VINACONTROL GROUP CORPORATION
Audited Financial Statements
for the year ended 31 December, 2011
Vinacontrol Group Corporation
Address: 54 Tran Nhan Tong – Hai Ba Trung – Ha Noi
CONTENTS
Pages
REPORT OF THE BOARD OF DIRECTOR
3–5
AUDITORS’ REPORT
6
AUDITED FINANCIAL STATEMENTS
Balance sheet
7-9
Income Statement
10
Cash Flow Statement
11
Notes to the Financial Statements
12-24
2
Vinacontrol Group Corporation
Address: 54 Tran Nhan Tong – Hai Ba Trung – Ha Noi
REPORT OF THE BOARD OF DIRECTOR
The Board of Director of Vinacontrol Group Corporation (hereinafter called as the “company”) presents its
reports and the Company’s financial statements for the year ended at 31 December 2011.
COMPANY
Vinacontrol Group Corporation previously was The Vietnam Superintendence and Inspection Joint Stock,
which was transferred from State Company to the Joint Stock Company under the Decision No
1758/2004/QD-BTM dated 29 November 2004 by Minister of Ministry of Trading.
According to the 6th amended Business Registration dated 21 December 2011, the Company’s major
activities include:
• To inspect specification, quality, condition, quantity - weight, packing and marking of all kinds of the
goods & commodities (including machinery and equipment, production lines , gemstones, precious
and rare metal);
• To undertake overall supervision of the goods during production, delivery, preservation,
transportation, loading/ discharging; Supervision of installation and assembly of equipment and
production line; Assessment, consultant and supervision of construction project;
• Survey on means of transportation, container; Marine survey; Gas-free inspection of the ship before
repairing or scrap;
• Sampling; Test & analysis at laboratory; Product Certification;
• To provide damage survey; Acting as agent for insurance companies in damage survey, adjuster &
settling claim;
• To provide other services : Fumigation, Non-destructive test (NDT); Welding test; Test & calibration
of tools and measuring equipments; Calibration of tank, lighter; Tallying; Sealing; Auditing quality
management system on request of clients;
• To provide inspection services on request and supply certificates for State management purpose of
various fields such as: Origin of the goods; Quality management; Safety & hygiene of the goods;
Balance of investment project; Environment protection (Inspection on industrial hygiene; Test and
treatment of water and waste water); Custom clearance service;
• Check the appropriate certificate bearing capacity of the facility, inspection andcertification of
conformity of quality construction, machinery, equipment, supplies,construction materials (Base on
legal regulations);
• Technology Transfer Services; Check destroyed, not destroyed;
• Calibration and verification of measuring equipment;
• Measure and tabulate the volume of water means;
• Calibration and testing of measuring equipment;
• Technical inspection service workplace safety;
• Construction supervision of civil engineering and industry, supervised areas of expertise: installation
of equipment and automation technology;
• Supervision of equipment installation work; Supervision of technological equipment;
• Supervise installation of electrical equipment - electrical construction grade 4;
•
Supervise equipment installation, engineering technology building;
• Consulting and installation of equipment;
• Consultancy for bidding documents and analyzing and evaluating bids: consulting, installation, supply
and installation of equipment;
3
Vinacontrol Group Corporation
Address: 54 Tran Nhan Tong – Hai Ba Trung – Ha Noi
• Verify the estimation and finalization dossier of civil, industrial, transportation and irrigation
engineering works; consulting project construction (works only when enterprises are eligible under
the provisions of law);
• Import and export commodities entrusted; Service for customs clearance;
• Consult the procedures of equitization, consolidation, acquisition, merger (not including legal advice);
• Training valuation knowledge and technics and other relating technics ( only operate after getting
approval from the competent bodies);
• Trading of real estate;
• To provide hotel & office for rent (excluding karaoke bar and dance room services);
•
Inspection Services and other services under the mandated evaluation of all organizations in domestic
and international;
(For business conditions, business enterprises only if they meet the conditions prescribed by law)
Under Certificate of Business Register dated 21 Dec 2011 by Hanoi Planning and Investment Department,
charter capital of the company was 78,750,000,000 VND (in word, Seventy eight billion seven hundred fifty
million Vietnam Dong).
RESULT OF OPERATION
Profit after tax for the fiscal year ended at 31 December 2011 was: 22,400,122,202 VND
Profit after tax undistributed at 31 December 2011: 16,856,909,770 VND
EVENTS AFTER FINANCIAL REPORTING DATE
Under the acknowledge of Board of Director, there was no significant events after the date of
preparation financial statements which require any adjustment and/or disclosure in Financial Statement
ended at 31 December 2011.
BOARD OF MANAGEMENT, BOARD OF DIRECTOR AND BOARD OF INSPECTION
Members of Board of Management, Board of Director and Board of Inspection of the Company in 2011 and
as at date of financial statement include of:
Board of Management:
Mr
: Bui Duy Chinh
Mr
: Mai Tien Dung
Mr
: Tran Minh Duc
Mr
: Tran Dang Thanh
Mr
: Le Quang Vieng
Board of Director
Chairman
Member
Member
Member
Member
Mr
: Mai Tien Dung
Mr
: Tran Dang Thanh
Mr
: Phan Van Hung
Board of Inspection
General Director
Deputy General Director
Deputy General Director
Ms
Mr
Mr
Chief of Board of Inspection
Member
Member
: Ha Thi Hong Thuy
: Nguyen Quang Minh
: Dang Xuan Binh
AUDITORS
4
Vinacontrol Group Corporation
Address: 54 Tran Nhan Tong – Hai Ba Trung – Ha Noi
The auditors of Vietnam Auditing and Accounting Consultancy Company (AVA) take the audit of financial
statements for the Company – Units eligible for audit organization issuing organizations and listing
organizations trading securities in accordance with the Ministry of Finance and State Securities Commission.
