PLC AUDITED CONSOLIDATED FINANCIAL STATEMENTS 2015

Deloitte.

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

AUDITED CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 31 December 2015


PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Floon 18& 19,229TaySon,NgaTuSoWard
Dong Da District, Hanoi, S.R. Vietnam

TABLE OF CONTENTS
CONTENTSPAGEIS)
STATEMENT OF THE BOARD OF DIRECTORS2
INDEPENDENT AUDITORS1 REPORT3
CONSOLIDATED BALANCE SHEET4-5

CONSOLIDATED INCOME STATEMENT6
CONSOLIDATED CASH FLOW STATEMENT7
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS8-37


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 consolidated financial statements for die year ended 31 December 2013.

THE BOARDS OF MANAGEMENT AND DIRECTORS
The members of the Boards of Management and Directors of the Corporation who held office during the year and
to die date of tiiis report are as follows:
Board of Management
Mr. Pham Ba Nhuan

Chairman

Mr. Nguyen Van Due
Mr. Nguyen Van Khanh

Member

Mr. Vu Van Chien

Member
Member

Mr. Ha Thanh Tuan

Member

Board of Directors
Mr. Nguyen Van Due

General Director

Mr. Le Quang Tuan

Mr. Ngo Due Giang

Deputy General Director
Deputy General Director

BOARD OF DIRECTORS' STATEMENT OF RESPONSIBILITY
The Board of Directors of the Corporation is responsible for preparing the consolidated 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 consolidated 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 consolidated financial statements;
•Prepare the consolidated 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 the purpose of properly preparing and
presenting the consolidated 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 consolidated 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
the Corporation and hence for taking reasonable steps for the prevention and detection of frauds and other
irregularities.
the Corporation has complied with the above requirements in preparing

ors,

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.
No.: y^ /VN1A-HH-BC

INDEPENDENT AUDITORS' REPORT
To:

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

We have audited the accompanying consolidated financial statements of Petrolimex Petrochemical Corporation JSC (the "Corporation"), prepared on 25 March 2016 as set out from page 04 to page 37, 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 summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Consolidated financial statements
Management is responsible for the preparation and fair presentation of these consolidated 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 consolidated 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 consolidated 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
consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the consolidated 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 consolidated 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 consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.

Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position
of the Corporation as at 31 December 2015, and its financial performance and its cash flows for the year then
t=TTC^S=apd^nrp with Vietname^e A^rremStandards, accounting regime for enterprises and legal

Le Anh Son
Deputy General Director
Audit Practising Registration Certificate

Auditor

No. 0030-2013-001-1

No. 1961-2013-001-1

Audit Practising Registration Certificate

For and on behalf of

DELOITTE VIETNAM COMPANY LIMITED
25 March 2016
Hanoi, S.R. Vietnam
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee
("DTTL"), 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.com/about for a more detailed description of DTTL and its member firms.


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

Consolidated financial statements

For the year ended 31 December 2015

Dong Da District, Hanoi, S.R. Vietnam

CONSOLIDATED BALANCE SHEET
As at 31 December 201S

FORM B 01-DN/HN
UnitVND

A CURRENT ASSETS

100

3379,138395353

2340307329350

L Cash and cash equivalents

110
111
112

1,335,175,091,027

087,093,480373

l.Cash
2. Cash equivalents
D. Short-term receivables
1.Short-term trade receivables
2.Shot-term advances to suppliers
3.Other shot-term receivables
4.Provision for shot-term doubtful debts
5.Deficits in assets awaiting solution

IIL Inventories
1.Inventories
2.Provision for devaluation of inventories

IV. Other short-term assets
1.Short-tenn prepayments
2.Value added tax deductibles
3.Taxes and other receivables from the State budget

130
131
132
130
137
139
140
141
149
ISO
1S1
152
153

5

7
8
9
10

290,467,800,098

391,697,080,873

1,044,707,203,529

495,390,400,000

1,083,329,443,916

1,015393391393

1,171,689,905,080

1,069,256,110,157

98,652,750,040

94,040,001348

15,770,945,598

15,031,683,007

(203,143,004,016)

