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Deloitte.
TRAPHACO JOINT STOCK COMPANY
(Incorporated in the Socialist Republic of Vietnam)
AUDITED SEPARATEFINANCIAL STATEMENTSFor the year ended 31 December 2019
TRAPHACO JOINT STOCK COMPANYNo. 75, Yen Ninh Street, Quan Thanh Ward, Ba Dinh District, Hanoi, Vietnam
TABLE OF CONTENTS
CONTENTS
STATEMENT OF THE EXECUTIVE BOARD
INDEPENDENT AUDITORS' REPORT
BALANCE SHEET
INCOME STATEMENT
CASH FLOW STATEMENT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS
PAGE(S)
1 - 2
3 - 4
5 - 6
7
8 - 9
10 - 26
TRAPHACO JOINT STOCK COMPANYNo. 75, Yen Ninh Street, Quan Thanh Ward, Ba Dinh District, Hanoi, Vietnam
STATEMENT OF THE EXECUTIVE BOARD
The Executive Board of Traphaco Joint Stock Company (the "Company") presents this report together withthe Company's separate financial statements for the year ended 31 December 2019.
THE BOARD OF DIRECTORS, EXECUTIVE BOARD AND BOARD OF SUPERVISION
The members of the Board of Directors, Executive Board and Board of Supervision of the Company who heldoffice during the year and to the date of this report are as follows:
Board of DirectorsMs. Vu Thi ThuanMr. Nguyen Anh TuanMr. Tran Tuc MaMr. Nguyen Quoc HuyMr. Lee Choong HwanMr. Kim Dong HyuMr. Ji Chang WonMr. Marcus John Pitt
Executive BoardMr. Tran Tuc MaMr. Nguyen Huy VanMs. Nguyen Thi LanMr. Nguyen Van BuiMr. Kim Dong Hyu
Board of SupervisionMr. Duong Duc HungMs. Nguyen Thanh HoaMs. Tran Thi Ly
ChairwomanVice ChairmanMemberMemberMemberMemberMember (appointed on 26 September 2019)Member (resigned on 06 August 2019)
Chief Executive OfficerExecutive OfficerExecutive OfficerExecutive OfficerExecutive Officer (appointed on 01 October 2019)
Head of Board of SupervisionMemberMember
THE EXECUTIVE BOARD'S STATEMENT OF RESPONSIBILITY
The Executive Board of the Company is responsible for preparing the separate financial statements, whichgive a true and fair view of the financial position of the Company as at 31 December 2019, and its financialperformance and its cash flows for the year then ended in accordance with Vietnamese AccountingStandards, accounting regime for enterprises and legal regulations relating to financial reporting. Inpreparing these separate financial statements, the Executive Board is required to:
• select suitable accounting policies and then apply them consistently;• make judgments and estimates that are reasonable and prudent;• state whether applicable accounting principles have been followed, subject to any material departures
disclosed and explained in the separate financial statements;prepare the separate financial statements on the going concern basis unless it is inappropriate topresume that the Company will continue in business; anddesign and implement an effective internal control system for the purpose of properly preparing andpresenting the separate financial statements so as to minimize errors and frauds.
The Executive Board is responsible for ensuring that proper accounting records are kept, which disclose,with reasonable accuracy at any time, the financial position of the Company and that the separate financialstatements comply with Vietnamese Accounting Standards, accounting regime for enterprises and legalregulations relating to financial reporting. The Executive Board is also responsible for safeguarding theassets of the Company and hence for taking reasonable steps for the prevention and detection of fraudsand other irregularities.
1
TRAPHACO JOINT STOCK COMPANYNo. 75, Yen Ninh Street, Quan Thanh Ward, Ba Dinh District, Hanoi, Vietnam
STATEMENT OF THE EXECUTIVE BOARD (Continued)
The Executive Board confirms that the Company has complied with the above requirements in preparingthese separate financial statements.
For and on behalf of the Executive Board,
29 February 2020
2
r
Deloitte.No.: 0562jVN1A-HN-BC
INDEPENDENT AUDITORS' REPORT
Deloitte Vietnam Co., Ltd.15th Floor,VinaconexTower,34 LangHaStreet, LangHaWard,DongDaDistrict, Hanoi,VietnamTel: +84247105 0000Fax:+8424 62885678www.deloitte.comlvn
6To: The shareholders
The Board of Directors and Executive Board ofTraphaco Joint Stock Company
We have audited the accompanying separate financial statements of Traphaco Joint Stock Company (the"Company"), prepared on 29 February 2020 as set out from page 5 to page 26, which comprise the balancesheet as at 31 December 2019, and the statement of income and statement of cash flows for the year thenended, and a summary of significant accounting policies and other explanatory information.
The Executive Board's Responsibility for the Financial Statements
The Executive Board is responsible for the preparation and fair presentation of these separate financialstatements in accordance with Vietnamese Accounting Standards, accounting regime for enterprises andlegal regulations relating to financial reporting and for such internal control as the Executive Boarddetermines is necessary to enable the preparation of separate financial statements that are free frommaterial misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these separate financial statements based on our audit. Weconducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the separate financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in theseparate financial statements. The procedures selected depend on the auditors' judgment, including theassessment of the risks of material misstatement of the separate financial statements, whether due to fraudor error. In making those risk assessments, the auditors consider internal control relevant to the Company'spreparation and fair presentation of the separate financial statements in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Company's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of accounting estimates made by management, as well asevaluating the overall presentation of the separate financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion.
Opinion
In our opinion, the separate financial statements present fairly, in all material respects, the financial positionof the Company as at 31 December 2019, and its financial performance and its cash flows for the year thenended in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legalregulations relating to financial reporting.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ("DTIL"), its global network of member firms. and their related entities. DTIL(also referred to as "Deloitte Global") and each of its member firms and their affiliated entities are legally separate and independent entities. DTILdoes not provide services to clients. Pleasesee www.deloitte.com/about to learn more.
3
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Deloitte.INDEPENDENT AUDITORS' REPORT (Continued)
Other Matter
The separate financial statements of the Company for the year ended 31 December 2018 were audited byanother auditor who expressed an unmodified opinion on those statements on 15 March 2019.