STATEMENT OF THE BOARD OF DIRECTOR’S RESPONSIBILITY IN RESPECT OF THE
FINANCIAL STATEMENTS
Management is responsible for the financial statements of each financial year which give a true and fair view
of the state of affairs of the Company and of its operation results for the year. In preparing those financial
statements, management is required to:
-
Select suitable accounting policies and then apply them consistently;
Make judgments and estimates that are reasonable and prudent;
Prepare the financial statements on the basis of compliance with accounting standards and system and
other related regulations;
Prepare the financial statements on going concern basis unless it is inappropriate to presume that the
Company will continue in business.
Management is responsible for ensuring that proper accounting records are kept which disclosed, with
reasonable accuracy at any time, the financial position of Company and to ensure that the accounting records
comply with the registered accounting system. It is responsible for safeguarding the assets of the Company
and hence for taking reasonable steps for prevention and detection of fraud and other irregularities.
We, the Board of Directors, confirm that the financial statements for the fiscal year ended at 31 December,
2011 prepared by us, give a true and fair view of the financial position at 31 December, 2011, its operation
results and Cash flow statement in the year 2011 of Company is in accordance with the Vietnamese
Accounting System and comply with relevant statutory requirements.
Ha Noi, 19th January, 2012
On behalf of the Board of Director
General Director
Mai Tien Dung
APPROVEMENT OF BOARD OF MANAGEMENT
We, Board of Management of Vinacontrol Group Corporation approve Financial Statements of the
Company for the fiscal year ended at 31 December 2011.
Ha Noi, 19th January, 2012
On behalf of Board of Management
Bui Duy Chinh
Chairman
5
No:
/BCKT/TC/NV7
AUDITORS’ REPORT
On the financial statements of Vinacontrol Group Corporation
For the year ended at 31 December 2011
To:
Board of Management
Board of Director of Vinacontrol Group Corporation
We have audited the financial statements of Vinacontrol Group Corporation prepared on 19th January 2012
including: Balance Sheet as at 31 December 2011, Income Statement, Cash Flow Statement and Notes to
Financial Statements for the year ended at 31 December 2011 as set out on pages 7 to 24.
These financial statements are the responsibility of the Company’s Board of Director. Our responsibility is to
express an opinion on these financial statements based on our audit.
Basis of opinion
We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the compliance with current
accounting standards and system and the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statements presentation. We believe that our audit
provides a reasonable basis for our opinion.
Auditor’s opinion
In our opinion, the financial statements of Vinacontrol Group Corporation give a true and fair view, in all
material respects of the financial position of The Company as at 31 December 2011 and the results of its
operations and its cash flows for the year then ended in accordance with Vietnamese Accounting Standards,
the Vietnamese Accounting System and accounting principles generally accepted in Vietnam.
NGO QUANG TIEN
Deputy Director
Registered Auditor No: 0448/KTV
TRAN TRI DUNG
Auditor
Registered Auditor No: 0895/KTV
VIETNAM AUDITING AND ACCOUNTING
CONSULTANCY COMPANY
Hanoi, 07th March, 2012
6
VINACONTROL GROUP CORPORATION
Address: 54, Tran Nhan Tong street, Ha noi City
FINANCIAL STATEMENTS
for the fiscal year ended 31 December 2011
BALANCE SHEET
As at 31 December 2011
Unit: VND
Code
Note
ASSETS
100 A. CURRENT ASSETS
110 I. Cash and cash equivalents
111 1. Cash
112 2. Cash equivalents
3
4
120 II. Short-term investments
121 1. Short-term investments
129 2. Provision for diminution in the value (*)
130
131
132
133
135
139
III. Accounts receivable-short-term
1. Accounts receivable- trade
2. Prepayments of suppliers
3. Inter-company receivable
5. Other receivables
6. Provision for doubtful debts (*)
5
140 IV. Inventories
141 1. Inventories
149 2. Provision for inventories obsolescence (*)
150
151
152
154
157
158
6
V. Other current assets
1. Short- term prepayments
2. VAT deductibles
3. Taxes and other receivables from State
4. Government bonds resale
5. Other current assets
200 B. LONG-TERM ASSETS
210 I. Accounts receivable-long-term
218
220
221
222
223
224
227
228
229
230
240
241
242
250
251
252
258
260
261
262
268
4.
thuassets
dài hạn khác
II.Phải
Fixed
1. Tangible fixed assets
- Cost
- Accumulated depreciation
2. Finance lease fixed assets
3. Intangible fixed assets
- Cost
- Accumulated depreciation
4. Construction in progress
III. Investment property
- Cost
- Accumulated depreciation
IV. Long- term investments
1. Investment in subsidiaries
2. Investments in associates, joint- ventures
3. Other long- term investments
V. Other long- term assets
1. Long- term prepayments
2. Deferred tax assets
3. Other long- term assets
7
8
9
10
11
12
270 TOTAL ASSETS
7
31/12/2011
01/01/2011
105.095.996.272
109.990.383.701
37.239.676.440
35.539.676.440
1.700.000.000
66.548.141.271
30.880.771.802
35.667.369.469
4.609.944.867
8.776.682.253
(4.166.737.386)
5.981.938.696
9.200.712.583
(3.218.773.887)
43.023.131.280
37.757.305.113
4.164.147.968
1.305.243.693
(203.565.494)
34.597.132.445
33.763.401.746
606.028.011
605.981.600
(378.278.912)
2.891.182.974
2.891.182.974
-
211.877.516
211.877.516
-
17.332.060.711
26.640.767
410.307.782
16.895.112.162
2.651.293.773
53.054.267
366.536.645
2.231.702.861
98.636.822.897
89.069.496.918-
77.046.128.487
68.521.364.915
70.708.553.379
105.187.388.778
(34.478.835.399)
17.057.288.731
18.051.249.643
(993.960.912)
1.303.654.808
6.698.130.000
1.739.730.000
2.300.000.000
2.658.400.000
