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FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED 31 DECEMBER 2010

VNDIRECT SECURITIES

JOINT STOCK COMPANY

1

VNDIRECT SECURITIES JOINT STOCK COMPANY

CONTENTS

Page

1. Contents 1

2. Report of the General Directors 2 - 4

3. Auditor’s report 5 - 6

4. Balance sheet as of 31 December 2010 7 - 10

5. Income statement for the year 2010 11

6. Cash flow statement for the year 2010 12 - 13

7. Notes to the financial statements for the year 2010 14 - 35

**************************


2

REPORT OF THE GENERAL DIRECTORS

The General Directors of VNDirect Securities Joint Stock Company (hereinafter called “the Company”)

present this report together with the audited financial statements for the fiscal year ended 31 December

2010.

Business highlights

VNDirect Securities Joint Stock Company operates in accordance with the Business Registration

Certificate No. 0103014521 dated 7 November 2006 granted by Hanoi Authority for Planning and

Investment. The Company has carried out the securities business activities in accordance with the

Business License No. 101/UBCK–GP dated 31 December 2007 granted by the State Securities

Commission.

During the operation course, the Company has changed the Business Registration Certificates 8 times

and has been additionally granted the Securities Business License No. 301/UBCK-GPDCCTCK by the

State Securities Commission.

Charter capital as in the 8th amended Securities Business License is VND 999,990,000,000.

Head office

Address : No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi

Tel. : 04 3941 0510

Fax : 04 3941 0500

Website : www.VNDirect.com.vn

Tax code : 0 1 0 2 0 6 5 3 6 6

Affiliates:

Branch in Ho Chi Minh City

Address : No. 51 Ben Chuong Duong, District 1, Ho Chi Minh City

Tel. : 08 9 146 925

Fax : 08 9 146 954

Branch in Da Nang

Address : No. 122 Quang Trung, Thach Thang Ward, Hai Chau District, Da Nang City

Tel. : 0511 382 1111

Fax : 0511 389 8616

Branch in Nghe An

Address : No. 72 Ly Thuong Kiet, Vinh City, Nghe An

Tel. : 0388 601 327

Fax : 0388 601 324

Operations of the Company: Securities brokerage, finance advisory and securities investment,

securities self trading, securities underwriting and securities custody.


REPORT OF GENERAL DIRECTORS (Cont.)

3

Financial position and business results

The financial position as of 31 December 2010, the business results and the cash flows for the fiscal

year then ended of the Company have been expressed in the financial statements attached to this report

(from page 7 to page 35).

Subsequent events

The General Directors of the Company hereby ensure that there have been no events from 31 December

2010 to the date of this report which need to make adjustments on the figures or the disclosures in the

financial statements.

Board of Management and Executive Officers

The Board members and the Executive Officers of the Company during the year and until the date of

this report include:

The Board of Management

Full names Position Appointing date Resigning date

Ms. Pham Minh Huong Chairman 11 November 2006

Ms. Nguyen Ngoc Thanh Member 11 November 2006

Ms. Dau Thuy Ha Member 11 November 2006

Ms. Tran Thi Phuong Loan Member 25 December 2008 6 January 2010

Mr. Vu Hien Member 26 March 2009

Mr. Pham Duy Hieu Member 7 January 2010

The Control Board


Ms. Hoang Thuy Nga Manager 6 January 2010

Ms. Tran Thi Phuong Loan Manager 11 November 2006 6 January 2010

Mr. Nguyen Quang Huy Member 6 January 2010 8 December 2010

Ms. Nguyen Thi Hien Member 6 January 2010

The Executive officers


Ms. Pham Minh Huong General Director 20 March 2009 6 October 2010

Mr. Nguyen Hoang Giang Acting General Director 6 October 2010

Mr. Mai Huu Dat Deputy General Director 1 June 2010

Mr. Nguyen Duc Thinh Deputy General Director 1 December 2009 16 August 2010

Ms. Nguyen Ha Ninh Chief Accountant 2 January 2009

Auditor

Auditing and Consulting Co., Ltd. (A&C) has performed the audit on the financial statements for the

fiscal year ended 31 December 2010, and A&C has expressed their willingness to be appointed as the

Company’s external auditor in the coming years.

5

No. 136/2011/BCTC-KTTV-KT2

AUDITOR’S REPORT

ON THE FINANCIAL STATEMENTS FOR THE YEAR 2010

OF VNDIRECT SECURITIES JOINT STOCK COMPANY

THE SHAREHOLDERS, THE BOARD OF MANAGEMENT AND THE GENERAL DIRECTORS


We have audited the financial statements for the year 2010 of VNDirect Securities Joint Stock

Company including the balance sheet as of 31 December 2010, the income statement, the cash flow

statement and the notes to the financial statements for the fiscal year then ended, which were prepared

on 28 March 2011, from page 7 to page 35.

The preparation and the presentation of these financial statements are the responsibility of the

Company’s General Directors. Our responsibility is to express an opinion on these financial statements

based on our audit.

Audit background

Our audit is conducted in accordance with the Vietnamese Auditing Standards. These standards require

that we plan and perform the audit procedures to obtain a reasonable assurance that the financial

statements are free from material mistakes. The audit is developed on the basis of our performing the

sampling method as well as applying the necessary examinations and tests of evidences supporting the

amounts and the disclosures in the financial statements. The audit also includes our assessing the

Company’s compliance with the prevailing accounting standards and system, the accounting principles

and methods applied, the material estimates and judgments of the Company’s General Directors as well

as our evaluating the overall presentation of the financial statements. We believe that our audit has

provided reasonable bases for our opinion.

Auditor’s opinion

In our opinion, the financial statements referred give a true and fair view, in all material respects, of the

financial position as of 31 December 2010, the business results and the cash flows for the fiscal year

then ended of VNDirect Securities Joint Stock Company in conformity with the prevailing Accounting

Standards and System of securities companies as well as other related regulations.

Without qualifying our opinion above, we would like to draw the readers’ attention to Notes IV.6 and

V.5 in the notes to the financial statements regarding the payment guarantee for purchasing securities

of the Company as follows:

As of 31 December 2010, the balance of payment guarantee for purchasing securities of the Company

was VND 1,012,063,443,223 (being reflected in the item of “Receivable on activity of securities

exchanging”). Up to now, the Ministry of Finance has not issued any detailed regulations and guidance

on this issue for securities companies. By sampling examination of some big clients with the value of

VND 538,265,397,945, we realize that:

AUDITOR’S REPORT (cont.)

6

- The value of secured assets for the guarantee which was listed shares was calculated by the number

of mortgaged shares multiplying (x) the market prices as of 31 December 2010, there are 3 clients

whose value of secured assets is deficient by the amount of VND 11,413,127,154. A provision for

bad debts has been appropriated for this value.