1(
OA -
Dang hi DungDeputy General DirectorAudit Practising Registration CertificateNo. 0030-2018-001-1
DELOITTE VIETNAM COMPANY LIMITED
29 February 2020Hanoi, S.R. Vietnam
4
Do Trung KienAuditorAudit Practising Registration CertificateNo. 1924-2018-001-1
..T
TRAPHACO JOINT STOCK COMPANY FORM B 01-0NNo. 75 Yen Ninh Street, Quan Thanh Ward, Issued under Circular NO.200/2014/TT-BTCBa Dinh District, Hanoi, Vietnam dated 22 December 2014 of the Ministry of Finance
BALANCE SHEETAs at 31 December 2019
-'",
Unit: VND .18S'-!
ASSETS Codes Notes Closing balanceT'1
Opening balance ~NA. CURRENTASSETS 100 724,309,954,833 711,730,248,867 \C(
.~I. Cash and cash equivalents 110 4 255,516,502,641 269,599,656,234 ~l. Cash 111 165,516,502,641 139,599,656,234
2. Cash equivalents 112 90,000,000,000 130,000,000,000
II. Short-term receivables 130 248,042,491,228 140,407,054,608
~
l. Short-term trade receivables 131 5 225,357,844,096 115,362,859,876
2. Short-term advances to suppliers 132 6 16,579,642,916 19,356,037,5213. other short-term receivables 136 7 12,126,434,344 8,476,744,944
4. Provisionfor short-term doubtful debts 137 8 (6,021,430,128) (3,531,683,174 )
5. Deficitsin assets awaitingsolution 139 743,095,441
III. Inventories 140 9 208,391,325,372 290,974,793,693 :::'5
l. Inventories 141 208,533,380,002 291,215,886,767
2. Provisionfor devaluation of inventories 149 (142,054,630) (241,093,074 ) -;. f~
IV. Other short-term assets 150 12,359,635,592 10,748,744,332 T
l. Short-term prepayments 151 10 2,395,696,212 2,279,557,478N
2. Valueadded tax deductibles 152 9,392,701,239 8,126,614,375 -3. Taxes and other receivablesfrom 153 571,238,141 342,572,479 ;;;:
the State budget
B. NON-CURRENTASSETS 200 532,204,727,445 532,331,097,168
I. Fixed assets 220 153,479,670,441 147,813,099,955
l. Tangiblefixed assets 221 11 104,530,886,322 100,974,486,979
- Cost 222 249,977,154,879 243,899,695,657
- Accumulated depreciation 223 (145,446,268,557) (142,925,208,678)
2. Intangibleassets 227 12 48,948,784,119 46,838,612,976
- Cost 228 53,567,706,066 50,629,811,066
- Accum ulated am ortisation 229 (4,618,921,947) (3,791,198,090)
II. Long-term assets in progress 240 8,008,209,364 11,545,923,220
l. Construction in progress 242 13 8,008,209,364 11,545,923,220
III. Long-term financial investments 250 366,726,676,011 366,726,676,011
l. Investments in subsidiaries 251 14 366,726,676,011 366,726,676,011
IV. Other long-term assets 260 3,990,171,629 6,245,397,982
l. Long-term prepayments 261 10 3,990,171,629 6,245,397,982
TOTALASSETS 270 1,256,514,682,278 1,244,061,346,035(270=100+200)
The accompanying notes are an integral part of these separate financial statements
5
TRAPHACO JOINT STOCK COMPANY FORM B ai-ONNo. 75 Yen Ninh Street, Quan Thanh Ward, Issued under Circular NO.200/2014/TT-STCSa Dinh District, Hanoi, Vietnam dated 22 December 2014 of the Ministry of Finance
BALANCE SHEET (Continued)As at 31 December 2019
Unit: VND
RESOURCES Codes Notes Closing balance Opening balance
C. LIABILITIES 300 279,250,940,575 245,831,203,398
I. Current liabilities 310 279,250,940,575 245,771,203,398
1. Short-term trade payables 311 15 101/382/923,189 93,374,926/233
2. Short-term advances from customers 312 28/695/194 284,603/925 1Taxes and amounts payable to the •
3. State budget313 16 22/989/494,113 24,358,102/256
4. Payables to employees 314 24/763/415,507 22,406/616/304
5. Short-term accrued expenses 315 17 24/511/862,958 16,511,617/119
6. Short-term unearned revenue 318 18 20/480/269/378 ,•
7. Other current payables 319 19 85/094/280/236 86,046/989/145
8. Bonus and welfare funds 322 2,788/348/416
~II. Long-term liabilities 330 60,000,000 !!1. Other long-term payables 337 60/000/000
T
D. EQUITY 400 20 977,263,741,703 998,230,142,637 I~.I. Owners' equity 410 977,263,741,703 998,230,142,637 A
1. Owners' contributed capital 411 414/536/730/000 414/536,730,000 ...-,Y
- Ordinary shares carrying voting rights 411a 414,536,730,000 414,536,730,000 ,
2. Share premium 412 133/021/732/000 133,021,732/0003. Treasury shares 415 (3/593/000) (3/593,000)
4. Investment and development fund 418 339/739/849,130 330/809,219/306
5. Retained earnings 421 89/969/023/573 119,866,054/331
- Retained earnings accum ulated to the 421a 68,954,137,733 65,920,694,301prior year end
- Retained earnings of the current year 421b 21,014,885,840 53,945,360,030
TOTAL RESOURCES (440=300+400) 440 1,256,514,682,278 1,244,061,346,035
NguyenThiNgocThuyPreparer
Oinh Trung KienChief Accountant
Tran Tuc MaChief Executive Officer
29 February 2020
The accompanying notes are an integral part of these separate financial statements
6
TRAPHACO JOINT STOCK COMPANY FORM B 02-DNNo. 75 Yen Ninh Street, Quan Thanh Ward, Issued under Circular NO.200/2014/TT-BTCBa Dinh District, Hanoi, Vietnam dated 22 December 2014 of the Ministry of Finance
INCOME STATEMENTFor the year ended 31 December 2019
Unit: VND
ITEMS Codes Notes Current year Prior year
1. Gross revenue from goods sold 01 22 1,782,781,100,232 1,683,214,454,690and services rendered I
2. Deductions 02 22 6,789,374,360 12,231,032,974
3. Net revenue from goods sold and 10 22 1,775,991,725,872 1,670,983,421,716services rendered (10=01-02)
4. Cost of sales 11 23 1,088,878,441,494 948,193,858,481 ~5. Gross profit from goods sold and 20 687,113,284,378 722,789,563,235 ")
services rendered (20=10-11)
(6. Financialincome 21 25 19,681,690,486 20,193,950,765
7. Financialexpenses 22 30,985,496 1,636,976,077- In which: Interest expense 23 1,526,085,692 ,
8. Sellingexpenses 25 26 452,340,413,916 449,157,244,676 .~
9. Generaland administration expenses 26 26 102,676,532,051 105,179,881,057
10. Operating profit 30 151,747,043,401 187,009,412,190(30=20+(21-22)-( 25+26»
11. Other income 31 335,919,130 459,418,413
12. Other expenses 32 824,089,558 1,837,042,665
13. Profit from other activities 40 (488,170,428) ( 1,377,624,252)(40=31-32)
14. Accounting profit before tax 50 151,258,872,973 185,631,787,938(50=30+40)
15. Current corporate incometax expense 51 27 33,532,359,434 35,251,084,608
16. Net profit after corporate income tax 60 117,726,513,539 150,380,703,330
(60=50-51)
Nguyen Thi Ngoc ThuyPreparer
Dinh Trung KienChief Accountant
Tran Tuc MaChief Executive Officer
29 February 2020
The accompanying notes are an integral part of these separate financial statements
