Decision No. 1683/QD-BTC Issuing the Interim Financial Management Regulations of the Company for Purchasing and Selling Debts and Surplus Assets of Enterprises

DECISION OF THE MINISTER OF FINANCE

Issuing the Interim Financial Management Regulations for the Company purchasing and selling debts and remaining assets of enterprises

and the surplus assets of the enterprise

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THE MINISTER OF FINANCE

  - Based on the State Enterprise Law dated November 26, 2003;

  - Based on Decree No. 86/2002/ND-CP dated November 5, 2002 of the Government stipulating the functions, tasks, powers, and organizational structure of ministries and ministerial-level agencies;

  - Based on Decree No. 77/2003/ND-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

  - Based on Decree No. 69/2002/ND-CP dated July 12, 2002 of the Government on management and resolution of overdue debts of state-owned enterprises;

  - Based on Decision No. 109/2003/QD-TTg dated June 5, 2003 of the Prime Minister on the establishment of the Company purchasing and selling debts and remaining assets of enterprises;

  - Based on Circular No. 39/2004/TT-BTC dated May 11, 2004 of the Ministry of Finance guiding procedures, formalities, and financial handling for activities of purchasing, selling, transferring, receiving, and resolving debts and remaining assets of enterprises

  In accordance with the proposal of the Director of the Department of Banking and Financial Organization Finance.

Pursuant to …;

  Article 1. Issued together with this Decision are the "Interim Financial Management Regulations for the Company purchasing and selling debts and remaining assets of enterprises".

  Article 2. This Decision takes effect from the date of signing. Based on the Interim Financial Management Regulations, the Company is responsible for organizing and implementing financial management in the activities of purchasing and selling debts and remaining assets, ensuring strictness, effectiveness, and compliance with legal provisions. In the process of organizing and implementing financial management, if there are difficulties or obstacles, the Company must promptly report to the Ministry of Finance for consideration and resolution.

  Article 3. The Chairman of the Board of Directors, General Director of the Company purchasing and selling debts and remaining assets of enterprises, Director of the Department of Banking and Financial Organization Finance, Head of the Ministry of Finance's Office, relevant organizations and individuals are responsible for implementing this Decision.

REGULATIONS

INTERIM FINANCIAL MANAGEMENT REGULATIONS FOR THE COMPANY PURCHASING AND SELLING DEBTS AND REMAINING ASSETS OF ENTERPRISES

(Issued together with Decision No. 1683/QD-BTC dated June 2, 2004)

These regulations apply to the Company purchasing and selling debts and remaining assets of enterprises established according to Decision No. 109/2003/QD-TTg dated June 5, 2003 of the Prime Minister.
of the Minister of Finance)

PART I
GENERAL PROVISIONS

Article 1. The Company purchasing and selling debts and remaining assets of enterprises (hereinafter referred to as the Company) is an independent accounting state enterprise, implementing a self-financing regime, ensuring effective business principles, preserving and developing state capital at enterprises. The Company has its own seal and is allowed to open accounts at the State Treasury and commercial banks operating in Vietnam.

Article 2When performing the task of purchasing, selling, resolving debts, and remaining assets of state-owned enterprises as designated, the Company is supported by the State Budget for expenses to implement according to Circular No. 39/2004/TT-BTC dated May 11, 2004 of the Ministry of Finance guiding procedures, formalities, and financial handling for activities of purchasing, selling, transferring, receiving, and resolving debts and remaining assets of enterprises.

Article 3: Activities of purchasing, selling, recovering, and resolving overdue debts include selling collateral assets to recover debts as stipulated in these regulations are not subject to value-added tax.

Article 4. The Chairman of the Board of Directors and the General Director of the Company are responsible under the law and before state management agencies for complying with the financial regime of the Company stipulated in these regulations and other current state financial regimes related thereto.

Article 5. The Ministry of Finance performs the function of state management over finance, is responsible for guiding and inspecting the Company's income and expenditure activities.

Article 6. FINANCIAL REGIME OF THE COMPANY

Chapter II
FINANCIAL REGIME OF THE COMPANY

PART I: MANAGEMENT AND USE OF CAPITAL AND ASSETS

Article 7. The operating capital of the Company includes:

1. Capital invested by the State in the Company:

1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows: Charter Capital of the Company is: VND 2,000 billion (two thousand billion dong) provided from the state budget, including:

-VND 500 billion (five hundred billion dong) provided at the time of the Company's establishment.

