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THANH CONG TEXTILE GARMENT INVESTMENT TRADING

JOINT STOCK COMPANY AND ITS SUBSIDIARIES

(Incorporated in the Socialist Republic of Vietnam)

AUDITED CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2015

March 2016

THANH CONG TEXTILE GARMENT INVESTMENT TRADING JOINT STOCK COMPANY

AND ITS SUBSIDIARIES

36 Tay Thanh Street, Tay Thanh Ward, Tan Phu District

Ho Chi Minh City, S.R. Viet Nam

TABLE OF CONTENTS

CONTENTS PAGE(S)

STATEMENT OF THE BOARD OF DIRECTORS 1

INDEPENDENT AUDITORS’ REPORT 2

CONSOLIDATED BALANCE SHEET 3 - 5

CONSOLIDATED INCOME STATEMENT 6

CONSOLIDATED CASH FLOW STATEMENT 7

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8 - 43



36 Tay Thanh Street, Tay Thanh Ward, Tan Phu District Consolidated Financial Statements

Ho Chi Minh City, S.R. Viet Nam For the year ended 31 December 2015

The notes set out on pages 8 to 43 are an integral part of these consolidated financial statements

3

CONSOLIDATED BALANCE SHEET

As at 31 December 2015

FORM B 01-DN/HN

Unit: VND

ASSETS Codes Notes 31/12/2015 31/12/2014

A. CURRENT ASSETS 100 1,171,380,263,282 994,563,475,461

I. Cash and cash equivalents 110 5 88,198,067,189 140,749,128,463

1. Cash 111 37,498,067,189 94,049,128,463

2. Cash equivalents 112 50,700,000,000 46,700,000,000

II. Short-term financial investments 120 4,500,000,000 4,500,000,000

1. Held-to-maturity investments 123 4,500,000,000 4,500,000,000

III. Short-term receivables 130 200,230,642,322 190,871,299,911

1. Short-term trade receivables 131 6 157,254,434,374 135,467,703,940

2. Short-term advances to suppliers 132 38,716,032,088 40,189,207,228

3. Short-term loan receivables 135 7 1,850,301,999 1,850,301,999

4. Other short-term receivables 136 8 6,825,799,395 17,594,937,732

5. Provision for short-term doubtful debts 137 (4,415,925,534) (4,232,019,466)

6. Deficits in assets awaiting solution 139 - 1,168,478

IV. Inventories 140 9 780,566,506,893 624,547,232,466

1. Inventories 141 786,523,332,756 646,309,201,913

2. Provision for devaluation of inventories 149 (5,956,825,863) (21,761,969,447)

V. Other short-term assets 150 97,885,046,878 33,895,814,621

1. Short-term prepayments 151 13,438,435,227 6,145,585,106

2. Value added tax deductibles 152 84,446,611,651 27,748,380,950

3. Taxes and other receivables from the State Budget 153 - 1,848,565





The notes set out on pages 8 to 43 are an integral part of these consolidated financial statements

4

CONSOLIDATED BALANCE SHEET (Continued)

As at 31 December 2015

FORM B 01-DN/HN

Unit: VND

ASSETS Codes Notes 31/12/2015 31/12/2014

B. NON-CURRENT ASSETS 200 1,337,877,302,674 1,065,554,933,518

I. Long-term receivables 210 35,000,000 35,000,000

1. Other long-term receivables 216 35,000,000 35,000,000

II. Fixed assets 220 870,879,438,397 718,871,207,195

1. Tangible fixed assets 221 10 678,830,080,393 553,158,855,198

- Cost 222 1,421,251,210,674 1,275,903,829,147

- Accumulated depreciation 223 (742,421,130,281) (722,744,973,949)

2. Finance lease assets 224 11 96,422,894,301 68,858,326,771

- Cost 225 108,078,746,862 71,341,985,333


3. Intangible assets 227 12 95,626,463,703 96,854,025,226

- Cost 228 113,227,155,700 111,740,833,762

- Accumulated amortisation 229 (17,600,691,997) (14,886,808,536)

III. Investment property 230 13 116,309,421,416 118,479,226,677

- Cost 231 117,556,801,651 121,280,625,580


IV. Long-term assets in progress 240 59,080,222,944 20,916,163,961

1. Construction in progress 242 14 59,080,222,944 20,916,163,961

V. Long-term financial investments 250 139,780,655,673 134,937,172,144

1. Investments in associates 252 15 136,537,892,373 132,084,972,844

2. Equity investments in other entities 253 16 5,352,050,000 5,352,050,000

3. Provision for impairment of long-term financial

investments

254 (2,109,286,700) (2,499,850,700)

VI. Other long-term assets 260 151,792,564,244 72,316,163,541

1. Long-term prepayments 261 17 149,707,706,815 70,275,464,954

2. Deferred tax assets 262 18 2,084,857,429 2,040,698,587

TOTAL ASSETS (270=100+200) 270 2,509,257,565,956 2,060,118,408,979





NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FORM B 09-DN/HN These notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements

8

1. GENERAL INFORMATION

Structure of ownership

Thanh Cong Textile Garment Investment Trading Joint Stock Company (the “Company”) was

incorporated in Vietnam as a joint stock company under Business Registration Certificate No.

4103004932 dated 23 June 2006 issued by the Department of Planning and Investment of Ho Chi

Minh City, as amended. According to 15th

amended Business Registration Certificate No.

0301446221 dated 17 November 2015 issued by the Department of Planning and Investment of Ho

Chi Minh City, the owners’ contributed capital is VND 491,999,510,000. The Company’s main

shareholder is E-land Asia Holdings Pte Ltd, incorporated in Singapore.

The number of the Company’s employees as at 31 December 2015 was 4,921 (31 December 2014:

4,577).

Principal activities

The principal activities of the Company are manufacture and garment trading, details are as follows:

Manufacture and trade cotton, fiber, garment products, footwear, machinery and equipment,

spare parts, raw materials, chemicals (excluding strong toxic chemicals), dye, packing for

garment and textile industry;

Trade cold equipment, air-conditioners, radios and televisions, building materials, and transport

vehicles;

Provide services of installation and repairs for machinery and equipment;

Trade road transport and merchandise transport;

Trade real estates, commercial centres;

Lease office buildings, factories, freight yard, machinery and equipment;

Act as a commercial brokerage;

Act as an agent for goods trading and goods consignment;

Invest, build, trade, assemble, repair, prepare overall estimates for civil/industrial construction

works, infrastructure of industrial parks and tourist area;

Short-term accommodation services;

Restaurant and foods services;

Retails of beverage in the specialised shops;

Retails of foods in the specialised shops;

Trade of real estate, land use rights owned or leased; and

Other retails.

Normal production and business cycle

The Company’s normal production and business cycle is carried out for a time period of 12 months or

less.

The Company’s structure

Details of Thanh Cong Textile Garment Investment Trading Joint Stock Company's subsidiaries and

associates as at 31 December 2015 are as follows:





NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN These notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements

9

Subsidiaries

Name of

subsidiaries

Place of

incorporation

(or registered

place) and

operation

Proportion

of

ownership

(%)

Owners’ contributed

capital as at

31/12/2015

(VND)


Thanh Cong Medical

Center Joint Stock

Company (“Thanh

Cong Medical

Center”)

Tan Phu

District, Ho

Chi Minh City

70.94 21,700,000,000 Medical servicing and

trading drugs and

medical equipment

Thanh Quang

Corporation (“Thanh

Quang”)

Tan Phu

District, Ho

Chi Minh City

97.50 22,000,000,000 Infrastructures,

manufacturing and

trading fabric

Thanh Cong – Vinh

Long One Member

Company Limited

(Thanh Cong – Vinh

Long) (*)

Hoa Phu

Commune,

Long Ho

District, Vinh

Long Province

100 37,293,406,255 Productions, business,

exports, imports of

cottons, fiber, threads,

cloths, garments,

footwear and machines,

equipment, parts,

auxiliary and raw

materials, materials,

chemicals (except

poisonous chemicals),

dye-stuffs, packing

TC Tower Company

Limited (“TC

Tower”) (**)

Tan Phu

District, Ho

Chi Minh City

85.33 - Trading real estate

TC Eland One

Member Limited

Company (“TC

Eland”) (***)

District 1, Ho

Chi Minh City

100 3,000,000,000 Trading garment and

textile products

(*) Thanh Cong – Vinh Long One Member Company Limited (“Thanh Cong - Vinh Long”) was

established in Vietnam under Business Registration Certificate No. 1500998966 dated 06 May 2014

issued by the Department of Planning and Investment of Vinh Long Province. The subsidiary’s

registered capital is VND 129,000,000,000. As at the date of this report, Thanh Cong Textile

Garment Investment Trading Joint Stock Company has contributed an assets, machinery and

equipment to Thanh Cong – Vinh Long with an amount of VND 37,293,406,255.

(**) TC Tower Company Limited (“TC Tower”) was established in Vietnam under Investment

Certificate No. 411022000794 dated 31 October 2014 issued by People's Committee of Ho Chi Minh

City. The subsidiary’s registered capital is VND 159,150,000,000. As at the date of this report, Thanh

Cong Textile Garment Investment Trading Joint Stock Company has not contributed capital to TC

Tower yet.

(***) TC Eland One Member Company Limited (“TC Eland”) was established in Vietnam under

Enterprise Registration Certificate No. 0313392612 dated 28 August 2015 issued by Development

and Planning Investment Department of Ho Chi Minh City. The subsidiary’s registered capital is

VND 6,450,000,000. As at the date of this report, Thanh Cong Textile Garment Investment Trading

Joint Stock Company has contributed to TC Eland with an amount of VND 3,000,000,000.






