bckt hop nhat 2009 tra eng

8/8/2019 bckt hop nhat 2009 tra eng

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TRAPHACO JOINT STOCK COMPANYAudited Consolidated Financial Statements

for the year ended 31 December 2009


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TRAPHACO JOINT STOCK COMPANY

75 Yen Ninh - Ba Dinh - Hanoi

CONTENTS

Pages

Report of The Board of Directors 02 - 04

Auditors Report 05

Audited Consolidated Financial Statements 06 - 26

Balance Sheet 06 - 08

Income Statement 09

Cash Flow Statement 10

Notes to the Financial Statements 11 - 26

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COMPANY

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Name Address

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Name Address

- Sapa town - Sapa district - Lao Cai province

Company's Legal capital: VND 101,981,500,000 (One hundred and one billion, ninety hundred eighty one million and

five hundred thousand Vietnamese Dongs). Equivalent to 10,198,150 shares with the price of VND 10,000 per share.

Manufacturing and trading Pharmaceutical, chemicals and medical equipment;

Making up a prescription;

Manufacturing, trading food;

Consulting on producing pharmaceutical, cosmetics;

Manufacturing, trading cosmetics;

The Board of Directors of Traphaco Joint Stock Company (the company) presents its report and the Companys

Consolidated financial statementsfor the year ended 31 December 2009.

Traphaco Joint Stock Company is a joint stock company which was transformed from State-owned Company into Joint-

Stock Company under Decision No. 2566/1999/QDD-BGTVT dated 27 September 1999 of Mister of Transport.

Company's transaction name is Traphaco Joint Stock Company.

Under Business License No 058437 issued by Hanoi office for Planning and Investment dated 24 December 1999 (the

11th amended on 14 December 2009), the Companys business fields are:

Purchasing, cultivating, processing medicinal herbs;

REPORT OF THE BOARD OF DIRECTORS

Producing, sales of wine, beer, soft drinks (not including business in bars).

Import and export raw materials for drugs and drug products;

Consulting on Science and Technology services, Technology transfer in the field of medicine and pharmacy;

The companys head office is located at 75 Yen Ninh - Ba Dinh - Hanoi.

The Companys member entities are as follows:

Hochiminh Branch Road No. 3/2, District No. 10 - Hochiminh City

Da Nang Branch No. 255 Ton Duc Thang - Lien Chieu District - Da

Nang city

The Company's subsidiaries are as follows:

Nam Dinh Branch Truong Han Sieu Road, Hoa Vuong urban area,

Nam Dinh city, Nam Dinh province.

Traphacosapa One Member Limited Company

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BOARD OF MANAGEMENT, BOARD OF DIRECTORS AND BOARD OF CONTROLLERS

The members of the Board of Management are:

Ms. Vu Thi Thuan Chairman

Ms. Nguyen Thi Mui Vice ChairmanMr. Nguyen Huy Van Member

Mr. Tran Tuc Ma Member

Ms. Hoang Thi Ruoc Member

The members of the Board of Directors are:

Ms. Vu Thi Thuan Genaral Director

Ms. Nguyen Thi Mui Deputy Genaral Director

Ms. Pham Thi Phuong Deputy Genaral Director

Mr. Nguyen Huy Van Deputy Genaral Director

Mr. Tran Tuc Ma Deputy Genaral Director

The members of the Board of Controllers are:

Mr. Nguyen Tat Van Head of Control Department

Ms. Nguyen Thi Kim Hoa Member

Ms. Nguyen Thi Hau Member

AUDITORS

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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.

STATEMENT OF THE BOARD OF DIRECTORS RESPONSIBILITY IN RESPECT OF THE

CONSOLIDATED FINANCIAL STATEMENTS

State whether applicable accounting standards have been followed, subject to any material departures disclosed and

explained in the financial statements; and

The auditors of Auditing and Accounting Financial Consultancy Service Company Limited (AASC) take the audit of

financial statements for the Company.

The Board of Directors is responsible for the Consolidated 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 and cash flows for the year. In preparing

those financial statements, The Board of Directors is required to:

Select suitable accounting policies and then apply them consistently;

Make judgments and estimates that are reasonable and prudent;

The Board of Directors 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 the prevention and detection of fraud and other irregularities.

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Other commitments

Hanoi, 25 January 2010

On behalf of The Board of Directors

Genaral Director

Vu Thi Thuan

The Board of Directorspledges that the company does not offend obligation of information disclosure under regulation

in Circular No.38/2007/ND-CP dated 18 April 2007 issued by Ministry of Finance guiding disclosure of information on

Securities Market.

We, The Board of Directors, confirm that the consolidated financial statements for the year ended 31 December 2009

prepared by us, give a true and fair view of the financial position at 31 December 2009, its operation results and cash

flows in the year 2009 of Company accordance with the Vietnamese Accounting System and comply with relevant

statutory requirements.