-The remainder will be gradually supplemented until 2005, including the form of transferring share capital contributions, joint ventures, joint operations formed from debts and assets purchased under designation and received for transfer to become registered capital.

In cases where it is necessary to increase the registered capital of the Company to expand its business scale, corresponding to the tasks assigned by the State, the Chairman of the Board of Management reports to the Minister of Finance for consideration and submits to the Prime Minister for decision.

b. Accumulated capital is supplemented into state capital according to current state regulations.

2. Raised capital, including: borrowing from financial credit organizations, issuing bonds, raising funds from other legal sources as needed for business activities. The raising of capital is carried out according to current regulations and the Interim Charter of the Company.

3. Other capitals as prescribed by law.

Article 8. Using capital for the Company's business activities

The Company has the right to actively use its own capital and funds to serve business activities according to the principles of efficiency, preservation, and development of capital.

1. Using capital to purchase debts and remaining assets according to agreements: The Company has the right to flexibly use its operating capital for debt purchasing and remaining asset activities. Within their authority, the Chairman of the Board of Management and the General Director of the Company specify the content and procedures for building and reviewing plans for debt and remaining asset purchases applicable within the Company.

2. Using capital to repair and upgrade remaining assets. The Company can proactively use its operating capital to repair and upgrade remaining assets with the aim of increasing value and facilitating the disposal of remaining assets to recover capital. Investment costs for improving and upgrading remaining assets are counted towards increasing the value of remaining assets. Investments in improving and upgrading remaining assets that fall under basic construction investment must comply fully with state regulations on investment management and construction. For assets purchased under designation and received for transfer, the Company implements according to Circular No. 39/2004/TT-BTC of the Ministry of Finance.

3. Using capital to invest in fixed asset procurement to serve the Company's activities. Fixed asset investment and procurement to serve the Company's activities must ensure the following principles:

-Suitable for the Company's operational needs

-The residual value of the total fixed assets of the Company does not exceed 20% of the registered capital.

-Compliance with current legal regulations on basic construction investment and fixed asset procurement for state-owned enterprises.

4. Using capital to invest outside the Company

4.1. Forms of investment outside the Company include:

-Depositing with term deposits at the State Treasury or state commercial banks operating in Vietnam.

-Purchasing government securities, municipal bonds, project bonds, and bonds of state-owned financial institutions. The maximum level of investment in these forms is 20% of the Company's registered capital.

-Contributing share capital, joint venture capital, and joint operation capital using debts and remaining assets

4.2. The Company may use capital to invest outside the Company without going through the purchase and sale of debts and remaining assets according to the principle of effectiveness, high liquidity investments, and not leading to a situation where there is insufficient capital to fulfill the main business task of purchasing, selling, and handling debts and remaining assets of enterprises.

Article 9. Utilization of State capital transferred to the Company for purchasing debts and surplus assets as designated.

The Company shall be supported with capital from the State budget to purchase debts and surplus assets as designated. The Company must utilize the source of capital to purchase debts and surplus assets strictly in accordance with the designation of the competent authority.

Article 10. Management, handling of purchased debts and surplus assets.

1. Debt and surplus asset management

- Each debt and surplus asset of the Company shall be treated as a special type of goods. The Company has the responsibility to open accounting books to record, monitor each debt and surplus asset according to actual purchase costs (including purchase price, transportation costs, repair and upgrade costs if applicable).

­- The Company shall establish ownership rights, management rights, and usage rights over purchased debts and surplus assets, conduct inventory checks, reconcile accounts, preserve, handle debts and surplus assets in accordance with the provisions of the law.

- Inventory checks and account reconciliations shall be carried out in accordance with the current regulations of the State on inventory checks, inventory goods, and account reconciliations.

2. Handling of debts and surplus assets:

- The Company is responsible for handling debts and surplus assets to recover capital, including: collecting debts from debtors; leasing, exploiting surplus assets; selling debts and surplus assets; using debts and surplus assets to contribute capital to joint stock companies, joint ventures, and partnerships; repairing and upgrading surplus assets.

- Valuation and methods of handling shall be conducted through market mechanisms and ensure efficiency principles.

- Authority to decide on handling debts and surplus assets shall be implemented in accordance with Article 14 of this Regulation.

