 : (84 8) 39 636 -186- E-mail -Twcods :r e s l l ~ v n :0300540937 - Main op&io11% of the company as in the busitmi mgistmb mtiiicate: Trading houses; Building up industrial wocb, public works and a; Pafarming interior dwxlration s e w i a ; hhuuhctwhg ad inding mmttwtion materials (not at the head o h ) ; Designing civil consindon w o h i d M works; designing total space ofconstruction wwks, d d i i n g inb'riurand War cmmuction wlerks, Consulting s u p d s i i civil and i n d u d d mnshwtion worlts; hqwrins d a n h v e s h a t plans; I n d g in of tesidedd mas and indwhkl parks; teveling g m d ; Providing ~ w i c e aof k i n g how#$ p b aad wmehauses; Providing ptsperty sedccq Acting as agent of g d s dqmihg; X)esignins sbwtum of civil and h h l r i a l work; Lm&bg Manufacturing c m d r d n g materials (not rd tbe head om-); Execllting p d a b h t d umcrete building componentq REAL ESTATE 113OXNT STOCK COMPANY REPORT OF THE D m R S (e) Building up civil, intiand W c wodq Providing services of civiI and i n d d sanitation; Provid'mg pd&g d c a s ; Caring and proservifig trees; Trading howhold appliances, fd, bevcmges and do& cigarettes (except for prrwidihg catering smites); Trtsding d eaEatss, Providing property brokerage swim; Providing property appraisal service; M d ' i d a t e floor mi-, M d i n g propetty c o d t b g semi-; Providing propeaty a d o n swim, Performing pmpty a d d i n g serviw; Managing real atate; Providing s a v k of pteschool d d w , pPimary education, sewnd & , high-school d u d o n , v d d training (not q x d n g at the h d ofice), college (not operating at the head office), university and postgraduate training {not operatbag at the head ofiice);]Providing d u c a t i d spa and-ne Providing other odudcmd -ices * W w o n t h e w9soDexwQP During tbe yew, the company's m w have berm i n c d by VND 98,7 billions, equivalent to 99,58% as compared with t h e of previous ymr mainly dw to the c~cognitimof the remaining income h m transferring An Phu project in District 2, Ho Chi Minh City and the increase in income from constructioa activitias Also in this p, the cmpny has issued sham from its dried earnings to h m s e its pkesctibed capital h m VND 26.000.000.000 to VNQ 36.399.950.000 ~ c i d ~ n ~ ~ ~ The b i a I position as of w b e r 2011, ti10 business 4% and the cssh flows frx the ikcd year ended December 2011 of the company have been expressed in tRe fiaancial statemah a t t d w l to this mport (from page 06 to pap 33), During the year, the company has temporarily d~~ the profit of 2011 according to ttae Meuthg Minute3 ofthe M ofManagemmt on 12 November 2011 as follows: &traction for bwineas p m t i o n fund (05% of profit after tax) VMI 1.790.603.468 - Manfox financial merved fitnd (05% of profit dhtax) VND 1,790,603-468 - -on for h n w and w e b fund (15% of profit after trlx Including the rsm-ons to the B o d of Management and Board of Control) VND 6.802.068.594 Total VND 1033375530 - - ' T h e D h t m o f t h e c o m p a a y h a r s b y ~ t h a t t b e r shave beennocventshm31 DBcembor2011 to tbe date of this report, which need any adjustments on the figures or the dischures in the h n c i a l s&tements The& ar d o f d n r d & e O f f b m T h e ~ ~ a n d t h e ~ v u ~ ~ o f t b e ~ r t u r i n g ~ ~ a n d a s o f t this report inc* Full namw Mr.HuynbCaoNha Mr.T& Thanh Bach Mr.Dang Huu Thanh Mr Trau N p Phtsong Ms Tran Thi Kim Hue Position Cbairnran Member Member Memh Membw Full names Ms.Tim Thi Kim Loan Mr.Vo Kim T h o Ms.Nguya T h h Hoang Tram hition Chid of the Boolrd Member Member mtmgdate -08 October 2009 08 October 2009 08 October 2009 08 October 2009 08 October 2009 Appohth~ date 28 April 2010 Rosipingh - Resignin%date - REAL ESTATE 11 fOINT SrOCK COMPANY REPORT OF TSE DIRECTORS Icmt.'l Full names Mi.T m Thanh Bach Mr.Ta Quang Tu Mr.Dang Huu Thanh Ms Tran Thi Kim Hue Mr Nguya Khac Gang Position G e n d Director Deputy General D h b r Deputy Ganeral D h t m Deputy General Dimtor Deputy #nerd Dkctm a d a t e Rssignhgdate 16 htober 2009 08 M b e r 2009 16 October 2009 16 O c t o k 2009 16 October 2009 - Auditors Auditing and Consulting Company Limited (Adkc) has p e r f o d the audit on the company'e financial statants for the fiscal year ended 31 Decrmber 2011, and has c x p m d its willingness to be appointed the company's auditor n- of the Directow The Directors of the ampany are responsible for the preparation of the fmcial statements to give a true and fair view of the h c i a l position, the business results, and the cash flows of the company for each ofthe company's fiscal year In order to prepam&use financial statements, the Directors must: select appmprhte.accounting policies and apply them consistently; makejudgments and dtnms state clearly whether the ammdng s b n h d s to be applied by ths caarpany are followed and dI ths material incomplirrnoe with these standads are disclosed and explained in the financial statements; d prepare tfie h c i d siatments of fhe company