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Associates

Name of associates

Place of

incorporation

(or registered

place) and

operation

Proportion

of

ownership

(%)

Owners’ contributed

capital as at

31/12/2015

(VND)


Thanh Chi


Chi”)

Vung Tau City 47.43 43,890,000,000 Trading and exploiting

sand and stone

Thanh Cong

Securities Joint

Stock Company

(“TCSC”)

District 3, Ho

Chi Minh City

24.75 360,000,000,000 Brokerage, self -

trading securities,

securities guaranty and

securities investment

consultancy

Thanh Phuc

Investment

Construction


Phuc”)

Tan Phu

District, Ho

Chi Minh City

23.79 7,000,000,000 Constructing and

managing projects

Vung Tau Golf

Tourism Joint Stock

Company (“Golf

Vung Tau”)

Ba Ria, Vung

Tau City

30.00 29,000,000,000 Providing tourism and

entertainment services

Disclosure of information comparability in the financial statements

As stated in Note 3, since 01 January 2015, the Company has adopted Circular No. 200/2014/TT-

BTC issued by the Ministry of Finance on 22 December 2014 (“Circular 200”) guiding the

accounting regime for enterprises and Circular No. 202/2014/TT-BTC issued by the Ministry of

Finance on 22 December 2014 (“Circular 202”) guiding the preparation and presentation of

consolidated financial statements. Circular 200 supersedes the regulations for accounting regime

promulgated under Decision No. 15/2006/QD-BTC dated 20 March 2006 issued by the Ministry of

Finance and Circular No. 244/2009/TT-BTC dated 31 December 2009 issued by the Ministry of

Finance. Circular 202 supersedes section XIII in Circular No. 161/2007/TT-BTC dated 31 December

2007 of the Ministry of Finance guiding the preparation and presentation of consolidated financial

statements in accordance with Vietnamese Accounting Standard No. 25 “Consolidated Financial

Statements and Accounting for Investments in Subsidiaries”. However, the adoption of such circulars

does not have significant impact on the comparability of the figures in the Company’s consolidated

financial statements.

2. ACCOUNTING CONVENTION AND FINANCIAL YEAR

Accounting convention

The accompanying consolidated financial statements, expressed in Vietnam Dong (“VND”), are

prepared under the historical cost convention and in accordance with Vietnamese Accounting

Standards, accounting regime for enterprises and legal regulations relating to financial reporting.

The accompanying consolidated financial statements are not intended to present the financial

position, results of operations and cash flows in accordance with accounting principles and practices

generally accepted in countries and jurisdictions other than Vietnam.

Financial year

The Group’s financial year begins on 01 January and ends on 31 December.






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3. ADOPTION OF NEW ACCOUNTING GUIDANCE

New guidance on accounting regime for enterprises

On 22 December 2014, the Ministry of Finance issued Circular No. 200/2014/TT-BTC (“Circular

200”) guiding the accounting regime for enterprises and Circular No. 202/2014/TT-BTC (Circular

202) guiding the preparation and presentation of consolidated financial statements. These circulars

are effective for financial years beginning on or after 01 January 2015. Circular 200 supersedes the

regulations for accounting regime promulgated under Decision No. 15/2006/QD-BTC dated 20

March 2006 issued by the Ministry of Finance and Circular No. 244/2009/TT-BTC dated 31

December 2009 issued by the Ministry of Finance. Circular 202 will supersede section XIII in

Circular No. 161/2007/TT-BTC dated 31 December 2007 of the Ministry of Finance guiding the

preparation and presentation of consolidated financial statements in accordance with Vietnamese

Accounting Standard No. 25 “Consolidated Financial Statements and Accounting for Investments in

Subsidiaries”. The Board of Directors has adopted Circular 200 in the preparation and presentation of

the consolidated financial statements for the year ended 31 December 2015. Thereof, certain

reclassifications have been made to the prior period’s figures in accordance with the guidance of

Circular 200 to enhance their comparability with the current period’s presentation; details have been

presented in Note 44 – Comparative figures.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies, which have been adopted by the Group in the preparation of these

consolidated financial statements, are as follows:

Estimates

The preparation of consolidated financial statements in conformity with Vietnamese Accounting

Standards, accounting regime for enterprises and legal regulations relating to financial reporting

requires the Board of Directors to make estimates and assumptions that affect the reported amounts of

assets, liabilities and disclosures of contingent assets and liabilities at the date of the consolidated

financial statements and the reported amounts of revenues and expenses during the financial year.

Although these accounting estimates are based on the Board of Directors’ best knowledge, actual

results may differ from those estimates.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and

enterprises controlled by the Company (its subsidiaries) up to the end of each financial year. Control

is achieved where the Company has the power to govern the financial and operating policies of an

investee enterprises so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the consolidated

income statement from the effective date of acquisition or up to the effective date of disposal, as

appropriate.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the

accounting policies used in line with those used by the Company.

All inter-company transactions and balances between group’s enterprises are eliminated on

consolidation.

Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from

the Company’s equity therein. Non-controlling interests consist of the amount of those interests at the

date of the original business combination (presented in Note 28) and the non-controlling’s share of

changes in equity since the date of the combination. Losses in subsidiaries are respectively attributed

to the non-controlling interests even if this results in the non-controlling interests having a deficit

balance.






12

Business combinations

On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their

fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the

identifiable net assets acquired is recognised as goodwill. Any deficiency of the cost of acquisition

below the fair values of the identifiable net assets acquired is credited to profit and loss in the period

of acquisition.

The non-controlling interests are initially measured at the non-controlling shareholders’ proportion of

the net fair value of the assets, liabilities and contingent liabilities recognised.

Investments in associates

An associate is an entity over which the Company has significant influence and that is neither a

subsidiary nor an interest in joint venture. Significant influence is the power to participate in the

financial and operating policy decisions of the investee but not control or joint control over those

policies.

The results and assets and liabilities of associates are incorporated in these financial statements using

the equity method of accounting. Interests in associates are carried in the balance sheet at cost as

adjusted by post-acquisition changes in the Company’s share of the net assets of the associate. Losses

of an associate in excess of the Company's interest in that associate (which includes any long-term

interests that, in substance, form part of the Company's net investment in the associate) are not

recognised.

Where a group entity transacts with an associate of the Group, unrealised profits and losses are

eliminated to the extent of the Company’s interest in the relevant associate.

Goodwill

Goodwill represents the excess of the cost of acquisition over the Company’s interest in the net fair

value of the identifiable assets, liabilities and contingent liabilities of an associate or jointly controlled

entity at the date of acquisition.

Goodwill arising on the acquisition of associates and jointly controlled entities is included in the

carrying amount of the associates and jointly controlled entities. On disposal of an associate or jointly controlled entity, the attributable amount of unamortised

goodwill is included in the determination of the profit or loss on disposal.

Negative goodwill

Negative goodwill represents the excess of the Company’s interest in the net fair value of the

identifiable assets, liabilities and contingent liabilities of a subsidiary, associate or jointly controlled

entity at the date of acquisition over the cost of acquisition. Negative goodwill is immediately

recognised in the consolidated income statement at the acquisition date.

Financial instruments

Initial recognition

Financial assets: At the date of initial recognition, financial assets are recognised at cost plus

transaction costs that are directly attributable to the acquisition of the financial assets. Financial assets

of the Group comprise cash and cash equivalents, trade and other receivables, investments in stocks

and deposits.






13

Financial liabilities: At the date of initial recognition financial liabilities are recognised at cost plus

transaction costs that are directly attributable to the issue of the financial liabilities. Financial

liabilities of the Group comprise obligations under finance leases, borrowings, trade and other

payables and accrued expenses.

Subsequent measurement after initial recognition

Currently, there are no requirements for the subsequent measurement of the financial instruments

after initial recognition.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid

investments that are readily convertible to known amounts of cash and which are subject to an

insignificant risk of changes in value.

Financial investments

Loan receivables

Loan receivables are measured at cost less provision for doubtful debts. Provision for doubtful debts

relating to loan receivables is made in accordance with prevailing accounting regulations.

Equity investments in other entities

Equity investments in other entities represent the Company’s investments in ordinary shares of the

entities over which the Company has no control, joint control, or significant influence.

Equity investments in other entities are carried at cost less provision for impairment. Provision for

impairment is made in accordance with the prevailing accounting regulations.

Receivables

Receivables represent the amounts recoverable from customers or other debtors and are stated at

book value less provision for doubtful debts.

Provision for doubtful debts is made for receivables that are overdue for six months or more, or when

the debtor is in dissolution, in bankruptcy, or is experiencing similar difficulties and so may be

unable to repay the debt.

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials

and where applicable, direct labour costs and those overheads that have been incurred in bringing the

inventories to their present location and condition. Cost is calculated using the weighted average

method. Net realisable value represents the estimated selling price less all estimated costs to

completion and costs to be incurred in marketing, selling and distribution.

The evaluation of necessary provision for inventory obsolescence follows current prevailing

accounting regulations which allow provisions to be made for obsolete, damaged, or sub-standard

inventories and for those which have book value higher than net realisable value as at the balance

sheet date.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation. The cost of purchased tangible

fixed assets comprises its purchase price and any directly attributable costs of bringing the assets to

its working condition and location for its intended use. The costs of self-constructed or manufactured

assets are the actual construction or manufacturing cost plus installation and test running costs.






14

Tangible fixed assets are depreciated using the straight-line method over their estimated useful lives

as follows:

Years

Buildings and structures 10 - 50

Machinery and equipment 7 - 15

Motor vehicles 10

Office equipment 7 - 15

Others 7 - 22

Intangible assets and amortisation

Intangible assets represent land use rights, patents and software. Intangible assets are stated at cost

less accumulated amortisation and are amortised on the straight-line basis over their estimated useful

lives. Definite land use rights are carried at cost and amortised on the straight-line basis over the

duration of the right to use the land from 15-50 years. Indefinite land use rights are carried at cost and

not amortised. Patents and software are amortised on the straight-line basis over their estimate useful

lives from 4-10 years.

Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the

risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets of the Group at their fair value at the

inception of the lease or, if lower, at the present value of the minimum lease payments. The

corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance charges and reduction of the lease obligation so as

to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are

charged to consolidated profit or loss, unless they are directly attributable to qualifying assets, in

which case they are capitalised in accordance with the Group’s general policy on borrowing costs.

Leases where substantially all the rewards and risks of ownership of assets remain with the leasing

Group are accounted for as operating leases. Rentals payable under operating leases are charged to

the consolidated income statement on a straight-line basis over the term of the relevant lease.

Assets held by the Group under finance leases are machinery which depreciated over the period of

10-15 years.

Construction in progress

Properties in the course of construction for production, rental or administrative purposes, or for other

purposes, are carried at cost. Cost includes costs that are necessary to form the assets in accordance

with the Group’s accounting policy. Depreciation of these assets, on the same basis as other assets,

commences when the assets are ready for their intended use.

Investment properties

Investment properties, which are composed of buildings and structures and land use rights held by the

Group to earn rentals or for capital appreciation. Investment properties held to earn rentals are stated

at cost less accumulated depreciation while investment properties held for capital appreciation are

stated at cost less impairment loss. The cost of purchased investment properties comprises its

purchase price and any directly attributable expenditures, such as professional fees for legal services,

property transfer taxes and other related transaction costs. The costs of self-constructed investment

properties are the finally accounted construction or directly attributable costs of the properties. No

depreciation is recorded for investment properties held for capital appreciation.






15

Buildings and structures are depreciated using the straight-line method over their estimated useful

lives of 50 years. Definite land use rights are amortised using the straight-line method over number of

years in accordance with the terms indicated in each land use right certificate. Land use rights which

are granted for an indefinite term are carried at cost and not amortised.

Long-term prepayments

Long-term prepayments comprise prepaid land rentals at Xuyen A Industrial Zone - Long An

Province, Nhi Xuan Industrial Zone - Hoc Mon District, Ho Chi Minh City, Trang Bang Industrial

Zone - Tay Ninh Province and Hoa Phu Industrial Zone - Vinh Long Province, and other

prepayments (allocated within 3 years). Prepaid land rentals are charged to consolidated income

statement using the straight-line method over the lease term from 45 to 58 years.

Payable provisions

Payable provisions are recognized when the Group has a present obligation as a result of a past event,

and it is probable that the Group will be required to settle that obligation. Provisions are measured at

the Board of Directors’ best estimate of the expenditure required to settle the obligation as at the

balance sheet date.

Revenue recognition

Revenue from the sale of goods is recognised when all five (5) following conditions are satisfied:

(a) the Group has transferred to the buyer the significant risks and rewards of ownership of the goods;

(b) the Group retains neither continuing managerial involvement to the degree usually associated with

ownership nor effective control over the goods sold;

(c) the amount of revenue can be measured reliably;

(d) it is probable that the economic benefits associated with the transaction will flow to the Group;

and

(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue of a transaction involving the rendering of services is recognised when the outcome of such

transactions can be measured reliably. Where a transaction involving the rendering of services is

attributable to several periods, revenue is recognised in each period by reference to the percentage of

completion of the transaction at the balance sheet date of that period. The outcome of a transaction

can be measured reliably when all four (4) following conditions are satisfied:

(a) the amount of revenue can be measured reliably;

(b) it is probable that the economic benefits associated with the transaction will flow to the Group;

(c) the percentage of completion of the transaction at the balance sheet date can be measured reliably;

and

(d) the costs incurred for the transaction and the costs to complete the transaction can be measured

reliably.

Interest income is accrued on a time basis, by reference to the principal outstanding and at the

applicable interest rate.

Dividend income from investments is recognised when the Group’s right to receive payment has been

established.

Foreign currencies

The Group applies the method of recording foreign exchange differences in accordance with

Vietnamese Accounting Standard No. 10 (VAS 10) “Effects of changes in foreign exchange rates”.

Accordingly, transactions arising in foreign currencies are translated at exchange rates ruling at the

transaction date. The balances of monetary items denominated in foreign currencies as at the balance

sheet date are retranslated at the exchange rates on the same date. Exchange differences arising from

the translation of these accounts are recognised in the consolidated income statement. Unrealised

exchange gains as at the balance sheet date are not treated as part of distributable profit to

shareholders.






16

Borrowing costs

Borrowing costs are recognised in the income statement in the year when incurred unless they are

capitalised in accordance with Vietnamese Accounting Standard No. 16 “Borrowing costs”.

Accordingly, borrowing costs directly attributable to the acquisition, construction or production of

qualifying assets, which are assets that necessarily take a substantial period of time to get ready for

their intended use or sale, are added to the cost of those assets, until such time as the assets are

substantially ready for their intended use or sale. Investment income earned on the temporary

investment of specific borrowings pending their expenditure on qualifying assets is deducted from the

cost of those assets. For specific borrowings for the purpose of construction of fixed assets and

investment properties, borrowing costs are capitalised even when the construction period is under 12

months.

Severance allowance payable

The severance allowance for employees is accrued at the end of each reporting period for all

employees having worked at the Group for full 12 months and above. Working time serving as the

basis for calculating severance allowance shall be the total actual working time subtracting the time

when the employees have made unemployment insurance contributions as prescribed by law, and the

working time when severance allowance has been paid to the employees. The allowance made for

each year of service equals to a half of an average monthly salary under the Vietnamese Labour

Code, Social Insurance Code and relevant guiding documents. The average monthly salary used for

calculation of severance allowance shall be adjusted to be the average of the 6 consecutive months

nearest to the date of the financial statements at the end of each reporting period. The increase or

decrease in the accrued amount shall be recorded in consolidated the income statement.

Tax

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit

as reported in the consolidated income statement because it excludes items of income or expense that

are taxable or deductible in other years and it further excludes items that are never taxable or

deductible.

Deferred tax is recognised on significant differences between carrying amounts of assets and

liabilities in the consolidated financial statements and the corresponding tax bases used in the

computation of taxable profit and is accounted for using balance sheet liability method. Deferred tax

liabilities are generally recognised for all temporary differences and deferred tax assets are

recognized to the extent that it is probable that taxable profit will be available against which

deductible temporary differences can be utilised.

Deferred tax is calculated at the tax rates that are expected to apply in the year when the liability is

settled or the asset realised. Deferred tax is charged or credited to profit or loss, except when it relates

to items charged or credited directly to equity, in which case the deferred tax is also dealt with in

equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current

tax assets against current tax liabilities and when they relate to income taxes levied by the same

taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

The determination of the current tax payable and deferred tax is based on the current interpretation of

tax regulations. However, these regulations are subject to periodic variation and their ultimate

determination depends on the results of the tax authorities’ examinations.

Other taxes are paid in accordance with the prevailing tax laws in Vietnam.






17

Appropriation of funds and dividend distribution

Dividend distribution to the Company and its subsidiaries’ shareholders is recognized as a liability in

the Company and its subsidiaries’ financial statements in the year in which the dividends are

approved by the Company and its subsidiaries’ shareholders.

Net profit after tax is available for appropriation to shareholders after approval by the shareholders at

the Annual General Shareholders’ Meeting, and after making appropriation to funds in accordance

with the Company and its subsidiaries’ Charter and Vietnamese regulatory requirements.

Treasury shares

Treasury shares are shares issued and bought-back by the Company, but they are not cancelled and

shall be re-issued in the period which complies with law on securities. Treasury shares are hold by

the Company will have no dividend, no right for election or join to share assets when the Company is

dissolved. When distributing dividend for shares, treasury shares hold by the Company shall be

considered as not yet sold.

Value of treasury shares is reflected as prices actually bought-back including buying-back prices and

expenses directly related to buying-back of shares, such as expenses of transaction, information.

5. CASH AND CASH EQUIVALENTS

31/12/2015 31/12/2014

VND VND

Cash on hand 919,707,232 461,814,575

Demand deposits 36,578,359,957 93,587,313,888

Cash equivalents 50,700,000,000 46,700,000,000

88,198,067,189 140,749,128,463

Cash equivalents represent short-term bank deposits with an original maturity of three months. These

deposits earn average interest rate of 5,3% per annum (2014: 1% - 6% per annum).

6. SHORT-TERM TRADE RECEIVABLES

31/12/2015 31/12/2014

VND VND

a. Short-term trade receivables

- Sanmar corporation 11,109,032,280 22,694,998,290

- Others 70,757,471,207 79,789,166,359

b. Receivables from related parties 75,387,930,887 32,983,539,291

(Note 42)

157,254,434,374 135,467,703,940

7. SHORT-TERM LOAN RECEIVABLES

Short-term loan receivables represent a loan to third party in 2006. The investment has been fully

provided provision as at 31 December 2015 in according to the Group’s accounting policy.






