PLC AUDITED SEPARATE FINANCIAL STATEMENTS 2015

Deloitte.

PETROLEWEX PETROCHEMICAL
CORPORATION-JSC
(Incorporated in the Socialist Republic of Vietnam)

AUDITED SEPARATE
FINANCIAL STATEMENTS
For the year ended 31 December 2015

i


PETROUMEX PETROCHEMICAL CORPORATION - JSC
Floors 18 & 19,229 Tay Son, Nga Tu So Ward
Dong Da District, Hanoi, S.R. Vietnam

TABLE OF CONTENTS
CONTENTSPAGEIS1
STATEMENT OF THE BOARD OF DIRECTORS2
INDEPENDENT AUDITORS' REPORT3
BALANCE SHEET4-5

INCOME STATEMENT6
CASH FLOW STATEMENT7
NOTES TO THE SEPARATE FINANCIAL STATEMENTS8-28


PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Floors 18 & 19, 229 Tay Son, Nga Tu So Ward
Dong Da District, Hanoi, S.R. Vietnam

STATEMENT OF THE BOARD OF DIRECTORS
The Board of Directors of Petrolimex Petrochemical Corporation - JSC (the "Corporation") presents this report
together with the Corporation's separate financial statements for the year ended 31 December 2015.

THE BOARDS OF MANAGEMENT AND DIRECTORS
The members of the Boards of Management and Directors of the Corporation who held office during die year and
to the date of this report are as follows:
Board of Management
Mr. Pham Ba NhuanChairman
Mr. Nguyen Van DueMember
Mr. Nguyen Van KhanhMember
Mr. Vu Van Chien

'Member

Mr. Ha Thanh TuanMember
Board of Directors
Mr. Nguyen Van DueGeneral Director
Mr. Le Quang TuanDeputy General Director
Mr. Ngo Due GiangDeputy General Director

BOARD OF DIRECTORS' STATEMENT OF RESPONSIBILITY
The Board of Directors of the Corporation is responsible for preparing the separate financial statements, which
give a true and fair view of the financial position of the Corporation and of its results and cash flows for the year
in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations
relating to financial reporting. In preparing these separate 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;

•State whether applicable accounting principles have been followed, subject to any material departures
disclosed and explained in the separate financial statements;
•Prepare the separate financial statements on the going concern basis unless it is inappropriate to presume that
the Corporation will continue in business; and
•Design and implement an effective internal control system for die purpose of properly preparing and
presenting the separate financial statements so as to minimize errors and frauds.
The Board of Directors is responsible for ensuring that proper accounting records are kept, which disclose, with
reasonable accuracy at any time, the financial position of the Corporation and that the separate financial
statements comply with Vietnamese Accounting Standards, accounting regime for enterprises and legal
regulations relating to financial reporting. The Board of Directors is also responsible for safeguarding the assets of
die Corporation and hence for taking reasonable steps for the prevention and detection of frauds and other
irregularities.
The Board of Directors confirms that the Corporation has complied with the above requirements in preparing

tors,

General Director
Hanoi, 25 March 2016


Deloitte Vietnam Company Ltd.
12A Floor. Vinaconex Tower
34 Lang Ha Street, Dong Da District
Ha Noi, Vietnam
Tel: +844 6288 3568
Fax: +844 6288 5678
www.deloitte.com/vn

Deloitte.

INDEPENDENT AUDITORS' REPORT
To:

The Shareholders
The Boards of Management and Directors
Petrolimex Petrochemical Corporation - JSC

We have audited the accompanying separate financial statements of Petrolimex Petrochemical Corporation - JSC
(the "Corporation"), prepared on 25 March 2016 as set out from page 4 to page 28, which comprise the balance
sheet as at 31 December 2015, and the statement of income and statement of cash flows for the year then ended,
and a separate summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Separate financial statements
Management is responsible for the preparation and fair presentation of these separate financial statements in
accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations
relating to financial reporting and for such internal control as management determines is necessary to enable the
preparation of separate financial statements that are free from material misstatement, whether due to fraud or
error.

Auditors' Responsibility
Our responsibility is to express an opinion on these separate financial statements based on our audit. We
conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
separate financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
separate financial statements. The procedures selected depend on the auditors' judgment, including the assessment
of the risks of material misstatement of the separate financial statements, whether due to fraud or error. In making
those risk assessments, the auditors consider internal control relevant to the Corporation's preparation and fair
presentation of the separate financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation's internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness

of accounting estimates made by management, as well as evaluating the overall presentation of the separate
financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.

Opinion
atements present fairly, in all material respects, the financial position of the
and its financial performance and its cash flows for the year then ended in
ig Standards, accounting regime for enterprises and legal regulations

Dang Chi Dung

Le Anh Son

Deputy General Director

Audit Practising Registration Certificate

Auditor
Audit Practising Registration Certificate

No. 0030-2013-001-1

No. 1961-2013-001-1

For and on behalf of
DELOITTE VIETNAM COMPANY LIMITED
25 March 2016
Hanoi, S.R. Vietnam

Deloitte refers to one or more of Deloitte Touctie Tohmatsu Limited, a UK private company limited by guarantee
fDTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally
separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients.
Please see www.deloitte.conn/about for a more detailed description of DTTL and its member firms.


PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Separate financial statements

Floors 18 & 19,229 Tay Son, Nga Tu So Waid

For the year ended 31 December 2015

Dong Da District, Hanoi, S.R. Vietnam

BALANCE SHEET
As at 31 December 2015

FORMB01-DN
UnitVND

ASSETS

Codes Notes

31/1212015

31/12/2014

A CURRENT ASSETS

100

640,844,117,455

913,103,143,186

1.

110
111
112

47275254,704

38277215251

47,325,759,704

38,419,915,351

49,795,000

57,400,000

165,042232.669

320258208,049

134,007,779,966

199293,117,205

26,320,291,349

45,155,629,415

23,164,874,199

95,220,090,766

(19260,601,357)

(18,883203,454)

109,888,512

172,974,117

424,934,618,866
424,934,618,866

542287262257
542287262,857

3,491,711,216

11279256229

3,491,711,216

735,331,912

Cash and cash equivalents
I.Cash
2. Cash equivalents

B. Short-tenn receivables
1. Short-term trade receivables
2. Shoit-term advances to suppliers
3. Other short-tenn receivables
4. Provision for short-term doubtfol debts
5. Deficits in assets awaiting solution
BL Inventories
1. Inventories
IV. Other short-term sssets
1. Short-tenn prepayments
2. Value added tax deduetibles
3. Taxes and other receivables hum the Stale budget

130
131
132
136
137
139
140
141
150
151

152
153

5

7
g
9
10

11

8,844,345,144
1,700,179,873

12

B. NON-CURRENT ASSETS

200

746,700299,492

614,115212,795

L

220
221
222

221
227
228
229

110,098,749,199

102249240277

109,966,193,728
278,319,205,019

101257,980,444
243,594,468,199

(168,353,011,291)

(142,336,487,755)

132,555,381
3,814,284,398

3.814,284,398

(3,681,729.017)

(2,423,024,165)

115243233247

78,104,726,078

115,543233,247

78,104,726,078

461,047211,083

359269,015214

400,000,000,000

300,000,000,000

70,557,956,000
(9,510,444,917)

70,557,956,000
(11288,940,486)

60,011,106,053

74292230226

60,011,106,053

74,092,630,526

1287244,716,947

1227218,755281

Fired assets
1. Tangible fixed assets
•Cost
'Accumulated depredation
2. Intangible assets
-Cost
- Accumulated amortisation

IL Long-term assets in progress
1. Construction in progress
m. Long-term linsneisl investments
1. Investment in subsidiaries
2. Investments in joint-ventures, associates
3. Provision for impairment of long-tenn financial

240
242
250
251
252
254

1. Long-tetm prepayments

260
261

TOTAL ASSET (270-1M 4 200)

270

IV. Other long-term assets

13

14

15

6
6
6
11

The notes set out on pages 08 to 28 are an integral part of these separate financial statements

1,391,260233


PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Floors 18 & 19,229 Tay Son, Nga Tu So Ward

Separate financial statements
For t^e year ended 31 December 2015

Dong Da District, Hanoi, S.R. Vietnam

BALANCE SHEET (Continued)

Asm 31 December 2015
FORMB01-DN
Unit: VND

Cedes Nates

RESOURCES

31/12/2015

31/12/2014

C. LIABILITIES

300

298527.083,441

513,638514563

1.

310
311
312
313
314
315

298527,083,441

513,638514563

92,609,020,500

122,201,729,847

4,640,795,813

1,593,431,433

15,004,101,360

13,001,717,612

20,852,194,853

24,401,236,913

17

9,293,603,151

24,798,584

18
19

8,016,736,076

152549,552,808

195,561,211,976
162,140,873,632

322

(4,138,921,120)

(5586,685,534)

D. EQUITY

400

l,089,017.63356

1513580,441518

L

1,089,017,633506

1,013580,441518

807,988,390,000

702,608,370,000

3,561,050,000

3,561,050,000

466,200,000

466500,000

(12,730,000)

(12,730,000)

198,388,796,611

263527300,571

6. Other reserves

410
411
412
414
415
418
420

20,463,604,691

20,463,604,691

7. Retained earnings

421
421a

58,162,322,204
(46,504,365,599)

23,266,646556
(19,687,821,189)

421b

104,1166,687,803

42,954,467,445

Current liabilities
1. Short-term trade payables
2. Shott-tetm advances from customets
3. Taxes and amounts payable to the State budget
4. Payables to employees
5. Short-tetm acctued expenses
6. Other cunent p^ables
7. Short-term loans and obligations under finance

319
320

10
12

leases
8. Bonus and welfare funds

Owners' equity
1. Owners' contributed capital
2. Share premium
3. Other owner's capita]
4. Treasury shares
3. Investment and development fund

- Retained earnings acamulaled to the prior year

20

end
-Retained earnings ofthe current year

1587544,716,947

TOTAL RESOURCES (440-300*400)