7
TRAPHACO JOINT STOCK COMPANYNo. 75 Yen Ninh Street, Quan Thanh Ward,Ba Dinh District, Hanoi, Vietnam
FORM B 03-0NIssued under Circular NO.200/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance
CASH FLOW STATEMENT (Continued)For the year ended 31 December 2019
Unit: VND
ITEMS Codes Current year Prior year
III. CASH FLOWS FROM FINANCING ACTIVITIES
1. Proceeds from borrowings
2. Repayment of borrowings
3. Dividends and profits paid
33
3436 (124,444,397,000)
127,964,597,667
(150,601,940,684 )
(124,192,040,300)
Net cash used in financing activities 40 (124,444,397,000 ) ( 146,829,383,317)
Net (decrease)/increase in cash (50=20+30+40) 50 ( 14,079,964,077) 151,033,167,425
Cash and cash equivalents at thebeginning of the year 60 269,599,656,234 118,566,488,809
Effects of changes in foreign exchange rates 61 (3,189,516)
Oinh Trung KienChief Accountant
'<JI
269,599,656,234
Tran Tuc MaChief Executive Officer
255,516,502,64170Cash and cash equivalents at the end ofthe year (70=50+60+61)
Nguyen Thi Ngoc ThuyPreparer
29 February 2020
The accompanying notes are an integral part of these separate financial statements
9
TRAPHACO JOINT STOCK COMPANYNo. 75 Yen Ninh Street, Quan Thanh Ward,Ba Dinh District, Hanoi, Vietnam
FORM B 09-DNIssued under Circular NO.200/2014/TI -BTC
dated 22 December 2014 of the Ministry of Finance
NOTES TO THE SEPARATE FINANCIAL STATEMENTSThese notes are an integral part of and should be read in conjunction with the accompanying separatefinancial statements
1. GENERAL INFORMATIONStructure of ownership
Traphaco Joint Stock Company (the "Company") is a joint stock company which was transformedfrom a State-owned enterprise into a Joint Stock Company under Decision No. 2566/1999/QD-BGTVTdated 27 September 1999 issued by the Minister of Transport and the Enterprise RegistrationCertificate No. 058437 issued by the Hanoi Authority for Planning and Investment for the first timeon 24 December 1999, and the amended Enterprise and Tax Code Registration Certificate No.0100108656 with the latest (22nd) amendment granted by the Hanoi Authority for Planning andInvestment on 01 August 2017.
The Company's head office is located at No. 75 Yen Ninh street, Quan Thanh ward, Ba Dinh district,Ha Noi, Viet Nam.
The number of employees as at 31 December 2019 was 728 (31 December 2018: 681).
Operating industry and principal activities
Operating activites of the Company are production and trade of food and cosmetics; export andimport of pharmaceutical materials and products; consultancy on manufacture of medicines andcosmetics; dispensing prescription drugs; production and trade of medicines, chemical and medicalsupplies and equipment; production and trade of alcohol, beer, soft drinks (not including baroperating); advisory services on medical technology transfer; purchasing, planting, processingpharmaceautical materials.
The principal activities of the Company are production and trade of pharmaceutical products,chemicals, medical supplies and equipment.
Normal production and business cycle
The Company's normal production and business cycle is carried out for a time period of 12 monthsor less.
The Company's structure
As at 31 December 2019, the Company has 28 dependent units which are branches in 28 provinces,cities and 4 subsidiaries. Details of the Company's subsidiaries are as follows:
No. Company name Proportion Proportion Head office's Principal activitiesof of address
ownership votinginterest power held
TraphacoSapa One 100% 100% Group 9, Sapa town, Planting herbs, processingMember Company Limited Sapa district, Lao Cai pharmaceutical materials,
province agriculture and forestryproducts and food;Producing and tradingpharmaceutical products,pharmaceutical materialsand food.
2 Traphaco Hi-tech 51% 51% Tan Quang commune, Producing orientalJoint Stock Company Van Lam district, Hung medicine.
Yen province
3 Dak Lak Pharmaceutical 58% 58% No. 9A Hung Vuong Producing and tradingand Medical Equipment Street, Tu An ward, pharmaceutical products,Joint Stock Company Buon MaThuot city, nutritional foods;
Dak Lak province Exporting and importingmedicines, pharmaceuticalmaterials.
4 Traphaco Hung Yen 100% 100% Tan Quang commune, Producing westernCompany Limited Van Lam district, Hung medicine.
Yen province10
cR,~....
OJVI
TRAPHACO JOINT STOCK COMPANYNOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued) FORM B 09-DN
Disclosure of information comparability in the separate financial statements
Comparative figures are the figures of the audited separate financial statements for the year ended31 December 2018 that was audited by another audit firm.
2. ACCOUNTING CONVENTION AND FINANCIAL YEAR
Accounting convention
The accompanying separate financial statements, expressed in Vietnam Dong (VND), are preparedunder the historical cost convention and in accordance with Vietnamese Accounting Standards,accounting regime for enterprises and legal regulations relating to financial reporting.
The accompanying separate financial statements are not intended to present the financial position,results of operations and cash flows in accordance with accounting principles and practices generallyaccepted in countries and jurisdictions other than Vietnam.
Financial year
The Company's financial year begins on 01 January and ends on 31 December.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies, which have been adopted by the Company in the preparation ofthese separate financial statements, are as follows:
Estimates
The preparation of separate financial statements in conformity with Vietnamese AccountingStandards, accounting regime for enterprises and legal regulations relating to financial reportingrequires the Executive Board to make estimates and assumptions that affect the reported amountsof assets, liabilities and disclosures of contingent assets and liabilities at the date of the separatefinancial statements and the reported amounts of revenues and expenses during the financial year.Although these accounting estimates are based on the the Executive Board's best knowledge, actualresults may differ from those estimates.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, cash in transit, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and whichare subject to an insignificant risk of changes in value.