(163,923,044,197)

358,867,214

282,134,718

922,995,218,226

1,018,703,082,471

940,545,345,279
(17,550,127,053)

1,018,703,682,471

37,638,821,584

-

11

6,400,487,321

19396368321
1,692314310

12

30,338,400,026
833,868,237

14,811324,614
2,793,029,691

B. NON-CURRENT ASSETS

200

772,185^42,770

037390342315

L Long-term receivables

210
210

319327,155
319,527,155

319327,155
319,527,155

430375,885342

341,971,141,413

429,221,763,287

1. Other long-term receivables
IL Hied assets
1.Tangible fixed assets
-Cart
-Accumulated depredation
2.Intangible assets
-Cart
-Accumulated amortisation
HI. Long-term assets in progress

1. Construction in progress
IV.Long-term financial investments
1.Investments in joint-ventures, associates

220
221
222
223
227
228
229
240
242

0
13

14

15

•

795,372,406,666

340,579,881,180
632,879,792.416

(360,750,043,379)

(292,299,911,236)

1,754,122,055
5,229,884,398

1,391,200333
3,814,284,398

(3.975,762,343)

(2,423.024,165)

175310359320

121378,011315

175,210,359,620

121,878611,215

01,047311,003

59309315314

250
252

0

70,557,950,000

70357,956,000

254

0

(9,510,444,917)

(11,288,940,486)

104,632,059370

113,857,747318

104,632,059,570

113,857,747318

4,151323,938,123

3378283372,073

2.Provision for impairment of long-term financial

1. Long-term prepayments

200
201

TOTAL ASSET (ZM-1M + 200)

270

V.Other long-term assets

11

The notes set out on pages 08 to 37 are an integral part ofthese consolidatedfinancial statements


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

Consolidated financial statements

For the year ended 31 December 2015

Dong Da District, Hanoi, S.R. Vietnam

CONSOLIDATED BALANCE SHEET (Continued)
As at 31 December 2015

FORMB01-DN/HN
UnitVND

C.LIABILITIES

388

3300,182323213

2376,751329395

L Current liabilities

2372332223313

2376,751329395

329,794,024371

1,022,052,813,462

14,876363,118

38317,139,714

36,153386,150

23304,964,193

59,039,779,773

53373,827,916

7.Short-term loans and obligations under finance leases

318
31!

312
313
314
315
319
320

8.Bonus and welfare funds

322

1.Short-tenn hade payables
2.Short-term advances from customers
3.Taxes and amounts payable to the State budget
4.Payables to employees
5.Short-term accrued expenses
6.Other current payables

II. Long-term liabilities
1. Long-term loans and obligations under finance leases

330
338

D.EQUITY

400

L Owner's equity

7.Retained earnings

410
411
412
414
415
418
420
421

-Losses accumulated to the prior year end
-Retained earnings of die current year

1.Owners' contributed capital
2.Share premium
3.Other owners'capita]
4.Treasury shares
5.Investment and development fund
6.Other reserves

TOTAL RESOURCES (44tN300+400)

16
12
17
18
19

19

20

12,243,564,796

323,154,104

12358300,086
2,510,796398364

197,629,430,864
1,150,190,991,729

(2,729,592,945)

(8,740,492,087)

27,750,000,000
27,750,000,000

.

1,151341,714310

1381331342378

1,151,141,714210

1,101331342,178

007,988390,000

702,608370,000

3,561,050,000

3361,050,000

466200,000

466200,000

(12,730,000)

(12,730,000)

232,943,693,904

297,782,197,864

20,463,604,691

20,463,604,691

421a

85,731,505,915
(485.815,578)

76,662,849,623

(485,824,446)

421b

86,217,321,493

77,148674,069

441

4,151323338,123

3378383372,073

Nguyen Quang Hung

Phuong Thao Hien

Nguyen Van Due

Preparer

Manager of Finance and

General Director

Accounting Department

Hanoi, 25 March 2016

The notes set out on pages 08 to 37 are an integral part ofthese consolidatedfinancial statements

