TPC: Explanation for no provision deduction

Tan Dai Hung Plastic Joint Stock Company has explained no deduction for provisions of securities investment devaluation, bad debt and provision reverse of inventory devaluation in the TDH Co., Ltd. as follows:

1. The BOD of the company was unanimous to deduct and reverse provisions on 31st December and not to deduct for provisions of securities investment devaluation as VND2.073 billion (Stock prices have being changed) and bad debt as VND1.663 billion (No sign of risks). However, if the company deducted for the provision worth VND3.7 billion, its after-tax profit in the first 6 months 2010 would be VND16.5 billion, accounting for 72% of the whole year.

2. There was not necessary to reverse provision of inventory devaluation cost VND1.068 billion in the TDH Co., Ltd. (Subsidiary). In case of provision reverse, the company had to set up an appraisal and evaluation board. However, due to nature of the subsidiary, it could not suspend production for evaluation. Therefore, appraising and evaluating goods quality will be done at the time of 31st December with participation of an audit firm.

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>   PPG: Result of transactions of Directors, PDMR (Mr. Hoa) (30/08/2010)

>   PSI: Notice of transaction of connected institution (30/08/2010)

>   PVC: Notice of transaction of Directors, PDMR (Mr. Vinh) (30/08/2010)

>   DAD: Result of transactions of Directors, PDMR (Mr. Dung) (30/08/2010)

>   TRI: Explanation for business result in quarter 2/2010 (30/08/2010)

>   DAD: Notice of transaction of Directors, PDMR (Mr. Dung) (30/08/2010)

>   TLH: Receiving a share offer license (30/08/2010)

>   VND: Result of transaction of connected person (Mr. Thang) (30/08/2010)

>   NBB: Explanation for audited profit of the parent company in 06 months 2010 (30/08/2010)

>   SJC: Board Resolution (30/08/2010)