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 CONTENTS Contents Report of the Directors Auditor's report Balance sheet as of 31 December 2009 Income statement for the fiscal year ended 31 December 2009 Cash flows statement for the fiscal year ended 31 December 2009 Notes to the financial statements for the fiscal year ended 31 December 2009 Appendii REAL ESTATE 11JOINT STOCK COMPANY REPORT OF THE DIRECTORS 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 December 2009 Bwiness h m 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 & kCompany 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 Prescribed capital Shareholders RESCO Others Total Head office Address Tel Fax Email Tax code VND 12.000.000.000 8.000.000.000 20.000.000.000 Rate (%) 60 40 100 : 205 Lac Long Quan, Ward 3, District 11, Ho Chi Minh City : (84 8)38 587 107 : (84 8) 39 636 186 : resll(@ml.vn : 0300540937-1 Main o @ m of the company: - Trading houses; Building - up industrial works,- -oublic works and houses; - Performing interior decoration services; - Manufacturingandtradingco~ctionmaterials (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 constructingmaterials (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) - A - REAL ESTATE 11JOINT STOCK COMPANY REPORT OF THE DIREaORS (cont.) Fiaandd m i t i o n and business results The financial ~ositionas 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 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 Appointing date 08 October 2009 23 September 2004 23 September 2004 23 September 2004 23 September 2004 23 September 2004 17 May 2008 08 October 2009 Resigning date Position Chief of the Board Member Member Member Member Member Appointing date 30 September 2004 30 ~eitember2004 30 September 2004 18 May 2007 17 May 2007 08 October 2009 Resigning date 08 October 2009 - 12 November 2007 08 October 2009 The Board of Supervisors Full names Ms Huynh Thi Yen Nhi Mr Nguyen Khac Giang Ms Do Thi Ngoc Lien Ms Tran Thi Xuan Hiep Ms Nguyen Thanh Hoang Tram Mr Vo Huu Tam - 18 May 2007 26 October 2007 08 October2009 :~NGTY HWH$Y& T O ~ NVr he Executive offFull names Mr Tran Thanh Bach Mr Ta Quang Tu Mr D h g Huu Thanh Ms Tran Thi Kim Hue Mr Nguyen Khac Giang TU VAN Position D i r Vice Director Vice Director Vice Director Vice Director Appointing date 10 November 2004 10November 2004 10 November 2004 16 October 2009 16 October 2009 Resigning date - - - 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 11JOINT 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: 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 December 2009 the business results and the cash flows for the vear then ended of k e company in compliance with the Vietnamese accounting system and other related regulations alf of the D i o r s T m Thanh Bach Director Date: 02 April 2010 AUDITmG AND CONSULTING CO., LTD AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED 2009 O F REAL ESTATE 11JOINT 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 our audit b Audit backeround 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 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) - Audzt Certificate No B.0080/KTY Do Thi Mai Loan Auditor 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 - Address: REAL ESTATE 11JOINT STOCK COMPANY No 205 Lac Long 3, District 11, Ho Chi M i City Quan, Ward - -C FINANCLAL STATEMENTS For the fiscal year ended 31 December2009 - *- ;< t$.::::.:T-;.;- : ,-2': l.ii - -I.'1 - BALANCE SHEET - , =-&-.+-; -.-\:,>; G.': As of 31 December 2009 J - ~ ~ Unit: VND ASSETS A - Cash and cash equivalents Cash Short-terminvcstmmts Provisions for M u a t i o n of short-term investments III Accomts receivable Receivable @omcustomers Prepayments to suppliers Short-term inter-company receivable Receivable according to the progress of consmaion contracts Otherreceivable Provisions for bad debts 1V Inventories Inventories Provisions for devaluation of inventories V Ending balance Beginning balance Cash equivalents IL Short-term investments Note CURRENT ASSETS I Code Other current assets Shat-term prepaid expenses VAT to be deducted Taxes and other accounts receivable from tqe State Other current assets 120 121 129 130 131 132 133 V.2 V.3 106.405.001.466 83.846.714.430 17.417.139.918 107.721302300 84.933.724.305 17.642.330.877 134 135 139 V.4 5.141.147.118 5.145.147.1 18 V.5 58.828.941.765 58.828.941.765 140 141 149 150 151 152 154 158 V.6 This Jt&ment should be read in cag'unction with the note~to thejinanciol statemeno - - 78399.191.010 78.399.191.010 - REAL ESTATE 11JOINT STOCK COMPANY Address: No 205 Lac Long Quan, Ward 3, District 11, Ho Chi M i City FINANCIAL STATEMENTS For the fiscal year ended December 2009 Balance sheet (wnt) ASSETS Code Note B - LONG-TERM ASSETS I Long-term accounts receivable