on the basis of the going-concern assumption, except for the cases that the going-concern assumption is considered inappropriate The Dimtom hereby ensure that all the r q h n e n t s mentioned above hrwe been followed when the financial statements are preptued, that all the accounting books of the compnny have been filly recorded and can fairly mflact ths *cia1 position of the company at any t h o , and hat dl the financial statements have been preprvred in complianoe with the Victmnese accounting standards and system, which were issued together with the Decision No 1532006/Q&3TC dated 20 Much 2006 of the Minister of Finance as well as the circulars of the of Fiance giving guidance on tfie irnplemmtathn of the accomtittg system and s t a d d s ofthe Ministry of Finance The D k c h n am also responsible to the assets of the company, and cmsqumtly have tdcen appmprW rnemmm to prevent and to detect h d s and other hquhtm ~ r o won l t-wb We,tba Directors, approve the w p a u y h g financial statements, which can tntly and fairly present the financial position as of31 December 2011, the b u s h m d t s and the cash flows for h e hd year then ended of the Real Estate 11 Joint Stock Company in conformity with the Vietnamtse Accounting Standads a d V i m awounting which were i d together with the Dsciion No 15/2tMQ%BTC datdd 20 March 2006 of the Minister of Finanw and other Cirmlars giving guidance on the appMon of the rmccounling , of the :229 h n g Rhoi SL, Dist.1, Ho Chi Minh City Tel: (84.8) 38 272 295 Fax:(84.8) 38 272 300 Brrtndi ia Ha Moi :40 Gang Vo St,Dong DBDist., Ha Noi City Bmd in Trang : 18 Tran Khanh Du St., Nha Trang City Btanch in C a n l b : 162C14 Tran Ngoc Que St,Can Tho City Headquartws - =Accam.m No.01am12lBmcKTTV AUDITOR'S REPORT ON TEIE FINMCfAt STATEMFNTS FOR THE FISCAL YEAR ENDED 2011 OF REAL =ATIF: 11JOINT STOCK COMPANY BOARD OF MANAGEMENT AND THE DIRECTORS OF REAL ESTATE 11JOINT STOCK C O M P W THE SHAREHOLDERS, We have audited the accompanying financial statements for the f i d year ended 201I of Real Estate I Joint Stock Company, imludii the balance sheet as of Dmmber 201I, the income statement, the cash flow statement and the mks to the financial statements for the kcal year then ended, which was prepared on 09 Febmmy 2012 ( f h n page 06 to page 33) The preparation and the presentation of these financial statements are the responsibility of the company's Directom, Our responsibility is to express an opinion on these h c i a l statements based on our atedit Amuhwwu We have conducted our audit in accordance with the Vietnamese Auditing Stan- These standards require that we plan and perform the audit procedures to obtain a reasonable assurance that the fmancial statements are free h m material mistakes The audit is developed on the basis of our performing the sampling method as well wi applying the necessary examinations and tests of evidences supporting the amounts and the disclosum in the W c i a l statements The audit also h1udes our assessing the company's compliance with the prevailing accounting standards a d system, the accounting principles and methods applied, the material estimates and judgments of the company's Directors as we11 as our evaluating the overall presentation of the financial statements W e believe that our audit bas provided reasonable bases for our opinion b u m airauditor's o~lnions hiring the year, the company has recognid the remaining income from the transfer of An Phu Project in DiMct 2, Ho Chi Minh city and has accnwd an amount of VND 46.649.563.277 for gmeral Mastructure expenditure given to the project's owner to develop the main infrastructure for tbe area of 87ha In which, the compensation for land clwmct is VND42.115.391.503, which is determined on the basis of the surface and temporary unit price of VND 16.214.286/m2 (see Note V.16) This unit price is subject to change after finalization with the key project owner Auditor's oaiplpp In our opinion, exsept for the effects of the said issue, the fmmcial mtments referred to above give a true and fair view, in all material respects, of the financial position as of December 201 1, the business reidis and the cash flows for the fiscal year tRen 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 versign Wl be the original for reference when needed Company Limited (A A d t CertlficafeNo.D 0 9 / ! Ho Chi Minh City, 14 March 2012 ~AZZE; INTERNATIONAL - Nguyen Tbi Phuoc Tien Auditor Audit C e c afe No 1199/Km , REAL =ATE 11 JOINT STOCK COMPANY *: No.205 Lac Long Quan, Ward 3, W c t 11, Ho Chi Mi& City FINANCIAL STATEMENTS Forthu~dparended31~2011 - BALANCE SHEET As of 31 December 2011 Unit: VNI) ASSETS Code Note Ending balance 29,322.059.936 I Cash md msh qaivalents cash Cssb equivalents II Short-term InvesQrtnta Short-term iIwmmm IIL S4ort-k.m accounts rsceQvable Reoeivsrbls from currtomers RepaymentstoappM Short-tenn i a w y m i v a b b Receivable awdhg to the progress of c;on&Wion wnlmcb t h rw8ivable Rovhhm