2.3-Audited Financial Report 2010

LS- VINA CABLE JOINT STOCK COMPANY
(Incorporated in the Socialist Republic of Vietnam)
AUDITED FINANCIAL
STATEMENTS
For the year ended 31 December 2010
LS-VINA CABLE JOINT STOCK COMPANY
So Dau Ward, Hong Bang District
Haiphong City, S.R. Vietnam
TABLE OF CONTENTS
CONTENTS PAGE(S)
STATEMENT OF THE BOARD OF DIRECTORS 1-2
AUDITORS' REPORT 3
BALANCE SHEET 4-5
INCOME STATEMENT 6
CASH FLOW STATEMENT 7
NOTES TO THE FINANCIAL STATEMENTS 8 - 20
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STATEMENT OF THE BOARD OF DIRECTORS
The Board of Directors of LS-Vina Cable Joint Stock Company ("the Company") presents this report together with
the Company's financial statements for the year ended 31 December 201O.
THE BOARDS OF MANAGEMENT AND DIRECTORS
The members of the Boards of Management and Directors of the Company who held office during the year and at
the date of this report are as follows:
Board of Management
Mr. Seung Chan Lee Chairman

Mr. Nghiem Duc Minh Vice Chairman
Mr. Myung Kyu Choi Member
Mr. Yeon Soo Kim Member
Mr. Roe Hyun Myung Member
Mr. Sung Kyun Yoon Member
Mr. Do Huy Dat Member
Mr. Jong Tae Choi Member
Board of Directors
Mr. Seung Chan Lee General Director

Mr. Nghiem Duc Minh First Deputy General Director
Mr. Sung Kyun Yoon Managing Director cum Chief Accountant
Mr. Gi Su Kim Business Director
Mr. Sung Su Hong Factory Director
BOARD OF DIRECTORS' STATEMENT OF RESPONSIBILITY
The Board of Directors of the Company is responsible for preparing the financial statements of each year, which
give a true and fair view of the financial position of the Company and of its results and cash flows for the year. In
preparing these financial statements, the Board of Directors is required to:
• Select suitable accounting policies and then apply them consistently;

• Make judgments and estimates that are reasonable and prudent;
• State whether applicable accounting principles have been followed, subject to any material departures
disclosed and explained in the financial statements;
• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
Company will continue in business; and
• Design and implement an effective internal control system for the purpose of properly preparing and
presenting the financial statements so as to minimise enors and frauds.
STATEMENT OF THE BOARD OF DIRECTORS (Continued)
The Board of Directors is responsible for ensuring that proper accounting records are kept, which disclose, with
reasonable accuracy at any time, the fmancial position of the Company and to ensure that the financial statements
comply with Vietnamese Accounting Standards, Vietnamese Accounting System and prevailing relevant
regulations in Vietnam. The Board of Directors is also responsible for safeguarding the assets of the Company and
hence for taking reasonable steps for the prevention and detection of fraud; and other irregularities.
The Board of Directors confirms that the Company has complied with the above requirements in preparing these
financial statements.
For and on behalf of the Board of Directors,
2
Deloitte. Deloitte Vietnam Company
12A Flaar, Vinacanex Tawer
limited
34 Lang Ha Street, Dang Da District

Ha Nai, Vietnam
Tel: +84 (0)4 6288 3568
Fax: +84 (0)4 6288 5678
www.delaitte.cam/vn
No.: 2-.~A /Deloitte-A UDHN-RE
AUDITORS' REPORT
Ta: The Boards of Management and Directors

LS-Vina Cable Joint Stock Company
We have audited the accampanying balance sheet .of LS-Vina Cable Jaint Stack Campany ("the Campany") as at
31 December 20 I0, the related statements .of income and cash flaws far the year then ended, and the nates thereto
(collectively referred ta as "the financial statements"), as set aut fram page 4 ta page 20. The accampanying
financial statements are nat intended ta present the financial pasitian, results .of aperatians and cash flaws in
accardance with accaunting principles and practices generally accepted in cauntries and jurisdictians ather than
Vietnam.
Respective Responsibilities of the Board of Directors and Auditors
As stated in the Statement .of the Baard .of Directars an pages I and 2, these financial statements are the
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respansibility .of the Campany's Baard .of Directars. Our respansibility is ta express an apinian an these financial ;IHI~M
statements based an .our audit. ":'LOI
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Basis of Opinion
We have canducted .our audit in accardance with Vietnamese Standards an Auditing. Thase standards require that
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we plan and perfarm the audit ta .obtain reasanable assurance that the financial statements are free .of material
misstatements. An audit includes examining, an a test basis, evidence supparting the amaunts and disclasures in the
financial statements. An audit alsa includes assessing the accaunting principles used and significant estimates made
by management, as well as evaluating the .overall financial statement presentatian. We believe that .our audit
pravides a reasanable basis far .our apinian.
Opinion
In .our apinian, the accampanying financial statements give a true and fair view .of, in all material respects, the
financial pasitian .of the Campany as at 3 I December 20 I0 and the results .of its aperatians and its cash flaws far
the year then ended in accardance with Vietnamese Accaunting Standards, Vietnamese Accaunting System and
prevailing relevant regulatians in Vietnam.
Nguyen Tuan Anh