2.869.195.979
2.814.771.479
54.424.500
30.655.714.866
61.243.921.453
(30.588.206.587)
3.741.009.223
4.465.384.606
(724.375.383)
34.124.640.826
6.398.130.000
1.739.730.000
2.000.000.000
2.658.400.000
2.126.633.572
2.051.633.572
75.000.000
203.732.819.169
187.036.512.188
VINACONTROL GROUP CORPORATION
Address: 54, Tran Nhan Tong street, Ha noi City
FINANCIAL STATEMENTS
for the fiscal year ended 31 December 2011
BALANCE SHEET
As at 31 December 2011
Note
RESOURCES
Code
300 A. LIABILITIES
310
311
312
313
314
315
316
317
318
319
320
323
327
330
331
332
333
334
335
336
337
338
339
I. Current liabilities
1. Short-term borrowings and liabilities
2. Accounts payable-trade
3. Advances from customers
4. Taxes payable to State Treasury
5. Payables to employees
6. Accrued expenses
7. Inter-company payables
8. Excess of progress billings
9. Other payables
10. Provision for short-term payables
11. Rewards and social welfare funds
12. Government bonds resale
II. Long- term borrowings and liabilities
1. Accounts payables-trade
2. Long- term inter-company payables
3. Other long-term liabilities
4. Long-term borrowings and liabilities
5. Deferred tax liabilities
6. Provision for benefit of unemployment
7. Provision for Long-term payables
8. Unrealised revenues
9. Science technology development fund
13
14
15
400 B. EQUITY
I. Equity
1. Contributed capital
2. Capital surplus
3. Other capital
4. Treasury stocks
5. Differences upon asset revaluation
6. Foreign exchange differences
7. Investments and development funds
8. Financial reserves
9. Other equity funds
10. Retained profits/(accumulated losses)
11.Contrustion investment capital
12. Fund for support and arrangement of
422
enterprises
16
410
411
412
413
414
415
416
417
418
419
420
421
430 II. Other sources and funds
432 1. Subsidized not-for-profit funds
433 2. Funds invested in fixed assets
440 TOTAL RESOURCES
8
31/12/2011
01/01/2011
50.136.076.627
25.727.854.986
49.159.739.224
1.386.853.747
1.689.402.302
2.810.408.486
26.900.939.425
599.938.342
15.474.446.027
297.750.895
976.337.403
760.604.848
195.332.555
20.400.000
-
24.956.359.928
893.642.640
2.865.626.499
2.544.917.911
15.365.301.012
33.000.000
3.428.731.366
(174.859.500)
771.495.058
523.438.905
146.756.153
101.300.000
-
153.596.742.542
161.308.657.202
153.596.742.542
78.750.000.000
26.293.591.687
(667.068.512)
27.510.778.247
4.852.531.350
16.856.909.770
-
161.308.657.202
78.750.000.000
26.250.000.000
(852.856.825)
349.518.089
19.548.265.229
3.351.763.623
33.911.967.086
-
-
-
203.732.819.169
187.036.512.188
VINACONTROL GROUP CORPORATION
Address: 54, Tran Nhan Tong street, Ha noi City
FINANCIAL STATEMENTS
for the fiscal year ended 31 December 2011
OFF BALANCE SHEET ITEMS
As at 31 December 2011
Code
Note
Items
1. Operating leased assets
2. Materials & goods on custody or for processing
3. Goods under trust or on consignment
4. Bad debts written off
5. Foreign currencies
- USD
- EUR
6. Not-for-profit and project expense estimates
Prepared by
Chief Accountant
Nguyen Thi Minh Thu
Luu Ngoc Hien
9
31/12/2011
3.405.176.003
100.098,59
5.784,00
-
01/01/2011
1.781.650.341
191.934,99
15.787,00
Ha noi, 19th January 2012
General Director
Mai Tien Dung
VINACONTROL GROUP CORPORATION
Address: 54, Tran Nhan Tong street, Ha noi City
FINANCIAL STATEMENTS
for the fiscal year ended 31 December 2011
INCOME STATEMENT
Year 2011
Unit: VND
Items
Note
1. Revenue from sale of goods and
rendering of services
02 2. Deductible items
17
3. Net revenue from sale of goods and
rendering of services
11 4. Cost of goods sold
Code
01
10
This year
Last year
233.322.348.772
213.923.013.912
18
4.000.000
-
19
233.318.348.772
213.923.013.912
20
183.085.386.009
152.015.213.905
50.232.962.763
61.907.800.007
5.101.199.672
2.818.438.311
9.666.226.974
17.559.399.609
4.763.669.760
3.110.143.471
7.280.774.960
16.598.584.746
25.290.097.541
39.681.966.590
20
5. Gross profit from sale of goods and
rendering of services
21
22
23
24
25
6. Revenue from financial activities
7. Financial expenses
- In which: Interest payable
8. Selling expenses
9. Administrative expenses
30
10. Net profit from operating activities
31
32
11. Other income
12. Other expense
316.347.295
164.170.007
120.883.700
83.004.645
40
13. Other profit
152.177.288
37.879.055
50
14. Total profit before tax
25.442.274.829
39.719.845.645
51
52
15. Current business income tax expenses
16. Deferred business income tax expenses
3.042.152.627
-
5.808.858.015
-
60
17. Profit after tax
22.400.122.202
33.910.987.630
70
18. Basic earnings per share
21
22
23
2.859
Prepared by
Chief Accountant
Nguyen Thi Minh Thu
Luu Ngoc Hien
10
4.333
Ha noi, 19th January 2012
General Director
Mai Tien Dung
VINACONTROL GROUP CORPORATION
Address: 54, Tran Nhan Tong street, Ha noi City
FINANCIAL STATEMENTS
for the fiscal year ended 31 December 2011
CASH FLOW STATEMENT
Direct method
Năm 2011
Unit: VND
Code
01
02
03
04
05
06
07
20
21
Items
I. Cash flows from operating activities
1. Cash received from sales of goods and services and other revenue
2. Cash paid to suppliers
3. Cash paid to employees
4. Interest paid
5. Interprise income tax paid
6. Other reciepts from operating activities
7. Other expenses on operating activities
Net cash flows fromoperating activities
II. Cash flows from investing activities
1. Cash paid for purchase or construction of fixed assets or other longterm assets
22
2. Proceeds from disposal of fixed assets or other long-term assets
23
3. Loans to and purchase of debt intrustments of other entities
24
25
26
27
20
4. Repayment from borrowers and proceeds from sale or lending of
others' loans
5. Investments in other entities
6. Withdrawals of investments in other entities
7. Interest, dividends and profit received
Net cash flows from investing activities
This year
Last year
252.174.477.482
(74.284.275.210)
(96.072.114.010)
209.720.124.321
(51.462.387.490)
(61.599.081.817)
