Thien Viet Securities Joint Stock Company. Separate Interim Financial Statements for the third quarter ended 30 September 2015

Transcription

1 Thien Viet Securities Joint Stock Company Separate Interim Financial Statements for the third quarter ended 30 September 2015

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3 THIEN VIET SECURITIES JOINT STOCK COMPANY Statement of the Board of Management The Board of Management of Thien Viet Securities Joint Stock Company ( "the Company") presents this statement and the accompanying separate interim financial statements of the Company for the six-month period ended 30 September 2015, The Board of Management is responsible for the true and fair preparation and presentation of the separate interim financial statements in accordance with Vietnamese Accounting Standard 27 - Interim Financial Reparfing, Circular No 95/2008/TT-BTC dated 24 October 2008 and Circular No. 162/2010/TT- BTC dated 20 October 2010 of the Ministry of Finance on the promulgation of the accounting system for securities companies, the relevant requirements of the Vietnamese Accounting System for enterprises and the relevant statutory requirements applicable to interim financial reporting. In the opinion of the Board of Management: (a) (b) the separate interim financial statements set out on pages 3 to 42 give a true and fair view of the unconsolidated financial position of the Company as at 30 September 2015 and of' the unconsolidated results of operations, the unconsolidated cash flows of the Company for the six-month period then ended in accordance with Vietnamese Accounting Standard 27 - Interim Financial Reporting, Circular No. 95/2008/TT-BTC dated 24 October 2008 and Circular No, 162/2010/TT- BTC dated 20 October 2010 of the Ministry of Finance on the promulgation of the accounting system for securities companies, the relevant requirements of the Vietnamese Accounting System for enterprises and the relevant statutory requirements applicable to interim financial reporting; and at the date of this statement, there are no reasons to believe that the Company will not be able to pay its debts as and when they fall due. The Board of Management has, on the date of this statement, authorised these separate financial statements for issue. Board of Management Nguyen Thanh Thao General Director Hanoi, 19 October

4 THIEN VIET SECURITIES JOINT STOCK COMPANY Separate balance sheet as at 30 September 2015 C o d e N o t e The accompanying notes are an integral part of these separate interim financial statements. 5

5 THIEN VIET SECURITIES JOINT STOCK COMPANY Separate balance sheet as at 30 September 2015 (continued) Form B09a-CTCK The accompanying notes are an integral part of these separate interimfinanciai statements. 6

6 THIEN VIET SECURITIES JOINT STOCK COMPANY Separate balance sheet as at 30 September 2015 (continued) Form B09a-CTCK The accompanying notes are an integral part of these separate interim financial statements. 7

7 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK Separate statement of income for the six-month period ended 30 September 2015 Quarter 3/2015 Quarter 3/2014 VND VND The accompanying notes are an integral pan of these separate interim financial statements. 8

8 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK Separate statement of changes in equity for the six-month period ended September 2015 Prepared by Reviewed by Approved by Ms. Nguyen Thi Van Mr. Le Quang Tien Ms. Nguyen Thanh Thao Genera/ Accountant Chief Accountant General Director 19 October 2015 The accompanying notes are an integral pan of these separate interim financial statements. 9

9 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK Separate statement of cash flows for the six-month period ended 30 September 2015 (Indirect method) The accompanying notes are an integral part of these separate interim financial statements. 10

10 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK Separate statement of cash flows for the six-month period ended MI September 2015 (Indirect method - continued) Prepared by Reviewed by Approved by Ms. Nguyen Thi Van Mr. Le Quang Tien Ms. Nguyen Thanh Thao Genera/ Accountant Chief Accountant General Director 19 October 2015 The accompanying notes are an integral part of these separate interim financial statements. 11

11 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK for the six-month period ended 30,September 2015 These notes form an integral part of and should be read in conjunction with the accompanying separate interim financial statements. 1. Reporting entity Basis of evablishinent Thiel] Viet Securities Joint Stock Company ("the Company") is a joint stock company incorporated under the Law on Enterprises of Vietnam in accordance with the Business Registration Certificate No issued by Hanoi Department of Planning and Investment on 13 December The Company was granted Securities Operating Licence No. 36/UBCK-GPHDKD on 25 December 2006 and the revisions thereto were issued by the State Securities Commission. Principal activities The principal activities of the Company include securities brokerage activities, securities trading activities, provision of financial advisory services and securities investment services, securities custodian and securities underwriting services. Share capital The Company's share capital as at 30 September 2015 is VND476 billion. Listing According to Dixision No. 512/QD-SGDHCM dated 25 December 2014 issued by the Ho Chi Minh City Stock Exchange, the Company's shares were Listed in the Ho Chi Minh City Stock Exchange since 25 December 2014 with the share code of TVS and the official start date of share trading was 15 January As at 30 September 20[5, the number of listed shares was 43 million TVS shares equivalent to the charter capital of VN D430 billion. Operating network The Company's head office is in lianoi and it has a branch in ID) Chi Minh City. Subsidiaries In 2014, the Company conducted procedures to acquire shares equivalent to 99.2 % of the charter capital of An Phuc Securities Investment Fund Management Joint Stock Company, a fund managenient company established in Vietnam. On 13 February 2015, the Company received Decision No.178/QD- UBCK of the State Securities Commission approving the acquired transaction. On 12 March 20 IS, the Company completed the acquired proce dures and recorded the investment as a subsidiary. On 20 May 2015, the revision of An Phuc Securities Investment Fund Management Joint Stock Company's Establishment and Operating Licence was approved by the State Securities Commission and accordingly, A.n.Phuc Securities investment Fund Management Joint Stock Company was renamed as Thien Viet Asset Management Joint Stock Company. 12