Auditor
CPA Certificate Na. N. 129 I/KTV
For alld Oil behalf of
DELOITTE VIETNAM COMPANY LIMITED
4 March 2011
Hanoi, S.R. Vietnam
Member .of
Audit. Tax.Consulting.Financial Advisory. Deloitte Touche Tohmatsu limited
3
So Dau Ward, Hong Bang District Financial statements
Haiphong City, S.R. Vietnam For the year ended 31 December 2010
BALANCE SHEET
As at 31 December 2010
FORM B 01-D T
Unit: VND
ASSETS Codes Notes 31/1212010 31/12/2009

A. CURRENT ASSETS 100 2,070,489,394,441 1,381,349,042,838
(100=110+130+140+150)
I. Cash and cash equivalents no 5 188,920,092,668 71,403,285,300
I. Cash III 108,920,092,668 71,403,285,300
2. Cash equivalents 112 80,000,000,000
n. Short-term receivables 130 633,193,921,321 728,064,757,043
I. Trade accounts receivable 131 633,829,284,427 747,126,682,638
2. Advances to suppliers 132 23,648,476,017 764,782,555
3. Other receivables 135 4,306,204,043 755,247,758
4. Provision for short-tenn doubtful debts 139 (28,590,043,166) (20,581,955,908)
III. Inventories 140 6 1,168,818,407,841 565,728,874,389
I. Inventories 141 1,168,818,407,841 ~
565,728,874,389 "
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IV. Other short-term assets 150 79,556,972,611 16,152,126,106 ':U H~N
1. Short-term prepayments 151 4,497,983,942 2,085,523,778
2. VAT deductibles 152
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73,628,534,767 13,548,226,054
3. Other short-term assets 158 1,430,453,902 518,376,274 ~
B. NON-CURRENT ASSETS
(200=210+220+250+260)
200 329,978,032,375 308,207,675,520 :J;
I. Long-term receiva bles 210 626,913,839
1. Other long-term receivables 218 626,913,839
II. Fixed assets 220 322,831,667,943 299,341,159,650
1. Tangible fixed assets 221 7 251,200,490,697 265,891,645,803
- Cost 222 551,923,492,489 534,176,318,943
- Accumulated depreciation 223 (300,723,001,792) (268,284,673,140)
2. Intangible fixed assets 227 8 28,318,658,062 32,850,879,665
- Cost 228 41,891,657,506 41,891,657,506 ~
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- Accumulated amortisation 229 (13,572,999,444) (9,040,777,841) )
3. Construction in progress 230 9 43,312,519,184 598,634,182 I
III. Long-term financial investments 250 1,200,205,909
I. Other long-term financial investments 258
\
1,200,205,909 )'
't
IV. Other long-term assets 260 7,146,364,432 7,039,396,122
1. Long-term prepayments 261 5,115,840,820 5,559,270,129
2. Deferred tax assets 262 10 2,030,523,612 1,480,125,993
TOTAL ASSETS (270=100+200) 270 2,400,467,426,816 1,689,556,718,358
The notes set out on pages 8 to 20 are an integral part of these financial statements
4
BALANCE SHEET (Continued)

As at 31 December 2010
FORM B 01-DN
Unit: VND
31/12/2010 31/12/2009
A. LIABILITIES (300=310+330) 300 2,020,520,220,836 1,294,028,996,983
I. Current liabilities 310 2,016,759,570,836 1,290,735,919,483
I. Short-term borrowings and liabilities 311 II 1,081,187,78 I, I 04 9 I6,239,668,661
2. Trade accounts payable 312 827,225, I 83,547 265,834,900,89 I
3. Advances from customers 313 59,66 1,015,870 70,273,308,853
4. Taxes and amounts payable to the State budget 314 12 I 1,566,947,298 18,5 I0,340, I97
5. Payables to employees 315 5,768,673,457 4,30 I,004,354
6. Accrued expenses 316 17,865,326,404 I 1,746,872,416
7. Other current payables 319 12,593,577,619 3,153,488,618
8. Bonus and welfare funds 323 891,065,537 676,335,493
II. Long-term liabilities 330 3,760,650,000 3,293,077 ,500
I. Provision for severance allowance 336 3,760,650,000 3,293,077,500
B. EQUITY (400=410) 400 379,947,205,980 395,527,721,375
I. Shareholders' equity 410 13 379,947,205,980 395,527,721,375
I. Chartered capital 411 173,366,897,572 173,366,897,572
2. Investment and development fund 417 3,710,095,967 3,710,095,967
3. Financial reserve fund
4. Retained earnings
418 6,476,483,648 6,476,483,648 i~~
420 196,393,728,793 211,974,244,188
TOTAL RESOURCES (440=300+400) 440 2,400,467,426,816 1,689,556,718,358
OFF BALANCE SHEET ITEMS
Unit 31/12/2010 31/12/2009
I. Materials, goods held under trust VND 15,843, I23,075 228, 157,240,666
2. Foreign currencies
USD 460,728.73 21,661.22
EUR 0.53 76.20
4 March 2011
4-
Sung Kyun Yoon
Chief Accountant
Dinh Kim Cuong
Preparer
The notes set out on pages 8 to 20 are an integral part ojthesejinancial statements
5
INCOME STATEMENT
For the year ended 31 December 201O
FORM B 02-DN
Unit: VND
ITEMS Codes Notes 2010 2009
1. Gross sales 01 4,687,137,180,538 3,258,559,805,324