(3.479.045.091)
40.749.051.419
(106.684.935.544)
12.403.159.046
(5.495.342.441)
84.019.870.477
(97.558.086.596)
77.625.096.454
(24.726.711.599)
(19.201.181.536)
124.314.276
31.698.460.000
(7.290.229.600)
(185.109.447.632)
6.627.364.800
137.399.635.887
(300.000.000)
3.561.653.287
(22.003.608.836)
3.254.114.676
(31.958.418.605)
32
III. Cash flows from financing activities
1. Receipts from stocks issuing and capital contribution from equity
owners
2. Fund returned to equity owners, issued stock redemption
33
34
35
36
40
3. Receipts from short term and long term loans
4. Payments of loan principals
5. Finance lease repayments
6. Dividends and profits paid to equity owners
Net cash flows from financing activities
(20.376.980.000)
(20.333.388.313)
(7.087.500.000)
(7.087.500.000)
50
Net cash flows in the period
(29.933.838.103)
38.579.177.849
60
61
70
Cash and cash equivalents - opening balance
Impact of foreign exchange differences
Cash and cash equivalents - closing balance
66.548.141.271
625.373.272
37.239.676.440
28.045.154.355
(76.190.933)
66.548.141.271
31
Prepared by
Chief Accountant
Nguyen Thi Minh Thu
Luu Ngoc Hien
11
43.591.687
-
Ha noi, 19th January 2012
General Director
Mai Tien Dung
Vinacontrol Group Corporation
Address: 54 Tran Nhan Tong – Hai Ba Trung – Ha Noi
Financial Statements
For fiscal year ended 31/12/2011
NOTES TO THE FINANCIAL STATEMENTS
For the year ended at 31 December 2011
(This notes form intergral part of and should be read in conjunction with the accompanying financial)
(Các ghi chú này là một bộ phận hợp thành và cần phải được đọc cùng Báo cáo Tài chín
I. BACKGROUND
Structure of ownership
Vinacontrol Group Corporation previously was The Vietnam Superintendence and Inspection Joint Stock,
which was transferred from State Company to the Joint Stock Company under the Decision No
1758/2004/QD-BTM dated 29 November 2004 by Minister of Ministry of Trading.
Under Certificate of Business Register dated 21 Dec 2011 by Hanoi Planning and Investment Department,
charter capital of the company was 78,750,000,000 VND (in word, Seventy eight billion seven hundred fifty
million Dong).
Head office: No 54 Tran Nhan Tong Street, Hai Ba Trung District, Ha Noi
Main activities
• To inspect specification, quality, condition, quantity - weight, packing and marking of all kinds of the
goods & commodities (including machinery and equipment, production lines , gemstones, precious
and rare metal);
• To undertake overall supervision of the goods during production, delivery, preservation,
transportation, loading/ discharging; Supervision of installation and assembly of equipment and
production line; Assessment, consultant and supervision of construction project;
• Survey on means of transportation, container; Marine survey; Gas-free inspection of the ship before
repairing or scrap;
• Sampling; Test & analysis at laboratory; Product Certification;
• To provide damage survey; Acting as agent for insurance companies in damage survey, adjuster &
settling claim;
• To provide other services : Fumigation, Non-destructive test (NDT); Welding test; Test & calibration
of tools and measuring equipments; Calibration of tank, lighter; Tallying; Sealing; Auditing quality
management system on request of clients;
• To provide inspection services on request and supply certificates for State management purpose of
various fields such as: Origin of the goods; Quality management; Safety & hygiene of the goods;
Balance of investment project; Environment protection (Inspection on industrial hygiene; Test and
treatment of water and waste water); Custom clearance service;
• Check the appropriate certificate bearing capacity of the facility, inspection andcertification of
conformity of quality construction, machinery, equipment, supplies,construction materials (Base on
legal regulations);
• Technology Transfer Services; Check destroyed, not destroyed;
• Calibration and verification of measuring equipment;
• Measure and tabulate the volume of water means;
• Calibration and testing of measuring equipment;
• Technical inspection service workplace safety;
• Construction supervision of civil engineering and industry, supervised areas of expertise: installation
of equipment and automation technology;
• Supervision of equipment installation work; Supervision of technological equipment;
12
Vinacontrol Group Corporation
Address: 54 Tran Nhan Tong – Hai Ba Trung – Ha Noi
Financial Statements
For fiscal year ended 31/12/2011
• Supervise installation of electrical equipment - electrical construction grade 4;
•
Supervise equipment installation, engineering technology building;
• Consulting and installation of equipment;
• Consultancy for bidding documents and analyzing and evaluating bids: consulting, installation, supply
and installation of equipment;
• Verify the estimation and finalization dossier of civil, industrial, transportation and irrigation
engineering works; consulting project construction (works only when enterprises are eligible under
the provisions of law);
• Import and export commodities entrusted; Service for customs clearance;
• Consult the procedures of equitization, consolidation, acquisition, merger (not including legal advice);
• Training valuation knowledge and technics and other relating technics ( only operate after getting
approval from the competent bodies);
• Trading of real estate;
• To provide hotel & office for rent (excluding karaoke bar and dance room services);
•
Inspection Services and other services under the mandated evaluation of all organizations in domestic
and international;
(For business conditions, business enterprises only if they meet the conditions prescribed by law)
II. ACCOUNTING SYSTEM AND ACCOUNTING POLICY
Accounting period and accounting monetary unit
Annual accounting period commences from 1st January and ends on 31st December.