for bad debts XV fventorieo Inventories Provisina hdwaluatian of i n w r i e s v Oteercllmat~ Shmt~pmpidapenses VATtobedoduct4d Taxes d other mamta W l e h n the State 'hrtdlngG o v m b o n d s Othtfcurrent~ Beginningh l a n c e REAL ESTATE 11 JOIWC SCrSCK COMPANY A d b No 205 Lac Long Quan, Ward 3, Distrid 11, Ho Chi Minh City FINANCIAL STATEMENTS Forthe ~ ~ e n d e d ~ 1 Balance & a t (cow) Code - LONG-TERM ASSETS ~~ Tmgbleawts Hisrwical cmts Accrmrdatgd -&'on Fhmcial leasehold assets Historical cmts Accumulated deprectotIon Intangible assets Initid costs AccurnuIated amortization Construction-in-progma III Investment property m e a l co!sb Accudatd~Wop - w IA*tmhirv~t8 lavdmmbinaffil;atea I n w # m m t s i n b u s i n e g s ~ a n d j o i a t w n t u m Othsr longn-i R w i s i i for d e d u a h of long1 TOTAL ASSETS Note Erdhrg hhnce Beginning balance REAL ESTATE 11#IINT SrOeK COMPANY Adbess:No.205 IacLongQum, Ward 3, District 11, Ho ChiMinh City FINANCIAL STATEFwthefjscaIyearended31 ~ b e r 1 Balrncc sheet (w) LIABILITIES AND OWNER'S EQUITY Code Note A - LIABILITIES Current liabilities Short-term debts and Iorurs Payable to supp1ien Advfrom cummm Taxes and other o b l i o n s to the State Budget P@le to empw- I a t w a m p q &le Payable amding to the progress of conslmctioa contracts Other payable Provkhs for shortctsrin accomts payable Bonus and welfare Ainds Trading Government bonds Long-term U i b i l i t h Long-term accoum payable to sltpplim Long-term inter-mnpq p@Ic other long~yabb Long-term debts and loans M i x d incame tax payable Provisions f o r u n e m p l o p e a t ~ ~ P r o ~ o n for s I term 8ccomts payable u p d m Science and tdmology development fund OWNER'S EQUXTY Owaer'r equity * P Capital S b p~~ Other muma dapiCal T w D i f f e r e a o e r s m l ~ ~ F o w i s p m d i i BlisJnesspromotionftntd PimlcldAmd OhEZfimds RetainedEWniU@ Coastractionmvestment fund B u s h armgment supporting fund Other sources and fun& Sources of expenditure Fund to form k e d assGts TOTAL LIABILFIlESAM)OWNER'S EQUITY 7W s&teawnt skwrld h?r e d in coqkmiion w#h tlw to the j l m i a l stofemen# REAL ESCATE 11 JOINT STOCK COMPANY A-No.205LacLwgQuom, Ward3,DisUict 11,HoCJiMinhCity FINANCIAL STATEMENTS For~fiscrliyearendcd31Dbcember2011 Balance sheet (ant) OFF-BALANCE SHEET ITEMS Note ~ I d ~ Matmiah and goods kept or p r o c d for others O&dqS&tedbyothers Bad debts Fomigncmacies: l&habs for non-business and project e x p e n d i ~~ Nguyen Thi Phuong Tam Preparer Rnynb Tbi Yen Nbi Begfanhg balance REAL ESTATE! 11 JOINT SrOCK COMPAW Address: No.205 Luc LwgQuan, W d 3, DMct 1I, Ho Chi Mioh C i FMANCZAL STATEMEPJTS F o r t h s h a l ~ e n d e d 1Decamber2011 INCOME STATEMENT For the hdyear ended 2011 Code Noh ~ummtym nl 1a7.7~8~96.m Sales 01 Muctiom 02 Netsah 10 Vt.1 197.768.4%.963 UofpdsmU 11 VW 141.616390.537 - G ~ p m f f t Fhaebl haome ~ a c l aexpenm l Inwhich: L o a n ~ e r r p e n s e s & AdministratiwWCCb~~& ~ eope-t pr~ni If Othuineome a Otherexpews 13 ~ p m f S t / ( I o ~ ) Id Total aoeou~tingprofit -re tax 15 Cwremt arpoporrte h a m e tir 16 D c t d corporate &mt tax 17 ProfItrikrtu 18 IhmingpersLare - N g u p Tb1 Phuorg Tam m a Thanh Bacb Hlynb Thi Y n Nbi Cbld Aoeowmtant T h statement s W d k d h c u q t n m h w&h the notea to the j l ~ i md r General Dlrsctor o C s Pmvbus year REAL ESTATE 11 JOINT STOCK COMPANY A m : 205 Lac h n g Quaq Ward 3, District 1, Ho Chi Minh City FINANCIAL STATEMENTS For the fiscal year mhd Decmbor 20 1 Notes to the fbnctpl statements (conL) - I m f m e n t s held to W i @ dates I n v w e n t s held to matwity datos are n d e r i d v a financial assets with fixed or identified payments and fixed maturity periods which a company has the intention and ability to hold until the dates ofmatur@ Lomss given md receivubIm Lams and receivables arc aonderivative financial assets with faed or identified payments, which are not listed on the market Financial #sea mailablefor sale Avaihblefor-sale financial asscis are nondtrivative financial am& dckmined as available for sale or not classified as f w c i d mets recognized at fair v a l w tbrougb profit or loss s t a w invheld to maturity dates, loam given and receivables 1- crvrylng mum of a@& msd Financial assets are m q n h d at the a q k i t i o n date and are stoppad be raogtkd at the selling date At the date of W a l recognition, b c i a l asare determined at the q u m n g pridissuing cost plus otfier ws& dmtly relatad to the acquisition or issuance of that financial asset Financial instruments are classified as financial liabilitits or equity instruments upon the dates of initial recognition in confbmity with the n a m and defmitions of financial liabilities or equity instruments Flncutclal lfsbThe company classifies its fwancial liabilities into such 'groupsas financial Iiabilitis remjpbd at f&ir values through profit or loss statement or financial liabilities determind at t h i r allocated values The classification o f t h a financial