12 TIIIEN VIET SECURITIES JOINT STOCK COMPANY Form BO9a-CTCK As at 30 September 2015, the Company had one directly owned subsidiary as follows: Name of the Established under Business activities Charter % of subsidiary capital ownership and voting rights Thien Viet Asset Establishment and Operating Establish and manage VND % Management Lisence No. 15/UBCK- securities investment billion Joint Stock GPHDQLQ dated 28 funds, provide Company December 2006, the most financial advisory recent amendment was services and securities Lisence No. 10/GPDC-UBCK investment advisory dated 20 May 2015 services Total employees As at 30 September 2015, the Company had 62 employees (31/12/2014: 63 employees). 2. Basis of preparation (a) Statement of compliance The separate financial statements for the six-month period ended 30 September 2015 have been prepared in accordance with Vietnamese Accounting Standard 27 - interim Financial Reporting, Circular No. 95/2008/TT-BTC dated 24 October 2008 ("Circular 95") and Circular No. 162/2010/TT-BTC dated 20 October 2010 ( Circular I 62 ) issued by the Ministry of Finance on the promulgation of the accounting system for securities companies, the relevant requirements of the Vietnamese Accounting System for enterprises and the relevant statutory requirements applicable to interim financial reporting, which may differ in some material respects from International Financial Reporting Standards and the generally accepted accounting principles and standards of other countries. The Company also prepares and issues its consolidated interim financial statements separately. For a comprehensi ve understanding of the Company's consolidated financial position, its consolidated results of operations and its consolidated cash flows, these separate interim financial statements should be read in conjunction with the consolidated interim financial statements. The accompanying separate interim financial statements are not intended to present the financial position and results of operations, changes in equity and cash flows in accordance with generally accepted accounting principles and practices in countries or jurisdictions other than Vietnam. Furthermore, their utilisation is not designed for those who are not informed about Vietnam's accounting principles, procedures and practices. (b) Basis of measurement The separate interim financial statements, except for the separate interim statement of cash flows, are prepared on the accrual basis using the historical cost concept. The separate interim statement of cash flows is prepared using the indirect method. (c) Annual accounti ng period The annual accounting period of the Company is from I January to 3l December. The Company also prepares the interim financial statements for the six-month period ended 30 September. 13

13 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK Notes to the separate interim financi al statements (d) Accounting currency The separate interim financial statements are prepared and presented in Vietnam Dung, rounded to the nearest thousand ("VND"). 3. Summary of significant accounting policies The following sinifieant accounting policies have been adopted by the Company in the preparation of these separate interim financial statements. (b) Foreign currency transactions Monetary assets and liabilities denominated in currencies other than VND are translated into VND at rates of exchange ruling at the balance sheet date_ Transactions in currencies other than VND during the period have been translated into VND at exchange rates ruling at the transaction dates. Al] foreign exchange differences are recorded in the separate interim statement of income, Cash and cash equivalents Cash comprises of cal] deposits and cash relating to customers' securities transactions, which are segregated from the Company's bank balances_ Cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash, are subject to an insignificant risk of changes in value, and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes, 14

14 THIEN VIET SECURITIES JOINT STOCK COMPANY Form 1309a-CTCK 15

15 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK for the ix-month period ended 30 September 2015 (continued) (e) Investments in subsidiaries For the purpose of these separate financial statements, investments in subsidiaries are initially recognized at cost which includes purchase price plus any directly attributable transaction costs. Subsequent to initial recognition, these investments are stated at cost less allo wance far diminution in value. Pro vision for impairment of investments is made when the investees are suffering from loss, except for the expected loss identified in the business plan before the investment. The allo wance is re versed if the investec subsequently made a profit that offsets the previous loss for which the allowance had been made, An allowance is reversed only to the extent that the investment's carrying amount does not exceed the carrying amount that would have been determined if no allowance had been recognized, (f) Accounts receivable Trade receivable from securities trading activities and other receivables are stated at cost less allowance for doubtful debts. The Company has provided allo wance for doubtful debts based on the estimate of recoverability of the receivables, but not lower than the allowance made in accordance with Circular No 228/2009/TT-BTC issued by the Ministry of Finance on 7 December 2009 ( Circular 228"), In accordance with Circular 228, the allowance rates for overdue receivables are as follows: Overdue period Rate of allowance From six (6) months to Less than one (1) year 30% From one ( l) year to less than two (2) years 50% From two (2) years to less than three (3) years 70% Over three (3) years 100% (g) Short-term prepayments Tools and instruments include assets held for use by the Company in the normal course of business whose costs of individual items are less than VND 30 million and therefore not qualified for recognition as fixed assets under Circular No 45/2013/TT-BTC dated 25 April 2013 of the Ministry of Finance which pro vides guidance on management, use and depreciation of fixed assets ( "Circular 45 "). Cost of tools and instruments are amortised on a straight-line basis over 1 year (h) (i) Tangi ble fixed assets Cost Tangible fixed assets are stated at cost less accumulated depreciation. The initial cost of a tangible fixed asset comprises its purchase price, including import duties, non-refundable purchase taxes and any directly attributable costs of bringing the asset to its working condition and location rot its intended use, Expenditures incur-red atter tangible fixed assets have been put into operation, such as repairs and maintenance and overhaul costs, are normally charged to income in the year in which the costs are incurred. 16