1527518,755581

Nguyen Quang Hung
Preparer

Manager of Finance and

General Director

Accounting Department
Hanoi, 25 March 2016

The notes set out on pages 08 to 28 a

n integral part ofthese separate financial statements

5


PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Separate financial statements

Floors 18 & 19,229 Tay Son, NgaTu So Ward

For the year ended 31 December 2015

Dong Da District, Hanoi, S.R. Vietnam

INCOME STATEMENT
For the year ended 31 December 2015

FORMB02-DN
UniCVND

2015

2014

1,885,654^80,895

2478492404451

Codes

Notes

LGross revenue from goods sold

01

22

2. Deductions

02

3. Net revenue from goods sold (10=01-02)

10

22

1485,654480495

2,078492,604451

4. Cost of sales

11

23

1485,852,463,962

1,611427,477,638

5. Gross profit from goods sold and services

20

499401416433

467465,126413

70401,905,699

ITEMS

-

rendered (20-10-11)
6. Financial income

21

25

182,412,589,968

7. Financial expenses

26

16,085,661,715

5,797,413428

3,074,653,134

3,396,037,537

8. Selling expenses

22
23
25

29

224434,667,726

214,106,673,474

9. General and administration expenses

26

29

49499467,838

45,798439470

10. Operating profit

30

392494409422

272464,706440

-In which: Interest expense

(30-20*(21-22H2S*20))
11. Other income

31

27

12,070,070,838

8,958,502,916

12. Other expenses

32

28

7,639,828445

1425,741,730

13. Profit from other activities (40-31-32)

40

4430442493

7432,761,186

14. Accounting profit before tax

50

396425,052,115

279,797467426

49,865,675,180

47,142,175481

347,059476435

232455492445

(50-30^40)
15. Current corporate income tax expense

51

16. Net profit after corporate income tax

60

30

(60^0-51)

Nguyen Quang Hoi

P

Preparer

Manager of Finance and

General Director

Accounting Department

Hanoi, 25 March 2016

The notes set out on pages 08 to 28 are an integral part of these separate financial statements

6

PETROUMEX PETROCHEMICAL CORPORATION - JSC
Floors 18 & 19,229 Tay Son, Nga Tu So Ward

Separate financial statements

For the year ended 31 December 2015

Dong Da District, Hanoi, S.R. Vietnam

CASH FLOW STATEMENT
For the year ended 31 December 2015

FORM B 03-DN
UnittVND

2015

2014

07

396,923,052,115

279,797,467,626

02
03
04

30,609,955,187
(1,301,097,666)
1,125,975,999

22385,079,489
356,062,240
232,444,990

Interest expense

05
06

(177,178,277,498)
3,074,653,184

(68,000,354,245)
3,396,037,537

3. Operating profit before movements in working capital

08

253356,261321

230366,737,637

Changes in receivables

09
10
11

98,722,073,636
117,452,743,991
(24,932,765,373)

9,753,500,066
(73,096,236,369)

12
14
15
17
20

11,325,145,169
(3,074,653,184)
(52,487,605,364)
(7,003,862,201)

(809,521,354)
(3,396,037,537)
(46,951,153,762)
(9,815,424,154)

393357337,995

04,407,466,507

21

(68,805,831364)

(94,089,157,469)

22

577399,130

95318,182

3. Equity investments in other entities

25

4. Interest earned, dividends and profits received

27

(100,000,000,000)
244,051,516,037

698272,912

30

75,023,003,003

(93395,566,375)

2. Repayment of borrowings

33
34

3. Dividends and profits paid

36

919268,634,041
(929,112,912215)
(450,399,294,550)

877,727,500,568
(832,934,514,513)
(97,460,326,500)

Net cask (used in) financing activities

(460,243,572,724)

(52,667340,445)

8,836349,074

(61,475,440313)

Cash and cash equivalents nt the beginning of the year

40
50
60

99,893,456235

Effect of changes in foreign exchange rates

61

Cash and cash equivalents at the end of the year

70

38,477315351
61390279
47375354,704

Codes

ITEMS
L CASH FLOWS FROM OPERATING ACTIVITIES
1. Profit before tax
2. Adjustments for:
Depreciation and amortisation offixed assets
Provisions
Foreign exchange loss arising from t^anslating foreign
currency items

(Gain) from investing activities

Changes in inventories
Changes in payables (excluding accrued loan interest and

(29,564398,020)

corporate income tax payable)
Changes in prepaid expenses
Interest paid
Corporate income tax paid
Other cash outflows
Net cask generated by operating activities

II. CASH FLOWS FROM INVESTING ACTIVITIES
1. Acquisition and construction of fixed assets and other
long-term assets
2. Proceeds from sale, disposal of fixed assets and other
long-term assets

Net cash generated byKused in) investing activities

IIL CASH FLOWS FROM FINANCING ACTIVITIES
1. Proceeds from borrowings

Net increase/(decrease) in cash (50-20430440)

Nguyen QuangHung
Preparer

Phuong Thao Hien
Manager of Finance and

V^ ^^^-~'Nguy^n Van Due
';i^;^:^--^6eneral Director

Accounting Department
Hanoi, 25 March 2016
77m notes set out on pages 08 to 28 are an integral part of these separate financial statements