Long-term accounts receivable h m customers Wo&g capital in m a t e s Long-term interampany receivable Other long-term receivable Provisions for bad debts 210 211 212 213 218 219 IL Fired assets Tangible assets Historical costs Accumulated depreciation F i c i a l leasehold assets Historical costs Accumulated dtpreciation Intangible assets Initid m3 i Accumulated amortization Consauction-in-prow UI Investment property Historical costs Accumulated depreciation 1V Long-term investments Investments in afIjliates Investments in business concerns and joint ventures Other long-term investments Provisions for devaluation of long-term investments 250 25 252 258 259 V 'Other long-term assets Long-term prepid expenses Deferred income tax assets Other long-term assets TOTAL ASSETS This statement should be read in conjunctionwith the ~ l e tos thefinancialstatements Ending balance Beginning balance REAL ESTATE 11JOINT SrOCK COMPANY Address: No 205 Lac Long Quan, Ward 3, District 11, Ho Chi Minh City FINANCIAL STATEMENTS For the fiscal year ended 31 December 2009 Balance sheet ( a n t ) LIABILITIES AND OWNER'S EQUITY A - LIABILITIES I Code Note 300 Current liabilities Short-term debts and loans Payable to suppliers Advancesfromcustomers Taxes aud other obligations to the State Budget Payable to employets Acuuedexpenses Inter-wmpany payable Payable according to the progress of construction -contracts Other payable 10 Provisions for short-term accounts payable Long-term liabilities 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 B - OWNER'S EQUITY Owner's equity Capital Share premiums Other sources of capital Treasury stocks Differences on asset revaluation Foreign exchange diffhnces Business promotion fuad Financial resewed fund Otherfunds 10 Retaiuedeamhgs 11 Construction investment fund IL Other sourcea and funds Bonus and welfare funds Sources of expenditure 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 Ending balance 144557.207.025 Beginning balance 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) Leasehold assets Materials and goods kept or processed for others Goods deposited by others Bad debts aIready treated Foreign cumncies USD Estimates for non-business and project expenditure Tran Thi Kim Loan Preparer h n Thi Kim H u e Chief Acconntnnt This statement should be readin eoyunetion with the nates to thefiMnciof stafements REAL ESTATE 11JOINT STOCK COMPANY Address: No 205 Lac Long Quan, Ward 3, District 11, Ho Chi Minh City FINANCIAL STATEMENTS For the fiscal year ended December 2009 NOTES TO THE FINANCIAL STATEMENTS Year ended 2009 I OPERATION FEATURES Investment form : A joint stock company 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 Fiscal year The fiscal year of the company is from 01 January to December annually The fiscal year ended 31 D e c e m k 2009 is the 5' fiscal year of the company Standard currency unit The standard currency unit used is Vietnam Dong (VND) DL ACCOUNTING STANDARDS AND SYSTEM Acconnting system The company has been applying the Vietnamese accounting system 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 Accountiag form Voucher recording These notesfonn an infegrolpart of and should be readin c@tion with thejirmncial statements 13 ! REAL ESTATE 11JOINT STOCK COMPANY Address: No 205 Lac Long Quan, Ward 3, District 11, Ho Chi Minh City FINANCIAL STATEMENTS For the fiscal year ended 31 December 2009 Notes to the financial statement$(cont.) IV ACCOUNTING POLICIES Accounting convention All the financial statements are prepared in accordance with the historical cost convention Cash and cash equivalents Cash and cash equivalents include cash on hand, cash in bank, cash in transit and short-term investments of which the due dates can not exceed months from the dates of the investments and the convertibility into cash is easy, and which not have a lot of risks in the conversion into cash Inventories Inventories are recorded at their original costs Costs include purchasing expenses, processing expenses, and other directly reIated costs to bring the inventories to the current positions and wnditious Inventories are mmrded in line with the perpetual method Costs of inventories are calculated in line with the two following methods: - As for materials purchased then dispatched for construction work: specific identification method; - As for other inventories: W - i n fust-out method Provision for devaluation of inventories is made when their costs are higher than their net realizable values Net realizable values are the estimated selling prices of inventories less the estimated expenses on product completion and other neceshy expenses on product consumption Trade receivable and other receivable Trade receivable and other receivable are recognized at the values on supporting