Completing the work of preparing and analyzing the Balance Sheet at Hai Long Shipbuilding and Repairing Company Limited

3.3.2. Some solutions to improve the work of preparing and analyzing financial statements at Hai Long Shipbuilding and Repairing Company Limited.

During the internship, I learned about the actual accounting work at Hai Long Shipbuilding and Repairing Company Limited. From the perspective of a student, I boldly put forward some suggestions to improve the accounting work at the company in general and the work of preparing and analyzing the Balance Sheet in particular. Specifically as follows:

3.3.2.1. Opinion 1: Complete the work of preparing the Balance Sheet

The Company needs to promptly grasp the revised guidance circulars issued by the Ministry of Finance such as Circular 244/2009/TT-BTC issued on December 31, 2009 in the work of preparing the Balance Sheet: Amending and supplementing a number of indicators on the Balance Sheet. The following is the Financial Statements as of December 31, 2012 prepared according to the guidance of Circular 244/2009/TT-BTC (Table 3.1).

Table 3.1: Balance sheet as of December 31, 2012 amended according to Circular 244/2009/TT-BTC

HAI LONG SHIPBUILDING AND REPAIR COMPANY

Form No. B01-DN
No. 108 Phan Dinh Phung, Hong Bang, Hai Phong	(Issued under Decision No. 15/2006/QD-BTC
	March 20, 2006 of the Minister of Finance)

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BALANCE SHEET

As of December 31, 2012

Unit: VND

ASSET

MS	TM	Beginning of year number	Year-end number
A. SHORT-TERM ASSETS (100=110+120+130+140+150)	100		208.739.975.505	103,722,664,693
I. Cash and cash equivalents (110= 111+112)	110		60,713,697,691	31,748,149,670
1. Money	111	V.01	60,713,697,691	31,748,149,670
2. Cash equivalents	112
II. Short-term financial investments (120=121+129)	120	V.02	3,229,121,680	3,229,121,680
1. Short-term investment	121		3,229,121,680	3,229,121,680
2. Provision for short-term investment depreciation	129
III. Short-term receivables (130=131+132+133+134+135+139)	130		96.005.777.814	44,138,679,296
1.Customer receivables	131		64,478,806,317	24,751,319,159
2.Pay in advance to the seller	132		30,196,774,358	17,891,162,993
3. Short-term internal receivables	133		747,000,000	913,000,005
4.Receivable according to construction contract progress plan	134
5. Other receivables	135	V.03	583.197.139	583.197.139
6. Provision for short-term doubtful receivables	139

IV.Inventory (140=141+149)

140		47,082,557,650	21,877,329,380
1.Inventory	141	V.04	47,082,557,650	21,877,329,380
2. Provision for inventory price reduction	149
V. Other short-term assets (150=151+152+154+158)	150		1,708,820,670	2,729,384,667
1. Short-term prepaid expenses	151		1,541,736,107	1,833,771,980
2. Deductible VAT	152	V.05
3. Taxes and receivables	154
5. Other short-term assets	158		167,084,563	895.612.687
B. LONG-TERM ASSETS (200=210+220+240+250+260)	200		291,797,360,756	238,746,890,438
I. Long-term receivables (210=211+212+213+218+219)	210
1. Long-term receivables from customers	211
2. Business capital in affiliated units	212
3. Internal long-term receivables	213	V.06
4. Other long-term receivables	218	V.07
5. Provision for long-term doubtful receivables	219
II. Fixed assets (220=221+224+227+230)	220		291.605.790.256	238.135.873.828
1.Tangible fixed assets (221=222+223)	221	V.08	57.352.163.031	59,582,723,718
-Original price	222		130,587,235,296	127.276.618.416
-Accumulated depreciation	223		(73,235,072,265)	(67,693,894,698)
2.Fixed assets under financial lease (224=225+226)	224	V.09
-Original price	225
-Accumulated depreciation	226
3. Intangible fixed assets (227=228+229)	227	V.10
-Original price	228
-Accumulated depreciation	229
4. Cost of unfinished basic construction	230	V.11	234.253.627.225	178.553.150.110
III. Investment real estate (240=241+242)	240	V.12
-Original price	241
-Accumulated depreciation	242
IV. Long-term financial investments (250=251+252+258+259)	250		0	0
1.Investment in subsidiaries	251
2. Investment in associates and joint ventures	252
3. Other long-term investments	258	V.13
4. Provision for long-term financial investment depreciation	259
V. Other long-term assets	260		191,570,500	611.016.610
1. Long-term prepaid expenses	261	V.14
2. Deferred income tax assets	262	V.21
3. Other long-term assets	268		191,570,500	611.016.610
TOTAL ASSETS	270		500,537,336,261	342.469.555.131
CAPITAL SOURCE
A. LIABILITIES PAYABLE (300=310+330)	300		192.510.217.414	93,517,771,948
I. Short-term debt (310=311+312+…+319+320+323)	310		192.510.217.414	93,517,771,948
1. Short-term loans and debts	311	V.15
2.Payable to seller	312		68,652,858,693	4,891,468,550
3. Buyer pays in advance	313		84.948.097.938	36,142,338,756
4. Taxes and payments to the State	314	V.16	16,520,670	(440,046,042)
5. Must pay employees	315		5,235,400,000
6. Costs payable	316	V.17	1,902,226,994	1,278,651,838
7. Internal payables	317		7,409,070,278	34,141,453,644