7

59399,429
38,477315351


PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Floors 18 & 19,229 Tay Son, Nga Tu So WardSeparate financial statements
Dong Da District, Hanoi, S.R. VietnamFor die year ended 31 December 2015

NOTES TO SEPARATE THE FINANCIAL STATEMENTSFORM B 09-DN
These notes are an integralpart ofand should be read in conjunction with the accompanying separatefinancial statements

1.GENERAL INFORMATION
Structure of ownership
Petrolimex Petrochemical Coiporation - JSC (the "Corporation"), formerly known as Petrolimex
Petrochemical Joint Stock Company, which was transformed to a joint stock company under Decision
No. 1801/2003/QD-BTM dated 23 December 2003 issued by the Minister of Trade (currently known as
die Ministry of Industry and Trade). The official handover date was 01 March 2004. The Corporation's
shares have been listed on Hanoi Stock Exchange with stock code PLC.

The parent company of the Corporation is Vietnam National Petroleum Group which owns 79.07% of the
Corporation's shares. Other shareholders own 20.93% of the Corporation's shares.

The number of employees as at 31 December 2015 was 345 (31 December 2014:352).
Operating industry and principal activities
Operating industry and principal activities of the Corporation are to:
Trade and import, export lubricant, asphalt and chemicals (except for chemicals prohibited by die
State) and other commodities of oil and gas industry;
-Trade and import, export specialized materials and equipment of the petrochemical industry;
Provide transportation, warehouse, production, analysis and test, consultancy and technical services
relating to the petrochemical industry;
-Do real estate business;
Provide maritime services and ship supplies.
Normal production and business cycle
The Corporation's normal production and business cycle is carried out for a time period of 12 months or
less.
Characteristics of the business activities in the fiscal year which have impact on the financial
statements

•According to Resolution No. 21/NQ-PLC-HDQT dated 27 November 2014 of the Board of
Management, the Corporation has decided to dissolve Petrolimex Petrochemical Corporation -

JSC-Hai Phong Brach since 24h 31 December 2014;
•According to Decision No. 22/QD-PLC-HDQT dated 30 March 2015 of the Board of
Management, the Corporation has decided to additionally contribute VND 100 billion to the

equity capital of Petrolimex Asphalt Company Limited.
The Corporation's structure
As at 31 December 2015, the Corporation has branches as follows:
-Petrolimex Petrochemical Corporation - JSC - Da Nang Branch;

-Petrolimex Petrochemical Corporation - JSC - Sai Gon Branch;
Petrolimex Petrochemical Corporation - JSC - Can Tho Branch.


PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Separate financial statements
For the year ended 31 December 2015

Floors 18 & 19,229 Tay Son, Nga Tu So Ward
Dong Da District, Hanoi, S.R. Viemam

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

1.GENERAL INFORMATION (Continued)
The Corporation's structure (Continued)
As at 31 December 2015, die Corporation has 02 subsidiaries and 02 associates. General information of
subsidiaries and associates of the Corporation is as follows:
^ace of

Company name

Proportion ProportionInvestment

incorporation of ownership

of votingvalue is at Principal

and operationinterest

power heW 31 December 2015 activities

VND
SabMtria
Petrolimex Asphalt Company

Hanoi, Viemtan100%

100%

250,000,000,000 Trading asphalt

^^noi, Vietnam100%

100%

150,000,000,000 Trading chemical

Limited
Petrolimex Chemical Company

Limited
AssnaOa
Civil Engineeriiig Constitution Joint

Hanoi, Vietnam

aw

aw

4,557,956,000 Consultation of
transporiation

Steak Company No.S10

works
VP Petrochemical Transport Joint

Hanoi, Victim43.78%

43.7!%

66,000,000,000 Petrochemical

Stock Company

transportation

Disclosure of information comparability in the financial statements
As stated in Note 3, since 01 January 2015, the Corporation 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. This Circular is effective for the financial year 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^TTBTC dated 31 December 2009 issued by the Ministry of Finance. However, the adoption of Circular 200
has no material impacts on information comparability in the separate financial statements.

ACCOUNTING CONVENTION AND FINANCIAL YEAR
Accounting convention

The accompanying separate 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.
These separate financial statements are prepared only for the Corporation as the holding company; its
consolidated financial statements are prepared and issued separately. These separate financial statements
should be read in conjunction with the Corporation's consolidated financial statements for sufficient
information about its financial performance in the year.
The accompanying separate 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 m
countries and jurisdictions other than Vietnam.
Financial year
lite Corporation's financial year begins cm 01 January and ends on 31 December.


PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Floors 18 & 19,229 lay Son, Nga Tu So WardSeparate financial statements
Dong Da District, Hanoi, S.R. VietnamFor the year ended 31 December 2015

NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)FORM B 09-DN
These notes are an integral part ofand should be read in corgunction with the accompanying separate financial statements

3.ADOPTION OF NEW ACCOUNTING GUIDANCE
On 22 December 2014, the Ministry of Finance issued Circular No. 200/2014/TT-BTC ("Circular 200")
guiding the accounting regime for enterprises. This Circular is 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^Tr-BTC dated 31 December 2009 issued by the Ministry of Finance. The Board of
Directors has adopted Circular 200 in the preparation and presentation of the separate financial statements
for the year ended 31 December 2015.