documents and invoices T w l e fixed assets F i d assets are determined by their historical costs less accumulated depreciation Historical costs of fved assets include all the expenses of the company to have these fixed assets as of the dates they are ready to be put into use Other expenses incurred subsequent to the initial recognition are included in h i r i c a l costs of fixed assets only if they certainly bring more economic benefits in the future thanks to the use of these assets Those which not meet the above conditions will be recorded into expenses during the period When a fixed asset is sold or disposed, its historical cost and accumulated depreciation are written off, then any gain1 (loss) arisen are posted into the income or the expenses during the period Fixed assets are depreciated in accordance with the straight-lie method over their estimated useful lives The depreciation years applied are as follows: k4&s Fixed assets Buildings and structures 5-15 6-7 Vehicles Office equipment 3-5 = These notesfman integralpart &and should be read In coqfvnchvnchon with thefinancialstatements 14 REAL ESTATE 11JOINT SrOCK COMPANY Address: No 205 Lac Long Quan, Ward 3, Ditrict 11, Ho Chi Minh City FINANCIAL STATEMENTS For the fiscalyear ended December 2009 Notes to the financial statements(cont.) Investment property Investment property is pmperty being land use right, a building or a part of building, infiwkmcture held by the owner or by the lessee under a financial lease to earn rental or for capital appreciation Historical cost of investment pmperty includes all the expenses paid by the company or the fair value of other consideration given to acquire the assets at the time of its acquisition or construction Subsequent expenses relating to an investment property that have already been recognized should be added to the net book value of the investment property when it is probable that future economic benefits, in excess of the originally assessed standard of performance of the existing investment property, will flow to the company When the investment property is sold or disposed, its historical cost and accumulated depreciation are written off, then any gain1 (loss) arisen are posted into the income or the expenses during the period Investment property is depreciated in accordance with the straight-lie method over their estimated useful lives The depreciation years applied are disclosed in the Note IV.5 Borrowing costs Borrowing costs are included into expenses during the period In case the bomwing costs are directly related to the construction or the production of an asset in progress, which has taken a substantial period of time (over 12 months) to get ready for intended use or sales of the ass& these costs will be capitalized In the event of general borrowings which are partly used for acquiring, constructing, or producing an asset in progress, the costs eligible for capitalization will be determined according to the capitalization rates applied to average accumulated e x p e n d i i on that asset The capitalization rates are computed at the average interest rates on the borrowings not yet paid during the period, except for particular borrowings sewing the purpose of obtaining a specific asset I I I Loneterm prepaid expenses To& Expenses on tools being put into use are allocated into expenses during the period in accordance with the straight-line method for the maximum period of 02 years A - Capital Funds Capital is recorded according to the actual amount already invested by shareholders The company's funds are extracted and used in accordance with the company's Charter 10 D i d e n d s , Dividends are rewded as an amount payable in the period during which the dividends are disclosed 11 Corporate income tax The company is responsible to pay corporate income tax at the rate of 25% on taxable income The company is'exempted from corporate income tax in 02 years from the fvst profit-making year and is reduced 50% in 03 following years The fiscal year ended 2005 was the fvst profit-making year of the company; thus the company was exempted from corporate income tax These notesform an infegralpavfof andshould be read in conjunction with thefinancial stateme* 15 Y k- REAL ESTATE 11 JOINT STOCK COMPANY Long Quan, Ward 3, Dishid 11, Ho Chi M i City FINANCIAL STATEMENTS * , , * ~ -.:- tax of year 2009 is reduced by 30% and the extented period of payment is after the deadline of tax payment according to the Circular 03/2009fIT-BTC dated 13 Corporate income tax during the period includes current income tax and deferred income tax Current income tax is the tax amount computed based on the taxable income during the period at the tax rates applied as of the balance sheet date Taxable inwme is different from accounting profit due