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No.: /2010/BC.KTTC-AASC.KT2

To: The Board of Management and The Board of Directors

Traphaco Joint Stock Company

Basis of opinion

Auditors opinion

Hanoi, 02 March 2010

Auditing and Accounting Financial Consultancy

Service Company Limited (AASC)

Deputy Genaral Director Auditor

Nguyen Thanh Tung Vu Xuan Bien

Registered Auditor No : 0063/KTV Registered Auditor No : 0743/KTV

AUDITORS REPORT

On the consolidated financial statements for the year ended 31 December 2009

of Traphaco Joint Stock Company

We have audited the consolidated financial statements of Traphaco Joint Stock Company prepared on 25

January 2010 including: Balance Sheet as at 31 December 2009, Income Statement, Cash Flow Statement and

Notes to Financial Statements for the year ended 31 December 2009 as set out on pages 06 to 26.

These financial statements are the responsibility of the Companys Boad of Directors. Our responsibility is toexpress an opinion on these financial statements based on our audit.

We conducted our audit in accordance with Vietnamese and International 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 Boad of Directors, as well as evaluating the overall financial statements presentation. We

believe that our audit provides a reasonable basis for our opinion.

In our opinion, the Consolidated Financial Statements of Traphaco Joint Stock Company give a true and fair

view, in all material respects, of the financial position of the Company as at 31 December 2009, and of the

results of its operations and its cash flows for the year then ended in accordance with the Vietnamese

Accounting Standards and system and comply with relevant statutory requirements.

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TRAPHACO JOINT STOCK COMPANY Consolidated Financial Statements

75 Yen Ninh - Ba Dinh - Hanoi for the year ended 31/12/2009

ASSETS Note 31/12/2009 01/01/2009VND VND

100 A CURRENT ASSETS 341,632,940,979 303,875,667,943

110 I Cash and cash equivalents 5,433,848,068 10,176,464,217

111 1 Cash 3 5,433,848,068 10,176,464,217

120 II Short-term investments 4 567,000,000 17,979,000,000

121 1 Short-term investments 567,000,000 17,979,000,000

130 III Short-term accounts receivable 214,450,965,933 125,238,881,707

131 1 Trade receivables 195,362,720,322 115,851,478,910

132 2 Advances to suppliers 19,928,466,029 8,995,485,978

135 5 Other receivables 5 952,046,187 2,446,307,621

139 6 Provisions for short-term bad debts (*) (1,792,266,605) (2,054,390,802)

140 IV Inventory 117,964,375,418 147,374,323,214

141 1 Inventory 6 117,964,375,418 147,374,323,214

150 V Other current assets 3,216,751,560 3,106,998,805

152 2 VAT deductibles 912,747,483 489,100,420

158 4 Other current assets 2,304,004,077 2,617,898,385

200 B NON- CURRENT ASSETS 64,519,024,042 55,443,872,102

220 II Fixed assets 59,686,632,638 51,463,788,652221 1 Tangible fixed assets 7 43,011,342,405 35,207,972,145

222 - Cost 107,005,421,817 90,501,419,809

223 - Accumulated depreciation (*) (63,994,079,412) (55,293,447,664)

227 3 Intangible fixed assets 8 15,322,132,165 12,764,332,165

228 - Cost 15,322,132,165 12,764,332,165

229 - Accumulated amortization (*) - -

230 4 Construction in progress 9 1,353,158,068 3,491,484,342

250 IV Long-term investments 10 2,250,000,000 3,925,000,000

252 2 Investments in joint-ventures, associates - 1,675,000,000

258 3 Other long-term investments 2,250,000,000 2,250,000,000

260 V Other long-term assets 2,582,391,404 55,083,450

261 1 Long-term prepaid expenses 11 1,037,533,963 -

262 2 Deferred tax assets 16 117,016,342 -

268 3 Other long-term assets 51,647,950 55,083,450

269 VI GOODWILL 1,376,193,149 -

270 C TOTAL ASSETS 406,151,965,021 359,319,540,045

CONSOLIDATED BALANCE SHEETAs at 31 December 2009

Code

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RESOURCE Note 31/12/2009 01/01/2009VND VND

300 A LIABILITIES 142,073,906,846 101,920,924,930

310 I Current liabilities 138,366,085,438 98,264,962,144

311 1 Short-term loans and debts 12 57,641,177,489 25,242,998,187

312 2 Trade payables 26,986,122,350 48,147,285,280

313 3 Advances from customers 601,842,491 913,763,336

314 4 Tax payables and statutory obligations 13 15,885,064,778 11,925,684,495

315 5 Payables to employees 11,198,182,269 2,792,357,498

316 6 Accrued expenses 14 1,502,795,766 258,833,890

319 9 Other payables 15 24,550,900,295 8,984,039,458

330 II Long-term liabilities 3,707,821,408 3,655,962,786

336 6 Provision for unemployment allowances 3,707,821,408 3,655,962,786

400 B OWNERS EQUITY 264,078,058,175 257,398,615,115

410 I Equity 17 259,176,886,996 252,597,691,351

411 1 Contributed legal capital 101,981,500,000 80,000,000,000

412 2 Share captial surplus 92,063,700,000 112,460,000,000

414 4 Treasury stocks (*) (2,520,000) -

416 6 Foreign exchange differences (407,499,441) -

417 7 Invesment and development fund 54,907,930,557 51,509,961,947

418 8 Financial reserve fund 11,202,531,576 8,627,729,404

420 10 Retained profit (568,755,696) -

430 II Other capital and funds 4,901,171,179 4,800,923,764

431 1 Bonus and welfare fund 5,123,316,839 4,967,619,424

432 2 Subsidized not-for-profit funds 18 (222,145,660) (166,695,660)