Investment in subsidiaries
A subsidiary is an entity over which the Company has control. Control is achieved where theCompany has the power to govern the financial and operating policies of an investee enterprise soas to obtain benefits from its activities.
Investment in subsidiaries are initially recognised at cost. The Company's share of the net profit ofthe investee after acquisition is recognised in the income statement. Other distributions receivedother than such profit share are deducted from the cost of the investments as recoverable amounts.
Investments in subsidiaries are carried in the balance sheet at cost less provision for impairment ofsuch investments (if any). Provisions for impairment of investments in subsidiaries are made whenthere is reliable evidence for declining in value of these investments at the balance sheet date.
11
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:::
TRAPHACO JOINT STOCK COMPANYNOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)
Receivables
FORM B 09-DN
Receivables represent the amounts recoverable from customers or other debtors and are stated atbook value less provision for doubtful debts.
Provision for doubtful debts is made for receivables that are overdue and when the debtor is maybe unable to repay the debt.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materialsand where applicable, direct labour costs and those overheads that have been incurred in bringingthe inventories to their present location and condition. Cost is calculated using the weighted averagemethod. Net realisable value represents the estimated selling price less all estimated costs tocompletion and costs to be incurred in marketing, selling and distribution.
Inventories are recorded using the perpetual inventory method.
The evaluation of necessary provision for inventory obsolescence follows current prevailingaccounting regulations which allow provisions to be made for obsolete, damaged, or sub-standardinventories and for those which have costs higher than net realisable values as at the balance sheetdate.
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less accumulated depreciation.
The costs of purchased tangible fixed assets comprise their purchase prices and any directlyattributable costs of bringing the assets to their working condition and location for their intendeduse.
The costs of self-constructed or manufactured assets are the actual construction or manufacturingcost plus installation and test running costs.
Tangible fixed assets are depreciated using the straight-line method over their estimated usefullives as follows:
Years
.f,
Buildings and structuresMachinery and equipmentMotor vehicles and transmission equipmentOffice equipment
05 - 3503 - 1003 - 1002 - 12
Loss or gain resulting from sales and disposals of tangible fixed assets is the difference betweenprofit from sales or disposals of assets and their residual values and is recognised in the incomestatement.
Intangible assets and amortisation
Intangible assets represent land use rights and computer software those are stated at cost lessaccumulated amortisation.
Land use rights comprise the indefinite land use rights and the prepayment for the land leasecontracts which are effective prior to 2003 and for which, land use right certificates have beenissued. Indefinite land use rights are not amortised.
Computer software are initially recorded at purchase price and amortised using the straight-linemethod over their estimated useful life.
12
TRAPHACO JOINT STOCK COMPANYNOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)
Construction in progress
FORM B 09-DN
Properties in the course of construction for production, rental or administrative purposes, or forother purposes, are carried at cost. Cost includes costs that are necessary to form the assets inaccordance with the Company's accounting policy including construction cost, equipment cost, otherdirectly attributable cost. Depreciation of these assets, on the same basis as other assets,commences when the assets are ready for their intended use.
Prepayments
Prepayments are expenses which have already been paid but relate to results of operations ofmultiple accounting periods, including tools and supplies issued for consumption, overhaulingexpenses of fixed assets and other types of prepayments, which are expected to provide futureeconomic benefits to the Company. These expenditures have been capitalised as prepayments, andare allocated to the income statement using the straight-line method in accordance with the currentprevailing accounting regulations.
Accruals
Accruals are recorded based on reasonable estimates of the amounts payable for goods or servicesreceived from sellers or provided to buyers during the year but not actually paid at the year end.
Revenue recognition
Revenue from the sale of goods
Revenue from the sale of goods is recognised when all five (5) following conditions are satisfied:
(a) the Company has transferred to the buyer the significant risks and rewards of ownership of thegoods;
(b) the Company retains neither continuing managerial involvement to the degree usuallyassociated with; ownership nor effective control over the goods sold;
(c) the amount of revenue can be measured reliably;(d) it is probable that the economic benefits associated with the transaction will flow to the
Company; and(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from rendering of services
Revenue of a transaction involving the rendering of services is recognised when the outcome ofsuch transactions can be measured reliably. Where a transaction involving the rendering of servicesis attributable to several years, revenue is recognised in each year by reference to the percentageof completion of the transaction at the balance sheet date of that year. The outcome of a transactioncan be measured reliably when all four (4) following conditions are satisfied:
(a) the amount of revenue can be measured reliably;(b) it is probable that the economic benefits associated with the transaction will flow to the
Company;
(c) the percentage of completion of the transaction at the balance sheet date can be measuredreliably; and
(d) the costs incurred for the transaction and the costs to complete the transaction can bemeasured reliably.
Interest income is accrued on a time basis, by reference to the principal outstanding and at theapplicable interest rate.
Dividend income from investments is recognised when the Company's right to receive payment hasbeen established.
13
-; T'IH~IT\NA
j
TRAPHACO JOINT STOCK COMPANYNOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)
Foreign currencies
FORM B 09-DN
Transactions arising in foreign currencies are translated at exchange rates ruling at the transactiondate. The balances of monetary items denominated in foreign currencies as at the balance sheetdate are retranslated at the exchange rates on the same date. Exchange differences arising fromthe translation of these accounts are recognised in the income statement.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profitbefore tax as reported in the income statement because it excludes items of income or expensethat are taxable or deductible in other years (including loss carried forward, if any) and it furtherexcludes items that are never taxable or deductible.
Deferred tax is recognised on significant differences between carrying amounts of assets andliabilities in the financial statements and the corresponding tax bases used in the computation oftaxable profit and is accounted for using balance sheet liability method. Deferred tax liabilities aregenerally recognised for all temporary differences and deferred tax assets are recognised to theextent that it is probable that taxable profit will be available against which deductible temporarydifferences can be utilised.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liabilityis settled or the asset realised. Deferred tax is charged or credited to profit or loss, except when itrelates to items charged or credited directly to equity, in which case the deferred tax is also dealtwith in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set offcurrent tax assets against current tax liabilities and when they relate to income taxes levied by thesame tax authority and the Company intends to settle its current tax assets and liabilities on a netbasis.