5


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

Consolidated financial statements

For the year ended 31 December 2015

CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2015

FORMB02-DN/HN
Unit: VND

ITEMS

2015

2014

23

6216221226258

6208,161212,748

10

23

6216221226258

6208,161,412,748

4.Cost of sales

11

24

5,640,695,090,126

5,812294,116,051

5.Gross profit from goods sold (20=10-11)

20

1275226,136232

995,767296,697

6.Financial income

21

26

41283,458221

19,741,855,177

7.Financial expenses

27

158,611,185292

50288,284206

8.Selling expenses

22
21
25

9.General and administration expenses

26

10.Operating profit

30

Coda

Nota

01

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

1.Gross revenue from goods sold
2.Deductions

-In which: Interest expense

50,298,254,668

27,341,812,862

30

590,771228293

477219,230,717

30

148,358,732250

152,798,046,158

418268248218

335203290,793

(30=2(H<21-22H25+26
11.Other income

31

28

12,629,494,431

10,003,829201

12.Other expenses

32

29

7,972,986,369

1,631,310,406

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

40

4256208262

8272218295

14.Accounting profit before tax

50

423,624256280

343276,109288

95,014,937,387

76,526,612,819

328210219,493

266249,496269

4,067

3,121

(50=30+40)
15.Cunent corporate income tax expense

51

16.Net profit after corporate income tax

60

31

(60=50-51)
17.Bask earnings per share

Nguyen Quang Hung

Phuong Thao Hien

Nguyen Van Due

Preparer

Manager of Finance and

General Director

Accounting Department

Hanoi 25 March 2016
The notes set out on pages 08 to 37 are an integral part of these consolidatedfinancial statements

6


PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Consolidated financial statements

Floors 18& 19,229TaySon,NgaTuSoWard

For the year ended 31 December 2015

Pong Da District, Hanoi, S.R. Vietnam

CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 201S

FORM B 03-DN/HN
UnicVND

2015

2014

01

423,624,936,000

343J76.109.600

02
03
04

79,152,127,120
54,991,051,903
1,159,119,493

54,190,055,718
54,736,990,719

3,101,284,494

Interest expense

05
06

(28,390,070,961)
50,298,254,668

(12,761230,951)
27,341,812,862

3.Operating profit before movements in working capital

68

300,033,439,103

469,905,022,530

Changes in receivables

09
10
11

(119,555,770,129)
78,158,337,192
(726,627,578,954)

(58,475,443,938)
(143,023,013,099)
426,889,096283

12
14
15
17
20

35,451,094,239
(50,298,254,668)
(87,955,958,259)
(9,518,389,687)
(299,311,001,163)

(27,526,739,293)
(69,427,388,520)
(12,066,132,182)
300,190,090,733

1.Acquisition and construction of fixed assets and other long-

21

(218,378,053,011)

(181,549,457,694)

term assets
2.Proceeds from sale, disposal of fixed assets and other long-

22

577,399,130

95,318,182

term assets
3.Interest earned, dividends and profits received

27

27,334,277,771

10,633283,978

Net cash used in investing activities

39

(190,466,376,110)

(170,020,055,534)

33
34
36
40

50
60
61
70

6,536,399,465,818
(5,147,997,116,633)
(430,399,294,550)

3,852,906,639,285
(3,854,119,455,717)
(97,460,326,500)

930,003,054,633

(90,673,142,932)

448,025,597 J62

318,704,100289

8873)23^86,873

568230,087,155

ITEMS
L CASH FLOWS FROM OPERATING ACTIVITIES
1.Profit before tax

lodes

2.Adjustments for:
Depreciation and amortisation of fixed assets
Provisions
Foreign exchange loss arising from translating foreign
currency items

(Gain) from investing activities

Changes in inventories
Changes in payables (excluding accrued loan interest and
corporate income tax payable)
Changes in prepaid expenses and other assets
Interest paid
Corporate income tax paid
Other cash outflows
Net cash (used in^^generated by operating activities

1,842,696,974

IL CASH FLOWS FROM INVESTING ACTIVITIES

IH. CASH FLOWS FROM FINANCING ACTIVITIES
1.Proceeds from borrowings
2.Repayment of borrowings

3.Dividends and profits paid
Net cash generated by/(used in) financing activities
Net increase in cash (50=20+30+40)
Cash and cash equivalents at the beginning of the year

Effect of changes in foreign exchange rates
Cash and cash equivalents at the end of the year

^/^^^YSiS&^m.