439 C MINORITY INTEREST - -

440 C TOTAL RESOURCE 406,151,965,021 359,319,540,045

(continue)

As at 31 December 2009

Code

CONSOLIDATED BALANCE SHEET

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Unit: VND

Item Note 31/12/2009 01/01/2009

5 Foreign currencies - -

- USD 3,139.29 6,466.82

Prepared, 25 January 2010

Prepared by Chief Accountant Genaral Director

Nguyen Ngoc Thuy Dinh Trung Kien Vu Thi Thuan

OFF-BALANCE SHEET ACCOUNTS

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Note Year 2009 Year 2008

VND VND

01 1 Revenue from sale of goods and rendering of

services 19 753,766,984,836 785,388,835,470

02 2 Deductible items 6,725,899,684 5,205,801,832

10 3 Net revenue from sale of goods and rendering

of services 747,041,085,152 780,183,033,638

11 4 Cost of goods sold 20 531,919,771,171 618,890,990,912

20 5 Gross profit from sale of goods and rendering

of services 215,121,313,981 161,292,042,726

21 6 Revenue from financial activities 21 4,637,720,698 5,588,999,458

22 7 Financial expenses 22 6,793,842,404 4,432,974,633

23 In which: Interest payable 4,619,625,653 3,750,061,772

24 8 Selling expenses 99,426,062,384 71,986,868,831

25 9 Administrative expenses 39,046,083,826 31,291,566,476

30 10 Net profit from operating activities 74,493,046,065 59,169,632,244

31 11 Other income 682,158,597 58,113,400

32 12 Other expense 5,618,209,988 432,157,194

40 13 Other profit (4,936,051,391) (374,043,794)

50 14 Total profit before tax 69,556,994,674 58,795,588,450

51 15 Current business income tax expenses 23 18,626,847,235 12,757,211,817

52 16 Deferred business income tax expenses 16 (117,016,342) -

60 17 Profit after tax 51,047,163,781 46,038,376,633

70 18 Basic earnings per share 24 6,231 5,755




Item

CONSOLIDATED INCOME STATEMENTYear 2009

Code

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Note Year 2009 Year 2008

VND VND

I Cash flows from operating activities

01 1 Revenue from sale of goods and rendering

services and other revenue

744,871,239,452 655,877,062,327

02 2 Cash paid to suppliers (667,120,049,298) (563,272,012,664)

03 3 Cash paid to employees (52,295,779,564) (50,824,173,730)

04 4 Interest paid (4,592,013,273) (3,750,061,772)

05 5 Enterprise income tax paid (15,447,106,815) (9,384,801,482)

06 6 Other receipts from operating activities 6,527,780,784 2,415,437,240

07 7 Other expenses on operating activities (48,617,335,778) (43,998,903,231)

20 Net cash flows from operating activities (36,673,264,492) (12,937,453,312)

II Cash flow from investing activities

21 1 Purchase of fixed assets and other long-term

assets

(6,538,674,589) (4,668,857,566)

22 2 Proceeds from disposals of fixed assets and other

long-term assets

215,000,000 40,000,000

23 3 Loans to other entities and purchase of debt

instruments of other entities

(2,660,000,000) (15,000,000,000)

24 4 Repayment from borrowers and proceeds from

sales of debt instruments of other entities

20,501,500,000 -

27 7 Interest, dividends and profit received 4,534,632,630 4,157,668,805

30 Net cash flows from investing activities 16,052,458,041 (15,471,188,761)

III Cash flows from financing activities

32 2 Fund returned to equity owners, issued stock

redemption

(2,520,000) -

33 3 Long-term and short-term borrowings received 86,278,056,712 10,552,000,000

34 4 Loan repayment (53,879,877,410) (80,214,400,001)

36 6 Dividends, profit paid to equity owners (16,517,469,000) (15,679,401,600)

40 Net cash flows from financing activities 15,878,190,302 (85,341,801,601)

50 Net cash flows within the period (4,742,616,149) (113,750,443,674)

60 Cash and cash equivalents at the beginning of 10,176,464,217 123,921,091,009

61 Impact of foreign exchange fluctuation - 5,816,882

70 Cash and cash equivalents at the end of year 3 5,433,848,068 10,176,464,217




Year 2009

Code Item

CONSOLIDATED CASH FLOWS STATEMENT(Under direct method)

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1 . BACKGROUND

The form of owner's equity

Name Address

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The Company's subsidiaries are as follows:

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The Company's head office is located at Sapa town - Sapa district - Lao Cai Province

Percentage of benefit: 100%

Percentage of rights to vote: 100%

Principal activities

Business field

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Under Business License No 058437 issued by Hanoi office for Planning and Investment dated 24 December 1999

(the 11th amended on 14 December 2009), the Companys business fields are:

Purchasing, cultivating, processing medicinal herbs;

Manufacturing and trading Pharmaceutical, chemicals and medical equipment;

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSYear 2009

Traphaco Joint Stock Company is a joint stock company which was transformed from State-owned Company into

Joint- Stock Company under Decision No. 2566/1999/QDD-BGTVT dated 27 September 1999 of Mister of

Transport.