4.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies, which have been adopted by die Corporation in the preparation of
these separate financial statements, are as follows:

Estimates
The preparation of separate financial statements in conformity with Vietnamese Accounting Standards,
accounting regime for enterprises and legal regulations relating to financial reporting requires
management 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 separate financial statements and the
reported amounts of revenues and expenses during the financial year. Although these accounting estimates
are based on the management's best knowledge, actual results may differ from those estimates.

Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits, gold and jewelry, cash in transit 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
Investments in subsidiaries, associates
Investment in subsidiaries
A subsidiary is an entity over which the Corporation has control. Control is achieved where the
Corporation has the power to govern the financial and operating policies of an investee enterprise so as to
obtain benefits from its activities.
Investments in associates
An associate is an entity over which die Corporation 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.
Interests in subsidiaries and associates are initially recognised at cost. The Corporation's share of the net
profit of the investee after acquisition is recognised in the income statement. Other income received other
than such profit share are treated as return on the investments and deducted from the cost of the

investments.


PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Floors 18 & 19,229 Tay Son, Nga Tu So WardSeparate financial statements
Dong Da District, Hanoi, S.R. VietnamFor the year ended 31 December 2015

NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)FORM B 09-DN
These notes are an integral part ofand should be read in conjunction with the accompanying separate financial statements

4.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Financial investments (Continued)
Investments in subsidiaries, associates (Continued)
Investments in associates (Continued)
Investments in subsidiaries and associates are carried in die balance sheet at cost less provision for
impairment of such investments (if any). Provisions for impairment of investments in subsidiaries and
associates are made in accordance with Circular No. 228/2009/TT-BTC dated 07 December 2009 issued
by the Ministry of Finance on "Guiding the appropriation and use of provisions for devaluation of
inventories, loss of financial investments, bad debts and warranty for products, goods and construction
works at enterprises", Circular No. 89/2013/TT-BTC dated 28 June 2013 by the Ministry of Finance
amending and supplementing Circular No. 228/2009/TT-BTC and 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 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 die
inventories to their present location and condition.
Net realisable value represents the estimated selling price less all estimated costs to completion and costs
to be incurred in marketing, selling and distribution. Inventories are accounted for under the perpetual
method, cost of materials and tools received and delivered are calculated using FIFO method and cost of
finished goods and merchandise are calculated using standard cost method (a method similar to estimated
and budget cost method). The difference between standard cost and actual cost of finished goods and
merchandise are allocated to cost of finished goods, merchandises sold and inventories as at the balance
sheet date.
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 costs higher than net realisable values as at the balance sheet date.


PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Floors 18 & 19,229 Tay Son, Nga Tu So WardSeparate financial statements
Dong Da District, Hanoi, S.R. VietnamFor the year ended 31 December 2015

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

4,SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less accumulated depreciation.
The costs of purchased tangible fixed assets comprise their purchase prices and any directly attributable
costs of bringing the assets to their working condition and location for their intended use.
Tangible fixed assets are depreciated using die straight-line method over their estimated useful lives as
follows:

2015
Years
Buildings and structures5-20
Machinery and equipment3-8
Motor vehicles6-17
Office equipment3-5

Intangible assets and amortisation
Intangible assets represent computer software that is stated at cost less accumulated amortisation.
Computer software are amortised using the straight-line method over the duration of 03 years.

Construction in progress
Properties in the course of construction for production, rental or administrative purposes, or for the
purposes not yet determined, are carried at cost. Cost includes costs that are necessary to form the assets in
accordance with the Corporation's accounting policy. Depreciation of these assets, on the same basis as
other property assets, commences when the assets are ready for their intended use.

Prepayments
Prepayments are expenses which have already been paid but relate to results of operations of multiple
accounting periods. Prepayments comprise prepaid office area investments, land rentals and other types of
prepayments.
Office area investments at MIPEC Tower, No. 229 Tay Son Street, Dong Da District, Hanoi and land
rentals at Dinh Vu Industrial Park, Hai Phong Province represent prepaid amounts and are charged to the
income statement using the straight-line method over the lease term/useful life.
Other types of prepayments comprise costs of small tools, supplies and spare parts issued for consumption
and others which are expected to provide future economic benefits to the Corporation. These expenditures
have been capitalised as prepayments, and are allocated to the income statement using the straight-line
method in accordance with the current prevailing accounting regulations.

PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Floors 18 & 19,229 Tay Son, Nga Tu So WardSeparate financial statements
Dong Da District, Hanoi, S.R. VietnamFor the year ended 31 December 2015

NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)FORM B 09-DN
These notes are an integral part ofand should be read in conjunction with the accompanying separate financial statements

4.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue recognition

Revenue from the sale ofgoods is recognised when all five (5) following conditions are satisfied:
(a)frie Corporation has transferred to the buyer the significant risks and rewards of ownership of the
goods;
(b)die Corporation retains neither continuing managerial involvement to the degree usually associated
with ownership nor effective control over the goods sold;
(c)die amount of revenue can be measured reliably;

(d)it is probable that the economic benefits associated with die transaction will flow to the Corporation;
and
(e)the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Interest income is accrued on a time basis, by reference to the principal outstanding and at die applicable
interest rate.
Dividend income from investments is recognised when die Corporation's right to receive payment has
been established.