The determination of the tax currently payable is based on the current interpretation of taxregulations. However, these regulations are subject to periodic variation and their ultimatedetermination depends on the results of the tax authorities' examinations.
Other taxes are paid in accordance with the prevailing tax laws in Vietnam.
4. CASH AND CASH EQUIVALENTS
~ .,.}
y "
fE
Cash on hand
Demand deposits
Cash in transit
Cash equivalents (i)
Closing balanceVND
21,347,699,123
143,940,648,518
228,155,000
90,000,000,000
255,516,502,641
Opening balanceVND
20,906,820,207
118,692,836,027
130,000,000,000
269,599,656,234
(i) Cash equivalents as at 31 December 2019 represent deposits in VND with original termsnot exceeding 3 months, earning interest at the rate of 5% per annum.
14
TRAPHACO JOINT STOCK COMPANY FORM B 09-DNNOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)
5. SHORT-TERM TRADE RECEIVABLES
Closing balance Opening balance
VND VND
Traphaco Hi-tech Joint Stock Company 111,275,001,011
Nam Duong Investment Joint Stock Company 17,607,461,193 79,894,122
Lam Dong Pharmaceutical Joint Stock Company 5,262,353,991 7,154,395,413
Bac Ninh Pharmaceutical Joint Stock Company 4,599,021,521 3,499,853,245
Life Care Vietnam Company Limited 3,333,447,647 3,453,593,056
TraphacoSapa One Member Company Limited 1,163,045,606 1,658,358,723
Traphaco Hung Yen Company Limited 27,687,381,346
Dak Lak Pharmaceutical and Medical Equipment 116,614,225 356,976,012
Joint Stock CompanyOthers 82,000,898,902 71,472,407,959
225,357,844,096 115,362,859,876
Receivablesfrom related parties 112,554,660,842 29,702,716,081(Details presented in Note 29)
6. SHORT-TERM ADVANCES FROM SUPPLIERS
Closing balanceVND
Ms. Tran Thi Tam 3,385,000,000
Lien Vinh Trading Company Limited. 2,026,000,000
~
~KaRa Vietnam Joint Stock Company 1,000,000,000 *319 Consultancy Design and Construction 416,889,000 1,604,602,000 ~Joint Stock CompanyThanh Cong Investment Construction 3,634,291,000Joint Stock CompanyOthers 9,751,753,916 8,432,144,521
16,579,642,916 19,356,037,521
7. OTHER SHORT-TERM RECEIVABLES
Closing balance Opening balance
Advances to employeesVND VND
6,314,444,450 4,134,743,331Deposits 2,090,261,670 1,976,191,600Deposit interest receivable 333,561,643 655,479,454Others 3,388,166,581 1,710,330,559
12,126,434,344 8,476,744,944
15
TRAPHACO JOINT STOCK COMPANY .NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)
FORM B 09-DN
8. BAD DEBTS
Closing balance Opening balance
VND VND
Cost Recoverable Provision Cost Recoverable Provision
amounts amounts
. Mr.Nguyenluang Lam 2,336,744,473 2,336,744,473 2,336,744,473 2,336,744,473
. KhanhSonHealthCenter 757,078,788 757,078,788 757,078,788 757,078,788
. Mr.SuiTrungDung 698,838,980 698,838,980 698,838,980 698,838,980
. HaAnhPharmaceutical 580,845,000 580,845,000 580,845,000 580,845,000
and MedicalMaterialsCo.,Ltd. 481,274,969• QuangNgai 481,274,969 481,274,969 481,274,969
PharmaceuticalandMedicalMaterialsCo.,Ltd.. Others 1,243,371,857 76,723,939 1,166,647,918 1,167,624,098 153,978,661 1,013,645,437
6,098,154,067 76,723,939 6,021,430,128 6,022,406,308 2,490,723,134 3,531,683,174
The recoverable amount of the bad debts is determined at cost less provision.
9. INVENTORIES
Closing balance Opening balanceVND VND
Cost Provision Cost Provision~
Goods in transit 1,678,451,950
~Raw materials 48,059,838,242 123,715,025 124,503,776,978 241,093,074
Tools and supplies 20,891,149
Work in progress 2,331,605,229 26,739,949,618j
~Finished goods 114,381,634,434 10,897,996 105,050,082,960 "Merchandise 42,060,958,998 7,441,609 34,922,077,211
208,533,380,002 142,054,630 291,215,886,767 241,093,074
10. PREPAYMENTS
a. Current
Overhauling expenses of fixed assets
Tools and supplies issued for consumption
other short-term prepaid expenses
b. Non-currentOverhauling expenses of fixed assets
Tools and supplies issued for consumption
Other long-term prepaid expenses
16
Closing balanceVND
1,917,912,878
176,929,091
300,854,243
2,395,696,212
2,925,663,976
1,052,107,653
12,400,000
3,990,171,629
Opening balanceVND
1,162,546,920
673,291,994
443,718,564
2,279,557,478
4,332,586,542
1,806,076,054
106,735,386
6,245,397,982
TRAPHACO JOINT STOCK COMPANYNOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued) FORMB 09-DN
11. INCREASES, DECREASES IN TANGIBLE FIXED ASSETS
Buildings Machinery Motor vehicles Management tools Totaland structures and equipment and transmission and equipment
equipmentVND VND VND VND VND
COSTOpening balance 107,593,796,949 63,006,391,109 61,149,665,267 12,149,842,332 243,899,695,657
Increase due to purchase, 12,478,003,4 74 1,847,363,737 4,433,683,634 1,138,764,980 19,897,815,825transfer from construction inprogressDisposals (1,444,157,616) (8,731,847,894) (3,300,106,493) (344,244,600) (13,820,356,603)
Closing balance 118,627,642,807 56,121,906,952 62,283,242,408 12,944,362,712 249,977,154,879
ACCUMULATEDDEPRECIATIONOpening balance 44,513,438,830 49,835,432,315 37,955,049,837 10,621,287,696 142,925,208,678Charge for the year 4,248,950,385 4,542,427,882 5,761,656,430 869,434,951 15,422,469,648Disposals (1,444,157,616) (7,990,146,954) (3,142,793,258) (324,311,941) (12,901,409,769)
Closing balance 47,318,231,599 46,387,713,243 40,573,913,009 11,166,410,706 145,446,268,557
NETBOOKVALUEOpening balance 63,080,358,119 13,170,958,794 23,194,615,430 1,528,554,636 100,974,486,979
Closing balance 71,309,411,208 9,734,193,709 21,709,329,399 1,777,952,006 104,530,886,322
The cost of the Company's fixed assets as at 31 December 2019 includes VND 71,537,817,255 (31 December 2018: VND 68,977,042,940) of assets whichhave been fully depreciated but are still in use.
