Circular No. 79/2016/TT-BTC guides the implementation of financial review for programs and projects refinanced from foreign loans provided by the Government.

CIRCULAR

Guidelines for the financial review of programs and projects refinanced from foreign government loans

_______

On the basis of Law on Public Debt Management No. 29/2009/QH12 June 17, 2009;

On the basis of Law on Public Investment No. 49/2014/QH13 June 18, 2014;

Decree No. Decree No. 78/2010/NĐ-CP July 14, 2010 of the Government on refinancing government foreign loans;

Decree No. Decree No. 79/2010/NĐ-CP July 14, 2010 of the Government on public debt management operations;

Decree No. Decree No. 16/2016/NĐ-CP March 16, 2016 of the Government on management and use of official development assistance (ODA) and preferential loans from foreign donors;

Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Amending and supplementing Clause 4, Article 4 of Circular No. 06/2011/TT-BYT as follows:intention Debt and Foreign FinanceNo.Affairs,

The Minister of Finance issues this Circular guiding the implementation of financial reviews of programs and projects refinanced from foreign government loans.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

Article 1. This Circular stipulates the financial review for:

a) Review when deciding to invest in programs and projects financed wholly or partially by foreign government loans;

b) Review for refinancing foreign government loans to enterprises.

Programs and projects invested under the method where the refinancing agency bears full risk shall conduct reviews and provide loans according to the regulations of financial credit organizations, in compliance with the law and outside the scope of this Circular.

The review of refinancing foreign government loans for provincial People's Committees shall be carried out in accordance with the law on local government refinancing.

Article 2. Applicability

The subjects applying this Circular include investment decision-making agencies, the Ministry of Finance, refinancing agencies, borrowers, and other organizations and individuals related to the financial review of programs and projects refinanced from foreign government loans within the scope of this Circular.

Article 3. Explanation of Terms

Terms used in this Circular are understood consistently with those of the Law on Public Debt Management No. 29/2009/QH12 dated June 17, 2009, Decree No. 78/2010/NĐ-CP dated July 14, 2010 of the Government on refinancing government foreign loans (hereinafter referred to as Decree No. 78/2010/NĐ-CP), and Decree No. 16/2016/NĐ-CP dated March 16, 2016 of the Government on management and use of official development assistance (ODA) and preferential loans from foreign donors (hereinafter referred to as Decree No. 16/2016/NĐ-CP). Other terms are understood as follows:

1. Benefit-cost ratio (B/C) is the ratio between the present value of benefits and the present value of costs determined over the project's life cycle.

2. Net Present Value (NPV) is the value of the entire net cash flow of the project in the future discounted to the present time.

3. Internal Rate of Return (IRR) is the discount rate at which the net present value of the project equals zero (0).

4. The formulas for calculating the financial indicators mentioned in Clauses 1, 2, and 3 of this Article are guided in Appendices 1 and 2 attached to this Circular.

Article 4. Principles of Financial Review

1. Reviews must ensure objectivity, transparency, and prudence.

2. Investment decision-making agencies are responsible for the results of the review and the decision on investment projects in accordance with the law.

3. Borrowers are legally responsible for the accuracy, legality, reasonableness, and compliance of data, information, parameters, and input data provided to the reviewing agency for financial plan calculations, loan repayment plans for the project, and the borrower's financial capacity.

4. For programs and projects invested under the method where the refinancing agency bears partial credit risk, financial reviews shall be conducted in accordance with the provisions of this Circular and the refinancing agency's regulations.

5. Financial reviews for investment decisions shall be carried out in accordance with Decree No. 16/2016/NĐ-CP, this Circular, and relevant laws.

6. Financial reviews for refinancing foreign government loans shall be carried out in accordance with Article 19 of Decree No. 78/2010/NĐ-CP, this Circular, and relevant laws.