59,299,429
,

887,093,486273

(70=50+60+01)

Nguyen QnangHung

Phuong Thao Hien

Preparer

Manager of Finance and

^Nguyen Van Due
General Director

Accounting Department
Hanoi, 25 March 2016
The notes set out on pages 08 to 37 are an integral part of these consolidatedfinancial statements


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

Dong Da District, Hanoi, S.R. VietnamFor the year ended 31 December 2015

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

1.GENERAL INFORMATION
Structure of ownership
Petrolimex Petrochemical Corporation - 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
the 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 who 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 713; in which: Petrolimex Petrochemical: 345,
Petrolimex Asphalt: 261, Petrolimex Chemical: 107 (31 December 2014: 692, in which: Petrolimex
Petrochemical: 352, Petrolimex Asphalt: 233, Petrolimex Chemical: 107).

Operating industry and principal activities
Operating industry and principal activities of die Corporation are to:

Trade and import, export lubricant, asphalt and chemicals (except for chemicals prohibited by the
Stare) 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 rest, consultancy and technical services
relating to die 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 die Board of Management,
the Corporation has decided to dissolve Petrolimex Petrochemical Corporation - JSC - Hai Phong Brach
since 24h 31 December 2014.

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
Floors 18 & 19,229 Tay Son, Nga Tu So WardConsolidated financial statements
Dong Da District, Hanoi, S.R. VietnamFor the year ended 31 December 2015

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

1.GENERAL INFORMATION (Continued)
The Corporation^s structure (Continued)
As at 31 December 2015, the Corporation has 02 subsidiaries and 02 associates. General information of

subsidiaries and associates of the Corporation is as follows:
Pbcerf rroportwnor ProportionInvested!
iKorpontin
aid opcratiw

ownerskip

ofvotingvilntuit Principal

interest pmnrhdd

31 December 201S activities

VND
Petrocimcx Asphut Conpmy

Hmoi.V^tnioi

100^

100%

250.000,000,000 Tndmg^UI

Pctroiimex Chcoikil Cornpmy

lira. Vat™

\m

IW.

I50,003.K.I)

Trlngdimal

Limiltd

Amdna
CM Engineering Cautmcdm Joint

23J

Hmd.Vianiii

4337,956,000 Ccastnictioo of transportation
wots

Stoi Company No. 810
VP Petrochonical Transport Jotot

Hmd.V-dnm

43.7W

43.78%

nmmm

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 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/TTBTC 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 Corporation's consolidated financial statements.

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 Corporation's financial year begins on 01 January and ends on 31 December.


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

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

3.ADOPTION OF NEW ACCOUNTING GUIDANCE
On 22 December 2014, the Ministry of Finance issued Circular No. 200/20 U/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.

4.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies, which have been adopted by the Corporation 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
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 consolidated 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.
Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Corporation and
enterprises controlled by the Corporation (its subsidiaries) up to 31 December each year. 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.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring die accounting
policies used in line with those used by the Corporation.
All significant inter-company transactions and balances between group enterprises are eliminated on
consolidation.

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

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


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

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 consolidatedfinancial statements

4.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Investments in associates
An associate is an entity over which the 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.

The results and assets and liabilities of associates are incorporated in these financial statements using the
equity method of accounting. Interests in associates are earned in the balance sheet at cost as adjusted by
post-acquisition changes in the Corporation's share of the net assets of the associate. Losses of an
associate in excess of the Corporation's interest in that associate (which includes any long-term interests
that, in substance, form part of the Corporation's net investment in the associate) are not recognised.
Where a group entity transacts with an associate of the Corporation, unrealised profits and losses are
eliminated to the extent of the Corporation's interest in the relevant associate.
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.