The Company maintains its accounting records in VND
Accounting standards and accounting system
Accounting System
The company applies Enterprise Accounting System issued under Decision No.15/2006/QĐ-BTC dated 20
March, 2006 by Ministry of Finance and 244/2009/TT-BTC Circular of The Ministry of Finance on 31
December, 2009.
Announcement on compliance with Vietnamese standards and accounting system
The company applies Vietnamese Accounting Standards and supplement documents issued by the State.
Financial statements are prepared in accordance with regulations of each standard and supplement documents
as well as with current accounting system.
Form of accounting record
The company is applying accounting record by computer.
Recognition of cash and cash equivalents
Transactions in currencies other than VND are recorded at the rate of exchange ruling at the dates of
transactions. Monetary assets denominated in foreign currencies are revalued at the inter-bank exchange rate
issued by the State Bank of Vietnam at the balance sheet date.
The amount by which exchange rates are accounted for in accordance with Circular No. 201/2009/TTBTC dated 15 October, 2009 issued by Ministry of Finance.
13
Vinacontrol Group Corporation
Address: 54 Tran Nhan Tong – Hai Ba Trung – Ha Noi
Financial Statements
For fiscal year ended 31/12/2011
Cash equivalents are short term, highly liquid investment with an original maturity of three months or less
since the date of financial statements which are readily convertible into known amounts of cash without
notice.
Recognition of inventory
Inventories are stated at original cost. Where the net realizable value is lower than cost, inventories should be
measured at the net realizable value. The cost of inventories should comprise all costs of purchase, costs of
conversion and other costs directly incurred in bringing the inventories to their present location and
condition.
The cost of inventory at the year-end is calculated by Specific indentification method.
Inventory is recorded by perpetual method.
Provisions for inventories obsolescence made at the end of the year are the excess of original cost of
inventory over their net realisable value
Recognition and depreciation of fixed assets
Fixed assets (tangible and intangible) are stated at the historical cost. During the using time, fixed assets
(tangible and intangible) are recorded at cost, accumulated depreciation (amortization) and net book value.
Depreciation of fixed assets of the Company shall comply with straight-line method ofdepreciation as
prescribed in
Circular No. 203/2009/QD - BTC dated 20October,2009 of
the
Ministry
of Finance issued regulations on management, use and depreciation of fixed assets
Depreciation is provided on a straight-line basis. Annual rates calculated to write off the cost of each asset
evenly over its expected useful life as follows:
- Buildings
- Marchinery and equipments
- Transportation equipment
- Office equipment and furniture
- Land use right
10 - 50 year
07 - 12 year
06 - 08 year
03 - 08 year
03 - 30 year
Recognition and capitalization of borrowing costs
Borrowing costs are recognized into operating costs during the period, except for which directly attributed to
the acquisition, construction or production of a qualifying asset included (capitalised) in the cost of that
asset, when gather sufficient conditions as regulated in VAS No. 16 “Borrowing costs”.
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
asset should be included (capitalized) in the cost of that asset, includes interest on borrowings, amortization
of discounts or premiums relating to issuing bonds and ancillary costs incurred in connection with the
arrangement of borrowings.
Recognition and allocation of prepaid expenses
Prepaid expenses only related to present fiscal year are recognised as short-term prepaid expenses and are
allocated into operating costs
The following types of expenses incurred during the year are recorded as long-term prepaid expenses, and
are amortised to the income statement in several years:
- Tools and consumables with large value issued into production;
- Comercial advantage
14
Vinacontrol Group Corporation
Address: 54 Tran Nhan Tong – Hai Ba Trung – Ha Noi
Financial Statements
For fiscal year ended 31/12/2011
The calculation and allocation of long-term prepaid expenses to profit and loss account in the period should
be based on nature of those expenses to choose reasonable method and allocated factors. Prepaid expenses
are allocated partly into operating expenses on a straight-line basis.
Recognition of accrued expenses
Expenses not yet occurred may be charged in advance into production and operating costs in order to ensure
when these expenses arise, they do not make material influence on production and operating costs on the
basis of suitability between revenue and cost. When these expenses arise, if there is any difference with the
amount charged, accountants make additional record or make a decrease to cost equivalent to the difference.
Recognition of owner’s equity
Owner’s equity is stated at actually contributed capital of owners.
Other capital of owner is the fair value of assets offerred to the company by other entities or individuals less
payable taxes (if any) imposed on these assets; and the amount added from income statement.
Retained earnings is the profit of business operations after deduction (-) regulated items due to applying a
change in accounting retrospectively or to make a retrospective restatement to correct materiality in previous
year.
Treasury stocks is stocks issued and reacquired by the issuing compnay on the securities market. Treasury
stocks is stated at actual value and represented in Balance sheet as a deduction in owner’s equity.
Dividends to be paid to shareholders are recognised as a payable in Balance sheet after declaration from the
Board of management.
Undistributed earnings is the profit of business operations after deduction (-) regulated items due to applying
a change in accounting retrospectively or to make a retrospective restatement to correct materiality in
previous year.
Recognition of revenue
Revenue from sale of goods
Revenue from sale of goods should be recognised when all the following conditions have been satisfied:
- The significant risks and rewards of ownership of the goods have been transferred to the buyer;
- The Company retains neither continuing managerial involvement as a neither owner nor effective control
over the goods sold;
- The amount of revenue can be measured reliably;
- The economic benefits associated with the transaction of goods sold have flown or will flow to the
Company;
- The costs incurred or to be incurred in respect of the transaction of goods sold can be measured reliably
Revenue from rendering of services
Revenue from rendering of services is recognised when the outcome of that transaction can be measured
reliably. Where a transaction involving the rendering of services is attributable to several periods, each
period’s revenue should be recognised by reference to the stage of completion at the balance sheet date. The
outcome of a transaction could be estimated reliably when all the following conditions are satisfied:
- The amount of revenue can be measured reliably;
- It is probable that the economic benefits associated with the transaction will flow to the Company;
- The stage of completion of the transaction at the balance sheet date can be measured reliably;
15
Vinacontrol Group Corporation
Address: 54 Tran Nhan Tong – Hai Ba Trung – Ha Noi
Financial Statements
For fiscal year ended 31/12/2011
- The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
The stage of completion of a transaction may be determined by surveys of work completed method
Financial income
Income from interest, royalties and dividends and other financial income earned by the Company should be
recognised when these two conditions are satisfied:
- It is probable that the economic benefits associated with the transaction will flow to the Company;
- The amount of the income can be measured reliably.