Article 5. Appraisal Method

1. When appraising the financial plan of the refinancing project, the determination of the discount rate of the project (r), the benefit-cost ratio of the project (B/C), net present value (NPV) and internal rate of return (IRR) shall be carried out in accordance with the guidance provided in Appendix 1 of this Circular.

2. When appraising the financial capacity of the refinancing borrower, the determination of financial indicators shall be carried out in accordance with the guidance provided in Appendix 2 of this Circular.

Chapter II

CONTENT OF APPRAISAL

Article 6. Appraisal of Refinancing Eligibility Conditions

1. Appraisal of compliance with refinancing regulations and conditions, including financial conditions and ensuring procedural requirements for investment projects as stipulated by law; the refinancing borrower must ensure financial capacity, maintain the prescribed equity ratio, have an effective business plan demonstrating the ability to repay debt, and comply with provisions on loan guarantees.

2. The eligibility conditions for refinancing borrowers shall be applied in accordance with the provisions of the Law on State Debt Management.

Article 7. Appraisal of Financial Capacity of the Refinancing Borrower

1. Appraisal of the financial capacity of the refinancing borrower through the appraisal of audited financial reports of the three most recent consecutive years compared to the year of conducting the financial capacity appraisal of the refinancing borrower.

2. In cases where the refinancing borrower has not been operating for at least three years, there must be a commitment letter from the representative of the owner, the owner, or the parent company regarding the guarantee to repay debt in case the refinancing borrower encounters difficulties in repaying debt. In the absence of such guarantees, the refinancing borrower must have a bank guarantee for debt repayment or another form of guarantee that has been reviewed by the refinancing lending agency for feasibility and compliance with current laws.

Article 8. Appraisal of Loan Plan and Debt Repayment Capacity of the Refinancing Borrower

1. Appraisal of the capital utilization plan, including the ability to allocate and recover investment capital of the project, wherein it clearly determines:

a) Sources of investment capital (including equity, joint venture capital, project implementation capital, budgeted capital, borrowed capital, and other capital as prescribed by law);

b) Project costs;

c) The ability to allocate investment capital, the ability to generate revenue, and cash flow of the project.

2. Appraisal of financial indicators through the appraisal method specified in Article 5 of this Circular.

3. Determination of debt repayment capacity according to the repayment schedule of the refinanced loan, any shortfall in cash flow for debt repayment (if any), and proposal of a plan to make up for the shortfall.

Article 9. Appraisal of Collateral for the Refinancing Loan

The appraisal of collateral for the refinancing loan aims to assess compliance with the provisions on collateral for refinancing loans under Decree No. 78/2010/NĐ-CP and Circular No. 139/2015/TT-BTC dated September 3, 2015, issued by the Ministry of Finance guiding the provision of collateral for foreign loans refinanced by the Government.

Article 10. Evaluation and Comments on Non-Financial Factors

Evaluation and comments on non-financial factors include:

1. Business sector; management level, capacity, and experience of the leadership; governance model of the refinancing borrower.

2. Economic, financial, borrowing, and debt repayment relationships between the refinancing borrower and trading partners, customers, and lending organizations.

Article 11. Risk Assessment and Risk Mitigation Measures

The lending agency provides opinions on risks and evaluates the effectiveness of the project according to risk scenarios; assesses risk mitigation measures proposed by the borrower.

Chapter III

PROCEDURES AND REVIEW DOCUMENTS

Article 12. Review at the Investment Decision-Making Agency

1. When preparing the Report proposing investment policy or feasibility study report for programs and projects funded by foreign loans under the rescheduling mechanism, the Investment Decision-Making Agency proposes the borrower and the rescheduling method according to one of the following methods:

a. Rescheduling through a method where the rescheduling agency does not bear credit risk.

b. Rescheduling through a method where the rescheduling agency bears partial or full credit risk.

c. Financial and credit organizations reschedule according to the program and credit limit.

