KINGDOM OF CAMBODIA NATION RELIGION KING

Unofficial translation Ministry of Economy and Finance No. 643 MEF/BK

PRAKAS ON OBLIGATION OF SUBMISSION OF FINANCIAL STATEMENTS FOR AUDIT ******** Senior Minister and Minister Ministry of Economy and Finance Having seen: the Constitution of the Kingdom of Cambodia; Royal Degree No. NS/RTK/0704/124 dated 15 July 2004 on the appointment of the Royal Government of Cambodia; the Royal Degree No. 02/NS/94 dated 20 July 1994 promulgating Law on Organization and functions of the Council of Ministers; Royal Degree No. NS/RKM/0196/18 dated 24 January 1996 promulgating Law on Establishment of the Ministry of Economy and Finance; Sub-degree No. 04/ANKr/BK dated 20 January 2000 on the Composition and Functions of Ministry of Economy and Finance; Royal Kram No. NS/RKM/0702/011 dated 08 July 2002 promulgating Law on Corporate Accounts, Their Audit and Accounting Profession; the Anukret No. 78 ANKr/BK dated 18 November 2004 and Sub-degree No. 20/ANKr/BK dated 29 March 2008 on the addition and rectification of a number of departments of the Ministry of Economy and Finance; Sub-degree No. 08/ANKr/BK dated 30 March 2003 on the Composition and Functions of the National Accounting Council; Sub-degree No. 18/ANKr/BK dated 19 March 2003 on the Composition and Functions of Khmer Institute of Certified Public Accountants and Auditors; the Minutes of Meeting dated 18 July 2006 of Board of Directors of the Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA); the Minutes of Meeting dated 06 June 2007 the Board of the National Accounting Council. 1

HEREBY DECIDES Article 1 In accordance with the article 16 of the Law on Corporate Accounts, Their Audits, and Accounting Profession, all enterprises, natural persons and legal entities with Khmer or foreign nationality, domiciled in the Kingdom of Cambodia that meet two of the following criteria have an obligation to submit for audit by independent auditors registered in the statutory auditor list of the Kampuchea Institute of Certified Public Accountants and Auditors their annual financial statements: Criteria 1: having annual turnover of 3,000,000,000 Riels (three billion Riels) and above, Criteria 2: having total assets of 2,000,000,000 Riels (two billion Riels) and above, based on the average values of assets held during the year subject to audit, Criteria 3: having employees of and over 100 persons (one hundred) and above, based on the average number of employees employed during the year subject to audit.

Article 2 Qualified investment projects registered by the Council for the Development of Cambodia in accordance with the Law on Investment have an obligation to submit to independent auditors registered in the statutory auditor list of the KICPAA their annual financial statements.

Article 3 Enterprises covered by Article 1 and 2 of this Prakas must prepare their financial statements in accordance with Cambodian Accounting Standards (CASs). The enterprises must continue to prepare financial statements in accordance with Cambodian Accounting Standards and be subject to independent audit in the following years after first time audit even though the enterprises do not meet the criteria stipulated in Article 1. Article 4 Financial Statements in this Prakas includes the Balance Sheet, the Income Statement, the Cash Flow Statement and explanatory notes as specified in Article 8 of the Law on Corporate Accounts, their audit and the Accounting Profession. Article 5 Enterprises may apply to the Ministry of Economy and Finance for exemption from the requirement to: 2

Prepare financial statements in accordance with Cambodian Accounting Standards (CASs); and Be subject to audit by the independent auditors.

If the enterprise has had no commercial activity for a period of greater than 12 months subject to the previous year of audit.

Article 6 All audits will be carried out for the year ended 31 December, or period ending other than 31 December with an approval of the Ministry of Economy and Finance, with the first year of audit to be the year December 2007 or the first year after 31 December 2007 if the financial year end differs from 31 December. The audit must be completed within 6 months of the year following the year subject to audit.

Article 7 The financial statements must be audited by auditors registered in statutory auditor list maintained by the Kampuchea Institute of Certified Public Accountants and Auditors.

Article 8 General Secretariat, Cabinets, Tax Department, all relevant departments and organizations under auspices of the Ministry of Economy and Finance, companies, state-owned enterprises, private entities, institution and relevant physical persons shall effectively implemented the Prakas from the date of this signature. In Phnom Penh, Date: 26 July 2007 Senior Minister Ministry of Economy and Finance

Keat Chhon
Recipients cc: Ministry of Royal Palace General Secretariat of Senate General Secretariat of National Assembly National Audit Authority Cabinet of the Prime Minister For information As in Article 8 for Implementation Documents-Achieve