3. Handling of revenue from debt and surplus asset disposal:

- Amounts recovered from debt (paid by debtors or proceeds from the sale of collateral assets), amounts received from leasing surplus assets, from selling debts and surplus assets are the revenue of the Company.

- Amounts included in contracts for contributing capital to joint stock companies, joint ventures, and partnerships of debts and surplus assets are investment amounts of the Company. This value shall not be counted as revenue of the Company. The difference between the recorded value on the Company's accounting books and the value included in the contribution and business cooperation contracts for debts and surplus assets shall be handled according to the current regime of the State applied to state-owned enterprises when dealing with differences arising from revaluation of assets contributed to joint stock companies, joint ventures, and partnerships.

4. Write-off of outstanding debts: For outstanding debts purchased by the Company under the agreement mechanism, the Company may write off in the following cases:

+ Debtor declares bankruptcy. The amount of debt written off is the amount of unpayable debt after completing the bankruptcy procedures as stipulated by law.

+ Debtor is an individual who has died or gone missing without any remaining assets and no heir to repay the debt.

The remaining portion of the actual purchase cost of the written-off debt in the aforementioned cases shall be offset by the reserve for depreciation of outstanding debts. If the reserve is insufficient to cover the shortfall, the difference shall be recorded as operating expenses of the Company.

Based on general State regulations, the Chairman of the Board of Directors of the Company shall specify detailed documentation, procedures, processes, and authority for writing off outstanding debts uniformly within the Company.

Article 11. Management, handling of debts and remaining assets purchased under designation and received for transfer.

1. Management of debts and remaining assets: The Company shall establish ownership rights, management rights, and usage rights over debts and remaining assets purchased under designation and received for transfer. The Company is responsible for opening accounting ledgers to separately track each debt and remaining asset purchased under designation and received for transfer.

2. Handling of debts and surplus assets: Implementation shall be carried out according to the following provisions:

- The Company is responsible for handling debts and surplus assets to recover capital, including: collecting debts from debtors; leasing, exploiting surplus assets; selling debts and surplus assets; using debts and surplus assets to contribute capital to joint stock companies, joint ventures, and partnerships; repairing and upgrading surplus assets.

- For debts and remaining assets with book value on the Company's accounting books of VND 1 billion or more before selling or contributing capital shares, joint venture capital, or associated capital, the Company shall conduct valuation through enterprises with appraisal functions.

- Selling debts and remaining assets shall be conducted through negotiation, bidding, or auction in accordance with the current Auction Regulations for Assets. In cases where debts and remaining assets are sold through negotiation, the following principles must be ensured:

+ Negotiation sale methods shall not be applied in cases of transferring land use rights value.

+ Debts and remaining assets can only be sold at prices no lower than their book values on the Company's accounting books, including transportation costs and repair and upgrade expenses (if applicable).

- Authority to decide on handling debts and remaining assets purchased or assigned for handling shall be implemented according to the provisions of Article 14 of this Regulation.

3. Handling of revenue from debt and surplus asset disposal:

- The amount recovered from debt collection (paid by debtors, proceeds from selling collateral assets), the amount obtained from leasing remaining assets, and proceeds from selling debts and remaining assets purchased under designation and received for transfer constitute the Company's revenue. After deducting appraisal fees, repair, and upgrade expenses (if applicable), and amounts stipulated in Circular No. 39/2004/TT-BTC of the Ministry of Finance that the Company and the enterprise holding the assets are entitled to, the Company is responsible for remitting such revenues to the State Budget (to supplement state-owned enterprise reform costs).

- The value included in the contract for contributing capital shares, joint venture capital, or associated capital for debts and remaining assets purchased under designation and received for transfer shall be considered as the Company's investment capital, not counted as revenue, and shall be supplemented to the Company's registered capital.

4. Write-off of assigned remaining debts: The Company may only write off debts based on decisions by the Prime Minister or decisions by the Minister of Finance authorized by the Prime Minister.

Article 12. Management of fixed assets and other types of assets of the Company

Leasing, mortgaging, selling, depreciation, liquidation of assets under the Company's management shall be carried out according to current regulations applicable to state-owned enterprises. Authority to handle fixed assets and other types of assets of the Company shall be implemented according to the provisions of Article 14 of this Regulation.

