Audited Financial Statementswfile.pvi.com.vn/PVIFiles/Download/2012/BCTC tieng Anh part 2.pdf48 The Flame of Trust PVI FORM B 01-DN Balance Sheet As at 31 December 2011 The notes set

AuditedFinancial Statements

44 The Flame of Trust PVI

45PVI Annual Report 2011

Statement Of The Board Of General Directors

The Board of General Directors of PVI Holdings (“the Company”) presents this report together with the Company’s fi nancial statements for the year ended 31 December 2011.

1 | THE BOARDS OF MANAGEMENT AND GENERAL DIRECTORS

The members of the Boards of Management and General Directors of the Company who held offi ce during the year and at the date of this report are as follows:

Board of Management

Mr. Nguyen Anh Tuan Chairman

Mr. Ton Thien Viet Vice Chairman Mr. Bui Van Thuan MemberMr. Tran Van Kim Member (resigned on 15 April 2011)Mr. Nguyen Khuyen Nguon MemberMr. Tran Van Quy Member (appointed on 15 April 2011)Mr. Patrick Claude Choff el Member (appointed on 15 April 2011)

Board of General Directors

Mr. Bui Van Thuan General Director

Mr. Pham Khac Dung Deputy General DirectorMr. Nguyen Hoang Tuan Deputy General DirectorMr. Vu Van Thang Deputy General DirectorMr. Nguyen Ngoc MinhMr. Truong Quoc Lam

Deputy General Director Deputy General Director

Mr. Pham Anh Duc Deputy General Director


2 | BOARD OF GENERAL DIRECTORS’ STATEMENT OF RESPONSIBILITY

The Board of General Directors of the Company is responsible for preparing the fi nancial statements for the year ended 31 December 2011, which gives a true and fair view of the fi nancial position of the Company and of its results and cash fl ows for the year. In preparing these fi nancial statements, the Board of General Directors is required to:

Select suitable accounting policies and then apply them consistently;

Make judgments and estimates that are reasonable and prudent;

State whether applicable accounting principles have been followed, subject to any material departures disclosed and explained in the fi nancial statements;

Prepare the fi nancial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business; and

Design and implement an eff ective internal control system for the purpose of properly preparing and presenting the fi nancial statements so as to minimize errors and frauds.

The Board of General Directors of the Company is responsible for ensuring that proper accounting records are kept, which disclose, with reasonable accuracy at any time, the fi nancial position of the Company and that the fi nancial statements comply with Vietnamese Accounting Standards, Vietnamese Accounting System and prevailing relevant regulations in Vietnam. The Board of General Directors is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of frauds and other irregularities.

The Board of General Directors confi rms that the Company has complied with the above requirements in preparing these fi nancial statements.

For and on behalf of the Board of General Directors,

Bui Van Thuan

General Director

20 February 2012

Statement Of The Board Of General Directors (continued)


No.: 929/Deloitte-AUDHN-RE

Auditors’ Report

To: The Shareholders, the Boards of Management and General Directors PVI Holdings

We have audited the accompanying balance sheet as at 31 December 2011, the related statements of income and cash fl ows for the year then ended, and the notes thereto (collectively referred to as “the fi nancial statements”) of PVI Holdings (“the Company”), as set out from page 48 to page 73. The accompanying fi nancial statements are not intended to present the fi nancial position, results of operations and cash fl ows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Vietnam.

Respective Responsibilities of the Board of General Directors and Auditors

As stated in the Statement of the Board of General Directors on page 45, these fi nancial statements are the responsibility of the Company’s Board of General Directors. Our responsibility is to express an opinion on these fi nancial statements based on our audit.

Basic of opinion

We have conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance that the fi nancial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by management, as well as evaluating the overall fi nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

Opinion

In our opinion, the accompanying fi nancial statements give a true and fair view of, in all material respects, the fi nancial position of the Company as at 31 December 2011 and the results of its operations and its cash fl ows for the year then ended in accordance with Vietnamese Accounting Standards, Vietnamese Accounting System and prevailing relevant regulations in Vietnam.

Khuc Thi Lan Anh

Deputy General Director

CPA Certifi cate No. D.0036/KTV

For and on behalf of

DELOITTE VIETNAM COMPANY LIMITED

20 February 2012 Hanoi, S.R. Vietnam

Tran Duy Cuong

Auditor

CPA Certifi cate No. 0797/KTV

Deloitte Vietnam Company Limited

Floor 12, Building Vinaconex34 Lang Ha, Dictrict Dong DaHa Noi, VietnamĐT: +84 4 6288 3568Fax: +84 4 6288 5678www.deloitte.com/vn


FORM B 01-DN

Balance SheetAs at 31 December 2011

The notes set out on pages 52 to 73 are an integral part of these fi nancial statements

Unit: VND

ASSETS Codes Notes 31/12/2011 31/12/2010

A. CURRENT ASSETS (100=110+120+130+140+150) 100 2,419,615,837,352 4,650,480,740,255

I. Cash and cash equivalents 110 5 88,394,874,149 561,484,924,260

1. Cash 111 13,394,874,149 201,484,924,260 2. Cash equivalents 112 75,000,000,000 360,000,000,000

II. Short-term fi nancial investments 120 6 1,909,683,563,297 3,172,614,166,694

1. Short-term investments 121 2,019,244,806,144 3,205,446,950,907 2. Provision for diminution in value of short-term investments

129 (109,561,242,847) (32,832,784,213)

III. Short-term receivables 130 418,001,594,057 862,874,924,061

1. Trade accounts receivable 131 7 353,628,322,035 731,751,142,540 2. Advances to suppliers 132 64,959,720,527 92,590,931,857 3. Other receivables 135 16,384,051,969 60,737,841,161 4. Provision for short-term doubtful debts 139 (16,970,500,474) (22,204,991,497)

IV. Inventories 140 736,710,000 85,800,000

1. Inventories 141 736,710,000 85,800,000 V. Other short-term assets 150 2,799,095,849 53,420,925,240

1. Short-term prepayments 151 122,986,364 10,140,863,892 2. Value added tax deductibles 152 1,674,904,250 826,004,535 3. Other short-term assets 158 1,001,205,235 42,454,056,813

B. NON-CURRENT ASSETS (200=220+250+260) 200 3,304,998,414,385 1,802,621,718,182

I. Fixed assets 220 488,940,773,747 319,852,848,801

1. Tangible fi xed assets 221 8 20,656,446,723 46,047,206,340 Cost 222 43,485,541,982 112,220,314,737 Accumulated depreciation 223 (22,829,095,259) (66,173,108,397)

2. Intangible fi xed assets 227 9 16,882,722,787 43,328,011,151 Cost 228 26,805,160,500 52,335,778,511 Accumulated amortization 229 (9,922,437,713) (9,007,767,360)

3. Construction in progress 230 10 451,401,604,237 230,477,631,310 II. Long-term fi nancial investments 250 2,681,729,709,901 1,309,775,007,664

1. Investments in subsidiaries 251 11 1,960,000,000,000 - 2. Investments in associates 252 12 406,240,196,880 249,116,194,200 3. Other long-term investments 258 13 397,622,050,450 1,096,115,166,466 4. Provision for diminution in value of long-term

fi nancial investments259 13 (82,132,537,429) (35,456,353,002)

III. Other long-term assets 260 134,327,930,737 172,993,861,717

1. Long-term prepayments 261 14 134,327,930,737 164,081,910,726 2. Other long-term assets 268 - 8,911,950,991

TOTAL ASSETS (270=100+200) 270 5,724,614,251,737 6,453,102,458,437


FORM B 01-DN

Balance Sheet (Continued)As at 31 December 2011


Unit: VND

RESOURCES Codes Notes 31/12/2011 31/12/2010

A. LIABILITIES (300=310+330) 300 327,355,877,073 2,845,714,660,847

I. Current liabilities 310 327,098,246,323 2,843,441,552,997

1. Trade accounts payable 312 15 23,015,774,535 664,613,209,604 2. Advances from customers 313 - 4,491,878,000 3. Taxes and amounts payable to the State budget 314 16 4,486,778,131 19,173,956,209 4. Payables to employees 315 25,486,337,795 24,317,800,620 5. Accrued expenses 316 2,658,265,995 18,363,250 6. Other current payables 319 17 249,037,516,704 919,924,124,315 7. Short-term provisions 320 18 - 1,187,236,883,380 8. Bonus and welfare funds 323 22,413,573,163 23,665,337,619

II. Other liabilities 330 257,630,750 2,273,107,850

1. Other long-term payables 333 - 16,000,000 2. Provision for severance allowance 336 257,630,750 2,257,107,850

B. EQUITY (400=410) 400 5,397,258,374,664 3,607,387,797,590

I. Owner’s equity 410 5,397,258,374,664 3,607,387,797,590

1. Charter capital 411 19 2,129,471,520,000 1,597,103,640,000 2. Share premium 412 19 2,974,771,778,198 1,622,092,724,471 3. Treasury shares 414 19 (124,322,427,350) (14,854,448,300)4. Foreign exchange reserve 416 (101,655,857) (9,463,613,253)5. Investment and development funds 417 179,211,820,775 179,564,189,409 6. Other ower’s funds 419 - 36,870,953,284 7. Retained earnings 420 19 238,227,338,898 196,074,351,979

TOTAL RESOURCES (440 = 300+ 400) 440 5,724,614,251,737 6,453,102,458,437

OFF-BALANCE SHEET ITEMS

ITEMS Unit 31/12/2011 31/12/2010

1. Direct insurance contract of which liabilities not yet incurred VND - 1,143,289,786,656

2. Claim receivables from third parties VND - 30,222,950,562

3. Foreign currencies United States Dollar USD 15,564.19 5,685,240.54 European Currency Unit EUR 396.16 655.90

Bui Van Thuan

General Director

Phung Tuan Kien

Chief Accountant

20 February 2012


Income StatementFor the year ended 31 December 2011


Unit: VND

ITEMS Codes Notes 2011 2010

1 Gross sales 01 20 3,293,514,649,050 3,985,254,404,809

2 Deductions 02 21 259,999,491,954 315,623,408,923

3 Net sales (10 = 01 - 02) 10 3,033,515,157,096 3,669,630,995,886

4 Cost of sales 11 22 2,235,128,662,539 2,842,501,560,986

5 Gross profi t from sales (20=10-11) 20 798,386,494,557 827,129,434,900

6 Financial income 21 23 795,063,313,060 607,270,254,892

7 Financial expenses 22 24 582,081,689,153 309,375,815,217

8 Selling expenses 24 495,107,380,079 609,552,460,752

9 General and administration expenses 25 169,041,127,639 180,128,807,059

10 Operating profi t {30 = 20 + (21 - 22) - (24 + 25)} 30 347,219,610,746 335,342,606,764

11 Other income 31 54,076,763,746 769,694,697

12 Other expenses 32 50,176,097 86,297,949

13 Profi t from other activities (40 = 31 - 32) 40 54,026,587,649 683,396,748

14 Accounting profi t before tax (50 = 30 + 40) 50 401,246,198,395 336,026,003,512

15 Current corporate income tax expense 51 25 73,943,862,379 39,386,184,598

16 Net profi t after corporate income tax (60 = 50 – 51) 60 327,302,336,016 296,639,818,914

Bui Van Thuan

General Director

Phung Tuan Kien

Chief Accountant

20 February 2012

FORM B 02-DN


Cash Flow StatementFor the year ended 31 December 2011


Unit: VND

ITEMS Codes 2011 2010

I. Cash fl ows from operating activities

1. Receipt from sales, services and others 01 2,839,993,661,908 3,694,849,918,391 2. Payment to suppliers for goods and services 02 (2,017,766,638,979) (3,086,877,156,781)3. Payment to employees 03 (164,179,849,075) (185,608,983,699)4. Payment of interest expense 04 - (10,368,463,926)5. Payment for corporate income tax and others to the State

budget05 (295,904,283,044) (292,487,185,166)

6. Other cash infl ows 06 1,726,201,866,030 3,376,008,894,407 7. Other cash outfl ows 07 (1,575,452,833,515) (3,623,876,675,411)

Net cash from/(used in) operating activities 20 512,891,923,325 (128,359,652,185)

II. Cash fl ows from investing activities

1. Acquisition and construction of fi xed assets and other long-term assets

21 (193,829,302,628) (191,940,487,863)

2. Proceeds from sale, disposals of fi xed assets and other long-term assets

22 190,486,794,223 6,818,182

3. Cash out fl ow for lending, buying debt instruments of other entities

23 (7,577,983,176,145) (8,009,590,910,174)

4. Cash recovered from lending, selling debt instruments of other entities

24 4,775,365,202,153 6,400,298,648,560

5. Investments in other entities 25 (384,395,429,630) (462,337,616,926)6. Cash recovered from investments in other entities 26 30,688,028,700 29,545,100,000 7. Interest earned, dividends and profi t received 27 412,214,177,891 449,539,384,341

Net cash (used in) investing activities 30 (2,747,453,705,436) (1,784,479,063,880)

III. Cash fl ows from fi nancing activities

1. Proceeds from issuing stocks, receiving capital from owners 31 1,916,524,368,000 1,167,640,540,000 2. Proceeds from borrowings 33 - 135,315,555,556 3. Repayment of borrowings 34 - (135,315,555,556)4. Dividends and profi t paid 36 (155,052,636,000) (172,108,002,000)

Net cash from fi nancing activities 40 1,761,471,732,000 995,532,538,000

Net (decrease) in cash 50 (473,090,050,111) (917,306,178,065)

Cash and cash equivalents at the beginning of the year 60 561,484,924,260 1,478,791,102,325

Cash and cash equivalents at the end of the year 70 88,394,874,149 561,484,924,260

Bui Van Thuan

General Director

Phung Tuan Kien

Chief Accountant

20 February 2012

FORM B 03-DN


Notes To The Financial StatementsFor the year ended 31 December 2011

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

1 | GENERAL INFORMATION

Structure of ownership

PVI Holdings (“the Company”), was formerly known as Petro Vietnam Insurance Joint Stock Corporation established and operating under License No. 42 GP/KDBH dated 12 March 2007 issued by the Ministry of Finance.

On 28 June 2011, the 12th amended Business License No. 0100151161 was granted to PetroVietnam Insurance Joint Stock Corporation by Hanoi Department of Planning and Investment, in which, the Company’s name was changed to PVI Holdings (“PVI”) and some other principal activities were added.

The Company has offi cially operated based on Holding Company- Subsidiary Model under the new business registration license since 01 August 2011.

Subsidiaries and associates

The Company owns 100% capital of 2 subsidiaries:

PVI Insurance Corporation (PVI Insurance)PVI Re-insurance Company (PVI Re-insurance)

The Company has 6 associates as follows:

PV2 Investment Joint Stock Company (PV2)Nangluongmoi Trading and Communication Joint Stock Company Sapa Petroleum Tourism Joint Stock Company (PVST)PetroVietnam Finance Fund Management Incorporation (PVFC Capital)Vietnam Petroleum Hospital Joint Stock Company (PVH)Viet Housing International Investment and Development Company

Principal activities

The Company’s principal activities include:Asset holdingsFinancial services Insurance business (by 01 August 2011)

The number of employees of the Company as at 31 December 2011 was 100 (31 December 2010, before restructuring: 1,343).

2 | ACCOUNTING CONVENTION AND ACCOUNTING PERIOD Accounting convention

The accompanying fi nancial statements, expressed in Vietnam Dong (VND), are prepared under the historical cost convention and in accordance with Vietnamese Accounting Standards, Vietnamese Accounting System applicable to insurance enterprises and prevailing relevant regulations in Vietnam.

In prior accounting periods, the Company adopted Decision No. 150/2001/QD-BTC dated 31 December 2001 on insurance company accounting regime in preparing fi nancial statements. From 01 August 2011, the Company offi cially operates under a holding-subsidiary model and insurance component was separated to form a subsidiary (PVI) from this date. Therefore, the Board of General Director decided to adopt Decision No.

FORM B 09-DN


Notes To The Financial Statements (continued)For the year ended 31 December 2011

FORM B 09-DN


15/2006/QD-BTC dated 20 March 2006 on enterprise accounting regime in preparing fi nancial statements for PVI Holdings (holding company) for the year ended 31 December 2011. Due to the above change, comparative fi gures were reclassifi ed and presented in a reasonably comparable format stipulated in Decision No. 15/2006/QD-BTC for reference purpose. These fi nancial statements should be read in conjunction with the consolidated fi nancial statements of PVI Holdings for the year ended 31 December 2011.

The accompanying fi nancial statements are not intended to present the fi nancial position, results of operations and cash fl ows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Vietnam.

Accounting period

The Company’s fi nancial year begins on 01 January and ends on 31 December.

3 | ADOPTION OF NEW ACCOUNTING GUIDANCE

On 06 November 2009, the Ministry of Finance issued Circular No. 210/2009/TT-BTC (“Circular 210”) guiding the application of International Financial Reporting Standards on presentation of fi nancial statements and disclosures of fi nancial instruments. The adoption of Circular 210 requires disclosures of certain fi nancial instruments as well as the eff ect thereof on the fi nancial statements. This Circular is eff ective for the fi nancial year ending on or after 31 December 2011. The Company has adopted Circular 210 and additional notes on this application to the fi nancial statements for the year ended 31 December 2011 are set out in the Note 27.

4 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The signifi cant accounting policies, which have been adopted by the Company in the preparation of these fi nancial statements, are as follows:

Estimates

The preparation of fi nancial statements in conformity with Vietnamese Accounting Standards, Vietnamese Accounting System and prevailing relevant regulations in Vietnam requires management to make estimates and assumptions that aff ect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the fi nancial statements and the reported amounts of revenues and expenses during the fi nancial year. Actual results could diff er from those estimates.

Financial instruments

Initial recognition

Financial assetsAt the date of initial recognition, fi nancial assets are recognized at cost plus transaction costs that are directly attributable to the acquisition of the fi nancial assets.

The fi nancial assets of the Company comprise cash and short-term deposits, receivables, investments and other fi nancial assets.

Financial liabilitiesAt the date of initial recognition fi nancial liabilities are recognized at cost net of transaction costs that are directly attributable to the issue of the fi nancial liabilities.

Financial liabilities of the Company comprise trade payables, accrued expenses, other payables, and other fi nancial liabilities.



FORM B 09-DN


4 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Initial recognition (continued)

Re-measurement after initial recognition

Currently there are no requirements for the re-measurement of the fi nancial instruments after initial recognition.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignifi cant risk of changes in value.

Provision for doubtful debts

Provision for doubtful debts is made for receivables that are overdue for six months or more, or when the debtor is in dissolution, in bankruptcy, or is experiencing similar diffi culties and so may be unable to repay the debt.

Tangible fi xed assets and depreciation

Tangible fi xed assets are stated at cost less accumulated depreciation.

The costs of purchased tangible fi xed assets comprise their purchase prices and any directly attributable costs of bringing the assets to their working condition and location for their intended use.

Tangible fi xed assets are depreciated using the straight-line method over their estimated useful lives as follows:

2011

Years

Buildings and structures 25Motor vehicles 6Offi ce equipment 3 - 5

Intangible fi xed assets and amortisation

Intangible fi xed assets are stated at cost less accumulated amortisation.

Intangible fi xed assets represent land use rights, accounting software, management software, and copyrights of other softwares (collectively referred to as “computer softwares”). Computer softwares are amortized using the straight-line method over their estimated useful lives. Long-term land use rights are not depreciated in line with prevailing relevant regulations.

Diff erence from revaluation of state’s net assets in equitisation

On 20 October 2009, the Ministry of Finance issued Circular No. 203/2009/TT-BTC guiding regime on management, use and depreciation of fi xed assets for enterprises established and operating in Vietnam, of which “where a wholly State owned enterprise undergoes enterprise valuation by the discounted cash fl ow (DCF) method for equitisation purposes and there is an increase in the actual value of the State portion compared to the value recorded in the books of accounts. Such increase shall not be recorded as an intangible fi xed asset and gradually allocated to production and business expenses during a period not to exceed 10 years. The time for commencing the allocation to expenses shall be the time when the enterprise offi cially converts to a joint stock company (as per its business registration certifi cate)”. Circular No. 203/2009/TT-BTC eff ective from 01 January 2010 was applied by the Company to record the diff erence of VND 213,785,395,213 between the actual value of the State portion as at 31 December 2005 (prior to the equitisation) and the book value of state’s net assets as long-term prepaid expenses. Such long-term prepayments are amortised over 8 years from 2009.



FORM B 09-DN


Construction in progress

Properties in the course of construction for production, rental or administrative purposes, or for the purposes not yet determined, are carried at cost. Cost includes professional fees, and for qualifying assets, borrowing costs dealt with in accordance with the Company’s accounting policy. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Investments in associates

An associate is an entity over which the Company has signifi cant infl uence and that is neither a subsidiary nor an interest in joint venture. Signifi cant infl uence is the power to participate in the fi nancial and operating policy decisions of the investee but not control or joint control over those policies. The Company’s investments in associates are initially measured at cost. The Company only recognizes in the income statement gains from accumulated net profi t of the investee arising after the investment date. Other gains the Company receives out of these gains are considered recovery of investments and are recognized as deduction in investment principal.

Investments in associates are measured at cost less provisions for diminution in value of investments in associates in the balance sheet. Provisions for diminution in value of investments in associates are made in accordance with Circular No. 228/2009/TT-BTC and other prevailing accounting regulations.

Investments in securities

Investments in securities are recognised on the trade date basis and are initially measured at cost including directly attributable transaction costs.

At the subsequent reporting dates, investments in securities are measured at cost, less provision for diminution in value of securities investments. The Company makes provisions for listed securities based on their closing prices as at the year end. For unlisted securities, the Company makes provision based on the average price quoted by securities companies: Sacombank Sercurities Joint Stock Company (SSI), ACB Securities Company Limited, Vietnam Investment Review and website www.stocknews.vn.

For the other long-term investments in securities, the Company makes provisions based on the investees’ latest fi nancial statements and the Board of General Directors believes that there is not any change in the their fi nancial statements as at 31 December 2011 in comparison with their lastest fi nancial statements that has signifi cant impacts on provisions made by the Company. The Company did not make provisions for diminution in value of the investments in the companies that are under construction and have planned losses as stipulated in Circular No. 228/2009/TT-BTC dated 07 December 2009 issued by the Ministry of Finance.

Investment in subsidiaries

Subsidiaries includes companies which PVI Holdings has control. The Company obtains the control when the Company has right to control the subsidiaries’ fi nancial and operating policies to obtain benefi t from subsidiaries’ operating activites.

Investments in subsidiaries on the balance sheet ared measured at cost less provision for diminution in value of investments in subsidiaries. These provisions are made in compliance with Circular No.228/2009/TT-BTC and other prevailing accounting regulations.



FORM B 09-DN



Foreign currencies

The Company applies the method of recording foreign exchange diff erences in accordance with Circular No.201/2009/TT-BTC dated 15 October 2009 issued by the Ministry of Finance. Accordingly, transactions arising in foreign currencies are translated at exchange rates ruling at the transaction date. Foreign exchange diff erences arising from these transactions are recognised in the income statement.

Monetary assets and liabilities denominated in foreign currencies are retranslated at the rates of exchange prevailing on the balance sheet date and are accounted for as follows:

Foreign exchange diff erences arising from revaluation of monetary items, short-term receivables and payables denominated in foreign currencies at the balance sheet date are recorded in the balance sheet under the account “foreign exchange reserve” in the “owners’ equity”.

Foreign exchange diff erences arising from revaluation of long-term receivables and payables are recorded in the income statement for the year.

The recognition of foreign exchange diff erences in accordance with Circular No. 201/2009/TT-BTC diff ers from that as regulated in Vietnamese Accounting Standard No. 10 (VAS 10) “Eff ects of changes in foreign exchange rates”. According to VAS 10, all foreign exchange diff erences arising from revaluation of balances denominated in foreign currencies at the balance sheet date are recognized in the income statement. The Board of General Directors has decided to recognise foreign exchange diff erences as guided in Circular No. 201/2009/TT-BTC and believes that such application and disclosure of diff erences at the same time, in the case where the Company would apply VAS10, may provide more information to users of fi nancial statements. Accordingly, the adoption of Circular No. 201/2009/TT-BTC in recording foreign exchange diff erences will make the Company’s profi t before tax in 2011 decrease by VND 9,361,957,396 (in 2010: decrease by VND 4,340,530,848) and the “Foreign exchange reserve” item under the owners’ equity section in the balance sheet as at 31 December 2011 decrease by VND 101,655,857, compared with applying VAS 10.

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specifi c borrowings pending their expenditure on qualifying assets is deducted from the cost of those assets.

All other borrowing costs are recognised in the income statement when incurred.

Taxation

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

As per Circular No. 134/2007/TT-BTC dated 23 November 2007 (replaced by Circular No.130/2008/TT-BTC dated 26 December 2008), the Company is entitled to corporate income tax exemption for the fi rst two years from its commencement of operations and a 50% reduction for the two years thereafter. Year 2010 is the last year the Company was entitled to the above tax incentives, accordingly, from 2011; the Company is entitled to a 25% normal tax rate of corporate income tax.

The tax currently payable is based on taxable profi t for the year. Taxable profi t diff ers from net profi t as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years (including loss carried forward, if any) and it further excludes items that are never taxable or deductible.



FORM B 09-DN


Deferred tax is recognized on signifi cant diff erences between carrying amounts of assets and liabilities in the fi nancial statements and the corresponding tax bases used in the computation of taxable profi t and are accounted for using balance sheet liability method. Deferred tax liabilities are generally recognized for all temporary diff erences and deferred tax assets are recognized to the extent that it is probable that taxable profi t will be available against which deductible temporary diff erences can be utilized. As there was no signifi cant temporary diff erence during the year, the Company did not recognise any deferred tax in these fi nancial statements.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised. Deferred tax is charged or credited to profi t or loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Deferred tax assets and liabilities are off set when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same tax authority and the Company intends to settle its current tax assets and liabilities on a net basis.

The determination of the current tax expense payable is based on the current interpretation of tax regulations. However, these regulations are subject to periodic variation and their ultimate determination depends on the results of the tax authorities’ examination.

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

Provisions are recognised when the Company has a present obligation as a result of a past event, and it is probable that the Company will be required to settle that obligation. Provisions are measured at the management’s best estimate of the expenditure required to settle the obligation at the balance sheet date.

Enterprise funds

All profi t is used to pay dividends for shareholders, allocate to bonus and welfare funds, investment and development funds and bonus for the management. The allocation ratio shall be decided at the Shareholders’ General Meeting as per the request of the Board of Management. However, according to the Company’s Charter, the Board of Management is able to pay mid-year dividends if they are certain about the profi t of the Company.

Revenue recognition

Revenue of a transaction involving the rendering of services is recognised when the outcome of such transactions can be measured reliably. Where a transaction involving the rendering of services is attributable to several periods, revenue is recognised in each period by reference to the percentage of completion of the transaction at the balance sheet date of that period. The outcome of a transaction can be measured reliably when all four (4) following conditions are satisfi ed:

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

(b) It is probable that the economic benefi ts associated with the transaction will fl ow to the Company;

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

(d) The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.Signifi cant accounting policies related to insurance business:

As at 31 December 2011, the Company no longer has insurance activities because this component has been delegated to subsidiaries. However, the fi nancial statements of the Company still include insurance activities up to 31 July 2011. Therefore, accounting policies for insurance activity are summarized as follows:



FORM B 09-DN



Underwriting reserves

The Company makes underwriting reserves as regulated in Article 96 of the Law on Insurance Business, Decree No. 46/2007/ND-CP dated 27 March 2007, Circular No. 156/2007/TT-BTC issued by the Ministry of Finance on 20 December 2007 (amended and supplemented by Circular No. 86/2009/TT-BTC dated 28 April 2009), accordingly:

Unearned premium reserveUnearned premium reserve is provided for in line with 1/24 method. In 2010, unearned premium reserve is provided for in line with proportion method. The adoption of 1/24 method creates an increase in profi t after tax of approximately VND 100 billion in comparison with the proportion method.

Claim reserveThe Company provides reserve against losses that incurred and reported, using the statistics of retention liabilities for each estimated loss for both of direct policies and reinsurance policies. Provisions for loss incurred but not reported (IBNR) have been evaluated based on statistical of historical data.

Catastrophe reserveIn accordance with Vietnamese Accounting Standard No. 19 - “Insurance Contract”, reserve to cover the losses in the future of which the claims did not appear at the consolidated balance sheet date (including catastrophe reserve) is deemed not necessary. However, following regulations of the Ministry of Finance, the Company’s catastrophe reserve for all types of insurance services were consistently provided at 3% of the premium retained in the year.

Revenue recognition

Direct insurance premium

Direct insurance premium of the Company is recognized when the issued policy comes into eff ect or divided into collectible terms for long period policies.

Re-insurance premium

Premium from re-insurance activities is recorded at the amount stated on the reinsures’ statement sent to the Company and confi rmed by the Company.

Premium of reinsurance outward is recorded at the amount that has incurred for transferring to the reinsurers, corresponding to the revenue of direct premium recorded in the year.

Expenses

Claim settlement expenses of direct insurance are recorded as incurred, that is, when the Company accepts to settle the insured’s claims following respective settlement notice.

Claim settlements of reinsurance inward activities are recorded as incurred following the statement of accounts the reinsures sent to the Company and the claim is accepted by the Company.

Claim recoverable from the reinsures is recognized based on the receivable amount incurred corresponding with the claim settlement expenses recorded in the year and the ceded ratios.

Commission from direct insurance activities and other expenses are recognized when incurred.



FORM B 09-DN


5 | CASH AND CASH EQUIVALENTS

VND31/12/2011 31/12/2010

Cash on hand 444,168,423 2,427,245,759Cash in bank 11,509,905,726 199,047,478,501Cash in transit 1,440,800,000 10,200,000Cash equivalents 75,000,000,000 360,000,000,000

88,394,874,149 561,484,924,260

Cash equivalents represent term deposits at domestic credit institutions which will fall due within three months.

