Legal capital presentation for issuing shares as 2007 first dividend payment

Tan Tao Investment-Industry Corp
Socialist Republic of Vietnam
Independence - Freedom - Happiness
www.itaexpress.com.vn/tantaocity.com
Legal capital presentation for issuing shares as 2007 first dividend payment
Shares: Tan Tao Investment - Industry Corporation
To: The State Securities Commission
Tan Tao Investment - Industry Corporation (ITACO) would like to express our high appreciation to the Commission for its concern and support during the phase of stock listing and capital increase shares’ issuance. Related to the documents of issuing stock dividend shares, first payment of year 2007, we would like to submit the explanative presentation of legal capital used as follows:
I. Legal basis
- Securities Law approved by the National Assembly of Socialist Republic of Vietnam- Session XI at the 9th session on June 19th 2006.
- The Government application decree 14/2007/ND-CP dated January 18th 2007 on the implementation of the Securities Law.
- The 2007 first semester financial statement of Tan Tao Investment - IndustryCorp audited by A&C JCS.
- Tan Tao Investment – Industry Corp‘s the Shareholder General Meeting resolution N0 01/NQDH-07 on June 30th , 2007 of issuing shares as year 2007 dividend payment.
- Tan Tao Investment - IndustryCorp‘s the Shareholder General Meeting resolution N0 03-07/NQ-DHCD on November 21st , 2007 of issuing shares as year 2007 dividend payment.
II. Detailed presentation of legal capital used to issue stock dividend shares as year 2007 first stock dividend payment.
1. The procedure of issuing shares as year 2007’s first stock dividend payment
- Issuing volume: 15.000.000 (fifteen million) shares – equal to VND 150.000.000.000 (one hundred fifty billion)
- Principle: Issuing shares as first stock dividend payment of year 2006 at a rate of 15% from the first semester of 2007 exercise’s after tax profit. It means that each shareholder detaining 30 previous shares will receive 2 new additional shares
- Dividend payment source: from the first semester of 2007detained profit
2. Presentation of the capital used to issue stock dividend shares as year 2007 first stock dividend payment.
According to the ITACO Financial Statement of the first semester of 2007 audited by the auditing and consultancy A&C JSC, ended June 30th, 2007, the distribution of after tax profit is as follows:
Retained profit by December 31st, 2006: VND. 120.902.137.364
Profit distribution in 2006: VND 100.000.000.000
After tax profit in the first semester of 2007: VND 148.030.223.816
Retained profit by June 30th, 2007: VND 174.790.547.093
The Shareholder General Meeting resolution No 03-07/NQ-DHCD on November 21st, 2007 approved the drawing of VND 300,000,000,000 (three hundred billion) from this retained profit in issuing 30,000,000 (thirty million) shares as 2007 dividend payment to current shareholders
The Shareholder General Meeting resolution in November 2007 approved the drawing of VND 150,000,000,000 (one hundred fifty billion) from retained profit of the first semester of 2007 to issue 15,000,000 shares (fifteen million shares) as 2007 first dividend payment to current shareholders as approved by Shareholder General Meeting.
The procedure of stock dividend distribution via additional shares: Additional shares are distributed for shareholders at a ratio of 100:15, it means that a current shareholder holding 1 share in the key shareholder list will have 1 right offering to stock dividend share, every one hundred right offering will receive fifteen additional share.
The above information represents the explanation related to the legal capital used to issue bonus shares. We are looking forward to the approval of the Commission