- The value of secured assets for the guarantee which was unlisted shares was calculated by the

number of mortgaged shares multiplying (x) the prices revaluated by the Company as of 31

December 2010.

Until 28 March 2011, total value of payment guarantee for purchasing securities of the Company is

VND 661,605,941,890 (See Note VIII.1).

This report is made in Vietnamese and English of equal validity. The Vietnamese version will be the

original for reference when needed.

Director Auditor

________________________________ ________________________________

Nguyen Hoang Duc Cao Thu Hien

Auditor’s Certificate No. 0368/KTV Auditor’s Certificate No. 0803/KTV

Hanoi, 28 March 2011

VNDIRECT SECURITIES JOINT STOCK COMPANY Form B01-CTCK

Address: No.1, Nguyen Thuong Hien, Hai Ba Trung Dist., Hanoi Issued in accordance with the Circular No. 95/2008/TT-BTC

FINANCIAL STATEMENTS dated 24 October 2008 of the Ministry of Finance

For the fiscal year ended 31 December 2010

BALANCE SHEET

As of 31 December 2010

Unit: VND

ASSETS Code Note Ending balance Beginning balance

A - CURRENT ASSETS (100=110+120+130+140+150) 100 2,912,772,308,985 1,760,441,361,177

I. Cash and cash equivalents 110 V.1 1,144,120,749,064 762,628,411,589

1. Cash 111 1,144,120,749,064 762,628,411,589

2. Cash equivalents 112 - -

II. Short-term financial investment 120 586,655,746,655 501,983,399,035

1. Short-term investment 121 V.2 680,666,155,024 577,750,104,597

2. Provision for devaluation of short-term investment 129 V.3 (94,010,408,369) (75,766,705,562)

III. Short-term accounts receivable 130 1,178,712,162,897 494,289,010,995

1. Receivable from customers 131 - -

2. Prepayments to suppliers 132 V.4 8,549,443,053 1,317,234,581

3. Short-term inter-company receivable 133 - -

4. Receivable on activity of securities exchanging 135 V.5 1,180,585,475,191 478,737,046,960

5. Other receivable 138 V.6 4,391,347,436 14,234,729,454

6. Provision for short-term bad debts 139 V.7 (14,814,102,783) - 6. Provision for short-term bad debts 139 V.7 (14,814,102,783) -

IV. Inventories 140 4,894,041 -

V. Other current assets 150 3,278,756,328 1,540,539,558

1. Short-term prepaid expenses 151 V.8 2,105,309,624 1,054,837,806

2. VAT deductible 152 - -

3. Taxes and accounts receivable from the State budget 154 - -

4. Other current assets 158 V.9 1,173,446,704 485,701,752

This statement should be read in conjunction with the notes to the financial statements 7





Balance sheet (cont.)

ASSETS Code Note Ending balance Beginning balance

B - LONG-TERM ASSETS (200=210+220+240+250+260) 200 41,816,182,219 38,852,622,015

I. Long-term accounts receivable 210 - -

1. Long-term accounts receivable from customers 211 - -

2. Working capital in affiliates 212 - -

3. Long-term inter-company receivable 213 - -

4. Other long-term receivable 218 - -

5. Provision for bad debts 219 - -

II. Fixed assets 220 34,323,051,394 35,563,816,675

1. Tangible assets 221 V.10 14,009,403,538 16,435,577,983

Historical costs 222 34,306,988,341 29,935,841,976

Accumulated depreciation 223 (20,297,584,803) (13,500,263,993)

2. Financial leasehold assets 224 - -

Historical costs 225 - -

Accumulated depreciation 226 - -

3. Intangible assets 227 V.10 20,050,719,894 18,865,310,730

Historical costs 228 26,747,949,334 22,229,363,434

Accumulated depreciation 229 (6,697,229,440) (3,364,052,704)

4. Construction in progress 230 V.11 262,927,962 262,927,962 4. Construction in progress 230 V.11 262,927,962 262,927,962

III. Investment property 240 - -

Historical costs 241 - -

Accumulated depreciation 242 - -

IV. Long-term investments 250 - -

1. Investments in subsidiaries 251 - -

2. Investments in associates and joint ventures 252 - -

3. Long-term investments in securities 253 - -

- Securities ready to sell 254 - -

- Securities kept till the due date 255 - -

4. Other long-term investments 258 - -

4. Provision for devaluation of long-term 259 - -

financial investments

V. Other long-term assets 260 7,493,130,825 3,288,805,340

1. Long-term prepaid expenses 261 V.12 3,570,499,996 1,547,851,527

2. Deferred income tax assets 262 - -

3. Funds to Payment Assistance Fund 263 V.13 3,922,630,829 1,740,953,813

4. Other long-term assets 268 - -

TOTAL ASSETS (270=100+200) 270 2,954,588,491,204 1,799,293,983,192







CAPITAL SOURCES Code Note Ending balance Beginning balance

A - LIABILITIES (300=310+330) 300 1,713,038,172,892 1,257,884,726,389

I. Current liabilities 310 1,713,038,172,892 1,257,884,726,389

1. Short-term loans and debts 311 V.14 150,650,000,000 220,700,000,000

2. Payable to suppliers 312 V.15 178,496,390,293 1,949,380,898

3. Advances from customers 313 421,000,000 40,000,000

4. Taxes and other obligations to the State budget 314 V.16 33,992,253,704 48,726,646,692

5. Payable to employees 315 - -

6. Accrued expenses 316 V.17 10,701,062,587 8,652,457,575

7. Inter-company payable 317 - -

8. Payable on activity of securities exchanging 320 V.18 627,422,043,624 677,941,145,272

9. Dividends, bond principal and interest 321 V.19 193,225,201 1,284,670,778

payable on behalf of others

10. Payable to issuance agency of securities 322 V.20 3,518,608,000 2,942,265,000

11. Other accounts payable 328 V.21 707,643,589,483 295,648,160,174

12. Provision for current liabilities 329 - -

II. Long-term liabilities 330 - -

1. Long-term payable to suppliers 331 - -

2. Long-term inter-company payable 332 - -

3. Other long-term payable 333 - -

4. Long-term loans and debts 334 - -

5. Deferred income tax 335 - -

6. Provision for unemployment allowance 336 - -

7. Provision for long-term liabilities 337 - -

8. Provision for investor's compensation 339 - -

B - OWNER'S EQUITY (400=410+430) 400 1,241,550,318,311 541,409,256,803

I. Owner's equity 410 V.22 1,241,550,318,311 541,409,256,803

1. Investment capital 411 999,990,000,000 300,000,000,000

2. Share premiums 412 95,000,000,000 50,000,000,000

3. Owner's other capital 413 - -

4. Treasury stocks 414 (3,310,000) -

5. Differences on asset revaluation 415 - -

6. Foreign exchange differences 416 - -

7. Business promotion fund 417 - -

8. Financial reserved fund 418 32,656,202,831 22,140,925,680

9. Other funds 419 - -

10. Retained profit after tax 420 113,907,425,481 169,268,331,123

II. Bonus and welfare funds 430 - -

TOTAL CAPITAL SOURCES (440=300+400) 440 2,954,588,491,204 1,799,293,983,192







Items Code Ending balance Beginning balance

1. External lease fixed assets 001 - -

2. Valuable materials, certificates kept for others 002 - -

3. Assets deposited by others 003 - -

4. Bad debts already treated 004 - -

5. Foreign currencies 005 - -

6. Custody securities 006 2,817,740,260,000 1,163,185,050,000

In which:

6.1 Marketable securities 007 2,540,205,190,000 1,046,040,490,000

6.1.1 Marketable securities of custody members 008 176,760,350,000 100,811,580,000

6.1.2 Marketable securities of local members 009 2,336,086,500,000 932,811,930,000

6.1.3 Marketable securities of foreign customers 010 27,358,340,000 12,416,980,000

6.1.4 Marketable securities of other organisations 011 0 -

6.2 Marketable pause securities 012 210,448,070,000 116,315,340,000

6.2.1 01314,003,310,000

-

6.2.2 014196,439,240,000

116,309,820,000

6.2.3 0155,520,000

5,520,000

6.2.4 Marketable pause securities of other organisations 016 - -

OFF - BALANCE SHEET ITEMS

Marketable pause securities of custody members

Marketable pause securities of local customers

Marketable pause securities of foreign customers

6.2.4 Marketable pause securities of other organisations 016 - -

6.3 Mortgage securities 017 67,087,000,000 829,220,000

6.3.1 Mortgage securities of custody members 018 - -

6.3.2 Mortgage securities of local customers 019 67,087,000,000 829,220,000

6.3.3 Mortgage securities of foreign customers 020 0 -

6.3.4 Mortgage securities of other organisations 021 0 -

6.4 Securities hold in custody 022 0 -

6.5 Securities to be paid 027 0 -

6.6 Blockaded securities to be withdrawn 032 0 -

6.7 Securities to be dealed 037 0 -

6.8 Deposit securities to guarantee loans 042 0 -

6.9 Securities to fix dealing mistakes 047 0 -

7. Custody securities of unlisted public companies 050 0 -

8. Non custody securities of customers 082 0 -

9. Non custody securities of securities companies 083 1,606,233,433 89,728,280,000

10. Securities trusted and auctioned for others 084 60,845,000,000 62,530,400,000

Prepared on 28 March 2011

Chief Accountant 0 Acting Genral Director

__________________ ___________________ ____________________

Nguyen Ha Ninh 0 Nguyen Hoang Giang


VNDIRECT SECURITIES JOINT STOCK COMPANY Form B02 - CTCK




INCOME STATEMENT

Year 2010

Unit: VND

ITEMS Current year Previous year

1. Turnover 01 470,747,761,836 359,927,903,112

In which: -

Turnover from activity of securities brokerage 01.1 105,228,733,199 63,652,284,952

Turnover from investments in securities, 01.2 128,142,581,732 244,082,003,477

capital contribution

Turnover from securities issuance underwriting 01.3 - -

Turnover from securities issuance agency 01.4 - -

Turnover from consulting activity 01.5 4,254,613,418 2,651,083,465

Turnover from securities custody 01.6 - -

Turnover from trust and auction activity 01.7 288,638,120 -

Turnover from leasing assets 01.8 - -

Other turnovers 01.9 232,833,195,367 49,542,531,218

2. Deductions 02 - 22,947,218

3. Net turnover (10-01-02) 10 470,747,761,836 359,904,955,894

4. Operating expenses 11 VI.1 244,404,593,922 85,194,335,200

Code Note


4. Operating expenses 11 VI.1 244,404,593,922 85,194,335,200

5. Gross profit (20-10-11) 20 226,343,167,914 274,710,620,694

6. Administrative overheads 25 VI.2 84,887,179,093 47,575,852,161

7. Net profit (30-20-25) 30 141,455,988,821 227,134,768,533

8. Other income 31 VI.3 861,829,495 3,207,809,155

9. Other expenses 32 VI.4 1,313,153,313 2,449,754,697

10. Other profit (40=31-32) 40 (451,323,818) 758,054,458

11. Profit before tax (50=30+40) 50 141,004,665,003 227,892,822,991

12. Current corporate income tax 51 V.16 35,851,893,494 16,194,023,915

13. Deferred corporate income tax 52 - -

14. Profit after corporate income tax (60=50-51-52) 60 105,152,771,508 211,698,799,076

15. Basic earnings per share 70 VI.5 1,356 4,234


Chief Accountant Acting General Director

___________________ ____________________

Nguyen Ha Ninh Nguyen Hoang Giang






CASH FLOW STATEMENT

(Under the indirect method)

Year 2010

Unit: VND


I. Cash flows from operating activities

1. Profit before tax 01 141,004,665,003 227,892,822,991

2. Adjustments

- Depreciation of fixed assets 02 10,057,530,032 8,639,951,431

- Provisions 03 33,057,805,590 (30,106,252,035)

- Gain/ loss from unrealized foreign exchange differences 04 - -

- Gain/ loss from investing activities 05 (6,760,310) -

- Loan interest expenses 06 102,020,986,838 36,390,047,071

3. Operating profit before

changes of working capital 08 286,134,227,153 242,816,569,458

- Increase/ decrease of accounts receivable 09 (774,733,022,926) (594,563,433,944)

- Increase/ decrease of inventories 10 (4,894,041) -

- Increase/ decrease of accounts payable 11 541,494,179,129 784,554,809,894

- Increase/ decrease of prepaid expenses 12 3,073,120,287 180,535,818

Code Note

- Increase/ decrease of prepaid expenses 12 3,073,120,287 180,535,818

- Loan interests already paid 13 (99,966,471,069) (36,397,242,532)

- Corporate income tax already paid 14 (54,190,381,579) (3,500,000,000)

- Other gains 15 -

- Other disbursements 16 - (68,671,575)

Net cash flows from operating activities 20 (98,193,243,047) 393,022,567,119

II. Cash flows from investing activities

1. Purchases and construction of fixed assets

and other long-term assets 21 (8,889,732,265) (12,438,733,849)

2. Gains from disposal and liquidation of

fixed assets and other long-term assets 22 27,760,310 60,951,431

3. Loans given and purchases of

debt instruments of other entities 23 (57,528,681,332) -

4. Recovery of loan given and disposals

of debt instruments of other entities 24 7,672,000,000 -

5. Investments in other entities 25 - -

6. Withdrawals of investments in other entities 26 - -

7. Receipts of loans given, dividends and profit shared 27 13,465,943,809 -

Net cash flows from investing activities 30 (45,252,709,478) (12,377,782,418)






Cash flow statement (cont.)