16 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK in situations where it can be clearly demonstrated that the expenditures have resulted in an increase in the future economic benefits expected to be obtained from the use of tangible fixed assets beyond their originally assessed standard of performance, the expenditures are capitalised as an additional cost of tangible fixed assets. (ii) Depreciation Depreciation is computed on a straight-line basis over the estimated useful lives of tangible fixed assets. The estimated useful lives are as follows; * structures 3 years * motor vehicles 6 years * office equipment 2-5 years * others 3 years (i) Intangible fixed assets Intangible fixed assets consist of software. The cost of acquiring new software, which is not an integral part of the related hardware, is capitalised and treated as art intangible asset Software costs are amortised on a straight-line basis over two to five years, (j) Construction in progress Construction in progress represents the cost of software which has not been fully completed. No depreciation is provided for construction in progress during the period of software development.. (k) Trade and other payables Trade and other payables are stated at their cost. (l) Provisions A provision is recognized if as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obiiation. Pro visions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability_ (m) Classification of financial instruments Solely for the purpose of pro viding disclosures about the significance of financial instruments to the Company's financial position and results of operations and the nature and extent of risk arising from financial instruments, the Company classifies its financial instruments as follows; l7

17 - THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK

18 TH1EN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK (ii) Financial liabilities Financial liabilities at fair value through profit or loss A financial liability at fair value through profit or loss is a financial liability that meets either of the following conditions: It is considered as held for trading. A financial liability is considered as held for trading if: - it is incurred principally for the purpose of repurchasing it in the near term; - there is evidence of a recent pattern of short-term profit-taking; or - a derivative (except for a derivati ve that is financial guarantee contract or a designated and effective hedging instrument). Upon initial recognition, it is designated by the Company as at fair value through profit or loss. Financial liabilities carried at amortised cost Financial liabilities which are not classified as financial liabilities at fair value through profit or loss are classified as financial liabilities carried at amortised cost. The abo ve described classification of financial instruments is solely for presentation and disclosure purpose and is not intended to be a description of how the instruments are measured. Accounting policies for measurement of financial instruments are disclosed in other relevant notes. (m) Taxation Income tax on the unconsolidated profit or loss for the period comprises current and deferred tax, Income tax is recognized in the separate interim statement of income except to the extent that it relates to items recognized directly to equity, in which case it is recognized in equity. Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted at the balance sheet date, and any adjustment to tax payable in respect of previous periods. Deferred tax is provided using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deterred tax provided is based on the expected manner of realization or settlement of the carrying amounts of assets and liabilities using the tax rates enacted or substantively enacted at the balance sheet date. A deferred tax asset is recognized only to the extent that it is probable that future taxable pro fits will be available against which the temporary difference can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized. 11)1. l9

19 THIEN VIET SECURITIES JOINT STOCK COMPANY for the six-month period ended 30 September (continued) Form B09a-CTCK (0) Statutory reserves The Company used the annual profit after tax to make the following reserves in accordance with Circular No TT-BT dated 6 October 2014 of the lvlinistry of Finance: Annual allocation Maximum balance Reserve to supplement contributed capital : 5% profit after tax 10% of contributed capita] Financial reserve 5% profit after tax 10% of contributed capital The reserve to supplement contributed capital is used to add to the contributed capital as determined by the General Meeting of Shareholders. The appropriation rate is determined annually by the General Meeting of Shareholders according to the Company Charter. The purpose of the financial reserve is to cover losses incurred during the normal course of business. These statutory reserves are non-distributable and are classified as equity, Share capital (g) Ordinary shares Ordinary shares are classified as equity. Incremental costs directly attributable to issue of ordinary shares are recognized as a deduction From equity, (it) Treasury shares When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, net of tax effects, is recognized as a reduction from equity. Repurchased shares are classified as treasury shares under equity. When treasury shares are sold for reissue subsequently, cost of the reissued shares is determined on a weighted average basis. Any difference bet ween the amount received and the cost of the shares reissued is presented within share premium, (q) Revenue (1) Revenue from securities brokerage Revenue from securities brokerage activities is recognized in the statement of income when the securities transaction is completed. (4) Revenue from securities trading Re venue from securities trading activities is recognized in the statement of income upon receipt of the Notice for settlements of securities trading transactions from the Vietnam Securities Depository for listed securities) and completion of the agreement on transfer of assets (for unlisted securities). (iii) Revenue from securities investment advisory Re venue from securities investment advisory activities is recognized in the statement of income in proportion to the stage of completion of the transaction at the balance sheet date. The stage of completion is assessed by reference to work performed. 10

20 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK (iv) Revenue from securities custodian service Re venue from securities custodian ser vice is recognize d in the statement of income when ser vices are pro vided. Re venue is recognized on a time proportion basis wi(h reference to the quantity of securities and the applicable fee, (v) Interest income Interest income mainly represents interest from deposits at bank, advances to customers for securities trading, loans to customers for deposit transactions and other receivables from investors. Interest income is recognized on a time proportion basis with reference to the principal outstanding and the applicable interest rate. (vi) Dividend income Di vidend income is recognized when the right to receive dividend is established. Share dividends are not recognized as income from securities investment activities and capital contribution. (r) Operating lease payments Payments made under operating leases are recognized in the statement of income on a straight-line basis over the term of the lease. (s) Interest expense Interest expense is recognized in the statement of income on.an accrual basis. (1) Basic earnings per share The Company presents basic earnings per share for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to the ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the. period, (u) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions, or vhere the Company and the other party. are subject to common control or significant influence. Related parties may be individuals or corporate entities and include close family members of any individual considered to be a related party. (v) Off balance sheet items Amounts which are defined as of balance sheet items under Circular 95 and Circular 162 issued by the Ministry of Finance on the promulgation of the accounting system for securities companies are disclosed in the relevant notes to these separate interim financial statements. 21