to the adjustments of temporary differences between tax and accounting figures as well as those of non-taxable or non-deductible inwme and expenses Deferred income tax is the amount of corporate inwme tax payable or refundable due to temporary differences between book values of assets and liabilities serving the preparation of the financial statements and the values for tax purposes Deferred inwme tax liabilities are recognized for all the temporary taxable differences Deferred income tax assets are recorded only when there is an assurance on the availability of taxable income in the future against which the temporarily deductible differences can be used Book values of deferred corporate income tax assets are considered at the balance sheet dates and will be reduced to the rates that ensure enough taxable inwme against which the benefits from a part of or all of the deferred income tax can be used Deferred income tax assets and deferred inwme tax liabilities are determined at the estimated rates to be applied in the year when the assets are recovered or the libiliies are settled based on the effective tax rates as of the balance sheet date Deferred income tax is recognized in the income statement In the case that deferred income tax is related to the items of the owner's equity, corporate income tax will be included in the owner's equity of the company - I I i 12 Foreign currency translation The tramwtions in foreign currencies converted at the actual exchange rates ruling as of the transaction dates The ending balances of monetary items in foreign currencies are converted at the actual exchange rates ruling as of the balance sheet date i The differences on foreign exchange and those due to the revaluation of the ending balances of the monetary items are included in income or expenses during the period The exchange rates used as of: 31 December 2009 : December 2008 : ~lf s+' LK VND 17.941NSD VND 16.977NSD 13 Transactions providing against risb on foreign currency translation Tramactions providing against risks on foreign currency translation am considered a kind of insurance against the risks on foreign currency translation in order to secure the other transactions The gains or losses k m the transactions providing against risks on foreign currency translation are included in income or expenses at the same time when these transactions are performed TheJe notesform an integralpart ofandshouldbe read in conjunction with t h e f i n a n c l o l s t & ~ ~ m 16 Ward 3, D i c t 11, Ho Chi M i City year ended 1December 2009 Notes to the financiai statements (mt) are recognized when most of risks and benefits associated with the goods to customers and there are no uncertain factors related to payments, additional costs, or sales returns Sales of service provision are recognized when there are no uncertain factors related to payments or additional costs In case that the services are to be provided in many accounting periods, the determination of sales in each period is done on the basis of the service completion rate as of the balance sheet date Interests, royalty fees, dividends, and profit shared are recognized when the wmpany is able to gain economic benefits h m the transactions and the revenue is determined rather reliably Intemts are recorded based on the tern and the interest rates applied for each period Royalty fees are recognized on the accrual basis in l i e with the wntract signed Dividends and profit shared are recognized when the shareholders or the investors have the rights to receive dividends or pmfit from the capital contribution 15 Construction contracts When the results from the contract implementationsare reliably estimated, For the contracts stipulating that the contractors are paid accordiig to the planned progress, income and expenses related to these contracts are recognized correspondingly to the works a l w completed as determined by the company itself i For the contracts stipulating that the contractors are paid according to the works actually done, income and expenses related to these contracts are recognized correspondingly to the wo& already completed as confirmed during the period the invoices ma&-b the customers .: \~ - When the results fiom the contract implementations cannot be reliably estimated, 3;:- -s $ Income is recognized correspondingly to the expenses incurred, of which the repayment is rather reliably made I1 ZQ Expenses are only recognized during the period as actually incurred INQ TY The difference between the accumulated income fiom the contract already recognized and the accumulated amount in the invoices according to the planned progress of contract implementation is recognized as an amount receivable or an amount payable according to the implementation of the construction contracts 16 Related parties A party & considered a related party of the company in case that party is able to control the wmpany or to cause material effects on the financial decisions as well as the operations of the company The transactions during the year with the related parties are presented in Note W.1 These notesform an i n t e q d p r f of andshould be read in conjmction with I h e f i n a ~ i a / s I a t e m e ~ 17 HI& HirU ATMNV - - 1.L , ' - REAL ESTATE 11J O I ~~ - j - ; - - , < i i - : .