FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED 31 DECEMBER 2010 VNDIRECT SECURITIES JOINT STOCK COMPANY
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
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VNDIRECT SECURITIES JOINT STOCK COMPANY
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.
VNDIRECT SECURITIES JOINT STOCK COMPANY
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
Full names Position Appointing date Resigning date
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
Full names Position Appointing date Resigning date
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
VNDIRECT SECURITIES JOINT STOCK COMPANY
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
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 (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
This statement should be read in conjunction with the notes to the financial statements 8
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 (cont.)
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
This statement should be read in conjunction with the notes to the financial statements 9
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
This statement should be read in conjunction with the notes to the financial statements 10
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 (cont.)
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
This statement should be read in conjunction with the notes to the financial statements 11
VNDIRECT SECURITIES JOINT STOCK COMPANY Form B02 - 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
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
This statement should be read in conjunction with the notes to the financial statements 11
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
Prepared on 28 March 2011
Chief Accountant Acting General Director
___________________ ____________________
Nguyen Ha Ninh Nguyen Hoang Giang
This statement should be read in conjunction with the notes to the financial statements 11
VNDIRECT SECURITIES JOINT STOCK COMPANY Form B03 - 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
CASH FLOW STATEMENT
(Under the indirect method)
Year 2010
Unit: VND
ITEMS Current year Previous year
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)
This statement should be read in conjunction with the notes to the financial statements 12
VNDIRECT SECURITIES JOINT STOCK COMPANY Form B03 - 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
Cash flow statement (cont.)
ITEMS Current year Previous year
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
Chief Accountant Acting General Director
___________________ ____________________
Nguyen Ha Ninh Nguyen Hoang Giang
Prepared on 28 March 2011
This statement should be read in conjunction with the notes to the financial statements 13
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
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).
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 15
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
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 16
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.
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 17
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.
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 18
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.
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 19
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:
Ending balance Beginning balance
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
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 20
4. Prepayments to suppliers
Ending balance Beginning balance
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
Ending balance Beginning balance
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.
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 21
6. Other receivable
Ending balance Beginning balance
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
Ending balance Beginning balance
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
Ending balance Beginning balance
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
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 22
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
Beginning balance 2,663,691,284 10,836,572,709 13,500,263,993 3,364,052,704
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
Beginning balance 4,246,276,859 12,189,301,124 16,435,577,983 18,865,310,730
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
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 23
13. Funds to Payment Assistance Fund
Current year Previous year
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
Ending balance Beginning balance
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.
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 24
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
Ending balance Beginning balance
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.
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 25
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:
Current year Previous year
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
Ending balance Beginning balance
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
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 26
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
Ending balance Beginning balance
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
Ending balance Beginning balance
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
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 27
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
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 28
Shares
Ending balance Beginning balance
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
Current year Previous year
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
Current year Previous year
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
Current year Previous year
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
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 29
4. Other expenses
Current year Previous year
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
Current year Previous year
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:
Current year Previous year
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.
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 30
6. Staff’s income
Current year Previous year
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:
Current year Previous year
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:
Ending balance Beginning balance
Liabilities receivable 448,376,000
Loans payable 57,650,000,000 49,700,000,000
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 31
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)
Current year Previous year
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
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 32
Current year Previous year
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)
Current year Previous year
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
VNDIRECT SECURITIES JOINT STOCK COMPANY
Address: No. 1, Nguyen Thuong Hien Street, Nguyen Du Ward, Hai Ba Trung District, Hanoi City
FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2010
Notes to the financial statements (cont.)
These notes form an integral part of and should be read in conjunction with the financial statements 33
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.
Prepared on 28 March 2011
Chief Accountant Acting General Director
___________________ ____________________
Nguyen Ha Ninh Nguyen Hoang Giang