Foreign currencies
The Corporation applies die 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 income statement. Unrealised exchange gains as at the
balance sheet date are not treated as part of distributable profit to shareholders.

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.

Taxation
Income tax expense represents the sum of die 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 income statement because it excludes items of income or expense that are taxable or
deductible in other years (including loss carried forward, if any) and it further excludes items that are
never taxable or deductible.


PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Floors 18 & 19,229 Tay Son, Nga Tu So WardSeparate financial statements
Dong Da District, Hanoi, S.R. VietnamFor the year ended 31 December 2015

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

4.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Taxation (Continued)
Deferred tax is recognised on significant differences between carrying amounts of assets and liabilities in
the separate 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 recognised 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 feat are expected to apply in fee year when fee liability is settled
or fee 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 fee deferred tax is also dealt wife 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 fee same taxation
authority and fee Corporation intends to settle its current tax assets and liabilities on a net basis.
The determination of fee tax currently payable is based on fee current interpretation of tax regulations.
However, these regulations are subject to periodic variation and their ultimate determination depends on
fee results of fee tax authorities' examinations.
Other taxes are paid in accordance wife fee prevailing tax laws in Vietnam.

VNDVND
Cashonhand
Demand deposits
Cash in transit

1,033,493,595694,700,663
42,768,828,04337,725,214,688
3,523,438,066
47325,759,70438,419,915351

PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Floors 18 & 19,229 Tay Son, Nga Tu So Ward

Separate financial statements

For ^^e year ended 31 December 2015

Dong Da District, Hanoi, S.R. Vietnam

NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)FORM B 09-DN
These notes are an integral pan ofand should be read in conjunction with the accompanying separate financial statements

7.SHORT-TERM TRADE RECEIVABLES

Total Lubri^ants Hong Kong Limited
Others

Trade receivables from related parties

(See details in Note 32)

31/12/2015
VND

31/12/2014
VND

12,005,403,906

45,488,752,646

122,802,286,060

153,804,364,559

134,807,779,066

199393,117305

45,125390,675

54366,811,677

31/12/2015
VND
12,500,000,000

(Reclassified)
VND
12,500,000,000

1,739,819,604

71,342,545,817

2,625,553,036

4,167,451,958

2,562,262,624

2,685,880,939

351,700,000

263,935,600

3,385,538,935

4360,276,452

OTHER SHORT-TERM RECEIVABLES

31/12/2014

Financial suppott for Petrolimett Asphalt Company

Limited (i)
Other receivables from Petrolimetc Asphalt Company

Limited
Petrolimex Chemical Company Limited
Advances
Shori-teim deposits, mortgages and collatetals
Othets

95,220,090,766
Other receivables from related parties

(See details in Note 32)
(i) The balance of financial support to Petrolimex Asphalt Company Limited as at 31 December 2015
represents the amount granted to Petrolimex Asphalt Company Limited under Contract No.

01/2013/HDHTVDT dated 16 December 2013 to support the investment in Cua Lo Asphalt
Warehouse project, which has a grace period of 18 months. The maximum repayment period is 12
months from the expiry date of the grace period. The capital funding cost is calculated based on 4month loan interest at Joint Stock Commercial Bank for Foreign Trade of Vietnam, or by agreement
between the two parties at the time of calculating the capital funding cost

BAD DEBTS

Detailed by overdue days

Under 6 months
Over 6 months to under 1 year

29334,442,777
1,178,049,287

Over 1 year tounder2yeam

345,597,920

Over 2 year to under 3 years

1,298,199,793

Over 3 yearn

29,234,442,777
824,634,501
172,798,960
389,459,938

1,180,433,622
1,298,199,793

3,571202,492

40,693,404,877
936,000,215
649,099,896
1,126,983,932

15,545,451,590

17,925,647,756

49,981.937533

40,693,404,877

30,621336,176

62388,692374

43,405,488,920

PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Separate financial statements

Floors 18 & 19,229 Tay Son, Nga Tu So Ward

For the year ended 31 December 2015

Dong Da District, Hanoi, S.R. Vietnam

NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)FORM B 09-DN
These notes are an integral part ofand should be read in conjunction with the accompanying separate financial statements

10.

INVENTORIES

VND

VND

53,409,258,033

61,177,585,977

215,449,863,301

225,495,907,949

Goods in transit
Raw materials

7,114,181,744

11301,473,580

22,440,744,956

26,502,677,641

126,520,570,832

218,009,717,710

424,934,618^66

542^87^623S7

Tools and supplies
Work in progress
Finished goods

PREPAYMENTS
31/12/2015
VND

31/12/2014
VND

3,401,711,216

735,331,012

Investments in Mipec office area

34,077,505,508

35,645,051,160

Land rentals at Dinh Vu Industrial Park

18,048,114,000

18,612,118,500

Unallocated tools and supplies

2,078,856,040

4,870,824,842

Fixed assets maintenance expenses

3,744,238,677

3,064,627,314

262,300,010

10,001,008,701

63,502317369

74,827,962,438

a)Short-term
Advertising expenses and others
b)Long-term

Advertising expenses and others

12.

