DECISION OF THE MINISTER OF FINANCE

Regarding the issuance of the Regulation on the consolidation and analysis of financial reports of state-owned enterprises within the jurisdiction Based on Decree No. 84/1999/ND-CP dated August 28, 1999 of the Government on the restructuring of the State Capital and Asset Management General Department under the Ministry of Finance;

THE MINISTER OF FINANCE

BASED ON DECREE NO. 178/CP DATED OCTOBER 28, 1994 OF THE GOVERNMENT ON THE TASKS, POWERS AND ORGANIZATIONAL STRUCTURE OF THE MINISTRY OF FINANCE;

Based on Decision No. 106/1999/QD-BTC dated September 11, 1999 of the Minister of Finance on the tasks, powers, and organizational structure of the Enterprise Finance Department under the Ministry of Finance;

Based on Circular No. 109/1999/TT-BTC dated September 11, 1999 of the Ministry of Finance guiding the tasks, powers, and organizational structure for managing the finances of state-owned enterprises at provincial finance and price departments;

Based on Decision No. 167/2000/QD-BTC dated October 25, 2000 of the Minister of Finance on the issuance of the financial reporting system for state-owned enterprises;

At the proposal of the Director of the Enterprise Finance Department, the Head of the Ministry of Finance's Office;

This Decision promulgates the Regulation on the consolidation and analysis of financial reports of state-owned enterprises within the jurisdiction.

DECISION:

Article 1. The Directors of Provincial Finance and Price Departments, the Heads of the Enterprise Finance Department, and the Heads of the Ministry of Finance's Office shall be responsible for implementing this Decision.

Article 2. This Decision takes effect fifteen days after the date of signature.

Article 3. - Prime Minister, Deputy Prime Ministers (for comments)

REGULATIONS

OF STATE-OWNED ENTERPRISES WITHIN THE JURISDICTION

(Issued pursuant to Decision No. 208/2000/QD-BTC dated December 25, 2000 of the Minister of Finance)

Article 1: The subjects applying the Regulation on the consolidation and analysis of financial reports of state-owned enterprises are the Provincial Finance and Price Departments.

Article 2: Contents of the report on state-owned enterprises within the jurisdiction of provinces and centrally governed cities include:

1. Report on enterprise restructuring results: quarterly report

- Consolidated report on the results of restructuring state-owned enterprises managed by the locality: Form 1.

- Report on progress and results of implementing shareholding, diversifying ownership, and managing state-owned enterprises managed by the locality: Form 2.

2. Report on the financial situation and business results of state-owned enterprises:

- Estimated report for the first six months and the last six months of the year on the operational activities of state-owned enterprises within the jurisdiction: Form 3.

- Annual report on the financial situation and business results of state-owned enterprises within the jurisdiction:

+ Form 4a: Consolidated financial report of state-owned enterprises within the jurisdiction

+ Form 4b: Report on the business operation results of state-owned enterprises within the jurisdiction

In addition to numerical reports, there must also be analytical reports on the business operations and financial management of enterprises within the jurisdiction, including an analysis of certain indicators according to Appendix 1 attached to this Regulation.

Article 3: Reporting method:

Reports in written form. Additionally, for annual reports (Form 4a and Form 4b), written consolidated data reports and detailed data reports for each enterprise on disk (according to a separate guidance program).

Article 3: Reporting Method:

Reporting in writing. Additionally, for annual reports (Form 4a and Form 4b), reporting shall be in writing for consolidated data and on floppy disk for detailed data of each enterprise (in accordance with the separate guidance program).

Article 4: Time and place for submitting reports:

- Deadline for submitting reports:

+ Quarterly report: no later than 30 days from the end of the quarter.

+ Semi-annual report: on June 20th and December 20th each year.

+ Annual report: no later than 3 months from the end of the year.

- Place to submit reports: Ministry of Finance (Enterprise Financial Department)

Article 6: Responsibilities of the Provincial Department of Finance - Prices:

- Urging state-owned enterprises within their jurisdiction to comply with regulations regarding deadlines and contents of financial reporting systems to monitor and supervise business operations and the fulfillment of obligations towards the State.

- Compiling the financial situation of state-owned enterprises within their jurisdiction according to the system of forms set out in Article 2 of this Regulation.

- Analyzing the results of business operations and the financial situation of state-owned enterprises within their jurisdiction (based on the indicators provided in Appendix 1 attached) to propose measures to improve capital utilization, ensure preservation and development of capital, and enhance competitiveness of state-owned enterprises within their jurisdiction.

- Timely grasping the situation of restructuring state-owned enterprises, progress in shareholding, diversification of ownership and management of state-owned enterprises established or funded by the provincial or centrally-administered city. Clearly stating advantages, difficulties and obstacles, recommendations on restructuring and diversification of ownership and management of state-owned enterprises.

- Reporting to the People's Committee of the province or centrally-administered city and the Ministry of Finance on the above contents and implementing some urgent reports on the business and financial situation of state-owned enterprises within their jurisdiction (if there are significant changes or upon request).

Article 7: Based on consolidated reports and analysis of the financial situation of state-owned enterprises within the provinces and cities, the Enterprise Financial Department shall be responsible for compiling and analyzing the financial situation of state-owned enterprises nationwide, while systematizing and retaining them for exploitation to serve common requirements.

ANNEX 1

INDICATORS FOR ANALYZING BUSINESS ACTIVITY

OF ENTERPRISES

(Attached to Decision No. 208/2000/QĐ-BTC

Article 2: Contents of the report on state-owned enterprises within the jurisdiction of provinces and centrally governed cities include:

1. Liquidity:

- Current liquidity

Current assets and short-term investments (MS 100 BCĐKT)

Short-term liabilities (MS 310 BCĐKT)

Reflects the ability to pay short-term debts using current assets and short-term investments.

- Quick liquidity

Cash and short-term financial investments that can be sold immediately on the market (MS 110 + 120 BCĐKT)

Short-term liabilities (MS 310 BCĐKT)

Reflects the ability to pay short-term debts using cash and short-term financial investments that can be quickly converted into cash.

2. Debt ratio:

- Debt-to-total-assets ratio:

Liabilities (MS 300 BCĐKT)

Total assets (MS 250 BCĐKT)

Examines the ratio between liabilities and total assets of the enterprise.

- Debt-to-equity ratio:

Liabilities (MS 300 BCĐKT)

Shareholders' equity (MS 400 BCĐKT)

Examines the ratio between liabilities and shareholders' equity to assess the level of security for creditors. In other words, how much debt is there for every unit of shareholders' equity.

3. Efficiency of capital use and profitability:

- Profit margin on revenue:

Total profit (MS 60 KQHĐKD)

Total revenue (MS 10 + MS 31 + MS 41 KQHĐKD)

Examines how much profit is generated from one unit of revenue.

- Return on equity:

Total profit (MS 60 KQHĐKD)

Shareholders' equity (MS 400 BCĐKT)

Examines how much profit is generated from one unit of shareholders' equity.

- Accounts receivable turnover ratio:

Average balance of accounts receivable

Total revenue (MS 10 + MS 31 + MS 41 KQHĐKD)

Reflects the ratio of accounts receivable to sales revenue.

[The average balance of accounts receivable (MS 130 BCĐKT) is calculated as the beginning balance plus the ending balance divided by two.]

4. Capital preservation level: