What are regulations on the right to take the initiative and responsibility for handling inventory goods of the parent company of MobiFone Telecommunications Corporation of Vietnam?

What are regulations on the right to take the initiative and responsibility for handling inventory goods of the parent company of MobiFone Telecommunications Corporation of Vietnam?

Pursuant to Article 19 of the Regulation on financial management of the parent company of MobiFone Telecommunications Corporation promulgated together with Decision 618/QD-UBQLV in 2022 stipulating regulations on handling inventory goods as follows:

Inventory management

1. MobiFone's inventories are assets purchased for production - or for sale in the normal production and business period, including: Purchased goods on the way; Raw materials, materials; tools; Unfinished products; Finished products and goods; consignment for sale; Goods are stored at the tax-suspension warehouse of the enterprise.

2. MobiFone has the right to take the initiative and be responsible for immediately handling the goods in stock that are poor of quality, out of date, technically backward, stagnant or slow in circulation to recover capital in accordance with the law. Competence to decide on handling is prescribed in Clause 2, Article 17 of this Regulation.

3. For inventory goods subject to provisioning, the setting up and use of provision for devaluation of inventories shall comply with the Finance Ministry's guidance on setting up provisions.

4. MobiFone must develop regulations and regulations on inventory management, which must clearly define the coordination of each management department in MobiFone and the responsibilities of each department and individual involved in monitoring and management of MobiFone's assets mentioned above.

5. The order and procedures for liquidation and sale of inventories shall comply with the provisions of Clause 5, Article 17 of this Regulation.

Therefore, the parent company of MobiFone Telecommunications Corporation (MobiFone) has the right to take the initiative and be responsible for immediately handling the goods in inventory that are poor of quality, out of date, technically backward, stagnant, and slow in circulation to recover capital as prescribed by law.

Competence to decide on handling is prescribed in Clause 2, Article 17 of this Regulation.

What are responsibilities and powers of the parent company of MobiFone Telecommunications Corporation of Vietnam regarding the management of receivables?

Pursuant to Article 20 of the Regulation on financial management of the parent company of MobiFone Telecommunications Corporation promulgated together with Decision 618/QD-UBQLV in 2022 stipulating responsibilities and powers of the parent company of MobiFone Telecommunications Corporation of Vietnam regarding the management of receivables as follows:

* Responsibilities of MobiFone:

- Promulgating and implementing MobiFone's debt management regulations, clearly assigning and defining responsibilities of collectives and individuals in monitoring, recovering and paying receivable debts.

- Establlishing a book to monitor debts according to each debt object; regularly classifing debts (undue debts, due debts, overdue debts, bad debts, irrecoverable debts), urge debt recovery. When determining bad debts, MobiFone must make provision for bad debts according to regulations of the Ministry of Finance.

- The Board of Members, the Chairman of the Members' Council, the General Director of MobiFone are responsible for promptly handling bad debts and unrecoverable debts in accordance with the law.

- Regarding unrecoverable debts, MobiFone must clearly identify objective or subjective reasons. For subjective causes, MobiFone is responsible for handling the compensation of relevant individuals and collectives.

For objective causes, the Members' Council, Executive Board and relevant departments must clearly identify the cause and have a written certification; if it is determined that these debts are related to production and business activities, the enterprise shall be compensated by the provision for bad debts; if there is a shortage, it shall be recorded in business expenses of the enterprise.

- Debts that cannot be recovered after being handled as above, MobiFone still has to monitor and organize the collection. The recovered amount, after deducting related expenses, is recorded into other income of MobiFone.

- MobiFone regularly organizes debt clearing between units within MobiFone when implementing business cooperation plans in accordance with the law.

- Foreign currency exchange differences receivable arising in the period, exchange rate differences on re-evaluating the balance of foreign currency debts receivable at the end of the fiscal year shall be handled in accordance with current law.

* Powers of MobiFone:

MobiFone is entitled to sell overdue receivables, bad debts, and uncollectible debts to recover capital in accordance with Decree 206/2013/ND-CP dated December 9, 2013 of the Government on debt management of enterprises in which 100% charter capital is held by the State, Decree amending, supplementing or replacing (if any), MobiFone's Regulation on debt management and relevant laws.

What are regulations on operating assets leased for the parent company of MobiFone Telecommunications Corporation in Vietnam?

Pursuant to Article 15 of the Regulation on financial management of the parent company of MobiFone Telecommunications Corporation promulgated together with Decision 618/QD-UBQLV in 2022 stipulating regulations on operating assets leased for the parent company of MobiFone Telecommunications Corporation in Vietnam as follows:

Lease operating property

1. MobiFone is entitled to lease assets (including financial leasing) to serve production and business activities in accordance with MobiFone's needs and to ensure effective business.

2. The lease and use of the leased property must comply with the provisions of the Civil Code and other relevant laws.

3. The Members' Council decentralizes MobiFone's General Director to decide and sign asset lease contracts in accordance with MobiFone's internal decentralization regulations, in accordance with MobiFone's charter of organization and operation and relevant regulations.

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