18

8. OTHER SHORT-TERM RECEIVABLES

31/12/2015 31/12/2014

VND VND

Receivable from employees 4,596,847,944 3,778,463,748

Deposits and mortgages 333,650,000 401,180,000

Receivable for dividends 1,040,950,000 2,602,375,000

Other receivables 854,351,451 10,812,918,984

6,825,799,395 17,594,937,732

9. INVENTORIES

Cost Provision Cost Provision

VND VND VND VND

Goods in transit 78,146,323,784 - 66,541,684,138 -

Raw materials 220,513,131,791 - 200,233,929,068 -

Tools and supplies 3,105,675,871 - 7,723,197 -

Work in progress 188,247,179,291 - 126,716,300,483 -

Finished goods 271,456,261,043 5,956,825,863 245,498,821,239 21,761,969,447

Merchandise 5,011,570,589 - 2,909,398,049 -

Goods on consignment 20,043,190,387 - 4,401,345,739 -

786,523,332,756 5,956,825,863 646,309,201,913 21,761,969,447

31/12/2015 31/12/2014

Movement of provision for devaluation of inventories during the year as follow:

2015 2014

VND VND

As at 01 January 21,761,969,447 13,304,597,502

Provision for the year - 14,264,840,890

Reversal in the year (15,805,143,584) (5,807,468,945)

As at 31 December 5,956,825,863 21,761,969,447

THANH CONG TEXTILE GARMENT INVESTMENT TRADING JOINT STOCK COMPANY AND ITS SUBSIDIARIES



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN

These notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements

19

10. INCREASES, DECREASES IN TANGIBLE FIXED ASSETS

Buildings Machinery Motor Office

and structures and equipment vehicles equipment Others Total

VND VND VND VND VND VND

COST

As at 01/01/2015 271,494,293,433 853,923,401,703 17,750,168,126 13,911,652,015 118,824,313,870 1,275,903,829,147

- Additions 59,367,000 4,878,795,221 4,557,962,400 1,149,336,779 2,507,227,727 13,152,689,127 - Transfer from construction in

progress

113,059,114,476 51,106,098,437 1,190,800,944 454,558,497 2,913,896,332 168,724,468,686

- Transferred from investment

property

3,723,823,929 - - - - 3,723,823,929

- Disposals - (30,561,311,241) (382,710,416) (3,759,348,792) (4,778,565,435) (39,481,935,884)

- Other decreases - (771,664,331) - - - (771,664,331)

As at 31/12/2015 388,336,598,838 878,575,319,789 23,116,221,054 11,756,198,499 119,466,872,494 1,421,251,210,674

ACCUMULATED DEPRECIATION

As at 01/01/2015 100,495,700,061 515,522,955,589 9,630,464,088 9,692,262,390 87,403,591,821 722,744,973,949

- Charge for the year 7,005,671,838 40,905,372,742 1,806,126,607 885,854,605 6,527,938,193 57,130,963,985

- Transferred from investment

property

1,744,315,204 - - - - 1,744,315,204

- Disposals - (30,339,350,570) (390,907,103) (3,759,348,792) (4,639,416,201) (39,129,022,666)

- Other decreases - (70,100,191) - - - (70,100,191)

As at 31/12/2015 109,245,687,103 526,018,877,570 11,045,683,592 6,818,768,203 89,292,113,813 742,421,130,281

NET BOOK VALUE As at 31/12/2015 279,090,911,735 352,556,442,219 12,070,537,462 4,937,430,296 30,174,758,681 678,830,080,393

As at 31/12/2014 170,998,593,372 338,400,446,114 8,119,704,038 4,219,389,625 31,420,722,049 553,158,855,198

As noted further in Note 23 and 25, the Group has pledged its buildings and machinery, equipment, which has a carrying value of approximately VND 306.6

billion as at 31 December 2015 (31 December 2014: VND 264.7 billion), to secure banking facilities granted to the Group.

The cost of the Group’s tangible fixed assets includes VND 354 billion which have been fully depreciated but which are still in use (31 December 2014: VND 380

billion).






20

11. INCREASES, DECREASES IN FINANCE LEASE ASSETS

Machinery,

equipment

VND

COST

As at 01/01/2015 71,341,985,333

Transfer from construction in progress 36,736,761,529

As at 31/12/2015 108,078,746,862


As at 01/01/2015 2,483,658,562

Charge for the year 9,172,193,999

As at 31/12/2015 11,655,852,561

NET BOOK VALUE

As at 31/12/2015 96,422,894,301

As at 31/12/2014 68,858,326,771

12. INCREASES, DECREASES IN INTANGIBLE ASSETS

Land use rights Patents Software Total

VND VND VND VND

COST

As at 01/01/2015 96,334,416,604 3,942,895,847 11,463,521,311 111,740,833,762

Transferred from construction

in progress - - 1,486,321,938 1,486,321,938

As at 31/12/2015 96,334,416,604 3,942,895,847 12,949,843,249 113,227,155,700

ACCUMULATED AMORTISATION

As at 01/01/2015 9,334,369,070 2,558,012,227 2,994,427,239 14,886,808,536

Charge for the year 617,618,178 671,121,970 1,425,143,313 2,713,883,461

As at 31/12/2015 9,951,987,248 3,229,134,197 4,419,570,552 17,600,691,997

NET BOOK VALUE

As at 31/12/2015 86,382,429,356 713,761,650 8,530,272,697 95,626,463,703

As at 31/12/2014 87,000,047,534 1,384,883,620 8,469,094,072 96,854,025,226

As noted further in Note 23 and 25, the Group has pledged land use rights with a carrying value of

approximately VND 9.4 billion as at 31 December 2015 (31 December 2014: VND 9.7 billion) to

secure banking facilities granted to the Group.






21

13. INVESTMENT PROPERTY

Buildings for lease Land use rights Total

VND VND VND

COST

As at 01/01/2015 11,620,896,678 109,659,728,902 121,280,625,580

Transfer to tangible fixed asset (3,723,823,929) - (3,723,823,929)

As at 31/12/2015 7,897,072,749 109,659,728,902 117,556,801,651


As at 01/01/2015 2,801,398,903 - 2,801,398,903

Charge for the year 190,296,536 - 190,296,536

Transfer to tangible fixed asset (1,744,315,204) - (1,744,315,204)

As at 31/12/2015 1,247,380,235 - 1,247,380,235

NET BOOK VALUE

As at 31/12/2015 6,649,692,514 109,659,728,902 116,309,421,416

As at 31/12/2014 8,819,497,775 109,659,728,902 118,479,226,677

As noted further in Note 23 and 25, the Group has pledged investment property with a carrying value

of approximately VND 6.6 billion as at 31 December 2015 (31 December 2014: VND 110 billion) to

secure banking facilities granted to the Group.

As at 31 December 2015, the Company’s Board of Directors has not determined fair value of the

investment property due to the intention of holding for a long-term and there is no basis for

determination.

14. CONSTRUCTION IN PROGRESS

2015 2014

VND VND

As at 01 January 20,916,163,961 11,633,469,068

Additions 265,089,314,505 87,933,559,412

Transfer to tangible fixed assets (168,724,468,686) (6,213,902,270)

Transfer to finance lease assets (36,736,761,529) (71,341,985,333)

Transfer to intangible assets (1,486,321,938) -

Other transfers (19,977,703,369) (1,094,976,916)

As at 31 December 59,080,222,944 20,916,163,961

The total interest expense which had been capitalised into the cost of construction in progress during

the year was VND 1,535,197,469 (2014: VND 1,285,030,254).

As at the balance sheet date, construction in progress comprises the following major projects:

31/12/2015 31/12/2014

VND VND

Thanh Cong Tower 1 23,881,110,714 12,400,477,320

Purchase of machineries, equipment 34,721,203,139 6,858,859,091

Others 477,909,091 1,656,827,550

59,080,222,944 20,916,163,961






22

15. INVESTMENTS IN ASSOCIATES

31/12/2015 31/12/2014

VND VND

Cost of investment in associates 113,046,152,000 113,046,152,000

Share of post-acquisition profits,

net of dividends received 23,491,740,373 19,038,820,844

136,537,892,373 132,084,972,844

Goodwill 6,384,523,879 6,384,523,879

Company’s share of associates’ net assets 130,153,368,494 125,700,448,965

Total assets 559,974,752,218 518,236,356,363

Total liabilities 110,045,056,599 82,750,449,284

Net assets 449,929,695,619 435,485,907,079

Company’s share of associates’ net assets 130,153,368,494 125,700,448,965

2015 2015

VND VND

Net profit 18,260,840,761 10,690,654,731 Company’s share of associates’ net profit 5,493,869,529 3,002,304,007

16. EQUITY INVESTMENTS IN OTHER ENTITIES

31/12/2015 31/12/2014

VND VND

Viet Thang Textile Joint Stock Company 125,000,000 125,000,000

Thang Loi Textile and Garment Company 1,576,000,000 1,576,000,000

Hue Garment and Textile Company 318,000,000 318,000,000

SY Vina Joint Stock Company 883,450,000 883,450,000

Bank for Foreign Trade of Vietnam Joint Stock

Company 2,449,600,000 2,449,600,000

5,352,050,000 5,352,050,000

Provision for impairment of long-term financial

investments

(2,109,286,700) (2,499,850,700)

Net equity investments in other entities 3,242,763,300 2,852,199,300

17. LONG-TERM PREPAYMENTS

2015 2014

VND VND

As at 01 January 70,275,464,954 77,604,523,018

Additions during the year 87,608,838,721 118,243,000

Allocated to expenses during the year (8,176,596,860) (7,447,301,064)

As at 31 December 149,707,706,815 70,275,464,954






23

Details of long-term prepayments are as follows:

31/12/2015 31/12/2014

VND VND

Land rental expenses 135,266,756,512 68,548,112,642

Others 14,440,950,303 1,727,352,312

149,707,706,815 70,275,464,954

18. DEFERRED TAX ASSETS AND LIABILITIES

Deferred tax assets

31/12/2015 31/12/2014

VND VND

- Corporate income tax rates used for determination

of value of deferred tax assets 7.5% 7.5%

- Deferred tax assets related to provisions

and accrued expenses 2,080,338,584 2,051,131,447

- Deferred tax assets related to foreign

exchange difference 27,710,633 955,596

- Amount offset against deferred tax liabilities (23,191,788) (11,388,456)

Deferred tax assets 2,084,857,429 2,040,698,587

Deferred tax liabilities

31/12/2015 31/12/2014

VND VND

- Corporate income tax rates used for determination

of value of deferred tax liabilities 7.5% 7.5%

- Deferred tax liabilities arising from accrued

interest income 23,191,788 11,388,456

- Amount offset against deferred tax assets (23,191,788) (11,388,456)