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 the
inventories to their present location and condition.
Net realisable value represents die 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
consolidated balance sheet date.
The evaluation of necessary provision fin 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 consolidated balance sheet date.


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

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

4.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tangible fixed assets and depredation

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 the straight-line method over their estimated useful lives as

follows:

2015
Years
Buildings and structures05 - 35
Machinery and equipment03-10
Motor vehicles06-17

Office equipment03 - 08
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, 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
consolidated 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 consolidated income statement using the
straight-line method in accordance with die current prevailing accounting regulations.


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

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 consolidatedfinancial statements

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

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

(a)the Corporation has transferred to die buyer the significant risks and rewards of ownership of die

goods;
(b)the 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 the transaction will flow to the Corporation;
and
(e)die 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 the applicable
interest rate.
Dividend income from investments is recognised when the Corporation's right to receive payment has
been established.

Foreign currencies
The Corporation applies the method of recording foreign exchange dif^^rences 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 consolidated
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 consolidated balance sheet date are not treated as part of distributable profit to
shareholders.

Borrowing costs
Borrowing costs are recognised in the consolidated 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 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 (including loss carried forward, if any) and it further excludes items
that are never taxable or deductible.

13


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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)FORM B 09-DN/HN
These notes are an integral part oj'and should be read in conjunction with the accompanying consolidated 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 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 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 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 Corporation intends to settle its current tax assets and liabilities on a net basis.
The determination of the tax currently payable 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.

VNDVNDr
Cash on hand
Demand deposits
Cash in transit

3,188,213,8212,265,165,176^

283,749,264,411385,692,901,280^
3,530,409,8663,739,020,417••

290,467,888,098391,697,086,873




PETROLIMEX PETROCHEMICAL CORPORATION - JSC
Consolidated 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 CONSOLIDATED FINANCIAL STATEMENTS (Continued)FORM B 09-DN/HN
These notes are an integral part ofand should be read in con/unction with the accompanying consolidatedfinancial statements

SHORT-TERM TRADE RECEIVABLES

Gia Anh Trade and Service Company Limited
Others

151,438,315,010

31,418,197,896

1,020,251,650,070

1,037,838,618,261

1,171,689,965,0801,069256,816,157
Trade receivables from rotated parties

(See details in Note 34)

OTHER SHORT-TERM RECEIVABLES

31/12/2014
(ReclsssiEed)

VND

VND

Advances

8,859,935,998

7,402,722,630

Interest income receivables

2,049,602,062

1,701,563,605

Devidend receivables

523,512,042

523,512,042

Short-term deposits

353,600,000

265,835,600

a.Current

968,883,618

Social and health insurance receivables

Others

3,984295,496

454,179,051
4,314,986,521

Total

15,770,945,598

15,631,683,067

319,527,155

319,527,155

319,527,155

319,527,155

Tax refund receivables

b.Non-current

Recoverable

Recoverable
Cost

Cost

149,628,898,945

63,285,503,977
7,184,891,043
2,439,828,232

VND
295,074,655,479
39,125,763,445
20,103,718,901
10,104,473,596
143,907,478,191

733,920,742863

530,777,678247

508316,089,612

VND

VND
448,721,068,321

From 1 year to under 2 years

448,721,068,321
12,227,375,991
103,314,989,993

From 2 years to under 3 years

20,028,409,613

Items
Under 6 months
Over 6 months to under 1 year

Over3years

9,146,386,674

VND
295,074,655,479
32280,856,583
11,181,144,200

3,086,965,263
2,768,823,890
344392,445,415

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

Consolidated financial statements
For the year ended 31 December 2015

Dong Da District, Hanoi, S.R. Vietnam

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 consolidatedfinancial statements

INVENTORIES

VNDVND

VND

Goods in transit

131,415,058,108

201,817,747,819

Raw materials

246,947,627,407

247,184,847,843

7,233,082,482

11,325,349,918

Tools and supplies
Work in progress

22,440,744,956

26,502,677,641

Finished goods

279,385,801,252

(4,070,433,349)