=:-, C ~ : - - q:-.:- ' C COMPANY K Address: No 205 Lac Long Quan, Ward 3, District 11, Ho Chi M i City FINANCIAL STATEMENTS For the fiscal year ended 31 December 2009 Notes to the financial statements (cont) V ADDITIONAL INFORMATION ON TEE ITEMS OF TEE BALANCE SHEET Cash and cash equivalents Ending balance Cash on h d Cash in bank Cash equivalents UnderJ-monthdeposit Total - 13.570.261.615 178.900.790 Ending balance Beginning balance Receivable from customers Receivable from house tradingReceivable from construction and installation works Total 348.755.236 142.942.671 13.078.563.708 13.078.563.708 900.769.640 83.846.714.430 Prepayment to snppliers SCREC SINVESCO Saigon Real Estate Consulting Co RESCON Others Total 17.300.839.918 Be.ginning balance 17.304.000.000 115.200.000 93.000.000 40.000.000 90.130.877 i 17.642330.877 I Otherrecebmble Receivable fiom supporting interest for Apartment Block 109 Nguyen Bieu Sales of shares m i v a b l e h m employees Interest receivable from joint venture of Real Estate IB Construction and Trading J.S.C and project of Nga Tu Gi Residential area PMU of District Total 3.737.260.640 82.945.944.790 Ending balance Beginning balance 10.699.694 39.201.096 129.000.000 129.000.000 Ending balance -Beginningbalance 4.616.135.331 45.000.000 4.616.135.331 49.000.000 434.556.808 45.454.979 5.141.147.118 Inventories Ending balance Materials and supplies Work-in-process Total Beginning balance 142.082.790 58.686.858.975 146.052.194 78.253.138.816 58.828.941.765 78399.191.010 These notesform an integralpan ofandshould be read in conjunctionwith thefina11~ial siarements 18 ' , - -+ ,% :- ~ ~ REAL ESTATE 11 ST ~MK Address: No 205 Lac Long Quan, Ward 3, District 11, Ho Chi Minh City FINANCIAL, STATEMENTS For the fiscal year ended 1December 2009 Notes to the fmancial statements (ant.) Increaseal (decmwx) of tangible fixed assets Bnildhgs & structures Vehicles Office equipment Hfstorical costs Beginning balance 2.437.866.120 1.074.414.534 170.775.901 Increases 2.449.780.510 New construclions 2.449.780.510 170.775.901 4.887.646.630 1.074.414.534 Ending bahnce In which: Assets being fully depreciated but still in use - I Depreciation Beginning balance Increases -7Depreciation Ending balance - ~~-~~~~ 525.515.424 882286.909 759.337.330 129.797.736 882.286.909 129.797.736, - 124.554.263 13.452.395 13.452.395 Total 3.683.056.555 2.449.780.510 2.449.780.510 6.132.837.065 1.409.407.017 1.025.537.040 1.025.537.040 889.135.066 W8.006.658 2.434.944.057 1.912.350.696 3.479.844.297 46.221.638 32.769343 2.273.649.538 3.697.893.008 1.407.882333 ? , bookvalues Beginning balance Ending balance In which: Assets temporarily not in use Assets waiting for liqudiation - - - Construction-in-progress Expenses on repairing oftice Increases/ (decreases) of investment properties Historical costs Besinning 6.538.223.637 - balance ~Greciation Ending balance Depreciation 2.921.581.655 - - - - Net book values 3.616.641.982 At of the year end, the company has not been able to determine the fair values of those investment properties The list of investment properties as at the year end is as follows: Accumulated Historical costs depreciation Net book values S h o 418 ~ Hong Bang 139.510.500 126.428.025 13.082.475 3.154.753.279 6.398.713.137 3.243.959.858 warehouse 7'ThoG~goc Hau 3.370.387.883 3.167.835.754 6.538.223.637 Total Investment properties include properties leased to the third party Income and expenses related to the lease of investment properties are as follows: Gains from leasing Direct expenses related to the gains from leasing D i expenses not related to the g a b h m leasing Current year 1.565.272.730 448.806.228 - These notesform an integralpart of ondshould be read in cmjmfion with theflnancial statements Previous year 1.584.345.454 448.806.228 - - 41 , I REAL ESTATE 11 JOINT STOCK COMPANY A d d m No 205 Lac Long Qum, Ward 3, D i e t 11, Ho Chi M i City FINANClAL STATEMENTS For the fiscalyear ended 31 December 2009 Notea to the financial statements (cont.) Long-term prepaid expenses Beginning balance 8.302.208 Goodwill Tools Total Increases - Allocation (8.302.208) Ending balance 10 Other long-term assets Deposit to secure construction contracts 11 Short-term debts and loans The loan from Resco by trust receipt at the interest rate