21 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK (w) Nil balances Items or balances required by Circular 95 and Circular 162 issued by the Mini tiy of Finance on the promulgation of the accounting system for securities companies, that are not shown in these separate interim financial statements indicate Ili] balances. 4. Cash and cash equivalents Cash Cash at bank - Of the Company - Held on behalf of cusiomers (*) Cash equivalents - Of the Company (*) Cash at bank was held on behalf of customers for the securities trading purposes and presented in th e balance sheet of the Company, Cash and cash equivalents at 30 September 2015 included amounts denominated in currencies other than VND amounting to VND thousand (31/12/2.014: VND thousand). 5. Volume and value of securities transactions during the period Of the Company Shares Of customers Shares Period from Period from 1/1/2015 to 30/9/2015 1/1/2014 to 30/9/2014 Volume of Value of Volume of Value of transactions transactions ra nsac do as transactions VND VND 22

22 TH1EN VIET SECURITIES JOINT STOCK COMPANY Notes to the separate interim financial statements for the six-month period ended 30 September 2015 (continued) Form B09a-CTCK 6. Investments Details of short-term investments are as follows: Trading securities Other short-term investments Deposits with terms of over 3 months (i) Entrusted investment portfolio managed by Thien Viet Asset Management Joint Stook Company Allowance for the diminution in the value of short-term investments (iii) These are term deposits at banks in VND with original terms ranging from 6 to 13 months and with interest rates from 6.3% to 7.0% per annum (31/12/2014: original terms ranging from 6 to 13 months with interest rates from 5.6% to 8.2% per annum), (ii) On 15 June 2015, the Company signed investment portfolio management contract No /HDQLDM with Thien Viet Asset Management Joint Stock Company ("TVAM") to invest in securities in Vietnam stock market. The Company is entitled to all profits earned from and bears all risks related to the encrusted portfolio managed by TVAM. Investment amount is determined for each investment According to the signed contract, the term of the contract is 3 months from 15 September 2015 to 14 September 2015 unless contract is terminated before the expiry date. However, this contract is automatically extended for another 3-month period upon expiration of every term except the case when one of the parties notifies termination of the contract in writing at least 10 days before the expiry date of that term. Details of long-term investments are as follows: Investments in subsidiaries 36,704,000 30/9/ /12/21114 VND VND Long-term security investments 12,058,259 12,058,259 A vailable-for-sale securities 12,058,259 12,058,259 Allowance for diminution in the value of long-term investments (1,688,480) (1,688,480)

23 I THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK Details or investments held by the Company as at 30 September 2015 for closing balances and 1 January 2015 for opening balances were as follows: (*) 'Investments with undeterminable market value were presented by the carrying amounts. ('"*) These included a term deposit of VND302,900,000 thousand with a term of 12 to 13 months, repayment prior to expiry date s are possible and entitled to an interest rate of 7% to 8.2% per annum, which were pledged as collateral ibr overdrafts of the Company as at 30,Tune 2015 (31/12/20l4;VND) 202,900,000 thousand with a term of 13 months, interest rate of 7% per annum) (Note 14). 24

24 THEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK (iii) Movements in allowance for diminution in the value of short-term security investments during the period were as follows: Period Period from 1/1/2015 from 111/2014 to 30/9/2015 to 3016/2014 VND '000 VND'000 Balance as at 1 January. 7,274, ,186 Allowances made during the period (Note 25) 10,809,264 4,333,460 Balance as at 30 September 18,084,081 5,262,646 Details of allowance for diminution in the value of short-term security investments as at 30 September 2015 were as follows: Securities Quantity Book value Decrease Market value compared to market price VND'000 VND'000 VND'000 Trading securities Listed shares 2, , (06,003,462) 81, HPG 826,998 29,601,479 (5, ) 23,900,242 TRC 391,190 15,366,808 (5,508,820) 9,857,988 DHG 160,109 14, (2, ) 11,768,012 POS 260,100 6,092,330 (448,160) 5, CSM 300,005 12,111,684 (41 1,489) 11,700,195 SP 89,320 2,687,100 (355,848) 2,331,252 FMC 140,690 3,548,363 (298,424) 3,249,939 FCN ,837,791 (165,791) 3,672,000 Others 188,062 9,333,590 (117,512) 9,216,078 Unlisted shares 303 6,861 (5,619) 1,242 97,350,199 (16,009,081) 81,341,118 Other short-term investments Entrusted investments portfolio managed h Thien Viet Asset Management Joint Stock Company Listed shares 37,456,528 (2,075,000) 35,381,528 KDH 318,500 7,594,434 (682,984) PVS 395,850 11,303,609 (655,244) 10,648,365 CEO 254,800 3,521,817 (311,337) 3,210,480 FCN 291,200 6,532,066 ( ) 6,289,920 DXG 510,510 8,504,602 (183,289) 8,321,313 37,456,528 (2,075,000) 35,381, ,806,727 (18,084,081) 116,722,646 25

25 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK Details of allowance for diminution in the value of long-term investments as at 30 September 2015 were as follows: Securities Quantity Book value Decrease Market value compared to market price VND'000 NIND'000 VNIV000 Investment securities Available-for-sale securities Unlisted share.s. TVT 50,000 3,000,000 (L688,480) 1,311, Accounts receivable from securities trading activities Receivables from securities trading activities (4') 3,196,000 Receivables from fees for securities trading transactions 58,216 Receivables from securities custody fee 47,660 Other receivables 27,426 30/9/ /12/2014 VNIY000 VNIY000 3,329,302 I 13,025 (*) This represents receivables from the Vietnam Securities Depository from trading of listed securities. The receivables had a term of 3 days and was received in July 2015, 8. Other receivables 30/9/ /12/2014 VND'000 NIND'000 Advances to customers (i) [1, ,716,610 Other receivables from customers 30,000,000 Dividends receivable 634,901 Interest receivable from deposits at banks 20,503,856 9,338,239 Receivables from security deposits 37,102,037 25,920,132 Other receivables 635,244 1,288,115 70,026,870 85, (i) Advances to customers for securities trading activities had original terms from I to 5 days. 26