6 | SHORT-TERM FINANCIAL INVESTMENTS

VND31/12/2011 31/12/2010

Short-term investments in securities 135,590,622,326 117,552,583,807 Repurchase agreements (i) 278,826,000,000 463,402,200,000 Term deposits at credit institutions (ii) 205,000,000,000 1,760,000,000,000 Short-term trust investment (iii) 100,000,000,000 50,000,000,000 Contracts of investment in listed securities (iv) 339,828,183,818 814,492,167,100 Contracts of investment in real estate (v) 910,000,000,000 - Other short-term investments 50,000,000,000 - Provision for diminution in value of short-term investments in sercurities (109,561,242,847) (32,832,784,213)

1,909,683,563,297 3,172,614,166,694

(i) Under the repurchase agreements, the Company gains fi xed interest and bears no risk. The Company bears credit risk and is warranted by selling of the securities.

(ii) Represent term deposits at domestic credit institutions which will fall due from 3 months to 12 months.

(iii) Under the short-term investment trust agreements, the Company gains fi xed interest and bears no risk The Company bears credit risk and is not warranted by collaterals.

(iv) Under co-operation contract of investment in listed securities, the Company contributes capital with other part-ners for purchasing listed securities, enjoys fi xed interest and does not bear any risk from the investments; the Company has the right to blockade and sell securities to recover its capital, in case the market price decreases by 30% in comparison with the reference price stated in the investment co-operation contract. The contract has an eff ective duration of 1 year and can be early terminated. The Company fully made provision for over due contracts which are assessed to be diffi cult to be recovered.

(v) Under co-operation contract of investment in real estates, the Company contributes capital with other part-ners in real estate projects, enjoys fi xed interest and does not bear any risk from the investments. The Company received collaterals of real estates that are evaluated by evaluation fi rms. In case partners failed to fufi ll their obligations to the Company, the Company has right to sell the collaterals to recover the invested capital. The contract has an eff ective duration of 1 year and can be early terminated if agreement is made by both parties.



FORM B 09-DN


7 | TRADE ACCOUNTS RECEIVABLE

VND

31/12/2011 31/12/2010

Receivables from direct insurance premium - 231,734,842,097

Receivables from reinsurance - inward - 67,761,307,870

Receivables from reinsurance - outward - 170,813,877,187

Receivables from fi nancial investments 352,178,322,035 259,111,468,023

Other trade accounts receivable 1,450,000,000 2,329,647,363

353,628,322,035 731,751,142,540

8 | TANGIBLE FIXED ASSETS

Unit: VND

Buildings and

structures

Motor vehicles Offi ce equipment Total

COST

As at 01/01/2011 28,559,715,265 31,427,344,132 52,233,255,340 112,220,314,737

Additions - 3,646,300,181 4,515,193,353 8,161,493,534

Disposals - 522,886,000 1,978,411,092 2,501,297,092

Transfer to subsidiaries 8,734,490,802 25,543,072,860 40,027,649,214 74,305,212,876

Other decreases - 89,756,321 - 89,756,321

As at 31/12/2011 19,825,224,463 8,917,929,132 14,742,388,387 43,485,541,982

ACCUMULATED DEPRECIATION

As at 01/01/2011 10,036,041,820 17,980,706,187 38,156,360,390 66,173,108,397

Charge for the year 1,126,026,238 3,341,457,700 5,785,181,109 10,252,665,047

Disposals - 522,886,000 1,971,822,852 2,494,708,852

Transfer to subsidiaries 2,020,518,211 17,221,404,488 31,860,046,634 51,101,969,333

As at 31/12/2011 9,141,549,847 3,577,873,399 10,109,672,013 22,829,095,259

NET BOOK VALUE

As at 31/12/2011 10,683,674,616 5,340,055,733 4,632,716,374 20,656,446,723

As at 31/12/2010 18,523,673,445 13,446,637,945 14,076,894,950 46,047,206,340



FORM B 09-DN


9 | INTANGIBLE FIXED ASSETS

Unit: VND

Computer software Land use rights Total

COST

As at 01/01/2011 19,390,811,482 32,944,967,029 52,335,778,511 Additions 7,132,500,000 7,354,899,900 14,487,399,900 Transfer to subsidiaries 7,438,199,482 20,226,965,440 27,665,164,922

Capital Contribution - 12,352,852,989 12,352,852,989

As at 31/12/2011 19,085,112,000 7,720,048,500 26,805,160,500

ACCUMULATED AMORTISATION

As at 01/01/2011 9,007,767,360 - 9,007,767,360Charge for the period 5,703,187,399 - 5,703,187,399Transfer to subsidiaries 4,788,517,046 - 4,788,517,046

As at 31/12/2011 9,922,437,713 - 9,922,437,713

NET BOOK VALUE

As at 31/12/2011 9,162,674,287 7,720,048,500 16,882,722,787

As at 31/12/2010 10,383,044,122 32,944,967,029 43,328,011,151

10 | CONSTRUCTION IN PROGRESS

Unit: VND

31/12/2011 31/12/2010

Offi ce building project at 20 Pham Ngoc Thach, HCMC - 15,585,745,534 PVI Offi ce Building Project at Yen Hoa, Cau Giay, Hanoi 445,753,639,776 214,891,885,776 Others 5,647,964,461 -

451,401,604,237 230,477,631,310

11 | INVESTMENTS IN SUBSIDIARIES

Unit: VND

31/12/2011 31/12/2010

PVI Insurance Corporation 1,500,000,000,000 -

PVI Reinsurance Company 460,000,000,000 -

1,960,000,000,000 -



FORM B 09-DN


11 | INVESTMENTS IN SUBSIDIARIES (continued)

Details of the Company’s subsidiaries as at 31 December 2011 are as follows:

Name of subsidiary Place of

incorporation

Proportion of own-

ership interest

%

Proportion of

voing power held

%

Principal activity

PVI Insurance Corporation Hanoi 100 100 InsurancePVI Re-insurance Company Hanoi 100 100 Reinsurance

12 | INVESTMENT IN ASSOCIATES

VND

31/12/2011 31/12/2010

PV2 Investment Joint Stock Company 162,433,335,115 141,919,200,000 Viet Housing International Development And Investment Joint Stock Company

102,000,000,000 -

Nangluongmoi Trading & Communication Joint Stock Company 46,912,303,800 51,057,034,200 Sapa Petroleum Tourism Joint Stock Company 45,894,557,965 46,139,960,000 PetroVietnam Insurance Service Joint Stock Company - 10,000,000,000 PetroVietnam Finance Fund Management Incorporation 24,000,000,000 - PetroVietnam Hospital Joint Stock Company 25,000,000,000 -

406,240,196,880 249,116,194,200

Details of the Company’s associates as at 31 December 2011 are as follows:

Name of associate Place of incorpo-

ration and opera-

tion

Proportion of

ownership inter-

est (per paid-in

share capital)

%

Proportion of

voting power

held

%


PV2 Investment Joint Stock Company

Hanoi, Vietnam 44.9 44.9 Real-estate bussiness and fi nance investment

Viet Housing International Development And Investment Joint Stock Company

Hanoi, Vietnam 34.0 34.0 Real-estate bussiness

Nangluongmoi Trading & Communication Joint Stock Company

Hanoi, Vietnam 74.4 74.4 Communication development, multi-media marketing, event organisation

Sapa Petroleum Tourism Joint Stock Company

Laocai, Vietnam 41.5 41.5 Tourism, travel, hotel, meals services

PetroVietnam Finance Fund Management Inc.

Hanoi, Vietnam 24.0 24.0 Finance Fund Management and Investment Portfolio Management

PetroVietnam Hospital Joint Stock Company

Quang Ngai, Vietnam

50.0 50.0 Management of the operation of Dung Quat Petroleum Hospital



FORM B 09-DN


Provision for investments in associates are made based on the lastest fi nancial statements of these associated. The management believes there is no change in their fi nancial statements as at 31 December 2011 in comparison with the lastest fi nancial statements that has signifi cant impacts on provision made by the Company.

13 | OTHER LONG-TERM INVESTMENTS

VND

31/12/2011 31/12/2010

Investments in securities 16,039,750,450 429,532,866,466 Bonds (*) 148,000,000,000 433,000,000,000 Entrusted investment (**) 233,582,300,000 233,582,300,000 Total of other long-term investments 397,622,050,450 1,096,115,166,466

Provision for diminution in value of long-term investments (82,132,537,429) (35,456,353,002)

315,489,513,021 1,060,658,813,464

(*) Represents Government and Corporate Bonds, which fall due from one to three years, coupon rates are in range from 17.5% to 17.9%.

(**) Represents the balance of the purpose-nominated trusted loan granted via commercial banks. According to the trusted loan agreements, the Company enjoys interest at the fl oating rate and bears risk. As at 31 December 2011, this loan was partly overdue in terms of both principal and interest. The Board of General Director believes the Company made provision on best estimate.

14 | LONG-TERM PREPAID EXPENSES

VND

Năm 2011 Năm 2010

Opening balance 164,081,910,726 191,337,824,029 Additions 2,136,823,695 3,080,387,421 Allocated to expenses during the period (31,890,803,684) (30,336,300,724)

Closing balance 134,327,930,737 164,081,910,726

15 | TRADE ACCOUNTS PAYABLE

VND

31/12/2011 31/12/2010

Payables for direct insurance activities - 134,716,031,674 Payables for returned insurance premium - 44,482,745,737 Payables for reinsurance premium - inward - 42,491,344,602 Payables for reinsurance premium - outward - 390,451,777,974 Other trade accounts payable 23,015,774,535 52,471,309,617

23,015,774,535 664,613,209,604



FORM B 09-DN


16 | TAXES AND AMOUNTS PAYABLE TO THE STATE BUDGET

Unit: VND Movement during the period

31/12/2010 Payables Handover to

susidiaries

Paid 31/12/2011

I. Taxes 16,609,715,219 310,907,793,425 - 296,760,093,416 4,486,778,131

Value added tax for domestic sales

3,503,611,337 219,898,394,109 27,243,338,114 196,111,863,319 46,804,013

Corporate income tax 10,362,512,053 73,943,862,379 - 82,854,918,820 1,451,455,612 Land tax and land rentals

- 341,443,000 - 341,443,000 -

Business licence tax - 34,000,000 - 34,000,000 - Other taxes and charges payable

5,307,832,819 16,690,093,937 1,591,539,973 17,417,868,277 2,988,518,506

19,173,956,209 310,907,793,425 28,834,878,087 296,760,093,416 4,486,778,131

17 | OTHER CURRENT PAYABLES

VND

31/12/2011 31/12/2010

Ocean Commerial Joint Stock Bank - 840,000,000,000 Vietnam Oil and Gas Group 142,415,165,558 43,114,680,000 PetroVietnam Finance Joint Stock Corporation 50,021,250,002 - PetroVietnam Hospital Joint Stock Company 45,227,388,888 - Others 11,373,712,256 36,809,444,315

249,037,516,704 919,924,124,315

18 | SHORT-TERM PROVISIONS

VND

31/12/2011 31/12/2010

Unearned premium reserve - 856,099,323,880

Claim reserve - 263,105,850,886 Catastrophote reserve - 68,031,708,614

- 1,187,236,883,380



FORM B 09-DN


19 | MAJOR ITEMS OF OWNERS’ EQUITY

Charter capital Share premium Treasury fund Retained earnings

As at 01/01/2011 1,597,103,640,000 1,622,092,724,471 (14,854,448,300) 196,074,351,979

Capital contributions (a) 532,367,880,000 1,384,156,488,000 - - Purchases treasury funds (b) - - (109,467,979,050) - Profi t for the year - - - 327,302,336,016 Allocated to compulsory reserve fund (c)

- - - (10,263,358,427)

Decrease in allocation to investment and development fund for the year 2010

- - - 352,368,634

Allocated to bonus and welfare funds (d)

- - - (38,575,793,304)

Dividends (d) - - - (236,662,566,000)Payments from funds - (31,477,434,273) - -

As at 31/12/2011 2,129,471,520,000 2,974,771,778,198 (124,322,427,350) 238,227,338,898

(a) Capital allotment according to the Resolution of General Shareholders Meeting No. 01/2011/NQ-DHDCD dated 15 April 2011. Accordingly, the Company issued shares for HDI Gerling Industries Versicherung AG. The value of 53,236,788 shares (equivalent to 25% charter capital after allotment) equivalent to VND 532,367,880,000 has been recorded as charter capital and VND 1,384,156,488,000 was the premium of 53,236,788 shares.

(b) During the year, the Company purchased 6,262,500 treasury shares according to Decision of the Board of Management.

(c) The compulsory reserve fund is made up at the rate of 5% of the Corporation’s profi t after tax as stipulated in Article 30, Decree No. 46/2007/ND-CP dated 27 March 2007. The Holding Company made compulsory reserve fund to 31 July 2011(the date of restructuring)and transferred this fund to PVI Insurance Corporation.

(d) Dividend paid and allocation to bonus and welfare funds does not exceed the maximum amount determined by the Resolution of the General Shareholders Meeting No. 01/2011/NQ-DHDCD dated 15 April 2011 on distribution of profi t of the year 2010 and advance dividend of 7% for the year 2011. Profi t distribution of the year 2011 will be fi nalized in up coming General Shareholders Meeting 2012.