Dividends should be recognised when the Company’s right to receive payment is established
Recognition of financial expenses
Items recorded into financial expenses consists of:
- Expenses or losses relating to financial investment activities;
- Expenses of capital lending and borrowing;
- Loss due to foreign exchange differences arising from transactions relating to foreign currencies;
- Provision for devaluation of securities investment.
The above items are recorded by the total amount arising within the period without compensation to financial
revenue.
Recognition of current tax expense, deferred tax expense
Current tax expense is calculated basing on taxable profit and income tax rate applied in the current year.
Deferred tax expense is calculated basing on temporary differences and income tax rate.
16
FINANCIAL STATEMENTS
for the fiscal year ended 31 December 2011
VINACONTROL GROUP CORPORATION
Address: 54, Tran Nhan Tong street, Ha noi City
3
. CASH AND CASH EQUIVALENTS
Cash in hand
Cash at banks
Cash equivalents
Total
4
31/12/2011
VND
7.848.097.453
928.584.800
(4.166.737.386)
4.609.944.867
01/01/2011
VND
8.934.992.583
265.720.000
(3.218.773.887)
5.981.938.696
31/12/2011
VND
88.550.000
46.320.000
269.678.895
900.694.798
01/01/2011
VND
105.050.000
355.083.331
145.848.269
. OTHER SHORT- TERM RECEIVABLES
Equitization receivables
Receive from employee
Other receivables
Other payables
Total
6
01/01/2011
VND
5.591.325.693
25.289.446.109
35.667.369.469
66.548.141.271
. SHORT- TERM FINANCIAL INVESTMENTS
Short-term securites investments
Others (Time deposit)
Provision for devaluation of short-term investments
Total
5
31/12/2011
VND
9.279.543.988
26.260.132.452
1.700.000.000
37.239.676.440
1.305.243.693
605.981.600
31/12/2011
VND
2.888.197.974
2.985.000
2.891.182.974
01/01/2011
VND
210.892.516
985.000
211.877.516
. INVENTORY
Materials
Tools
Work in progress
Finished products
Provision for devaluation of inventory
Total cost of inventory
17
FINANCIAL STATEMENTS
for the fiscal year ended 31 December 2011
VINACONTROL GROUP CORPORATION
Address: 54, Tran Nhan Tong street, Ha noi City
7
. INCREASE/ DECREASE IN TANGIBLE FIXED ASSETS
Unit: VND
Cost
At 01/01/2011
Increase from
- Purchase
- Construction
Decrease due to
- Disposing, liquidating
- Others decreasing
At 31/12/2011
Machinery
architectures
equipments
means
tools
23.804.016.951
31.207.874.021
13.309.615.560
1.532.197.880
1.532.197.880
210.982.640
210.982.640
19.309.281.314
8.675.173.780
7.939.808.443
735.365.337
269.928.609
269.928.609
606.257.288
606.257.288
4.821.007.628
4.747.689.299
922.856.352
3.824.832.947
1.132.299.118
1.132.299.118
54.800.908.332
27.714.526.485
14.235.556.152
8.436.397.809
10.865.713.334
2.133.592.640
2.133.592.640
9.426.902.167
1.369.290.800
1.369.290.800
3.415.274.528
841.220.761
841.220.761
269.928.609
269.928.609
481.909.620
481.909.620
1.093.276.779
1.093.276.779
12.729.377.365
10.314.283.347
3.163.218.510
30.588.206.587
5.946.726.460
5.946.726.460
2.056.097.648
2.056.097.648
34.478.835.399
8.443.567.980
14.985.149.120
3.882.713.393
3.921.272.805
1.405.733.100
5.273.179.299
30.655.714.866
70.708.553.379
31.207.874.021
Accumulated depreciation
At 01/01/2011
6.880.316.558
Depreciation charges
1.602.622.259
- Depreciation charges
1.602.622.259
- Others
Decrease due to
210.982.640
- Disposing, liquidating
210.982.640
- Others decreasing
8.271.956.177
At 31/12/2011
Net book value
At 01/01/2011
At 31/12/2011
8
Transportation Management
Buildings
16.923.700.393
46.528.952.155
Total
61.243.921.453
46.162.934.980
10.394.862.675
35.768.072.305
2.219.467.655
2.219.467.655
105.187.388.778
. INCREASE/ DECREASE IN INTANGIBLE FIXED ASSETS
Unit: VND
Land use
right
Cost
At 01/01/2011
Increase from
- Purchase
- Construction
Decrease due to
Copyright
release
Computer
software
Trademark
4.243.384.606
Total
13.585.865.037
516.618.270
13.069.246.767
-
-
-
222.000.000
-
-
-
-
17.829.249.643
-
-
222.000.000
Accumulated depreciation
At 01/01/2011
634.901.157
Increase
235.697.756
- Depreciation
235.697.756
Decrease due to
-
-
-
-
-
89.474.226
33.887.773
33.887.773
-
870.598.913
-
-
123.361.999
724.375.383
269.585.529
269.585.529
993.960.912
3.608.483.449
16.958.650.730
-
-
132.525.774
98.638.001
3.741.009.223
17.057.288.731
- Others decreasing
At 31/12/2011
- Others decreasing
At 31/12/2011
Net book value
At 01/01/2011
At 31/12/2011
18
4.465.384.606
13.585.865.037
516.618.270
13.069.246.767
18.051.249.643
FINANCIAL STATEMENTS
for the fiscal year ended 31 December 2011
VINACONTROL GROUP CORPORATION
Address: 54, Tran Nhan Tong street, Ha noi City
9
. CONSTRUCTION IN PROGRESS
31/12/2011
VND
Construction in progress
- Dung Quat head office
- Analyzing and Testing Center No.1
- Analyzing and Testing Center No.2
- Representative office at Vung Ang
- Purchase of fixed assets and repair of Hai Phong Branch
- Repair Cua Ong station - Quang Ninh Branch
- Personel management software
- Design and improve working place at Quy Nhon Branch
- Buying land at 30/4 road - Da Nang
Total
1.026.109.353
169.545.455
108.000.000
1.303.654.808
01/01/2011
VND
1.026.109.353
1.317.600.000
21.885.516.374
123.636.364
943.602.727
200.447.863
108.000.000
456.509.091
8.063.219.054
34.124.640.826
10 . INVESTMENTS IN ASSOCIATES, JOINT - VENTURES
Investments in joint- ventures (*)
Total