17
//0"'7 :$ ~ ",\.0~
TRAPHACO JOINT STOCK COMPANYNOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued) FORM B 09-DN
12. INCREASES, DECREASES IN INTANGIBLE ASSETS
Land use rights Computer software Total
VND VND VNDCOSTOpening balance 44,143,753,496 6,486,057,570 50,629,811,066
Additions 3,147,895,000 3,147,895,000
Disposals (210,000,000) (210,000,000)Closingbalance 44,143,753,496 9,423,952,570 53,567,706,066
ACCUMULATEDAMORTISATIONOpening balance 3,791,198,090 3,791,198,090Charge for the year 1,037,723,857 1,037,723,857Disposals (210,000,000) (210,000,000)Closingbalance 4,618,921,947 4,618,921,947
NET BOOKVALUEOpening balance 44,143,753,496 2,694,859,480 46,838,612,976
Closingbalance 44,143,753,496 4,805,030,623 48,948,784,119
13. CONSTRUCTION IN PROGRESS
Closing balance Opening balance:;::::.
VND VND ')0
Office building in Gia Lai 5,194,752,092 5,194,752,092 ./'
Office building in Can Tho 2,352,727,272 2,352,727,272 ;cOffice building in Da Nang 2,965,335,000 T
.;rERP software project 493,590,000
~Office building in Hung Yen 282,788,856
Other constructions 460,730,000 256,730,000 ---D8,008,209,364 11,545,923,220 ;:::;
14. INVESTMENTS IN SUBSIDIARIES
Traphaco Hung Yen CompanyLimitedTraphaco Hi-techJoint Stock CompanyTraphacoSapa One MemberCompany LimitedDak Lak PharmaceuticalandMedicalEquipment Joint StockCompany
ClosingbalanceCost ProvisionVND VND
250,000,000,000
71,382,500,000
26,675,000,000
18,669,176,011
366,726,676,011
Opening balanceCost ProvisionVND VND
250,000,000,000
71,382,500,000
26,675,000,000
18,669,176,011
366,726,676,011
The Company has not assessed fair value of its financial investments as at the balance sheet datesince there is no comprehensive guidance of relevant prevailing regulations on determination of fairvalue of these financial investments.
During the year, the Company's subsidiaries were profitable.
18
TRAPHACO JOINT STOCK COMPANY .NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)
FORM B 09-DN
15. SHORT-TERM TRADE PAYABLESOpeningbalanceClosingbalance
VND VND
Amount Amountableto Amount Amountabletobe paidoff be paidoff
Traphaco Hi-tech Joint Stock Company 39,920,864,634 39/920,864/634 28,440,946/142 28,440,946,142
NamumCNCCo, Ltd. 17/160/011/305 17,160/011,305
Traphaco HungYen Company Limited 13/094,357,317 13/094,357/317 27/363/302,400 27,363/302/400
Agricultural Printing and Packing 5/394/441/454 5,394/441,454 2,659/837/554 2/659/837/554
Joint Stock Company34/910/840,137 34/910/840,137Others 25/813/248/479 25/813,248/479
101,382,923,189 101,382,923,189 93,374,926,233 93,374,926,233
Tradepayablesto relatedparties 54,856,119,551 54,856,119,551 60,487,002,637 60,487,002,637(Detailspresentedin Note29)
16. TAXES AND AMOUNTS PAYABLES TO THE STATE BUDGETPayable Paid ClosingbalanceOpeningbalance during the year during the year
VND VND VND VNDOutput value added tax 5,283/577 ,328 25,579/245,234 26,738/142,813 4,124/679,749
Value added tax for imports 6/076/676,436 6,076/676,436
Import, export duties 1/293/787,665 1,293/787,665Corporate income tax 16,279/372,148 33/532/359/434 33,950/552,070 15,861,179,512 .-Personal income tax 2/795,152,780 13/901,718/879 13,693,236,807 3/003,634,852 112
Other taxes 2,022,302,565 2/022,302/565 N<;24,358,102,256 82,406,090,213 83,774,698,356 22,989,494,113 NH
0117. SHORT-TERM ACCRUED EXPENSES f1'l
Closing balance Opening balanceVND VND \ - ,
Discounts payable to customers 15,244,912,519 12,388,040,316Allowance for collaborators 8,950,950,439 3,443,521,782Other accruals 316,000,000 680,055,021
24,511,862,958 16,511,617,119
18. SHORT-TERM UNEARNED REVENUE
Short-term unearned revenue reflects the revenue corresponding to the accumulated points whichcustomers earned by purchasing the Company's products according to the Company's sales policybut not yet redeemed for products and gifts at the end of the financial year.