The companys head office is located at 75 Yen Ninh - Ba Dinh - Hanoi.

The Companys member entities are as follows:

Hochiminh Branch Road No. 3/2, District No. 10 - Hochiminh City

Da Nang Branch No. 255 Ton Duc Thang - Lien Chieu District - Da

Nang city

Making up a prescription;

Traphacosapa One Member Co., Ltd

Nam Dinh Branch Truong Han Sieu Road, Hoa Vuong urban area,Nam Dinh city, Nam Dinh province.

Traphacosapa One Member Limited Company officially became Subsidiary of Traphaco Joint Stock Company on

24 June 2009.

The main activities of Traphacosapa One Member Limited Company are:

- Cultivating and processing medicinal, agricultural and forest products and food;

- Producing, trading pharmaceutical products, medicinal herbs, food;

- Receiving, transferring technology cultivation, processing, manufacturing medicinal;

- Import and export pharmaceutical materials, raw materials for producing of medicines;

- Import and export of agricultural and forest products, chemicals;

- Producing and trading of wine, beer, soft drinks, cosmetics.

Consulting on producing pharmaceutical, cosmetics;

Import and export raw materials for drugs and drug products;

Manufacturing, trading cosmetics;

Principal activities of the Company are: Pharmaceutical field.

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2 . ACCOUNTING SYSTEM AND ACCOUNTING POLICY

The Company maintains its accounting records in VND.

Accounting Standards and Accounting system

Accounting System

Announcement on compliance with Vietnamese standards and accounting system

Form of accounting record

Basis for consolidation of financial statements

Annual accounting period commences from 1st January and ends on 31st December.

The company applies Enterprise Accounting System issued under Decision No.15/2006/Q-BTC dated 20

March, 2006 by Minister of Finance.

The company applies Vietnamese Accounting Standards and supplement documents issued by the State. Financialstatements are prepared in accordance with regulations of each standard and supplement documents as well as

with current accounting system.

Manufacturing, trading food;

Consulting on Science and Technology services, Technology transfer in the field of medicine and pharmacy;

Producing, sales of wine, beer, soft drinks (not including business in bars).

The company is applying accounting record by General Journal.

Operation results of subsidiaries which were purchased or liquidated in the period are presented on consolidated

financial statements since the purchasing or liquidated dates.

Consolidated financial statements are prepared based upon consolidating separate financial statements of the

Company and subsidiaries under its control as at 31 December annually. Control rights is in practice when the

company has power to govern the financial and operating policies of invested companies to obtain benefits from

their activities.

Financial statements of subsidiaries are prepared for the same fiscal year with that of parent companies. If

necessary, financial statements of subisidaries may be adjusted to ensure the consistence between accounting

policies applied at the company and its subsidiaries.

Balance, main income and expense, including unrealized profits from intra-group transactions are eliminated in

full from consolidated financial statements.

Minority interest reflecting profits or losses and net assets which are not held by shareholders of the company will

be presented in a separate item on consolidated balance sheet and consolidated income statement.

Goodwill

Goodwill presented on consolidated financial statements is the surplus between its purchase cost and benefit of

the company in total fair value of assets, liabilities and contingent liabilities of subsidiaries, associates or joint

ventures at the investment date. Goodwill is treated as intangible fixed assets, amortized under straight-line basis

with estimated useful life not beyond 10 years.

When selling subsidiaries, associates and joint ventures, the carrying amount of goodwill which is not fully

amortised is accounted into profit/loss of the selling transaction.

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Recognition of cash and cash equivalents

Recognition of Provision for bad debts

Recognition of inventory

Recognition and depreciation of fixed assets

- Buildings 15 - 25 year

- Machinery, equipment 03 - 07 year

- Transportation equipment 05 - 08 year

- Office equipment and furniture 03 - 06 year

- Other properties 05 - 15 year

Recognition of financial investment

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- Having maturity over than 1 year/1 operating cycle are recognised as long-term assets.

Having maturity less than 1 year/1 operating cycle are recognised as short-term assets;

Provisions for inventories obsolescence made at the end of the year are the excess of original cost of inventory

over their net realizable value.

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 (armotisation) and net book value.

The cost of finance lease fixed assets is recognised at fair value or present value of the minimum lease payments

(excluded value added tax) and initial cost directly attributable to finance lease fixed assets. During the using

time, finance lease fixed assets are recorded at cost, accumulated depreciation and net book value.

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:

Securities investment at the balance sheet date, if:

Having maturity not over than 3 months from the date of acquisition are recognised as cash equivalents;

The provision for bad debts has been made for receivables that were outstanding for 6 months and over from the

balance sheet date or were difficult to be paid due to the debtors were in liquidation, insolvency or other similar

difficulties.