26 THIEN VIET SECURITIES JOINT STOCK COMP AN Y Form BO9a-CTCK 9. Tangi ble fixed assets For the.six-mont11 period ended 30 September 2015 Motor Office Structures vehicles equipment VNIV000 VNIY000 NIND'000 Others VNIVOIXI Total \rnd O00 Cost Balance as at 1 January 1,491, ,122 [2,750,425 Additions 139, ,596 15,085,7] 1-139,394 Balance as at 30 September 1,491, , ,889,81.9 Accumulated depreciation Balance as at 1 January 1, 1 80, , ,535,238 Charge For the period 142,911 80, ,596 15,225, ,354 14, , Balance as at 30 September 1,323, , ,615,g52 [67,535 14,748,416 Net book value Balance as at I January 310, ,187 Balance as at 30 September 167, ,967 51, , included in the cost of tangible fixed assets were assets costing VND13,723,337 thousand which were fully depreciated as of 30 September 2015 (31.112/2014: V7\11)13,723,337 thousand). but %villa are still in active use. 27

27 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK For the six-month period ended 30 September 2014 Motor Office Structures vehicles equipment Others Total VND'000 VNIV000 ND'000 VHD 000 VNLV000 Cost Balance as at 1 January 1, ,568, ,596 14,903,651 Additions.43,000 43,600 Balance as at 30 September 1,491, ,12? 12,611, ,596 14,946,651 Accumulated depreciation Balance as at 1 January 830, ,218 11,773, ,991 13,355,184 Charge for the period 142,9 [1 8, ,065 16, Balance as at 30 September ,122 12,359, ,173 14, Net book value Balance as at 1 January 661,362 8, ,596 83,665 1,548,467 Balance as at 30 September 518,451 25%531 67, , Intangible fixed assets Cost Software Period Period from 1/J/2015 from 1/1/20141 to 30/6/2(115 to 30/ VNIY0110 VNE1'00(1 Balance as at I January 6,347,650 6,275,910 Additions 153,500 Balance as at 30 September 6,501,150 6,275,910 Accum ul red depreciation Balance as at I January 5,264,278 4,578,406 Charge for the period 362, Balance as at 30 September 5,626,561 4,900,509 Net hook value Balance as at I January 1,083,372 1,697,504 Balance as at 30 September 874, ,401 Included in the cost of intangih]e tixed assets were assets costing VND5,247,650 thousand which were fully amortised as of 30 September 2015 but which are still in use (3 [ /12;20 [41 VN1D3,12 [,550 thousand). 28

28 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK 11. Construction in progress Period Period from 1/1/2015 from 1/1/2014 to 30/9/2015 to 3016/2014 VND'000 VND'000 Opening balance 200,000 Additions L Closing balance 1,617, ,000 Construction in progress as at 30 September 2015 represents 30% of the contract value for the security trading software which is under implementation and not ready for use yet_ 12. Deferred tax assets (1) Recognized deferred tax assets and liabilities 30/9/ /12/2014 VND'000 VNIV000 Deferred tax asset Allowance for diminution in value of investment securities Allowance for doubtful debts Net deferred tax assets 371, ,466 2,175,947 2,508,618 2,547, {ii) Unrecognized deferred tax assets Deferred tax assets have not been recognized in respect of the following items: 30/9/2015 Temporary difference Tax value VND VND Tax losses 6, ,326,023 31/12/2014 Temporary difference Tax value VND VND 6,027, V( ; T ia '1, N The tax losses expire in the following year: Year of expiry Status of tax review 2015 Outstanding Tax losses available VND'000 6,027,379

29 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK 13. Deposits at Payment Support Fund These represent deposits at the Vietnam Securities Depository. According to Decision No. 57/QD-VSD dated 28 May 2012 issued by the Vietnam Securities Depository, the Company is required to de posit an initial amount of VND120 million at the Vietnam Securities Depository and an annual contribution of 0.01% of the total value of brokered securities, which are listed and registered for transactions in the Stock Exchanges, in the previous period wi th the maximum of annual contribution of VND2.5 billion to Payment Support Fund. Movements of deposits at Payment Support Fund during the period were as follows: Balance as at 1 January Increase during the period Period Period from 1/1/2015 from 1/1/2014 to 30/9/2015 to 30/9/2014 VND VND Balance as at 30 September 14. Short-term borrowings Terms and conditions of outstanding overdrafts were as follows: Annual 30/9/ / Currency interest rate VND'000 VND'000 Borrowing 1 Borrowing 2 VND VND Fixed rate Fixed rate 1. These represent overdrafts at Joint Stock Co mmercial Bank for Investment and Development of Vietnam - Ha Thanh branch and Thang Long branch and secured by deposit contracts with terms ranging from 12 to 13 months with a total book value of VND70,000,000 thousand at an interest rate from 6.45% as at 30 September 2015 (31/12/20 l 4: VND202,900,000 thousand, terms of 13 months, interest rate of 7% per annum) (Note 6). 30

