1. 1 MONTHLY REPORT FEBRUARY, 2009 Accounting, Finance and Investment

2. 2 Outline I. This month activities and Achievements - -Monthly tax report - -Income statement and commentary - -PIT tax withholding -Cash management of insurance payment and premium collection II. Update Information - -Personal Income Tax of Agency - -Delay payment of PIT - -News III. Next month project - -Fund splitting Submit to MOF FS 2008 - -Tax finalization - -Annual report - -Keep going on of cash management

3. 3 THIS MONTH ACTIVITIES and ACHIEVEMENTS 1. 1.Monthly tax report : VAT, PIT 2. 2.Summary income statement and commentary.

4. 4 THIS MONTH ACTIVITIES and ACHIEVEMENTS Actual Budget% Actual & Budget Items Jan 2009Monthly Variance Premiums 2,744 2,565 45,7867% 2,744 2,565 45,7867% Gross Investment Income 11,805 11,033 127,5367% Foreign Exchange G/L (4) - - Total Income 14,544 13,598 173,3237% - - - Benefit payment - 62 1,440-100% Policy related expense 1 19 233-92% Increase in Policyholder Liabilities - - 28,447 Commissions 45988613,219-48% Sale expensne 2,4593,41742,732-28% Administration expense 6,3267,931100,349-20% Investment Expenses 39.43 57 682-31% Income Taxes 1,315 - - Total Expense 10,599 12,371 187,103-14% Profit 3,945 1,227 (13,780)221%

5. 5 THIS MONTH ACTIVITIES and ACHIEVEMENTS.

6. 6 3. PIT Tax withhold Following circular 27/2009/TT-BTC and document 1823/BTC- TCT date 18 Feb 09. FA Dept got approval of BOD refund PIT for both employee and agent as regulation 4.Cash management of insurance payment and premium collection *Cooperate with IVB and Sacombank *Network LocationSacombankIVBTotal Ho Chi Minh66571 Ha Noi24428 Da Nang718 Can Tho516

7. 7 THIS MONTH ACTIVITIES and ACHIEVEMENTS 1) 1)Payment : 1.1) Cash at CS’s counter - The amount is less than 20VND mil - Customers have to come to Cathay at CS counter 1.2) ID Cards (IVB and Sacombank only) - Cash at IVB and Sacombank counter only - Customer get money by submitting ID card 1.3) Customer’s bank account - Customers must have a bank account - At any bank

8. 8 THIS MONTH ACTIVITIES Collection 2.1) Cash at counter (Customer service, IVB or Sacombank) 2.2) Auto Debit ( IVB, Sacombank) - Customers have bank account at IVB or Sacombank only Collection processing :

9. 9 Premium collection Service (2) Data transmission (3A) Cash/ FT (3B) Query data information (4) Transfer money (1A) Insurance Contract (5) Reconciliation

10. 10 News I. I.Personal Income Tax of Agency (Circular 10/2008/TT-BTC issue date 21 Jan 09 1)Taxable income: Income from agent activity as: commission,incentive, allowance and other income 2) Tax rate IncomeTax rate <= 4.000.0000% >4.000.000 and <=15.000.0005% > 15.000.00010%

11. 11 NEWS 3) Others - -To apply this circular the agent must have tax code no matter registration by themselves or company (20% for without tax code) - -No any independence deduction - -Individual tax finalize will be done by agents II. Delay payment of PIT (Circular 27/2009/TT-BTC and document 1823/BTC-TCT date 18 Feb 09) Period from Jan to May 2009 1) Tax payer applicable - -** Residence : - -Income from Business, Salary, Wage, Capital investment, Capital transfer (including stock) …

12. 12 NEWS ** Non Residence: - -Income from Capital investment (including tax), copyright and transfer of copyright 2) The tax payer has right to keep tax from income above 3) Responsibilities Company: - Have to calculate the PIT every month and keep tax report as usual - - Income and PIT have to be paid and informed to beneficiary together, - - Get beneficiary’s signature when making payment Beneficiary : - - Sign when getting money

13. 13 NEWS 4) After May 2009,the new instruction of PIT paid from Jan to May will be issued by government III. Financial Market 1.The World Economic still has no positive signal - Economic crisis cause insecure + Demonstrate in France, England, Greece, Spain + Ireland, Belgium government collapsed + China 8.86 mil unemployed in 2008 2. Vietnam + 50,000 unemployed in 2008, a number of 200,000 is predicted in 2009 + FDI in Jan 2009 is USD185 mil,11% compare to 2008

14. 14 NEWS + Stock market : VN index drop more than 74% (921,07 ~ 235.5) compare to beginning 2008, some brokerage firm bankrupted (Thai Son Com., Asia Com.,) + Real estate : The Price reduced since 1 st quarter 2008 by 20-50% ;The reducing continued in Q3,Q4, 60-70% decrease of some project 3. Some issues by Vietnamese government to rescue economic + Circular 30/2009/TT-BTC (dated 13 Jan 09) reduce 30% CIT from Q.4,2008 and year 2009 and delay payment 9 months in 2009 for small and medium enterprises + Circular 12/2009/TT-BTC (dated 22 Jan 09) delay CIT payment 9 months with some industries : produce construction material, construction, tourist,…

15. 15 NEWS +Circular 13/2009/TT- BTC (dated 21 Jan 09) :50% VAT deduction from Feb to Dec 2009 with industries : Cars, boat, ship, Data processing machine (including computer), transportation, printing, Hotel, tourist,…. + Decision No. 131/QD-TTg (dated 23 Jan 09) :4% On giving interest rate support, main points:  to organizations, individuals that borrow capital from banks to carry out production and business  short term VND loans, credit contracts entered into and disbursed in 2009, interest rate support shall be 08 months

16. 16 NEWS  Borrowers exception (13 items): Finance activity, Education and Training, Health care and social relief activity, Securities Investment and Trading, Real estate trading in form of purchase, selling of land use right…..

17. 17 PROJECT NEXT MONTH  Fund splitting Submit to MOF FS 2008  Tax finalization  Annual report  Keep going on of cash management

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