331,734,655,383

Merchandise

249,811,625,429

(13,479,693,704)

197,555,068,222

Other supplies

3,311,405,645

940,545,345,279

2,583,335,645
(17,550,127,053)

1,018,703,682,471

PREPAYMENTS

a)Short-term
Transportation expense

2,833,386,240

801,032,539

Unallocated tools and supplies

3,633,101,081

891,281,777

Investments in Mipec office area

66,998,940,608

68,401,449,811

Land rentals at Dinh Vu Industrial Park

18,048,114,909

18,612,118,500

Unallocated tools and supplies

7,403,762,208

7,353,040,428

Fixed assets maintenance expenses

3,744,238,677

3,964,627,314

Office interior

5,304,333,640

1,679,179,760

Transportation expense

2,672,915,682

2,486,911,987

459,753,846

11,360,419,718

111,098,546,891

115,550,061,834

b)Long-term

Advertising expenses and others

12.

TAXES AND AMOUNTS RECEIVABLE FROM/PAYABLE TO THE STATE BUDGET

Ite,

tentDiDsJtk.nl

[Vitfc.it Ik
teniDiopJit

Aaaulpiii

VND

VND

VND

VND

VND

VND

99273731!

2190,761201

400212,524

20,019,067,704
252,017325

94.0J4.M

332064209
22769202502

87,036,070,764
457247,739,094
12134,3923)0
96,593,069,067
6211,991,024
332,064209

212141,650
1,(95254

20,41957,015

12(8384,405

16,062990326
456,000331,540
33,209,9932249
07,955,950259
5245,(61,726

24200,42)20!
22258,002^33

164,0421m

2322,427,649

164,845,000

702792065,430

833368237

1, Output VAT

IVATonimxru
] .imjx^npmOuty

Afofwa^kowi^^
^.^tsjualraraiMDi

440,102100

1514,199,141

607212561
5641107

OUaiadtlplmilllb
T.Okrlm
7!. Envmmmtal pnxedkn tu
>.2.Olherums

TAI

164345,000

1(6004,0(0
1(4,145,100
2793,029,691

2204,964,193

20,446,954,151
2322427,649
691,114282019

I Piyihlemmk
odrftkjeir

Annul piyiblg tkgddlkjta

40372109

26172322*
2617932240
36,153206,150


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

Consolidated financial statements
For the year ended 31 December 2015

Dong Da District, Hanoi, S.R. Vietnam

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 consolidatedfinancial statements

INCREASES^ DECREASES IN TANGIBLE FIXED ASSETS
Buildup,

Machinery,Motor vehicles.Office

structureequipment transmteion equipment

COST
AsitOlffll/1015

295,269,246345

Transfer from construction

133,364,898,808 17357,796,166
10,796,820,000

2,190,477,188

632379,792315
126,493,635312

97,570,943,713

15,935^94^11

1325,927,816

33,411333286

6368391,811946,691,72841,852,444,648

-

(1,544,246,780)

(1,777,016,707)(616,602,123)(3,937,865,610)

(4,130,003246)

4302303346

•(72,500,000)

-(1,915,600,000)(1,915,600,000)

Other decrease

238393,034360

148,652393,919 18,490362,959

795372,406,666

Ai at 01/01/2015123380337334

82,776,194,724

73347327,831 11395351347

292399311336

Charge ftr the year32,017,528,693

28389,838,091

15379,836,273 1314,659315

77,701,862372

(1344,246,780)

(1387,807,896)

(3,748,656,799)

As it 31/12/2015

389336,115,128

ACCUMULATED DEPRECIATION

221,742329

(616,602,123)
(9,817,704)

Other decrease

(102,473,330)

(102,473,330)

155386,441,202

109,743528564

87,939,651,208

1331813117,405

366,150,643379

As at 31/12/2015

234549,673,916

118,549,506,096

60,713337,711

5,409315.554

429321,763387

As at 31/12/2014

1713188,4093111

103,511,655^73

59,417,27(1977

5362544319

340379381,180

As at 31/12/2015
NET BOOK VALUE

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

135,508,588,307(31 December 2014: VND 131,034,296,231) of assets whichhave been folly depreciated
but are still in use.