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 incurred in bringing the inventories to their present location and condition.

Investments in subsidiaries over which the Company has control are stated at original cost. Distributions from

accumulated net profits from subsidiaries arising subsequent to the date of acquisition are recognized in theIncome Statement. Other distributions received (in excess of such profits) are considered a recovery of investment

and are deducted to the cost of the investment.

Inventory is recorded by perpetual method.

Cash and cash equivalents comprise cash on hand, cash in banks and 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.

The cost of inventory at the year-end is calculated by weighted average method.

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Recognition and capitalization of borrowing costs

Recognition and allocation of prepaid expenses

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Recognition of accrued expenses

Recognition of provision

Recognition of owners equity

Premium reserve is recorded by the difference (over/under) between the selling price and the par value of treasury

stocks when stocks are firstly or additionally issued or reissued.

Exchange difference on Balance sheet is the dfference revaluating foreign currency monetary items and short-

term liabilities at the ended term.

Owners equity is stated at actually contributed capital of owners.

Substantial expenditure on fixed asset overhaul.

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.

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 additionally record or make decrease to cost equivalent to the difference.

Provisions for devaluation of investments are made based on the excess of original cost in accounting books over

their market value at year-end.

Borrowing costs are recognized into operating costs during the period, except for which directly attributable tothe acquisition, construction or production of a qualifying asset included (capitalized) in the cost of that asset,

when gather sufficient conditions as regulated in SAV 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.

Value of a provision is a reasonable estimate of an amount used to settle present liabilities at the balance sheet

date.

Only expenditures that relate to the original provision are set against it.

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 areamortised to the income statement in several years:

Test run and trial production costs;

Tools and consumables with large value issued into production;

In case provision set for the previous period but not used up exceeds the one set for the current period, the

difference is recorded as decrease in production and operation expenditures. This method is not applied forprovision for warranty of construction work that is recorded into other income.

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Foreign currency transactions

Principles and method of recording revenue

Revenue from sale of goods

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Revenue from rendering of services

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Financial income

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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 Companys right to receive payment is established

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;

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

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 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, eachperiods revenue

should be recognised by reference to the stage of completion at the balance sheet date. The outcome of a

transaction can be estimated reliably when all the following conditions are satisfied:

The amount of revenue can be measured reliably;

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;

Dividends to be paid to shareholders are recognised as a payable in Balance sheet after declaration from the

Board of management.

Net profit after tax is available for appropriation to investors after approval by Board of Management and after

making appropriation to financial reserve funds and other funds in accordance with the Companys Charter andVietnamese regulatory requirements.

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.

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;

Transactions in currencies other than accounting unit of the Company (VND/USD) are recorded at the rate of

exchange ruling at the dates of transactions (or at the inter-bank exchange rate). 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. All exchange differences arising on settlement will be recorded into the financial income or expense in

the fiscal year.

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Revenue from construction contract

Recognition of financial expenses

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Principles and method of recording tax

Current tax

Deferred income tax

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.

Revenue is recognised based on completed stage of construction contract, completed stage is measured by

reference to actual expenses of completed work incurred to date as a percentage of total estimated expenses for

each contract.

Items recorded into financial expenses consist of:

Expenses or losses relating to financial investment activities;

Expenses of capital lending and borrowing;

Deferred tax is provided using the balance sheet liability method on temporary differences at the balance sheet

date between the tax base of assets and liabilities and their carrying amount for financial reporting purpose.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the year when

the asset realised or the liability is settled based on tax rates and tax laws that have been enacted at the balance

sheet date.

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be

recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are

those that are enacted by the balance sheet date.

Change in accounting policy in the year

From 2009, Exchange differences arising on revaluation monetary assets and short-term debts denominated in

foreign currencies at the year end will be recorded to Account No. 413 Differences from foreign exchange

rate. Exchange differences arising on revaluation long-term debts denominated in foreign currencies at the year

end will be recorded into the financial income or expense in the fiscal year.

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3 . CASH

Cash on hand

Cash at bank

Total

4 . SHORT- TERM FINANCIAL INVESTMENTS

Other Short-term investments (lending)