2. Less deductions 02 2,688,296,090 2,669,602,636
3. Net sales 10 4,684,448,884,448 3,255,890,202,688
(10=01-02)
4. Cost of sales 11 4,474,542,217,609 2,972,861,630,965

5. Gross profit from sales
(20=10-\1) 20 209,906,666,839 283,028,571,723
6. Financial income 21 14 86,912,793,306 48,929, III,903

7. Financial expenses 22 15 173,045,004,603 126,516,359,835
Including: Interest expense 23 48,779,846,365 40,025,118,495
8. Selling expenses 24 16 75,447,875,055 ~
58,315,927,486
9. General and administration expenses
10. Operating profit

(30=(20+(2\- 22)-(24+ 25))
\ 1. Other income
25
30
3\
17 40,583,635,6\9
7,742,944,868
1,900,050, I\5
33,882,69\ ,421
113,242,704,884
2,98\ ,548,860
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\2. Other expenses 32 ~

2,3\ 0,887,868 398,230,598
13. (Loss)/Profit from other activities (40=3 1-32) 40 (410,837,753) 2,583,318,262
14. Accounting profit before tax 50 7,332,107,115 115,826,023,146
(50=30+40)
\5. Current income tax expense 51 \8 5,\26,330,384 32,266,93\ ,232

\6. Deferred income tax (benefit)/expense 52 \0 (550,397,6\9) 2,529,340,265
17. Net profit after income tax (60=50-5\-52) 60 2,756,174,350 81,029,751,649
Sung Kyun Yoon Dinh Kim Cuong

Chief Accountant Preparer
4 March 2011
6
Financial statements
CASH FLOW STATEMENT

For the year ended 31 December 2010
FORM B 03-DN
Unit: VND
Codes 2010 2009

ITEMS --------
I. CASH FLOWS FROM OPERATING ACTIVITIES
1. Profit before tax 01 7,332,107,115 115,826,023,146
2. Adjustments for:
- Depreciation and amortisation 02 37,421,070,728 39,321,932,704
- Provisions 03 8,008,087,258 7,768,791,773
- (Increase) in deferred tax assets 04 (550,397 ,619) (2,529,340,265)
- Unrealised foreign exchange (gain)/Ioss 05 (43,185,222,738) 5,707,099,281
- (Gain) from investing activities 06 (2,402,237,022) (1,246,309,217)
- Interest expense 07 48,779,846,365 40,025,118,495
3. Operating profit before movements in working capital 08 55,403,254,087 204,873,315,917
- Decrease/(Increase) in receivables 09 33,878,449,381 (269,759,785,101)
- (Increase)/Decrease in inventories 10 (603,089,533,452) 2,916,277,714
- Increase in accounts payable (not including accrued
11 588,356,756,374 153,329,116,160
interest and corporate income tax payable)
- (Increase )/Decrease in prepaid expenses 12 (1,969,030,855) 7,656,376,859
--=
-.Cl i 1:
- Interest paid
- Corporate income tax paid
13
14
(48,556,188,242)
(5,902,187,322)
(41,323,426,303)
(28,474,894,771)
---
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- Other cash inflows 15 626,913,839 58,549,334,024
- Other cash outflows 16 ~ NHlf
(1,086,353,760)
Net cash from operating activities 20 18,748,433,810 86,679,960,739 ~lO
II.
I.
2.
3.
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition and construction of fixed assets
Proceeds from sale, disposal of fixed assets
Interest earned
21
22
27
(51,305,257,197)
119,181,818
2,343,026,239
(32,394,853,257)
26,635,098
1,246,309,217
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=
Net cash (used in) investing activities 30 (48,843,049,140) (31,121,908,942)
III. CASH FLOWS FROM FINANCING ACTIVITIES
I. Proceeds from borrowings 33 3,236,460,276,116 1,558,718,974,615
2. Repayment of borrowings 34 (3,071,512,163,673) (1,566,467,834,852)
3. Repayment of obligations under finance lease 35 (5,015,676,731 )
4. Dividends paid 36 (17,336,689,745) (17,336,689,774)
Net cash from/(used in) financing activities 40 147,611,422,698 (30,101,226,742)
Net increase in cash 50 117,516,807,368 25,456,825,055
Cash and cash equivalents at the beginning of the year 60 71,403,285,300 45,946,460,245
Cash and cash equivalents at the end of the year 70 188,920,092,668 71,403,285,300
Supplemental non-cash disclosures
Sung Kyun Yoon

Chief Accountant
4 March 2011
7
NOTES TO THE FINANCIAL STATEMENTS FORM B 09-DN

These notes are an integral part of and should be read in conjunction with the accompanying financial statements
1. GENERAL INFORMATION
Structure of ownership
LS-Vina Cable Joint venture Company was incorporated in Vietnam for 43 years under Investment
License No. 1481/GP dated 25 January 1996 issued by the Ministry of Planning and Investment and as
amended. The Company is converted to LS-Vina Cable Joint Stock Company based on Decree No.
10 1/2006/ND-CP dated 21 September 2006.
The shareholders of the Company are as follows:
Vietnamese party: Haiphong People's Committee