liabilities depends on the natures and ptuposes of the W i d liabilities and is determined at the date of initial mopition Financial liabilities e c q r k e d atfair v a l w thoughprofif or loss smement Financial liability is c W i e d as hhs liability recognized at fair value through profit: or loss statement if it is held'fbrtrading or is categorid in the group of liabilities reflected at fair value throuj@ profit or loss statement upon W recognition F k i d liabilities will be classi&d as securitim bald for trading if: Et is bought or created mainly for the pllrpose of m a l e in a short tern period., The-cortlpanyintends to hold for the p w p e ofgaining profits in a short term period; It is a derivative financial immment (except derivative hmcial hstmments identified as a fiaancial guarantee contract or m efktiverisk protection dtrummt) Fhancful liubiliries &&mined at their alIocutd vaiw A financial liability is -hied at its a l l d value which is determined equally to the initially recognized value of W &cia1 liability less the principals which a campmy has to repay, plus or minus tbe accumulated ddcations calculated b a d on the actual intemt method of the dibetween the W l y recorded value and the value u p maturity date, minus the dedwtiolls (dikctly or tbrwgh n provision account) due to impairment or since it cannot bs m v d h e notesfam m W p u l p o r i qfandshouldbe d i n cm@ncth wfthtkolinrareJml-m REAL ESTATE I1JOINT SrOCK COMPANY Address: 205 L4bC Inag Qum,Ward 3, Districr 11, Ho Chi Minh City FINANCLAI, STATFMNTS F o r d a e M y a r u n d e d December2011 Actual mtcmt method is a method of ~ S I the C dl& ~ value of m e financial liability or of a group of financial Iiiilitias and distributing incomes or e x p a w in the related period The efbtive intunst rate is the discount interest rate of cash flows d m a t e d to be d a d or obtained in the Wtm throughout t h expeckd life cycle of a h c i a l instrument or in a shorter M o d , if nemtwy, to retura to the curreat net carrying amount of a fmancial liability Initial c-g mtwsrnt of a~nancial ZiaBility At the date ofinitial recognition, the financial liability is determined at the issuing price plus other costs dim@ related to the issuance of that financial liability E q e inmume1 Equity instrument is the cmhact which can p m the remaining benefits in the assets of the company after deducting all of its liabiiies C q p r m dfurmclaI lrrstrrrrrne~~ A campound financial hstmment issued by a company is classified into liability component and equity component, based on the antents as agresd in the as we11 as b a d on the definitions.of a *cia1 liability and an equity instrument The equity component is dckmined as the remaining value of the financial instrument d h deducting the fair vdue of the liability component The vlrlw of a derivative instrument (such as contract on sale option) accompicd with a compmd financial instnrment and not belonging to the equity component (such as the option of equity mversiou) will be presated in the liability wmpment Tho total carrying mount of liability and equity components upon initial recognition will equd to the fair value offinancial instruments W n g W htruments a p b t each other Financial assets and fmcial liabilities will be offset agahst &h other and are rtflectd at their net values on the balance sheet when, and only when, the company: bas a legal right to offset the recognized amounts; and has intention either to settle on a net h i q or to realize the asset and to settle the liability simulraneausly 20 w e n t =porting A business segment is a -ble component of the company that is engaged in providing an iudividual pmhd or service w a group of reW pmdwts or services and that is subject to &ks, and rehvas that are differerttfrom those of othw business segments A %eogcaphictll segment is a d i l e component of the company that is e o w in W d i n g products or s e r v h within a particular ecomtmic &nment arld that is subject to risks rehms h t from those of componmts opmdng in other economic environments 21 Related parties A party is considered a related party of the company in case t b t pnr&yis able to control the company or to cause material effects on the fmancial decisions as well as the operations of the mmpany Parties are a h considerad related parties if they are c o l l ~ v e l yunder the same control or material effects Considering the reMionships among r c W p t i e s , the nature of tbe mlationship is mon important than the I@ form of that r c M d p Tmmctions with related prthduring the year arc presented in Nate VIZ.2 REAL ESTAE I1JOINT STOCK COMPAHY A d d m s : O S L a c h n g Q u a n , W a r d , ~11,HoChiMinhCity FINANCIAL STATEMENTS For the fiscal yearended31 December2011 Notes to the fhmdrl statements (a) V ADDlTIONAL INFORMATION ON THE lTEMS OF THE BALANCE SHEET Cash and m b equivalents Ending balance 672.799.728 11.575.428 Casb on hand Cash in bank Cash equivalents (+) Total