cathay life insurance ltd. (vietnam) 30 may 20081 accounting & finance contents this month: : ...

30 May 2008 2

Cathay Life Insurance Ltd. (Vietnam)

I BUDGET 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 MONTHAccountingAccounting

30 May 2008 3


I BUDGET 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


30 May 2008 4


I BUDGET MANAGEMENT :

2. Procedure for using the Budget

Using Approval Report (prepared in English) when applying for using Budget->form

The Department Budget Checker should fill in & sign on the Approval report before submit to higher level for approval the budget information as follows:

o Budget account (name and code of an expense item)o Budget (an Budget amount of an expense)o Percentage of Budget used (% rate)o Estimated expenses (expenses for current time)

Approval report form


30 May 2008 5



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 -> form

Approval Report are approved as follows:

Titles In budget (VND) Exceed budget (VND)

Division Director < 100,000,000 < 50,000,000

Vice G. Director 100,000,000~250,000,000 50,000,000~250,000,000

General Director 250,000,000~500,000,000 250,000,000~500,000,000

Vice Chairman 500,000,000~1,000,000,000 500,000,000~1,000,000,000

Chairman 1,000,000,000~1,500,000,000 1,000,000,000~1,500,000,000

Parent Company > 1,500,000,000 > 1,500,000,000

Application for payment


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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 Notice to Department Director the Budget situation

and advice him/her to control the expenditure


30 May 2008 7



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

Department budget


30 May 2008 8



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)


30 May 2008 9



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->form

Actual & Budget comparison


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II. HIGHTLIGHT-OPERATING RESULT:

ENGAGED PROJECT THIS MONTH

ItemsAmount

Notes

VND Amount Equiv.USD Amount

1. Total Assets 1,056,371,317,700 64,041,910.74 At Jul.31, 08

2. Profit before CIT 33,039,717,839 2,003,014.12

Premium income 420,099,000 25,468 As of Jul.31, 08

Selling expenses 1,660,510,406 100,667 As of Jul.31, 08

G&A expenses 3,615,097,271 219,163 As of Jul.31, 08

Income from financial act. 49,081,076,070 2,975,512 As of Jul.31, 08

Expenses from financial act. 11,177,131,914 677,607 As of Jul.31, 08

Other expenses 8,717,640 529 As of Jul.31, 08

AccountingAccounting

30 May 2008 11


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 MONTH

Anti money laundering

anti money laundering report

Expense estimation

Banking transactions

FinanceFinance

30 May 2008 12


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 MONTH

AccountingAccounting

30 May 2008 13


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 MONTH

FinanceFinance

30 May 2008 14


Thank youAccounting Accounting & Finance& Finance

cathay life insurance ltd. (vietnam) 30 may 20081 accounting & finance contents this month: : ...

Documents

budget expenses

budget update

budget information

budget situation

budget contact

combination department

budget planning approval

budget review approval