Details of charter capital are as follow:

Capital contribution as at 31/12/2011 Capital contribution as at 31/12/2011

VND Ratio VND Ratio

Vietnam Oil and Gas Group 831,497,400,000 39.05% 831,497,400,000 52.06%

HDI-Gerling Industrie Versicherung AG (Talanx Group’s members)

532,367,880,000 25.00% - 0.00%

Funderburk Lighthouse Limited 220,925,000,000 10.37% 202,075,000,000 12.65%Other shareholders 544,681,240,000 25.58% 563,531,240,000 35.29%

2,129,471,520,000 100% 1,597,103,640,000 100%



FORM B 09-DN


20 | GROSS SALES

VND 2011 2010

Premium from direct insurance 2,864,586,901,123 3,512,186,405,060Premium from reinsurance inward 293,223,938,610 316,391,210,913Commission from reinsurance outward 126,791,123,151 152,319,572,289Other income from insurance activities 6,862,686,166 4,357,216,547Sales from insurance activities 3,291,464,649,050 3,985,254,404,809 Sales from information tecnology bussiness 2,050,000,000 -

3,293,514,649,050 3,985,254,404,809

21 | SALES DEDUCTION

VND2011 2010

Returned premium 62,964,750,523 80,237,240,794 Increase in unearned premium reserve 195,240,863,973 233,298,490,748 Other deductions 1,793,877,458 2,087,677,381

259,999,491,954 315,623,408,923

22 | COST OF SALES

VND2011 2010

Reinsurance outward fee 1,667,053,307,353 2,011,362,687,257Claim settlements of direct policies 464,662,473,943 1,150,555,967,327Claim settlements of assumed policies 84,384,485,940 110,208,484,758 Deduction to expenses (146,114,820,232) (653,730,168,309)

- Claims receipt from ceded polices (140,921,124,556) (651,339,332,581)- Receipt of claim from third parties (39,160,600) (1,524,064,500)- Receipt of 100% claim from goods (5,154,535,076) (866,771,228)

Claim payment from catastrophe provision (28,115,039,247) (49,115,488,087)(Increase)/ decrease in claim reserve 4,780,770,024 61,206,333,331Increase in catastrophe reserve 42,833,783,456 52,109,330,638Other expenses for insurance activities 143,828,701,302 159,904,414,071

- Other expenses for direct insurance services 38,276,858,975 59,780,723,655 - Other expenses for reinsurance inward 86,323,079,435 57,631,684,727 - Other expenses for reinsurance outward 19,228,762,892 42,492,005,689

Cost of sale from insurance activities 2,233,313,662,539 2,842,501,560,986 Cost of sale from Information tecnology bussiness 1,815,000,000 -

2,235,128,662,539 2,842,501,560,986



FORM B 09-DN


23 | FINANCIAL INCOME

VND2011 2010

Deposit, loan interests 242,835,385,644 210,995,874,068 Gain from investment in bonds 43,722,547,182 26,483,292,588 Gain from stock trading 5,505,863,959 31,042,308,023 Gain from trusted investments 25,777,069,443 86,888,261,379 Dividends, profi t received 105,869,649,667 20,032,134,434 Foreign exchange gain 27,073,534,273 12,976,871,776 Income from Repo activities 55,739,065,227 51,478,771,195 Sale from investment property 190,374,703,314 -Other fi nancial income 98,165,494,351 167,372,741,429

795,063,313,060 607,270,254,892

24 | FINANCIAL EXPENSES

VND2011 2010

Expenses for stock trading 1,928,890,465 24,324,942,876 Foreign exchange loss 43,053,899,314 43,291,301,459 Provision for diminution in investments 192,816,597,122 40,431,088,625 Cost of investment property 176,800,000,000 -Other fi nancial expenses 167,482,302,252 201,328,482,257

582,081,689,153 309,375,815,217

25 | CORPORATE INCOME TAX

VND 31/12/2011 31/12/2010

Profi t before tax 401,246,198,395 336,026,003,512

Adjustments for taxable income

Less: non-assessable income (105,869,649,667) (21,837,068,443)- Dividends and profi ts received (105,869,649,667) (20,032,134,434)

- Interest on Education bonds - (1,804,934,009)

Add back: non-deductible expenses 398,900,790 900,541,712 Remuneration of the Board of Management 132,000,000 252,000,000

Depreciation of car costed over VND1.6 billion 206,900,790 117,874,512

Other non-deductible expenses 60,000,000 530,667,200 Assessable income 295,775,449,518 315,089,476,781

Tax rate (*) 25.0% 12.5%

Corporate income tax 73,943,862,379 39,386,184,598

(*) As presented in Note 4, 2010 is the last year the Company is entitled to corporate income tax incentives. From 2011, the Company is obligated to pay corporate income tax at the normal tax rate of 25%.



FORM B 09-DN


26 | COMMITMENTS

As at 31 December 2011, the Company had several following signifi cant commitments:

A commitment for purchasing offi ce in Yen Hoa Ward, Cau Giay District, Hanoi with the total estimated value of USD 54,954,000. The percentage of completion relating to this contract is 40%.

A commitment for purchasing 15 apartments at Olalani resort at Son Tra - Dien Ngoc Street, Khue My Ward, Ngu Hanh Son District, Da Nang with the total value of USD 5,058,460. The percentage of completion relating to this contract is 60%.

27 | FINANCIAL INSTRUMENTS

Capital risk management

The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance.

The capital structure of the Company consists of net debt, cash and cash equivalents and equity attributable to equity holders of the parent (comprising capital, reserves and retained earnings).

Signifi cant accounting policies

Details of the signifi cant accounting policies and methods adopted (including the criteria for recognition, the bases of measurement, and the bases for recognition of income and expenses) for each class of fi nancial asset, fi nancial liability and equity instrument are disclosed in Note 4.

Categories of fi nancial instruments

Carrying amount

31/12/2011 31/12/2010

VND VND

Financial Assets

Cash and cash equivalents 88,394,874,149 561,484,924,260 Trade and other receivables 353,041,873,530 770,283,992,204 Short-term investments 1,909,683,563,297 3,172,614,166,694 Long-term investments 326,543,304,137 1,072,088,194,160 Other fi nancial assets - 21,056,918,596

Total 2,677,663,615,113 5,597,528,195,914

Financial Liabilities

Trade and other payables 272,053,291,239 1,584,537,333,919 Accaruals 2,658,265,995 263,140,214,136

Total 274,711,557,234 1,847,677,548,055

The Company has not assessed fair value of its fi nancial assets and liabilities as at the balance date since there are no comprehensive guidance under Circular 210 and other relevant prevailing regulations to determine fair value of these fi nancial assets and liabilities. While Circular 210 refers to the application of IFRS on presentation and disclosures of fi nancial instruments, it did not adopt the equivalent guidance for the recognition and measurement of fi nancial instruments, including application of fair value, in accordance with IFRS.



FORM B 09-DN


Financial risk management objectives

Financial risks include market risk (including foreign currency risk, interest rate risk and price risk), credit risk, liquidity risk and cash fl ow interest rate risk. The Company does not hedge these risk exposures due to the lack of a market to purchase fi nancial instruments.

Market risk

The Company’s activities expose it primarily to the fi nancial risks of changes in foreign currency exchange rates and interest rates. The Company does not hedge these risk exposures due to the lack of any market to purchase fi nancial instruments.

Foreign currency risk management

The Company undertakes certain transactions denominated in foreign currencies; consequently, exposures to exchange rate fl uctuations arise. The Company does not hedge this risk due to the lack of any market to purchase such instruments.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary iabilities at the end of the reporting period are as follows.

Assets (VND Equivalent) Liabilities (VND Equivalent)

31/12/2011 31/12/2010 31/12/2011 31/12/2010

United States Dollar (USD) 324,170,949 328,984,432,792 19,474,180,000 339,633,125,519 Euro (EUR) 10,713,913 3,750,915,934 - 11,931,102,091 British Pound (GBP) - 1,043,223,447 - 207,166,470 Japanese Yen (JPY) - 30,308,713 - -Singapore Dollar (SGD) - 11,317,006 - -

Price risks

The Company is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.

Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in fi nancial loss to the Company. The Company has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. As at the balance sheet date there is a signifi cant concentration of credit risk arising on the trusted investment and cooperation investment contracts. Credit risk is evaluated prudently by the Board of General Directors as presented in Note 6 and Note 13.

Liquidity risk management

The purpose of liquidity risk management is to ensure the availability of funds to meet present and future fi nancial obligations. Liquidity is also managed by ensuring that the excess of maturing liabilities over maturing assets in any period is kept to manageable levels relative to the amount of funds that the Company believes can generate within that period. The Company policy is to regularly monitor current and expected liquidity requirements to ensure that the Company maintains suffi cient reserves of cash, borrowings and adequate committed funding from its owners to meet its liquidity requirements in the short and longer term.

The following table details the Company’s remaining contractual maturity for its non-derivative fi nancial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash fl ows of fi nancial liabilities based on the earliest date on which the Company can be required to pay. The table includes both interest and principal cash fl ows. To the extent that interest fl ows are fl oating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.



FORM B 09-DN


27 | FINANCIAL INSTRUMENTS (continued)


VND 31/12/2011 31/12/2010

Less than 1 year

Trade and other payables 272,053,291,239 1,584,537,333,919 Accruals 2,658,265,995 263,140,214,136

The management assessed the liquidity risk concentration at low level. The management believes that the Company will be able to generate suffi cient funds to meet its fi nancial obligations as and when they fall due.

The following table details the Company’s expected maturity for its non-derivative fi nancial assets. The table has been drawn up based on the undiscounted contractual maturities of the fi nancial assets including interest that will be earned on those assets, if any. The inclusion of information on non-derivative fi nancial assets is necessary in order to understand the Company’s liquidity risk management as the liquidity is managed on a net asset and liability basis.

VND 31/12/2011 31/12/2010

Less than 1 year

Cash and cash equivalents 88,394,874,149 561,484,924,260 Trade and other receivables 353,041,873,530 770,283,992,204 Short-term investments 1,909,683,563,297 3,172,614,166,694 Long-term invesments 3,600,000,000 850,139,848,576 Other fi nancial assets - 18,144,967,605

From 1 - 5 years

Cash and cash equivalents - -Trade and other receivables - -Short-term investments - -Long-term invesments 322,943,304,137 221,948,345,584 Other fi nancial assets - 2,911,950,991

Total

Cash and cash equivalents 88,394,874,149 561,484,924,260 Trade and other receivables 353,041,873,530 770,283,992,204 Short-term investments 1,909,683,563,297 3,172,614,166,694 Long-term invesments 326,543,304,137 1,072,088,194,160 Other fi nancial assets - 21,056,918,596



FORM B 09-DN


28 | RELATED PARTY TRANSACTIONS AND BALANCES

During the year, the Company entered into the following transactions with related parties:

VND 2011 2010

Dividends paid Vietnam Oil and Gas Group 43,114,680,000 92,388,600,000

Capital management trust Vietnam Oil and Gas Group

- Receipt of trusted capital 840,000,000,000 1,615,000,000,000 - Payment for trusted capital 840,000,000,000 1,615,000,000,000 - Interest expense for capital management 109,713,333,335 187,905,146,110

PVI Insurance Corporation - Receipt of trusted capital 480,000,000,000 -- Payment for trusted capital 480,000,000,000 -- Interest expense for capital management 1,987,222,222 -

Management fee Vietnam Oil and Gas Group 1,247,460,582 847,386,828

Dividends declared PV2 Investment Joint Stock Company 2,782,080,000 8,172,360,000 Sapa Petroleum Tourism Joint Stock Company 440,871,626 -PVI Insurance Corporation 77,465,248,239 -PVI Reinsurance Company 8,105,948,493 -

Investment trust PV2 Investment Joint Stock Company

- Investment trust 150,000,000,000 50,000,000,000 - Receive principal of investment trust 125,000,000,000 -

Interest income from trusted investments

PV2 Investment Joint Stock Company 23,482,624,998 20,086,335,754 PetroVietnam Hospital Joint Stock Company 21,250,002 -

Sale from investment property Viet Housing International Investment and Development JSC

- Sale from investment property 190,374,703,314 -- Cost of Investment property 176,800,000,000 -

Revenue from offi ce leasing PV2 Investment Joint Stock Company 1,133,914,350 734,797,350 PVI Insurance Corporation 1,418,091,054 -PVI Reinsurance Company 409,064,727 -

Sale of computer software PVI Insurance Corporation

- Sale from soft-ware 1,400,000,000 -- Cost of soft-ware 1,235,000,000 -

PVI Reinsurance Company - Sale from soft-ware 650,000,000 -- Cost of soft-ware 580,000,000 -



FORM B 09-DN


28 | RELATED PARTY TRANSACTIONS AND BALANCES (Continued) VND Năm 2011 Năm 2010

Receipt share transferred Vietnam Oil and Gas Group 24,000,000,000 -PV2 Investment Joint Stock Company - 26,000,000,000

Share transfer

PVI Insurance Corporation 10,000,000,000 -PV2 Investment Joint Stock Company - 66,000,000,000

Service fees Nangluongmoi Trading & Communication Joint Stock Company 4,415,120,989 3,128,586,626 PV2 Investment Joint Stock Company - 2,231,589,505

Related party balances at the balance sheet date were as follows:

VND

31/12/2011 31/12/2010

Investment in subsidiaries

PVI Insurance Corporation 1,500,000,000,000 -


Capital contribution

PV2 Investment Joint Stock Company 162,433,335,115 141,919,200,000

Viet Housing International Investment and Development JSC 102,000,000,000 -

Nangluongmoi Trading & Communication Joint Stock Company 46,912,303,800 51,057,034,200

Sapa Petroleum Tourism Joint Stock Company 45,894,557,965 46,139,960,000

PetroVietnam Insurance Service Joint Stock Company - 10,000,000,000

PetroVietnam Finance Fund Management Inc. 24,000,000,000 -

PetroVietnam Hospital Joint Stock Company 25,000,000,000 -

Investment trust


Other short-term investments


Receivables


PVI Insurance Corporation 51,365,407,701 -


Payables

Vietnam Oil and Gas Group 142,415,165,558 43,114,680,000


PVI Insurance Corporation 6,230,761,597 -




FORM B 09-DN


Remuneration of the Board of General Director

Remuneration paid to the Board of General Directors during the year was VND 4,118,939,869 (2010: VND 5,717,846,486).

29 | COMPARATIVE FIGURES

As presented in Note 2, comparative fi gures have been reclassifi ed and restated in comparison with the audited fi nancial statements for the year ended 31 December 2010. However, the presentations of comparative fi gures are for reference purpose only because the Company has changes in its operation. From 01 August 2011, the Company no longer directly operates in insurance activities as this activity has been transferred to PVI Insurance Corporation; therefore, the Income statement of the Company only includes revenue and expenditure of insurance activities for the period from 01 January 2011 to 31 July 2011. In addition, the Company’s Balance sheet no longer includes items related to insurance activities as at 31 December 2011.

Bui Van Thuan

General Director

Phung Tuan Kien

Chief Accountant

20 February 2012

Audited ConsolidatedFinancial Statements



Statement Of The Board Of General Directors

The Board of General Directors of PVI Holdings (“the Company”) presents this report together with the Company’s consolidated fi nancial statements for the year ended 31 December 2011.

1 | THE BOARDS OF MANAGEMENT AND GENERAL DIRECTORS

The members of the Boards of Management and General Directors of the Company who held offi ce during the year and at the date of this report are as follows:

Board of Management

Mr. Nguyen Anh Tuan ChairmanMr. Ton Thien Viet Vice ChairmanMr. Bui Van Thuan MemberMr. Tran Van Kim Member (resigned on 15 April 2011)Mr. Nguyen Khuyen Nguon MemberMr. Tran Van Quy Member (appointed on 15 April 2011)Mr. Patrick Claude Choff el Member (appointed on 15 April 2011)

Board of General Directors

Mr. Bui Van Thuan General Director

Mr. Pham Khac Dung Deputy General DirectorMr. Nguyen Hoang Tuan Deputy General DirectorMr. Vu Van Thang Deputy General DirectorMr. Nguyen Ngoc Minh Deputy General DirectorMr. Truong Quoc Lam Deputy General DirectorMr. Pham Anh Duc Deputy General Director


Statement OfThe Board Of General Directors (continued)

2 | BOARD OF GENERAL DIRECTORS’ STATEMENT OF RESPONSIBILITY

The Board of General Directors of the Company is responsible for preparing the consolidated fi nancial statements for the year ended 31 December 2011, which gives a true and fair view of the fi nancial position of the Company and of its results and cash fl ows for the year. In preparing these consolidated fi nancial statements, the Board of General Directors is required to:

Select suitable accounting policies and then apply them consistently; Make judgments and estimates that are reasonable and prudent; State whether applicable accounting principles have been followed, subject to any material departures disclosed

and explained in the consolidated fi nancial statements; Prepare the consolidated fi nancial statements on the going concern basis unless it is inappropriate to presume

that the Company will continue in business; and Design and implement an eff ective internal control system for the purpose of properly preparing and presenting

the consolidated fi nancial statements so as to minimize errors and frauds.