8. Must be paid according to the construction contract schedule

318
9. Other short-term payables and receivables	319	V.18	19,923,221,286	12,432,938,626
10. Short-term payables provision	320
11. Bonus and welfare fund	323		4,422,821,555	3,188,486,661
II. Long-term debt (330=331+332+….+336+337)	330
1. Long-term payable to seller	331	V.19
2. Internal long-term payables	332
3.Other long-term payables	333	V.20
4. Long-term loans and debt	334	V.21
5. Deferred income tax payable	335
6. Unemployment compensation provision	336
7. Long-term payables provision	337
8. Unrealized revenue	338
9. Science and technology development fund	339
B.OWNER'S EQUITY (400=410+430)	400		308.027.118.847	248.951.783.182
I. Owner's equity (410=411+412+…+420+421)	410	V.22	308.027.118.847	248.951.783.182
1.Owner's investment capital	411		68.046.014.212	65,526,088,213
2. Share capital surplus	412
3. Other owners' capital	413
4. Treasury stock	414
5. Asset revaluation difference	415
6. Exchange rate difference	416
7. Development investment fund	417		200,000,000
8. Financial reserve fund	418		3,559,966,383	3,117,110,268
9.Other funds belonging to equity	419
10. Undistributed profit after tax	420
11. Investment capital for construction and development	421		236.221.138.252	180.308.584.701
12. Business arrangement support fund	422
II. Other funding sources and funds (430= 432+433)	430		0	0
1. Funding sources	432	V.23
2. Source of funds for forming fixed assets	433
TOTAL CAPITAL (440=330+400)	440		500,537,336,261	342.469.555.131

OFF-BALANCE SHEET INDICATORS

Target

Explanation	Year End Number	Beginning of Year Number
1. Outsourced assets	V.24
2. Materials and goods received for safekeeping and processing
3. Goods accepted for sale or consignment
4. Bad debt has been handled
5. Foreign currencies
6. Operating expense estimate		1,953,068,257	1,492,801,571

	Established on March 22, 2013
The chartist	Chief Accountant	Chairman and CEO
(Sign, full name)	(Sign, full name)	(Sign, print full name, Seal)

3.3.2.2. Opinion 2: Complete the analysis of the Balance Sheet

In my opinion, the company needs to really pay attention and conduct a detailed and complete analysis of financial statements, first of all the Balance Sheet. To fully analyze the Balance Sheet, the company can follow the following analysis process:

Step 1: Plan the analysis

- Specify the analysis content, the indicators to be analyzed, and the time period in which the indicator starts and ends.

- Specify the start and end times of the analysis process.

- Determine the necessary costs as well as the person performing the analysis. Step 2: Perform the analysis:

- Collect data and documents for the stated targets, including: Planning data sources, accounting documents, statistical documents, and internal documents.

- Edit, process data to calculate indicators and conduct analysis Step 3: Prepare report, analyze and organize analysis conference

- Evaluate basic advantages and disadvantages.