Total

5 . OTHER SHORT- TERM RECEIVABLES

Others

- Receivables from collaborators

- Mr. Hoang Ngoc Dai

- Other receivables in Traphaco Joint Stock Company

- Other receivables in Traphacosapa One Member Co., ltd

Comprising: Dang Thi Mo

Tran The Anh

Luong Thu Huong

Nguyen Thi Ly

Others

Total

6 . INVENTORY

Raw material

Work in process

Finished goods

Merchandise

Total cost of inventories

01/01/2009

VND

1,039,425,204

31/12/2009

VND

5,433,848,068

31/12/2009

VND

944,445,604

4,394,422,864 9,232,018,613

10,176,464,217

01/01/2009

VND

567,000,000 17,979,000,000

17,979,000,000

31/12/2009

VND

01/01/2009

VND

567,000,000

01/01/2009

VND

21,030,960,047

952,046,187 2,446,307,621

135,152,485 2,046,074,819

14,453,635,399 13,117,589,707

31/12/2009

VND

53,012,562,810 66,267,040,776

25,302,044,960

29,467,217,162 42,687,647,771

117,964,375,418 147,374,323,214

952,046,187 2,446,307,621

-

-

345,565,400

400,232,802

20,000,000

22,000,000

23,500,000

71,095,500 -

5,000,000

595,500

-

400,232,802

-

-

-

17


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7 . INCREASE AND DECREASE IN TANGIBLE FIXED ASSETS

Unit: VND

I. Original cost

1. Opening balance 30,789,720,238 32,665,983,674 17,040,091,573 10,005,624,324 90,501,419,809

2. Increase 8,686,709,223 3,896,976,504 3,746,658,280 1,182,900,651 17,513,244,658

- Purchase in the year - 3,601,197,164 3,746,658,280 1,182,900,651 8,530,756,095

- Finished construction investment 7,814,316,151 - - - 7,814,316,151

- Others 872,393,072 295,779,340 - - 1,168,172,412

3. Decrease - 333,866,363 627,612,215 47,764,072 1,009,242,650

- Liquidating, disposing - 333,866,363 627,612,215 47,764,072 1,009,242,650

4. Closing balance 39,476,429,461 36,229,093,815 20,159,137,638 11,140,760,903 107,005,421,817

II. Accumulated depreciation - - - - -

1. Opening balance 16,105,359,895 20,541,902,223 11,160,154,080 7,486,031,466 55,293,447,664

2. Increase 2,784,091,512 3,486,180,239 1,844,876,795 1,422,614,219 9,537,762,765

- Depreciation within period 2,159,053,440 3,190,400,899 1,844,876,795 1,422,614,219 8,616,945,353

- Others 625,038,072 295,779,340 - - 920,817,412

3. Decrease - 333,866,363 455,500,582 47,764,072 837,131,017

- Liquidating, disposing - 333,866,363 455,500,582 47,764,072 837,131,017

4. Closing balance 18,889,451,407 23,694,216,099 12,549,530,293 8,860,881,613 63,994,079,412

III. Net book value - - - - -

1. Opening 14,684,360,343 12,124,081,451 5,879,937,493 2,519,592,858 35,207,972,145

2. Closing 20,586,978,054 12,534,877,716 7,609,607,345 2,279,879,290 43,011,342,405

In which:

- Ending netbook value of tangible fixed assets pledged as loan securities: VND 11,475,272,593;

-Cost of fully depreciated tangible fixed assets but still in use in Traphaco Joint Stock Company: VND 26,440,346,094;

-Cost of fully depreciated tangible fixed assets but still in use in Traphacosapa One Member Limited Company: VND 295,779,340;

- Other increase is the value of asset transfered from Traphacosapa Limited Company to Traphacosapa One member Limited Company.

Item Buildings TotalMachinery,

equipment

Transportation

equipment

Manegement

equipment

18


20/27



8 . INCREASE AND DECREASE IN INTANGIBLE FIXED ASSETS

I. Original cost

1. Opening balance2. Increase

- Purchase in the year

3. Decrease

4. Closing balance

II. Accumulated depreciation

1. Opening balance

4. Closing balance

III. Net book value

1. Opening

2. Closing

9 . CONSTRUCTION IN PROGRESS

Construction in progress

- New office construction in Hochiminh Branch

- New office construction in Hoang Liet

- New office construction in Yen Ninh

- New office construction in Nghe An

- New office construction in Thanh Hoa

- Other constructions

Total

10 . LONG- TERM INVESTMENTS

Investments in associates, joint venture

- Traphacosapa One Member Limited Company (*)

Other long-term investments

- Traphaco High Tech Joint Stock Company

Total

11 . LONG-TERM PREPAID EXPENSES

Tools and consumables with large value issued into production

Repairing factory in Hoang Liet

Total

-

12,764,332,165

15,322,132,165

-

12,764,332,1652,557,800,000

2,557,800,000

-

15,322,132,165

Item Land use rights

Other intangible

fixed assets Total

- 12,764,332,165- 2,557,800,000

- 2,557,800,000

- -

- 15,322,132,165

- -

- -

- 12,764,332,165

- 15,322,132,165

31/12/2009

VND

01/01/2009

VND

1,353,158,068 3,491,484,342

47,902,584 43,813,182

622,559,591 3,447,671,160

588,042,802 -

67,454,455 -

-

-

31/12/2009

VND

01/01/2009

VND

31/12/2009

VND

01/01/2009

VND

44,000,000 -

993,533,963 -

1,037,533,963 -

- 1,675,000,000

10,073,636

17,125,000

- 1,675,000,000

2,250,000,000 2,250,000,000

2,250,000,000 3,925,000,000

1,353,158,068 3,491,484,342

(*) On 24/6/2009, Traphaco Joint Stock Company has bought the shares of other shareholders in Trapacosapa

Limited Company, Trapacosapa Limited Company has become Traphacosapa One Member Limited Company -Subsidiary of Traphaco Joint Stock Company.

2,250,000,000 2,250,000,000

19


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12 . SHORT-TERM LOANS AND DEBTS

Short-term loans

- From banks

- From other entities

Total

Short-term loans:

Bank for Investment and Development of Vietnam - Transaction office No. III

(*) Pledges including:

(*) Pledges including:

31/12/2009

VND

01/01/2009

VND

57,641,177,489 25,242,998,187

39,651,321,489 -

17,989,856,000 25,242,998,187

57,641,177,489 25,242,998,187

Loan agreement Interest rate Term Total

Balance of

principle

Type of

loan

secure

Pledged (*)

10.50% 3 months 6,216,729,742 6,216,729,742 Pledged (*)

10,5% - 12% 6 months 2,266,065,286 2,266,065,286

10.50% 6 months

Pledged (**)

12.00% 6 -12 months 17,989,856,000 17,989,856,000

10.3% -10.5% 6 months 29,597,703,529 26,450,614,373

Total 60,788,266,645 57,641,177,489

- All balance of cash in bank in VND and in foreign currency of Borrow Party in Bank and other credit

institution.

- All trade receivables under Business contract signed by Borrow Party and the partners, in which Borrow Party is

the beneficiary and other legal receivables of Borrow Party.

- Assets established in future generated by L/C opened by the Bank to the Borrower and/or assets established in

the future generated by own capital or bank loans.

- All other assets under and will be under the management or ownership of the borrower such as inventory, fixed

assets, land use rights, capital contribute in other entities, other property right ...

- From 17/11/2009 to 16/02/2010

saving interest

+ 2,7%/annum

6 months

Debt Receipt from No. 15 to 23

Other individuals

- Factory associated with land use rights and machinery in factories producing drugs in Hoang Liet, worth ofassets are USD 13.162 billion.

- Pledge is office in Hochiminh Branch - Traphaco Joint Stock Company, address No. 108/14/28, Road No. 3/2,

Ward No. 14, District No. 10, Hochiminh City, total assets value are VND 3,870,000,000.

- Pledge is office in Da Nang Branch - Traphaco Joint Stock Company in 255 Ton Duc Thang, Minh Hoa ward,

Lien Chieu Districts, Da Nang City, asset's value is VND 3,480,000,000.

- Pledges are machinery producing drugs, transportation vehicle, assets' value is VND 15,953,000,000.

Contract No.

01/2467488/2009/HTD

Contract No.02/2467488/2009/HTD

Contract No.

03/2467488/2009/HTD

4,717,912,088 4,717,912,088 Pledged (*)

- From 17/02/2010 to 17/05/2010

20


22/27


23/27

TRAPHACO JOINT STOCK COMPANY Consolidated Financial Statemen


7 .

a) Increase and decrease in owners equity

Unit: VND

ItemContributed legal

capital

Share capital

surplus

Treasury Stock

Foreign

exchange

differences

Investment and

development

funds

Financial

reserve fund

Retained

earnings

Total

Beginning balance of previous 80,000,000,000 112,460,000,000 - - 37,436,995,872 6,607,885,967 - 236,504,881,8

Profit of the previous year - - - - - - 46,038,376,633 46,038,376,6

Other increase - - - - 14,072,966,075 2,019,843,437 - 16,092,809,5

Other decrease - - - - - - 46,038,376,633 46,038,376,6

Ending balance of previous 80,000,000,000 112,460,000,000 - - 51,509,961,947 8,627,729,404 - 252,597,691,3

Increase in capital 21,981,500,000 - - - - - - 21,981,500,0

Profit of the previous year - - - - - - 51,047,163,781 51,047,163,7

Other increase - - 2,020,000,000 - 3,397,968,610 2,574,802,172 11,018,366 8,003,789,1

Decrease in capital - 20,396,300,000 - - - - - 20,396,300,0

Decrease for distribution of

funds and divident- - - - - - 51,600,394,574 51,600,394,5

Other decrease - - 2,022,520,000 407,499,441 - - 26,543,269 2,456,562,7

Ending balance of current 101,981,500,000 92,063,700,000 (2,520,000) (407,499,441) 54,907,930,557 11,202,531,576 (568,755,696) 259,176,886,9

Profit of Traphaco Joint Stock Company is distributed fully in the year, balance of Retained earning is negative as it is effected of:

- Retained earning in Subsidiary is VND (12,035,532)

- Eliminating unrealized internal profit in inventories with the value of VND 468,065,368 as well as increasing Deferred tax assets with the value of VND 117,016,342;

- Apporting Goodwill in the year with the value of VND 91,746,210.

- Eliminating retained earning of Subsidiary as at the date of acquisition when preparing consolidated financial statements with the value of VND 113,924,928.