TAXES AND AMOUNTS RECEIVABLE FROM/PAYABLE TO THE STATE BUDGET

Amount pavoble

Amount pn^nble

Amount paid

Amount PIvnble

VND

VND

VND

VND

VND

236211,561

105221,015,128

103,015312,132

1341,714357

236.21I.XI

31,814,262,4)3

30,508,750,407

1,541,714,557

73,406,752,633

73406,752,635

32,734302300

31200,003249

-

11,916,777,779

51303,806,860

52,487,605364

10,702221,919

806,884,860

22258,002233

20,446,954,853

2,617,932240

331,064209

331,064,209
5384,470,700

142232,644
142,232,644

VAT
•OutptaVAT
- VAT on imports
Import duty
Corporate income tax

31/12/2015

Movement in venr

31/12/2014
Amount r^ceivable

1,524,399,141
120,757356

Environmental tax
Land rental tee
Other taxes

55,023376

41,843,412

5,730,883,30!

Personal income tat

55,023,376

41,843,412

3,421,455,65)

3J66.043.051

2,318,427,64)

2.318,427,64)

Other taxes
Total

1,700,179373

13301,717312

217,678,164,128

213375300307

15,004,101360


PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Separate financial statements
For the year ended 31 December 2015

Floors 18 & 19,229 Tay Son, Nga Tu So Ward
Dong Da District, Hanoi, S.R. Vietnam

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

13,

INCREASES, DECREASES IN TANGIBLE FIXED ASSETS
Bnildiags,

Machinery,

Motor vehicles,

Office

structures

equipment

transmission equipment

equipment

Total

VND

VND

VND

VND

VND

93.07T3O0.tJl

104,157,668394

35321305,068

10337393,606

243394368,199

118,816,959

2,600,363300

1,225,927,816

30,710,580,000

2,795,947373

797,037,182

35,529,492371

(1344,246,780)

(1,363,086,707)

(616,602,123)

(3,523,935,610)

135^24365314

37354365,634

10,718,028,665

278319305,019

56.740,966.941

53,877,487,141

22392372355

9325,061,118

142336387,755

6,939,120,918

18,153332,343

3,454,511,642

804385,432

29351350,335

(1344246,780)

(1,173,877,896)

(616,602,123)

(3,334,726,799)

COST
As at 01/01/2015
Transfer from constmctioii

Purchases
Disposals

As at 31/12/2015

94,422,045,406

2,719,180,159

ACCUMULATED DEPRECIATION
As at 01/01/2015
Charge fer the year
Disposals

34,758,412

-

63,645329,447

70321331,116

24,673,606301

9312,744,427

1683533H3

As at 31/12/2015

30,776,715,959

65,403,034,198

12381,159333

1305,284338

109,966,193,728

As at 31/12/2014

36336333,690

50380,181,753

13,428332313

1312,532388

101357380,444

(34,758,412)

Reclassification

As at 31/12/2015
NET BOOK VALUE

As at 31 December 2015, the cost of the Cotpotation's tangible fixed assets includes VND

77,837,751,757 (31 December 2014: VND 70,431,091,042) of assets which have been fully depreciated
but are still in use.

INCREASES, DECREASES IN INTANGIBLE ASSETS
Computer
software

COST
As at 01/01/2015

3,814.284,398

As at 31/12/2015

3,814,284398

ACCUMULATED AMORTISATION
As at 01/01/2015

2,423,024,165

Charge for the year

1,258,704,852

As at 31/12/2015
NET BOOK VALUE
As at 31/12/2015
As at 31/12/2014


PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Separate Rnancial statements

Floors 18 & 19,229 Tay Son, Nga Tu So Wani

Fortheyearended31 December 2015

Dong Da District, Hanoi, S.R- Vietnam

NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Contiaued)FORM B 09-DN
These notes are an integral part ofand should be read in conjunction with the accompanying separate financial statements

15.

LONG-TERM ASSETS IN PROGRESS

Construction in progress

535,361,914

115,007,871,333

78,104,726,078

Expansion ofThuong Ly lubricantfactory

35,877.155,092

30,223,458,886

Expansion o/Nha Be lubricant factory

63,686,924,701

31,976,990,347

-Purchase
- Construction in progress

In which:

Da Nang lubricant warehouse

7,263,873,231

7,263,873,231

Others

8,715,280,223

8,640,403,614

115,543,233,247

78,104,726,078

SHORT-TERM TRADE PAYABLES
AmoBntaMttobe

VND

VND

VND

VND

Elf l.ubnlianl Paris

4240340,290

4240,540,290

22,161,834,166

22161,834,166

DUCAT Chemical Co, Lid.