LS Cable Vietnam Co., Ltd.
Foreign party: LG Cable Ltd. (currently known as LS Cable Ltd.)
FOImerly, Vietnamese party was Electricity and Water Machine Assembly Company, a state-owned
enterprise. When this company started operating under the model of a joint stock company, capital
contributed by this company in the Company was transferred to Haiphong People's Committee.
LG International Corp., foreign party, transferred its contributed capital in the Company to LS Cable
Vietnam Co., Ltd. under capital transfer contract dated 10 April 2008.
The investment capital and chartered capital of the Company are USD 54,180,000 and USD 13,272,857,
respectively.
The Company's head office is located at So Dau Ward, Hong Bang District, Haiphong City.
The number of employees of the Company as at 31 December 20 I0 was 451 (31 December 2009: 341).
Operating industry and principal activities
Principal activities of the Company are to produce and sell high, medium and low voltage cable, OPGW
and copper and aluminium rods.
2. ACCOUNTING CONVENTION AND ACCOUNTING PERIOD
Accounting convention
The accompanying financial 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. Nevertheless, the financial statements
of the Company have been translated from Vietnamese ones issued in Vietnam into English.
Accounting period
The Company's financial year begins on 0 I January and ends on 31 December.
3. NEW ACCOUNTING GUIDANCE IN ISSUE NOT YET ADOPTED
On 06 November 2009, the Ministry of Finance issued Circular No.21 0/2009/TT-BTC ("Circular 210")
guiding the application of International Financial Reporting Standards on presentation of financial
statements and disclosures of financial instruments. The adoption of Circular 210 requires disclosures of
certain financial instruments as well as the effect thereof on the financial statements. This Circular is
effective for the financial year ending on or after 31 December 20 II. The Board of Directors is
considering the extent of impact of the adoption on the Company's financial statements for future
accounting periods.
8
Haiphong City, S.R. Vietnam For the year ended 31 December 20 I0
NOTES TO THE FINANCIAL STATEMENTS (Continued) FORM B 09-DN

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies, which have been adopted by the Company in the preparation of these
financial statements, are as follows:
Estimates
The preparation of financial statements in conformity with Vietnamese Accounting Standards, the
Vietnamese Accounting System and prevailing relevant regulations in Vietnam requires management to
make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the financial year. Actual results could differ from those estimates. .
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
insignificant risk of changes in value.
Receivables and provision for doubtful debts
A provision for doubtful debts is made for receivables that are overdue for six months or more, or when
the debtor is in dissolution, in bankruptcy, or is experiencing similar difficulties and so may be unable to
repay the debt.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and
where applicable, direct labour costs and those overheads that have been incurred in bringing the
inventories to their present location and condition. Cost is calculated using the weighted average method.
Net realisable value represents the estimated selling price less all estimated costs to completion and costs
to be incurred in marketing, selling and distribution.
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less accumulated depreciation.
The cost of purchased tangible fixed assets comprises its purchase price and any directly attributable costs
of bringing the assets to its working condition and location for its intended use.
The costs of tangible fixed assets constructed by contractors are the finally accounted cost of the work,
directly related expenses and registration fee.
Tangible fixed assets are depreciated using the straight-line method over their estimated useful lives as
follows:
(Years)
Buildings and structures 05 - 25
Machinery and equipment 05 - 15
Motor vehicles 06 - 10
Office equipment 03 - 10
Intangible fixed assets and amortisation
Intangible fixed assets represent land use rights and management and accounting software that are stated
at cost less accumulated amortisation. Land use rights are amortised using the straight-line method the
over the duration of the right to use the land. Management and accounting software is amortised over the
period of 5 years.
9
Haiphong City, S.R. Vietnam For the year ended 31 December 20 I0

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
Long-term prepayments
Long-term prepayments comprise cost of materials, tools and supplies, repairing and insurance expenses
which are expected to provide future economic benefits to the Company for more than one year. These
expenditures have been capitalised as long-term prepayments, and are allocated to the income statement
using the straight-line method in accordance with the current prevailing accounting regulations.
Revenue recognition
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 significmt risks and rewards of ownership of the goods;
(b) the Company retains neither continuing managerial involvement to the degree usually associated with ~
ownership nor effective control over the goods sold;
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(c) the amount of revenue can be measured reliably; iAAC
(d) it is probable that the economic benefits associated with the transaction will flow to the Company; D
and
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(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably. .'} ,
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Foreign currencies
The Company applies the method of recording foreign exchange differences in accordance with
Vietnamese Accounting Standard No. 10 (V AS 10) "Effects of changes in foreign exchange rates".
Accordingly, transactions arising in foreign currencies are translated at exchange rates ruling at the
transaction date. Monetary assets and liabilities denominated in foreign currencies are retranslated at the
rates of exchange prevailing on the balance sheet date. Exchange differences arising from the translation
of these accounts are recognised in the income statement. Unrealised exchange gains at the balance sheet
date are not treated as part of distributable profit to shareholders.
Borrowings 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 specific 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.
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 req.lired to settle the obligation at the balance sheet date.
10
Haiphong City, S.R. Vietnam For the year ended 31 December 20 1 °
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as
reported in the 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 recognised on significant differences between carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit and is
accounted for using balance sheet liability method. Deferred tax liabilities are generally recognised for all
temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable
profit will be available against which deductible temporary differences can be utilised.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is
settled or the asset realised. Deferred tax is charged or credited to profit or loss, except when it relates to
items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Company intends to settle its current tax assets and liabilities on a net basis.
The determination of the tax currently payable is based on the current interpretation of tax regulations. lNG
However, these regulations are subject to periodic variation and their ultimate determination depends on IlHlfM
the results of the tax authorities' examinations. :lOr
Other taxes are paid in accordance with the prevailing lax laws in Vietnam. ;T N
5. CASH AND CASH EQUIVELENTS