Deferred tax liabilities - -

19. SHORT-TERM TRADE PAYABLES

Amount

Amount able

to be paid off Amount

Amount able

to be paid off

VND VND VND VND

a. Short-term trade payables

- Eland International Fashion (Shanghai)

Co., Ltd 31,397,592,759 31,397,592,759 8,139,709,455 8,139,709,455

- Eland World Limited 11,922,392,020 11,922,392,020 4,128,022,920 4,128,022,920

- Other suppliers 168,388,229,483 168,388,229,483 116,541,211,772 116,541,211,772

211,708,214,262 211,708,214,262 128,808,944,147 128,808,944,147

b. Trade payables to related parties

(Note 42) 43,749,653,990 43,749,653,990 12,474,026,739 12,474,026,739

43,749,653,990 43,749,653,990 12,474,026,739 12,474,026,739

31/12/2015 31/12/2014






24

20. TAXES AND AMOUNTS PAYABLE TO THE STATE BUDGET

01/01/2015

Payable during

the year

Paid during

the year 31/12/2015

VND VND VND VND

Corporate income tax 2,777,360,029 13,262,950,643 (14,585,976,680) 1,454,333,992

Personal income tax 782,876,173 13,199,736,854 (12,723,856,494) 1,258,756,533

Value added tax - 34,422,631,686 (34,419,036,492) 3,595,194

Other taxes - 12,988,302,714 (12,988,302,714) -

3,560,236,202 73,873,621,897 (74,717,172,380) 2,716,685,719

21. SHORT-TERM ACCRUED EXPENSES

31/12/2015 31/12/2014

VND VND

Accrual for loan interest 6,793,211,074 5,245,466,502

Accrual for land rental (*) 20,576,577,272 -

Others 4,595,125,132 5,520,802,338

31,964,913,478 10,766,268,840

(*) Accrual for land rental represents the unpaid amount relating to land rental in Hoa Phu Industrial

Park - Vinh Long Province.

22. OTHER CURRENT PAYABLES

31/12/2015 31/12/2014

VND VND

Union fee 1,607,458,475 1,074,125,964

Dividends payable 118,884,570 29,566,537,650

Others 7,606,076,747 1,394,843,017

9,332,419,792 32,035,506,631





25

23. SHORT-TERM LOANS AND OBLIGATIONS UNDER FINANCE LEASES

Amount

Amount able to be

paid off Increases Decreases Amount

Amount able to be

paid off


Short-term borrowings 755,770,001,160 755,770,001,160 2,202,133,891,121 2,022,231,569,143 575,867,679,182 575,867,679,182

- Bank SinoPac – Ho Chi Minh City Branch 63,355,713,726 63,355,713,726 171,801,579,232 127,562,041,507 19,116,176,001 19,116,176,001

- Vietcombank – Ho Chi Minh City Branch 293,645,696,860 293,645,696,860 760,846,546,640 709,227,665,870 242,026,816,090 242,026,816,090

- Standard Charterd Bank - - 136,130,703,956 162,393,771,699 26,263,067,743 26,263,067,743

- BIDV - Hoc Mon Branch 172,937,554,275 172,937,554,275 395,059,854,389 304,232,553,368 82,110,253,254 82,110,253,254

- HSBC Bank (Vietnam) Ltd 69,144,086,302 69,144,086,302 289,695,463,524 279,398,601,859 58,847,224,637 58,847,224,637

- Vietinbank - Ho Chi Minh City Branch 121,285,603,229 121,285,603,229 379,614,691,714 391,176,829,059 132,847,740,574 132,847,740,574

- Vietnam International Bank - FDI Branch 35,401,346,768 35,401,346,768 68,985,051,666 48,240,105,781 14,656,400,883 14,656,400,883

Current portion 62,094,154,467 62,094,154,467 84,058,590,103 92,999,597,352 71,035,161,716 71,035,161,716

- Current portion of long-term loans 32,198,576,119 32,198,576,119 47,353,122,838 67,438,098,719 52,283,552,000 52,283,552,000

- Current portion of long-term obligations under

finance

29,895,578,348 29,895,578,348 36,705,467,265 25,561,498,633 18,751,609,716 18,751,609,716

817,864,155,627 817,864,155,627 2,286,192,481,224 2,115,231,166,495 646,902,840,898 646,902,840,898

31/12/2015 In the year 31/12/2014

THANH CONG TEXTILE GARMENT INVESTMENT TRADING JOINT STOCK COMPANY AND

ITS SUBSIDIARIES




26

The Group has short-term credit facilities from local banks to finance its working capital

requirements, details are as follow:

Lenders Credit limit Credit term Secured by

Bank SinoPac - Ho Chi Minh City

Branch

USD 3,000,000 1 year Inventories

Vietcombank-

Ho Chi Minh City Branch

VND 450,000,000,000 1 years Fixed assets

- Standard Chartered Bank USD 10,000,000 5 years Letter of Credit from E-

land World Ltd

BIDV - Hoc Mon Branch VND 280,000,000,000 1 year Inventories

HSBC Bank (Vietnam) Ltd USD 5,000,000 1 year Inventories

Vietinbank - Ho Chi Minh City

Branch

VND 200,000,000,000 1 year Inventories

Vietnam International Bank - FDI

Branch

VND 50,000,000,000 1 year Inventories

24. OTHER LONG-TERM PAYABLES

Other long-term payables represent the amount payable to State Treasury for the increase in value of

a number of land lots which were granted to the Company or leased when it was equitized in 2004. In

accordance with the asset revaluation report dated 28 September 2005, among other land lots, there

were 5 land lots with the total areas of 36,716 sqm were revalued. The amount will be paid once the

Company completes the transfer of title of the land use rights to the Company’s name.





27

25. LONG-TERM LOANS AND OBLIGATIONS UNDER FINANCE LEASES

Amount

Amount able to be

paid off Increases Decreases Amount

Amount able to be

paid off


Long-term loans 315,580,188,828 315,580,188,828 169,147,554,902 46,190,308,917 192,622,942,843 192,622,942,843

- Vietcombank - Ho Chi Minh City Branch 142,694,136,000 142,694,136,000 133,661,232,000 6,015,216,000 15,048,120,000 15,048,120,000

- E-Land Asia Holdings Pte Ltd 157,640,000,000 157,640,000,000 8,120,000,000 - 149,520,000,000 149,520,000,000

- Bank for Investment and Development of

Vietnam - Hoc Mon Branch

10,153,649,592 10,153,649,592 18,526,188,408 8,372,538,816 - -

- Vietnam Development Bank - Ho Chi Minh City

Branch

- - - 672,342,843 672,342,843 672,342,843

- Shinhan Bank Vietnam Limited - - 464,640,000 27,847,120,000 27,382,480,000 27,382,480,000

- ANZ Bank (Vietnam) Limited - Ho Chi Minh

City Branch

5,092,403,236 5,092,403,236 8,375,494,494 3,283,091,258 - -

Long-term obligations under finance leases 24,623,564,374 24,623,564,374 31,132,462,826 35,712,194,118 29,203,295,666 29,203,295,666

- Vietcombank Leasing Co., Ltd. 24,623,564,374 24,623,564,374 31,132,462,826 35,712,194,118 29,203,295,666 29,203,295,666

340,203,753,202 340,203,753,202 200,280,017,728 81,902,503,035 221,826,238,509 221,826,238,509

31/12/2015 In the year 31/12/2014






28

The long-term loans are from local banks and shareholders obtained by the Group, details are as

follows:

Lenders Contract No. Credit limits Credit term

E-land Asia Holdings Pte Ltd 04/2010 USD 1,000,000 3 years

E-land Asia Holdings Pte Ltd 01/2011 USD 6,000,000 3 years

Vietcombank -


0016/DTDA/13CD VND 23,830,000,000 5 years

Vietcombank -


0026/DTDA/13CD USD 927,359 5 years

Vietcombank -


0008/DTDA/15CD VND 140,202,000,000 6 years

Vietnam Development Bank - Ho

Chi Minh City Branch

46/HĐTD TW VND 22,000,000,000 12 years

Shinhan Bank Vietnam Limited 130-000-167516 VND 165,200,000,000 3 years

02/2015/93435/HDTD JPY 104,500,000 3 years

30/2014/93435/HDTD VND 15,976,000,000 3 years

849580-2 USD 115,948 3 years

8523772 USD 82,600 3 years

8560689 USD 65,100 3 years

869471-6 USD 108,500 3 years

72.13.10/CTTC USD 615,200 3 years

72.13.11/CTTC USD 324,960 3 years

72.14.06/CTTC USD 386,400 3 years

72.14.07/CTTC USD 555,555 3 years

72.14.08/CTTC USD 535,200 3 years

72.14.09/CTTC USD 216,321.6 3 years

72.14.15/CTTC USD 232,800 3 years

72.14.16/CTTC USD 394,400 3 years

72.15.01/CTTC USD 81,600 3 years

72.15.02/CTTC USD 213,921.6 3 years

72.15.03/CTTC USD 525,000 3 years

Bank for Investment and

Development of Vietnam - Hoc Mon

Branch

ANZ Bank (Vietnam) Limited - Ho

Chi Minh City Branch

Vietcombank Leasing Co., Ltd

These loans are secured by fixed assets financed by the loans.

Long-term loans are repayable as follows:

31/12/2015 31/12/2014

VND VND

On demand or within one year 32,198,576,119 52,283,552,000

In the second year 33,944,460,778 33,847,654,843

In the third to fifth year inclusive 265,018,700,550 158,775,288,000

After five years 16,617,027,500 -

347,778,764,947 244,906,494,843

Less: Amount due for settlement within 12 months

(shown under current liabilities) 32,198,576,119 52,283,552,000

Amount due for settlement after 12 months 315,580,188,828 192,622,942,843






29

Long-term obligations under finance leases represent machinery finance leases from Vietcombank

Leasing Co., Ltd.