III.Cash flows from financial activities

1. Gains from stock issuance and

capital contributions from shareholders 31 594,988,290,000 -

2. Repayments of capital contributions to owners and

re-purchase of stocks already issued 32 - -

3. Short-term and long-term loans received 33 356,598,800,000 661,588,333,333

4. Loan principal amounts repaid 34 (426,648,800,000) (457,140,920,000)

5. Payments for financial leasehold assets 35 - -

6. Dividends and profit shared to the owners 36 - (30,000,000,000)

Net cash flows from financial activitites 40 524,938,290,000 174,447,413,333

Net cash flows during the year 50 381,492,337,475 555,092,198,034

Beginning cash and cash equivalents 60 V.1 762,628,411,589 207,536,213,555

Effects of fluctuations in foreign exchange rates 61 - -

Code Note

Ending cash and cash equivalents 70 V.1 1,144,120,749,064 762,628,411,589


___________________ ____________________





Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City

FINANCIAL STATEMENTS


These notes form an integral part of and should be read in conjunction with the financial statements 14

NOTES TO THE FINANCIAL STATEMENTS

Year 2010

I. OPERATION FEATURES

1. Investment form : Joint Stock Company

2. Operating field : Trading securities

3. Main operations : Securities brokerage, securities self trading, trusted investment

portfolio management, securities investment consultation

4. Personnel

As of 31 December 2010, the Company had 283 employees (at the end of the previous year, the

Company had 220 employees).

II. FISCAL YEAR AND STANDARD CURRENCY UNIT USED IN ACCOUNTING

1. Fiscal year

The fiscal year of the Company is from 1 January to 31 December annually.

2. Standard currency unit

The standard currency unit used in accounting is Vietnam Dong (VND).

III. ACCOUNTING STANDARDS AND SYSTEM APPLIED

1. Accounting system applied

The Company has been applying the accounting system of securities companies issued together

the Circular No. 95/2008/TT – BTC dated 24 October 2008 of the Finance Minister and the

Circulars giving guidance on the implementation of accounting standards and system of the

Ministry of Finance.

2. Statement on the compliance with the Accounting Standards and System

The General Directors ensure to follow all the requirements of the prevailing Vietnamese

Accounting Standards and System of securities companies issued together the Circular No.

95/2008/TT – BTC dated 24 October 2008 of the Minister of Finance and the Circulars giving

guidance on the implementation of accounting standards and system of the Ministry of Finance in

the preparation of these financial statements.

3. Accounting form

The Company has been using the accounting form of general journal recording in the computer.

IV. ACCOUNTING POLICIES

1. Accounting convention

All the financial statements are prepared on the basis of accrued accounting (except for

information related to cash flows).





Notes to the financial statements (cont.)


2. Cash and cash equivalents

Cash and cash equivalents include cash on hand, cash in bank, cash in transit and short-term

investments of which the due dates can not exceed 3 months from the dates of the investments

and the convertibility into cash is easy, and which do not have a lot of risks in the conversion into

cash.

3. Principles of evaluation of fixed assets

Fixed assets are determined by their historical costs less accumulated depreciation. Historical

costs of fixed assets include all the expenses of the company to have these fixed assets as of the

dates they are ready to be put into use. Other expenses incurred subsequent to the initial

recognition are included in historical costs of fixed assets only if they certainly bring more

economic benefits in the future thanks to the use of these assets. Those which do not meet the

above conditions will be recorded into expenses during the period.

When a fixed asset is sold or disposed, its historical cost and accumulated depreciation are

written off, then any gain/loss arisen are posted into the income or the expenses during the

period.

Fixed assets are depreciated in accordance with the straight-line method over their estimated

useful lives. The depreciation years are as follows:

Fixed assets Years

Machinery and equipment 3 – 5

Office equipment 3 – 10

Management software 3 – 10

4. Financial investment

The Circular No. 95/2008/TT-BTC allows securities companies to record investments in

securities in accordance with either the original cost method or the reasonable value method.

Accordingly, the Company has selected the original cost method to record investments in

securities.

Trading securities

Trading securities are recorded at their original costs. Dividends and bond interest during the year

are recognized to decrease the costs of securities for the acrrued interest before the purchasing

date and to incease the turnover from investments for the interest commencing from the

purchasing date.

Costs of securities sold are determined in accordance with the instant weighted average method.

Provision for devaluation of trading securities

Provision for devaluation of trading securities is made for each particular type of securities in the

market and of which the market value decreases in comparison with the book value.

The market prices of listed securities are determined on the basis of reference to the matching

price (the average price for Hanoi Stock Exchange, the closing price for Ho Chi Minh Stock

Exchange) as of the balance sheet date.

The market prices of unlisted securities are determined on the basis of the average exchange price

in the market of the unlisted public companies (UPCom) for the companies which have registered







to trade in this market, or the average price on the basis of exchange price provided by at least 3

securities companies as of the balance sheet date for the companies which have not registered to

trade in the UPCom market.

For types of securities which have not had reference prices from the above sources, no provision

is appropriated.

Other financial investments

Other financial investments are recorded at their original costs.

When an investment is liquidated, the differences between net liquidation values and book values

are recorded into income or expenses during the period.

Provisions for loss of investments in other economic organizations are made when these

organizations suffer from loss (except for the loss according to the plan already determined in the

Company’s business budgets before making the investments) at the rate equivalent to the rate of

capital contribution of the Company in these organizations.

5. Re-purchasing and re-selling contracts

The assets which are sold out with the commitment of re-purchasing at a specific time in the

future (re-purchasing contracts) are not recorded to decrease in the financial statements. The

amount received in accordance with these re-purchasing contracts is recognized as a due debts in

the balance sheet and the difference between the selling price and the committed re-purchasing

price in the future is recognized as assets, or income to be transferred and allocated into the

business results during the duration of re-purchasing contract.

The assets which are purchased with the commitment of re-selling out at a specific time in the

future (re-selling contracts) are not recorded to increase in the financial statements. The amount

paid in accordance with these re-selling contracts is recognized as assets in the balance sheet and

the difference between the purchasing price and the committed re-selling price is recognized as

income, or payable accounts to be transferred and allocated into the business results during the

duration of re-selling contract.

6. Transaction of purchasing deposit securities

This is the transaction in which the Company allows customers to overdrawn purchase securities

when accounts of customers do not have enough money. Purchased securities are mortgaged for

the overdraft.

