Capital Preservation of Vietnam Debt Purchase One Member Limited Liability Company: Regulations and Guidelines

Capital Preservation of Vietnam Debt Trading One-Member Limited Liability Company is stipulated in Article 7 of the Regulation issued together with Circular 62/2021/TT-BTC. To be specific:

- The Company is responsible for preserving and developing the state capital invested in the Company as regulated.

- The capital preservation of the Company is carried out through the following measures:

+ Implementing the management, use of capital, assets, profit distribution, financial management policies, and accounting policies according to the provisions of the law;

+ Purchasing asset insurance as mandated by the law;

+ Promptly handling the value of damaged assets, unrecoverable debts, and setting up risk provisions as stipulated in this Regulation and relevant legal provisions;

+ Other measures for capital preservation of the Company as dictated by the law.

- Annually, DATC must evaluate the level of capital preservation of the Company as follows:

+ After setting up provisions as regulated in Article 8 of this Regulation, if the business results of the enterprise do not generate losses or generate profits, the enterprise preserves capital. The profit or loss used as a basis for evaluating the level of capital preservation is the difference between total revenue and other income minus (-) total reductions in revenue minus (-) total incurred expenses;

+ In case after setting up provisions as prescribed in Article 8 of this Regulation, the business results of the enterprise incur a loss (including accumulated losses), the Company does not preserve its capital.

Sincerely.