(*) Includes:
- Thang Long notarial office
- Consulting and Construction inspection,.JSC
- Vinacontrol Auction and Trading,.JSC
Total
11 . OTHER LONG-TERM INVESTMENTS
Investment in stock (*)
Total
(*) Includes:
Stock of Machinery and Spare parts,.JSC
Stock of Appraisal Center - Ministry of Finace
Stock of Sabeco
Total
31/12/2011
VND
2.300.000.000
2.300.000.000
01/01/2011
VND
2.000.000.000
2.000.000.000
500.000.000
1.500.000.000
300.000.000
2.300.000.000
500.000.000
1.500.000.000
31/12/2011
VND
2.658.400.000
2.658.400.000
01/01/2011
VND
2.658.400.000
2.658.400.000
Quality
27.000
20.000
20.000
2.000.000.000
Amount
540.000.000
718.400.000
1.400.000.000
2.658.400.000
12 . LONG-TERM PREPAID EXPENSES
31/12/2011
VND
2.814.771.479
2.814.771.479
Prepaid expenses for tools
Commercial Advantge
Total
19
01/01/2011
VND
1.936.072.430
115.561.142
2.051.633.572
FINANCIAL STATEMENTS
for the fiscal year ended 31 December 2011
VINACONTROL GROUP CORPORATION
Address: 54, Tran Nhan Tong street, Ha noi City
13 . TAXES AND PAYABLES TO THE STATE BUDGET
VAT
Business income tax
Personal income tax
Natural resource tax
Property tax and land rental
Other taxes
Total
31/12/2011
VND
1.506.671.991
626.588.146
677.148.349
2.810.408.486
01/01/2011
VND
985.753.489
1.063.480.610
495.683.812
2.544.917.911
31/12/2011
VND
599.938.342-
01/01/2011
VND
33.000.000-
599.938.342
33.000.000
14 . ACCRUED EXPENSES
Lãi
vay phải trả
Others
Total
15 . OTHER SHORT-TERM PAYABLE
31/12/2011
VND
2.485.692
1.251.780.728
259.630.884
2.167.575
677.250.000
28.165.061
13.234.800.408
18.165.679
15.474.446.027
Surplus of assets awaiting resolusion
Labor union fund
Social insurance
Health insurance
Payables on equalization
Unemployment insurance
Others
Other receivables (Credit)
Total
01/01/2011
VND
670.735.864
21.738.135
2.122.984
677.250.000
2.042.223.659
14.660.724
3.428.731.366
16 . OWNER'S EQUITY
a) The compared table of changes in equity ( Apendix 1)
b) Details of owner's invested capital
%
31/12/2011
23.625.000.000
30%
55.125.000.000
70%
78.750.000.000 100%
Invested capital of State
Invested capital of others
Total
%
01/01/2011
23.625.000.000 30%
55.125.000.000 70%
78.750.000.000 100%
c) Capital transactions with owners and distribution of dividends and profits
31/12/2011
Owner's invested capital
- At the beginning of year
- Increase in the year
- Decrease in the year
- At the end of year
78.750.000.000
78.750.000.000
20
01/01/2011
78.750.000.000
78.750.000.000
FINANCIAL STATEMENTS
for the fiscal year ended 31 December 2011
VINACONTROL GROUP CORPORATION
Address: 54, Tran Nhan Tong street, Ha noi City
d ) Stock
Quantity of Authorized issuing stocks
Quantity of issued stocks
- Ordinary stocks
- Preferred stocks
Quantity of repurchased stocks
- Ordinary stocks
- Preferred stocks
Quantity of circulation stocks
- Ordinary stocks
- Preferred stocks
31/12/2011
01/01/2011
7.875.000
7.875.000
7.875.000
7.875.000
37.700
37.700
48.200
48.200
7.837.300
7.837.300
7.826.800
7.826.800
* Par value per circulation stocks
10.000 VND
e) Company's Funds
- Investment and development fund
- Financial reserve fund
31/12/2011
27.510.778.247
4.852.531.350
01/01/2011
19.548.265.229
3.351.763.623
17 . REVENUE FROM SALE OF GOODS AND RENDERING OF SERVICES
This year
VND
233.322.348.772
Revenue from rendering of services
Revenue from sale of property
Total
233.322.348.772
Last year
VND
180.622.813.912
33.300.200.000
213.923.013.912
18 . REVENUES DEDUCTIBLE ITEMS
This year
VND
4.000.000
4.000.000
Trade discount
Sales return
Sales rebates
Total
Last year
VND
-
19 . NET REVENUE FROM SALE OF GOODS AND RENDERING OF SERVICES
This year
VND
233.318.348.772
Net revenue from rendering of services
Net revenue from sale of property
Total
233.318.348.772
Last year
VND
180.622.813.912
33.300.200.000
213.923.013.912
20 . COSTS OF GOODS SOLD
This year
VND
183.085.386.009
Costs of services rendered
Costs of property
Total
183.085.386.009
21
Last year
VND
126.367.913.575
25.647.300.330
152.015.213.905
FINANCIAL STATEMENTS
for the fiscal year ended 31 December 2011
VINACONTROL GROUP CORPORATION
Address: 54, Tran Nhan Tong street, Ha noi City
21 . FINANCE INCOME
Interest income
Profits from joint venture activities
Dividends, profits earned
Revenue from sale of securities
Foreign exchange differences realized
Foreign exchange differences unrealized
Total
This year
VND
2.774.871.387
300.000.000
486.781.900
592.337.255
268.597.984
678.611.146
5.101.199.672
Last year
VND
2.352.233.481
500.000.000
401.881.195
1.509.555.084
4.763.669.760
This year
VND
5.309.985
2.556.499
1.819.750.671
947.963.499
42.857.657
2.818.438.311
Last year
VND
22 . FINANCIAL EXPENSES
Foreign exchange differences realized
Foreign exchange differences unrealized
Cost of investment securities
Provisions for devaluation of investment
Others
Total
,
23 . CURRENT INCOME TAX EXPENSE
1.437.332.087
1.672.794.832
16.552
3.110.143.471
The company has been exempted 100% income tax within 2 years since 2006 and 50% within 3 years continuous
from 2008 because of tranfering from state company to Joint stock company. After that, The company will be
reducted 50% income tax rate within 2 years continuous because the company registed to trade stock at Hanoi
Stock Exchange in 2006. In 2011, the Company has been reducted 50% Corporate income tax rate ( 25%).