The Board of General Directors of the Company is responsible for ensuring that proper accounting records are kept, which disclose, with reasonable accuracy at any time, the fi nancial position of the Company and that the consolidated fi nancial statements comply with Vietnamese Accounting Standards, Vietnamese Accounting System and prevailing relevant regulations in Vietnam. The Board of General Directors is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of frauds and other irregularities.

The Board of General Directors confi rms that the Company has complied with the above requirements in preparing these consolidated fi nancial statements.

For and on behalf of the Board of General Directors,

Bui Van Thuan

General Director

20 February 2012



12A Floor, Vinaconex Tower34 Lang Ha Street, Dong Da DictrictHa Noi, VietnamTel: +84 4 6288 3568Fax: +84 4 6288 5678www.deloitte.com/vn

No: 930/Deloitte-AUDHN-RE

Auditors’ Report

To: The shareholders, the Boards of Management and General Directors PVI Holdings We have audited the accompanying consolidated balance sheet of PVI Holdings (“the Company”) as at 31 December 2011, the related consolidated statements of income and consolidated cash fl ows for the year then ended, and the notes thereto (collectively referred to as “the consolidated fi nancial statements”), as set out from page 78 to page 103 The accompanying consolidated fi nancial statements are not intended to present the consolidated fi nancial position, results of operations and cash fl ows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Vietnam.

Respective Responsibilities of the Board of General Directors and Auditors

As stated in the Statement of the Board of General Directors on page 75, these consolidated fi nancial statements are the responsibility of the Company’s Board of General Directors. Our responsibility is to express an opinion on these consolidated fi nancial statements based on our audit.

Basis of Opinion

W e have conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance that the consolidated fi nancial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by management, as well as evaluating the overall consolidated fi nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

Opinion

In our opinion, the accompanying consolidated fi nancial statements give a true and fair view of, in all material respects, the consolidated fi nancial position of the Company as at 31 December 2011 and the results of its operations and its cash fl ows for the year then ended in accordance with Vietnamese Accounting Standards, Vietnamese Accounting System and prevailing relevant regulations in Vietnam.

Khuc Thi Lan Anh Tran Duy Cuong

Deputy General Director Auditor

CPA Certifi cate No. D.0036/KTV CPA Certifi cate No. 0797/KTV

For and on behalf of


20 February 2012Hanoi,S.R. Vietnam


The notes set out on pages 82 to page 103 are an integral part of these consolidated fi nancial statements

FORM B 01-DN/HN

Consolidated Balance SheetAs at 31 December 2011

Unit: VND

ASSETS Codes Notes 31/12/2011 31/12/2010

A. CURRENT ASSETS(100=110+120+130+140+150) 100 6,060,882,350,961 4,650,480,740,255

I. Cash and cash equivalents 110 5 686,565,126,049 561,484,924,260

1. Cash 111 272,565,126,049 201,484,924,260 2. Cash equivalents 112 414,000,000,000 360,000,000,000

II. Short-term fi nancial investments 120 6 4,182,683,563,297 3,172,614,166,694

1. Short-term investments 121 4,292,244,806,144 3,205,446,950,907 2. Provision for diminution in value of short-term

investments129 (109,561,242,847) (32,832,784,213)

III. Short-term receivables 130 1,111,821,008,652 862,874,924,061

1. Trade accounts receivable 131 7 1,034,158,831,183 731,751,142,540 2. Advances to suppliers 132 67,559,720,527 92,590,931,857 3. Other receivables 135 55,774,538,400 60,737,841,161 4. Provision for short-term doubtful debts 139 (45,672,081,458) (22,204,991,497)

IV. Inventories 140 1,023,689,350 85,800,000

1. Inventories 141 1,023,689,350 85,800,000 V. Other short-term assets 150 78,788,963,613 53,420,925,240

1. Short-term prepayments 151 7,548,820,316 10,140,863,892 2. Value added tax deductibles 152 5,464,493,851 826,004,535 3. Other short-term assets 158 8 65,775,649,446 42,454,056,813

B. NON-CURRENT ASSETS(200=220+250+260) 200 2,133,987,828,873 1,802,621,718,182

I. Fixed assets 220 540,205,128,532 319,852,848,801

1. Tangible fi xed assets 221 9 47,541,099,023 46,047,206,340 Cost 222 123,855,970,314 112,220,314,737 Accumulated depreciation 223 (76,314,871,291) (66,173,108,397)

2. Intangible fi xed assets 227 10 41,262,425,272 43,328,011,151 Cost 228 56,520,325,422 52,335,778,511 Accumulated amortization 229 (15,257,900,150) (9,007,767,360)

3. Construction in progress 230 11 451,401,604,237 230,477,631,310 II. Long-term fi nancial investments 250 1,443,645,584,415 1,309,775,007,664

1. Investments in associates 252 12 421,007,557,671 249,116,194,200 2. Other long-term investments 258 13 1,145,091,899,026 1,096,115,166,466 3. Provision for diminution in value of long-term

fi nancial investments259 13 (122,453,872,282) (35,456,353,002)

III. Other long-term assets 260 150,137,115,926 172,993,861,717

1. Long-term prepayments 261 14 135,345,435,486 164,081,910,726 2. Other long-term assets 268 14,791,680,440 8,911,950,991

TOTAL ASSETS (270=100+200) 270 8,194,870,179,834 6,453,102,458,437


FORM B 01-DN/HN

Consolidated Balance Sheet (continued)As at 31 December 2011


Unit: VND

RESOURCES Codes Notes 31/12/2011 31/12/2010

A. LIABILITIES (300=310+330) 300 2,733,521,213,907 2,845,714,660,847

I. Current liabilities 310 2,731,262,122,357 2,843,441,552,997 1. Trade accounts payable 312 15 945,537,876,105 664,613,209,604 2. Advances from customers 313 20,540,927,887 4,491,878,000 3. Taxes and amounts payable to the State budget 314 16 44,006,838,543 19,173,956,209 4. Payables to employees 315 46,533,322,682 24,317,800,620 5. Accrued expenses 316 2,689,572,627 18,363,250 6. Other current payables 319 17 260,685,723,360 919,924,124,315 7. Short-term provisions 320 18 1,383,570,860,048 1,187,236,883,380 8. Bonus and welfare funds 323 27,697,001,105 23,665,337,619

II. Long-term liabilities 330 2,259,091,550 2,273,107,850

1. Other long-term payables 333 13,000,000 16,000,000 2. Provision for severance allowance 336 2,246,091,550 2,257,107,850

B. EQUITY (400=410) 400 5,461,348,965,927 3,607,387,797,590

I. Owner’s equity 410 5,461,348,965,927 3,607,387,797,590 1. Charter capital 411 19 2,129,471,520,000 1,597,103,640,000 2. Share premium 412 19 2,974,771,778,198 1,622,092,724,471 3. Treasury shares 414 19 (124,322,427,350) (14,854,448,300)4. Foreign exchange reserve 416 (3,470,275,408) (9,463,613,253)5. Investment and development funds 417 179,211,820,775 179,564,189,409 6. Other owner’s funds 419 51,638,058,907 36,870,953,284 7. Retained earnings 420 19 254,048,490,805 196,074,351,979

TOTAL RESOURCES (440 = 300+ 400) 440 8,194,870,179,834 6,453,102,458,437

OFF-BALANCE SHEET ITEMS

ITEMS Unit 31/12/2011 31/12/2010

1 Direct insurance contract of which liabilities not yet to incurred VND 1,214,226,405,393 1,143,289,786,656 2 Claims receivable from third parties VND 34,886,486,635 30,222,950,562 3 Foreign currencies:

United States Dollar USD 10,484,305.37 5,685,240.54European Currency Unit EUR 42,426.50 655.90

Bui Van Thuan

General Director

Phung Tuan Kien

Chief Accountant

20 February 2012


FORM B 02-DN/HN

Consolidated Income StatementFor the year ended 31 December 2011

Unit: VND

Items Codes Notes 2011 2010

1. Gross sales 01 20 4,898,550,688,346 3,985,254,404,809

2. Deductions 02 21 147,407,622,625 315,623,408,923

3. Net sales (10 = 01 - 02) 10 4,751,143,065,721 3,669,630,995,886

4. Cost of sales 11 22 3,586,942,307,393 2,842,501,560,986

5. Gross profi t from sales (20=10-11) 20 1,164,200,758,328 827,129,434,900

6. Financial income 21 23 849,742,957,109 607,270,254,892

7. Financial expenses 22 24 580,178,717,971 309,375,815,217

8. Selling expenses 24 787,068,015,209 609,552,460,752

9. General and administration expenses 25 237,867,695,525 180,128,807,059

10. Operating profi t

{30 = 20 + (21 - 22) - (24 + 25)}

30

408,829,286,732

335,342,606,764

11. Other income 31 54,451,327,371 769,694,697

12. Other expenses 32 50,190,644 86,297,949

13. Profi t from other activities (40 = 31 - 32) 40 54,401,136,727 683,396,748

14. Share of associates’ net profi t 45 4,767,360,791 -

15. Accounting profi t before tax (50 = 30 + 40 + 45) 50 467,997,784,250 336,026,003,512

16. Current corporate income tax expense 51 25 120,370,549,130 39,386,184,598

17. Net profi t after corporate income tax

(60 = 50 – 51)

60

347,627,235,120

296,639,818,914

18. Basic earnings per share 70 26 2,066 2,189

Bui Van Thuan

General Director

Phung Tuan Kien

Chief Accountant

20 February 2012



FORM B 03-DN/HN

Consolidated Cash Flow StatementFor the year ended 31 December 2011 (Direct method)

Unit: VND

Items Codes 2011 2010

I Cash fl ows from operating activities

1. Receipt from sales, services and others 01 4,358,771,035,654 3,694,849,918,391 2. Payment to suppliers for goods and services 02 (3,421,005,856,505) (3,086,877,156,781)3. Payment to employees 03 (207,394,780,342) (185,608,983,699)4. Payment of interest 04 - (10,368,463,926)5. Payment for corporate income taxe and others to the state budget 05 (421,113,147,007) (292,487,185,166)6. Other receipts from operating activities 06 2,081,978,627,084 3,376,008,894,407 7. Other payments for operating activities 07 (1,819,895,990,616) (3,623,876,675,411)

Net cash from/ (used in) operating activities 20 571,339,888,268 (128,359,652,185)

II Cash fl ows from investing activities

1. Acquisition and construction of fi xed assets and other long-term assets

21 (203,057,932,799) (191,940,487,863)

2. Proceeds from sale, disposals of fi xed assets and other long-term assets

22 190,487,430,587 6,818,182

3. Cash out fl ow for lending, buying debt instruments of other entities

23 (9,429,927,095,804) (8,009,590,910,174)

4. Cash recovered from lending, selling debt instruments of other entities

24 7,281,665,202,153 6,400,298,648,560

5. Investments in other entities 25 (384,395,429,630) (462,337,616,926)6. Cash recovered from investments in other entities 26 30,688,028,700 29,545,100,000 7. Interest earned, dividends and profi ts received 27 416,276,357,364 449,539,384,341

Net cash (used in) investing activities 30 (2,098,263,439,429) (1,784,479,063,880)

III Cash fl ows from fi nancing activities

1. Proceeds from issuing stocks, receiving capital from owners 31 1,916,524,368,000 1,167,640,540,000 2. Capital withdrawals, buying treasury shares 32 (109,467,979,050) - 3. Proceeds from borrowings 33 - 135,315,555,556 4. Repayment of borrowings 34 - (135,315,555,556)5. Dividends, profi ts paid 36 (155,052,636,000) (172,108,002,000)

Net cash from fi nancing activities 40 1,652,003,752,950 995,532,538,000

Net increase/(decrease) in cash 50 125,080,201,789 (917,306,178,065)

Cash and cash equivalents at the beginning of the year 60 561,484,924,260 1,478,791,102,325

Cash and cash equivalents at the end of the year 70 686,565,126,049 561,484,924,260

Bui Van Thuan

General Director

Phung Tuan Kien

Chief Accountant

20 February 2012



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

Notes To The Consolidated Financial Statements For the year ended 31 December 2011

FORM B 09-DN/HN

1 | GENERAL INFORMATION

Structure of ownership

PVI Holdings (“the Company”), was formerly known as PetroVietnam Insurance Joint Stock Corporation established and operating under License No. 42 GP/KDBH dated 12 March 2007 issued by the Ministry of Finance. On 28 June 2011, the 12th amended Business License No. 0100151161 was granted to PetroVietnam Insurance Joint Stock Corporation by Hanoi Department of Planning and Investment, in which the Company’s name was changed to PVI Holdings (“PVI”) and some other principal activities were added.

The Company has offi cially operated based on Holding Company-Subsidiary Model under the new Business License since 01 August 2011.

Subsidiaries and associates

The Company owns 2 subsidiaries:

PVI Insurance Corporation (PVI Insurance) PVI Re-insurance Company (PVI Re-insurance)

Details of subsidiaries:

Subsidiaries Address Bussiness Charter Capital Ratio

PVI Insurance Corporation 154 Nguyen Thai Hoc, Ba Dinh District, Hanoi

Insurance business 1,500,000,000,000 100%

PVI Reinsurance Company 154 Nguyen Thai Hoc, Ba Dinh District, Hanoi

Reinsurance business 460,000,000,000 100%

The Company has 7 associates as follows:

PV2 Investment Joint Stock Company (PV2)Viet Housing International Development and Investment Joint Stock Company Nangluongmoi Trading and Communication Joint Stock CompanySapa Petroleum Tourism Joint Stock Company (PVST)PetroVietnam Insurance Service Joint Stock Company (PVI Services)PetroVietnam Finance Fund Management Incorporation (PVFC Capital)Petro Vietnam Hospital Joint Stock Company (PVH)


The Company’s principal activities include:

Asset holdings; Financial services; Insurance business (prior to 01 August 2011).

The number of employees of the Company (consolidated) as at 31 December 2011 was 1,450(31 December 2010: 1,343).


Notes To The Consolidated Financial Statements (continued)For the year ended 31 December 2011

FORM B 09-DN/HN


2 | ACCOUNTING CONVENTION AND ACCOUNTING PERIOD

Accounting convention

The accompanying consolidated fi nancial statements, expressed in Vietnam Dong (VND), are prepared under the historical cost convention and in accordance with Vietnamese Accounting Standards, Vietnamese Accounting System and prevailing relevant regulations in Vietnam.

The accompanying consolidated fi nancial statements are not intended to present the fi nancial position, results of operations and cash fl ows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Vietnam.

Accounting period

The Company’s fi nancial year begins on 01 January and ends on 31 December.

3 | ADOPTION OF NEW ACCOUNTING GUIDANCE

On 06 November 2009, the Ministry of Finance issued Circular No.210/2009/TT-BTC (“Circular 210”) guiding the application of International Financial Reporting Standards on presentation of fi nancial statements and disclosures of fi nancial instruments. The adoption of Circular 210 requires disclosures of certain fi nancial instruments as well as the eff ect thereof on the fi nancial statements. This Circular is eff ective for the fi nancial year ending on or after 31 December 2011. The Company has adopted Circular 210 and additional notes on this application to the fi nancial statements for the year ended 31 December 2011 are set out in Note 28.