Receivable fmm astomem Ending balance Receivable &om house b d h g Redmble from amdrudm and W l a t i o n work8 Total 106.000.000 7.630,443.430 7.736.443.430 Ending balance Saigon Real -ration 17.300.839918 Others Total Ending balance Receivable fmn s u p p t i n ~ b s t Apartment Block 109 Ngnyen Bieu for - VAT bemporarilypaid S a b of sham redwble from ernploytes Ee" ' s d ~ f r o m ~ PEvnrofMct6 Dai Him@Phu A.operty Co.,Ltd ahers Total Mamiah a d sapplics work-in-m Total EadingbaEance 18.648.007 -dug balance 141,3 16.290 REAL ESTATE 11 JOINT StOCK COMPANY Addma: 205 Lac L m g Quao, Ward 3, Digtrict 1I, Ha Chi Minh City FINANCIAL STATEMENTS Forthefisdyearendsd31 Decmber2011 Notes to the ilnaneblstatements (cant.) Historical casts Beginning b a I a w NewCompbd cmshction Ending balance 452345.620 ~ 1.760.3763@6 - 452,345,620 7.383.086.753 206375.901 I n which: Assets fully dcprcciaW but still be& in llse Net book valm Beginning balance Endingbdance In which: Assets temporarily not in USt Assets waiting Ex liquidation I r c m a ~ ~(deaeaw) # of hvestmemt property EbtorIelrlcmt~ Beginning balance 6.538,223.637 hpmciation Transferred to project in-ts (8.538.223.637) Ending halame - Depredation Net bookvalues 3.818.325.530 434,855,172 (4'4253.1 80,702) 2.719.898.107 Investment properties include propertit8 leased to the third party Income and expenses re1 the lease of investment pmpwtiaam as follows: Oains from leasing Direct expenses related to th;e gains from leasing Direct not related to ahe gains from leasing 1.077.299.090 434.855.172 - 1,630.036366 447.937.647 Invtshnenta into assodata ond buhwrs coocerna This item includes the company's inyestment into Dai Hung Phu proeaclr Co., Ltd, According to the busmess registration certi6cate No 0309366923 dated 07 S-ber 2009 granted by the Sewhe of Planning and Inmdment of Ho Chi Minh City, the company has iwested in Dai Hung Phu m r t y Co., Ltd an amount of VND 140,000.000.000, equivalent to 40% of pmwihxl capital of this company h normform an i&&pmt o f a d skowld & read in co~rmnc!ionwith t h e w k d a&&me~rts 22 REAL ESTATE 11 JOINT COMPANY A-205 LaeLongQwn, Ward3,Mstrict 11,HoChiMinhCity FINANClAL STATEMENTS F o r t h e ~ ~ c 1 d e dDscember2011 31 N o h to the fimtldd statements (cont.) DefeffedtDcometaxameta A m to the prevdmg law on m p m t e income tax, the Ioss of any U years is ctvrid forward to o f k t @u& the profit of the following years (for the maximum period of ye=) starthg h m yew a f k the year of loas, and tha tempomy difference can be deducted without the limit of time The & f a d income tax assets are not recognized for these amounts sin- thsre is litde possibility for the company to enjoy the tax benefit applied to the taxable income in the fume 10 O t h e r l o ~ t e m ~ Deposit to secure construction contracts 11 Short-term debts and loans Ending balance Short-term I m b m banks Shurt-term fiom other or@&ons - and individuals Total DetaiIs of loans me rnfolcorus: Beginning balance Incmsss Amount already repaid Ending balance Eaditm balance Mr.N g u p Van Dung Mr.Nguyeo Minh H u g M.DOVuongTu Mr.Ung h h Cuoag Nguyenhpte Mr.Le Van Sy T m Ngoc Vu Entity Hiep Phat Thaq Co., Ltd others Total 13 Advnmcesitomcmtomtm Advmm for pmbming h d T k e no& fmm ktegralpart of a d should bs read h c ~ w t t d l with n fhfhmcial sk~&nwrn 23 REAL ESTATE I 1JOINT SrOCK COMPANY Address: 205 Lac Lwg Quaa, Ward , ' ~ i s t r i1~1,t HOChi Minh City FINANCIAL STATEMENTS For the &cal yar ended December 203.1 Notes to the f h a ~ c hstntementl l (W) 14 Taxea and other obligations to f be State Budget mmbalance VAT on b d sales Corporate income'tax P e m d income tax LmdmEal - 3.968.360.482 278.470.324 - Oebertrrrres Propeaty tax of An Phu Project in District 2, Ho Chi Minh ciiy Total 4.246.830.806 - Amount payable 3.681.864.296 8.957.638.612 881294.038 509256.593 3.000.000 Amomt almdy paid (3.175.844.923) (4.141.124.701) (926.358.5 11) (509256.593) (3 OOO.OOO) 3.076.996.1 15 (3.076.996.1 15) 17.110,049.654 (llA332380.843) Corporalc hwme trrr The company is rssponshle to pay a p m t e income tax far its -1% h Ending b c e 506.019.373 8.784.874.393 233.405.85 - 9.524J99.617 e at the rate of 25% &hated corpomtc income tax payable during the ysar is as follows: Total accounting profit before tax Incmsd(dccmse) ofaccounting profit to determiae p d t subject to c~porateincome lax - hcwmes Demufes Income subject totax - Inoomc exem* h n tax Loss ofpmious year b r o u g h t M Taxabb i n m e coprate income tax rate ~edoorpo~atc~~a#payoblc 25% & 790.43UlI1 htdrentd The company has paid hnd rental.for fhs ares of 6.939 m2of hand located at No.7A T h d Ngoc Hau, Hoa T h h Ward, Tau Phu DMct and the m a of 700 ma I d at No I9/5 Vinh Loc Binb Tan D h i d , Ho Chi Minh City hdushhl m m The company has & c l a d and paid these trrxes in line with the r e ~ o n s 15 Paynblttoemployea Salary of employees to be paid k notes fman -pmr oforsdshdd be read & mnjswtiw with thapMlrctals&&~ff~n& 24 