19. OTHER CURRENT PAYABLES
Dividends payable to shareholders
Social insurance, health insurance,unemployment insurance
Trade union fee
Remuneration of the Board of Directorsand Board of Supervision
Other payables
Dividends payable to related parties(Details presented in Note 29)
19
Closing balanceVND
83,637,352/978
461,4 76,271
63,903,891
239,192,150
692,354,946
85,094,280,236
62,830,372,000
Opening balanceVND
83,730,129,978
673,393,104
194,474,604
31,148,081
1,417,843,378
86,046,989,145
62,830,372,000
TRAPHACO JOINT STOCK COMPANYNOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued) FORM B 09-DN
20. OWNERS' EQUITY
Movement in owners' equity:
Owners'Investment andcontributed Share premium Treasury shares Retained earnings Total
capital development fund
VND VND VND VND VND VNDPrior year's opening balance 414,536,730,000 133,021,732,000 (3,593,000) 284,283,084,510 177,596,654,880 1,009,434,608,390- Profit in the year 150,380,703,330 150,380,703,330- Dividends declared from
(41,450,540,000)profit of 2017 (41,450,540,000)
- Distributions to investment and(46,526,134,796)development fund from profit of 2017 46,526,134,796
- Distributions to bonus and welfare(21,699,285,783) (21,699,285,783)funds from profit of 2017
- Distributions to bonus and welfare(13,534,263,300) (13,534,263,300)funds from profit of 2018
- Management bonus (2,000,000,000) (2,000,000,000)- Advances of dividend from
(82,901,080,000)profit of 2018 (82,901,080,000 )
Current year's opening balance 414,536,730,000 133,021,732,000 ( 3,593,000) 330,809,219,306 119,866,054,331 998,230,142,637- Profit in the year 117,726,513,539 117,726,513,539- Dividends declared from
(41,450,540,000)profit of 2018 (i) (41,450,540,000)
- Distributions to investment and(8,930,629,824)development fund from profit of 2018 (i) 8,930,629,824
- Distributions to bonus and welfare(530,746,774) (530,746,774)funds from profit of 2018 (i)
- Distributions to bonus and welfare(13,810,547,699) (13,810,547,699)funds from profit of 2019 (ii)
• Interim dividends from 2019 profit (iii) (82,901,080,000) (82,901,080,000)Current year's closing balance 414,536,730,000 133,021,732,000 (3,593,000) 339,739,849,130 89,969,023,573 977,263,741,703
20
\\-;}\ ~ ~ ~ ~ /'~'IJ_~~;5 %'11
TRAPHACO JOINT STOCK COMPANY .NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)
FORM B 09-DN
(i)
(ii)
(iii)
Shares
During the year, the Company made distributions and declared the remaining dividendsfrom 2018 profit according to the Resolution No. 10/2019/NQ-DHDCD dated 28 March 2019of the General Meeting of Shareholders and the Resolution No. 12/2019/NQ-HDQT dated28 May 2019 of Board of Directors as follows:
Items Total Temporarily made Addition allocatedduring 2018 during this year
- Distributions to bonus and welfare 14,065,010,074 13,534,263,300 530,746,774
funds- Distributions to investment and 8,930,629,824 8,930,629,824
development fund- Dividendspayment 124,351,620,000 82,901,080,000 41,450,540,000
147,347,259,898 96,435,343,300 50,911,916,598
Distributions to bonus and welfare fund were temporarily made from profit in 2019 at theexpected rate of 9% of consolidated profit after tax in accordance with the Resolution No.10j2019/NQ-DHDCD dated 28 March 2019 of the General Meeting of Shareholders.
The Company paid dividends by cash in advance from profits in 2019 at the rate of 20% ofcharter capital according to the Resolution No. 28/2019/NQ-HDQT dateed 09 December2019 of the Board of Directors. In particular, dividends were paid in January 2020.
Number of shares issued to the publicOrdinary shares
Number of treasury sharesOrdinary shares
Number of outstanding shares in circulationOrdinary shares
An ordinary share has par value of VND 10,000.
Charter capital
Closing balance
41,453,673
41,453,673
(3,133)
(3,133)
41,450,540
41,450,540
Opening bal
41,450,540
41,450,540
According to the Company's 22nd amended Enterprise Registration Certificate issued by the HanoiAuthority for Planning and Investment, the Company's charter capital is VND 414,536,730,000. Asat 31 December 2019, the charter capital has been fully contributed by the shareholders withownership structure as follows:
ClosingbalanceNumber of Ordinary shares
shares0/0
Opening balanceNumber of Ordinary shares
shares%
State Capitaland14,786,512 147,865,120,000 35.67% 14,786,512Investment Corporation 147,865,120,000 35.67%
MagbiFund Limited 10,361,385 103,613,850,000 25.00% 10,361,385 103,613,850,000 25.00%Super Delta pte Ltd 6,267,289 62,672,890,000 15.12% 6,267,289 62,672,890,000 15.12%Other shareholders 10,035,354 100,353,540,000 24.21% 10,035,354 100,353,540,000 24.21%Treasury shares 3,133 31,330,000 0.01% 3,133 31,330,000 0.01%
41,453,673 414,536,730,000 100% 41,453,673 414,536,730,000 100%
21
TRAPHACO JOINT STOCK COMPANY . FORM B 09-DNNOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)
21. OFF BALANCE SHEET ITEMS
Closing balance Opening balance
Foreign currencies 12,647.66 6,163.41United States Dollar (USD)
Bad debts written off
Bad debts written off (VND) 2,473,112,684 2,473,112,684
22. REVENUE
Current year Prior year
VND VND
Revenue from sale of goods and rendering of 1,782,781,100,232 1,683,214,454,690
servicesIn which:
Sales of finished goods 1,175,890,932,232 1,253,035,153,891
Sales of merchandises 299,786,019,103 314,374,895,541
Sales of raw materials 304,366,205,375 112,925,264,175
Rendering of services 2,737,943,522 2,879,141,083
Deductions (6,789,374,360) (12,231,032,974 )
Sales return (6,789,374,360) (12,231,032,974 ) -=Net revenue from goods sold and services 1,775,991,725,872 1,670,983,421,716
0\ ,---rendered ONRevenue from related parties 353,056,066,697 168,278,522,144 TN(Details stated in Note 29)
.;U~1
23. COST OF SALES ~~Current year Prior year
VND VND
Cost of finished goods sold 619,061,866,003 639,982,217,239Cost of merchandise sold 164,987,864,640 194,684,250,779Cost of raw materials 304,249,027,554 112,781,439,402Cost of services rendered 579,683,297 745,951,061
1,088,878,441,494 948,193,858,481
24. PRODUCTION COST BY NATURE
Current year Prior yearVND VND
Raw materials and consumables 605,552,801,205 624,497,878,154Labour 253,995,185,835 251,775,672,560Expenses for external services 93,901,078,679 57,770,460,000Depreciation, amortisation of fixed assets 16,460,193,505 16,249,669,701Other expenses 189,672,443,128 265,527,017,376
1,159,581,702,352 1,215,820,697,791
22
TRAPHACO JOINT STOCK COMPANYNOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued) FORM B 09-DN
25. FINANCIAL INCOMES
Current year Prior yearVND VND
Interest income 3,236,726,215 934,955,308
Dividend income 16,401,425,700 19,198,726,306