At present, there is no statutory document of the State giving guidance on the implementation of

transaction of purchasing deposit securities. The Ministry of Finance has issued the 2nd draft of

“Circular giving guidance for transaction of purchasing deposit securities”. The Company is

reviewing the contents of this draft to make suitable adjustments when the Ministry of Finance

officially issues the Circular.

7. Prepaid expenses

Prepaid expenses include expenses for tools, instruments already put into use, expenses for large

repair of fixed assets are allocated into expenses during the period in accordance with the straight

line method with the duration not over 2 years.







8. Accrued expenses

Accrued expenses are recorded based on reasonable estimates on the amounts payable for goods

and services already used during the period.

9. Sources of capital and funds

The Company’s sources of capital include:

� Investment capital: being recorded according to the amount accutally invested by shareholders.

� Share premiums: the difference between issuance price and face value.

Financial reserved funds are appropriated and used in line with the Company’s Charter.

10. Corporate income tax

Corporate income tax includes current income tax and deferred income tax.

Current income tax

Current income tax is the tax amount computed based on the taxable income. Taxable income is

different from accounting profit due to the adjustments of temporary differences between tax and

accounting figures as well as those of non-taxable or non-deductible income and expenses, losses

transferred.

Deferred income tax

Deferred income tax is the amount of corporate income tax payable or refundable due to

temporary differences between book values of assets and liabilities serving the preparation of the

financial statements and the values for tax purposes. Deferred income tax liabilities are

recognized for all the temporary taxable differences. Deferred income tax assets are recorded

only when there is an assurance on the availability of taxable income in the future against which

the temporarily deductible differences can be used.

Book values of deferred corporate income tax assets are considered at the balance sheet date and

will be reduced to the rates that ensure enough taxable income against which the benefits from a

part of or all of the deferred income tax can be used. Deferred income tax assets which have not

been recognized are considered at the balance sheet dates and recognized when it is certain to

have enough taxable income to use these assets.

Deferred income tax assets and deferred income tax liabilities are determined at the estimated

rates to be applied in the year when the assets are recovered or the liabilities are settled based on

the effective tax rates as of the balance sheet date. Deferred income tax is recognized in the

income statement. In the case that deferred income tax is related to the items of the owner’s

equity, corporate income tax will be included in the owner’s equity of the Company.







11. Recognition of turnover

Turnover is recognized when the Company will probably enjoy economic benefits certainly

determined. Turnover is determined in accordance with reasonable values of accounts received or

to be received less trade discounts, sales allowances and sales returns. The following detailed

conditions have to be satisfied to recognize turnover:

Turnover from service provision

Turnover from service provision are recognized when there are no uncertain factors related to

payments or additional costs. In case that the services are to be provided in many accounting

periods, the determination of sales in each period is done on the basis of the service completion

rate as of the balance sheet date.

Turnover from trading securities

Turnover from trading securities is determined basing on the difference between selling prices

(when receiving the notice of offsetting results of securities exchange from Securities Custody

Center) and average costs of securities.

Interests

Interests are recorded based on the term and the interest rates applied for each period.

Dividends and profit shared

Dividends and profit shared are recognized when the Company has the right to receive dividends

or profit from the capital contribution. Particularly, dividends received by shares are not

recognized into income but only followed with the increasing number.

12. Segment reporting

A business segment is a distinguishable component that is engaged in producing or providing

products, services and that is subject to risks and returns different from those of other business

segments.

A geographical segment is a distinguishable component that is engaged in producing or providing

products, services within a particular economic environment and that is subject to risks and

returns different from those of components operating in other economic environments.

13. Related parties

A party is considered a related party of the company in case that party is able to control the

company or to cause material effects on the financial decisions as well as the operations of the

company. A party is also considered a related party in case of together being controlled or

affected significantly.

In the consideration of relations among related parties, the nature of relations is paid more

attention than the legal form.

The transactions during the year with the related parties are presented in Note VIII.2.







V. ADDITIONAL INFORMATION ON THE ITEMS OF THE BALANCE SHEET

1. Cash and cash equivalents

Ending balance Beginning balance

Cash on hand

Cash in bank 515,960,582,434 84,663,952,131

Deposit of investors for securities trading 625,700,817,609 676,625,608,619

Deposit for offsetting securities trading 2,459,349,021 1,338,850,839

Total 1,144,120,749,064 762,628,411,589

2. Short-term investment

Situation of holding short-term securities and short-term investment is as follows:


Short-term investment in shares 630,809,473,692 554,157,537,451

Listed shares 446,776,972,599 259,304,083,006

Unlisted shares 184,032,501,093 294,853,454,445

Short-term investment in bonds 23,592,567,146

The Company’s bonds - 23,592,567,146

Other short-term investment 49,856,681,332

Loan to Minh Ngan Real Estate JSC. 42,784,681,332

Investment cooperation 7,072,000,000

Total 680,666,155,024 577,750,104,597

Situation of increase, decrease and presence of short-term investment in securities

Beginning balance 577,750,104,597

Increase during the year 1,294,267,496,434

Decrease during the year (1,241,208,127,339)

Ending balance 630,809,473,692

3. Provision for devaluation of short-term investment

Shares Listed Unlisted Total

Accounting book value 446,776,972,599 184,032,501,093 630,809,473,692

Market value 384,209,017,127 152,590,048,196 536,799,065,323

Provision to be appropriated as

of 31 December 2010 62,567,955,472 31,442,452,897 94,010,408,369

Provision already appropriated

as of 31 December 2009 16,831,130,404 58,935,575,158 75,766,705,562

Appropriation (reversal) of

the current year 45,736,825,068 (27,493,122,260) 18,243,702,808







4. Prepayments to suppliers


AFE Solutions Co., Ltd. 2,654,685,000 -

C&A Management Consulting Co., Ltd. 568,000,000 18,000,000

HCL Singapore Pte Ltd. 4,114,000,000 -

FPT Information System Co., Ltd. 192,432,000 192,432,000

Octech JSC. 114,480,000 -

ICA Oriental Technology Co., Ltd. 10,000,000 10,000,000

Others 895,846,053 1,096,802,581

Total 8,549,443,053 1,317,234,581

5. Receivable on activity of securities exchanging


Advances of selling securities for investors 99,696,563,780 131,773,693,792

Receivable on payment guarantee to purchase

securities of investors (*) 1,012,063,443,223 287,507,917,637

Receivable from securities self-trading 68,062,368,188 55,459,435,531

Receivable on consulting activity 52,000,000 -

Receivable from Repo contracts of securities 711,100,000 3,996,000,000

Total 1,180,585,475,191 478,737,046,960

(*) The Company has regulations on decision authority for payment guarantee, list of securities

which can be used for guarantee and equivalent margin rate. In fact, the Company offers favour

of margin rate to big customers. The process and procedures for payment guarantee and the

supervision are carried out in the software.