2. When reviewing the documents of programs and projects funded by foreign government loans, the Investment Decision-Making Agency organizes the review of the financial plan of the rescheduled project, the borrower's compliance with rescheduling conditions as stipulated by current regulations and this Circular.

a. The financial review content is carried out in accordance with Chapter II of this Circular.

b. To serve the financial review, the project proponent sends the review agency the documents specified in Clause 1, Article 13 of this Circular (excluding point c).

c. The review period is implemented in accordance with Article 30 of Decree No. 16/2016/NĐ-CP.

3. Funding for Review Work

a. Funding for review work at the Investment Decision-Making Agency is paid from the agency’s budget.

b. The content and level of funding for review work are carried out in accordance with current regulations.

c. The preparation, implementation, and settlement of funding for review work comply strictly with the State Budget Law.

Article 13. Review at the Rescheduling Agency

1. List of Review Documents

The borrower submits a letter to the rescheduling agency authorized by the Ministry of Finance in accordance with Clause 1, Article 16, requesting a rescheduling review along with the documents for review, and simultaneously sends it to the Ministry of Finance. The borrower is responsible for the accuracy, reasonableness, legality, and compliance with laws of the provided documents for the rescheduling review; technical economic parameters, revenue forecasts, production volumes, and other data presented in the project documentation.

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

a. Prime Minister's decision allowing the use of foreign government loans.

b. Program/project documentation.

c. Investment approval decision by the competent authority.

d. Audited financial statements of the three most recent consecutive years prior to the financial capacity assessment year (for operating enterprises/business entities); if the borrower has been operating for less than three years, they must provide a commitment letter from the owner or parent company guaranteeing repayment in case of difficulty. In the absence of such guarantees, the borrower must submit a bank guarantee for debt repayment or other proof of collateral arrangements for the review agency to check their feasibility and compliance with current laws.

If the borrower is a parent company, the financial statement includes the parent company's financial statement and the consolidated financial statement of the group. If a subsidiary borrows funds with the parent company's guarantee, the financial statement includes the subsidiary's financial statement, the parent company's financial statement, and the consolidated financial statement of the group.

đ. Report on the borrower's credit relationships with lending institutions up to the latest date before the financial review; list of credit contracts signed by the borrower and the loan repayment status; any guarantees or collateral provided for third parties.

e. Documentation on the collateral plan in accordance with Decree No. 163/2006/NĐ-CP dated December 29, 2006, on secured transactions and Decree No. 11/2012/NĐ-CP dated February 22, 2012, amending and supplementing certain articles of Decree No. 163/2006/NĐ-CP.

g. Financial plan based on reference conditions for rescheduling as stipulated in Decree No. 78/2010/NĐ-CP and guidance documents implementing rescheduling under the Public Debt Management Law.

2. Time Limit and Content of Review at the Rescheduling Agency

a. Review Period

- The borrower is responsible for submitting the required documents to the rescheduling agency for review. If additional documents are needed, the rescheduling agency will notify the borrower in writing. Within seven days of receiving the notification, the borrower must submit the additional documents as required.

- In necessary cases, to verify the reliability and feasibility of assumptions used in calculating the financial efficiency of the project, the rescheduling agency may request additional documents to confirm the basis for these assumptions or seek opinions from relevant management agencies.

- Within thirty working days from the date of receipt of complete valid documents from the borrower, the rescheduling agency conducts the review and sends the review result report to the Ministry of Finance.

b. Review Content

The review result report needs to clarify the following contents:

- Evaluation of compliance with conditions for using foreign government loans under the rescheduling mechanism as stipulated by law.

- Evaluation of the borrower's financial capability.

- Evaluation of the project's financial plan prepared by the borrower, the basis for assumptions about revenue, costs, and rescheduling conditions of the project.

- Evaluation of the proposed collateral usage plan.

- Evaluation of the level of risk of the capital usage plan, the borrower's ability to repay debts under basic risk scenarios; propose preventive measures for risks.