Foreign exchange gain 43,538,571 60,269,15119,681,690,486 20,193,950,765
26. SELLING EXPENSES AND GENERAL AND ADMINISTRATION EXPENSES
Current year Prior yearVND VND
General and administration expenses arising inthe year
Labour costs 54,530,802,876 58,707,451,325Expenses for external services 17,268,946,309 13,000,228,560Depreciation and amortisation 3,652,715,531 3,219,196,901Provision/(reversal) of provision for doubtful debts 2,489,746,954 (1,041,355,442)Others 24,734,320,381 31,294,359,713
102,676,532,051 105,179,881,057 -25Selling expenses arising in the yearLabour costs 124,389,185,600 108,092,968,541 GAdvertising ex penses 61,345,169,990 72,705,226,740 H~
Sales discounts 61,647,833,098 73,912,981,623 ,I'
Allowance for freelancers 71,719,419,301 66,361,750,793Depreciation and amortisation 7,875,960,747 7,234,581,389 .-jOther selling expenses 125,362,845,180 120,849,735,590 .-'
452,340,413,916 449,157,244,676
27. CORPORATE INCOME TAX EXPENSE
Current year Prior yearVND VND
Current corporate income tax expense- Corporate income tax expense based on taxable 32,867,663,247 34,535,855,883profit in the current year
- Adjustments for corporate income tax expense in 664,696,187 715,228,725previous years to the current year
Total current corporate income tax expense 33,532,359,434 35,251,084,608
23
TRAPHACO JOINT STOCK COMPANYNOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)
The current corporate income tax expense for the year was computed as follows:
Current yearVND
FORM B 09-DN
Prior yearVND
Profit before taxLess:- Dividends and profit received
Add:- Deferred revenue for unused points earned bycustomers- Expenses with inadequate legal supportingdocuments- Allowance for non-executive members of theBoard of Directors- Depreciation expense exceeding allowable cap
- Other non-deductible expensesTaxable profit for the current year afteradjustment
Corporate income tax rateCorporate income tax expense based on taxableprofit in the current year
151,258,872,973
16,401,425,700
20,480,269,379
2,786,500,000
2,891,000,000
126,083,304
3,197,016,277
164,338,316,233
20%
32,867,663,247
185,631,787,938
19,198,726,306
2,759,200,000
3,205,000,000
126,083,312
155,934,469
172,679,279,413
20%
34,535,855,883
28. COMMITMENTS
Operating lease commitments
At the end of financial year, the Company had outstanding commitments under non-cancelableoperating leases, which fall due as follows:
T'I;'1A
Within one year
In the second to fifth year inclusive
After five years
Current yearVND
3,876,215,529
10,596,329,858
8,787,097,500
23,259,642,887
Prior yearVND
3,826,817,142
10,476,463,729
10,822,146,900
25,125,427,771
Operating lease commitments represent the amount payable for land and office and other leasesfor the purpose of corporate production and business activities under signed operating leasecontracts.
Guarantee commitment
According to the guarantee commitment dated 20 April 2015 between the Company, Traphaco HungYen Company Limited (a subsidiary of the Company) and Vietnam Joint Stock Commercial Bank forIndustry and Trade - Ba Dinh Branch, the Company has committed to an irrevocable guarantee withthe maximum value of VND 250 billion for long-term loans granted to Traphaco Hung Yen CompanyLimited by Vietnam Joint Stock Commercial Bank for Industry and Trade - Ba Dinh Branch to investin the Pharmaceutical Factory project in Hung Yen province. This guarantee commitment is validuntil all obligations of Traphaco Hung Yen Company Limited to the bank are fulfilled.
24
TRAPHACO JOINT STOCK COMPANYNOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued)
29. RELATED PARTY TRANSACTIONS AND BALANCES
FORM B 09-DN
List of related parties with significant transactions and balances for the year:
Related parties
TraphacoSapa One Member Company LimitedTraphaco Hi-tech Joint Stock CompanyDak Lak Pharmaceutical and Medical Equipment Joint Stock Company
Traphaco Hung Yen Company LimitedState Capital and Investment Corporation
Magbi Fund Limited
Super Delta pte. Ltd
Relationship
Subsidiary
Subsidiary
Subsidiary
SubsidiaryMajor shareholder
Major shareholder
Major shareholder
During the year, the Company entered into the following significant transactions with itsrelated parties:
Current year Prior yearVND VND
Sales of goods and services 353,056,066,697 168,278,522,144
Traphaco Hi-tech Joint Stock Company 183,723,880,799 1,405,961,200
Traphaco Hung Yen Company Limited 117,561,322,374 127,615,480,393
Dak Lak Pharmaceutical and Medical Equipment 34,102,216,139 24,911,489,961Joint Stock CompanyTraphacoSapa One Member Company Limited 17,668,647,385 14,345,590,590 ~
Purchases 670,901,122,603 566,435,925,984.~-<,
Traphaco Hi-tech Joint Stock Company 354,558,521,013 279,550,862,371
Traphaco Hung Yen Company Limited 292,269,442,500 257,199,590,470 "E
TraphacoSapa One Member Company Limited 24,073,159,090 29,685,473,143 )~Dividends received
;:~16,401,425,700 19,123,300,306 "~
Traphaco Hi-tech Joint Stock Company 14,479,965,000 16,410,627,000Dak Lak Pharmaceutical and MedicalEquipment 1,921,460,700 2,712,673,306Joint Stock Company
Dividends paid 94,245,558,000 94,245,558,000State Capital and Investment Corporation 44,359,536,000 44,359,536,000Magbi Fund Limited 31,084,155,000 31,084,155,000Super Delta pte Ltd 18,801,867,000 18,801,867,000
25
TRAPHACO JOINT STOCK COMPANYNOTES TO THE SEPARATE FINANCIAL STATEMENTS (Continued) FORM B 09-DN
Significant related party balances as at the balance sheet date were as follows:
Short-term trade receivables
Traphaco Hi-tech Joint Stock Company
TraphacoSapa One Member Company Limited
Dak Lak Pharmaceutical and Medical EquipmentJoint Stock CompanyTraphaco Hung Yen Company Limited
Short-term trade payablesTraphaco Hi-tech Joint Stock Company
Traphaco Hung Yen Company Limited
TraphacoSapa One Member Company Limited
Dividends payable
State Capital and Investment Corporation
Magbi Fund Limited
Super Delta Pte.Ltd
Closing balanceVND
112,554,660,842
111,275,001,011
1,163,045,606
116,614,225
54,856,119,551
39,920,864,634
13,094,357,317
1,840,897,600
62,830,372,000
29,573,024,000
20,722,770,000
12,534,578,000
Opening balanceVND
29,702,716,081
1,658,358,723
356,976,012
27,687,381,346
60,487,002,637
28,440,946,142
27,363,302,400
4,682,754,095
62,830,372,000
29,573,024,000
20,722,770,000
12,534,578,000
Board of Directors and Executive Board's remuneration during the year:
Remuneration of Board of Directors and Executive Board
Current yearVND
8,445,679,070
Prior yearVND
9,411,917,343
Nguyen Thi Ngoc ThuyPreparer
Dinh Trung KienChief Accountant
26
Tran Tuc MaChief Executive Officer
29 February 2020