30 THIEN VIET SECURITIES JOINT STOCK COMPANY Form BO9a-CTCK 1 5. Accounts payable - trade Software maintenance fees payable Other payables 30/9/ /12/2014 VND'000 VND' Taxes payable to/(receivable from) State Treasury Payables Corporate income tax Personal income tax Value added tax Other taxes 30/9/ /12/2014 VND'000 VND'000 Receivables Value added tax 17. Accrued expenses 30/9/ /12/2014 VNTP000 VND'000 Accrual of business salaries 10,485,654 Accrued interest ,552.P. 18. Other payables 30/9/ /12/2014 VND'000 VND'000 Dividends payable 1,163,730 1,082,628 Other payables 15,400 15,357 1,179,130 1,097,985 31

31 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK 19. Accounts payable for securities trading activities Payables for securities trading activities include deposits from investors for payments of sjecurities transactions. 20. Bonus and welfare fund Bonus and welfare fund is established by appropriating from retained profits as approved by General Meeting of Shareholders, This fund is used to pay bonus and welfare to the Company's employees in accordance with the Company's financial policies. Movements of bonus and welfare fund during the period were as follows: Period Period from 1/1/2015 from 1/1/2014 to 30/9/2015 to 30/9/2014 VND'000 VND'000 Opening balance 8,775,412 8,970,86] Appropriation during the period 3,950,287 Utilisation during the period (841,000) (106,699) Closing balance 11,884,699 8,864, Share capital The Company's authorised and issued share capital are: 30/9/ /12/2014 Number of Number of shares VND'000 shares VND'000 Authorised and issued share capital 43,000, ,000,000 43,000, ,000,000 Treasury shares Ordinal). shares (4,300,000) (35,631,190) (4,300,000) (35,631,190) Shares in circulation Ordinary shares 38, ,368,810 38,700, ,368,810 All ordinary shares have a par value of VND10,000. Each share is entitled to one vote at meetings of the Company. Shareholders are entitled to receive di vidends as declared from time to time. All ordinary shares are ranked equally with reward to the Company's residual assets- In respect of shares bought back by the Company, all rilits are suspended until those shares are reissued. 32

32 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK 22. Revenue from securities brokerage This represents brokerage fee from securities trading transactions of customers which is calculated at rates ranging from 0.15% to 0.5% of the value of customers' trading transactions (six -month period ended 30 September 2014; from 0.15% to 0.5%). 23. Revenue from securities trading Period Period from 1/1/2015 from 1/1/2014 to 30/ to 30/9/2014 VND'000 VND'000 Gains from shares trading 15,524,114,905 49,153,706,231 Gains from bonds trading - 3,754,326,011 Dividends income (Note 27) 5,633,341,400 1,393,487,010 Interest income from bonds - 21,157,456,305 54,301,519, Other revenue Period Period from 1/1/2015 from 1/1/2014 to 30/9/2015 to 30/9/2014 VN E11000 VND'000 Interest income from deposits at banks 4,847,305,221 3,060,835,342 interest income from advances to customers 310,244, ,415,921 Income from security deposits 1,129,096, ,152,025 Other revenue 71,706, ,488,351 6,358,352,480 4,196,891,639 33

33 THIEN V1ET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK 25. Operati ng expenses Period Period from 1/1/2015 from 1/ to 30/9/2015 to 30/9/2014 VND'000 VND'000 Losses on securities trading 4,050,950,095 2,419,760,000 Allowance for diminution in the value of securities investments (Note 6(iii)) 6,667,963,597 18,192,450,493 Salary and related expenses 10,482,715,658 2,521,653,336 Interest expense 1,431,351, ,961,975 Outside services expenses 1,008,880, ,552,596 Office rental expenses 384,280, ,914,347 Taxes and fees 919,191,986 1,109,007,392 Depreciation and amortisation expenses 186,904, ,778,561 Expenses for materials and tools 136,253, ,228,716 Other expenses 565, ,198 25,493,430,145 26,707,053, General and admi nistration expenses Period Period from 1/1/2015 from 1/1/2014 to 30/9/2015 to 30/9/2014 VND' ND'000 Salary and related expenses 4,607,262 4,031,566 External services expenses 1,487, Depreciation and amortisation expenses 159, ,975 Taxes and fees 83,180 23,180 Other expenses 678,816 1,279,020 7,016,

34 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK 27. Income tax (a) Recognized in the statement of income Period Period from 1/1/2015 from 1/1/2014 to 30/9/2015 to 30/9/2014 VND'000 VSD'000 Current tax expense Current period 10,792,422 Deferred tax expense Origination of temporary differences 233,612 Income expense 11,063,251 11,026,034 (b) Reconciliation of effective tax rate Period Period from 1/1/2015 from 1/1/2014 to 30/9/2015 to 30/9/2014 VND'000 VND'000 Profit before tax 57,171,702 56,283,285 Tax at the Company's tax rate 12,577, ;323 Non-deductible expenses 4,581 12,767 Tax exempt income (4') (1,519,104) (1,369,056) 11,063,251 11,026,034 (') (c) Included therein are dividends received from equity investments in other entities amounting to VND in accordance with the Law on Corporate Income Tax (period from 1/1/2014 to 30/9/2014: VND ). Applicable tax rates The Company has an obligation to pay the Government income tax at the rate of 22% of taxable profits. On 19 September 2013, the National Assembly approved the Law on amendments and supplements to a number of articles of the Corporate Income Tax Law. Accordingly, the highest income tax rate shall be reduced from 25% to 22% for 2014 and 2015, and to 20% from