Details of obligations under finance lease are as follows:

31/12/2015 31/12/2014 31/12/2015 31/12/2014

VND VND VND VND

Amounts payable under finance leases: 56,733,241,527 51,767,456,611 54,519,142,722 47,954,905,382

Within one year 30,457,407,872 21,080,595,994 29,895,578,348 21,012,358,580

In the second to fifth year inclusive 26,275,833,655 30,686,860,617 24,623,564,374 26,942,546,802

Less: Future finance charges 2,214,098,805 3,812,551,229 - -

Present value of lease obligations 54,519,142,722 47,954,905,382 54,519,142,722 47,954,905,382

Less: Amount due for settlement within 12

months (shown under current liabilities) 29,895,578,348 18,751,609,716

Amount due for settlement after 12 months 24,623,564,374 29,203,295,666

Minimum lease payments

Present value of minimum lease

payments

26. LONG-TERM PROVISIONS

Long-term provisions represent for the severance allowance accrued in accordance with the Group’s

policies.

27. OWNERS’ EQUITY

The list of main shareholders of the Company who are holding 5% of number of share or more and

other shareholders have been fixed as at 19 February 2016 and 22 December 2014 by Ho Chi Minh

Stock Exchange (“HOSE”) as follows:

Shares % VND Shares % VND

E-Land Asia Holdings Pte Ltd 21,270,799 43.23 212,707,990,000 21,270,799 43.23 212,707,990,000

Vinatex (*) 9 - 90,000 9 - 90,000

Others 27,828,693 56.57 278,286,930,000 27,828,693 56.57 278,286,930,000

Treasury shares 100,450 0.20 1,004,500,000 100,450 0.20 1,004,500,000

49,199,951 100 491,999,510,000 49,199,951 100 491,999,510,000

As at 19/2/2016 As at 22/12/2014

(*) Vinatex is the State shareholder

Shares

31/12/2015 31/12/2014

Number of shares issued to public 49,199,951 49,199,951

Number of treasury shares 100,450 100,450

Number of outstanding shares in circulation 49,099,501 49,099,501

The Company has one class of ordinary share which carry no right to receive any fixed dividend with

the par value of VND 10,000/share. The shareholders of ordinary shares are entitles to receive

dividends as declared from time to time and are entitled to have one vote per share at the Company’s

shareholders meetings.




NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FORM B 09-DN/HN

These notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements

30

Movement in owners’ equity:

Owners' contributed

capital Share premium Treasury shares

Investment and

development fund

Financial

reserve fund Other funds Retained earnings Total

VND VND VND VND VND VND VND VND

Balance as at 01/01/2014 491,999,510,000 22,720,075,000 (5,939,990,000) 2,110,908,440 40,080,890,995 15,086,185,164 169,801,475,131 735,859,054,730

Profit for the year - - - - - - 168,400,413,084 168,400,413,084

Funds appropriation - - - 12,351,817,949 12,351,817,949 12,351,817,949 (55,583,180,770) (18,527,726,923)

Dividends declared - - - - - - (78,559,201,600) (78,559,201,600)

Balance as at 31/12/2014 491,999,510,000 22,720,075,000 (5,939,990,000) 14,462,726,389 52,432,708,944 27,438,003,113 204,059,505,845 807,172,539,291

Apply new accounting

policy

- - - 52,432,708,944 (52,432,708,944) - - -

Balance as at 01/01/2015 491,999,510,000 22,720,075,000 (5,939,990,000) 66,895,435,333 - 27,438,003,113 204,059,505,845 807,172,539,291

Profit for the year - - - - - - 153,530,498,145 153,530,498,145

Funds appropriation - - - 50,520,123,926 - - (92,620,227,197) (42,100,103,271)

Dividends for year 2014

declared

- - - - - - (29,459,700,600) (29,459,700,600)

Balance as at 31/12/2015 491,999,510,000 22,720,075,000 (5,939,990,000) 117,415,559,259 - 27,438,003,113 235,510,076,193 889,143,233,565

According to Circular No. 200/2014/TT-BTC issued by the Ministry of Finance on 22 December 2014, the Company has transferred balance as at 31 December

2014 of Financial reserve fund to Investment and Development fund.

According to the 2015 Annual General Shareholders’ Meeting minute No. 01/2015/BB-DHCD dated on 04 April 2015, the Company’s shareholders approved the

plan of appropriation for the Investment and Development fund and Bonus and Welfare funds at the ratio of 30% and 25% of consolidated profit after tax of the

year 2014, respectively.

According to General Shareholders’ Resolution No. 01/2015/NQ-DHCD dated 04 April 2015, the Company’s shareholders approved to pay dividend of the year

2014 at the ratio of 12% of share’s par value.






31

28. NON-CONTROLLING INTERESTS

Non-controlling interest rate is calculated as follows:

Thanh Cong

Medical Center Thanh Quang

Thanh Cong -

Vinh Long TC Eland

VND VND VND VND

Charter capital of subsidiaries 21,700,000,000 22,000,000,000 37,293,406,255 3,000,000,000

In which:

Contributed capital from the Company 15,395,000,000 21,450,000,000 37,293,406,255 3,000,000,000

Contributed capital from minority interests 6,305,000,000 550,000,000 - -

Non-controlling interests rate 29.06% 2.50% - -

Non-controlling interests base on net assets as at 31 December 2015:

Thanh Cong


Thanh Cong -

Vinh Long TC Eland Total

VND VND VND VND VND

Total assets 22,333,905,140 22,000,000,000 262,727,230,870 3,455,888,179 310,517,024,189

Total liabilities 1,686,626,535 - 262,679,006,250 95,600,516 264,461,233,301

Total net assets 20,647,278,605 22,000,000,000 48,224,620 3,360,287,663 46,055,790,888

In which:

Owners' contributed capital 21,700,000,000 22,000,000,000 37,293,406,255 3,000,000,000 83,993,406,255

Share premium (1,340,000,000) - - - (1,340,000,000)

Retained earning/(accumulated

losses)

287,278,605 - (37,245,181,635) 360,287,663 (36,597,615,367)

Non-controlling interests 5,999,079,163 550,000,000 - - 6,549,079,163

In which:

Owners' contributed capital 6,305,000,000 550,000,000 - - 6,855,000,000

Share premium (389,404,000) - - - (389,404,000)

Retained earnings 83,483,163 - - - 83,483,163

Non-controlling interests based on business result for the year ended 31 December 2015:

Thanh Cong


Thanh Cong -

Vinh Long TC Eland Total

VND VND VND VND VND

Profit/(loss) after tax of subsidiaries 717,745,543 - (37,245,181,635) 360,287,663 (36,167,148,429)

Profit after tax of

non-controlling interest

208,576,854 - - - 208,576,854

Changes of non-controlling interests during the year as follows:

Owner’s

contributed

capital Share premium

Accumulated

losses Total

VND VND VND VND

Balance as at 01/01/2015 7,055,000,000 (389,404,000) (325,093,691) 6,340,502,309

Profit during the year - - 208,576,854 208,576,854

Balance as at 31/12/2015 7,055,000,000 (389,404,000) (116,516,837) 6,549,079,163






32

29. OFF BALANCE SHEET ITEM

Foreign currencies:

31/12/2015 31/12/2014

- United State Dollar (USD) 1,360,416 3,938,287

- Japanese Yen ("JPY") 99,339 100,791

- Euro ("EUR") 221 232

30. BUSINESS AND GEOGRAPHICAL SEGMENTS

Business segments

The business segment report includes items directly attributable to a segment as well as for segments

on reasonable basis. Unallocated items include financial income, financial expenses, selling expenses,

general and administration expenses, profit from other activities, and corporate income tax. The

income statement of business segment report during the year is as follows:

2015 2014

VND VND

Garment and textile

Revenue 2,755,954,819,482 2,533,477,304,870

Cost of goods sold 2,343,359,998,545 2,172,087,419,203

Gross profit 412,594,820,937 361,389,885,667

Healthcare services

Revenue 28,890,853,838 30,596,219,851

Cost of goods sold 21,905,601,829 22,961,780,609

Gross profit 6,985,252,009 7,634,439,242

Others

Revenue 7,049,797,162 7,336,913,812

Cost of goods sold 206,748,717 104,065,062

Gross profit 6,843,048,445 7,232,848,750

Geographical segments

Geographical segments report depends on geographic location of customers in Vietnam (“Domestic”)

or in countries other than Vietnam ("Export"). The Group does not prepare the segment report for

items on the balance sheet due to insufficient basis for separation.

2015 2014

VND VND

Domestic

Revenue 278,674,548,259 275,962,236,813

Cost of goods sold 253,014,955,628 234,224,115,762

Gross profit 25,659,592,631 41,738,121,051

Export

Revenue 2,513,220,922,223 2,295,448,201,720

Cost of goods sold 2,112,457,393,463 1,960,929,149,112

Gross profit 400,763,528,760 334,519,052,608

The consolidated financial statements do not present segments asset due to such information does not

available to the Board of Directors.