4 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The signifi cant accounting policies, which have been adopted by the Company in the preparation of these consolidated fi nancial statements, are as follows:

Estimates

The preparation of consolidated fi nancial statements in conformity with Vietnamese Accounting Standards, Vietnamese Accounting System and prevailing relevant regulations in Vietnam requires management to make estimates and assumptions that aff ect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the consolidated fi nancial statements and the reported amounts of revenues and expenses during the fi nancial year. Actual results could diff er from those estimates.

Basis of consolidation

The consolidated fi nancial statements incorporate the fi nancial statements of the Company and enterprises controlled by the Company (its subsidiaries) up to 31 December each year. Control is achieved where the Company has the power to govern the fi nancial and operating policies of an investee enterprise so as to obtain benefi ts from its activities.

The results of subsidiaries acquired or disposed of during the reporting period are included in the consolidated income statement from the eff ective date of acquisition or up to the eff ective date of disposal, as appropriate.

Where necessary, adjustments are made to the fi nancial statements of subsidiaries to bring the accounting policies used in line with those used by the Company.

All inter-company transactions and balances between group enterprises are eliminated on consolidation.



FORM B 09-DN/HN



Basis of consolidation

Minority interests in the net assets of consolidated subsidiaries are identifi ed separately from the Company’s equity therein. Minority interests consist of the amount of those interests at the date of the original business combination (see below) and the minority’s share of changes in equity since the date of the combination. Losses applicable to the minority in excess of the minority’s interest in the subsidiary’s equity are allocated against the interests of the Company except to the extent that the minority has a binding obligation and is able to make an additional investment to cover the losses.

Currently, the Company owns 100% subsidiaries’ charter capital; therefore, no minority interests was identifi ed in the consolidated fi nancial statements.

Business combinations

On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifi able net assets acquired is recognised as goodwill. Any defi ciency of the cost of acquisition below the fair values of the identifi able net assets acquired is credited to profi t and loss in the period of acquisition.

The interest of minority shareholders is initially measured at the minority’s proportion of the net fair value of the assets, liabilities and contingent liabilities recognised.

Currently, the Company owns 100% subsidiaries’ charter capital, so no minority interests was identifi ed in the consolidated fi nancial statements.

Financial instruments

Initial recognition

Financial assets

At the date of initial recognition, fi nancial assets are recognized at cost plus transaction costs that are directly attributable to the acquisition of the fi nancial assets.

Financial assets comprise cash and short-term deposits, receivables and other receivables, investments and other fi nancial assets.

Financial liabilities

At the date of initial recognition fi nancial liabilities are recognized at cost net of transaction costs that are directly attributable to the issue of the fi nancial liabilities. Financial liabilities comprise trade payables, accrual expenses, other payables and other fi nancial liabilities.

Re-measurement after initial recognition

Currently there are no requirements for the re-measurement of the fi nancial instruments after initial recognition.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignifi cant risk of changes in value.



FORM B 09-DN/HN


Provision for doubtful debts

Provision for doubtful debts is made for receivables that are overdue for six months or more, or when the debtor is in dissolution, in bankruptcy, or is experiencing similar diffi culties and so may be unable to repay the debt.

Tangible fi xed assets and depreciation

Tangible fi xed assets are stated at cost less accumulated depreciation.

The cost of purchased tangible fi xed assets comprise their purchase price and any directly attributable costs of bringing the assets to their working condition and location for their intended use.

Tangible fi xed assets are depreciated using the straight-line method over their estimated useful lives as follows:2011

Buildings, structures YearsMotor vehicles 25Offi ce equipment 6

3 - 5

Intangible fi xed assets and amortisation

Intangible fi xed assets are stated at cost less accumulated amortisation.

Intangible fi xed assets represent land use rights, accounting software, management software, and copyrights of other softwares (collectively referred to as “computer softwares”). Computer softwares are amortized using the straight-line method over their estimated useful lives. Long-term land use right is not depreciated in line with prevailing regulations.

Diff erence from revaluation of state’s net assets in equitisation

On 20 October 2009, the Ministry of Finance issued Circular No. 203/2009/TT-BTC guiding regime on management, use and depreciation of fi xed assets for enterprises established and operating in Vietnam. Accordingly, “where a wholly State-owned enterprise undergoes enterprise valuation by the discounted cash fl ow (DCF) method for equitisation purposes and there is an increase in the actual value of the State portion compared to the value recorded in the books of accounts. Such increase shall not be recorded as to an intangible fi xed asset and gradually allocated to production and business expenses during a period not to exceed 10 years. The time for commencing the allocation to expenses shall be the time when the enterprise offi cially converts to a joint stock company (as per its business registration certifi cate)”. Circular No. 203/2009/TT-BTC eff ective from 01 January 2010 was applied by the Company to record the diff erence of VND 213,785,395,213 between the actual value of the State portion as at 31 December 2005 (prior to the equitisation) and the book value of state’s net assets as long-term prepaid expenses. Such long-term prepayments are amortised over 8 years from 2009.

Construction in progress

Properties in the course of construction for production, rental or administrative purposes, or for the purposes not yet determined, are carried at cost. Cost includes professional fees, and for qualifying assets, borrowing costs dealt with in accordance with the Company’s accounting policy. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.



FORM B 09-DN/HN



Investments in associates

An associate is an entity over which the Company has signifi cant infl uence and that is neither a subsidiary nor an interest in joint venture. Signifi cant infl uence is the power to participate in the fi nancial and operating policy decisions of the investee but not control or joint control over those policies.

The results and assets and liabilities of associates are incorporated in these consolidated fi nancial statements using the equity method of accounting. Interests in associates are carried in the consolidated balance sheet at cost as adjusted by post-acquisition changes in the Company’s share of the net assets of the associate. Losses of an associate in excess of the Company’s interest in that associate (which includes any long-term interests that, in substance, form part of the Company’s net investment in the associate) are not recognised.

Where a group entity transacts with an associate of the Company, unrealised profi ts and losses are eliminated to the extent of the Company’s interest in the relevant associate.

Investments in securities

Investments in securities are recognised on the trade date basis and are initially measured at cost including directly attributable transaction costs.

At the subsequent reporting dates, investments in securities are measured at cost, less provisions for diminution in value of securities investments. The Company makes provisions for listed securities based on their closing prices as at the year end. For unlisted securities, the Company makes provision based on the average price quoted by securities companies : Sacombank Securities Joint Stock Company, ACB Securities Company Limited, Vietnam Investment Review and website www.stocknews.vn.

For the other long-term investments in securities, the Company makes provisions based on the investees’ latest fi nancial statements and the Board of General Directors believes that there is not any change in the their fi nancial statements as at 31 December 2011 that has signifi cant impacts on provisions made by the Company. The Company did not make provisions for diminution in value of the investments in the companies that are under construction and have planned losses as stipulated in Circular No. 228/2009/TT-BTC dated 07 December 2009 issued by the Ministry of Finance.

Foreign currencies

The Company applies the method of recording foreign exchange diff erences in accordance with Circular No.201/2009/TT-BTC dated 15 October 2009 issued by the Ministry of Finance. Accordingly, transactions arising in foreign currencies are translated at exchange rates ruling at the transaction date. Foreign exchange diff erences arising from these transactions are recognised in the consolidated income statement.

Monetary assets and liabilities denominated in foreign currencies are retranslated at the rates of exchange prevailing on the consolidated balance sheet date and are accounted for as follows:

– Foreign exchange diff erences arising from revaluation of monetary items, short-term receivables and payables denominated in foreign currencies at the consolidated balance sheet date are recorded in the balance sheet under the account “foreign exchange reserve” in the “Owner’s equity”.

– Foreign exchange diff erences arising from revaluation of long-term receivables and payables are recorded in the consolidated income statement for the year.



FORM B 09-DN/HN


The recognition of foreign exchange diff erences in accordance with Circular No.201/2009/TT-BTC diff ers from that as regulated in Vietnamese Accounting Standard No. 10 (VAS 10) “Eff ects of changes in foreign exchange rates”. According to VAS 10, all foreign exchange diff erences arising from revaluation of balances denominated in foreign currencies at the consolidated balance sheet date are recognized in the consolidated income statement. The Board of General Directors has decided to recognise foreign exchange diff erences as guided in Circular No. 201/2009/TT-BTC and believes that such application and disclosure of diff erences at the same time, in the case where the Company would apply VAS10, may provide more information to users of consolidated fi nancial statements. Accordingly, the adoption of Circular No. 201/2009/TT-BTC in recording foreign exchange diff erences will make the Company’s profi t before tax for the year 2011 decrease by VND 5,993,337,845 (for the year 2010 decrease by VND 4,340,530,848) and the “Foreign exchange reserve” account under the owners’ equity section in the balance sheet as at 31 December 2011 decrease by VND 3,470,275,408, compared with applying VAS 10.

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specifi c borrowings pending their expenditure on qualifying assets is deducted from the cost of those assets.

All other borrowing costs are recognised in the consolidated income statement when incurred.

Taxation

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

As per Circular No. 134/2007/TT-BTC dated 23 November 2007 (replaced by Circular No.130/2008/TT-BTC dated 26 December 2008), the Company is entitled to corporate income tax exemption for the fi rst two years from its commencement of operations and a 50% reduction for the two years thereafter. Year 2010 is the last year the Company was entitled to the above tax incentives, accordingly, from 2011; it is entitled to a 25% normal tax rate of corporate income tax.

The tax currently payable is based on taxable profi t for the year. Taxable profi t diff ers from net profi t as reported in the consolidated income statement because it excludes items of income or expense that are taxable or deductible in other years (including loss carried forward, if any) and it further excludes items that are never taxable or deductible.

Deferred tax is recognized on signifi cant diff erences between carrying amounts of assets and liabilities in the consolidated fi nancial statements and the corresponding tax bases used in the computation of taxable profi t and are accounted for using balance sheet liability method. Deferred tax liabilities are generally recognized for all temporary diff erences and deferred tax assets are recognized to the extent that it is probable that taxable profi t will be available against which deductible temporary diff erences can be utilized. As there was no signifi cant temporary diff erence during the year, the Company did not recognise any deferred tax in these consolidated fi nancial statements.

Deferred tax is calculated at the tax rates that are expected to apply in the year when the liability is settled or the asset realised. Deferred tax is charged or credited to profi t or loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Deferred tax assets and liabilities are off set when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

The determination of the current tax expense payable is based on the current interpretation of tax regulations. However, these regulations are subject to periodic variation and their ultimate determination depends on the results of the tax authorities’ examination.

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



FORM B 09-DN/HN



Provisions

Provisions are recognised when the Company has a present obligation as a result of a past event, and it is probable that the Company will be required to settle that obligation. Provisions are measured at the management’s best estimate of the expenditure required to settle the obligation at the consolidated balance sheet date.

Enterprise funds

All profi t is used to pay dividends for shareholders, allocate to bonus and welfare funds, investment and development funds and bonus fund for the management. The allocation ratio shall be decided at the Shareholders’ General Meeting as per the request of the Board of Management. However, according to the Company’s Charter, the Board of Management is able to pay mid-year dividends if they are certain about the profi t of the Company.

Revenue recognition

Revenue of a transaction involving the rendering of services is recognised when the outcome of such transactions can be measured reliably. Where a transaction involving the rendering of services is attributable to several periods, revenue is recognised in each period by reference to the percentage of completion of the transaction at the consolidated balance sheet date of that period. The outcome of a transaction can be measured reliably when all four (4) following conditions are satisfi ed:

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

(b) it is probable that the economic benefi ts associated with the transaction will fl ow to the Company;

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

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

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

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

Signifi cant accounting policies related to insurance business

Underwriting reserves

The Company makes underwriting reserves as regulated in Article 96 of the Law on Insurance Business, Decree No. 46/2007/ND-CP dated 27 March 2007, Circular No. 156/2007/TT-BTC issued by the Ministry of Finance on 20 December 2007 (amended and supplemented by Circular No. 86/2009/TT-BTC dated 28 April 2009), accordingly:

Unearned premium reserve: Unearned premium reserve is provided for in line with 1/24 method. In 2010, unearned premium reserve is provided for in line with proportion method. The adoption of 1/24 method creates an increase in profi t after tax of approximately VND 100 billion in comparison with the proportion method.

Claim reserve: The Company provides reserve against losses that incurred and reported, using the statistics of retention liabilities for each estimated loss for both of direct policies and reinsurance policies. Provisions for loss incurred but not reported (IBNR) have been evaluated based on statistical of historical data..



FORM B 09-DN/HN


Catastrophe reserve: In accordance with Vietnamese Accounting Standard No. 19-“Insurance Contract”, reserve to cover the losses in the future of which the claims did not appear at the consolidated balance sheet date (including catastrophe reserve) is deemed not necessary. However, following regulations of the Ministry of Finance, the Company’s catastrophe reserve for all types of insurance services were consistently provided at 3% of the premium retained in the year.

Revenue recognition

Direct insurance premium

Direct insurance premium of the Company is recognized when the issued policy comes into eff ect or divided into collectible terms for long period policies.

Re-insurance premium

Premium from re-insurance activities is recorded at the amount stated on the reinsures’ statement sent to the Company and confi rmed by the Company.

Premium of reinsurance outward is recorded at the amount that has incurred for transferring to the reinsurers, corresponding to the revenue of direct premium recorded in the year.

Expenses

Claim settlement expenses of direct insurance are recorded as incurred, that is, when the Company accepts to settle the insured’s claims following respective settlement notice.

Claim settlements of reinsurance inward activities are recorded as incurred following the statement of accounts the reinsures sent to the Company and the claim is accepted by the Company.

Claim recoverable from the reinsures is recognized based on the receivable amount incurred corresponding with the claim settlement expenses recorded in the year and the ceded ratios.

Commission from direct insurance activities and other expenses are recognized when incurred.

5 | CASH AND CASH EQUIVALENTS

Unit: VND 31/12/2011 31/12/2010

Cash on hand 1,535,213,278 2,427,245,759Cash in bank 269,564,764,371 199,047,478,501Cash in transit 1,465,148,400 10,200,000Cash equivalents (*) 414,000,000,000 360,000,000,000

686,565,126,049 561,484,924,260

(*): Cash equivalents represent term deposits at domestic credit institutions which will fall due within three months.



FORM B 09-DN/HN


6 | SHORT-TERM FINANCIAL INVESTMENTS

Unit: VND

31/12/2011 31/12/2010

Short-term investments in securities 135,590,622,326 117,552,583,807 Repurchase agreements (i) 278,826,000,000 463,402,200,000 Term deposits at credit institutions (ii) 2,478,000,000,000 1,760,000,000,000 Short-term investment trust (iii) 100,000,000,000 50,000,000,000 Contracts of investment in listed securities (iv) 339,828,183,818 814,492,167,100 Contracts of investment in real-estate (v) 910,000,000,000 - Other short-term investments 50,000,000,000 - Provision for diminution in value of short-term investments in securities

(109,561,242,847) (32,832,784,213)

4,182,683,563,297 3,172,614,166,694

(i) Under the repurchase agreements, the Company gains fi xed interest and bears no risk. The Company bears credit risk and is warranted by selling of the securities.