REAL ESTAtE 11 O m STOCK COMPANY A d h 205 Lac Long Quan, Ward 3, Dishid f 1, HOChi Miah City FlNANCIAZ,STATEMENTS Forthe f i ~ ~ e n d s d 3I)ecember2011 Notes to the hanctal rtatementa (cont.) Ending balance Accrual for transfer of An Phu Project in District 2, Ho Chi Minb city (*) Warranty q e m a ofwork at Chi LangSchool Accrual for wrgenses of mmhwtion works Others Total (*) Beginning bala~ce 46.649.563.279 183.656.853 2.624.518.757 3.567.728 49.461.306.615 This is lhe mount for general inftastructure givea to projeot owner to develop d ~ emain h f m h c t m for the a m of 87ha, in which, the compensation for land clamnce is VND 42.1 15.391.503 17 Other payable Payable for quithation Payable to Ram DhrW - Lorm ifitemst q e s Receiving d e p d f i r lasing sp&ce Depiting to perEorm the contract of work 14A I gQm OtIlm Total 18 - 320.191.632 2392.051.632 h a w and w e b m faads Disbarawments during the Increase due toexhetion hmpro6it 4.599.078.108 3.581 206.937 1346386.466 1.790.603.468 Beginbalance Bonus fund W e bW Other increme - 53.9 10.000 Eadiug balm(698.652.503) 7.481 -632,542 (883.654.457) 2.207.245.477 year Total 19 Botws h d to Executive OfGcers a 1,187.620.856 1.411399.189 7.043.885.430 6.7m389594 - (658.173.470) 1-950.846.575 ~ ~ , 0-0.430) 11.639.724594 M o m for m t a payablt This item includes the provisions for the project of aparttllent budding at 336 Nguyen Van Luong Stufemnt mjhct&ns iro owner's qu& I n f o d o n on fluctuations in owner's equity is p m m t d at the Appendix on DhUn& Divideds a h d y j ~ during the year, Dividends of the previous year Advance for divide& Total 34 REAL ESTATE 11 J O W STOCK COMPANY Addrcss: 205 Lac Long Quan, Ward 3, District I, FINANCIAL STATEMENTS Ho Chi Minh City Forthe f i s c a l ~ m d c d ~ 1 Now to the 6naadal statements ( m t ) VL AaDrnONAIL r n R M A ' M O N ON TEm ITEMS OF THE INCOME STATEMENT - Sales&m trmq&rring r d m t d a Salmj5vm comhra:h mtbifks Saltwjvm Ieming w m h e s d s h p - SaIesfrom othr acthiria Dbductim: Scrlesfim wawferring red estates - - Toid cOtm O f t m d k h g real-€smes(*) Costg of consnraction activities (*) Costs of leasing warehouses d shops C O Sof~ -8s Total (*)Cm of txmshudon contracts and real estate irm& during the year arc as follows: Directmmrids E x p m s on machinery to &mute d o Curreat year P d w ymr 20.345.318.488 1.079.372,688 n worb Generalmaadcmingqmsts TdmaJl#ad* qemes Difference on work-in-pmcess Chm of m e n conand real estate tmmikm Current y a r tnkrest on tmn deposits lnterestondemandTotal Expenses for employees Camnayemr 10.112.308.620 -ma year 7.894.157363 Matmials and supplies Depreciation of&ed assets Extend d c e rendered Other expenses Total Tkrje not8sfbrm m integrolm ofand&&bo d i n c w t h lPfrh theflt~~~c~al-a#* 26 REAL €STAT€ I 1JOIHC SrOCK COMPANY Addwss: 205 Lac Long Qum, Ward 3, District 1I, Ho Chi Minh City FlNANCtAL STATEMENTS F o r t h e l i s d y a r d hc4mk2011 N o w to the financial statemah (cmL) Earning per share A m w i n g profit after mpmtc income tsx h d ( d e c m s e ) *-fo profit to dekmine profit attributable to holders of ordinary sham Profit d W l e to hofdm of ordinary s h a m A v q ordinary h s outshdhg during the year (*) EarniBg per aha* Carrent year 36.563,119.057 - - 36.563.1 19.057 3.639.995 (*)Average d i n m y sharus ouManding during the year are calculated as follows: Cl~ffentyear O r d ' i sham outstandingat the beginning of the Y2.600.000 EEcts of ordinmy shares i s s u e d i n S ~ 1 from the retained etrraings 1.039.995 Avemge odinary sham onb4mdi.g during the Year 3.639.995 Previous year 2.600.000 1.039.995 3.6393% Ia the year 2011, the company has i n c d its prescribed capital h m the retained earnings of 2011 Therefore, &e m i n g sham of tfme previous year has been adjusted acoording to the quantity of sham adMmaIly k m d 'his retmactive dj-t bas led to a decrease in eaming per per~ofthe~ou8~~VNDl2.189toVND8.706, Cumt 20,463.056.683 1.540.424.550 953.783 -887 1.65 1.4%.960 64.754.013.456 Materials atad supplies Labor Dqeciatim of fmad assda Extend d c e rendad ohms Total P d m year 1.403.801.850 8.691.35 7.207 1,430.575.797 io9sz.n- ML ADDlTIONAL l N F O ~ T I O N ON THE lTEMS OR 'IBE CASH FLOW STATEME - - - C u r r r tysar capital frcm retained the acaunts =&able against the &atrind long-tenn -1 ReSc~r Increasing -bed 10399.950.000 -us year 6.000.000.000 O f f s d q writs receivable agaiagt 1inter@ expenses payable for Nguyen Bieu Aparbmt Building Thsse n o t c sm ~ 10361,375,577 qfddaAdsAosrddbe m d h-c with thploanCiaIstatamAbr 27 REAL ESTAtE 11 JOINT SrOCK COMPANY A* 205 Lac Lorig Quan, Ward 3, District 1, Ho Chi M i City ?ZNANCIALSTATEMENTS Forthe fid)laarendod31 ~ b e r 1 Not= to at h a a d statements (cont.) YIII OTgER INFORMATION Application of new aecomtmg reqdrements On 06 November 2009, the Ministry of Finance issued the Circular No,210/2009/TT-BTC giving guidance on the application of tbe I n ~ o mAccounting l Standatds on presentation