of l%/month is to supplement the working capital serving the production during the year - Details of loans are as follows: Beginning balance Inoreases Amount already repaid Ending balance 12 Payable to snppliem Nguyen Van Dung Nguyen Minh Hung Do Vuong Tu Ung Nho Cuong Nguyen Van Bac Le van s y Sinvesco Hicp Phat Thang Co., Ltd Thien Nam Elevator J.S.C Duo Thuan J.S.C Thu Thiem IDC Others Total 13 Ending balance 1.049.620.238 938.547.161 700.197.846 558.470.828 548.273.123 456.240.800 325.448.265 281.591.951 Beginning balance 1.292.31 1.448 938.547.161 849.1 10.338 558.470.828 548273.123 630.240.800 These notesform M infegrolparl i I - 197.304.070 5.055.694.282 Advances from costomera Advances from customers Advances from customer to purchase the land lot 401 Hung Vuong PMUof District - Chi Lung School Other advances Unearned revenue Total I Y Ending balance 2.318290.547 Beginning balance 1.857.814.747 696.000.000 1,565.603.947 56.686.600 538.719.000 2.857.009.547 of ondshould be read in conjwtcnon with ~hefinonciolsto~emr~~ 20 t = , REAL ESTATE 11JOINT SrOCK COMPANY Address No.205 Lac Long Quan, Ward 3, District 11, Ho Chi Minh City ~ i T e .Y FINANCIAL STATEMENTS For the tiscal year ended31 Dceember 2009 Notes to the financial statements (cont) : ! , ' , i - ' '., 14 Taxea and other obligations to the State Budget Amount Beginning payable balance 943.553.628 1.814.451.569 income tax (5.555.718) 7.504.129.455 Personal income tax 16296.585 48.234.393 122.200.000 94.423.500 Other taxes 3.000.000 Tax on land use right in District - 17.680.798.000 Total 1.947392.436 26.274.138.976 - ~ s:: Amount already paid (1.952.000.154) (24.978.819) (216.623.500) (3.000.000) Ending balance 806.005.043 7.498.573.737 39.552.159 - - (17.680.798.000) (19.877.400.473) 8344.130.939 - Value lrdaed tax (VAp ;t- -.r ?-Thecompany has paidVAm lime with the deduction method at the rate of 10% ~ -~ - - - : j;._.,, 2: - : 5-z k' - ?: Corporate inwme tax SeeNote N.11 Estimated corporate income tax payable during the year is as follows: Current year 44.296.85 1.642 Total accounting profit before tax IncmI(decrease) of accounting profit to determine protit subject to corporate income (1.416.1 1.900) tax: - Increases Decreases Total taxable income Corporate income tax rate 25% Estimated wrporate income t a x p q a b k 10.720.1M.936 Corporate income tax reduced by 30.k 3.216.055.481 7.504.129.455 Total current corporate income tax Previous year (16.471.161.788) - - - s - /- C ~ icr Mu Land rentol The company has paid land rental for the area of 6.939 m2 of land located at No 7A Thoai Ngoc Hau, Hoa Thanh Ward, Tan Phu District and the area of 700 m2 located at No 1915 Vhh Loc Industrial Park, Bi Tan District, Ho Chi M i City Other taxes The company has declared and paid these taxes in line with the regulations 15 Payable to suppliers Salary of employees to be paid There notesform an integralpart of andshould be readin co@auaion wtth theflnoncialsrotemenrs 21 (I{ % \ AdQess: No 205 Lac Long Quan, Ward 3, District 11, Ho Chi M i City FINANCIAL STATEMENTS For the fiscalyuu ended 31 December 2009 Notes to the financial rtptements (cant) 16 Accrued expelwes Warranty fee for the apartment block 336 Nguyen Van Luong Expenses on supervisii improving and growing trees for the apartment block 336 Nguyen Van Luong Expenses on machincry and pressing stake of the lot B of the apartment block 109Nguyen Bieu Expenses on labor for lot A of the apartment block 109Nguyen Bieu Expenses on building new low-tension wires for ATS cabinet Direct labor according to the h a l i d o n of Doi Cau Kho Ward,District Total 17 - Loanfrom DongA ~ a n k ( ~ Loan from Resco Total (b) 996.574.169 1.174.041.086 14.006.668 14.006.668 82.884.898 207.085.852 - 430.000.000 - 356.525.455 86.699.013 1.180.164.748 - 2.181.659.061 Ending balance 100.800.000 19.893.423.754 1.923.665.21 Beginning balance 100.800.000 20.735.705.492 1.871.065.211 698.125.000 438.747.647 23.054-761.612 698.125.000 3793 18.229 23.785.013.932 Loneterm debts and loans - (" Beginning balance Other payable State capital payable to Resco Dividends and loan interest payable to Resco Receiving deposit for leasing space Depositing to perform the contract of work 14A Lac Long Quan Others Total * 18 Ending balance Ending balance 17,677.798.000 - balance 54255,684.000 @) The loan 60m DongA Bank - Branch in Dishid 11 secured by trust receipt is to compensate the land under the project City Horse.This loan has no specific repayment schedule The loan from Resco according to the loan agrwment No 08MD - KTTC at the interest rate of IYdmonth is to give capital for building up the project of high rise block located at No 109 Nguyen Bieu, District 5, Ho Chi Minh City.This loan is already compared with Resco and will be offset against amount receivable from that projeot Details of long-tern debts and loans Beginning Amonnt balance Inereares already repaid Ending balance Long-tenn loan from DongA Bank 54.255.684.000 18.422.1 14.000 (55.000.000.000) 17.677.798.000 Long-term loan fiom Resco 68.017.030.000 7.830.925.000 - 75.847.955.000 122372.714.000 26253.039.000 (55.000.000.