31/12/2010 31/12/2009
VND V'D
Cash on hand 259,628,673 166,612,762
Cash in bank 108,660,463,995 71,236,672,538
Cash equivalents 80,000,000,000
188,920,092,668 71,403,285,300
6. INVENTORIES
31/1212010 31/12/2009
VND V'D .I
Goods in transit 580,922,893,282 239,363,845,312
Raw materials 141,916,645,138 135,012,855,849 ".r
Tools and supplies 1,177,011,345 978,472,147
Work in progress 286,786,233,457 41,482,705,854
Finished goods 153,459,772,350 147,768,396,085
Merchandise 4,555,852,269 1,122,599,142
Total 1,168,818,407,841 565,728,874,389
Less: Provision for devaluation of inventa"ies
Net realisable value 1,168,818,407,841 565,728,874,389
As noted in Note 11, as at 31 December 2010, all inventories were provided as security for loans obtained
from Indovina Bank - Haiphong branch.
11
So Dau Ward, Hong Bang District Financial statcmcnts

These notes are an integral part of and should be read in conjunction with the accompanyingjinancial statements
7. TANGIBLE FIXED ASSETS

Unit: VND
Buildings and Machincry Motor Office
structures and equipment vehicles equipment Total
COST
As at 01/0112010 89,580,486,262 430,700,792,166 10,860,672,726 3,034,367,789 534,176,318,943
Purchases - 17,114,287,123 915,788,000 227,589,931 18,257,665,054
Disposals - - 218,574,600 291,916,908 510,491,508
As at 31/12/2010 89,580,486,262 447,815,079,289 11,557,886,126 2,970,040,812 551,923,492,489
ACCUMULATED DEPRECIA nON
As at 0110112010 28,080,609,231 234,700,409,249 3,431,567,246 2,072,087,414 268,284,673,140
Charge for the year 4,040,256,971 27,287,980,377 1,141,717,322 418,894,455 32,888,849,125
Disposals - - 176,681,134 273,839,339 450,520,473
As at 31/12/2010 32,120,866,202 261,988,389,626 4,396,603,434 2,217,142,530 300,723,001,792
NET BOOK VALUE
As at 31/12/2010 57,459,620,060 185,826,689,663 7,161,282,692 752,898,282 251,200,490,697
As at 31/12/2009 61,499,877 ,031 196,000,382,917 7,429,105,480 962,280,375 265,891,645,803
As stated in Note 11 - "Short-term borrowings and liabilities", the Company mortgaged its buildings and structures, machinery and equipment with the carrying value as at 31
December 2010 of VND 0 (2009: VND 21,025,382,977) and VND 64,782,658,677 (2009: VND 44,634,771,645), respectively, to secure the short-tenn borrowings under
credit contract No. 239-87-0080 dated 24 July 2008 and amended appendixes signed between the Company and Shinhan Vina Bank - Hanoi Branch. (Under the new contract
between LS- Vina Cable Joint Stock Company and Shinhan Vina Bank - Hanoi Branch in December 2010, the Company does not mortgage the buildings and structures, but
mortgage additional machinery and equipment instead).
As at 31 December 2010, the cost of fixed assets which have been fully depreciated but are still in use was VND 151,142,051,376 (31 December 2009: VND 144,032,369,281).
12
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8. INT ANGIBLE FIXED ASSETS
Unit: VND
Management
and accounting
Land use rights software Total
COST
As at 01/01/2010 25,627,888,700 16,263,768,806 41,891,657,506
Additions
As at 31/1212010 25,627,888,700 16,263,768.806 41,891,657,506
ACCUMULA TED AMORTISATION
As at 01/01/2010 4,983,200,577 4,057,577 ,264 9,040,777,841
Charge for the year 711,885,797 3,820,335,806 4,532,221,603
As at 31/1212010 5.695,086,374 7,877.913,070 13,572,999,444
NET BOOK VALUE
As at 31/12/2010 19,932,802.326 8,385,855,736 28,318,658,062
As at 31/12/2009 20,644,688,123 12,206,191,542 32,850,879,665
9. CONSTRUCTION IN PROGRESS
2010 2009
VND VND
As at 01 January 598,634,182 36,186,422,140
Additions 59,424,016,310 32,028,277,275
Transfer to fixed assets 16,710,131,308 67,616,065,233
As at 31 December 43,312,519,184 598,634,182
10. DEFERRED TAX ASSETS

Unit: VND
Accruals and other Un realised foreign

provisions exchange losses Total
As at 01/01/2010 143,917,008 1,336,208,985 1,480,125,993

Charge to profit or loss for the
(104,922,620) 655,320,239 550,397,619
year
As at 31/12/2010 38,994,388 1,991,529,224 2,030,523,612
13