Article 13. Preservation of State Capital at the Company.

The Company is responsible for preserving State capital at the Company through the following measures:

1. Adhering to the financial management and asset utilization systems prescribed by the State.

2. Purchasing insurance for assets as prescribed.

3. Including in operating expenses the following provisions: Provision for reduction in inventory value (including debts and remaining assets); provision for difficult-to-collect receivables; provision for reduction in long-term investment value.

The establishment and use of provisions for reduction in inventory value (excluding debts and remaining assets), provisions for difficult-to-collect receivables, and provisions for reduction in long-term investment value shall be carried out according to current State regulations applicable to state-owned enterprises. Specifically regarding the establishment and use of provisions for reduction in value for debts and remaining assets, it is regulated as follows:

- Establishment of provisions shall only be carried out for debts and remaining assets purchased by the Company at negotiated prices. The Company shall not establish provisions for debts and remaining assets purchased under designation or assigned for handling.

- Level of establishment: minimum equal to 5% of the balance of purchase costs for debts and remaining assets recorded on the Company's accounting books. The Chairman of the Board of Directors of the Company shall specify the level and basis for establishing provisions for reduction in value of debts and remaining assets uniformly within the Company.

- Time of establishment: coincides with the time of establishing provisions for reduction in inventory value.

- Provisions for reduction in value of remaining assets shall be used as prescribed for the use of provisions for reduction in inventory value. Provisions for reduction in value of remaining debts shall be used to write off remaining debts as stipulated in Clause "4" of Article 10 of this Regulation.

Article 14: Authority to Decide on the Use of Capital, Debt Settlement, and Assets During the Company's Operations.

1. For investment plans outside the company, plans for purchasing, selling debts and assets, economic contracts, capital raising, and capital contribution:

- The Board of Directors of the Company is responsible for reviewing and submitting plans with a value of 50 billion VND or more to the Minister of Finance for decision.

- The General Director of the Company is responsible for reviewing and submitting plans with a value from 30 billion VND to 50 billion VND to the Board of Directors for decision.

- The General Director decides on plans with a value below 30 billion VND.

2. For construction investment projects, fixed asset procurement; plans for purchasing, selling, leasing, and liquidating the company's assets:

- The Board of Directors of the Company is responsible for reviewing and submitting plans with a value of 5 billion VND or more to the Minister of Finance for decision.

- The General Director of the Company is responsible for reviewing and submitting plans with a value from 3 billion VND to 5 billion VND to the Board of Directors for decision.

- The General Director decides on plans with a value below 3 billion VND.

3. For repair and upgrade plans for designated-purchased assets and received handovers:

- The Board of Directors of the Company is responsible for reviewing and submitting plans with a value of 1 billion VND or more to the Minister of Finance for decision.

- The General Director of the Company is responsible for building and reviewing plans with a value from 500 million VND to 1 billion VND to the Board of Directors for decision.

- The General Director decides on plans with a value below 500 million VND.

PART II: REVENUE AND OPERATING EXPENSES

Article 15. Revenue of the Company

1. Revenue from business activities includes:

1.1. Revenue from debt and surplus asset management activities:

1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows: Revenue from debt and surplus asset management activities according to agreements:

- From debt management activities:

+ Amounts collected from debtors;

+ Amounts from selling debts and collateral assets;

+ Amounts from leasing and utilizing collateral assets;

- From surplus asset management activities:

+ Amounts from selling surplus assets;

+ Amounts from leasing and utilizing surplus assets;

b. Revenue from debt and surplus asset management activities according to designations:

- From debt management activities:

+ Amounts collected from debtors;

+ Amounts from selling debts and collateral assets;

+ Amounts from leasing and utilizing collateral assets;

- From surplus asset management activities:

+ Amounts from selling surplus assets;

+ Amounts from leasing and utilizing surplus assets;

- Amounts received from the State budget at 1% of the purchase price of designated debts and assets.

c. Revenue from debt and surplus asset management activities upon receipt:

- From debt management activities:

+ Amounts collected from debtors;

+ Amounts from selling debts and collateral assets;

+ Amounts from leasing and utilizing collateral assets;

- From surplus asset management activities:

+ Amounts from selling surplus assets;

+ Amounts from leasing and utilizing surplus assets;

1.2. Revenue from consulting, brokerage, and debt and surplus asset management activities.

2. Revenue from financial activities, including: interest income from purchasing treasury bills and bonds; interest income from deposits; dividends from joint stock investments, joint venture investments, and business cooperation investments.