- Point out the causes and basic factors that influenced that result.

- Propose measures to overcome existing shortcomings, promote advantages and exploit potential capabilities within the company.

Hai Long Shipbuilding and Repairing Company Limited can analyze the 2012 Balance Sheet as follows:

a. Analyze the structure and fluctuations of assets and capital sources.

Analyzing the structure and fluctuations of assets and capital sources is to evaluate whether the allocation and changes of assets and capital sources of the company are reasonable or not. From there, the company can take appropriate adjustment measures, helping the company's management work to become more and more effective.

To analyze the structure and fluctuations of assets, we create a table analyzing the structure and fluctuations of assets (Table 3.2).

Analysis of Asset structure and volatility:

Hai Phong Private University Graduation Thesis

Table 3.2:

Asset structure and fluctuation analysis table

at Hai Long Shipbuilding and Repairing Company Limited in 2012/2011

Target

Beginning of the year		End of the year		End of year vs beginning of year (+-)
Amount	Percentage	Amount	Percentage	Amount	Percentage
A. SHORT-TERM ASSETS	103,722,664,693	30.29	208.739.975.505	41.7	+105.017.310.812	+66.44
I. Cash and cash equivalents	31,748,149,670	9.27	60,713,697,691	12.13	+28.965.548.021	+18.32
II. Short-term financial investments	3,229,121,680	0.94	3,229,121,680	0.65	0	0
III. Short-term receivables	44,138,679,296	12.89	96.005.777.814	19.18	+51.867.098.518	+32.81
1.Customer receivables	24,751,319,159	7.23	64,478,806,317	12.88	+39.727.487.158	+25.13
2.Pay in advance to the seller	17,891,162,993	5.22	30,196,774,358	6.03	+12.305.611.365	+7.79
3. Short-term internal receivables	913,000,005	0.27	747,000,000	0.15	-166,000,005	-0.11
5. Other receivables	583.197.139	0.17	583.197.139	0.12	0	0
IV. Inventory	21,877,329,380	6.39	47,082,557,650	9.4	+25.205.228.270	+15.95
V. Other current assets	2,729,384,667	0.8	1,708,820,670	0.34	-1,020,563,997	-0.65
B. LONG-TERM ASSETS	238,746,890,438	69.71	291,797,360,756	58.3	+53.050.470.318	+33.56
II. Fixed assets	238.135.873.828	69.53	291.605.790.256	58.26	+53.469.916.428	+33.82
1.Tangible fixed assets	59,582,723,718	17.4	57.352.163.031	11.46	-2,230,560,687	-1.41
4. Cost of unfinished basic construction	178.553.150.110	52.14	234.253.627.225	46.8	+55.700.477.115	+35.24
IV. Long-term financial investments	611.016.610	0.18	191,570,500	0.04	-419,446,110	-0.27
3. Other long-term investments	611.016.610	0.18	191,570,500	0.04	-419,446,110	-0.27
TOTAL ASSETS	342.469.555.131	100.00	500,537,336,261	100.00	+158.067.781.130	+31.58

Student: Pham Thi Thuy Trang – QTL501K 84

Through analysis table 3.2, we see: Compared to 2011, the total assets of the company in 2012 increased to 158,067,781,130 VND, corresponding to an increase of 31.58%. Thus, it can be seen that the scale of the company's business capital has been expanded and the ability to mobilize capital is better. The proportion of the company's short-term assets at the end of 2012 accounted for 41.7%, while long-term assets accounted for 58.3%, an increase compared to the beginning of the year. This is consistent with the company's business characteristics, which are operating in the field of shipbuilding.

At the end of the year, the value of the company's short-term assets was: VND 208,739,975,505, accounting for 41.7% of total assets, an increase of VND 105,017,310,812 compared to the beginning of the year, corresponding to an increase of 66.4%. This is the main reason for the increase in total assets in 2012.

In short-term assets, the item "Short-term receivables" accounts for the highest proportion of 19.18%, an increase of 51,867,098,518 VND compared to 2011, equivalent to an increase of 32.81%. This category increased due to a sharp increase in "Customer receivables", showing that the company needs to step up debt collection to ensure sufficient capital for production and increase the progress of the remaining contracts.

The item "Inventory" in 2012 increased by 25,205,228,270 VND from 21,877,329,380 VND to 47,082,557,650 VND, corresponding to an increase of 15.95%. The inventory ratio increased and total revenue increased by 156,308,505,563 VND (Business results report). This data shows that the company received more orders, because it is a shipbuilding company, so to produce new ships or repair a ship, the production time is extended from year to year, leading to an increase in unfinished production and business costs. There are raw materials that the company will immediately export to the workshop for production when it purchases them, but there are raw materials, tools and equipment that are purchased and stored for gradual use, so when receiving many orders and processing products, more raw materials and tools such as bolts, screws, etc. will be imported. To avoid capital stagnation in the reserve stage, the company needs to find ways to speed up production progress and control reserve levels, thus increasing the company's business efficiency even more.

Regarding long-term assets, compared to 2011, it increased by VND 53,050,470,318, equivalent to an increase of 33.56% compared to the beginning of the year. The reason is that total fixed assets increased by 33.82% from VND 238,135,873,828 to VND 291,605,790,256, accounting for 58.26% of total assets. "Long-term financial investments" accounted for a low proportion of 0.04% compared to total assets, decreasing by VND 419,446,110, equivalent to a rate of 0.27%. This shows that in the past year, the company has paid attention to increasing facilities to increase the capacity to serve the company's production and business.

Analyze the structure and fluctuations of the company's capital: we create a table to analyze the structure and fluctuations of capital (table 3.3).

Hai Phong Private University Graduation Thesis

Table 3.3: Analysis table of capital structure and fluctuations

at Hai Long Shipbuilding and Repairing Company Limited in 2012/2011

Target

Beginning of the year		End of the year		End of year vs beginning of year
Amount	Proportion %	Amount	Proportion %	Amount	Percentage
A. LIABILITIES	90.329.285.287	26.38	188.087.395.859	37.58	+97.758.110.572	+61.85
I. Short-term debt	90.329.285.287	26.38	188.087.395.859	37.58	+97.758.110.572	+61.85
2. Payable to seller	4,891,468,550	1.43	68,652,858,693	13.72	+63.761.390.143	+40.34
3. Buyer pays in advance	36,142,338,756	10.55	84.948.097.938	16.97	+48.805.759.182	+30.88
4. Taxes and other payables to the State	(440,046,042)	(0.13)	16,520,670	0.003	+456.566.712	+0.29
5. Must pay employees	0	0	5,235,400,000	1.05	+5,235,400,000	+3.31
6. Costs payable	1,278,651,838	0.37	1,902,226,994	3.38	+623.575.156	+0.39
7. Internal payables	34,141,453,644	9.97	7,409,070,278	1.48	-26,732,383,366	-16.91
9. Other short-term payables	12,432,938,626	3.63	19,923,221,286	3.98	+7.490.282.660	+4.74
II. Long-term debt	-		-		-
B. OWNER'S EQUITY	252.140.269.844	73.62	312.449.940.402	62.42	+60.309.670.558	+38.15
I. Equity	248.951.783.182	72.69	308.027.118.847	61.54	+59.075.335.665	+37.37
1.Owner's investment capital	65,526,088,213	19.13	68.046.014.212	13.59	+2,519,925,999	+1.59
7. Development investment fund	0	0	200,000,000	0.04	+200,000,000	+0.13
8. Financial reserve fund	3,117,110,268	0.91	3,559,966,383	0.711	+442.856.115	+0.28
11. Capital sources for basic construction investment	180.308.584.701	52.65	236.221.138.252	47.19	+55.912.553.551	+35.37
II. Other funding sources and funds	3,188,486,661	0.93	4,422,821,555	0.88	+1,234,334,894	+0.78
1.Welfare reward fund	3,188,486,661	0.93	4,422,821,555	0.88	+1,234,334,894	+0.78
TOTAL CAPITAL	342.469.555.131	100.00	500,537,336,261	100.00	158.067.781.130	+31.58

Student: Pham Thi Thuy Trang – QTL501K 87

Completing the work of preparing and analyzing the Balance Sheet at Hai Long Shipbuilding and Repairing Company Limited - 12

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