33

31. NET REVENUE FROM GOODS SOLD AND SERVICES RENDERED

2015 2014

VND VND

Sales of merchandise and services

Garment and textile products 2,678,348,158,423 2,476,915,765,002

Processing fees 79,560,031,576 65,580,887,121

Others 36,822,706,849 37,933,133,663

2,794,730,896,848 2,580,429,785,786

In which:

Revenue from related parties (Note 42) 949,586,523,413 539,341,128,107

Deductions

Sales returns and discounts (2,835,426,366) (9,019,347,253)

2,791,895,470,482 2,571,410,438,533

32. COST OF GOODS SOLD AND SERVICES RENDERED

2015 2014

VND VND

Raw materials 1,445,023,026,180 1,460,932,890,078

Labour costs 462,098,414,744 338,754,427,141

Depreciation and amortisation 60,189,240,713 50,472,223,851

Overheads 391,171,426,411 326,570,897,790

Others 6,990,241,043 18,422,826,014

2,365,472,349,091 2,195,153,264,874

33. PRODUCTION COST BY NATURE

2015 2014

VND VND

Materials 1,348,850,566,683 1,419,456,854,231

Labor cost 516,950,709,383 435,247,141,750

Depreciation and amortisation 69,207,337,981 58,540,985,043

Out-sourced services 570,692,675,065 400,338,983,935

Others 121,921,028,316 95,150,622,639

2,627,622,317,428 2,408,734,587,598

34. FINANCIAL INCOME

2015 2014

VND VND

Bank and loan interest 2,656,896,347 2,267,325,286

Dividend income 176,250,000 176,250,000

Foreign exchange gain 21,297,642,926 10,971,483,541

24,130,789,273 13,415,058,827






34

35. FINANCIAL EXPENSES

2015 2014

VND VND

Interest expense 27,382,928,849 26,965,351,933

Reversal provision for financial

investments

(390,564,000) (165,989,700)

Foreign exchange loss 59,890,806,957 19,863,652,506

Others - 6,440,000

86,883,171,806 46,669,454,739

36. OTHER INCOME

2015 2014

VND VND

Proceeds from disposals of fixed assets 3,915,806,724 2,205,744,329

Proceeds from sales of material, supplies 883,449,875 4,202,576

Others 1,853,295,801 6,279,064,337

6,652,552,400 8,489,011,242

37. OTHER EXPENSES

2015 2014

VND VND

Expense for sales of material, supplies 879,738,687 506,250

Others 896,803,201 1,992,245,222

1,776,541,888 1,992,751,472

38. CORPORATE INCOME TAX EXPENSES

2015 2014

VND VND

Current corporate income tax expenses

- Corporate income tax based on taxable profit in

the current year

12,842,606,621 14,227,088,843

420,344,022 (587,191,060)

Total current corporate income tax expenses 13,262,950,643 13,639,897,783

- Adjustments for corporate income tax expenses in

previous years to the current year






35

The corporate income tax expense based on taxable profit in the current year was computed as

follows:

2015 2014

VND VND

Profit before tax 166,957,866,800 181,702,866,009

Adjust for 1,583,068,814 7,181,666,695

- Increase taxable income 9,858,885,347 11,912,613,481

- Decrease taxable income (8,275,816,533) (4,730,946,786)

Assesable income 168,540,935,614 188,884,532,704

Of which:

+ Income from activities which entitled incentive

tax rate 167,085,462,226 188,465,574,836

+ Income from office rental service - -

+ Income from TC Eland 450,359,579 -

+ Other income 1,005,113,809 418,957,868

Applicable tax rate

+ For income from activities which entitled

incentive tax rate 15% 15%

+ For income from office rental service 20% 20%

+ For income from TC Eland 20% 0%

+ For other income 22% 22%

Corporate income tax 25,374,016,288 28,362,006,956

Tax reduction (12,531,409,667) (14,134,918,113)

Corporate income tax based on taxable profit 12,842,606,621 14,227,088,843

in the current year

2015 2014

VND VND

Deferred corporate income tax

- Deductible temporary differences 44,158,842 297,924,628 Total deferred corporate income tax 44,158,842 297,924,628

The Company is obliged to pay corporate income tax (“CIT”) at the rate of 15% in 12 years from

2006 to 2017 for its principal activities manufactured in an industrial park. The Company is entitled

CIT exemption for 3 years from the first profit making year and the 50% reduction for the following

subsequent 7 years. This is under the Article 36, Decree No.187/2004/ND-CP dated 16 November

2004, Decree No.164/2003/ND-BTC dated 22 December 2003, Circular No.128/2003/TT-BTC dated

22 December 2003 and Circular No.88/2004/TT-BTC dated 01 September 2004. The year 2006 was

the first year the Company had taxable profit. The year 2009 was the first year the Company entitled

to the 50% CIT reduction.

For the activity relating to office rental service in an industrial park, the Company is obliged to pay

CIT at the rate of 20% in 10 years from 2006 to 2015. The Company is entitled CIT exemption for 2

years from the first profit making year and the 50% reduction for the following subsequent 6 years

basing on the Circular No.88/2004/TT-BTC dated 01 September 2004 issued by Ministry of Finance

to modify, supplement Circular No.128/2003/TT-BTC dated 22 December 2003. The year 2006 was

the first year the Company had taxable profit. The year 2008 was the first year the Company entitled

to the 50% CIT reduction. This year 2015, the Company applies the rate of 20% for the taxable

income from this activity.

For the other activities, the Company is obliged to pay CIT at the rate of 22%.

TC Eland is obligated to pay corporate income tax at the rate of 20% and the Company's remaining

subsidiaries are obliged to pay corporate income tax at the rate of 22%.






36

39. BASIC EARNINGS PER SHARE

The calculation of the basic earnings per share attributable to the ordinary equity holders of the

Company is based on the data as below and the certain reclassification has been made to the prior

year’s figures in accordance with the guidance of Circular 200 to enhance their comparability with

the current year’s presentation:

2015 2014

VND VND

Profit for the year attributable to equity holders

of the Company

153,530,498,145 168,400,413,084

Less: appropriation of bonus and welfare fund 46,059,149,444 42,100,103,271

Earnings for the purposes of basic earnings

per share

107,471,348,701 126,300,309,813

Weighted average number of ordinary shares for the

purposes of basic earnings per share

49,099,501 49,099,501

Earnings per share 2,189 2,572

40. OPERATING LEASE COMMITMENTS

2015 2014

VND VND

Minimum lease payments under operating leases

recognised in income statement for the year 9,192,192,144 5,990,350,376

At the balance sheet date, the Group had outstanding commitments under non-cancelable operating

leases, which fall due as follows:

31/12/2015 31/12/2014

VND VND

Within one year 6,525,437,584 8,290,121,879

In the second to fifth years inclusive 25,258,950,336 30,586,787,517

After five years 25,099,717,815 66,209,576,760

56,884,105,735 105,086,486,156

Operating lease payments represent total rentals payable by the Group for land leases at Tan Phu

District - Ho Chi Minh City and management fee at Tan Binh Industrial Zone – Ho Chi Minh City

and Trang Bang Industrial Zone – Tay Ninh Province. The contract terms and rental charges are

determined per each specific contract.

41. FINANCIAL INSTRUMENTS

Capital risk management

The Group manages its capital to ensure that the Group will be able to continue as a going concern

while maximizing the return to shareholders through the optimization of the debt and equity balance.

The capital structure of the Group consists of net debt (borrowings as disclosed in Note 23 and 25,

offset by cash and cash equivalents), and equity attributable to shareholders (comprising owners’

contributed capital, share premium, treasury shares, funds and retained earnings).






37

Gearing ratio

The gearing ratio of the Group as at the balance sheet date was as follows: 31/12/2015 31/12/2014

VND VND

Borrowings 1,158,067,908,829 868,729,079,407

Less: Cash and cash equivalents (88,198,067,189) (140,749,128,463)

Net debt 1,069,869,841,640 727,979,950,944

Equity 895,692,312,728 813,513,041,600

Net debt to equity ratio 1.19 0.89

Significant accounting policies

Details of the significant accounting policies and methods adopted (including the criteria for

recognition, the bases of measurement, and the bases for recognition of income and expenses) for

each class of financial assets and financial liabilities are disclosed in Note 4.

Categories of financial instruments

31/12/2015 31/12/2014

VND VND

Financial assets

Cash and cash equivalents 88,198,067,189 140,749,128,463

Trade and other receivables 156,584,112,290 146,502,448,935

Investments 2,767,600,000 2,767,600,000

Deposits 368,650,000 436,180,000

247,918,429,479 290,455,357,398

Financial liabilities

Obligations under finance leases 54,519,142,722 47,954,905,382

Borrowings 1,103,548,766,107 820,774,174,025

Trade and other payables 221,040,634,054 160,844,450,778

Accrued expenses 31,964,913,478 10,766,268,840

1,411,073,456,361 1,040,339,799,025

Carrying amounts

The Group has not assessed fair value of its financial assets and liabilities as at the balance date since

there are no comprehensive guidance under Circular 210/2009/TT-BTC issued by the Ministry of

Finance on 06 November 2009 (“Circular 210”) and other relevant prevailing regulations to

determine fair value of these financial assets and liabilities. While Circular 210 refers to the

application of International Financial Reporting Standards (“IFRS”) on presentation and disclosures

of financial instruments, it did not adopt the equivalent guidance for the recognition and measurement

of financial instruments, including application of fair value, in accordance with IFRS.

Financial risk management objectives

The Group has set up risk management system to identify and assess the risks exposed by the Group

and designed control policies and procedures to manage those risks at an acceptable level. Risk

management system is reviewed on a regular basis to reflect changes in market conditions and the

Group’s operations.

Financial risks include market risk (including foreign currency risk, interest rate risk, share price risk

and commodity price risk), credit risk and liquidity risk.