35 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK 28. Basic earnings per share The calculation of basic earnings per share for the six-month period ended 30 September 2015 was based on the profit attributable to ordinary shareholders of VND (six-month period ended 30 September 2014: VND ) and a weighted average number of ordinary shares outstanding of 43,343,888 shares (six-month period ended 30 September 2014:43,343,888 shares), calculated as follows: Net profit attributable to ordinary shareholders Period Period from 1/1/2015 from 1/1/2014 to 30/9/2015 to 3016/2014 V:Cll'000 VNE0000 Net profit during the period 46,108,451 45,257,251 (it) weighted average number qf ordinuty.5hares Period Period Period from 1/1/2015 from 1/1/2014 from 1/1/2014 to 30/9/2015 to to 30/9/2014 (Restated) (As previously stated) Issued ordinary shares at the beginning of the period 43,000,000 43, ,000,000 Effect of treasury shares held (4,300,000) (4, ) (4,300,000) Effect of shares issued as at 3 July 2015 (*) 4,643,888 4,643,888 Weighted average number of ordinary shares for the six-month 43,343,888 period ended 30 September (ill) Basic earnings per share Period Period Period from 1/1/2015 from 111/2014 from 1/1/2014 to 30/9/2015 to 30/9/2014 to 30/9/2014 (Restated) (As previously stated) Basic earnings per share (VND/share) , (*) According to the Resolution No. 01/2015/NQ-DHCD dated 14 April 2015 of the General Meeting of Shareholders. Resolution No, NQ-1-1.DQT dated 17 April 2015 of the Board of Directors and the Report on issuance of share dividends dated 14 July 2015, the Company issued 4,643,888 ordinary shares using retained profits to distribute dividends in the form of shares (Note 29). 36

36 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK 29. Dividends According to Resolution No. 01/2015INQ-DI ICD dated 14 April 2015 of the General Meeting of Shareholders and Resolution No /NO-HDQT dated 17 April of the Board of Directors, during the period, the Company announced the second payment of di vidends for 2014 amounting to VND23,220,000 thousand (6% of par value or 'v'nd600 per share for payment of dividends in cash) (six-month period ended 30 September 2014: VND42,570,000 thousand, equivalent to 11% of par value or VND I,100 per share). On 3 July 2015, the Company approved and successfully implemented the plan to issue shares as dividend payments for 2014 in accordance with Resolution No NQ-DHCD of the General Meeting of Shareholders dated 14 April Accordingly, the number of new shares issued was 4,643,888 shares, equi valent to an issuance ratio of 10.8%. Existing shareholders were entitled to dividends by shares at the rate of 12% (12 newly issued shares for e very 100 existing shares held). These shares were issued using retained profits. 37

37 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK 30. Movements of accounts receivable Period from 1/1/2015 to 30/9/2015 Items Opening balance Movements in the period Closing balance Allowance Overdue Doubtful Overdue Doubtful made '1 oral amount amount Increase Decrease Total amount amount VN 1).000 VND'000 VND'000 VNLY001.1 VISID'000 VND'000 VND'000 VND'009 VND'000 Accounts receivable from customers 5,840,864 60,117,511 65,950,998 7,377 Prepayments to suppliers 2,549,944 76,714 2,450, ,658 Accounts receivable fi.om securities trading activities 113,025-6,455,310 3,239, ,302 Other receivables 85,897, ,719, ,590,672 70,026,870 94,401, ,369, ,230,703 73,540,207 Period, from 1/1/2014 to 30/9/2014 Items Opening balance Movements in the period Closing balance Allowance Overdue Doubtful Overdue Doubtful made Total amount amount increase Decrease Total amount amount VND'000 VND'000 VND'000 VND'000 VND'000 VND'000 VND'000 VND'000 VND'000 Accounts receivable from customers 11,018, ,316 53,319,434 1,147, , , ,321 Prepayments to suppliers 208, ,810 I 87,724 Accounts receivable from securities trading activities 43,093-3,556,425 3,532, Other receivables 62,988,105 50,286,882 8,512, ,492, ,491,863 69, ,231,432 8,512,000 42,143,272 74,258,263 51,260,198 9,312, ,585, ,453,378 71_390,847 51,204, ,000 43,064,593 38

38 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK for the six-month period ended 30.September 2015 (continued) 31. Financial instruments (a) Financial risk management The Company has exposure to the following risks from its use of financial instruments: credit risk; liquidity risk; and market risk. This note presents information about the Company's exposure to each of the above risks, the Company's objectives, policies and processes for measuring and managing risk. The Company's Supervisory Board oversees how management monitors compliance with the Company's risk management policies and procedures, and reviews the adequacy of the risk management policies in relation to the risks faced by the Company. (b) Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers and investments in debt securities, Exposure to credit risk The total of carrying amounts of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was as follows; 30/ /2014 VND'000 VND0000 Cash in banks and cash equivalents (h) ,288 75,380,448 Short-term investments 315,660, Accounts receivable from customers (iii.) 7,377 5,840,864 Prepayments to suppliers 176,658 2,549,944 Receivables from securities trading activities 3,329, ,025 Other receivables 70, ,897,997 Short-term prepayments 1,241, ,709 Other current assets 521, ,308 Long-term prepayments 501, ,680 Deposits at Payment Support Fund 3,399,216 3,066,824 Other long-term assets 1,018,677 1,018, ,576, ,879,476 39