3. Other revenue items (if applicable).

Article 16. Expenses of the Company

1. Business operation expenses

1.1. Expenses for debt and surplus asset management activities, including:

1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows: Expenses for purchasing and selling debts and surplus assets according to agreements: Expenses for purchasing debts and surplus assets under the agreement mechanism (including: purchase price; transportation costs, repair, and upgrade costs if applicable) are recorded when there is income from managing these debts or surplus assets as follows:

- In the case where the debt is recovered in one lump sum: all expenses for purchasing that debt are transferred entirely to current period expenses.

- In the case where the debt is recovered in multiple installments:

+ If the amount collected from managing the debt (collecting from debtors; selling debts; utilizing and selling collateral assets) exceeds the purchase cost of the debt: all expenses for purchasing the debt are transferred entirely to current period expenses.

+ If the amount collected from managing the debt (collecting from debtors; selling debts; utilizing and selling collateral assets) is less than the purchase cost of the debt: a portion of the purchase cost is transferred to current period expenses equal to the actual amount collected from managing the debt. The remaining purchase cost is continued to be transferred to expenses according to the principle stated above when the debt continues to be recovered.

- In the case of selling surplus assets: all expenses for purchasing those surplus assets are transferred entirely to current period expenses.

- In the case of leasing surplus assets: expenses for purchasing those assets are transferred to expenses at the actual amount received during the period from leasing those assets.

b. Expenses for purchasing and selling debts and surplus assets according to designations:

- Repair and upgrade costs of assets (if any). These costs can only be transferred to current period expenses when there is income generated from upgraded and repaired surplus assets.

- Tax payments (to supplement state enterprise reform costs): The amount received from debts and remaining assets after deducting repair costs (if any) and the fee that the company is entitled to according to Circular No. 39/2004/TT-BTC of the Ministry of Finance.

c. Expenses for receiving and selling debts and surplus assets upon receipt:

- Repair and upgrade costs of assets (if any). These costs can only be transferred to current period expenses when there is income generated from upgraded and repaired surplus assets.

- Tax payments (to supplement state enterprise reform costs): The amount received from debts and remaining assets after deducting repair costs (if any) and the fee that the company and the entity holding the assets are entitled to according to Circular No. 39/2004/TT-BTC of the Ministry of Finance.

1.2. Outsourcing service costs for implementing debt and surplus asset management, including:

- Costs for valuation services, organizing auction sales of debts and surplus assets for sale, lease, joint ventures, and business cooperation using debts and assets.

- Commission fees must comply with the following principles:

+ The payment of commission fees by the company must ensure economic efficiency. The Board of Directors of the company bases its regulations on current state provisions, specific characteristics of the company to establish and issue a unified and publicized regulation on commission fees within the company. The Board of Directors and the General Director of the company are responsible for legal decisions regarding commission payments.

+ The recipients of commission fees are organizations and individuals (domestic and foreign) who provide brokerage and service to the company.

+ Commission fees cannot be applied to designated customers, management positions, or employees of the company.

The payment of brokerage commissions must be based on the contract or confirmation letter between the Company and the commission recipient, which must include the following basic contents: the name, address, identification number of the representative of the commission recipient; the details of the payment (clearly stating the results of debt processing and remaining assets contributed by the commission recipient to the Company); the amount of payment; the method of payment, time of implementation and completion; the responsibilities of each party.

- Expenses for protecting remaining assets.

- Expenses for other services related to debt processing and remaining assets.

- Other expenses of activities exploiting remaining assets.

1.3. Management expenses: The management expenses of the Company shall be implemented according to the current regime applicable to state-owned enterprises, including:

- Expenses for assets, including: Depreciation costs, repair and maintenance costs of fixed assets of the Company; tool costs.

- Salary, wage, and allowance costs with salary nature;

- Costs for female workers; labor protection or uniform costs; travel expenses; contributions to social insurance, health insurance; trade union fees; costs supporting the activities of the Party and mass organizations at the Company.

- Other management expenses.

1.4. Payment of taxes, fees, land rental payments related to business operations (excluding corporate income tax) as prescribed by law.