4276,633,088

4276,633,088

6,818210,638

6,818210,638

CastmlBPPETCOLtd
Others

Trade paytMes to related parties

(See details la Note 32)

2907,979,607

2,907,979,607

5,638307212

5,638307212

81,183,867,515

81,183,867,515

87583377,831

87,583377,831

92,609,020300

92,609,020500

122301,729347

4303,0883474,403,088,047

6523,136363

SHORT-TERM ACCRUED EXPENSES

VND
Canned lubricants sales support expenses

6,586,784,613

Overhaul expenses for fixed assets

1,927,632,698

Barrel lubricants promotion expenses
Others

717,805,840
61,380,000

24,798,584

9393,603,151

24,798,584

OTHER SHORT-TERM PAYABLES
31/12/2015
31/12/2014
VNDVND
Dividends payable

3,383,504,650190,312,232,000

Social insurance, health insurance,

1382,366,757947,687,141

unemployment insurance and trade union

hinds
Others

3350,864,6694,301392,835
8,016,736,076195561311,976


3

1
sa

p^

Si-

1 *1

I

;Ifo I •
>^ m

.

S "S S X > .



PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Separate financial statements

Floors 18 & 19,229 Tay Son, Nga Tu So Ward

For the year ended 31 December 2015

Dong Da District, Hanoi, S.R. Vietnam

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

20.

OWNERS' EQUITY (Continued)
(i) According to Annual General Meeting of Shareholders Resolution No. 01/NQ-PLC-DHDCD dated
20 April 2015, the Corporation's profit of 2014 was distributed to investment and development fund
with the amount of VND 40,541,516,040; distributed to management bonus with the amount of

VND 852,559,558 (in which: VND 583,993,333 distributed from retained earnings of the
Corporation and VND 268,566,225 from retained earnings of Asphalt Petrolimex Co., Ltd - die
Corporation's subsidiary); distributed to Bonus and Welfare fund with the amount of VND
14,676,729,271 (in which: VND 7,567,633,282 distributed to the Corporation's Bonus and Welfere

fund and VND 7,109,095,989 to the subsidiaries') and 2014 dividend payment was declared with the
amount of VND 21,077,869,200.
(ii) On 20 April 2015, the Corporation's General Shareholders' Annual Meeting released its Resolution
No. 01/NQ-PLC-DHDCD approving die plan of issuing bonus shares to existing shareholders.

On 24 August 2015, Decision No. 546/QD-SGDHN issued by the General Director of Hanoi Stock
Exchange approved the listing of additional shares of the Corporation. Accordingly, 10,538,002
bonus shares amounting to VND 105,380,020,000 (par value of VND 10,000/share) was issued from
die development and investment fund.

(iii) Represents the amount of 2015 interim dividends ccording to Decision No. 20/NQ-PLC-HDQT
dated on 25 November 2015. Accordingly, the interim payout ratio was 30%, corresponding to VND
3,000/share.
Owners' contributed capital of die Corporation as at 31 December 2015 is as follows:

Based on the 17th amended

Capital contributed as at

Business Registration Certificate

Vietnam National Petroleum

638,892,590,000

79.07%

638,892,590,000

555,552,420,000

Group
Other shareholders

169,095,800,000

20.93%

169,095,800,000

147,055,950,000

807,988390,000

702,608370,000

Number of shares:

31/12/2015

31/12/2014

80,798,839

70,260,837

1,273

1,273

80,797,566

70259,564

• Number of shares issued to the public
+ Common shares
- Number of treasury shares
+ Common shares
- Number of outstanding shares in circulation
+ Common shares

Each ordinary share has par value of VND 10,000/share.


PETHOLIMEX PETROCHEMICAL CORPORATION - JSC
Floors 18& 19,229Tay Son,NgaTuSo Ward
Dong Da District, Hanoi, S.R. Vietnam

Separate financial statemeats

For the year ended 31 December 2015

NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)FORM B 09-DN
These notes are an integral part ofand should be read in conjunction with the accompanying separate financial statements

OFF-BALANCE SHEET ITEMS

Foreign currencies

United States Dollar (USD)
Euro (EUR)

172,261.65

192.96

REVENUE FROM GOODS SOLD

Gross sales
In which:

Lubricant
Others

Sales from related parties

(See details ia Note 32)

1,876,972,709,312

2,052,778,488,112

8,681,511,583

26,114,116,339

1,885,654,280,895

2,078,892,604,451

1,204,791,215,452

1,103,149,752,853

2015
VND

2014
VND

1,379,139,931,247

1,587,174,428,117

6,712,532,715

24,153,049,521

1,385,852,463,962

1,611,327,477,638

2015
VND

2014
VND

1,183,889,466,756
69,488,440,037
30,609,955,187
26,662,348,844
175,878,145,389

1,342,786,653,929
64,983,670,857
22,585,079,489
27,983,842,528
160,476,851,810

COST OF GOODS SOLD

Lubricant
Others

24.

PRODUCTION COST BY NATURE

Raw materials and consumables
Labour
Depreciation and amortization
Out-sourced services
Other monetary expenses

1,486,528^56,2131,618,816,098,613

FINANCIAL INCOME

Foreign exchange gain arising from foreign currency

VND

VND

5,622,502,789

2,542,203,929

payment transactions
Bank interest

Profits received from subsidiaries

878,315,357

698,272,912

175,911,771,822

67,261,428,858

182,412,589.968