of financial statements and notes to i n f o d o n on financial instruments The requirements of this Circular is applied to the company's p r e p d o n and presentation of the financial statements from the year 2011 onwards* To meet the requirements of this Circular, the oompany has supplemented ths No- fiom VII.3 to VII.7 as below Additionally, this Circular a h raquim the- company to toview the terms of the financial insbmmt to determine whether it contains bod^ a liablity and an equity oomponent The component classified as finaoci liabiIity in a c o r n p w l financial instrument will be presented s q m t a l y -.the m p m t dassifmi as financial asset or -equity in the balm= sheet The requirements of this Circular not a f f e c t the fmcial position and business results of the company since it has not issued any compound financial instrument Trawa&w with related pwtia Tmmadbns w&h kg pasomand d e r d a t e d in&uUmh The company's key perms aad other related idividds include the members of the Board af Management, the Directors, the Chief Accountant and their family membtrs Income of key m u q m is as follows: ~arrentyear 2393 -630.000 Salary P&OU gar 2.163.377.400 Allowances Bmus Social inmame, health insum-, unemployment insuranoe Total 3.61&97&@00 57.491.640 3.681.891A40 ~ ~ w&h h e r na-s Other related party ofthe ownpany only includes Resca - the parent company During the year, the company has had foHlowingtransactions with Rexa Curmot year Providing -ion contmct of Nguyen Bieu apartment bid 10361375.577 C k h t b g accounts d v a b f e against loan interest expenses payable for Nguycn Bieu Apdment Buildii 10.36 I 375.577 (Mijetting 8ccounts receivable against dividends ~a~able 1,036.137.558 Payment for dividend of the-* 1.363.862.442 These note#* m &t&gdpa*t o f a d shouid be d iA c a q b d o 1 ' with the-lal sta&- 28 REAL ESTATE 11 JOIM STOCK COMPANY Address: 205 Lac Long Quan, Ward 3, D i 11, Ho Chi Minh Civ FINANCIAL STATEMENTS For the ljscal year ended h a m h 20 11 N o h to the financial s t a t a n d (ma) As of the balance sheet date, the balm- with Rssco are as foIlows: Payable for %&-owned capital Payable for dividends Payable for loan interest expensas Total amount payable Segment informadion The company's segment information is m t e d accdiug to basin&s segmmbi and geographical segments The main segment report is fbr bsegments on the h i s of organidon and m a sbwtm as we11 as the inbmd financid reporting frame of the company B I L S ~ S ~ ~ ~ ~ I S Tha company-hashad the major business segments as follows: Trading in d &aia tmdming &estate pmjects Construction and installation: providing cmstmction and installation mice$to civil - ~ ~ Wws: selling materials, leasing ware- ~ stores, etc Business rcml@ iixd assets and o&or long-term assets as well as the value of large non-cash expenses of business segments ofthe mmpany are rrs follows: Tra- in real wtatal Cumtrt year Net sales to external customem 138,940265,927 Net M h among business pro^ F h a u d inane F k i a l expses othilmmt -=w= olwnt OOFporate bheome t w D o M corprw income tax * Prof#*- Comtrwctioa and k t a l l a t l w 5628238.362 Othm 2.539.W,674 Edwlons Total RE4L ESTATE 11 JOINT STOCK COMPAHY Ho Chi Minh City Addrew 205 Lac Long Quan, Ward 3, District I I, FINANCIAL STATEMENTS For the fiscal year ended December 201 Nota to Be fbtlaeiPl statemunts (cant.) Tradiiglnrepl Cmstmctioa estatts md hstdafjon Total ExclHdors Otbm T o w &ptddm und tmuH&&n of prtpafd Ion- Total wkh of h g e n( BLp- anti aihcation of Coagmm prqpadd Assets and liabilities of business segments of the company are as fbllows: Condructfolr Tmdiug in real and ~tatm tllstalhm OtLem Exclllsionr b d h g ImBPnCe DW ~SS&S of ~ g t ~ e n t 160.089.603.570 7.732.418.474 77.458.717 Assets alloclltBd to segments 2,484.849503 1.033.580.508 35.640.707 Assetsnotdlocatsdto Total 167.899.480.761 - 3.184375.156 174M7.92&635 g m - To#rla~& Direct l i a b i l i of L a i 3.564.070.718 47.534.472.306 b ~ ~ t 6.412.624.090 6.387.246.666 liabmk - 1.469.127.728 o 25211.750 not 55.416.224.124 6,412.758.416 2455-707.566 842M69m106 * b - Total IlabWSks V - - m The oprations of the oompany take place in Southera Vietnam Fair valuw of hameid asseb and tlabititka Bookvalue EPdimg balance Mama Financial assets Cash and cash Bquivahs RoceivabIehcwomers 684375.156 7.736.443.430 11.301.881.420 1.687.511.145 Fair value^ EndinrbaQlmce Waaiar balance 684375.156 1301.881.420 7.736.443.430 1-687,511.145 REAL ESTATE 11 JOZMT STC)CK COMPANY A* 205 Lac Loag Quan, Ward 3, District 11, Ho Chi Minh City FINANCIAL STATEMENTS For the ikdyearmded 31 Dccwnbw2011 N o h to tbe financial statements s con^) Book valw Fair values Financiall l a b w a Payable to u~plitrs Loornsanddobts PayabIe to emplow AccrudeOther payable Total Fair value of financial assets a d financial liabilities is reflected at the mwnt for which an asset cauld be exchanged, or a liability scttlsd, betwsan howledgable and willing parties in