~~ 93.525.753.000 Total There notesfonn an intogralP"i of andshould be readm cmgumtion with thefinancial statements 22 - - : , Address: No 205 Lac Long Quan, Ward 3, D i i c t 11, Ho Chi M i City FINANCIAL STATEMENTS For the fiscal year ended December 2009 Notes to the h n c i e l statements (cont.) mployment allowances 26.563.698 29.197.701 (945.000) 54.816.399 Statement onfluctuatwn in owner's equiiy Information on fluotuations in owner's equity is presented at the Appendix Detaik of owner's eq- Ending balance 12.000.000.000 B e g h h e balance 12.000.000.000 Eudiig balance 2.000.000 Beginning balance 2.000.000 Other shareholders Total Divictmlis Dividends already paid during the year: Dividends of the previous year Dividends temporarily paid in this year Total Shares Number of shares registered to be issued Number of shares already sold to the public Commonshares - Preferred shares Number of shares repurchased - Commonshares - Preferred sham Number of outstanding shares - Commonshares - P+ed shares - Face value per outstand'mg share :VND 10.000 Otherfunk - Fund to support the D i and the Board of Management Putposes of approprriPtionfor business promotion fund andfmancial reservedfund Business promotion fund is usedto supplement the company's prescribed capital F i c i a l reserved fund is used to: - Compensate losses, damages of assets and liabilities unable to be recovered during the operations; Compensate the losses of the company according to the decision of the Board of Management - 21 - Bonus and weffire funds = , wning Increases from %%.*"balance extraction from protit Disbursement ~ ~ ~ b h n c e Bonus fund 563.303.937 1.983.520.801 (615.840.000~ 1.930.984.738 Welfare fund 620.729 991.760.401 i156.236.508j 836.144.622 Total 563.924.666 2.975.281.202 (772.076.508) 2.767.129.360 These notesform an ~nfe~ralpah of ondshou[dbe read in conJunctionwith fhep~nclalstotemenLp 23 I REAL ESTATE 11 JOINT STOCK COMPANY Addnss: No 205 Lac Long Quan, Ward 3, District 11, Ho Chi Minh City FINANCIAL STATEMENTS For the fisoalyear ended Decembe~ 2009 Notes to the financial statements (cont.) VL ADDITIONAL INFORMATION ON THE ITEMS OF THE INCOME STATEMENT Sales Gross sales Salesfrom trading houses - Salesfiom construction activities - Salesfrom leasing warehouses andshops Sales from other activities ~eductions: Net sales In which: Salesfrom d i n g houses - Salesfrom conslluction activities Salesfrom leasing - warehouses andshops - ~alesfromother activities - Current year Previous year 103.356.198.675 37.385.881.066 - - 98.782.634.545 2.263.913.070 2.306.014.696 3.636.364 - 98.782.634.545 2.263.913.070 2.306.014.696 35.301.543.959 1.894.509.104 Current year Previous year 46.35 1.492.770 2.31 1.933.983 813.183.681 2376.500 49.478.986.934 629.762.012 49.226.992.191 733.498.250 180.353.478 50.770.605.931 35.301.543.959 1.894.509.104 189.828.003 - Salesfrom eonsfruction contracts Sales from construction contracts recorded during the year Accumulated gross sales fro const~ctioncontracts recorded to the end of the year Costs of goods sold Costs of trading houses Costs of construction and installation (a) Costs of leasing warehouses and shoos Costs of other activities Total Costs of construction contracts and transfer during the year are as follows: Current year 88.912.072 Direct materials Direct labor 450.824.086 Expenses on machinery to execute construction works 9.720.000 General manufacturing expenses 28.535.787.829 Total manufacturing expenses 29.085.243.987 Difference on work-in-process 19.578.182.766 Costs of consbartion contracts 48.663.426.753 Previous year 30.800.599.988 6.850.301.984 389.298.214 40.932.271.376 78.972.471.562 (29.115.817.359) 49.856.654.203 Financial income Interest on time deposits Interest on demand deposits Interest on bonds Total Current year Previous year 128.364.353 36.968.773 These nolwfonn an integmlpnv of andshould be read in coryoryunction with thefimm'd statements 24 3, D i i c t 11, Ho Chi Mii City FINANCIAL STATEMENTS - ' Notes to the financial statements (cont) Administrative overheads Expenses for employees Materials and supplies Depreciation of fixed assets External service rendered Other cash expenses Total Current year 8285.901.31 144.012.991 839.683.069 229.325.270 , 493.656.060 9.992.578.701 Earning per share Accounting pmfit after corporate income tax Increase/(decrease) of awounting profit to determine profit attributable to holders of ordinary shares