- Provide clear opinions on the ability to repay (or inability to repay) the debt of the project and the borrower; and the conditions for refinancing applied to the borrower in accordance with current regulations.

Article 14. Review at the Ministry of Finance

1. After receiving the report on the results of the appraisal from the Refinancing Institution, the Ministry of Finance shall examine the following contents:

a. Examine the suitability of the appraisal file, the appraisal process, and the methods applied by the Refinancing Institution.

b. Examine the approach to handling differences in viewpoints and assessments of the ability to repay between the Borrower and the Refinancing Institution.

c. Evaluate the results of the appraisal by the Refinancing Institution, including:

- Evaluating the conclusions of the appraisal by the Refinancing Institution; in cases where the conclusions of the Refinancing Institution regarding the financial plan of the program/project and the financial capacity of the project owner differ from the assessment of the Managing Authority, the Ministry of Finance shall seek the opinion of the Managing Authority to decide within its authority or report to the Prime Minister for consideration and decision.

- Recommendations on whether to refinance or not to refinance; preventive measures against risks when refinancing.

d. Examine the recommendations of the Borrower and the Refinancing Institution regarding guarantee solutions and necessary support from the Borrower or third parties in cases where the project temporarily lacks repayment sources.

2. Based on the results of the review of the appraisal report of the Refinancing Institution, the Ministry of Finance shall submit to the Prime Minister or decide within its authority on the matter of refinancing for the program/project and notify the conditions for refinancing to the Refinancing Institution and the Borrower.

3. In cases where there are differing opinions among agencies, to provide supporting evaluations for the Ministry of Finance in making decisions to approve refinancing loans, the Ministry of Finance may consult independent organizations or individuals with expertise to re-evaluate the results of the appraisal of the Refinancing Institution regarding the financial plan of the project and the financial capacity of the Borrower. The independent organization or expert shall be responsible for their opinions.

4. Expenses for review and appraisal work

a. Administrative costs for independent organizations and experts conducting appraisals at the Ministry of Finance shall be paid from the regular budget of the Ministry of Finance or from the refinancing fees and the portion of guarantee fees collected by the Ministry of Finance according to regulations.

b. Annually, the main unit responsible for refinancing shall prepare a budget estimate for the appraisal work mentioned in this Article and submit it to the Ministry of Finance for consolidation and approval in the regular budget of the Ministry of Finance. The preparation, implementation, and settlement of the budget shall comply with the provisions of the State Budget Law.

Chapter IV

RESPONSIBILITIES OF THE RELATED AGENCIES

Article 15. Responsibilities of the investment decision-making agency

1. The investment decision-making agency shall organize the appraisal and decision-making on investment, including the appraisal of the financial plan of the refinancing project and the financial capacity of the Borrower in accordance with Decree No. 16/2016/NĐ-CP, current regulations, and this Circular.

2. The investment decision-making agency shall be responsible for the results of the appraisal and decision-making on investment projects, the effectiveness of investment projects, including financial appraisal in accordance with the law.

Article 16. Responsibilities of the Ministry of Finance

1. Notify the investment decision-making agency and the Borrower about the Refinancing Institution authorized by the Ministry of Finance for the refinancing project.

2. Based on the investment decision of the competent authority and considering the results of the appraisal by the Refinancing Institution, the Ministry of Finance shall submit to the Prime Minister or decide within its authority on the matter of refinancing for the program/project.

Article 17. Responsibilities of the agency lending out under the delegation of the Ministry of Finance

1. Implementing the financial assessment of the borrowing project's financial plan and the borrower's financial capacity in accordance with Decree No. 78/2010/NĐ-CP and the provisions of this Circular.

2. Reporting the results of the assessment to the Ministry of Finance.

3. Proposing clearly whether to lend or not to lend for the project, being responsible for the results of the assessment.