(ii) Represent term deposits at domestic credit institutions which will fall due from 3 months to 12 months.

(iii) Under the short-term investment trust agreements, the Company gains fi xed interest and bears no risk The Company bears credit risk and is not warranted by collaterals.

(iv) Under co-operation contract of investment in listed securities, the Company contributes capital with other partners for purchasing listed securities, enjoys fi xed interest and does not bear any risk from the investments; the Company has the right to blockade and sell securities to recover its capital, in case the market price decreases by 30% in comparison with the reference price stated in the investment co-operation contract. The contract has an eff ective duration of 1 year and can be early terminated. The Company fully made provision for over due contracts which are assessed to be diffi cult to be recovered.

(v) Under co-operation contract of investment in real estates, the Company contributes capital with other partners in real estate projects, enjoys fi xed interest and does not bear any risk from the investments. The Company received collaterals of real estates that are evaluated by evaluation fi rms. In case partners failed to fufi ll their obligations to the Company, the Company has right to sell the collaterals to recover the invested capital. The contract has an eff ective duration of 1 year and can be early terminated if agreement is made by both parties.

7 | TRADE ACCOUNTS RECEIVABLE

VND 31/12/2011 31/12/2010

Receivables from direct insurance premium 245,238,501,137 231,734,842,097

Receivables from reinsurance - inward 115,612,810,391 67,761,307,870

Receivables from reinsurance - outward 282,059,831,517 170,813,877,187

Receivables from fi nancial investments 388,409,380,959 259,111,468,023

Other trade accounts receivable 2,838,307,179 2,329,647,363

1,034,158,831,183 731,751,142,540



FORM B 09-DN/HN


8 | OTHER SHORT-TERM ASSETS

Unit: VND

31/12/2011 31/12/2010

Advance to employees 23,280,512,426 24,309,089,208 Short-term deposit and mortgages 42,495,137,020 18,144,967,605

65,775,649,446 42,454,056,813

9 | TANGIBLE FIXED ASSETS

Unit: VNDBuildings and Motor Offi ce

structures vehicles equipment Total

COST

As at 01/01/2011 28,559,715,265 31,427,344,132 52,233,255,340 112,220,314,737 Additions - 8,364,212,909 7,576,048,827 15,940,261,736 Disposals - 1,633,734,182 2,556,955,937 4,190,690,119 Other decreases 89,756,321 24,159,719 113,916,040

As at 31/12/2011 28,559,715,265 38,068,066,538 57,228,188,511 123,855,970,314

ACCUMULATED DEPRECIATION

As at 01/01/2011 10,036,041,820 17,980,706,187 38,156,360,390 66,173,108,397 Charge for the year 1,269,533,258 4,948,264,560 8,686,687,547 14,904,485,365 Decreases - 1,866,512,386 2,896,210,085 4,762,722,471

As at 31/12/2011 11,305,575,078 21,062,458,361 43,946,837,852 76,314,871,291

NET BOOK VALUE

As at 31/12/2011 17,254,140,187 17,005,608,177 13,281,350,659 47,541,099,023

As at 31/12/2010 18,523,673,445 13,446,637,945 14,076,894,950 46,047,206,340

10 | INTANGIBLE FIXED ASSETS

Unit: VND

Computer

softwares

Land

use rights

Total

COST

As at 01/01/2010 19,390,811,482 32,944,967,029 52,335,778,511Additions 9,182,500,000 7,354,899,900 16,537,399,900Decrease - 12,352,852,989 12,352,852,989

As at 31/12/2011 28,573,311,482 27,947,013,940 56,520,325,422

ACCUMULATED AMORTISATION

As at 01/01/2010 9,007,767,360 - 9,007,767,360Charge for the year 6,250,132,790 - 6,250,132,790

As at 31/12/2011 15,257,900,150 - 15,257,900,150

NET BOOK VALUE

As at 31/12/2011 13,315,411,332 27,947,013,940 41,262,425,272

As at 31/12/2011 10,383,044,122 32,944,967,029 43,328,011,151



FORM B 09-DN/HN


11 | CONSTRUCTION IN PROGRESS

Unir: VND

31/12/2011 31/12/2010

Offi ce building Project at No. 20 Pham Ngoc Thach (Ho Chi Minh City) - 15,585,745,534 PVI Offi ce Building Project at Yen Hoa, Cau Giay, Hanoi 445,753,639,776 214,891,885,776 Others 5,647,964,461 -

451,401,604,237 230,477,631,310

12 | INVESTMENTS IN ASSOCIATES

Unit: VND

31/12/2011 31/12/2010

PV2 Investment Joint Stock Company 162,433,335,115 141,919,200,000 Viet Housing International Development And Investment Joint Stock Company

102,000,000,000 -

Nangluongmoi Trading and Communication Joint Stock Company 46,912,303,800 51,057,034,200 Sapa Petroleum Tourism Joint Stock Company 45,894,557,965 46,139,960,000 PetroVietnam Insurance Service Joint Stock Company 10,000,000,000 10,000,000,000 PetroVietnam Finance Fund Management Inc. 24,000,000,000 - PetroVietnam Hospital Joint Stock Company 25,000,000,000 - Cost of investments in associates 416,240,196,880 249,116,194,200

Company’s share of associates’ net profi t 4,767,360,791 -

421,007,557,671 249,116,194,200

Details of the Company’s associates as at 31 December 2011 are as follows:

Name of associate Place of

incorporation

and operation

Proportion

of ownership

interest (per paid-

in share capital)%

Proportion of

voting power

held%


PV2 Investment Joint Stock Company

Hanoi, Vietnam 44.9 44.9 Real-estate bussiness and fi nance investment

Viet Housing International Development And Investment Joint Stock Company

Hanoi, Vietnam 34.0 34.0 Real- estate bussiness

Nangluongmoi Trading and Communication Joint Stock Company

Hanoi, Vietnam 74.4 74.4 Communication development, multi-media marketing, event organisation

Sapa Petroleum Tourism Joint Stock Company

Laocai, Vietnam 41.5 41.5 Tourism, travel, hotel, meals services

Petrovietnam Insurance Service Joint Stock Company

Hanoi, Vietnam 30.9 30.9 Provide repair, maintenance, salvage services

PetroVietnam Finance Fund Management Inc.

Hanoi, Vietnam 24.0 24.0 Finance Fund Management and Investment Portfolio Management

Petro Vietnam Hospital Joint Stock Company

Quang Ngai, Vietnam

50.0 50.0 Management of the operation of Dung Quat Petroleum Hospital

As at 31 December 2011, the Company had an investment in stocks of Nangluongmoi Trading and Communication Joint Stock Company (formely PetroVietnam Media Joint Stock Company) at the ownership interest proportion of 74.4%. However, the Boad of Management determined that the Company would not hold this investment in long-term. The Company, therefore, classifi ed this investment as “investments in associates” instead of “investments in subsidiaries”.



FORM B 09-DN/HN


Summarised fi nancial information in respect of the Company’s associates is as follows:

Unit: VND

31/12/2011

Total assets 1,337,899,128,867 Total liabilities 314,050,527,249 Net assets 1,023,848,601,618

Company’s share of associates’ net asset 421,007,557,671

Unit: VND2011

Gross sale 303,433,394,095 Net profi t 24,228,601,619

Company’s share of associates’ net profi t 4,767,360,791

13 | OTHER LONG-TERM INVESTMENTS

Unit: VND 31/12/2011 31/12/2010

Investments in securities (*) 453,509,599,026 429,532,866,466 Bonds (**) 458,000,000,000 433,000,000,000 Entrusted investment (***) 233,582,300,000 233,582,300,000 Total of other long-term investments 1,145,091,899,026 1,096,115,166,466

Provision for diminution in value of long-term investments (122,453,872,282) (35,456,353,002)

1,022,638,026,744 1,060,658,813,464

(*) Represents capital contribution to other companies with the holding period of more than one year.

(**) Include Government and Corporate Bonds, which fall due from one to seven years, coupon rates are in range from 10.4% to 17.9%.

(***) Represents the balance of the purpose-nominated trusted loan granted via commercial banks. According to the trusted loan agreements, the Company enjoys interest at the fl oating rate and bears risk. As at 31 December 2011, this loan was partly overdue in terms of both principal and interest. The Board of General Director believes the Company made provision on best estimate.

14 | LONG-TERM PREPAID EXPENSES

Unit: VND2011 2010

Opening balance 164,081,910,726 191,337,824,029 Additions 3,555,595,804 3,080,387,421 Allocated to expenses during the year (32,292,071,044) (30,336,300,724)

Closing balance 135,345,435,486 164,081,910,726



FORM B 09-DN/HN


15 | TRADE ACCOUNTS PAYABLE

Unit: VND 31/12/2011 31/12/2010

Payables for direct insurance activities 146,959,350,050 134,716,031,674 Payables for returned insurance premium 19,086,945,135 44,482,745,737 Payables for reinsurance premium - inward 40,791,367,596 42,491,344,602 Payables for reinsurance premium - outward 614,506,058,454 390,451,777,974 Other trade accounts payable 124,194,154,870 52,471,309,617

945,537,876,105 664,613,209,604

16 | TAXES AND AMOUNTS PAYABLE TO THE STATE BUDGET

Unit: VND

31/12/2010 Movement during the period 31/12/2011

Payables Paid

Value Added Tax for domestic sales 3,503,611,337 299,299,125,351 300,353,305,172 2,449,431,516 Corporate Income Tax 10,362,512,053 120,370,549,130 97,097,956,989 33,635,104,194

Land tax and land rentals - 341,443,000 341,443,000 -

Business licence tax - 44,500,000 44,500,000 -

Other taxes and charges payable 5,307,832,819 26,586,074,535 23,971,604,521 7,922,302,833

19,173,956,209 446,641,692,016 421,808,809,682 44,006,838,543

17 | OTHER CURRENT PAYABLES

Unit: VND

31/12/2011 31/12/2010

Ocean Commerial Joint Stock Bank - 840,000,000,000 Vietnam Oil and Gas Group 142,415,165,558 43,114,680,000 PetroVietnam Finance Joint Stock Coporation 50,021,250,002 - Vietnam Hospital Joint Stock Company 45,227,388,888 - Others 23,021,918,912 36,809,444,315

260,685,723,360 919,924,124,315

18 | SHORT-TERM PROVISIONS

Unit: VND 31/12/2011 31/12/2010

Unearned premium reserve 871,955,163,527 856,099,323,880 Claim reserve 437,815,784,062 263,105,850,886 Catastrophote reserve 73,799,912,459 68,031,708,614

1,383,570,860,048 1,187,236,883,380



FORM B 09-DN/HN


19 | MAJOR ITEMS OF OWNERS’ EQUITY

Unit: VND

Charter capital Share premium Treasury shares Retained earnings

As at 01/01/2011 1,597,103,640,000 1,622,092,724,471 (14,854,448,300) 196,074,351,979

Capital contributions (a) 532,367,880,000 1,384,156,488,000 - - Purchase of treasury shares (b) - - (109,467,979,050) - Profi t for the year - - - 347,627,235,120 Allocated to compulsory reserve fund (c)

- - - (14,767,105,623)

Allocated to investment and development funds for the year 2010

- - - 352,368,634

(d) - - - (38,575,793,305)Dividends (d) - - - (236,662,566,000)Payment from funds - (31,477,434,273) - -

As at 31/12/2011 2,129,471,520,000 2,974,771,778,198 (124,322,427,350) 254,048,490,805

(a) Capital allotment according to the Resolution of General Shareholders Meeting No. 01/2011/NQ-DHDCD dated 15 April 2011. The Company issued shares for HDI Gerling Industries Versicherung AG. The value of 53,236,788 shares (equivalent to 25% charter capital after allotment) equivalent to VND 532,367,880,000 has been recorded as charter capital and VND 1,384,156,488,000 was the premium of 53,236,788 shares.

(b) During the year, the Company purchased 6,341,500 treasury shares according to Decision of the Board of Management.

(c) The compulsory reserve fund is made up at the rate of 5% of the Corporation’s profi t after tax as stipulated in Article 30, Decree No. 46/2007/ND-CP dated 27 March 2007. The Holding Company made compulsory reserve fund to 31 July 2011(the date of restructuring)and transferred this fund to PVI Insurance Corporation. At subsidaries which are insurance companies, compulsory reserve fund is allocated from profi t after tax at the rate of 5% until its balance is equal to 10% of the charter capital according to the above mentioned Decree.

(d) Dividend paid and allocation to bonus and welfare funds does not exceed the maximum amount determined by the Resolution of the General Shareholders Meeting No. 01/2011/NQ-DHDCD dated 15 April 2011 on distribution of profi t of the year 2010 and advance dividend of 7% for the year 2011. Profi t distribution of the year 2011 will be fi nalized in up coming General Shareholders Meeting 2012.

Details of charter capital are as follows:

Capital contribution as at

31/12/2011

Capital contribution as at

31/12/2010

VND Ratio VND Ratio

Vietnam Oil and Gas Group 831,497,400,000 39.05% 831,497,400,000 52.06%HDI-Gerling Industrie Versicherung A 532,367,880,000 25.00% - 0.00%Funderburk Lighthouse Limited (Talanx Group members)

220,925,000,000 10.37% 202,075,000,000 12.65%

Other shareholders 544,681,240,000 25.58% 563,531,240,000 35.29% 2,129,471,520,000 100% 1,597,103,640,000 100%



FORM B 09-DN/HN


19 | MAJOR ITEMS OF OWNERS’ EQUITY (Continued)

Shares:

31/12/2011 31/12/2010

Shares Shares

Numbers of shares registerred 212,947,152 159,710,364

Common shares 212,947,152 159,710,364

Numbers of shares issued 212,947,152 159,710,364

Common shares 212,947,152 159,710,364

Numbers of treasury shares 7,131,100 789,600

Common shares 7,131,100 789,600

Numbers of Outstanding shares 205,816,052 158,920,764

Common shares 205,816,052 158,920,764

Par value of outstanding shares: VND 10,000/share.