Profit attributable to holders of ordiiary shares Average ordinary shares outstandiig d&ng the Year Earning per share Current year 36.792.722.1 87 Previons year 1.774.813.026 114.968.295 257249.629 167.594.294 331.711.026 2.646236370 ' B revious ear (16.471.161.788) - - 36.792.722.187 (16.471.161.788) 2.000.000 18.396 2.000.000 (8.236) Average ordinary shares outstandiig during the year are calculated as follov Cnrrent year c uralnary snares o m m m a m g ar me oepnmg or the year 2.000.000 Average ordinary shares outstnuding daring the yeiu 2.000.000 2.000.000 2.000.000 Operating expenses Materials and supplies Labor Depreciation of fmed assets ~ & m a lservice rendered Others Total Current year 232.925.063 W OTHER INFORMATION Transactionswith related parties Transactions wah k g managers and relatedituii9iduaIs Income of key managers: Salary Social insurance, health insurance Allowances Bonus Total Current year 720.64 1.400 These notesfwnt an integralpart of ondshould be nad in coy'unclion with thafiwmiolsmments Previous year 425.134.405 25 REAL ESTATE 11 JOINT STOCK COMPANY Address: No 205 Lac Long Quan, Ward 3, Ditrict 11, Ho Chi M i City FINANCIAL STATEMENTS For the fiscalyear ended December 2009 Notes to the financial statements (cont) During the year, the company has had following transactions with Resco: C u m n t year Providing construction conof the apartment 1.581.615.960 block Ngnyen Bieu Asking for loan to execute the work of Nguyen Bieu apartment block and City Horse 7.830.925.000 Asking for loan to supplement working capital Interest on borrowings payable 2.997.718.262 3.840.000.000 Dividends of the years 2006 and 2007 paid Previous year 36.321.532.603 34.417.030.000 7.000.000.000 13.124.905.492 - As of the balance sheet date, the accounts receivable from and accounts payable to Resco are as follows: Ending balance Beeinning balance Providing construction contract of Nguyen Bieu - 81.632.076.563 80.050.460.603 apartment block 80.050;460;603 81.632.076.563 Totni accounts receivable Short-term loans Long-term loans State capital payable Dividends payable Loan interest payable Total ~feonntspayable Changes in accounting policies On 31 December 2009, the Ministry of Finance issued.the C d a r No 24412009iTT-BTC regard'ig the guidance on the amendment and supplementation of accounting system on currency unit used in accounting, the guidance on the implementation of accounting system applied to foreign contractors, and the guidance on the amendment and supplementation of accounting methods for some tnmsactions The company will apply these reguiations in the preparation and presentation of the financials statementsfrom the year ended 2010 onwanls Changes in accounting estimate During the year, the company has reduced the depreciation period of buildings and structums ' from 19 years down to years because it plans to build up the office building in the next years Such change has made the company's depreciation expenses increase by VND 622.166.334 as compared with those in case of application of the old depreciation period as the company did in the previous year P Tran Thi Kim Loan Prepaver These notesform an integral@ Tran Thi Kim Hue Chief Areonntant Tran Thanb Bach of andshould be readin co&nction with thefinancial statemcnb , REAL ESTATE 11JOINT STOCK COMPANY Address: No 205 Lac Long Quan, Ward 3,District 1I, Ho Chi Minh City FINANCIAL STATEMENTS For the fiscal year ended 31 December 2009 Appendix 1: Statement of the fluctuations in the owner's equity Unit: VWD Capital Beginning balance of the previous year Disbursement Profit of the previous year Extraction for funds in the previons year Dividends shared in the previous year Ending balance of the previous year Beginning balance of the current year Profit in the current year Extraction for funds in the current year Dividends shared in the current year Disbursement in the current year Ending balance of the current year Other funds Business promotion fund Financial reserved fund Retained earning 20.000.000.000 20.000.000.000 20.000.000.000 20.000.000.000 Ho Chi Minh City, 02 April 2010 Y Tran Thi Kim Loan Preparer Tran Thi Kim Hoe CbiefAccountant Tran Thanl Bach Director ... of the Directors Auditor's report Balance sheet as of 31 December 2009 Income statement for the fiscal year ended 31 December 2009 Cash flows statement for the fiscal year ended 31 December 2009. .. District 11, Ho Chi Minh City FINANCIAL STATEMENTS For the fiscal year ended December 2009 NOTES TO THE FINANCIAL STATEMENTS Year ended 2009 I OPERATION FEATURES Investment form : A joint stock company... City FINANCIAL STATEMENTS For the fiscalyear ended December 2009 Notes to the financial statements (cont) During the year, the company has had following transactions with Resco: C u m n t year