INCREASES, DECREASES IN INTANGIBLE ASSETS
Computer
software

COST
As at 01/01/2015

3,814,284,398

Additioa
As at 31/12/2015

1,915,600,000

5,7293184398

ACCUMULATED AMORTISATION
As at 01/01/2015

2,423,024,165

Charge for the year

1,450,264,848

Other decrease

As at 31/12/2015
NET BOOK VALUE

Aa at 31/12/2015
Aa at 31/12/2014

102.473,330

33175,762343


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

Consolidated nnancial statements

For the year ended 31 December 2015

Dong Da District, Hanoi, S.R. Vietnam

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 consolidatedfinancial statements

LONG-TERM ASSETS IN PROGRESS

Construction in progress

53,508,262,314
121,702,097,306

-Purchase
-Construction in progress

5,544,121,073
110,871,562,677
5,462,927,465

-Maintenance

In which:
Expansion ofThuong Ly lubricant factory

15,877,155,092

10,221,458,886

Expansion o/Nha Be lubricant factory

61,686,924,701

31,976,990,147

Land use right in Dinh Vu Industrial Zone

49,562,451,450

Da Nang lubricant warehouse

7,261.873,211

7,261,871,211

Expansion ofThuong Ly warehouse

4,611,695,064

62,287,945

Expansion ofNha Be warehouse

1,719,400,000

12,598,146,399

Expansion ofTho Quang warehouse

527,680,000

5,740,235,632

Dinh Vu warehouse

323,110,909
5.373,215.161

Office renovation

11,598,049,171

Others

175,210,359,620

8,640,403,614

121,878,611,215

SHORT-TERM TRADE PAYABLES

Amount able to be

Amount aHe to be

paidoH

Amount

paidoH

VND

VND

VND

49290263395

49290263,595

613222,100,911

683222,100,981

46,777,326,195

46,777326,195

48,017,127,352

48,017,127352

29,709,494349

29,709,494,349

HinHin Trading Pte, Ltd

19,307251317

19307251,317

61,811,024346

61,111,024346

Dinh Vu Industrial Zone ISC
DUCAT Chemical Co, Ltd.

14,861,735,435

14,168,735,435

4276,633,011

4276,633,081

6,811210,631

6,111210,631

Elf Lubrifiant Paris

4240,540290

4240,540290

22,161,134,166

22,161,134,166

CastrolBPPETCOLtd.

2,907,979,607

2,907,979,607

5,631307212

5,631307212

Othent

151,415,100,495

151,415,100,495

194314201,767

194,314208,767

Total

329,794,024371

329,794824371

1,022,052813,462

1322,052813,462

53371375818

53371875818

655886,401,795

655,086,401,795

Amount

VND

Petrolimex Singapore Pte Ltd

Shell Eastern Trading Pie, Ltd
Handsome Chemical Development Ltd

Short-term trade parables

Trade pavaMes to related partiet

(See details la Note 34)


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

Consolidated financial statements
For the year ended 31 December 2015

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

SHORT-TERM ACCRUED EXPENSES

VND
Canned lubricant sales support expenses

6,586,784,^13

Overhaul expenses for fixed assets

1,927,632,698

Barrel lubricant promotion expenses
Nha Be warehouse maintenance expenses

Others

717,805,840
2,302,068,460
709,273,185

323,154,104

12,243,564,796

323,154,104

OTHER SHORT-TERM PAYABLES

31/12/2015
VND

31/12/2014
VND

Dividends payable

3,383,504,650

190,312232,000

Social insurance, health insurance, unemployment

2,918,489,829

1,986,759,540

5,956205,607

5,330,439,324

12,258200,086

197,629,430,864

1^SUT^OC^ flnH trfluC II^IO^ IWlQS

Others


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