11. SHORT-TERM BORROWINGS AND LIABILITIES
31/12/2010 31/12/2009
VND VND
Bank loans (*) 1,081,187,781,104 889,328,168,661

Current portion of long-term loans 26,911,SOO,000
1,081,187,781,104 916,239,668,661
(*) Short-term borrowings from banks include:
The short-term borrowings were obtained from Indovina Bank - Haiphong Branch under credit
contract No. OISCL/IVB HP-CR-2010 dated 18 May 2010. Accordingly, the loans can be drawn up
to a maximum amount of USD 10,000,000 'and expire on 06 April 2011. Each promissory note falls
due within 6 months. An interest at the annual rate of 3-month SIBOR plus 3.6% (but not less than
4.2% per annum) prevailing on the disbursement date is applied for loans in USD. The interests are
payable on the due date of the loans or before, depending on the Bank's decision. These loans are
secured by all of the Company's inventories including raw materials, semi-finished goods, fmished
goods, merchandise and the others at the value worth at least IS0% of the outstanding loans shown
under asset mortgage contract No. 0 ISAM/IVB HP-CR/20 IOdated 18 May 2010 signed between the
Company and Indovina Bank - Haiphong Branch. Based on the examination result at the end of each
month and the reconciliation with figures in the Company's balance sheet, the value of inventories ~
will be agreed by the Company and the Bank. (CO
TRACH I
The short-term borrowings were obtained from Woori Bank - Hanoi Branch under credit contract No. E
WLSCLN 100224-0S dated 24 February 20 I0 and amended appendixes. Accordingly, the loans can
. VIE
be drawn up to a maximum amount ofUSD 18,000,000 and expire on 23 February 2011. These loans
are secured under trust and bear an interest that is payable at the end of each month at the annual rate
~
.~
of3-month SIBOR plus 3.S%.
The short-term borrowings were obtained from Korean Exchange Bank - Hanoi Branch in the form of
letter of credit No. W301 00 121 dated IS March 20 I0 and amended appendixes. Accordingly, the
loans can be drawn up to a maximum amount of USD IS,OOO,OOOand expire on 24 November 2011.
These loans are secured under trust and bear an interest at the annual rate of 3-month LlBOR plus
3.6% till 24 November 2011. The interest is payable on the ISth day of each month.
The short-term borrowings were obtained from Standard Chartered Bank Vietnam and Standard
Chartered Bank - Hanoi Branch in the form of letter of credit No. SBFL/l 0-12 dated 14 May 2010
and letter of credit No. SBFL/IS-IS dated 14 May 2010, respectively. The loans can be drawn up to a
maximum amount ofUSD 7,300,000 (or VND equivalent) and USD 7,700,000 (or VND equivalent),
respectively. The Company can withdraw these loans in VND or USD. The loans are secured under
trust and bear an annual interest rate (for loans in USD) of the Bank's mobilisation rate plus 2.S%.
The principal amount and interest are payable at once on the due date of each loan.
The short-term borrowings were obtained from Shinhan Vina Bank - Hanoi Branch under credit
contract No. 239-87-0080 dated 24 July 2008 (amended and supplemented by appendix No.
GR239080701/02 dated 11 August 2010). Accordingly, the loans can be drawn up to a maximum
amount of USD 9,000,000. Each promissory note falls due within 6 months. The loans in USD bear
an interest that is payable on the 29th day of each month at the annual rate on-month LlBOR plus 3%
(but not less than 4.2% per annum). The Company uses its machinery and equipment with the total
carrying value ofVND 64,782,6S8,677 as collateral for the loans.
14

II. SHORT-TERM BORROWINGS AND LIABILITIES (Continued)
The short-term borrowings were obtained from Asia Commercial Joint Stock Bank - Haiphong
Transaction Office under credit contract No. SHP.DN. 0421061O/HMCT dated 21 May 2010.
Accordingly, the loans can be drawn up to a maximum amount of USD 33,000,000 and expire on 20
May 2011. Each promissory note falls due within 6 months. The loans in USD bear an interest at the
annual rate of6-month SIBOR plus 3.4% (but not less than the Bank's 12-month USD saving interest
rate adjusted for compulsory reserve with interest paid in arrears plus 2% per annum). These loans
are secured by the Company's average balance in accounts receivable.
The short-term borrowings were obtained from Kexim Vietnam Leasing Company under loan
agreement No. W3010012 dated 15 March 2010 for the period of 12 months from the first
disbursement date. Accordingly, the loans can be drawn up to a maximum amount ofUSD 1,500,000.
Each promissory note falls due within 6 months. The loans in USD bear an interest at the annual rate
of 3-month LIBOR plus 3.6%. These loans are secured under trust. The interest is payable on the 15th
day quarterly.
12. TAXES AND AMOUNTS PAYABLE TO THE STATE BUDGET
31/12/2010 31/12/2009
--
VND VND
.=:::::::
Value added tax 2,544,204,259 2500
12,173,479,577
Import/export duties 4,459,527,021 1,628,694,754 .IG T
Corporate income tax 3,598,023,072 4,373,880,0 I0
Personal income tax I~MHU
121,604,866 334,285,856
Others 843,588,080 .DlrT
13. SHAREHOLDERS' EQUITY