This year
VND
25.442.274.829
Total income before tax (1)
To adjust profit to determine Income taxpayable
+ Increase (2)
Administrative fines for violations
Foreign exchange differences unrealized
+ Decrease (Divident, distributed profit) (3)
Divident, distributed profit
Foreign exchange differences unrealized
Total income taxpayale (4) = (1) + (2) - (3)
Includes:
+ Preferential income 50%
+ Income tax rate 25%
Tax expenses in respect of the current year
18.643.761
16.087.262
2.556.499
1.465.393.046
786.781.900
678.611.146
23.995.525.544
23.653.830.073
341.695.471
3.042.152.627
22
FINANCIAL STATEMENTS
for the fiscal year ended 31 December 2011
VINACONTROL GROUP CORPORATION
Address: 54, Tran Nhan Tong street, Ha noi City
24 . SEGMENT REPORTS
For the management purpose, the Company carries out its operation and segment reports base on geography areas.
Details are as follows::
Unit: VND
Net revenue from
Gross profit from
sale of goods and
sale of goods and
Costs of goods sold
rendering of
rendering of services
services
Ha noi
42.411.873.506
29.366.007.068
13.045.866.438
Hai Phong
23.350.264.116
17.641.768.854
5.708.495.262
Quang Ninh
28.451.975.617
22.349.527.066
6.102.448.551
Da Nang
34.403.917.685
25.540.185.598
8.863.732.087
Ho Chi Minh City
104.700.317.848
88.187.897.423
16.512.420.425
Total
233.318.348.772
183.085.386.009
50.232.962.763
25 . RELATED INFORMATION
In 2011, Company transacted with related parties:
Relations
Subsidiary
Subsidiary
Amount (VND)
163.563.021
87.361.872
Receivable and payable Balances :
Vinacontrol Environment Consultancy and Appraisal JSC
Vinacontrol Certification JSC
Relations
Subsidiary
Subsidiary
Receivable (+)/ Payable (-)
442.294.665
197.995.891
Contribution capital Balances
Vinacontrol Environment Consultancy and Appraisal JSC
Vinacontrol Certification JSC
Relations
Subsidiary
Subsidiary
Amount (VND)
1.529.730.000
210.000.000
Revenue from sale of services
Vinacontrol Environment Consultancy and Appraisal JSC
Vinacontrol Certification JSC
As at 31 December 2011, related parties balances :
26 . COMPARATIVE FIGURES
The comparative figures are those taken from the accounts for the year ended 31 December 2010, which were
audited by Viet Nam Auditing and Accouting Consultancy Co.Ltd. (AVA).
Prepared by
Nguyen Thi Minh Thu
Chief Accountant
Luu Ngoc Hien
23
Ha noi, 19th January 2012
General Director
Mai Tien Dung
FINANCIAL STATEMENTS
VINACONTROL GROUP CORPORATION
Address: 54, Tran Nhan Tong street, Ha noi City
for the fiscal year ended 31 December 2011
16. OWNER'S EQUITY
a) The compared table of changes in equity
Apendix 01
Contributed legal
capital
Opening balance
Increase in the year of 2010
Share capital
surplus
Treasury stock
78.750.000.000
26.250.000.000
-
-
(852.856.825)
-
Investment &
Development
Fund
Financial
Reserves
Retained earning
16.066.176.259
2.272.466.493
18.719.685.321
3.482.088.970
1.079.297.130
33.910.987.630
Transferred from profit
33.910.987.630
Increase capital
Other increases
Decrease in the year of 2010
-
-
-
3.482.088.970
1.079.297.130
-
-
18.718.705.865
Lost of last year
Dividend paid
7.087.500.000
Other decreases
Closing balance
Increase in the year of 2011
11.631.205.865
78.750.000.000
26.250.000.000
-
43.591.687
(852.856.825)
-
19.548.265.229
3.351.763.623
33.911.967.086
7.962.513.018
1.500.767.727
22.400.122.202
Transferred from profit
22.400.122.202
Increase capital
Other increases
Decrease in the year of 2011
43.591.687
-
-
(185.788.313)
7.962.513.018
1.500.767.727
-
-
39.455.179.518
Lost of this year
Dividend paid
20.376.980.000
Other decreases
Closing balance
(185.788.313)
78.750.000.000
26.293.591.687
(667.068.512)
24
19.078.199.518
27.510.778.247
-
4.852.531.350
-
16.856.909.770