1.5. Other business activity expenses

- Advertising, marketing, promotional, reception, ceremonial, foreign transactions, conference and other types of expenses that must have invoices or receipts as prescribed by the Ministry of Finance, linked to business results. The level of expenditure is applied according to the current regime.

- Severance pay for employees as prescribed by the current regulations.

- Provisions for risk reserves in the Company's operations as prescribed in Article 13 of this Charter.

- The Company may account for research and development costs, technological management innovation costs; training and capacity enhancement costs for Company staff.

- Expenditure for protecting the organization.

- Environmental protection costs

- Other costs

2. Financial activity expenses: Interest payment on capital raised; expenses related to the purchase and sale of treasury bills, bonds; other financial expenses.

3. Other activity expenses:

3.1. Costs for the sale and liquidation of fixed assets

3.2. Costs for recovering debts that have been written off: The Company can pay to organizations with legal personality and individuals who have contributed to the recovery of written-off debts based on their efforts and effectiveness. The procedures, responsibilities, and legal liabilities when implementing these payments follow the provisions for brokerage commission payments stipulated in Subsection (b), Section (1) of Article 16 of this Charter.

3.3. Remaining loss of assets after having been offset by sources as prescribed by current regulations.

3.4. Other reasonable and legitimate expenses.

PART III: DISTRIBUTION OF PROFITS AND ESTABLISHMENT OF FUNDS

Article 17. Company Profits

Profits realized in the year are the business results of the Company, including operating profits, financial investment profits, and other activity profits.

Article 18. Distribution of Company Profits.

After paying taxes, transferring losses according to the Corporate Income Tax Law and fulfilling other financial obligations as prescribed by law, the Company's profits shall be distributed according to the current regulations.

In the first two years of operation, if retained earnings are insufficient to establish incentive and welfare funds equal to three months' salary, the Company shall report to the Minister of Finance for consideration and decision.

PART IV: FINANCIAL PLANNING, ACCOUNTING WORK
STATISTICS AND AUDIT

Article 19. Financial Plans

- The General Director of the Construction Company shall prepare medium-term, long-term, and annual financial plans consistent with the business plan of the Company for approval by the Board of Directors.

- The Board of Directors shall decide on the financial plan of the Company and report to the Ministry of Finance as a basis for supervision and evaluation of the management and operation results of the Board of Directors and the General Director. The content and time for the Company to submit its financial plan to the Ministry of Finance shall be carried out according to the current regulations applicable to state-owned enterprises. Along with the financial plan, the Company also prepares and submits to the Ministry of Finance the following plans: medium-term and long-term capital raising plan for the period; purchase and sale of debts and surplus assets for the period; repair and upgrade plan for surplus assets for the period (models 1, 2, and 3 in the attached annex).

Article 20. Accounting, Statistics, Financial Reporting, and Financial Disclosure

1. Accounting and Statistics: The Company shall carry out accounting and statistics in accordance with the current regulations of the State.

2. Financial Reporting: Quarterly and annually, the Company has the responsibility to prepare and submit financial reports according to the current regulations applicable to state-owned enterprises, in addition to submitting the following reports: situation of medium-term and long-term capital raising during the period; situation of repairing and upgrading surplus assets during the period; results of handling overdue debts during the period; results of handling surplus assets during the period; independent audit results (models 1, 3, 4, and 5 in the attached annex).

The annual settlement report of the Company must be approved by the Chairman of the Company's Board of Directors after receiving confirmation from the Company's Audit Committee.

3. Financial Disclosure: The Company must disclose its financial situation in accordance with the provisions of the State. Announce the annual financial performance results of the Company according to the guidelines of the Ministry of Finance and bear legal responsibility for the disclosed content. in accordance with the provisions of the State. Announce the annual financial results of the Company in accordance with the guidelines of the Ministry of Finance and bear legal responsibility for the contents published.

4. Fiscal Year begins on January 1 and ends on December 31 of each calendar year.

Article 21. Inspection and Audit

1. The annual financial report of the Company must be audited by an independent auditing firm in accordance with current regulations. In cases where the Company has been audited by the National Audit Office for that year, the annual financial report does not need to be independently audited.

2. The Company implements internal audit systems for its activities in accordance with current State regulations.

3. The Company is subject to supervision, inspection, and audit by the Ministry of Finance regarding the Company's financial activities and the financial reports prepared by the Company./.