Cathay Life Insurance Ltd. (Vietnam) 30 May ACCOUNTING & FINANCE CONTENTS THIS MONTH: :  ACCOUNTING: I. Budget management II. Operating highlight  FINANCE: I. Operating new bank account II. Guideline- Money laundering laundering NEXT MONTH: :  ACCOUNTING: I. Budget update II. Chang company address III.PIT for TW IV. Reimbursement exp.HN  FINANCE: I. Banking II. Cash management

Cathay Life Insurance Ltd. (Vietnam) 30 May IBUDGET MANAGEMENT 1.Budget planning & approval:  Budget planning: Each Department prepares the Department Budget planning based on: Estimated expenditure for the whole year The target for planning year compare with those in previous year The actual figures previous year ENGAGED PROJECT THIS MONTHAccounting

Cathay Life Insurance Ltd. (Vietnam) 30 May IBUDGET MANAGEMENT: 1.Budget planning & approval:  Budget review & approval: Department Budget planning is sent to Budget Controller for combination Department Budget will be reviewed by the Budget Controller through the meeting with related department Budget planning is final approved by BOD/BOM/ Parent Company through the meeting of BOD/BOM Budget Planning after approved will resent to related department & Budget Controller for applying & controlling ENGAGED PROJECT THIS MONTHAccounting

Cathay Life Insurance Ltd. (Vietnam) 30 May IBUDGET MANAGEMENT : 2.Procedure for using the Budget Using Approval Report (prepared in English) when applying for using Budget->formform The Department Budget Checker should fill in & sign on the Approval report before submit to higher level for approval the budget information as follows: oBudget account (name and code of an expense item) oBudget (an Budget amount of an expense) oPercentage of Budget used (% rate) oEstimated expenses (expenses for current time) ENGAGED PROJECT THIS MONTHAccounting

Cathay Life Insurance Ltd. (Vietnam) 30 May IBUDGET MANAGEMENT: 2.Procedure for using the budget Expenses which are not used Approval Report (regular expense and under VND10 mil.) also need to be updated to Budget using -> formform Approval Report are approved as follows: TitlesIn budget (VND)Exceed budget (VND) Division Director< 100,000,000< 50,000,000 Vice G. Director100,000,000~250,000,00050,000,000~250,000,000 General Director250,000,000~500,000,000 Vice Chairman500,000,000~1,000,000,000 Chairman1,000,000,000~1,500,000,000 Parent Company> 1,500,000,000 ENGAGED PROJECT THIS MONTHAccounting

Cathay Life Insurance Ltd. (Vietnam) 30 May IBUDGET MANAGEMENT: 3.Job performance of Department Budget Checker Each department assign a Department Budget Checker to: Follow up the department budget Make sure all expense for Payment are in budget Control & update the actual expense of Department-> attached form-Department Budget attached form-Department Budget Notice to Department Director the Budget situation and advice him/her to control the expenditure ENGAGED PROJECT THIS MONTHAccounting

Cathay Life Insurance Ltd. (Vietnam) 30 May I BUDGET MANAGEMENT: 3. Job performance of Department of Budget Checker (continuous): Notice to Department Director to ask for Adding Budget if exceeding or out of Budget Contact with Budget controller issue related to budget Sent to Budget controller the report of actual expenses as mention above-> attached form attached form ENGAGED PROJECT THIS MONTHAccounting

Cathay Life Insurance Ltd. (Vietnam) 30 May IBUDGET MANAGEMENT: 4. Job performance of Budget Controller: Create the Budget account for each kind of expense Collect Department Budget & consolidate for the Total Company Budget Collect the actual figures in previous year & compared with Budget planning this year Open the meeting with attendance of related department for review the budget Check Approval report related to Budget (Budget account, Budget amount, Percentage of Budget used) ENGAGED PROJECT THIS MONTHAccounting

Cathay Life Insurance Ltd. (Vietnam) 30 May IBUDGET MANAGEMENT: 4. Job performance of Budget controller (cont.): Contact with Department Budget Checker and notice to them if Budget is exceeded Control & update the actual expenses of related department compare with the monthly Actual Report they sent Sent Budget Comparison Report to Management Director monthly->formform ENGAGED PROJECT THIS MONTHAccounting

Cathay Life Insurance Ltd. (Vietnam) 30 May II. HIGHTLIGHT-OPERATING RESULT: ENGAGED PROJECT THIS MONTH Items Amount Notes VND AmountEquiv.USD Amount 1. Total Assets 1,056,371,317,700 64,041,910.74At Jul.31, Profit before CIT 33,039,717,839 2,003, Premium income 420,099,000 25,468As of Jul.31, 08 Selling expenses 1,660,510, ,667As of Jul.31, 08 G&A expenses 3,615,097, ,163As of Jul.31, 08 Income from financial act. 49,081,076,070 2,975,512As of Jul.31, 08 Expenses from financial act. 11,177,131, ,607As of Jul.31, 08 Other expenses 8,717, As of Jul.31, 08Accounting

Cathay Life Insurance Ltd. (Vietnam) 30 May I.Open new bank account with IVB for Hanoi Office and company bank account with Citibank II.Prepare and get approval report of guideline “ Reporting the Prevention and Combat of money laundering” III. Compose “Expense Estimated forms” which is used for monthly estimating expense of every division (waiting for approval of BOD) IV.Making instruction of bank transaction ENGAGED PROJECT THIS MONTHFinance

Cathay Life Insurance Ltd. (Vietnam) 30 May I.BUDGET: Update & Management Company Budget II.COMPANY ADDRESS CHANGE: Register with HCMC Tax Department III.PIT for TW: Register with HCMC Tax Department for issuing the Individual Tax Code IV.REIMBURSEMENT EXPENSES AT HANOI OFICE: send the guideline & instruct them how to use the Petty cash fund & Operation fund ENGAGED PROJECT NEXT MONTHAccounting

Cathay Life Insurance Ltd. (Vietnam) 30 May I.BANKING: Work with IVB about special payment form for insurance payment - “payment order” form II.CASH MANAGEMENT: Guideline of cash management at Hanoi office ENGAGED PROJECT NEXT MONTHFinance

Cathay Life Insurance Ltd. (Vietnam) 30 May Thank you Accounting & Finance