an arm's length -saction The oompany has d the following mettbods and assumptions to determine the fair value: pair value of cash on hand, short-tenn bank deposit$ amounts receivable firm c m t m m q amounts payable to supplks and t h short-term payable are equal to thdr b o k & s h e thfinancial instmnmts have short term 5, CanlrtemIa The company has had no oolbmls to others m well as received no mllaterals from others as at ISocdm~2010and 31 ~ b e r l Credit risk Credit risk is the risk tbat a contractual par&ym o t perform its fisponsibilities, leading b a financial loss to the company The company is exposed to d t risks h n its opating activities (mainly from amounts receivable h m its cwbmers) and f b n ib h u c i n g activih ( W y from its cash in bank) kdw&b~mea&mm The company m i d d m its aedit risks by timing t m s a c b w only with the entities which are d to b m god h i d positions Ths company's $ccountaats follow up the acamts mcivabb from customem to speed up &c move& Additiunally, the tmpny'b M b l e are h m various cusbmm, Tbemfore, the c d i t ri& not on any c-curstomers CagRirrbd M o @ o f k ~ ' s c a s h m W i s i n h ~ m d ~ b a n k s i n V i ~ ' I t h e c b e h e w tbat the credit risk level fiom cash in bank is low Uqnidity h k Liquidity risk is the risk thatthe company will bave dificultia in paying its financial liabilities Tbe Dimtors of the compaay take the highest rcqmml"bility to liquidity risk management.' Tbe company's liquidity risks drily arise from the diffhnces in matrrrity dates of financial mse& and financial liabilities The company's a p p a h to risk management is to maintain an appropriate mount of cash and cash equiwht, which is s u f i i c h t as judged by the Directors, to meet the company's operation h d s and to m i n k the effects of cbanges in a s h flows to the company Tkese HB form mr -part of ads- k rsadh c o @ m d m with ths-kd mtemene 31 REAL ESTATE I1 JOINT STOCK COMPANY A* 205 IACLong Qm, Ward 3, District 1, Ho Chi Minh City FINANCIAL STATEMENTS Forthe fiscal year d d 31 Recember 2011 Note to the haneirl statemeats (taut.) The terms of payments to financial liabilities are b a d on the undhunted payments supposal to make according to the contracts M i a are as follows: From year Under 1year to y m Over 05 yeam Total Eadiag balance Payable to suppliers Loand* -je+ to mployets A d - - Other payabIc Total wntw Payable to suppliers Loau and debts Payable to employ#s Accrued e x p l u e l Other payable Total The risk concenimtion level from payments to f-ial liabilities is low The compmy has sufficient capracity to settle all due a s from its cash flows from operations and from the amounts receivable from ma- &ancia1 assets Market M m Market ti& is the risk that &e fair value or ash f l m in the future of a hmcid indmmmt will fludwk due to changss in &at prim The market rib include three tyges: Mi currency risk, inkrest rate risk and other price risks Fo-n cummcy &k Foreign cumncy risk is the risk that the Eair value or cash flows in the future of a financial ~mtwillfluctWedwtachaqpinexchygemtes, The company is exposed ta no forsign c w a m y risks sin- the sales and purchases of goods and sewices oftbe company am made in unit c m q of VND hhmst rate* I n t d m k r i s k i s t h e riskthattbefakvdw orcashflows inihefutureofafitllrncial hsinmmt will fluchub due to c b a n p in market W rabs The company's interestrate risk is mainly related to cash,short-term deposits and loans The w m p y has managed its interest rate risk by analyzing the d e t interest rates in order to get h e interest rate that most benefits tbe mnpany and within its riskmanagement approach, The company has not dona the sensitivity analysis to htmwt rates sin= the risk due to -c in- in rate as of the balance sheet date is not s i g n i h t Thew not#@m mi integral- qfandshollld bs rond in cm&mh!on with ch4jhmcM &ternen& 32 REAL m A T E 11 JOINT SrOCK COMPANY -205 Lac LongWard3, District 11, HoQliMinhCiLy FINANCIAL STATEMENTS F o r t h e ~ p r ~ Docomber2011 Now to the tiaanebl statements (mt) Uth8rpritx A u k Other price r b am tbe risks that the fair value or cash flows in the future of a financial instrument will fludmte due to changes in market price, other than !he changes in interest rate and exchange rate?This issue has not d any e&cts on the company's finadd shtcrnetxts Npyeb Tki Pbuoqg Tam ... Chi Minh City FLNANCLAL STATEMENTS For the fiscal year ended December 2011 NOTES TO THF ,FINANCIAL STATEmNTS For the Myear mded 31 December 2011 OPERATION FUTURES 1rve.stmentform : ajoint stock company... fairly present the financial position as of31 December 2011, the b u s h m d t s and the cash flows for h e hd year then ended of the Real Estate 11 Joint Stock Company in conformity with the Vietnamtse... mks to the financial statements for the kcal year then ended, which was prepared on 09 Febmmy 2012 ( f h n page 06 to page 33) The preparation and the presentation of these financial statements