Values of secured assets which are values of shares mortgaged in the Company as of 31

December 2010 are determined as follows:

- The value of secured assets for the guarantee which was listed shares was calculated by the

number of mortgaged shares multiplying (x) the market prices as of 31 December 2010, there are

3 clients whose value of secured assets is deficient by the amount of VND 11,413,127,154. A

provision for bad debts has been appropriated for this value.

- The value of secured assets for the guarantee which was unlisted shares was calculated by the

number of mortgaged shares multiplying (x) the prices revaluated at the safest level by the

Company (lower than the book value) as of 31 December 2010. Details are as follows:

+ 5,588,000 shares of Tay Giang Cao Bang Mineral JSC. at the price of VND 10,000/share,

equivalent to the value of VND 55,880,000,000;

+ 2,800,000 shares of IPA Investments Group JSC. at the price of VND 7,000/share, equivalent

to the value of VND 19,600,000,000.







6. Other receivable


Receivable on loans to staff 1,887,800,000 1,887,800,000

Interest from loans to staff 75,975,333 75,975,333

Payment on behalf of IPAAM Company - 1,161,718,914

Receivable from Ms. Trinh Phuong Nhi due

to transferring money to wrong account 1,419,230,000 1,419,230,000

Estimated receipt from contracts of bank

interest rate assistance - 5,162,130,196

Receivable on securities purchasing right - 1,623,040,000

Receivable from IPA project 557,204,146 1,230,314,511

Others 451,137,957 1,674,520,500

Total 4,391,347,436 14,234,729,454

7. Provision for bad debts

This is provision for doubtful debts. Situation of fluctuations in provision for bad debts is as

follows:

Current year Previous year

Beginning balance - -

Additional appropriation 14,814,102,783 -

Refund of provision - -

Ending balance 14,814,102,783 -

8. Short-term prepaid expenses


Expenses for tools, instruments, office

stationery 891,037,668 799,119,607

Expenses for office repair 1,214,271,956 255,718,199

Total 2,105,309,624 1,054,837,806

9. Other current assets


Advances 308,455,274 334,030,177

Short-term deposits and mortgages 864,991,430 151,671,575

Total 1,173,446,704 485,701,752







10. Fixed assets

Machinery and

equipment

Office

equipment

Total tangible

fixed assets

Intangible

fixed assets

Historical costs

Beginning balance 6,909,968,143 23,025,873,833 29,935,841,976 22,229,363,434

New purchase 3,615,047,454 777,098,911 4,392,146,365 4,518,585,900

Disposal and liquidation (21,000,000) (21,000,000)

Ending balance 10,525,015,597 23,781,972,744 34,306,988,341 26,747,949,334

Depreciation


Depreciation during the year 2,101,093,701 4,708,749,324 6,809,843,025 3,333,176,736

Disposal and liquidation (12,522,215) (12,522,215)

Ending balance 4,764,784,985 15,532,799,818 20,297,584,803 6,697,229,440

Net book value


Ending balance 5,760,230,612 8,249,172,926 14,009,403,538 20,050,719,894

11. Construction in progress

Beginning

balance

Increases

during the year

Inclusion in

fixed assets

Ending

balance

Software for social network

"VNDirect community" 200,255,150 - - 200,255,150

Software for VNDirect

Virtual Stock Exchange 62,672,812 - - 62,672,812

Total 262,927,962 - - 262,927,962

12. Long-term prepaid expenses

Beginning

balance

Increases

during the year Allocation

Ending

balance

Expenses for tools,

instruments, office stationery 1,154,899,092 3,122,665,663 1,865,453,326 2,412,111,429

Expenses for asset repair 392,952,435 1,097,782,931 332,346,799 1,158,388,567

Total 1,547,851,527 4,220,448,594 2,197,800,125 3,570,499,996







13. Funds to Payment Assistance Fund


Initial funds 120,000,000 120,000,000

Additional funds annually 3,802,630,829 1,620,953,813

Ending balance 3,922,630,829 1,740,953,813

14. Short-term loans and debts


Loans from banks 93,000,000,000 150,000,000,000

Lien Viet Bank 100,000,000,000

Maritime Bank 50,000,000,000

Viet A Bank 93,000,000,000

Loans from other organizations and

individuals 57,650,000,000 70,700,000,000

PetroVietnam Finance Corporation 21,000,000,000

Loans from Mr. Vu Hien (*) 57,650,000,000 49,700,000,000

Total 150,650,000,000 220,700,000,000

(*) Loans from Mr. Vu Hien – the Board Member (the husband of the Board Chairman) in

accordance with the following contracts:

- Contract dated 2 December 2010 with the amount of VND 51 billion, the term of 3 months,

the interest rate of 17%/year;

- Contract dated 25 October 2010 with the amount of VND 6.65 billion, the term of 6 months,

the interest rate of 15.5%/year.







Details of increases/decreases of loans are as follows:

Loans from

banks

Loans from

individuals Total

Beginning balance 171,000,000,000 49,700,000,000 220,700,000,000

Increases during the year 204,795,000,000 151,803,800,000 356,598,800,000

Amount already paid during the year (282,795,000,000) (143,853,800,000) (426,648,800,000)

Ending balance 93,000,000,000 57,650,000,000 150,650,000,000

15. Payable to suppliers


IPA Investments Group JSC. 178,331,625,226 1,429,576,125

Thien Hung Construction Private Enterprise 130,488,450

DC Company - 41,752,075

Tan Quang Minh Company - 36,225,000

ADG National System Integration Corporation - 254,545,200

VTS Logistics Service JSC. - 100,952,459

Others 34,276,617 86,330,039

Total 178,496,390,293 1,949,380,898

16. Taxes and other obligations to the State budget

Beginning

balance

Amount

payable

Amount

already paid Ending balance

VAT on local sales 54,430,932 17,095,932,078 16,245,580,918 904,782,092

Corporate income tax 48,618,157,087 35,851,893,494 54,190,381,579 30,279,669,002

Personal income tax of

employees 54,058,673 2,088,864,976 2,058,927,517 83,996,132

Personal income tax of

investors 24,584,051,136 21,860,244,658 2,723,806,478

Other taxes 3,000,000 3,000,000 -

Total 48,726,646,692 79,623,741,684 94,358,134,672 33,992,253,704

Value added tax (VAT)

The Company has to pay VAT in accordance with the deduction method. Activities of securities

brokerage, securities self-trading, investment portfolio management, securities investment

consultation are not subject to value added tax. Other activities are subject to VAT at the rate of

10%.

Other taxes

The Company has declared and paid these taxes in line with the prevailing regulations.







Corporate income tax

The Company has to pay corporate income tax on taxable incomes at the rate of 25%.