II,566,947,298 18,510,340,197
.--
;' NA
. i~
---:::;
Movement in shareholders' equity

Unit: VND
Investment and Financial
Chartered capital development fund reserve fund Retained earnings
Balance as at 01/01/2009 173,366,897,572 3,710,095,967 6,476,483,648 148,281,182,313
Profit for the year
81,029,751,649
Dividends declared
(17,336,689,774)
Balance as at 01/01/2010 173,366,897,572 3,710,095,967 6,476,483,648 211,974,244,188
Profit for the year
2,756,174,350
Dividends declared
(17,336,689,745)
Bonus and welfare fund
distribution (1,000,000,000)
Balance as at 31/12/2010 173,366,897,572 3,710,095,967 6,476,483,648 196,393,728,793
15

13. SHAREHOLDERS' EQUITY (Continued)
Chartered capital and investment capital
Under the Company's Investment Certificate, the investment capital and chartered capital of the Company
are USD 54,180,000 and USD 13,272,857, respectively. The chartered capital contributions had been
fully made by the shareholders as at 31 December 20 I0 as follows:
Per Inyestment Contributed capital as at

Certificate 31/12/2010 31/1212009
USD~ VND USD Vl\'D USD
LS Cable Ltd. 10,714,424 81% 138,843,313,672 10,714,424 138,843,313,672 10,714,424
LS Cable Vietnam Co., Ltd.
545,200 4% 6,214,883,200 545,200 6,214,883,200 545,200
(*)
Haiphong People's
2,013,233 15% 28,308,700,700 2,013,233 28,308,700,700 2,013,233
Committee (**)
13,272,857 100% 173,366,897,572 13,272,857 173,366,897,572 13,272,857
(*) LG International Corp., the foreign party, transferred its contributed capital in the Company to LS
Cable Vietnam Co., Ltd. under capital transfer contract dated 10 April 2008.
(**) Formerly, Vietnamese party was Electricity and Water Machine Assembly Company, a state-owned
enterprise. When this company started operating under the model of a joint stock company, capital
contributed by this company in the Company was transferred to Haiphong People's Committee.
14. FINANCIAL INCOME
2010 2009
VND VND
Interest income 2,343,026,239 1,246,309,217
Foreign exchange gain 84,569,767,067 47,682,802,686
86,912,793,306 48,929,111,903
15. FINANCIAL EXPENSES
2010 2009
VND VND
Interest expense 48,779,846,365 40,025, I 18,495

Foreign exchange loss 124,265,158,238 86,491,241,340
173,045,004,603 126,516,359,835
16

16. SELLING EXPENSES
2010 2009
VND VND
Salary, bonus and related expenses 5,614,670,025 4,547,887,396
Transportation expenses 39,841,988,924 25,626,174,151
Sales commission 20,642,914,060 17,157,317,557
Other expenses 9,348,302,046 10,984,548,382
75,447,875,055 58,315,927,486
17. GENERAL AND ADMINISTRATION EXPENSES
2010 2009
VND VND
Salary, bonus and related expenses 7,181,595,264 6,013,157,802
Depreciation and amortisation expenses 4,517,651,335 3,895,684,267
Bank fees 6,348,752,101 5,000,322,543
Provision for doubtful debt 8,008,087,258 7,768,791,773
Other expenses 14,527,549.661 11,204,735,036
40,583,635,619 33,882,691,421
18. CORPORA TE INCOME TAX
2010 2009
VND VND
Corporate income tax for the year
Profit before tax 7,332,107,115 115,826,023,146 ~
Adjustments for taxable income
Less: non-assessable income (575,668,030)
Add back: non-deductible expenses 13,173,214,422 13,817,369,814
Assessable income 20,505,321,537 129,067,724,930
Tax rate 25% 25%
Corporate income tax 5,126,330,384 32,266,931,232
Deferred tax (see Note 10) (550,397,619) 2,529,340,265
Net profit after tax 2,756,174,350 81,029,751,649
17
Haiphong City, S.R. Vietnam For the year ended 31 December 20J 0

These notes are an integral part of alld should be read ill conjunction with the accompanying financial statements
19. OPERATING LEASE COMMITMENTS
2010 2009
VND VND
Minimum lease payments under operating leases

647,976,000 598,500,000
recognised in the income statement for the year
At the balance sheet date, the Company had outstanding commitments under non-cancellable operating
leases, which fall due as follows:
31/12/2010 31/12/2009
VND VND
Within one year 636, J J5,200 602,817,600
In the second to fifth year inclusive 2,544,460,800 2,41 J,270,400
After five years 15,266,764,800 15,070,440,000
Formerly, the total land area used as capital contribution by the Vietnamese party was 50,485.25 m2. After
discussion, the parties agreed to decrease the above area by 20,000 m2 and transfer this area to lease land.
Up to now, the total land area of the Company is 50,485.25 m2 of which 30,485.25 m2 is used as capital
contribution by the Vietnamese party and 20,000 m2 is lease land.
Minimum lease payments represent total rentals payable by the Company for renting the above 20,000 m2
land located at So Dau Ward, Hong Bang District, Haiphong City is at the annual rental charge of
USD 1.68 1m2.
.:)
J
18