OWNERS EQUITY

22


24/27



b) Details of owners invested capital

Invested capital of State

Invested capital of others

Total

c) Capital transactions with owners and distribution of dividends and profits

Owners invested capital

- At the beginning of year

- Increase in the year

- At year end

Distributed dividends and profit

- Distributed dividends on last year profit

- Estimate-distributed dividends on this year profit

d) Stock

Quantity of Authorized issuing stocks

Quantity of issued stocks

- Common stocks

- Preferred stocks

Quantity of repurchased stocks

- Common stocks

Quantity of circulation stocks

- Common stocks

- Preferred stocks

Par value per stock

e) Companys funds

Investment and development fund

Financial reserve fund

Total

8,627,729,404

Closing

VND

Beginning

VND

54,907,930,557

66,110,462,133

11,202,531,576

100% 101,981,500,000 100% 80,000,000,000

51,509,961,947

60,137,691,351

-

64% 65,308,600,000 63% 50,661,680,000

36% 36,672,900,000 37% 29,338,320,000

%

Closing

VND %

Beginning

VND

33,449,932,000 -

15,679,401,600

33,449,932,000 15,679,401,600

101,981,500,000 80,000,000,000

21,981,500,000 -

80,000,000,000 80,000,000,000

101,981,500,000 80,000,000,000

Current year

VND

Previous year

VND

According to Resolution No. 10/2009/NQ-HC dated 20 March 2009 of Annual Congress of Shareholders,

the Company announced its plan of dividend distribution in 2009 is 36% on par value.

Closing

VND

Beginning

VND

10,198,150 8,000,000

10,198,150 8,000,000

10,198,150 6,624,000

- 1,376,000

252 -

252 -

10,197,898 8,000,000

10,197,898 6,624,000

- 1,376,000

10,000 10,000

23


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18 . SUBSIDIZED NOT-FOR-PROFIT FUND

Beginning subsidized not-for-profit fund

Fund received in the year

Not-for-profit expenditure (*)

Ending subsidized not-for-profit fund

19 . TOTAL REVENUE FROM SALE OF GOODS AND RENDERING OF SERVICES

Revenue from sale of goods

Revenue from rendering of goods

Total

20 . COSTS OF GOODS SOLD

Costs of mechandise

Costs of finished goods

Total

21 . FINANCIAL INCOME

Interest income

Dividends, profits earned

Realized gain from foreign exchange difference

Unrealized gain from foreign exchange difference

Total

22 . FINANCIAL EXPENSES

Interest expenses

Realized loss from foreign exchange difference

Total

31/12/2009

VND

01/01/2009

VND

(166,695,660) 18,104,340

1,190,000,000 136,000,000

(1,245,450,000) (320,800,000)

(222,145,660) (166,695,660)

Year 2009

VND

Year 2008

VND

437,086,591,166 379,431,070,532

316,680,393,670 405,957,764,938

753,766,984,836 785,388,835,470

Year 2009

VND

Year 2008

VND

361,629,284,439 365,052,581,374

170,290,486,732 253,838,409,538

531,919,771,171 618,890,990,912

Year 2009

VND

Year 2008

VND

3,994,632,630 4,805,710,737

540,000,000 570,558,000

103,088,068 123,860,928

- 88,869,793

4,637,720,698 5,588,999,458

Year 2009

VND

Year 2008

VND

4,619,625,653 3,750,061,772

2,174,216,751 682,912,861

6,793,842,404 4,432,974,633

24


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23 . CURRENT INCOME TAX EXPENSE

Total

24 BASIC EARNNINGS PER SHARE

Profit after tax

Average circulation of common stocks in the period

Basic earnings per share

25 . PRODUCTIONS COST BY ITEMS

Raw materials

Labor

Depreciation expenses

Expenses from external services

Other expenses by cash

Total

26 . EVENTS AFTER BALANCE SHEET DATE

Earning per share distributed to common shareholders of the company is calculated as follows :

There have been no significant events occurring after the balance sheet date, which would require adjustments or

disclosures to be made in the financial statements.

6,231 5,755

8,191,983 8,000,000

208,979,274,148 282,629,244,828

86,467,104,356

Profit or loss allocating for shareholders owned common

stocks 51,047,163,781 46,038,376,633

Adjustments to accounting profit or loss after tax

12,757,211,817

Year 2009

VND

Year 2008

VND

51,047,163,781 46,038,376,633

- -

61,693,382,625

8,616,945,353 7,104,840,369

19,196,431,503 18,151,821,768

Year 2009

VND

Year 2008

VND

63,944,958,097 43,811,201,997

387,204,713,457 413,390,491,587

Year 2009

VND

Year 2008

VND

18,626,847,235 12,757,211,817

Tax expenses in respect of the current year taxable profit 18,626,847,235

25


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27 . TRANSACTION WITH RELATED PARTIES

During operation, there are a number of transactions between the companies with related parties as follows:

Revenue

Purchase of raw materials

Interest receivables

28 . COMPARATIVE FIGURES




The corresponding figures are those taken from the accounts for the fiscal year ended as at 31 December 2008,

which was audited by Auditing and Accounting Financial Consultancy Company Limited (AASC).

1,485,000,000

Other investment

-Other investment

176,935,491,237 188,160,110,685

Other investment 49,089,090,668 105,049,686,348

- Traphaco High Tech Joint Stock

Company

Related parties Relation

Year 2009

VND

Year 2008

VND

- Traphacosapa Limited Company

3,244,240,000 7,447,749,140

Joint venture


Company


Company (purchasing goods,

materials)


Company (renting warehouse) Other investment 3,731,190,000 -

bckt hop nhat 2009 tra eng

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