20 | GRO SS SALES

Unit: VND2011 2010

Premium from direct insurance 4,241,055,565,014 3,512,186,405,060Premium from reinsurance inward 458,471,062,388 316,391,210,913Commission from reinsurance outward 187,836,205,283 152,319,572,289Other income from insurance activities 11,187,855,661 4,357,216,547

4,898,550,688,346 3,985,254,404,809

21 | DEDUCTION

Unit: VND

2011 2010

Returned premium 128,767,980,951 80,237,240,794

Other deductions 2,783,802,027 2,087,677,381

Increase/(decrease) in unearned premium reserve 15,855,839,647 233,298,490,748

147,407,622,625 315,623,408,923



FORM B 09-DN/HN


22 | COST OF SALES

Unit: VND

2011 2010

Fee for reinsurance outward 2,477,918,984,337 2,011,362,687,257Claim settlements of direct policies 934,811,139,762 1,150,555,967,327Claim settlements of assumed policies 118,036,642,103 110,208,484,758 Deduction to expenses (342,315,241,185) (653,730,168,309)

– Claims receipt from ceded polices (335,807,220,583) (651,339,332,581)

– Receipt of claim from third parties (39,160,600) (1,524,064,500)

– Receipt of 100% claim from goods (6,468,860,002) (866,771,228)Claim payment from catastrophe provision (57,017,903,718) (49,115,488,087)Increase in claim reserve 174,709,933,176 61,206,333,331Increase in catastrophe reserve 62,786,107,563 52,109,330,638Other expenses for insurance activities 218,012,645,355 159,904,414,071

– Other expenses for direct insurance services 63,124,414,340 59,780,723,655

– Other expenses for reinsurance inward 113,646,864,835 57,631,684,727

– Other expenses for reinsurance outward 41,241,366,180 42,492,005,689

3,586,942,307,393 2,842,501,560,986

23 | FINANCIAL INCOME

Unit: VND

2011 2010

Deposit, loan interests 363,039,929,189 210,995,874,068 Gain from investment in bonds 62,445,380,516 26,483,292,588 Gain from stock trading 5,505,863,959 31,042,308,023 Gain from trusted investments 25,777,069,443 86,888,261,379 Dividends, profi t shares 20,588,452,937 20,032,134,434 Foreign exchange gain 29,644,907,691 12,976,871,776 Income from Repo activities 55,739,065,227 51,478,771,195 Sale from investment property 190,374,703,314 - Other fi nancial income 96,627,584,833 167,372,741,429

849,742,957,109 607,270,254,892

24 | FINANCIAL EXPENSE

Unit: VND

2011 2010

Expenses for stock trading 1,928,890,465 24,324,942,876 Foreign exchange loss 53,462,700,692 43,291,301,459 Provision for diminution in value of investment 180,703,755,753 40,431,088,625 Cost of investment property 176,800,000,000 - Other fi nancial expenses 167,283,371,061 201,328,482,257

580,178,717,971 309,375,815,217



FORM B 09-DN/HN


25 | CORPORATE INCOME TAX

Unit: VND

2011 2010

Profi t before tax 467,997,784,250 336,026,003,512

Adjustments for taxable income

Less: non-assessable income (36,409,604,844) (21,837,068,443)Dividends and profi ts received (20,588,452,937) (20,032,134,434)Interest on Education bonds - (1,804,934,009)Share of associates’ net profi t (*) (4,767,360,791) - Provision reversal of investments in associates (*) (11,053,791,116) -

Add back: non-deductible expenses 49,894,017,116 900.541.712 Remuneration to the Board of Management 167,000,000 252,000,000 Depreciation of car costed over VND1.6 billion 250,755,709 117,874,512 Marketing expense exceeded 10% of the deductible expenses 48,874,129,079 - Other non-deductible expenses 602,132,328 530,667,200

Assessable income 481,482,196,522 315,089,476,781

Tax rate (**) 25.0% 12.5%

Corporate income tax 120,370,549,130 39,386,184,598

(*) Represents the share of associates net profi t as at the date of consolidated fi nancial statements which generated a deferred tax. However as the deferred tax is evaluated insignifi cantly, it will not be recorded by the Company.

(**) As presented in Note 4, 2010 is the last year the Company is entitled to corporate income tax incentives. From 2011, the Company is obligated to pay corporate income tax at the normal tax rate of 25%.

26 | EARNINGS PER SHARE

Unit 2011 2010

Accounting profi t after tax VND 347,627,235,120 296,639,818,914 Average number of outstanding ordinary shares Share 168,226,651 135,497,866

Basic earnings per share VND 2,066 2,189

27 | COMMITMENTS

As at 31 December 2011, the Company had several following signifi cant commitments:

A commitment for purchasing offi ce in Yen Hoa Ward, Cau Giay District, Hanoi with the total estimated value of USD 54,954,000. The percentage of completion relating to this contract is 40%.

A commitment for purchasing apartments at Olalani resort at Son Tra - Dien Ngoc Street, Khue My Ward, Ngu Hanh Son District, Da Nang with the total value of USD 5,058,460. The percentage of completion relating to this contract is 60%.



FORM B 09-DN/HN


28 | FINANCIAL INSTRUMENTS

Capital risk management

The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings off set by cash and cash equivalents) and equity attributable to holders (comprising capital, reserves and retained earnings).

Signifi cant accounting policies

Details of the signifi cant accounting policies and methods adopted (including the criteria for recognition, the bases of measurement, and the bases for recognition of income and expenses) for each class of fi nancial asset, fi nancial liability and equity instrument are disclosed in Note 4.

Categories of fi nancial instruments

Unit: VND Carrying amount

31/12/2011 31/12/2010

Financial assets Cash and cash equivalentss 686,565,126,049 561,484,924,260 Trade and other receivables 1,044,261,288,125 770,283,992,204 Short-term investments 4,182,683,563,297 3,172,614,166,694 Long-term investments 1,024,231,762,239 1,072,088,194,160 Other fi nancial assets 45,286,817,460 21,056,918,596

Total 6,983,028,557,170 5,597,528,195,914

Financial liabilites

Trade and other payables 1,206,236,599,465 1,584,537,333,919 Claim reserve and accruals 440,474,050,057 331,171,922,750 Other fi nancial instruments 31,306,632 -

Total 1,646,741,956,154 1,915,709,256,669

The Company has not assessed fair value of its fi nancial assets and liabilities as at the balance date since there are no comprehensive guidance under Circular 210 and other relevant prevailing regulations to determine fair value of these fi nancial assets and liabilities. While Circular 210 refers to the application of IFRS on presentation and disclosures of fi nancial instruments, it did not adopt the equivalent guidance for the recognition and measurement of fi nancial instruments, including application of fair value, in accordance with IFRS.

Financial risk management objectives

Financial risks include market risk (including foreign currency risk, interest rate risk and price risk), credit risk, liquidity risk and cash fl ow interest rate risk. The Company does not hedge these risk exposures due to the lack of a market to purchase fi nancial instruments.



FORM B 09-DN/HN


28 | FINANCIAL INSTRUMENTS (continued)

Market risk

The Company’s activities expose it primarily to the fi nancial risks of changes in foreign currency exchange rates and interest rates. The Company does not hedge these risk exposures due to the lack of any market to purchase fi nancial instruments.

Foreign currency risk management

The Company undertakes certain transactions denominated in foreign currencies; consequently, exposures to exchange rate fl uctuations arise. The Company does not hedge this risk due to the lack of any market to purchase such instruments.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of the year are as follows:

Assets (VND Equivalent) Liabilities (VND Equivalent)

31/12/2011 31/12/2010 31/12/2011 31/12/2010

United States Dollars (USD) 663,776,952,864 328,984,432,792 681,904,807,877 339,633,125,519 Euro (EUR) 9,490,110,642 3,750,915,934 1,841,977,998 11,931,102,091 British Pound (GBP) 992,249,512 1,043,223,447 793,184,608 207,166,470 Japanese Yen (JPY) 102,591,729 30,308,713 378,725,612 - Singapore Dollars - 11,317,006 - -Ringit Malaysia (MYR) 7,635,580,729 - 4,728,744,382 - Korea Won (KRW) 12,246,372,662 - 320,979,282 - Russian ruble (RUP) - - 3,464,093,916 - Australian Dollars (AUD) 887,800 - 84,944,243 - China Yuan (CNY) 26,114,626 - 12,223,429 -

Price risk management

The Company is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.

Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in fi nancial loss to the Company. The Company has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. As at the balance sheet date there is a signifi cant concentration of credit risk arising on the investment trust and co-operation investment contracts. Credit risk is evaluated prudently by the Board of General Directors as presented in Note 6 and Note 13.


The purpose of liquidity risk management is to ensure the availability of funds to meet present and future fi nancial obligations. Liquidity is also managed by ensuring that the excess of maturing liabilities over maturing assets in any period is kept to manageable levels relative to the amount of funds that the Company believes can generate within that period. The Company policy is to regularly monitor current and expected liquidity requirements to ensure that the Company maintains suffi cient reserves of cash, borrowings and adequate committed funding from its owners to meet its liquidity requirements in the short and longer term.



FORM B 09-DN/HN


The following table details the Company’s remaining contractual maturity for its non-derivative fi nancial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash fl ows of fi nancial liabilities based on the earliest date on which the Company can be required to pay. The table includes both interest and principal cash fl ows. To the extent that interest fl ows are fl oating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

VND31/12/2011 31/12/2010

Less than 1 year Trade and other payables 1,206,236,599,465 1,584,537,333,919 Claim reserve and accruals 440,474,050,057 331,171,922,750 Other fi nancial instruments 31,306,632 -

The management assessed the liquidity risk concentration at low level. The management believes that the Company will be able to generate suffi cient funds to meet its fi nancial obligations as and when they fall due.

The following table details the Company’s expected maturity for its non-derivative fi nancial assets. The table has been drawn up based on the undiscounted contractual maturities of the fi nancial assets including interest that will be earned on those assets, if any. The inclusion of information on non-derivative fi nancial assets is necessary in order to understand the Company’s liquidity risk management as the liquidity is managed on a net asset and liability basis.

VND31/12/2011 31/12/2010

Less than 1 year Cash and cash equivalents 686,565,126,049 561,484,924,260 Trade and other receivables 1,044,261,288,125 770,283,992,204 Short-term investments 4,182,683,563,297 3,172,614,166,694 Long-term investments 93,600,000,000 850,139,848,576 Other fi nancial assets 42,495,137,020 18,144,967,605

From 1 - 5 years

Long-term investments 562,943,304,137 221,948,345,586 Other fi nancial assets 2,791,680,440 2,911,950,991

After 5 year

Long-term investments 367,688,458,102 -

Total

Cash and cash equivalents 686,565,126,049 561,484,924,260 Trade and other receivables 1,044,261,288,125 770,283,992,204 Short-term investments 4,182,683,563,297 3,172,614,166,694 Long-term investments 1,024,231,762,239 1,072,088,194,162 Other fi nancial assets 45,286,817,460 21,056,918,596



FORM B 09-DN/HN


29 | RELATED PARTY TRANSACTIONS AND BALANCES

During the year, the Company entered into the following transactions with related parties:

Unit: VND 2011 2010

Dividends paid

Vietnam Oil and Gas Group 43,114,680,000 92,388,600,000 Capital management trust Vietnam Oil and Gas Group 949,713,333,335 1,802,905,146,110

– Receipt of trusted capital 840,000,000,000 1,615,000,000,000

– Payment for trusted capital 840,000,000,000 1,615,000,000,000

– Interest expense for capital management 109,713,333,335 187,905,146,110 Management fee Vietnam Oil and Gas Group 1,247,460,582 847,386,828 Investment trust PV2 Investment Joint Stock Company

– Investment trust 150,000,000,000 50,000,000,000

– Receive principal of investment trust 125,000,000,000 - Interest income from trusted investments PV2 Investment Joint Stock Company 23,482,624,998 20,086,335,754 Petro Vietnam Hospital Joint Stock Company 21,250,002 - Sale from real- estate business Viet Housing International Development And Investment Joint Stock Company

– Sale from investment property 190,374,703,314 -

– Cost of investment property 176,800,000,000 - Revenue from offi ce leasing

PV2 Investment Joint Stock Company 1,133,914,350 734,797,350 Receipt of shares transferred Vietnam Oil and Gas Group 24,000,000,000 - PV2 Investment Joint Stock Company - 26,000,000,000 Shares transfers PVI Insurance Corporation 10,000,000,000 - PV2 Investment Joint Stock Company - 66,000,000,000 Service fees Nangluongmoi Trading and Communication Joint Stock Company 4,415,120,989 3,128,586,626 PV2 Investment Joint Stock Company - 2,231,589,505

Remuneration of the Board of General Directors

Remuneration paid to the Board of General Directors of the Company and its subsidiaries during the year was VND 7,429,154,334 (2010 was VND 5,717,846,486)

Unit: VND31/12/2011 31/12/2010

Capital contribution PV2 Investment Joint Stock Company 162,433,335,115 141,919,200,000 Viet Housing International Development And Investment Joint Stock Company

102,000,000,000 -

Nangluongmoi Trading and Communication Joint Stock Company 46,912,303,800 51,057,034,200 Sapa Petroleum Tourism Joint Stock Company 45,894,557,965 46,139,960,000 Petrovietnam Insurance Service Joint Stock Company 10,000,000,000 10,000,000,000



FORM B 09-DN/HN


VND

31/12/2011 31/12/2010

PetroVietnam Finance Fund Management Inc. 24,000,000,000 -PetroVietnam Hospital Joint Stock Company 25,000,000,000 -

Principal of investment trust PV2 Investment Joint Stock Company 75,000,000,000 50,000,000,000

Other short-term investments PetroVietnam Hospital Joint Stock Company 50,021,250,002 -

Receivables PV2 Investment Joint Stock Company 24,305,531,826 3,500,337,500

Payables Vietnam Oil and Gas Group 142,415,165,558 43,114,680,000 PetroVietnam Hospital Joint Stock Company 45,227,388,888 -

30 | BUSINESS AND GEOGRAPHICAL SEGMENTS

The Company has just been restructured and is operating majorly in insurance business and investment funded from insurance capital resources, the investment activity is a part of insurance business cycle. Investments in other business activities are not considerable. Therefore, the Board of General Directors assessed and believes the fi nancial statements which are not prepared under business segments are in line with the Company’s current business operation.

31 | COMPARATIVE FIGURES

This is the fi rst year the Company prepares the consolidated fi nancial statements, accordingly, there are no comparative fi gures. However for reference purpose, the Company presented the audited fi nancial statements for the year ended 31 December 2010 of PetroVietnam Insurance Joint Stock Corporation (the Company’s former name).

The Company adopted Decision No. 150/2001/QD-BTC dated 31 December 2001 on insurance company accounting regime in preparing fi nancial statements for the year 2010. From 01 August 2011, the Company offi cially operates under a holding-subsidiary model. Therefore, the Board of General Directors decided to adopt Decision No. 15/2006/QD-BTC dated 20 March 2006 on enterprise accounting regime in preparing consolidated fi nancial statements for the year ended 31 December 2011 for PVI Holdings. Due to the above change, comparative fi gures were reclassifi ed and presented in a reasonably comparable format stipulated in Decision No. 15/2006/QD-BTC dated 20 March 2006 on enterprise accounting regime for reference purpose.

Bui Van Thuan

General Director

Phung Tuan Kien

Chief Accountant

Hanoi, 20 February 2012

Stock Symbol: PVI, Hanoi Stock Exchange (HNX)

Head Offi ce: 154 Nguyen Thai Hoc, Ba Dinh District, Ha NoiTel: (84 - 4) 37 34 22 99 Fax: (84 - 4) 37 34 29 29

Email: [email protected] Website: www.pvi.com.vn

HOLDINGS

PVI HOLDINGS

Documents

Audited Financial Statementswfile.pvi.com.vn/PVIFiles/Download/2012/BCTC tieng Anh part 2.pdf48 The Flame of Trust PVI FORM B 01-DN Balance Sheet As at 31 December 2011 The notes set