Article 18. Responsibilities of the borrower

The borrower shall be responsible for the accuracy, reasonableness, legality, and compliance with laws regarding the figures, information, parameters, and input data provided to the investment decision-making agency, the Ministry of Finance, and the lending agency for calculating the financial plan, debt repayment plan of the project, and the borrower's financial capacity.

Chapter V

IMPLEMENTATION

Article 19. Effective Date

1. This Circular takes effect from July 20, 2016.

2. During its implementation, if the regulatory documents cited for application in this Circular are amended, supplemented, or replaced by new documents, then the new documents shall apply.

3. During implementation, if there are difficulties, please promptly reflect them to the Ministry of Finance for research and resolution./.

ANNEX 1

(Issued together with CircularNo. Decision No. 79/2016/TT-BTC dated June 6, 2016 Port Authority Name

Financial index calculation formula

The agency assessing the financial plan of the borrowing project determines the Discount Rate of the project (r), Present Value Profitability Index of the project, Net Present Value (NPV) and Internal Rate of Return (IRR).

1. Discount Rate of the project (r):

In the case where the project is invested with different sources of capital, r is calculated according to the weighted average method:

Where:

- V (VND/year): is the total investment capital allocated annually for the usable area of social housing for rent, ensuring the preservation of capital, calculated according to the following formula:₁, V₂..., various medium and long-term loan sources

- V (VND/year): is the total investment capital allocated annually for the usable area of social housing for rent, ensuring the preservation of capital, calculated according to the following formula:_tc: own capital of the investor

- r₁, r₂,..: interest rate on borrowed funds

- r_tc: desired discount rate (cost of capital) of the investor

2. Benefit-to-Cost Ratio of the project (B/C): is the ratio between the present value of benefit cash flow and the present value of cost cash flow determined throughout the project's life cycle. The project is only effective when the profitability index * B Total benefits of the project in year i > 1

Where:

0i_i: Includes:

B_i = B_{: Annual revenue of the project} + T_measures + V_{- Column (2) records the type of mineral and its export quality.}

: Other income at year i

Ministry of Construction sets specific price_{: Annual revenue of the project}: Remaining un-depreciated or un-discounted value of fixed assets at the final calculation year at year i (i runs from 1 to n)

- T_measures* C

- V (VND/year): is the total investment capital allocated annually for the usable area of social housing for rent, ensuring the preservation of capital, calculated according to the following formula:_bi: Total costs of the project in year i

0ti_i: Total investment costs (if any) in year i

C_i = I_ti ĐMT_{: Annual operating costs of the project in year i}

: Other income at year i

- I_ti- (D

Ministry of Science and Technology: The Minister and Deputy Ministers, agencies and units under the Ministry;_0ti) + T

C_0ti TTĐ_ti ni_ti + L_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.i}: Cost of goods sold in year i of the project_{Depreciation of fixed assets in year i of the project}

: Other income at year i

Ministry of Science and Technology: The Minister and Deputy Ministers, agencies and units under the Ministry;_ti: Interest on fixed capital loans included in product cost in year i

- D_ti: : Various taxes in year i (including: VAT + V

-_ti: Remaining un-depreciated or un-discounted value of fixed assets at the final calculation year at year i (i runs from 1 to n).

- T_{Depreciation of fixed assets in year i of the project}* r: Selected discount rate_k + V_tn)

- V (VND/year): is the total investment capital allocated annually for the usable area of social housing for rent, ensuring the preservation of capital, calculated according to the following formula:_{- Column (2) records the type of mineral and its export quality.}means:

The Benefit-to-Cost Ratio of the project indicates how many present value benefits can be obtained from each present value cost invested in the project.

4. Commitment to comply with current legal regulations on intellectual property rights. - Case B/C > 1: The project is financially viable.

- Case B/C < 1: The project is not financially viable.

3. Net Present Value (NPV)

Net Present Value (NPV) is the present value of future net income of the project converted to the current time point.