Estimated corporate income tax payable during the year is as follows:


Total accounting profit before tax 141,004,665,003 227,892,822,991

Increase/decrease adjustments of accounting

profit to determine profit subject to corporate

income tax:

2,402,908,974 (41,998,558,303)

- Increase adjustments 15,868,852,783

Expenses not deductible to calculate tax 1,054,750,000

Provision for bad debts (temporary

taxable difference) 14,814,102,783

- Decrease adjustments (dividends and

profit shared) (13,465,943,809) (41,998,558,303)

Taxable income 143,407,573,977 185,894,264,688

Income exempted from tax

Losses of the previous years transferred (93,356,985,177)

Taxable income 143,407,573,977 92,537,279,511

Corporate income tax rate 25% 25%

Corporate income tax payable at the

common tax rate 35,851,893,494 23,134,319,878

Corporate income tax deducted (6,940,295,963)

Corporate income tax payable 35,851,893,494 16,194,023,915

Adjustment of corporate income tax payable

of the previous years

Total corporate income tax payable 35,851,893,494 16,194,023,915

17. Accrued expenses


Loan interest expenses, share repo 7,956,131,328 5,901,615,559

Brokerage commission 529,070,838 1,595,197,277

Transaction fee payable to Ho Chi Minh

Stock Exchange 640,316,517 565,790,431

Transaction fee payable to Hanoi Stock

Exchange 846,185,511 346,099,833

Estimated interest payable on contracts of

interest rate assistance 67,748,175

Expenses payable to Vietnam Securities

Depository 31,655,812

Transaction fee payable to transaction

agencies 26,383,933

Office expenses payable 729,358,393 117,966,555

Total 10,701,062,587 8,652,457,575







18. Payable on activity of securities exchanging

Including deposits of investors to pay securities exchange.

19. Dividends, bond principal and interest payable on behalf of others


Military Bank - 796,500,000

VOSCO - 235,920,000

IPA Investment Group JSC. 150,986,500 169,261,500

PetroVietnam Insurance Joint Stock

Corporation 12,390,200

Vietcombank 20,500,001 -

Dividends of other companies 9,348,500 82,989,278

Total 193,225,201 1,284,670,778

20. Payable to issuance agency of securities

Including payment of investors to realize the right of purchasing securities additionally issued

payable to issuance agency of securities.

21. Other accounts payable


Trade Union’s expenditure 165,250,535 41,240,717

Social insurance, health insurance payable 1,215,566 12,302,384

Deposits for brokerage contracts to purchase

bonds 706,611,554,658 180,362,247,995

Capital contribution of shareholders 104,357,500,000

Securities to arrive 9,739,377,833

Payable to investment trusters on selling

securities 754,925,881 137,507,139

Payable on deposits of investors for auction 65,444,995

Others 45,197,848 997,984,106

Total 707,643,589,483 295,648,160,174







22. Owner's equity

Statement of fluctuations in owner’s equity:

Owner’s

investment

capital Share premium Treasury

stocks Financial

reserved fund

Retained profit

after tax Total

Beginning balance of the previous year 300,000,000,000 50,000,000,000 9,710,457,727 359,710,457,727

Profit of the previous year 211,698,799,076 211,698,799,076

Appropriation of funds in the previous year 22,140,925,680 (22,140,925,680)

Sharing dividends of the previous year (30,000,000,000)

Ending balance of the previous year 300,000,000,000 50,000,000,000 22,140,925,680 169,268,331,123 571,409,256,803

Beginning balance of the current year 300,000,000,000 50,000,000,000 22,140,925,680 169,268,331,123 541,409,256,803

Increase of capital from share premium 50,000,000,000 (50,000,000,000)

Share of dividends by shares to increase

capital 149,998,400,000 (149,998,400,000) -

Increase of capital in cash during the year 499,991,600,000 95,000,000,000 (3,310,000) 594,988,290,000

Profit of the current year 105,152,771,508 105,152,771,508

Appropriation of funds in the current year 10,515,277,151 (10,515,277,151) -

Ending balance of the current year 999,990,000,000 95,000,000,000 (3,310,000) 32,656,202,831 113,907,425,481 1,241,550,318,311







Shares


Number of shares registered to be issued 100,000,000 30,000,000

Number of common shares already issued 99,990,000 30,000,000

Number of shares repurchased (331)

Number of outstanding common shares 99,989,669 30,000,000

Face value per outstanding share: VND 10,000/share.

VI. ADDITIONAL INFORMATION ON THE ITEMS OF THE INCOME STATEMENT

1. Operating expenses


Expenses for securities brokerage 24,559,071,392 14,981,786,186

Expenses for securities self-trading 97,707,680,885 63,878,044,588

Expenses for securities custody 50,709,390

Appropriation of provision for devaluation of

investment in securities 18,243,702,807 (30,106,252,035)

Expenses for using capital 102,020,986,838 36,390,047,071

Expenses for investment consultation 1,873,152,000

Total 244,404,593,922 85,194,335,200

2. Administrative overheads


Expenses for staff 32,182,228,461 19,576,642,907

Expenses for materials 1,154,604

Expenses for tools and instruments 256,105,791 2,584,829,115

Fixed asset depreciation 10,057,530,032 8,639,951,431

Taxes, fees and duties 780,146,735 640,337,696

Provision for bad debts 14,814,102,783

External services hired 26,797,065,291 15,277,213,769

Other expenses in cash 855,722,639

Total 84,887,179,093 47,575,852,161

3. Other income


Gain from disposal and liquidation of fixed

assets, tools and instruments 27,760,310 60,951,431

Gain from penalties as customers break

contracts 784,196,810 3,023,000,000

Others 49,872,375 123,857,724

Total 861,829,495 3,207,809,155







4. Other expenses


Net book value of liquidated assets 21,000,000 48,597,819

Penalty due to contract breach 2,800,650 2,368,000,000

Penalty due to administrative breach 100,000,000

Unemployment benefit 681,750,000

Treatment of bad debts 273,000,000

Others 234,602,663 33,156,878

Total 1,313,153,313 2,449,754,697

5. Basic earnings per share


Accounting profit after corporate income tax 105,152,771,508 211,698,799,076

Increase/decrease adjustments of accounting

profit to determine profit attributable to

ordinary equity holders

Profit distributed to ordinary equity holders 105,152,771,508 211,698,799,076

Average ordinary shares outstanding during the

year 77,533,383 49,999,840

Basic earnings per share 1,356 4,234

Average ordinary shares outstanding during the year are calculated as follows:


Ordinary shares outstanding at the beginning of

the year 30,000,000 30,000,000

Effects of ordinary shares repurchased (331)

Effects of 14,999,840 shares for dividend share

during the year 14,999,840 14,999,840

Effects of 5,000,000 bonus shares for current

shareholders 5,000,000 5,000,000

Effects of 10,000,000 ordinary shares

additionally issued on 8 January 2010 9,780,822

Effects of 39,999,160 ordinary shares

additionally issued on 22 July 2010 17,753,052

Average ordinary shares outstanding during

the year 77,533,383 49,999,840

In 2010, the Company has increased the charter capital from share premium and shared dividends

to increase capital from retained profit after tax. Therefore, basic earnings per share of the

previous year have been adjusted in accordance with these additionally issued shares. This

reversal adjustment has made the basic earnings per share of the previous year decrease from

VND 7,057 to VND 4,234.







6. Staff’s income


Total salary 29,421,851,322 18,079,022,834

Total bonus 4,348,891,665 -

Total income 33,770,742,987 18,079,022,834

Total staff 283 220

Average salary/month 8,663,678 6,848,115

Average income/month 9,944,271 6,848,115

VII. ADDITIONAL INFORMATION ON THE ITEMS OF THE CASH FLOW STATEMENT

Non-cash transactions during the year:

Bonus shares for current shareholders from share premium VND 50,000,000,000

Dividends by shares from retained profit after tax VND 149,998,400,000

VIII. OTHER INFORMATION

1. Subsequent events

The Company has actively recovered the balance of payment guarantee for purchasing securities

of investors. As of 28 March 2011, the balance of “Receivable on payment guarantee for

purchasing securities of investors” is VND 661,605,941,890.

2. Transactions with related parties

1.1. Transactions with key managers and related individuals

The key managers and related individuals include the Board Members, the General Directors, the

Chief Accountant and their relatives.

Transactions with the key managers and related individuals are as follows:


Related individuals

Mr. Vu Hien – the Board Member and the

husband of the Board Chairman

Loans to VNDS 151,803,800,000

VNDS refunded loans 143,853,800,000

As of the balance sheet date, the liabilities with Mr. Vu Hien were as follows:


Liabilities receivable 448,376,000

Loans payable 57,650,000,000 49,700,000,000







Incomes of the key managers are as follows:

Current year

Salary 2,509,380,000

Bonuses, allowances 681,333,333

Total 3,190,713,333

1.2. Transactions with other related parties

Other related parties of the Company include:

Related parties Relationship

(1) IPA Investments Group JSC. Leading shareholder

(2) IPA Securities Investment Fund Management Co., Ltd. Group company

Transactions during the year and liabilities as of the balance sheet date with other related parties

were as follows:

(1) IPA Investments Group JSC. (IPA)


IPA collected housing rental, office expenses 8,450,934,202 5,678,419,315

VNDS collected management fee, office expenses 74,754,810

VNDS allowed IPA to purchase deposited

securities 188,932,766,140 112,273,281,643

IPA paid for deposited securities 188,932,766,140 112,273,281,643

Interest of purchasing deposited securities during

the year 1,816,532,639 154,504,192

Interest of purchasing deposited securities already

paid 1,816,532,639

VNDS assumed interest rate assistance for IPA 8,000,000,000

VNDS refunded interest rate assistance 3,000,000,000

IPA received interest from interest rate assistance

agreements 443,430,887

IPA leased car to VNDS – Branch in Ho Chi

Minh City 180,000,000

Transaction of trading shares

(a) Shares of VNDS

Share of bonus shares of the year 2009 to IPA at

the ratio of 1/6 3,750,000 shares

Selling 5,000,000 shares at the price of VND

10,000/share in the course of share issuance for

current shareholders at the ratio of 1/6 to increase

charter capital from VND 300 billion to VND 450

billion (in which, the purchasing right of IPA is

valid for 3,750,000 shares, the purchasing right

transferred by IPA Financial One Member Co.,

Ltd. is valid for 1,250,000 shares)

50,000,000,000

Share of dividends of the year 2009 by shares to

IPA at the ratio of 1/3 3,352,000 shares








Selling 8,938,667 shares at the price of VND

10,000/share in the course of share issuance for

current shareholders at the ratio of 9/8 to increase

charter capital from VND 450 billion to VND

1,000 billion

89,386,660,000

(b) Shares of Viet A Bank

On 6 October 2010, VNDS assumed trust to sell

7,500,000 shares of Viet A Bank on behalf of IPA 82,500,000,000

(c) Shares of Cotec Construction JSC.

On 14 January 2010, VNDS purchased 266,058

shares of Coteccons from IPA 30,596,670,000

Liabilities

Payable on selling securities on behalf of others 177,500,000,000

Payable on other office expenses 831,625,226 1,429,576,125

Deposits in accounts of securities exchange 5,433,149,000 16,899,965,735

Total liabilities payable 183,764,774,226 18,329,541,860

(2) IPA Securities Investment Fund Management Co., Ltd. (IPAAM)


VNDS paid for expenses on behalf 1,914,410,425 1,066,995,144

IPAAM transferred deposit to VNDS to

implement brokerage contract of purchasing

80,000 bonds of the Government

4,000,000,000

VNDS refunded deposit for brokerage contract of

purchasing the Government bonds 4,000,000,000

VNDS paid interest arising from deposit for

brokerage contract of purchasing the Government

bonds

44,777,778

On 30 September 2010, VNDS sold 1,350,000

shares of Cement Finance JSC. to IPAAM

+ Selling price: VND 10,200/share 13,770,000,000

+ Cost: VND 15,500/share 20,925,000,000

Liabilities

Receivable on other office expenses 73,580,000 1,161,718,914

Total liabilities receivable 73,580,000 1,161,718,914







1.3. Other big transactions - OTC shares with significant impacts on the business results of the

year 2010:

� On 30 September 2010, the Company sold 5,000,000 shares of Sai Gon Green Development

Investment Land JSC. at the price of VND 19,000/shares, equivalent to the amount of VND

95,000,000,000, the interest of VNF 15,000,000,000.

� On 8 December 2010, the Company sold 6,422,312 shares of Viet A Bank at the price of VND

7,000/share, equivalent to the amount of VND 44,956,184,000, the loss of VND 19,327,943,500.

� On 22 November 2010, the Company sold 1,111,500 shares of PTI at the price of VND 8,000/

share, equivalent to the amount of VND 8,892,000,000, the loss of VND 10,590,313,500.

3. Segment information

The Company’s segment information is presented according to business segments and

geographical segments. The primary reporting format is the business segments.

Business segments:

The Company has had the major business segments as follows:

- Brokerage segment: including activities of securities brokerage for investors.

- Self-trading segment: including activities of trading securities in the market of the Company.

- Capital trading segment: mainly including receipt of interest from advances to investors for

selling and purchasing deposited securities.

Information on the business results, fixed assets, other long-term assets and values of non-cash

large expenses of business segments of the Company is presented in Appendix 1 from page 34 to

page 35 attached.

Geographical segments:

The whole operations of the Company only take place in Vietnamese territory.



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