39 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK (ii) (iii) Cash at bank and cash equivalents The cash at bank and cash equi valents of the Company is mainly held with well-kno wn financial institutions. Management does not foresee any significant credit risks from these deposits and does not expect that these financial institutions may default and cause losses to the Company. Accounts receivable from customers Accounts receivable from customers are neither past due nor impaired. Management believes that those receivables are of high credit quality. (e) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. The financial liabilities with fixed or determinable payments maturities including the estimated interest payments. have the following contractual As at 30 September 2015 Carrying Contractual amount cash flows Within 1 year VNTY000 VNTP000 VND'000 Short-term bon-owings 214, ,209, ,209,400 Accounts payable to suppliers 4,657,313 4,657,313 4,657,313 Accrued expenses 10,714,927 10,714,927 10,714,927 Accounts payable for securities trading activities 73,947,559 73,947,559 73,947,559 Dividends, bonds principal and interest payables on behalf 94, ,184 Other payables 1,163,730 1,163,730 1,163, ,652, ,787, ,787,113 As at 31 December 2014 Carrying Contractual amount cash flows Within 1 year VND'000 VND'000 VND'000 Short-tc rrn borrowings 144,935, ,365, ,365,450 Accounts payable to suppliers 4,677,592 4,677,592 4,677,592 Accrued expenses 154, , ,552 Accounts payable for securities trading activities 66,010,723 66,010,723 66,010,723 Dividends, bonds principal and interest payables on behalf Other payables 1,082,628. 1,082,628 1,082, ,860, , ,291,201 The Company manages its ability to meet the expected operational expenses and servicing its debts by investing its cash surpluses in short-term investments and maintaining several bank facilities. 40

40 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK (d) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company's results of operations or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. (1) Currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates, The Company is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the accounting currency of the Company. The currency in which these transactions are denominated is USD. Exposure to currency risk The Company had the following net monetary liability position exposed to currency risk: 30/9/ /12/2014 Dominated in Dominated in USD USD (VNIY4000 (INIV000 equivalents) equivalents) 1 3 V, Cash and cash equivalents 2,970,423 18,195 Other payables (3,931,200) (3,847,500) The following is the significant exchange rate applied hy the Company: (960,777) (3,829,305) Exchange rate as at 30/9/ /12/2014 USD/VND 2,780 21,375 tip KF V Below is an analysis of the possible impact on the net profit and owner equity of the Comnpany for the six-month period ended 30 September 2015 after taking into account the current level of exchange rates and the historical volatility as well as market expectations as at 30 September This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecasted sales and purchases: Effect to net profit and owner equity as at 30/9/ /12/2014 VND VND USD ( 1% strengthening) (7,494) (29,869) The opposite movement of the currencies would have the equal but opposite effect to the net profit and owner equity of the Company as at 30 September

41 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK (ii) Interest rate risk At the reporting date the interest rate profile of the Company's interest-bearing financial instruments was: Carrying amount 30/9/ /12/2014 VNIP000 VND'001) Fixed rate i nstruments Financial assets Cash equivalents 2, Other short-term investments - Term deposits 309,000, ,400,000 Deposits at Payment Support Fund 3,399,216 3, Other receivables from investors 30,000,000 Financial liabilities Short-term borrowings (214,075,000) (144,935,000) 101,190, ,531,824 Variable rate instruments Financial assets Call deposits 75, Other short-term investments - Term deposits 6, ,488,075 75,380,448 A change of 100 basis points in interest rates would have increased or decreased net profit of th e Company by VND (31/12/2014: VND ). This analysis assumes that all other variables, in particular foreign currency rates, remain constant. (iii) Market price risk Equity price risk arises from equity securities held by the Company. Management of the Company monitors equity securities in its investment portfolio based on market indices. Material investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by management or by the Board of Directors as necessary. Trading securities and investment securities of the Company are exposed to market price risk arising from uncertainty related to movements of their future market prices_ The Company manages market price risk of equity securities by diversifying its investment portfolio and in prudently electing securities for investment within the set limits. As at 30 September 2015, the market value of the Company's listed equity securities was VND214,307,801,799 (31/12/2014: VND249,435,441)

42 THIEN VIET SECURITIES JOINT STOCK COMPANY Form B09a-CTCK Fair values Fair values versus carrying amounts The fair values of financial assets and liabilities, together with the carrying amounts shown in the balance sheet, are as follows: 30/9/ /12/2014 Carrying Carrying amount Fair value amount Fair value VND VND VND VND Categorized as financial assets al fair value through profit or loss.- Listed shares 327,034, , ,457, ,435,441 Categorized as available:pr-sale: Long-term investment securities 10,369,779 (1 10,369,779 (*) Categorised as loans and receivables Cash and cash equivalents 78,694,288 78,694,288 75,380,448 75,380,448 Other short-term investments 315,660,035 (*) 338,400,000 (4) Account receivables 73,540,207 (*) 94, (4) Short-term prepayments 1,241,053 (*) (*) Other short-term assets 521, ,308 (*) Long-term prepayments 501,342 (*) 568,680 (4) Deposits at Payment Support Fund 3,399,216 (*) 3,066,824 (*) Other long-term assets 1,018,677 (*) 1,018,677 (*) Categorised as liabilities at ainortis.ed cost: Short-term borrowings (1,200,000,000) (144,935,000,000) Trade payables (180,161,968) (4,677,592,098) Accrued expenses (18,444,893,723) (154,552,222) Accounts payable for securities trading activities (142,988,525,365) (66,010,723,475) Dividends, bonds principal and interest payables on behalf (126,785,100) (255,760) Other payables (1,144,634,575) (1,082,627,825) (*)The Company has not determined fair values of these financial instruments for disclosure in the financial statements because information about their market prices is not available and there is currently no guidance on determination of fair value using valuation techniques under the Vietnamese Accounting Standards, The fair values of these financial instruments may differ from their carrying amounts. 43