• i - time period for cash flow calculation

• n - total project implementation time

Where:

• r - discount rate

• B

: Total benefits of the project in year i

• C_iNet Present Value assesses whether the total present value of expected future revenues can cover initial costs.

- Case NPV > 0: The project is financially viable._i: Total investment costs (if any) in year i

4. Commitment to comply with current legal regulations on intellectual property rights. - Case B/C > 1: The project is financially viable. - Case NPV < 0: The project is not financially viable. 4. Internal Rate of Return (IRR)

Internal Rate of Return (IRR) is the discount rate at which the Net Present Value of the project equals zero (0).

• t - time period for cash flow calculation

• IRR - internal rate of return

- net cash flow at time t

Where:

- initial cost to implement the project

• B

Internal Rate of Return (IRR) is the growth rate that a project can generate, informing investors about the highest cost of capital they can accept.

• C_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.} - Case IRR > discount rate: The project is financially viable. The higher the IRR, the higher the financial viability of the project.

- Case NPV > 0: The project is financially viable.₀ - Case IRR < discount rate: The project has low financial viability.

4. Commitment to comply with current legal regulations on intellectual property rights. - Case B/C > 1: The project is financially viable. IRR is a simple method but for long-term projects with varying cash flows and discount rates, projects with unstable cash flows, IRR is not a good indicator and NPV should be chosen for evaluation./. When assessing the financial capacity of the borrower, the agency conducting the assessment bases on current laws and determines the following financial indices: 1. Group of capital structure indices:

a. Debt Service Coverage Ratio (DSCR): the ratio of operating cash flow / annual debt payable. - Case DSCR > 1: The project has the ability to generate sufficient profits to cover debts from its own cash flow.policies- Case DSCR < 1: The project's cash flow shows signs of difficulty, making it hard to cover debts from its own cash flow.

b. Debt to Equity Ratio (D/E): the ratio of total debt payable / total equity. - Case D/E < 1: The company's assets are mainly financed by equity. The lower this ratio, the smaller the proportion of debt to total assets or total capital, indicating less financial difficulty for the company.

- Case D/E > 1: The company's assets are mainly financed by debt. If debt exceeds equity, the company may face risks in repaying debt.

ANNEX 2

(Issued together with CircularNo. Decision No. 79/2016/TT-BTC dated June 6, 2016 Port Authority Name

Financial index calculation formula

c. Ratio of contributed equity to registered capital. In cases where registered capital is larger than equity, it may originate from insufficient capital contribution or reduction in equity due to business losses.

2. Group of operational indices:

a. Return on Equity (ROE): "7. A flexible power plant is a thermal power plant using reciprocating internal combustion engines (RICE) or aeroderivative gas turbines (Aero-GT) with fast start-up capabilities, designed in modular form to generate electricity for balancing capacity and maintaining power system stability."Net income

4. Commitment to comply with current legal regulations on intellectual property rights. - Case B/C > 1: The project is financially viable.

- Net income (Net income): Profit allocated to shareholders

- In case the Debt Service Coverage Ratio (DSCR) < 1: The project's cash flow shows negative signs, indicating difficulties in covering debts from its own cash flow.

b. Debt to Equity ratio (D/E): This is the ratio of Total Liabilities to Shareholders' Equity.

4. Commitment to comply with current legal regulations on intellectual property rights. - Case B/C > 1: The project is financially viable.

- In case D/E < 1: The company's assets are mainly financed by shareholders' equity. The lower this ratio, the smaller the proportion of liabilities relative to total assets or total capital, indicating that the company faces fewer financial difficulties.

- In case D/E > 1: The company's assets are mainly financed by debt.policiesIf liabilities exceed shareholders' equity, it means the company borrows more than its existing capital, thus potentially facing risks in debt repayment.

c. The ratio of contributed paid-in capital to authorized capital. When the authorized capital is larger than the paid-in capital, it may indicate insufficient capital contribution or a reduction in shareholders' equity due to business losses.on ||| share capital may originate fromPlan for handling assets after the expiration of the joint venture and association period This could be due to insufficient capital contributions or a decrease in shareholders' equity due to business losses.