20. RELA TED PARTY TRANSACTIONS AND BALANCES
During the year, the Company entered into the following transactions withits related parties:
2010 2009
VND VND
Dividends paid
- LS Cable Ltd. 13,995,863,311 13,995,863,340
- LS Cable Vietnam Co., Ltd. 711,761, I06 711,761,106
. Haiphong People's Committee 2,629,065,328 2,629,065,328
Purchases from
- LS Cable Ltd. 42,563,453,838 25,297,135,730
• LG Global Corp. 3,812,386,475,673 1,983,680,092,352
- LS Cable Vietnam Co., Ltd. 509,2 J 7,961,485 342,1 37,462,218
- LG International Corp. 38,635,399,498
Sales to
- LS Cable Ltd. 460,711,055,993 114,409,298,831
. LS Cable Ltd. (Singapore Branch) 250,382,112,109 96,542,925,00 I
- LG International Corp. 61,533,192,549
- LS Cable Vietnam Co., Ltd. 539,950,342,779 407,618,520,123 ~
. LS- Vina Industry System Co., Ltd. 6,086,891,790 3,216,625,940
~
HUUH~!
Related party balances as at the balance sheet date were as follows:
rre
31/12/2010 31/1212009 l~~
Receivables from
VND VND
-J/
• LS Cable Ltd. 14,268,279,003 41,047,315,984
- LS Cable Ltd. (Singapore Branch) 29,468,254,358 76,090,278,283
- LS Cable Vietnam Co., Ltd. 90,148,301,616 90,632,682,188
• LS- Vina Industry System Co., Ltd. 120,529,697 3,123,206,465
Payables to
. LS Cable Ltd. 33,759,494,691 5,198,0 II ,303
. LS Global Inc. 695,040,006,658 185,890,383,031
Advances to
- LS Cable Ltd. 141,678,947 177,173,834
Board of Directors' remuneration
Remuneration paid to the Company's Board of Directors during the year was as follows:
2010 2009
VND VND
Salary, bonus and benefits in kind 9,592,074,834 10,7'17,724,680
19

21. COMPARATIVE FIGURES
Certain reclassifications have been made to the prior year's figures to enhance comparability with the
current year's presentation.
/#/-
Sung Kyun Yoon Dinh Kim Cuong
Chief Accountant Preparer
***
;~
20

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LS- VINA CABLE JOINT STOCK COMPANY

(Incorporated in the Socialist Republic of Vietnam)

STATEMENT OF THE BOARD OF DIRECTORS 1-2

BALANCE SHEET 4-5

CASH FLOW STATEMENT 7

NOTES TO THE FINANCIAL STATEMENTS 8 - 20

STATEMENT OF THE BOARD OF DIRECTORS

THE BOARDS OF MANAGEMENT AND DIRECTORS

Mr. Seung Chan Lee Chairman

Mr. Seung Chan Lee General Director

BOARD OF DIRECTORS' STATEMENT OF RESPONSIBILITY

• Select suitable accounting policies and then apply them consistently;

STATEMENT OF THE BOARD OF DIRECTORS (Continued)

For and on behalf of the Board of Directors,

34 Lang Ha Street, Dang Da District

No.: 2-.~A /Deloitte-A UDHN-RE

Ta: The Boards of Management and Directors

Respective Responsibilities of the Board of Directors and Auditors

Nguyen Tuan Anh

ASSETS Codes Notes 31/1212010 31/12/2009

TOTAL ASSETS (270=100+200) 270 2,400,467,426,816 1,689,556,718,358

BALANCE SHEET (Continued)

TOTAL RESOURCES (440=300+400) 440 2,400,467,426,816 1,689,556,718,358

OFF BALANCE SHEET ITEMS

Unit 31/12/2010 31/12/2009

ITEMS Codes Notes 2010 2009

1. Gross sales 01 4,687,137,180,538 3,258,559,805,324

4. Cost of sales 11 4,474,542,217,609 2,972,861,630,965

6. Financial income 21 14 86,912,793,306 48,929, III,903

10. Operating profit

\2. Other expenses 32 ~

\5. Current income tax expense 51 \8 5,\26,330,384 32,266,93\ ,232

Sung Kyun Yoon Dinh Kim Cuong

CASH FLOW STATEMENT

Codes 2010 2009

Supplemental non-cash disclosures

Sung Kyun Yoon

NOTES TO THE FINANCIAL STATEMENTS FORM B 09-DN

The shareholders of the Company are as follows:

Vietnamese party: Haiphong People's Committee

Foreign party: LG Cable Ltd. (currently known as LS Cable Ltd.)

Operating industry and principal activities

2. ACCOUNTING CONVENTION AND ACCOUNTING PERIOD

The Company's financial year begins on 0 I January and ends on 31 December.

3. NEW ACCOUNTING GUIDANCE IN ISSUE NOT YET ADOPTED

NOTES TO THE FINANCIAL STATEMENTS (Continued) FORM B 09-DN

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash and cash equivalents

Receivables and provision for doubtful debts

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation.

Intangible fixed assets and amortisation

NOTES TO THE FINANCIAL STATEMENTS (Continued) FORM B 09-DN

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

5. CASH AND CASH EQUIVELENTS

NOTES TO THE FINANCIAL STATEMENTS (Continued) FORM B 09-DN

7. TANGIBLE FIXED ASSETS

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