38

Market risk

Foreign currency risk management

The Group undertakes certain transactions denominated in foreign currencies; consequently,

exposures to exchange rate fluctuations arise.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary

liabilities at the end of the year are as follows:

31/12/2015 31/12/2014 31/12/2015 31/12/2014

VND VND VND VND

United States Dollar (USD) 180,370,962,437 217,620,592,371 1,031,735,997,041 902,918,377,056

Euro (EUR) 5,400,842 6,006,132 3,492,919,125 240,861,065

Japanese Yen (JPY) 18,421,424 17,931,727 11,636,780,000 -

South Korean Won (KRW) - - 282,188,079 -

180,394,784,703 217,644,530,230 1,047,147,884,245 903,159,238,121

Asset Liabilities

Foreign currency sensitivity analysis

The Group is mainly exposed to United States Dollar, Euro and Japanese Yen.

The following table details the Group's sensitivity to a 5% increase and decrease in Vietnam Dong

against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign

currency risk internally to key management personnel and represents Board of Directors’ assessment

of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only

outstanding foreign currency denominated monetary items and adjusts their translation at the year end

for a 5% change in foreign currency rates.

For a 5% increase/decrease in the following foreign currencies against Vietnam Dong, the profit

before tax for the year would decrease/increase by the same amount as follows:

2015 2014

VND VND

United States Dollar (USD) (42,568,251,730) (34,264,889,234)

Euro (EUR) (174,375,914) (11,742,747)

Japanese Yen (JPY) (580,917,929) 896,586

(43,323,545,573) (34,275,735,395)

Applying the same analysis to South Korean Won, the increase/decrease in South Korean Won would

not have material effect to the profit before tax of the Group during the year.

Interest rate risk management

The Group has significant interest rate risks arising from interest bearing loans which are arranged.

The risk is managed by the Group by maintaining an appropriate level of borrowings and analyzing

market competition to enjoy favorable interest rates from appropriate lenders.






39

Interest rate sensitivity

The loan’s sensitivity to interest rate changes which may arise at an appropriate level. Assuming all

other variables were held constant, if interest rates applicable to floating interest bearing loans had

been 200 basis points higher/lower, the Company’s profit before tax for the year ended 31 December

2015 would have decreased/increased by VND 22,070,975,322 (2014: VND 16,415,483,481).

Share price risk management

Shares held by the Group are affected by market risks arising from the uncertainty about future prices

of such shares. The Group manages this risk exposure by setting up investment limits. The

Company’s Board of Directors also assesses and approves decisions on share investments such as

operating industry, investees, etc. The Group assesses the share price risk to be immaterial.

The Group is also exposed to equity price risks arising from investments in subsidiaries and

associates. The Company’s Board of Directors assesses and approves decisions on investments in

subsidiaries and associates such as operating industry, investees, etc. Investments in subsidiaries and

associates are held for long-term strategic investments rather than trading purposes. The Group does

not have intention to trade these investments in the foreseeable future.

Commodity price risk management

The Group purchases materials, commodities from local and foreign suppliers for business purpose.

Therefore, the Group is exposed to the risk of changes in selling prices of materials, commodities.

Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in

financial loss to the Group. The Group has a credit policy in place and the exposure to credit risk is

monitored on an ongoing basis. The Group does not have any significant credit risk exposure to any

counterparty because receivables consist of a large number of customers, spread across diverse

industries and geographical areas.

Liquidity risk management

The purpose of liquidity risk management is to ensure the availability of funds to meet present and

future financial obligations. Liquidity is also managed by ensuring that the excess of maturing

liabilities over maturing assets in any period is kept to manageable levels relative to the amount of

funds that the Group believes can generate within that period. The Group policy is to regularly

monitor current and expected liquidity requirements to ensure that the Group maintains sufficient

reserves of cash, borrowings and adequate committed funding from its shareholders to meet its

liquidity requirements in the short and longer term.

The following table details the Group’s remaining contractual maturity for its non-derivative

financial assets and financial liabilities with agreed repayment periods. The tables have been drawn

up based on the undiscounted cash flows of financial assets and undiscounted cash flows of

financial liabilities based on the earliest date on which the Group can be required to pay. The

inclusion of information on non-derivative financial assets is necessary in order to understand the

Group’s liquidity risk management as the liquidity is managed on a net asset and liability basis.






40

31/12/2015 Less than 1 year Over 1 year Total

VND VND VND

Cash and cash equivalents 88,198,067,189 - 88,198,067,189

Trade and other receivables 156,584,112,290 - 156,584,112,290

Investments - 2,767,600,000 2,767,600,000

Deposits 333,650,000 35,000,000 368,650,000

245,115,829,479 2,802,600,000 247,918,429,479

Obligations under finance leases 29,895,578,348 24,623,564,374 54,519,142,722

Borrowings 787,968,577,279 315,580,188,828 1,103,548,766,107

Trade and other payables 221,040,634,054 - 221,040,634,054

Accrued expense 31,964,913,478 - 31,964,913,478

1,070,869,703,159 340,203,753,202 1,411,073,456,361

Net liquidity gap (825,753,873,680) (337,401,153,202) (1,163,155,026,882)

31/12/2014 Less than 1 year Over 1 year Total

VND VND VND

Cash and cash equivalents 140,749,128,463 - 140,749,128,463

Trade and other receivables 146,502,448,935 - 146,502,448,935

Investments - 2,767,600,000 2,767,600,000

Deposits 401,180,000 35,000,000 436,180,000

287,652,757,398 2,802,600,000 290,455,357,398

Obligations under finance leases 18,751,609,716 29,203,295,666 47,954,905,382

Borrowings 628,151,231,182 192,622,942,843 820,774,174,025

Trade and other payables 160,844,450,778 - 160,844,450,778

Accrued expense 10,766,268,840 - 10,766,268,840

818,513,560,516 221,826,238,509 1,040,339,799,025

Net liquidity gap (530,860,803,118) (219,023,638,509) (749,884,441,627)

Regardless of the existing net liquidity gap, the Board of Directors believes that the Group will be

able to generate sufficient funds to meet its financial obligations as and when they fall due from

internally generated cash flows and maintains the minimum credit lines available. Undrawn facilities

are disclosed in Note 23 and 25.

42. RELATED PARTY TRANSACTIONS AND BALANCES

List of related parties:

Name Relationship

Eland Asia Holdings Pte Ltd Main shareholder

Thanh Chi Corporation Associate

Eland World Limited Company in Eland Group

Eland International Fashion (Shanghai) Co., Ltd Company in Eland Group

Eland Fashion (Shanghai) Co., Ltd Company in Eland Group

Eland Fashion Hong Kong Limited - Taiwan Branch Company in Eland Group

Eland Asia Holding Pte.Ltd - Hong Kong Brach Company in Eland Group

Eland Fashion Hong Kong Limited Company in Eland Group

Eland Retail Limited Company in Eland Group

Eland Viet Nam Co., Ltd Company in Eland Group

S.Y VINA Joint Stock Company Company in Eland Group

Savimex Corporation Company in Eland Group

Wish Trading (Shanghai) Co., Ltd Company in Eland Group

Wish Fashion (Shanghai) Co., Ltd Company in Eland Group






41

During the year, the Group entered into the following significant transactions with its related parties:

2015 2014

VND VND

Sales

Eland World Limited 547,723,166,173 359,734,670,923

Eland International Fashion (Shanghai) Co., Ltd 173,302,392,515 96,895,048,070

Eland Fashion (Shanghai) Co., Ltd 75,533,795,546 45,183,950,494

Eland Asia Holding Pte.Ltd - Hong Kong Branch 110,819,984,998 -

Eland Fashion Hong Kong Ltd - Taiwan Branch 389,940,189 -

Wish Fashion (Shanghai) Co., Ltd 19,806,415,435 17,439,652,676

S.Y VINA Joint Stock Company 10,031,040 11,744,727

Eland Fashion Hong Kong Limited 20,574,309,122 11,455,511,377

Eland Retail Limited 779,483,161 6,944,618,574

Eland Vietnam Co., Ltd. 647,005,234 1,675,931,266

949,586,523,413 539,341,128,107

Purchases



Eland Vietnam Co., Ltd. 2,327,152,594 72,391,200

S.Y VINA Joint Stock Company 114,111,270 -

Savimex Corporation 3,357,174,624 1,960,211,261

Wish Trading (Shanghai) Co., Ltd 1,370,300,852 829,488,538

Loan interest

E-land Asia Holdings Pte Ltd 1,535,197,469 1,285,030,254

Dividends declared to


Remuneration paid to the Board of Directors during the year was as follows:

2015 2014

VND VND

Salaries and benefits in kind 9,369,335,041 10,138,038,249

Significant related party balances as at the balance sheet date were as follows:

31/12/2015 31/12/2014

VND VND

Short-term trade receivables

Eland Fashion (Shanghai) Co., Ltd 1,543,419,990 3,165,231,813

Eland Fashion Hong Kong Ltd 1,130,604,900 2,385,261,588



Eland Asia Holding Pte.Ltd - Hong Kong Branch 21,935,155,050 -

Eland Fashion Hong Kong Ltd - Taiwan Branch 175,475,935 -

Eland Retail Limited - 1,823,045,028

Eland Vietnam Co., Ltd. - 100,936,635

Wish Fashion (Shanghai) Co., Ltd - 834,265,850

75,387,930,887 32,983,539,291






42

31/12/2015 31/12/2014

VND VND

Other receivables

Thanh Chi Corporation 1,040,950,000 2,602,375,000

Short-term trade payables



Wish Trading (Shanghai) Co.Ltd 107,343,157 -

S.Y VINA Joint Stock Company 24,015,646 -

Savimex Corporation 298,310,408 206,294,364

43,749,653,990 12,474,026,739

Loan payable


Loan interest payable


43. SUPPLEMENTAL NON-CASH DISCLOSURES ARE STATED ON CONSOLIDATED

CASH FLOW STATEMENT

Dividends paid during the year excluded an amount of VND 118,884,570, representing dividends

declared that have not yet been paid (2014: VND 29,566,537,650). Consequently, changes in

accounts payable have been adjusted by the same amount.

Date post:	20-Jun-2020
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