2. Group of activity indicators:

a. Return on Equity (ROE):Net Income - Net Income (Net Profit): This is the net profit allocated to shareholders.

Where:

- Net income (Lợi nhuận ròng): Is the net profit allocated to shareholders. usually (after paying dividends to preferred shareholders).

- Shareholders’ Equity (Equity): Is the capital stock of shareholders (Shareholder’s Equity).

4. Commitment to comply with current legal regulations on intellectual property rights. - Case B/C > 1: The project is financially viable.

This index is the most accurate measure for evaluating how much profit is generated from a unit of invested capital. This ratio can be assessed from specific perspectives as follows:

- ROE ≤ bank loan interest rate: The profit generated is only sufficient to pay off bank interest.

- ROE > bank loan interest rate: The profit obtained exceeds the bank interest payment, however, it is also necessary to evaluate whether the company has borrowed from banks and fully exploited its competitive advantages in the market to assess whether the enterprise can increase the ROE ratio in the future or not.

b. Return on Investment (ROI): is the ratio of Net Income / Total Assets.Net Income ROI

4. Commitment to comply with current legal regulations on intellectual property rights. - Case B/C > 1: The project is financially viable. c. Capital Raising Ratio (percentage of self-raised capital).

d. Self-Finance Ratio (SFR):

Self-finance ratio): - Self-finance ratio = Shareholders' equity / Total assetsiThis coefficient reflects the proportion of shareholders' equity in total assets of the enterprise. Determining the appropriate level of shareholders' equity in the enterprise's capital will depend largely on the activities and policies of each enterprise as well as each industry.

A high ratio indicates the enterprise's financial autonomy capability, but it also shows that the enterprise has not utilized financial leverage much.

4. Commitment to comply with current legal regulations on intellectual property rights. - Case B/C > 1: The project is financially viable. 3. Group of liquidity ratios:development a. Current Ratio (current ratio): is the ratio between current assets and current liabilities.

The current ratio indicates the ability of a company to use short-term assets such as cash, inventory, or receivables to pay off its short-term liabilities.

- Current ratio > 1: The company has more ability to repay all short-term debts. On the other hand, if this ratio is too high, it is not a good sign because it indicates that the business is not using its assets efficiently.No. - Current ratio < 1: The company is in a negative financial situation, likely unable to pay off short-term debts when due. However, this does not mean that the company will go bankrupt as there are many ways to raise additional funds.

b. Quick Ratio (quick ratio): is the ratio between cash and cash equivalents, receivables, and short-term investments over current liabilities.

4. Commitment to comply with current legal regulations on intellectual property rights. - Case B/C > 1: The project is financially viable. The quick ratio indicates whether the company has enough short-term assets to pay off short-term liabilities without having to sell inventory. This ratio reflects more accurately than the current ratio.

- Quick ratio < 1: The enterprise will have difficulty repaying short-term debts and must be carefully considered.

- Quick ratio > 1: The enterprise has the ability to repay short-term debts without having to sell inventory./.of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Home Affairsvarious sources.development raising additional capital.

b. Quick Ratio: This is the ratio between cash and cash equivalents, accounts receivable, and short-term investments over short-term liabilities.

4. Commitment to comply with current legal regulations on intellectual property rights. - Case B/C > 1: The project is financially viable. The quick ratio indicates whether the company has sufficient short-term assets to pay off short-term liabilities without having to sell inventory. This ratio provides a more accurate reflection than the current ratio.on ||| the current payment ratio.

- Quick Ratio < 1: The enterprise will have difficulty in repaying short-term liabilities and should be carefully examined.

- Quick Ratio > 1: The enterprise can repay short-term liabilities without needing to sell inventory. /\.